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Are Certifications Really Necessary?

Posted By AgileCareers , Tuesday, December 6, 2016

Are Certifications Really Necessary? 

As a career-oriented professional, chances are you either have a certification or have thought about obtaining a certification at some point in your career. It is even likely that you have obtained a foundational Scrum certification as an Agile practitioner. There still remains one question: Are certifications really necessary to succeed?

When certifications matter

A certification confirms you have met a minimum standard. But if the bar is low then certifications fail to provide any value to you or to your next employer. In other cases, when you are technically capable, you may not bother with the time and expense to get a certification and would rather let your experience speak. In this case, you may be thinking that the spirit of the Agile Manifesto, which favors “working software over comprehensive documentation,” runs contrary to pursuing certifications.

However, there are two instances when certifications make a real difference:

1.     When you don’t have much experience and you’re trying to prove yourself

2.     When it’s market driven.

 

No experience

If you’re a recent college graduate or a seasoned professional wanting to change your area of expertise, certifications may help you land a job. In the absence of experience, a certification can be a starting point. Certifications will show that you’re serious about your career choice – after all credentials are typically expensive and time consuming. When the certification carries a rigorous assessment, it provides some external, objective measure of your abilities.

When hunting for that first or next job, having a certification can help you get to the interview stage. This is especially true if you are working with agency recruiters. Most recruiters are not technical. They rely on your honesty and credentials when deciding whether or not to present you to their client. A certification may just tip the scales in your favor.

Market drivers

Even if you’re not a recent college graduate or changing your career trajectory, certifications can become necessary as a result of market conditions. Market conditions manifest in two different ways: the overall employment market and what the market requires of a particular type of professional.

Overall employment market – When the employment market is candidate driven, experienced candidates with good interpersonal skills can write their own ticket in many instances. In this type of market, certifications are less important. When the market changes, as it did in 2001 and then again in 2008, HR and hiring managers are inundated with candidates and need some way to differentiate them. One easy, although imperfect, way to differentiate candidates is based on education, which includes certifications.

The market for particular professionals – Specific skill sets or particular job titles can demand specific certifications. Often when specialties are emerging and it is difficult to identify appropriate experience, hiring managers will require a certification as the minimum standard. Once the field is established, the certifications can fall out of fashion as experience and success in the specialization becomes easier to recognize. If hiring managers have bought into a certification and you want a job with them, you may need to bite the bullet and get the certification.

Only you can decide whether a certification is right for you. They may be useful, but in some situations, they may be unnecessary. Either way, remember that, to succeed in a career, nothing can take the place of good old-fashion experience.

 

 

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Rethinking Reward and Recognition (Agile HR – Q&A Series Part 3)

Posted By Fabiola Eyholzer, Thursday, December 1, 2016

Rethinking Reward and Recognition (Agile HR – Q&A Series Part 3)

This post is part of the Q&A Series: Agile Leadership Webinar «Agile HR | People Operations».

We recently hosted Agile HR expert Fabiola Eyholzer for our Agile Leadership Webinars. In response to the high interest, Eyholzer is answering an aggregation of the great questions we received from participants during the webinar. Click here to watch full webinar

In Part 3, Eyholzer answers your questions about reward and recognition for Agile teams. If you have a question you would like featured in our Q&A series, please submit to chudson@scrumalliance.com.

 

What are the benefits of transparent salary structures?

A transparent salary structure brings many advantages. It fosters trust and enables an open discussion before there is a compensation issue. It also honors the value of an employee — regardless of his/her personal negotiation and lobbying skills. But despite all the advantages, every company needs to evaluate (and test) what degree of transparency is feasible.

 

What are examples of transparent salary structures?

There are varying grades of transparency. Here are some examples:

·      Publish all individual salaries.

·      Introduce a salary formula (considering role value, experience, loyalty, and location).

·      Publish pay grades for reference roles (e.g., Senior ScrumMaster).

·      Provide people with their individual salary band and position within that band (e.g., 85% to the midpoint).

 

Are individual incentives and MVP awards good for Agile Teams?

Management by objectives (MBO)-based bonuses are toxic for an organization that thrives on collaboration and responsiveness. A fair, transparent incentive system that focuses on enterprise performance (e.g., equity and profit-sharing plans) makes more sense for Agile Teams. That way, employees can financially participate in the overall achievements of the organization.

