How to build an empire
1Digest
The episode of "Fixable" features a conversation with Orlando Ashford, Chief People Officer at Fanatics, a major digital sports platform. Orlando discusses the challenges of managing HR across multiple distinct business units within a growing organization, particularly the need to balance enterprise-wide initiatives with the autonomy of individual businesses. He seeks advice on maintaining a "one Fanatics" mindset while allowing for business-specific decision-making. Orlando shares his decision to come out of retirement to join Fanatics, highlighting the company's commitment to diversity and its Athlete Immersion Program. He elaborates on the tension between Fanatics' desire for a unified culture and the need for individual business units to operate independently, using compensation policies as an example. The hosts, Ann Morris and Frances Fry, suggest starting with the default of sharing as many services as possible across Fanatics' businesses, with well-reasoned exceptions for areas where customization is necessary. They emphasize the potential for mutual benefit and improved performance through shared services, acknowledging the natural human desire for freedom but arguing that shared services can lead to greater overall success. Frances proposes a portfolio approach, where shared services are evaluated based on their overall impact on the company's performance, even if individual businesses may benefit from some services more than others. Clear communication and transparency are crucial for this approach to be successful. The hosts role-play a scenario where a charismatic CEO of a new business unit resists adopting the company's shared HR system, highlighting the potential for pushback and the need for effective communication and persuasion. Orlando shares his experience with these conversations, emphasizing the need to differentiate between genuine improvements and personal preferences. Ann suggests that Orlando adopt a more assertive approach, emphasizing the importance of the collective and the potential for greater success through shared services. She encourages him to be clear about the benefits and the boundaries of his authority. Frances summarizes the key takeaways for listeners, emphasizing the importance of economies of scale and operational consistency for growth. She highlights the need for a balance between shared services and business-specific needs, and the importance of clear communication and a strong leader like Orlando to navigate this complex landscape.
Outlines
Introduction and Welcome: Balancing Shared Services and Business Autonomy
The podcast "Fixable" from the TED Audio Collective is introduced, with hosts Ann Morris and Frances Fry. The episode features a call from Orlando Ashford, Chief People Officer at Fanatics, a major digital sports platform. Orlando describes the challenge of balancing enterprise-wide HR initiatives with the autonomy of Fanatics' three distinct businesses: Fanatics Commerce, Fanatics Collectibles, and Fanatics Betting and Gaming. He seeks advice on maintaining a "one Fanatics" mindset while allowing for business-specific decision-making.
Orlando's Journey to Fanatics and the Balancing Act
Orlando shares his decision to come out of retirement to join Fanatics, highlighting four key factors: the sports-focused business, Michael Rubin's leadership, the company's commitment to diversity, and the Athlete Immersion Program. He elaborates on the tension between Fanatics' desire for a unified culture and the need for individual business units to operate independently. He uses compensation policies as an example, highlighting the challenge of balancing fairness with the need to attract unique talent.
The Portfolio Approach and Effective Communication
Frances suggests starting with the default of sharing as many services as possible across Fanatics' businesses, with well-reasoned exceptions for areas where customization is necessary. This approach prioritizes shared benefits and economies of scale. The hosts discuss the rationale behind sharing services, emphasizing the potential for mutual benefit and improved performance. They acknowledge the natural human desire for freedom but argue that shared services can lead to greater overall success. Frances proposes a portfolio approach, where shared services are evaluated based on their overall impact on the company's performance, even if individual businesses may benefit from some services more than others. Clear communication and transparency are crucial for this approach to be successful.
Key Takeaways for Growth and Consistency
The hosts role-play a scenario where a charismatic CEO of a new business unit resists adopting the company's shared HR system, highlighting the potential for pushback and the need for effective communication and persuasion. Orlando shares his experience with these conversations, emphasizing the need to differentiate between genuine improvements and personal preferences. Ann suggests that Orlando adopt a more assertive approach, emphasizing the importance of the collective and the potential for greater success through shared services. She encourages him to be clear about the benefits and the boundaries of his authority. Frances summarizes the key takeaways for listeners, emphasizing the importance of economies of scale and operational consistency for growth. She highlights the need for a balance between shared services and business-specific needs, and the importance of clear communication and a strong leader like Orlando to navigate this complex landscape.
Keywords
Economies of Scale
The cost advantage that arises from increased production. As production increases, the cost per unit decreases, leading to greater profitability.
Shared Services
Centralized services provided to multiple business units within an organization, such as HR, finance, or IT. This can lead to cost savings, efficiency gains, and improved consistency.
Business Autonomy
The degree of independence that a business unit has in making decisions and operating independently. This is often balanced with the need for alignment with the overall company strategy.
Portfolio Approach
A strategy for managing a group of assets or businesses, where decisions are made based on the overall impact on the portfolio rather than individual components.
Freedom Fetish
A humorous term used to describe the natural human desire for autonomy and independence, even if it may not always be in one's best interest.
Fiercely Protecting the Collective
A strong and assertive approach to advocating for the overall good of the organization, even if it means making difficult decisions that may not be popular with individual business units.
Immaterial Discomfort
A humorous term used to describe the minor inconveniences or frustrations that may arise from adopting shared services or making changes to established practices.
Q&A
What are the key challenges of managing HR across multiple distinct business units within a growing organization?
Balancing enterprise-wide initiatives with the autonomy of individual businesses, maintaining a unified culture while allowing for business-specific decision-making, and ensuring fair compensation practices while attracting unique talent.
How can organizations strike a balance between shared services and business autonomy?
By starting with the default of sharing as many services as possible, with well-reasoned exceptions for areas where customization is necessary. This approach prioritizes shared benefits and economies of scale while allowing for flexibility where needed.
What are the benefits of adopting a portfolio approach to shared services?
This approach allows for a more holistic view of the impact of shared services on the overall organization, rather than focusing solely on individual business unit needs. It can lead to greater efficiency, cost savings, and improved performance across the entire company.
How can leaders effectively communicate the value of shared services to business unit leaders who may be resistant to change?
By emphasizing the overall benefits of the portfolio, being transparent about the rationale behind shared services, and acknowledging the potential for discomfort while highlighting the long-term advantages. A strong and assertive approach, combined with clear communication and empathy, can help to overcome resistance and build buy-in.
Show Notes
Orlando Ashford is the superstar Chief People Officer for Fanatics, the fast-growing digital sports platform that does everything from sell licensed merchandise to host iGaming and special events. Orlando comes to Anne and Frances to ask how to unify his complex organization’s culture. The three break down how to craft a convincing message to freedom lovers, why putting on different hats is a mission-critical leadership skill, and the kind of alignment that drives real progress.
What problems are you dealing with at work right now? Call or text 234-FIXABLE or email fixable@ted.com to be featured on the show.
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