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#34 JooBee's newsletter
TL;DR
š Founders, you're not serious about scaling if this is not a top 3 priority
š OD: The must-have skill for start-up HR leaders 2025
ā Your views on 2025 priorities for āachieving more with lessā (by guest author: Dr. Dieter Veldsman, Chief Scientist @AIHR)
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You can now āLISTENā to the newsletterIāve used GoogleNotebookLM to turn my newsletter into audioāfor those of you who love listening on the go. Presented by two AI podcasters (yes, really!), itās still in betaāso let me know what you think! |
Question: We canāt hire more people, yet we have ambitious goals to drive revenue growth in 2025. How can we achieve more with less?
Founders, you're not serious about scaling if this is not a top 3 priority
Over the past 12 months, Iāve been asked this singular, recurring question: āHow can we achieve more with less?ā It comes up in conversations with founders, VCs, HR leaders and functional executives in start-ups.
As you plan for 2025, Iām flipping the question back to you:
āAre any of the following, part of your top 3 COMPANY-LEVEL* priorities for 2025?ā
Reducing complexity
Maximising existing talent
Prioritising ruthlessly
If not, maybe you are not that serious about āachieving more with less.ā
*FYI: A company-level priority means a full commitment of time, effort and resourcesānot something dumped on HR, handed off to your COO or done half-a**ed (yes, I said it). If itās a top 3 priority, these expectations WILL be part of EVERYONEās, including execsā, performance metrics, reviewed rigorously and rewarded (or not)āa true end-to-end commitment to āachieve more with less.ā
The hard truth: Optimisation canāt wait
You can sell more or build more products, but without optimising your operating systemāyour way of workingāyouāre simply piling more weight onto an already strained setup. Itās like pushing a šŖØboulder uphill while adding rocks to your pack. Progress will stall, frustration will arise and your team will burn out.
Scaling smart means building a system (organisation) that supports your ambitions. This isnāt a luxury; itās survival.
As you plan for 2025, is your whole company actively focusing on:
1ļøā£ Reducing complexity?
Efficiency is non-negotiable when scaling. If getting things done feels like wading through molasses, youāre stalling progress.
Simplify workflows: Map out key processes, identify bottlenecks and cut the fluff.
Automate repetitive tasks: Stop throwing people at low-value work. Affordable tools and AI can handle scheduling, reporting and more.
Standardise practices: Bring consistency to processes across teams to reduce waste and confusion. Use shared principles, templates or guidelines to streamline decisions and execution.
With AI, all of the above becomes faster, smarter, and easier to implement.
2ļøā£ Maximising existing talent?
Most start-ups are slowing down in hiring or not hiring at all. This is an opportunity to take a hard look at your current team. You might be overlooking hidden potential.
Review org structure: Ensure your best players are in roles where they can have the greatest impact. Align talent with business priorities.
Develop high-value skills: Invest in cost-effective training to enhance your teamās capability to tackle high-impact work while automating time-consuming, low-value work (letās be honestāno one likes those anyway!). No budget? Check this out:š° How to develop your people - without a training budget.
Break down team silos: Facilitate cross-functional collaboration to eliminate inefficiencies, prevent misalignment and avoid duplicated effort.
3ļøā£ Prioritising ruthlessly?
Not all projects are worth your employeesā time. Focus only on what truly drives resultsābecause busy isnāt the same as productive.
Saying ānoā to low-impact projects: If it doesnāt move the needle, drop it. Simple.
Cut low-value efforts: Every hour spent on ābusyworkā is one less for high-priority tasks.
Measure results, not effort: Shift focus from hours worked to results achievedābecause effort without impact doesnāt matter (and yes, Iāll admit, Iām lazyāIād rather work fewer hours and achieve bigger results).
Achieving more with less, starts now
So, as you look toward 2025, ask yourself and your leadership team:
"Are we serious about achieving more with less?ā
If so, these 3 priorities arenāt optionalātheyāre essential.
The path to scaling smart is clear. Now itās up to you to commit and deliver.
Dr. Dieter Veldsman | To 1ļøā£reduce complexity, 2ļøā£maximise talent and 3ļøā£prioritise ruthlessly, Organisational Development (OD) is the must-have HR skill for 2025. As I began drafting this section, I thought, āWhy hear it from me when you can hear it straight from the OD experts Iāve learned so much from?ā Iām excited to welcome Dr. Dieter Veldsman, Chief Scientist: HR & OD from AIHR | Academy to Innovate HR to share the āhow-to in actionā with you! |
OD: The must-have skill for start-up HR leaders 2025
During the grow-at-all-costs years of start-ups, HR was tasked with āscalingā organisations to meet future needs. However, with funding streams tightening in recent years, the focus has shifted to the path to profitability and achieving more with less. As a result, HR must now pivot from āscaling' to 'optimising' organisations.
This shift makes Organisational Development (OD) a critical skill for HR leaders in start-ups today.
So, what exactly is OD?
If youāre not familiar with OD, thatās because itās often associated with larger corporationsāa specialised skill and approach to managing and reducing complexity. As a result, many HR folks view OD as relevant only for large enterprises. Iād argue the opposite. OD isnāt just relevantāitās essential for unlocking your start-upās potential.
