To reimagine or reconceive business models that have been very successful over an extended period can meet with resistance, in particular if it requires direct investment and the introduction of additional risk. When extended timeframes are involved, potentially up to 10 years, before any noticeable difference can be observed, the ROI question can be very difficult to answer, if indeed it is possible to answer at all. Given the typical tenure of CEOs in today’s business world, along with CEO remuneration and reward approaches, it may be seen as great in theory, being more likely to detract from CEOs achieving their short to medium term growth objectives.
Imagine what would be going through the mind of a CEO with this type of discussion? Perhaps:
“If I don’t achieve growth objectives agreed with the Board, my position will be under pressure. We can’t be spending money on a theory that sounds great and distracting the business from the task at hand”
“I am close to achieving this year’s numbers and you want me to invest money in something that is not going to help towards achieving this year’s budget?”
What if the message was different? Rather than asking for the CEO’s blessing to reimagine a very successful business model, that requires direct investment, across an extended period of time whereby the ROI is very difficult to measure, you were able to provide a Shared Value Proof of Concept that reduces today’s operational costs, requiring no direct investment, without the burden of having to demonstrate ROI?
The greatest expense for most organisations is people. Costs include wages, training expenses and recruitment costs. Having high staff turnover further compounds the people costs for an organisation, often having the effect of reducing productivity and business leakage. Having the cost of people as a major expense makes this area an ideal choice for reconception.
In viewing talent acquisition through a different lens, it opens up a whole world of new opportunities and possibilities for cost reduction, business growth and competitive advantage. Through using an altruistic lens, it brings us to the world of Social Procurement, whereby organisations incorporate Social Enterprises into their supply chain. Social Enterprise suppliers provide products and services in the same way as any other supplier, with a principal difference being that they have social purpose. i.e. They donate large amounts of the revenue they generate to a social cause.
innovate360 is a Social Enterprise recruitment services supplier with the purpose of working with business to support the community. The innovate360 Social Enterprise recruitment business model adds value, extending from recruitment, talent attraction, staff retention, public relations, marketing and business growth. As a Social Enterprise recruitment firm, innovate360 charges on average 30% to 50% lower than most recruitment firms, significantly reducing the cost of recruitment, resulting in day to day operational budget savings.
innovate360 donates 20% of all recruitment fees charged to a charity of our client’s choosing, with the donation being attributed to the fund-raising activities of the client for electing to work with innovate360. A key component of the innovate360 Social Enterprise recruitment model is to bridge the gap between the NFP community and business, enabling both parties to work together towards mutually shared goals. This provides the NFP with much needed financial resources and it provides business with a means of having community generated positive PR messages. By addressing social issues of importance to customers and the marketplace, business and community NFP leaders can collaborate in a way that is of benefit to all.
The upshot of incorporating Social Procurement into the process of talent acquisition is that business is seen to be giving back to the community. This helps to engender a sense of real human purpose across the organisation, extending out into the marketplace and beyond. The downstream effect of this includes being seen by staff as a great place to work, by external talent as an employer of choice, by consumers as a supplier of choice and by the marketplace and community as a good corporate citizen. Linking business support of the community via the innovate360 Social Enterprise recruitment model, to social issues of importance to the marketplace, achieves positive synergies that can lead to business growth and competitive advantage.
Reimagination of the supply chain in the area of talent acquisition provides an ideal pathway to prove the Shared Value approach, in a very low risk way that reduces current operational costs, that requires no direct investment in a way that brings a very real sense of human purpose to the workplace. Not only does it deliver tangible savings, it generates positive PR messages, creates positive brand awareness and it can help your organisation on its journey to become an employer of choice, reducing staff turnover and making your business attractive to the best and brightest talent in the marketplace. A true win – win for all!
When introducing the concept of Shared Value, which of these messages would you rather take to your CEO or Board? Which message do you think is more likely to get Executive buy in and traction?
To explore this further, please contact innovate360 today.