buy vs. build
buy vs. build
It’s not a contest. A better title might be ‘buy & build’. But it is a discussion worth having. An organisation that gets the balance right can create significant advantage over competitors while an imbalance can lead to unnecessary disruption or a stagnant, insular & resistant culture (especially where a ‘build’ approach is poorly implemented).
the risk of all ‘buy’
At one end of the equation, sits our hypothetical marine technical company that has scaled quickly, having to buy in capability to achieve early goals. As it reaches a certain size, the pace of hiring reduces. Employee numbers continue to grow but more slowly. The company culture, originally set only by the founder / CEO plus a few is now diluted among small handfuls of top leaders. Among them is a Chief People Person / VP HR or similar although the day-to-day of HR processes have yet to fall into place and Learning & Development is still in its infancy. There’s still much to do and not, yet, enough arms and legs to do it. After two or three years, the first cycle of senior departures kicks in. Several VPs leave but, with few options available, management has no choice but to go to the market. They find good people and bring them in. With the new leaders, come fresh ideas and a different style. All good. But the culture is further diluted. In some areas, there’s a stop-start in efficiency and the smooth running of operations as key knowledge is lost…
Our hypothetical company has reached a tipping point. It’s large enough now (perhaps several hundreds or even thousands) that its leaders can focus on more than just the day-to-day. HR has developed several learning offers and key processes but the organisation has not yet made that mental switch, to a place of where it actively develops talent & capability. As this takes considerable effort, it’s a switch that some companies never make. The risk of not changing is clear: with few internal choices available, a continual cycle of external hiring into most key positions while enthusiastic junior employees leave to look for development opportunities elsewhere.
balance in all things - have a plan
So, what to do? The trick is to be intentional. Have a plan.
This is not about always promoting from within but, rather, about having options. When a key role requires filling, do you have one or two internal choices you can put on the shortlist? Have you spent time developing those options so they’re competitive in interview? Do they have the depth you need? And the breadth? Has your People Plan allowed you to prepare for this moment? Do your senior leaders, your middle managers and your first-time leaders invest time in their respective teams? Growing & developing them? If the answer to any of these questions is ‘no’ then then there’s more to be done!
stonefort marine talent works closely with clients across the maritime sector on both sides of the build & buy equation, ensuring that - when the time comes - you have the choice you need to be successful.
Please contact mark hanson if you’d like to discuss how stonefort marine talent might be able to help your company.