Last week. Goal of AI: Help us each out-innovate and out -perform.
Issues:
-AI moving fast with no governmental or industry controls. Open season for hackers. So intuitive, that users are making all kinds of decisions. Without knowing limitations of applications.
-Companies need AI teams, at a scale almost no company has.
-Does your company know + and – of each major AI application company is using? How many are there?
-Collaborate with competitors.
-“How” not “who”. Who can do this faster, cheaper and better. Don’t reinvent.
Two weeks ago, very embarrassing AI mess at huge company:
in forefront of AI
with their own large AI staff.
Company that has been advising many major corporations about AI.
There were all kinds of gibberish scattered through material. Think of information going to participants participating in major conference with lots of nonsense throughout.
How can each of us prevent that happening in our company? At our hotels?
Short story. I had boss early in my career that gave great advice.
We were dealing with massive problem. Handed to us that day. It was going to economically disrupt lives of thousands. Many we had known, respected and solved problems with for years.
That day, none of us really had clue how to proceed to cause least harm to largest number of people.
He sat us down. When faced with insurmountable problem. He first looked for total long-term solution. Knowing full well he could not implement that solution right now…or perhaps ever. It was still best place to start.
Once real solution was laid out, he said we would see what was critical to do today. Then the next few steps. But we could not do that until we laid out the complete solution. What our ultimate goal was.
Man can’t land on Mars until man has solved some issues on the Moon.
His advice has worked for me for decades. Find total solution, then break it into smaller steps.
What’s total solution on how to deal with AI that is changing daily
That’s purpose of these 4 newsletters. I’m excellent critical thinker. I don’t claim to be best succinct writer. I’m not smart enough to boil this topic down to quick answers.
That’s what we thought (hoped)AI would do. Turns out answer lies where it always has. It’s up to us. AI can’t think for itself. To solve any issues, AI needs guidance and direction from human beings. Darn easy to say. But doing? Solving?
Let’s start with the real solution mentioned above. Then we’ll break it down. The sequence I lay out is not important. But each of the steps are.
What team do we need to manage and control AI while optimizing it?
Where do the dollars come from? So how do we improvise.
Wrapping our arms around the real solution.
Who are right human beings” to guide AI going forward?
First, companies need their own dedicated AI Department.
Second, who is in dedicated Department? What are their roles? Concentrate on roles not titles, I use.
Solving big AI questions requires team. People who can still focus on corporate perspective while dealing with technology needed. But people who won’t get bogged down in technology.
Let’s get started.
Here’s list 6 critical positions for your AI team. Next, we’ll look at key roles of each. Then how to put team together without the budget to do it. How to identify people within your company. How to free them up.
-Strategic AI Leader. -Communication Director AI Operations Director
-Technical Director -AI Applications Research Director -AI Security Director
Roles of postions above
-Strategic AI Leader.
Who reports to one of people this newsletter is prepared for. Someone who has been at least EVP operationally at company. Hopefully more than one company. Someone who understands the business and direction of company. Person technologically savvy, who enjoys technology.
-Communication Director to assure what AI develops, is explained in simple English. To employees and customers using each major application
Yes over 50% of people in business are using AI.
Their depth of understanding is at level of an infant.
98% AI users know just enough to really screw AI Applications up. Without meaning to. All because they lack understanding of underlining technologies and software being used.
Understanding what AI can do for and to company. (As many companies are finding out. When it goes negative no-one understands why. When that occurs, time to straighten out is long.)
-AI Operations Director to implement company goals from each AI application. Someone who can get across to technocrats how company plans to use application and what goals and results are.
-Technical Director Person who can dig deep enough to understand how each AI application works. What each originally designed for. Compared to how company wants to use it.
Then convey to technical people running the AI application what company wants from it.
(This was huge issue when computers became readily affordable. People writing programs did not understand basic business principles. “Change order free for all”? Software took 2-5 times projected. Cost overruns far exceeded original projections.)
-AI Applications Research Director. Sole job is to stay abreast directions AI is moving. The directions the company cares about.
-Applications Director. Person who knows why and how, company wants to use and implement AI. Conceptually and operationally. Someone who can understand how far various parts of company can use an AI application. When they need to get company approval in writing before applying AI beyond certain point. Or apply new applications.
How many AI applications are being used in your company today? How many more are likely being tested? That your company does not know about? How many employees are using 2 or more AI applications together? Trying to accomplish something the AI applications were not intended for?
This is not at your level, but someone darn good, better be in charge.
-AI Security Director. Person who can shut down AI in an instant, entirely or individual applications. Not turn off workstations, turn off company wide. Think hackers. They are always testing ways to access your information. This person needs to work closely with security people in IT.
