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Deloitte: Be purposeful in defining your work

Workers think in terms of projects, not long-term employment. 10'000 Hours/Getty Images

Not that long ago, employees had a defined role at a consistent worksite for the same company for many years. The employer-employee relationship seemed stable and well-defined. But times have changed. In a recent Deloitte Insights article, "What is the Future of Work?," Deloitte highlights how "forces of change" — e.g., accelerating connectivity, new talent models, artificial intelligence, crowdsourcing, etc. — are radically redefining the who, what, and where of work.

The workforce of the future has significant implications for everyone. For employees, planning out a 50-year career is almost impossible. For employers, their traditional approach to attract, develop, and retain workers has been shaken. The focus now is accessing and establishing flexible work engagements around specific projects. Deloitte's insights, summarized below, are eye-opening and portend potentially significant societal impact.

What is work?
Deloitte notes that technological advances have long impacted the nature of work in the Western world. The chart below shows the evolution across three eras.

Source: Deloitte Insights

In today's postindustrial era, robots and automated systems are replacing some jobs. Yet workers need not fear: their relational skills and insights can't be replaced by technology — and, in fact, enhance the value offered by technology. For example, online juggernaut Amazon opened a tech hub in Houston in July 2019. As the name implies, the hub will use technology, but it will also create 150 jobs, per a recent InnovationMap article. This is just one example illustrating that work now focuses on the ability to capture value from technology, solve problems, and manage human relationships.

Who is working?
The relationship between employers and employees will likely never be the same. Per Deloitte Insights, "[o]rganizations now have a broad continuum of options for finding workers, from hiring traditional full-time employees to availing themselves of managed services and outsourcing, independent contractors, gig workers, and crowdsourcing." This means companies should be adept at recruiting, engaging, and retaining workers in new types of relationships.

Workers in Houston are wading into the new model. In a study profiled in a recent CultureMap article, "Houston ranked second statewide and 11th in the U.S. among major metro areas for the size of the skilled-freelancer workforce per revenue produced." The relationship between workers and their jobs is shifting from long-term employment to project engagement.

Where are people working?
One thing is clear: workers are spending less face time with work colleagues. More and more work is being accomplished from home or coworking spaces. Many workers appreciate the flexibility of working remotely; companies can benefit from reduced overhead.

Houston is experiencing huge growth in the number of coworking spaces. The Cannon Houston moved into its new 120,000 square foot building in July 2019, and WeWork is planning to open another location, which will be its fourth in Houston and second in downtown Houston. These spaces offer not just desks and offices, but a variety of events and programming designed to foster community.

The new frontier
Deloitte notes that the full impact of these changes may just be starting — and the future of work is not a "foregone conclusion." We can allow technology to merely "drive more efficiency and cost reduction, or we can consider more deeply the ways to harness these trends and increase value and meaning across the board — for businesses, customers, and workers." Deloitte urges organizations to "zoom out and imagine the possibilities" to create positive outcomes for work, the workforce, and the workplace. As Deloitte sums it up: "[p]urpose will bring the future into focus."

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This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

Copyright © 2019 Deloitte Development LLC. All rights reserved.

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Building Houston

 
 

Last weekend was a tumultuous one for founders and funders in Houston and beyond. Here's what lessons were learned. Photo via Getty Images

Last week, Houston founder Emily Cisek was in between meetings with customers and potential investors in Austin while she was in town for SXSW. She was aware of the uncertainty with Silicon Valley Bank, but the significance of what was happening didn't hit her until she got into an Uber on Friday only to find that her payment was declined.

“Being positive in nature as I am, and with the close relationship that I have with SVB and how they’ve truly been a partner, I just thought, ‘OK, they’re going to figure it out. I trust in them,'” Cisek says.

Like many startup founders, Cisek, the CEO of The Postage, a Houston-based tech platform that enables digital legacy planning tools, is a Silicon Valley Bank customer. Within a few hours, she rallied her board and team to figure out what they needed to do, including making plans for payroll. She juggled all this while attending her meetings and SXSW events — which, coincidentally, were mostly related to the banking and fintech industries.

Sandy Guitar had a similar weekend of uncertainty. As managing director of HX Venture Fund, a fund of funds that deploys capital to venture capital firms around the country and connects them to the Houston innovation ecosystem, her first concern was to evaluate the effect on HXVF's network. In this case, that meant the fund's limited partners, its portfolio of venture firms, and, by extension, the firms' portfolios of startup companies.

“We ultimately had no financial impact on venture fund 1 or 2 or on any of our portfolio funds or our underlying companies,” Guitar tells InnovationMap. “But that is thanks to the Sunday night decision to ensure all deposits.”

On Sunday afternoon, the Federal Deposit Insurance Corp. took control of SVB and announced that all accounts would be fully insured, not just up to the $250,000 cap. Customers like Cisek had access to their accounts on Monday.

“In the shorter term, the great news is SVB entity seems to be largely up and functioning in a business as usual manner,” Guitar says. “And they have a new leadership team, but their existing systems and predominantly the existing employee base is working well. And what we're hearing is that business as usual is taking place.”

Time to diversify

In light of the ordeal, Guitar says Houston founders and funders can take away a key lesson learned: The importance of bank diversification.

“We didn't think we needed one last week, but this week we know we need a resilience plan," she says, explaining that bank diversification is going to be added to "the operational due diligence playbook."

"We need to encourage our portfolio funds to maintain at least two banking relationships and make sure they're diversifying their cash exposure," she says.

A valued entity

Guitar says SVB is an integral part of the innovation ecosystem, and she believes it will continue on to be, but factoring in the importance of resilience and diversification.

"Silicon Valley Bank and the function that they have historically provided is is vital to the venture ecosystem," she says. "We do have confidence that either SVB, as it is currently structured or in a new structure to come, will continue to provide this kind of function for founders."

Cisek, who hasn't moved any of her company's money out of SVB, has similar sentiments about the importance of the bank for startups. She says she's grateful to the local Houston and Austin teams for opening doors, making connections, and taking chances for her that other banks don't do.

"I credit them to really being partners with startups — down to the relationships they connect you with," she says. "Some of my best friends who are founders came from introductions from SVB. I've seen them take risks that other banks won't do."

With plans to raise funding this yea, Cisek says she's already started her research on how to diversify her banking situation and is looking into programs that will help her do that.

Staying aware

Guitar's last piece of advice is to remain confident in the system, while staying tuned into what's happening across the spectrum.

“This situation that is central to the venture ecosystem is an evolving one," she says. "We all need to keep calm and confident in business as usual in the short term while keeping an eye to the medium term so that we know what happens next with this important bank and with other associated banks in the in our industry."

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