OD views the organisation as a living systemāa dynamic, interconnected network of people, processes and structures working together.
The goal of OD is simple: ensure this living system functions optimally and adapts to change.
OD is built upon a few core beliefs that the organisation is:
An interconnected system: Every part of an organisation is interconnected. For example, a shift in strategy may require changes in processes, skills, or team dynamics.
Constantly evolving: Organisations are never static, they must continuously adapt to stay effective.
Influenced through key levers that need to be in balance for a business to be successful. OD identifies and aligns the key organisational elementsāsuch as people, processes and technologyāto drive success.
Changed through interventions that can occur at the organisational, team, and individual levels. OD interventions can unlock value at various levels of the business, ranging from individual coaching to comprehensive organisational design.
Focused on outcomes. The ultimate goal is to achieve alignment and performance that support strategic outcomes. This means ensuring the organisation can effectively address challenges, seize opportunities, and achieve its goals sustainably.
š If you are keen to find out more about OD, click here for the complete guide.
Why HR leaders in start-ups need OD now
OD is system thinking. It enables HR to look beyond just people and focus on the interconnected network of people, processes and structures, working together.
OD isnāt a luxury reserved for big corporationsāitās a survival skill for start-ups. It helps HR leaders optimise their start-ups to āachieve more with lessā by 1ļøā£reducing complexity, 2ļøā£ maximising existing talent and 3ļøā£enabling ruthless prioritisation.
5 OD steps to optimise start-ups
OD processes typically follow 5 essential steps: Identify, Diagnose, Develop, Intervene, and Measure. This approach ensures data-driven and targeted interventions that address the organisationās needs.
šSCENARIO: Letās apply these 5 steps to maximise talent by developing high-value skills
Step 1: Identify - What are we solving for?
Define the problem or opportunity we want to focus on
šSCENARIO: How can we develop the high-value skills in our employees to tackle high-impact work, especially in light of a hiring freeze, while automating time-consuming, low-value tasks?
A well-defined problem sets the stage for focused data collection in the next step.
Step 2: Diagnose - Understanding the Present State
Use an OD framework to gather data from multiple sources, such as interviews, surveys, or observations. This framework helps you understand how different parts of the organisation are interconnected and how they relate to the problem. A simple framework I recommend includes these key areas: strategy, structure, skills, stakeholders, systems of work and leadership and culture.
šSCENARIO
Strategy: Is the company's strategy clear, and are the skills needed to achieve the company goals well-defined?
Structure: Is the current organisational structure aligned to allow for skill development? Are employees in roles where they can best utilise and develop high-value skills?
Skills: What are the current skills of employees? What are the high-value skills needed for the company's success, both now and in the future? Are there skill gaps that are hindering the company's progress?
Stakeholders: Are internal and external partners engaged effectively in identifying skill needs and providing resources for development?
Systems of Work: Are processes, technologies, and data optimised to support skill development?
As you can see from our scenario, the goal is to identify skill gaps, development needs, and opportunities to enhance high-value skills.
Step 3: Develop - Designing Targeted Interventions
Using the data from Step 2, design specific interventions to address the identified skill gaps and development opportunities.
šSCENARIO
If the company strategy is unclear: Establish clear communication channels and frameworks, such as OKRs or KPIs, to break down high-level goals into actionable objectives for teams and individuals.
If managers struggle to identify critical skill gaps: Introduce tools to streamline the assessment process and implement structured frameworks to guide managers in evaluating and addressing skill needs.
If organisational systems are not integrated: Conduct a system audit and deploy integration tools, like API solutions or unified platforms, to connect and streamline disparate technologies.
Focus on 3-4 impactful interventions to avoid resource strainā progress should be prioritised over perfection.
Step 4: Intervene - Implementing the solution
Roll out interventions in collaboration with leaders and stakeholders. HRās role is to facilitate the process while empowering the organisation to own the solutions. Involve employees and leaders in the process to ensure buy-in and lasting impact.
šSCENARIO: If organisational systems are not integrated, partner with the IT, infrastructure, and delivery teams to conduct a system audit and implement integration tools, such as API solutions or unified platforms, to connect and streamline disparate technologies. Include department executives from areas most impacted by these systems to ensure their insights and alignment.
š For more examples of OD interventions, explore these 18 case studies.
Step 5: Measure - Evaluating the Impact
Finally, assess the effectiveness of your interventions.
šSCENARIO:
System efficiency: Have the implemented integration tools reduced manual work, redundant processes, or errors in workflows across teams?
Problem resolution: Have system-related bottlenecks or delays been resolved since the integration?
Time for growth: Has the integration freed up employeesā time to focus on developing high-value skills?
Time for high-impact work: Has the integration allowed employees to dedicate more time to high-impact, strategic tasks?
This evaluation helps you assess whether the intervention addressed the problem and provides insights for continuous improvement.
The bottom line
OD is the key to optimising start-ups for efficiency, adaptability and sustainable growth. By embracing ODās principles and structured approach, HR leaders can transition from operational firefighting to strategic impact, driving their start-ups toward long-term success.
What do you thinkāAre any of the following part of your top 3 COMPANY-LEVEL priorities for 2025? |