Sunday reading for April 27, 2014:
Zachary Karabell, Head of Global Strategy at Envestnet, recently wrote a piece on Linkedin challenging us to think about innovations in business as opportunities to expand the economic pie as opposed to zero sum gain situations in which incumbents that can’t evolve fast enough die and the remaining players fight for their share of it.
Karabell cites instances where companies like Airbnb (a peer to peer house rental company) and Uber (a transportation network of car renters and car rentees/drivers) are having the legality of their business models challenged in the court system by regulators and competitors as examples of the establishment fighting change as opposed to flowing with it. He then goes on to point out that using the courts to fight innovation seldom works – as a cautionary tale reminding us that the music industry failed to protect their business model in the 90s by using the legal system to fight disruptors like Napster instead of changing their business model or partnering with them.
…This piece especially resonated with me because soon after reading it, I spoke to a friend that told me about a new referral system her company was thinking about implementing; anyone – be they an employee or not – could refer candidates for hard-to-fill jobs posted on a company website and receive a payout if one of their candidates was hired. If the system gained broad utilization, she hoped it could dramatically decrease fill-times and mitigate the need for technical sourcers and recruiters. The HR function – like other professions – is constantly changing; and like established companies, we have to continue to change with the world or else find ourselves displaced by something more efficient. And so we can’t rest on our laurels, and we have to keep moving forward.
…As you can see from the giant walls of text above, I really enjoyed this one. I highly recommend checking it out here.
As always, please share your thoughts in the comments below.