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The end of employment, and the rise of the Union

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I found myself in an Uber in Malaysia on the way to meeting a startup which was about to launch a platform that will allow people to buy and manage their insurance needs directly, and effectively halve their premiums payable. In came a phone call from an Indonesian client asking for a recommendation for a specialist social team that is small, nimble and knows how Jakarta works.Amidst all this, I caught a breather and made some small talk with the Uber driver. I assumed she was a part-timer simply because she seemed pretty young and spoke well. To my surprise, she had taken to Uber full time because she ended up earning almost double of what she used to as a corporate executive.By the time I got off the car, I was in a strange daze of realization - The end of our world’s employment model that has served us so well for a millennia was upon us. That simple car ride above said a few things about how digital platforms are changing the way the world works dramatically:People or clients are going for the most convenient, direct route to outcomes; and digital matching platforms are enabling this way better than any human ever could. I called Uber rather than a cab company.Information and Self-Service access allows people and clients to be savvy enough to control and manage many things directly. Clients are no longer looking at cost effectiveness but value effectiveness. They want to be working directly with specialists who directly influence outcomes rather than the archaic One-Stop-Shop offering that was all the rave, last decade.Talents are looking at time flexibility and trading skills for better compensation; they now have platforms that create these options to monetize their skillsWhat we have here is a perfect storm that signals the end of The Company – an entity that hires people, wrapped in a management layer and other overheads, creating a “One-Stop Shop” or “Turnkey” proposition, and then sells to clients. Clients now have platforms to hunt for specific specialist talent, form a virtual Ocean’s 11 team, manage collaboration, and drive even better outcomes… without paying for management overheads and company profit margins. Good talents are able to pick jobs they like, maximize their time, focus on tasks not politics, have a good quality of life, while earning much more than being an employee.The only traditional commercial structure that is not threatened (yet) would be Brand and Product companies that actually produce something tangible from R&D and manufacturing. Anything remotely “middleman-ish” ranging from cab companies, insurance agencies to advertising agencies are at risk. These will be replaced by the following types of digital platforms:Matching Platforms for Goods and Services – like Transport, Property, Jobs, etcDelivery & Payment Platforms – online shops, services purchasing, etcCollaboration Platforms – where virtual teams can work and have resources and toolsSo the question begs – what about the value of things such as team dynamics, specific experience, culture, and environment? (Even project management is a skill that can go into the new model).The model that will emerge from this tectonic shift will be what I term as the “Union” – an entity that represents a bunch of talent who have worked together successfully thereby gaining in specific experience and culture as a team. The difference between the current Agency/Company and this new Union does not make money from clients, it makes money instead from the people it represents - by offering talents representation, business sourcing, and support services.The winning Union will be the one that supports its people best and hence holds the best talent.Consider the example of the Advertising Agency. Its place in the value chain is that it traditionally hosts communication strategists, a creative team, and a bunch of suits that manage a spectrum of third party talents and services, as a single one-stop service to clients. The agency makes its money from fees for its people’s time and sometimes a margin or management fee for third party services. What clients actually pay includes a thick layer of management salaries, office overheads, and of course, a profit margin for agency shareholders.Imagine savvy clients using a platform that can replace the Advertising Agency (fragments of which are available today but not yet a complete offering). Brand marketers can create and issue out briefs and set parameters for the team they need. The platform can immediately sieve through a database of talents across the entire delivery spectrum of skills and then identify the best talent for each role. Clients can review and select their dream team. The platform can then invite the selected personnel from anywhere in the world and these talents can respond with interests and costs for the client to consider and lock in. This convenient constitution of a dream team can be achieved in a matter of days.The platform can have some built-in logic which drives best practices like having a good suit, a good planner, analysts and even a commercial guardian on the team. It can also provide a tailored set of collaboration, management and tracking tools that the team will all use to deliver. Perhaps even manage auxiliary services including payment management, logistics, summary creation, you name it.Why would anyone ever need an advertising agency again? With such a platform, a brand marketer gets a great team (and logically great work) and pays less for a better result, while the actual working talent will earn more at a higher productivity level vs regular employment.The only counter argument would be for team dynamics and track record for the client’s benefit, and business pipeline and soft supports for the talents - precisely the stuff that can be fulfilled by a collective such as a “Creative Union”.You can apply the same scenario to many other industries and you would see the stark possibility and perhaps even realize platforms that are already available to make the shift happen. So I would advise anyone that still needs an income past the next five years to get really skilled because the future will be for the truly talented.If you are not that skilled and have spent too much time in “Management” then start treating your talent well so you can start a union. If you have already amassed some dough then try investing in owning and operating a platform. If all else fails, make sure that your driving license is valid. All is not lost… just different.Benjamin Tan, CEO & chief digital officer, Grey Group Southeast Asia & Australia

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