 

If we should avoid individual incentives, are team-based incentives OK, or are all incentives bad?

Traditional bonus systems are best eliminated on all levels. But companies who are not willing to remove bonuses should at least remember to:

·      Avoid incentives that might provide an undesired motivation for people to stay or interfere with the company’s need to move an employee out quickly.

·      Honor value generating and success on an enterprise level, and not individual heroism.

·      Move from an “if . . .  then” to a “now . . . that” approach.

·      Be aware of short-term and/or local optimization.

·      Make sure to reward great performance and efforts throughout the year, not just during a specific date or month.

·      Celebrate success and talk about success stories.

 

If individual bonuses are toxic for Agile Teams, what are some suggested ways to reward people?

We are often too focused on bonuses as the only way to incentivize and acknowledge people. But reward and recognition come in various forms: pride in achievement, social contacts and network, new challenges and growth, self-fulfillment.

 

Each enterprise must find a suitable combination for reward and recognition. This should range from formal recognition on an annual basis to more intimate, personal acknowledgments at a more frequent rate. This may include things like offering on-the-spot recognition, providing a catalogue of gift cards or merchandise, or donating to a charity in the name of the awarded employee or team.

 

Line managers need a budget they can use for recognition without approval. And the power of recognition must be in everyone’s hands.

 

Let’s say we enable a bonus system for our teams. How would we do this in Agile way?

There are different approaches. Some teams split the bonus based on seniority level and/or role, while others hand out equal amounts to each team member. Some teams pay out all the money directly, while others hold back a certain portion for a team event.

 

There are also examples where each person gets to distribute a portion of their team bonus based on how they view the contribution of the other team members. Such an approach may sound intriguing since we empower everyone to make salary decisions. But with great power comes great responsibility, and it can quickly backfire and destroy the team dynamic and spirit. If you want to empower people, give them the power of recognition instead.

 

Aren’t team bonuses or rewards the equivalent of everyone getting a trophy so no one feels bad?

No, they are not. The “everyone gets a trophy” approach means you get a trophy for showing up, regardless of your delivery. A team award is something different: It is only handed out to the winners. And yes, they are rewarded as a team, regardless of the different levels of individual performance and contribution. That doesn’t matter, because the team wins (or loses) together.

 

If you encounter individual performance issues, you must deal with them head-on. You cannot and should not rely on an incentive system to take care of that.

 

How do you promote collaboration over competition between business areas in big companies?

It is simple: Behavior follows compensation. If we focus on team goals, we will have optimizing for team performance even if that comes at the expense of another team. If you want to foster collaboration across the organization, reward good behavior and exceptional efforts of collaboration. At the same time, don’t overlook bad behavior. Reprimand and deal with it fast — before it sets a precedent and becomes demotivating to others. But above all, ensure that your ways of working and sharing knowledge and skills are in sync with a highly collaborative environment and culture.

 

Why and how do you decouple compensation from performance management?

We all know that the higher the rating, the better the cash incentive. Managers fill out hordes of papers to get the number just right, often tweaking certain categories to the get the desired outcome.

 

At the same time, we falsely believe there is a guaranteed link between ratings and compensation. But that decision is not purely driven by individual contributions and achievements. The economic situation, corporate climate, and labor markets have just as much to do with it — factors individual managers hardly have control over.

 

We eliminate employee appraisals completely. And by doing so, we decouple HR instruments from the iterative performance flow.

 
How do you deal with pay raises in an Agile organization?

Compensation must be easy to deliver — and change. That can only be done by empowering managers to set salaries and pay increases. It must be decoupled from an annual process to allow for a more flexible schedule. Agile leaders are guided by peer reviews, access to adequate data, and expert advice from their compensation team.

 

If HR/management resists changing their bonus approach, how can teams argue effectively for a change in process?

The industrial-era belief that money is the strongest (and only effective) motivator for employees is firmly rooted in many organizations. Unsurprisingly, compensation and cash bonuses are still used as the predominant way to incentivize and recognize people — an expensive yet ineffective tool.

