September 24, 2015, Churchill Club Awards, Redwood City, CA—The Churchill award for game changer: for indispensable technology and business innovation was presented to LinkedIn. Susan Lund, Partner, McKinsey & Co. talked with Allen Blue, co-founder, LinkedIn.
Lund stated that the increased personal connections needed innovations in both technology and business practices. LikedIn changed the way that people look for new jobs. Now it is through networks of people and connections rather than the company asking for resumes. This capability has changed the efficiency of the labor market and added much needed transparency to the job hunting process. The global GDP is growing an additional $2.7 B due to these changes. What was your vision for this product?
Blue responded that the idea came out of their own frustrations. The new social networks needed something for professionals, to show their work and interests, hire new people, and network with peers.
Lund asked about the challenges in going global.
Blue commented that the desire for growth was tempered when they found that they didn't know people in other markets. They had to learn about the world of work and change quickly. For example, 30 years ago the economic power in manufacturing was at its peak. Globalization and offshoring changed the picture and led to the acceleration of the technology class. These changes found their way into the economy and other areas.
Lund asked about human capital. People don't think about engaging in lifelong employment any more. Over half just go to work to get paid.
Blue noted that this is a change to the power of the individual. Companies try to control your fate by supplying new tools like cell phones and computers, but the younger people know that they have more personal power. They are demanding changes and raising expectations. The changes are opening new opportunities that focus on the individual. We have allowed the younger people to rewrite the rules.
Lund wondered about managing the data on careers, schools, etc. and using more analytics.
Blue stated that they use more than just people graphs. They use economic graphs, work locations, etc. to help others. In New York City, they aggregated data to help change schools, workers, and government.
Lund asked about the use of technology creating disadvantages that keep some from moving into jobs.
Blue acknowledged that the silks gap is a challenge, as lower skilled people try to move up. Big companies have changed the way they look at people, since there are few entry-level people and jobs in most companies. Many opportunities are opening up, but the systems to marry education and jobs, and access to education for jobs has to be refined. The systems have to close the skills gaps and a successful change will help companies, people, and schools.
Lund suggested that technology and jobs are seeing more automation, so technology is part of the solution.
Blue noted that he started in drama, and later moved to the tech area. It seems that anyone can be a part of a startup. The success of others leads to self confidence to start your own business.
Lund asked about a call to action. How to expand opportunities and change the world.
Blue noted that a pilot program in Phoenix is one new educational view. They take high school people and let them get a 1-year internship at a tech company. After a year, the people are qualified to be an IT professional. This alternate set of methods to find and train people is working. You have to find a system that works and provide positive feedback to help it grow. These different pathways are leading to a new revolution in education.