Staff on Demand — The Future of Exponential Organisations
“Staff on Demand” is one of the major pillars of any exponential organisation, as highlighted in the book. This mechanism helps organisations to have minimum core HR and have the flexibility to add more staff as needed. This gives them the flexibility to generate more ideas, work on them without much hassle of building permanent employers base.
The traditional organisation adopted the hierarchical design which worked while technology was is its infancy. With innovation explosion and resulting costs reduction, that design has become a hindrance and is being challenged. Extensive hiring, by default, required creating an organisation that headed towards bureaucracy and politics. This lead to stifling of ideas down the ranks and defocused organisations to its core purpose.
Many small startups emerged utilising the concepts of ExO and staff on demand and created companies reaching billion of people in no time. Their valuation topped or reached the level of companies been in business for decades. Staying lean and nimble helped them in adjusting to the realities of business and pivoting as soon as possible.
These organisations utilised resources across the globe wherever they could find talent. This led to an access to a workforce of millions within a very short period of time.
In the book, Salim also highlights the McKinsey Global Institute Research by Michael Chui, where he talks about the emerging importance or Staff on Demand concept and tears apart the traditional concepts of hiring and hierarchies.
Talent, Dedicated Resources, Disaster Handling, Overheads Reductions, Liabilities Avoidance are just a few of the pros that staff on demand can provide.
Staffing on short-term notice for scaling organisations also is a major obstacle. With Staff on Demand, any scaling organisation can add multiple developers, designers, BI analysts in a matter of days.
Finding the right candidate and partners is the biggest dilemma. Also aligning the share interest and vision of your start-up with the remote team could become an obstacle.
Finding the right communication and project management tools is easy, as the costs of all such services have reduced to nothing. With Skype, Slack, Google Hangout, Dropbox you can pretty much accomplish all you want. To explore all the options, please follow the link,
Not all activities are equal in terms of value added to the core purpose of the organization. Insourcing all of it just leads to money wastage, expensive hiring, and later on liabilities for permanent employees.
Consider the case of San-Francisco based Therapeutics company contacting us for the production of the game that highlights the functionality of their new device.
By outsourcing the gamification of the process to us, resulted in 10 times cost reduction and were able also able to deliver the project on time (Within 21 days) with appreciation from the event attendees.
The other route available would have been to hire the new game designer, developer, and work on that. The total timeline of doing so would have resulted in missing event participation with meaning.
Summing up, ExO organization design is the future and will become a part of major corporate strategies too. Startups are open to such mechanisms and are already benefitting the most from this approach. Interestingly, mainstream media is also openly talking about it and showing the version of it in hit HBO comedy, Silicon Valley.