 

Ever since Daniel Pink’s [book] Drive (and decades of scientific studies), it is clear: Agile people are driven by mastery, autonomy, and purpose. Understanding the new ways of motivating and honoring people is part of embracing the new talent contract and creating a desirable place of work.

 

How do you deal with people who are motivated by power and money alone?

The problem is this: Management and HR believe employees are only motivated by money. That’s why they keep pushing money at them, and then they complain that people are all money driven. We change that situation by taking money off the table. Instead of individual bonuses, we offer meaningful recognition, inspiring work, and individual career coaching and growth opportunities. Not all but most people value that more than some incentive.

 

---

 

About Fabiola Eyholzer:

Fabiola Eyholzer (CSPO, SPC 4.0) is an expert and thought leader in Lean/Agile people

operations — the 21st-century HR approach — and CEO of Just Leading Solutions, a New York-based consultancy for Agile HR.

Feel free to connect with Fabiola on Twitter (@FabiolaEyholzer) or LinkedIn (linkedin.com/in/fabiolaeyholzer).


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Don’t Sabotage Your Hiring Process

Posted By AgileCareers , Wednesday, November 30, 2016

Don’t Sabotage Your Hiring Process

Hiring managers and recruiters working with Agile organizations may find that traditional hiring methods can result in the wrong “fit” being hired. The traditional process relies on resume reviews and screening calls or pre-interviews by people who won’t be working with the candidate directly. While the intention is to present only qualified candidates to the team, the hiring process itself may be interfering with finding the best fit candidate. As Agile practitioners, both the candidates and the teams are interested in the people and interactions over process in their work so changing the hiring process to look more like the working environment makes sense.

Focus on what you really need

Agile hiring isn’t based on a pie-in-the-sky wish list. Before posting your job on the website or engaging staffing firms, sit down with your team and do some soul searching. What do you really need this person to bring to the table? What will they be doing and how will they be doing it? What skills and experience are truly required? What skills and experience can be learned over time? Be reasonable and realistic.

Compare candidates to the job

When you interview a candidate who, by all indications, is a good fit – hire them! There’s no better way to lose a good candidate than by making them wait while you search for the possibility of someone better or because you need to validate your feelings by shopping around first. If you’re lucky enough to find a good match in your first candidate, don’t wait. Hire them, and quit second guessing yourself.

Hire for attitude and aptitude

Candidate attitude and aptitude rank high on the list of prerequisites for anyone with experience on the hiring side. Technical competency, of course, is necessary, but their attitude and aptitude are equally important when making hiring decisions. Instead of holding out for someone with the exact technical skillset and 10 years of experience, think about hiring the candidate with a good foundation, a great attitude, and an ability to learn skills quickly. It is the person, their ability to respond to change, work with a team, and whether they hold the Agile values—not a checklist of education or job titles—that you are seeking.

Create an effective interview process

It is important to validate “fit” with the team as well as on paper. Just because the candidate matches the job description on paper does not guarantee they will work with the team. Make it a priority to include the team in the interview process.

The best way to evaluate “fit” is by putting the candidate and the team in an actual working situation rather than by just asking questions. This is different than competency testing for a particular skill or running simulations. Have the candidate spend a day working directly with the team on an actual project. Each team member will have the opportunity to interact with the candidate and evaluate them for the desired skills and fit. The team will have ownership for the decision based on face-to-face interactions, and the candidate will experience the working environment to determine if it is a fit.

Tailor your job offer

The candidate search flows in both directions; the candidate is also evaluating your company and the team. It is important that you are prepared to sell the candidate on the opportunity. A standard package of compensation may not match with the candidate’s values or goals. The best way to sell a candidate on a job offer is to find out what is most important to them. You can then tailor your offer around their desires and goals. What makes your company different? Do you offer any unique perks or benefits? Why do you like working there?

This is an opportunity to collaborate with the candidate rather than negotiate. Candidate fit is a mutual situation. Not only do you need to ensure they are a fit for your team but that the team and company are a fit for the candidate. Find out early in your interview process what they are looking for in their next opportunity. Can you offer what they need for long term success or will the relationship fizzle out after a few months?

Respond to the change

Hiring professionals is a continually evolving process. Times change and, to be successful, you’ll need to change your hiring processes as well. Rather than letting ego and tradition dominate your hiring process, recognize that the balance of power can and will shift, focus on solving your problem at hand – hiring high-quality people that will benefit your company.

