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Sourcing & Staffing

Conclusion: This month, there has been increased discussion regarding security services; in particular, the growth of the Australian security service provider industry and benefits associated with procuring locally. Now that customers recognise security as a basic function, a strong local security services sector has evolved. Local vendor expertise within the Australian market, regulations, customer demands and the security environment as it pertains to Australian businesses is invaluable when establishing mechanisms to avoid and respond to security incidents. Security is a necessity, but vendors must be prepared, and more importantly understand the local market, as well as businesses, to ensure customers can avoid, continually educate staff about and respond to security incidents effectively.

Conclusion: The apocryphal ‘three envelopes’ story about the executive starting a new role is a cynical view of leadership transition. However, at its core, there are some uncomfortable truths about how people respond to crises early in their leadership. Digging deeper, there are lessons to be learned from these scenarios, suggesting more productive ways to deal with these issues as they arise.

It is critical for transitioning digital leaders to understand that people, culture and politics are the most powerful forces in an organisation. An ability to manage change and form collaborative relationships is a much stronger predictor of success in a digital transformation role than any digital or technical experience.

Conclusion: This month, attention has been drawn to vendors and managed service providers requiring customer transformation or migration to new frameworks and associated customer reluctance to do so. For instance, platform enhancements may necessitate migration to new systems or upgrades because of an inability to support ageing systems. Old platforms may simply not be compatible with newer resources, technologies or procurement models. However, these types of enhancements can be disruptive or costly for customers if they are not prepared for changes. Further difficulties can arise with existence of intertwined, hybrid systems within enterprises or systems which perform critical functions if changes interfere with business operations. Simply removing the capacity to access ageing systems and associated support is not sufficient. Businesses must prepare in advance when investing in products and services, in conjunction with vendors. The development of strategies and sharing responsibility for forward planning, education and engagement, as well as support for shifts, are necessary. The provision of other resources or advice from vendors, or obtaining services from third-party specialists dedicated to transformation strategy development and implementations, can also be beneficial. Whilst vendors must evolve, customers must also be prepared to make these changes and understand what kind of impact it can have on their operations.

Conclusion: This month, the high activity in mergers and acquisitions has continued. However, there has been additional discussion on the impact of these acquisitions on the industry in general, as well as the high volume, and whether this type of activity could have a negative effect on the Australian market – in particular, if the current regulatory frameworks governing mergers and acquisitions are sufficient to protect competition and avert potential misuse of market power. It is critical that regulators are aware of industry trends and how new practices may affect the market, as well as be open to feedback from vendors that have direct experience with circumstances regulators may not be familiar with.

Conclusion: Relationships at work between managers and employees are important and can influence the success and effectiveness of individual teams or whole organisations. Both managers and employees need to understand the bias that can occur between a view a manager may take about an employee they have invested in and ‘hired’ or selected, versus an employee that is thrust upon them or that they inherit from another manager; for example, employees that join an organisation as the result of an acquisition.

When managers are ‘invested’ in the selection of employees, a relationship exists that reflects on the managers’ judgement and decision-making skills, having believed that they have made good hiring decisions. No such relationship exists when the managers have no involvement in the selection of the employees but are assigned to managing the employees.

The more that managers understand this, the better they can focus on avoiding viewing employees differently. The more that employees understand this, the better they can recognise potential issues, and work to improve their career prospects by ensuring they work for a manager that has ‘chosen’ them, or at least learnt to understand their abilities and contributions.

Conclusion: The IT skills shortage is likely to worsen. In addition to technical skills, technology leaders and workers overwhelmingly recognise the value of creativity in the workplace, yet they lament their inability to effectively cultivate creativity. Creativity can unlock innovation in the enterprise, generate high levels of employee satisfaction, and make a significant contribution to corporate profit margins as well as national economies.

Creativity can be taught and strengthened, in individuals and in teams. Studies in neuroplasticity are demystifying the biology behind training the brain, demonstrating that even ‘set in their ways’ workers can improve their creativity – and productivity – using relatively simple techniques. Neuroscience is showing that we can still teach an old dog new tricks.

Conclusion: This month, a number of failures due to external vendor systems performing essential functions have been prominent. Disruption caused by these types of outsourced solution failures become disproportionate when they facilitate critical tasks conducted by consumers. Similarly, reactions can be disproportionate when tasks are deeply intertwined with others, such as government agencies requiring submissions of consumer information or reports to set schedules. These types of failures highlight the fragility of systems and the need for sturdy response measures in case of disruption – responses which must extend beyond technical and local issues, but also cater to practical matters. For instance, an acknowledgement from certain government agencies that consumers depend on vendors to fulfil regulatory requirements, and allowances from agencies when failures interfere with customers meeting their responsibilities to these agencies. Vendors require different layers of protection and responses. This includes dealing with externals and their associated issues that can increase difficulties of failures if not identified and factored into vendor response measures.

Conclusion: Successful businesses need their people to be productive and to perform well. Effective communication may assist i.e.suring they do. Effective communication is about thought leadership, defining a purpose, informing tasking and priorities and, most importantly, listening. Opportunities that impact productivity and the fiscal performance of organisations are often lost or not fully prosecuted due to poor communication. Poor communication will result in less than optimal planning or reduced time to react, causing the need to compromise. This, in turn, results in poor prioritisation, and i.e.erything is urgent, nothing gets the appropriate focus.

To communicate effectively at the personal, work unit and organisational levels requires a level of discipline in adherence to the basic principles of effective communication, which will lay the foundation for success.

Effective communication will improve productivity, reduce risk, reduce costs and reduce time to market. Effective communication will deliver line of sight for your strategic outcomes and in doing so will be a combat multiplier for your business.

Conclusion: This month, the number of tenders and plans has continued to grow, highlighting the important role projects play when it becomes necessary to replace legacy systems, capitalise on new or evolving solutions or simply adapt to changed business operations or environments. Customers understand that avoiding complacency and market disconnect is critical, yet this still exists, with project plans to replace technologies such as paper-based messaging or tape data storage being announced just this month. It is critical for vendors to provide advice and ongoing support for customers in order to strengthen and simplify migrations and transformation, and more importantly, identify project objectives and final goals when replacing legacy systems.

Conclusion: With both the NSW and commonwealth parliaments passing respective Modern Slavery Acts in 20181, there are now real implications and consequences for business leaders and their suppliers who ignore the risks of slavery within their supply chains.

Unlike the California Transparency in Supply Chains Act 2010 which applies to tangible goods offered for sale, Australian firms will need to disclose their efforts to eradicate slavery and human trafficking from their supply chain of both goods and services. This means at least 2,100 public and private firms2 have until 1 July 2019 to ask explicitly of suppliers, whether local or foreign, off-premise Cloud or on-premise device manufacturer: What are you and your organisation doing with respect to modern slavery risks?

For many organisations in Australia this will mean more than just adding new evaluation criteria to be applied to current and potential suppliers. Rather it requires providing an accurate attestation on the issue of modern slavery which will require lifting the hood on all manner of “as-a-Service” offerings. Thereby exposing aspects of service delivery that the majority of firms previously thought they no longer needed to concern themselves with, having “transferred” risks, such as those found in supply chains, to their vendor partners.

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