Canadian HR Reporter

CANADIAN HR REPORTER DECEMBER 2019 22 FEATURES A viation is one of those industries where innovation is absolutely critical, according to Jim Scott, president and CEO of Flair Airlines. "Twenty years ago, if you were in the low-cost business, which we're in, your costs would have been twice as high. So, they've halved in 20 years. And the reason for that is new technology and aircraft, but [also] innovation in how we move passengers and how we deal with customers. And if we didn't move, if we weren't innovative, we would perish." For example, airports are still a costly part of the process because so much is still done manually. But with the advent of self-check-ins, people are able to do much more themselves. And in the future, that will change again, he says. "You won't even recognize it. ere won't be people at counters — when you go into the airport, it will recognize probably some biometrics of yourself, your face or so on. And it will deal with you from what you've entered into the system, and it will know where you are during your whole journey through the airport until such time as you get on to the airplane." Another area of innovation involves the actual plane itself. ere's a group of captive consumers onboard, whose needs haven't been well met by airlines, says Scott. So, instead of people having to wait for a drinks cart to be pushed down the aisle, Flair is piloting an initiative that gives all passengers access to in-flight WiFi so they can order food and drinks from their phones. ere will also be a menu promoting, for example, local breweries, and passengers will be able to sample and order the product while on the plane. "[People] will be able to do in-cabin shopping… and then when the aircraft lands, it will download all the information and we will get a commission off of it. But what it allows the airlines to do is to maximize on the fact that they have people literally seat-belted into a seat for two or three or four hours with nothing to do than read the safety demonstration card, and we're going to start to give them options," he says. "Airlines traditionally are horrible at marketing to their customers — I mean, they think that charging for a bag or a boarding pass is innovative. It's not; it's a regressive way of obtaining revenue. So, we will be looking at Flair and then throughout the industry at innovative ways of obtaining revenue from passengers." For an airline, there are four crucial steps. e first is to get started; the second is to become profitable; the third is to be scalable; and the fourth is to be innovative, says Scott. And right now, Flair is starting to venture into innovation. To that end, a group of employees in their 20s and 30s are spearheading innovations such as the in-cabin shopping project, he says. "ey are constantly looking at ways of dealing with the consumer in a new way, which the traditional airlines haven't done and they'll be very slow to react," says Scott. "eir job is to find innovation for the airline, and then present it in a business case up through the airline structure, and then we fund it. And we're just beginning that process right now… we have a number of items waiting to come up through the system. And it's just a matter of execution." It's about having a team of people who can sense what's coming on the horizon and be able to make changes, he says. "We don't want to be cutting edge. We're testing systems that may not work. We want to be quick followers [of ] best practices. So, if somebody else's seen some innovation that's worked, we'll pick up on it very quickly. But we don't want to be a testbed because when you're doing R&D, sometimes, projects don't work. And that's where you can end up losing a lot of money because you have a bunch of failed projects in the year, and nothing to show for it but your R&D costs." And in hiring for innovation, HR can help by focusing on an entrepreneurial attitude when it comes to core competencies. at means finding people who have the tenacity to win under adversity, says Scott. "ere'll be 1,000 reasons to say no to new technology. And we really need people that are prepared to muscle the new technology through all the logjams that it normally gets when it meets a conservative industry like flying or banking," he says. "Entrepreneurs, they're sold on the idea and then they're prepared to take the extra steps to make it move forward." A t its basic level, innovation is about doing something better than is currently being done, says Elio Luongo, CEO and senior partner at KPMG Canada in Toronto. But advances in technology, quantum computing and digital attributes are changing the way we solve problems. "It's [about] really looking for new ways that solve a real need for a particular group, whether it's clients, businesses, the community, all of those things. Innovation plays a role," he says. Innovation is also about adaptation and agility, says Luongo. "I need to try and create a culture and an organization that can think of new ways of problem- solving, look at new ways and new ideas, and how disparate ideas from all different places might come together and add a new thought in terms of ways of doing things going forward." is kind of thinking helps with attraction when it comes to talent, he says. "Employees today want to be with an organization that embraces the future and our part of the ecosystem going forward. And they like new challenges. ey like new technology, and they want to be part of it. And I think they don't want to be left behind. So, it's really important as an employer… that they know that they're going to develop and learn new skills in critical thinking, in developing and problem-solving with the latest and greatest solutions, technologies and innovation — ideas that come from all over the place," says Luongo. "Employees are also looking for those opportunities to grow and learn and having a purpose, as well as being relevant in today's changing environment." at's meant providing employees with a lot of learning opportunities, such as the Digital University program at the Beedie School of Business at Simon Fraser University in British Columbia. It focuses on technology and data analytics to help prepare KPMG's auditors for advances in machine learning, artificial intelligence and technological transformation. KPMG also works with Singularity University in Santa Clara, Calif. so middle and top management can "learn the new skills and technologies and ways of thinking and the like for the betterment of our clients, our community, in all the things we do every day," he says. ere's a global war for talent, and while KPMG has typically been associated with accounting and risk aversion, it's important to pivot to attract the STEM (science, technology, engineering and math) talent, says Luongo. It really comes back to diverse thoughts, he says. "Inclusion and diversity also plays a role in this because… STEM talent has a different way of working than the traditional auditor, for example, that has grown up in our organization. But when you put the two together, you can create a lot of magic in terms of innovative ways of doing things in a much more efficient and much more accurate way than you currently do it." Strategic alliances are also important to infuse a culture that brings in different ways of thinking, says Luongo. KPMG works with cloud providers such as Google and IBM to transform the existing workforce, along with creative destruction labs such as MARs to find talent and keep building an innovative culture. "I don't think you can start at any point and say, 'Well, I'm done.' I think this is in itself an iterative process where you have to bring in the right people and the new skill sets at each level and infuse the organization with this new talent and ways of working," he says. In the same vein, KPMG has opened up an "ignition centre" in Vancouver and is building another in Toronto. ese involve multi-disciplinary teams vying to transform organizations through exponential technologies, design-thinking methodologies and business model innovations. "It's creative thinking and working and collaborating together in an environment where you have the different kinds of AI and digital tools, working together to solve a problem with digital specialists with traditional specialists, and with clients and/or the community to solve problems," says Luongo. One of the challenges with innovation, of course, is people's resistance to change, he says. "You need to foster a culture that embraces change, embraces failure and agility, failing fast, iteration — all of those things that come along with an innovative kind of culture — because innovation is in many respects, iterative… You try, fail and learn from the failure and try again, learn from that failure. And you continue until you find success in an innovation and the process in a capability or new way of doing things. And it takes time and patience." As for HR, it plays a role in helping shape the workforce. at means thinking about how to blend the human and the digital for competitive advantage, says Luongo. "e STEM talent, for example, has got a much more relaxed way of working versus traditional models. And, so, we've had to adapt in order to attract that talent so they feel comfortable, and that they belong and... can succeed in our working environment." HR also assists with strategic recruitment, and how to appeal to different types of talents, now and in the future, he says. "HR plays a very big role in that architecture around how do we put it all together? How do we adapt? How do we change?... And it's about the digital learning platforms and again, helping foster innovation as part of our culture." Elio Luongo CEO and senior partner at KPMG Canada in Toronto The audit, tax and advisory services company has more than 6,500 employees in Canada Jim Scott President and CEO of Flair Airlines The Edmonton- based airline has 300 full-time employee and 150 contractors

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