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Shifting to Iterative Performance Flow (Agile HR – Q&A Series Part 2)

Posted By Fabiola Eyholzer, Thursday, November 24, 2016
Updated: Monday, November 21, 2016

Shifting to Iterative Performance Flow (Agile HR – Q&A Series Part 2)

This post is part of the Q&A Series: Agile Leadership Webinar «Agile HR | People Operations».

We recently hosted Agile HR expert Fabiola Eyholzer for our Agile Leadership Webinars. In response to the high interest, Eyholzer is answering an aggregation of the great questions we received from participants during the webinar. Click here to watch full webinar

In Part 2, Eyholzer answers your questions about performance management in Agile organizations. If you have a question you would like featured in our Q&A Series, please submit to chudson@scrumalliance.com.

Performance cycles are generally annual or semiannual. What cycles are appropriate in an Agile world?

Considering the accelerated pace of today’s business world, it is increasingly difficult to set meaningful goals on an annual or even semiannual basis. We need shorter cycles with an optimal balance of responsiveness, predictability, and reliability. Iterations are the new performance cycles.

Many organizations are doing away with the bell curve. What are your thoughts?

I absolutely agree. Bell curves (a.k.a. forced distribution, staked rankings) are demotivating, unnecessarily aggressive, and damaging to human relationships. Ten percent of Fortune 500 companies have already eliminated employee appraisals. Among them is GE the original champion of the bell curve.

Can eliminating appraisals demotivate a good employee from giving her best?

Quite the opposite. Objectives are replaced by meaningful stories, annual reviews become an ongoing dialogue, and improvement plans turn into interactive learning and growth. By doing this, we are engaging with people on a completely different level. That is inspiring for people and taps into their intrinsic motivation.

What is the most effective way to evaluate and get feedback of an employee?

In Agile, we don’t want to “evaluate” people. Instead we want to be forward-looking and focus on strengths. What we want to do with employees is more important than what we think of them. Every people leader must be able to answer questions like, “What would we do if that person quit today? Would we try to keep them and if yes, what would it take?” That requires them to have regular dialogue to discuss personal learning and growth potentials.

What do you mean by continuous feedback?

Relentless improvement is an integral part of any learning organization. Feedback conversations cannot only take place once or twice a year. We need to fundamentally increase the frequency but also the intensity and quality of feedback. That means shaping a culture of mutual respect where candid dialogue and continuous feedback is consistently happening. Feedback comes in different forms and structures. But feedback is not something only given from manager to subordinate. The power of feedback is in everyone’s hand.

Do you think 360-degree feedback could successfully take over traditional appraisal?

No, it cannot. A 360-degree approach is often lengthy and inadequate. We assume that ratings measure the performance of the rate, but they actually reveal more about the rater. Studies show that 62% of a rating depends on the individual rater. The actual performance only accounts for 21%A 360-degree approach with many raters does not rectify that it remains an inadequate appraisal.

What criteria should be used to evaluate people and teams in an Agile setting?

The focus is no longer on assessing individual goals and looking back. Performance flow is about continuous improvement not only on a personal but also on an enterprise level (a part neglected in traditional performance appraisals). Agile ceremonies like reviews and retrospectives are all about inspecting and adapting.

We measure results to understand where we stand and whether we are moving into the right direction. It also helps us be accountable. Key performance indicators (KPIs) become indicators again. And we don’t measure things to set compensation and shape a career. An example: Velocity is an invaluable indicator. But it makes terrible appraisal criteria for compensation and promotions. That is why we decouple performance management from HR instruments.

If we have seven business units, and each unit has its own portfolio manager, how does HR evaluate each portfolio performance? What are the criteria to do that?

It is not the task of HR to evaluate (portfolio) performance. This is the responsibility of Agile Teams and teams of teams. As criteria, they choose a set of metrics that gives them the data needed to continuously inspect and adapt.

What role would HR play in helping individuals improve their performance, if any?

We empower people to be in charge not only of their work but also of their own development. That is why HR takes a supporting role. HR assists leaders, acts as career coach to employees, and provides active learning platforms. The latter includes embedding knowledge building into the work flow. Examples of this are FedEx Days, hackathons, Wicked Wednesdays, etc.

How do you report someone who is not engaging or acting as part of the team? How do you handle situations where an individual negatively influences the team?

Performance (and behavioral) issues must be dealt with immediately there is no point in waiting for an annual review to come up. Agile Teams often handle challenges directly or, if need be, engage the help of their ScrumMaster or Agile coach. Other cases are escalated to the manager, and he or she must act. And, yes, this may mean transitioning people to a different team or releasing them back into the work space. Such a decision cannot be delayed (the motto is: “Hire slow, fire fast”).

What type of paperwork do you provide or fill out for performance reviews via iterations? And how does HR collect the data?

There are different types and levels of documentation and not everything is reported to HR. Ongoing feedback between manager and subordinate, as well as among peers, is between the involved parties. We want the focus to be on the feedback part, not the implications it has on any HR instruments. Agile Teams document some information in their retrospective; other interactions go undocumented. More structured feedback loops typically only involve a message to HR that the conversation or exchange has taken place. HR is not privy to the details. But HR is documenting the individual learning and growth profiles.

What kind of transition do you recommend?

An iterative approach. It starts by analyzing the current process, clarifying the reasons for change, and describing the desired outcome. The book Below Expectations: Why Performance Appraisals Fail in the Modern Working World and What to Do Insteadby Armin Trost, provides valuable tips to guide that discussion. This helps to identify and verify possible methods that might work for the organization. Any chosen solution must be aligned with their corporate values and Agile/people approach. 

------

Fabiola Eyholzer (CSPO, SPC 4.0) is an expert and thought leader in Lean/Agile people operations the 21st-century HR approach and CEO of Just Leading Solutions, a New York-based consultancy for Agile HR.

Feel free to connect with Fabiola via Twitter (@FabiolaEyholzer) or LinkedIn (linkedin.com/in/fabiolaeyholzer). 

Tags:  Agile  bonus  compensation & benefits  culture  digital age  employee engagement  eyholzer  flow  future of work  hiring  human resources  learning  people operations  performance management  practices  principles  reward  scrum  talent  talent acquisition  transformation  values  work trends 

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Shifting to Iterative Performance Flow (Agile HR – Q&A Series Part 2)

Posted By Fabiola Eyholzer, Thursday, November 24, 2016
Updated: Monday, November 21, 2016

Shifting to Iterative Performance Flow (Agile HR – Q&A Series Part 2)

This post is part of the Q&A Series: Agile Leadership Webinar «Agile HR | People Operations».

We recently hosted Agile HR expert Fabiola Eyholzer for our Agile Leadership Webinars. In response to the high interest, Eyholzer is answering an aggregation of the great questions we received from participants during the webinar. Click here to watch full webinar

In Part 2, Eyholzer answers your questions about performance management in Agile organizations. If you have a question you would like featured in our Q&A Series, please submit to chudson@scrumalliance.com.

Performance cycles are generally annual or semiannual. What cycles are appropriate in an Agile world?

Considering the accelerated pace of today’s business world, it is increasingly difficult to set meaningful goals on an annual or even semiannual basis. We need shorter cycles with an optimal balance of responsiveness, predictability, and reliability. Iterations are the new performance cycles.

Many organizations are doing away with the bell curve. What are your thoughts?

I absolutely agree. Bell curves (a.k.a. forced distribution, staked rankings) are demotivating, unnecessarily aggressive, and damaging to human relationships. Ten percent of Fortune 500 companies have already eliminated employee appraisals. Among them is GE the original champion of the bell curve.

Can eliminating appraisals demotivate a good employee from giving her best?

Quite the opposite. Objectives are replaced by meaningful stories, annual reviews become an ongoing dialogue, and improvement plans turn into interactive learning and growth. By doing this, we are engaging with people on a completely different level. That is inspiring for people and taps into their intrinsic motivation.

What is the most effective way to evaluate and get feedback of an employee?

In Agile, we don’t want to “evaluate” people. Instead we want to be forward-looking and focus on strengths. What we want to do with employees is more important than what we think of them. Every people leader must be able to answer questions like, “What would we do if that person quit today? Would we try to keep them and if yes, what would it take?” That requires them to have regular dialogue to discuss personal learning and growth potentials.

What do you mean by continuous feedback?

Relentless improvement is an integral part of any learning organization. Feedback conversations cannot only take place once or twice a year. We need to fundamentally increase the frequency but also the intensity and quality of feedback. That means shaping a culture of mutual respect where candid dialogue and continuous feedback is consistently happening. Feedback comes in different forms and structures. But feedback is not something only given from manager to subordinate. The power of feedback is in everyone’s hand.

Do you think 360-degree feedback could successfully take over traditional appraisal?

No, it cannot. A 360-degree approach is often lengthy and inadequate. We assume that ratings measure the performance of the rate, but they actually reveal more about the rater. Studies show that 62% of a rating depends on the individual rater. The actual performance only accounts for 21%A 360-degree approach with many raters does not rectify that it remains an inadequate appraisal.

What criteria should be used to evaluate people and teams in an Agile setting?

The focus is no longer on assessing individual goals and looking back. Performance flow is about continuous improvement not only on a personal but also on an enterprise level (a part neglected in traditional performance appraisals). Agile ceremonies like reviews and retrospectives are all about inspecting and adapting.

We measure results to understand where we stand and whether we are moving into the right direction. It also helps us be accountable. Key performance indicators (KPIs) become indicators again. And we don’t measure things to set compensation and shape a career. An example: Velocity is an invaluable indicator. But it makes terrible appraisal criteria for compensation and promotions. That is why we decouple performance management from HR instruments.

If we have seven business units, and each unit has its own portfolio manager, how does HR evaluate each portfolio performance? What are the criteria to do that?

It is not the task of HR to evaluate (portfolio) performance. This is the responsibility of Agile Teams and teams of teams. As criteria, they choose a set of metrics that gives them the data needed to continuously inspect and adapt.

What role would HR play in helping individuals improve their performance, if any?

We empower people to be in charge not only of their work but also of their own development. That is why HR takes a supporting role. HR assists leaders, acts as career coach to employees, and provides active learning platforms. The latter includes embedding knowledge building into the work flow. Examples of this are FedEx Days, hackathons, Wicked Wednesdays, etc.

How do you report someone who is not engaging or acting as part of the team? How do you handle situations where an individual negatively influences the team?

Performance (and behavioral) issues must be dealt with immediately there is no point in waiting for an annual review to come up. Agile Teams often handle challenges directly or, if need be, engage the help of their ScrumMaster or Agile coach. Other cases are escalated to the manager, and he or she must act. And, yes, this may mean transitioning people to a different team or releasing them back into the work space. Such a decision cannot be delayed (the motto is: “Hire slow, fire fast”).

What type of paperwork do you provide or fill out for performance reviews via iterations? And how does HR collect the data?

There are different types and levels of documentation and not everything is reported to HR. Ongoing feedback between manager and subordinate, as well as among peers, is between the involved parties. We want the focus to be on the feedback part, not the implications it has on any HR instruments. Agile Teams document some information in their retrospective; other interactions go undocumented. More structured feedback loops typically only involve a message to HR that the conversation or exchange has taken place. HR is not privy to the details. But HR is documenting the individual learning and growth profiles.

What kind of transition do you recommend?

An iterative approach. It starts by analyzing the current process, clarifying the reasons for change, and describing the desired outcome. The book Below Expectations: Why Performance Appraisals Fail in the Modern Working World and What to Do Insteadby Armin Trost, provides valuable tips to guide that discussion. This helps to identify and verify possible methods that might work for the organization. Any chosen solution must be aligned with their corporate values and Agile/people approach. 

------

Fabiola Eyholzer (CSPO, SPC 4.0) is an expert and thought leader in Lean/Agile people operations the 21st-century HR approach and CEO of Just Leading Solutions, a New York-based consultancy for Agile HR.

Feel free to connect with Fabiola via Twitter (@FabiolaEyholzer) or LinkedIn (linkedin.com/in/fabiolaeyholzer). 

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AgileCareers is dedicated to connecting Scrum and Agile organizations with qualified, passionate Agile professionals. We strive to Transform the World of Work by offering a platform that has the resources and technology to help build those professional synergies.