-Staff under above to make it work.
This requires at least 6 executives plus support staff. (I’m still waiting to talk with this kind of AI leadership and support. Have not found it with 103 companies.)
Doing above on limited budget.
If we each need this expertise yet can’t afford it…to avoid getting hacked, at cost of millions. Or suffer major AI application meltdowns at cost of millions.
AI can’t be 1-2 person operation any longer. It has become way to complex. It needs to be full blown division of company. Needs high level executive over AI. Without other duties. That’s the “solution” mentioned above. Rely on corporate brands to solve? Perhaps could work if none of your employees were combining other applications with brand approved applications.
Remember, brands are updating their applications during the month. Are your hotels up-to-date?
Primary audience for this newsletter: Executives running $75-750 million dollar companies.
Since no AI industry standards and none coming from government
AI, as an industry, is totally uncontrolled. Therefore, it must be controlled within each of our companies. Whether we are ready or not. Remember, to hackers AI is license to steal. Let’s make sure they steal from someone outside Hospitality industry.
Finding employees to do above tasks…within our own companies
Identify employees within our companies who have technical skills to address above.
Re-assign them and find other employees to take on at least half of their existing jobs.
Go out and hire Strategic AI leader and pay what it takes. (This is only job that should ever be advertised without published salary range.)
(I started and co-owned largest hospitality job board 13 years. Sold it. Became apparent companies were going to spend 10-40 times more on employment advertising than necessary. Incidentally companies are still wasting millions on employment advertising. Want to eliminate that? Let me know. Simple three part solution.)
Companies can’t afford to “wing it” when it comes to controlling AI.
Yet, that’s what most companies are doing.
Have talked with scores of companies with revenues from $100-250 million that have 2-3 person AI Departments. With other employees that touch on AI oversight in narrow areas. At individual hotels or regions. But no-one keeping the barn door closed company wide.
Think of today’s AI applications as group of gladiators. We’ve got a lion, panther, ocelot, jaguar and tiger. They are being pitted against an elephant, rhinoceros, giraffe, crocodile, and boa constrictor. Betting has just opened on which team is going to win.
If your company is using 10+ AI applications you’ve got the above.
We are meshing all kinds of AI applications together. We hope we know what will come out of joining them together. We are relying on hope?
This is how so many embarrassing mistakes are happening. AI applications are being combined in ways never intended. None of us know if or how combinations will work. But in rush to beat competitors, companies are introducing AI applications with almost no testing. And we aren’t even talking about hackers breaking into our mainframes through AI to reach into our revenues.
2 Part solution to find employees we need in AI within our companies?
Remember last weeks conversation? Collaborating with competitors? Which competitors are using same AI applications. Share information.
Can you jointly work on commonalities to reduce requirements in more than one / company. Even jointly solving half-problem puts you further ahead. Do they have person with better skills than you have? Split some payroll costs through consulting agreement.
Find people within your company that have some of skills needed above and interest.
Don’t think you can go into open market and find these people. Demand is to great. Any one you hire will have a better offer, by $50k or so within a month.
This is great time to have CHRO involved, remembering they, and you have three options.
Either go to billion dollar companies and swipe someone paying whatever it takes.
Identify and grow your own.
Find and hire 2-3 highly experienced IT search firms. Search companies that are starting to get into AI recruiting…at executive level. =
They should be charging 40-50% search fees, with at least 1/3, non-refundable up front. Lot of critical questions to ask these search firms. Have CHRO reach out, be glad to share from perspective of search firm that has place thousands. Questions they have to ask.
Why 40-50% search fees? You don’t want 15+ competitors ahead of your search.
Can normal hospitality search firms you use handle these assignments? Absolutely not. We’ve been asked and we turn companies down. We’ve been doing hospitality search longer than anyone your CHRO is using. Heavy IT and AI search is not what hospitality search firms do. We can all make plenty of money working main stream search. Smart Hospitality Retained Agencies leave IT and AI search to specialists.
I highly support and advocate number 2 above, GROW YOUR OWN.
Solution: Have CHRO look within your company for employees who meet at least 7 of 9 criteria below.
Current/past employees with technical degrees.
Who enjoy and thrive in technical jobs and problem solving..
That have at least 10 years of free enterprise operations business experience and,
Have led some very difficult projects.
Who enjoy learning new things, and
Facing daunting technical challenges.
Employees with exceptional communication skills. Proven records building teams.
Who explain complex subjects in simple English.
Employees with a high degree of patience and tolerance for unknown. Unflappable describes term.
Identify these people and start creating AI jobs for them. Grow your own.
How should CHRO go about finding above in your company?
Start by having your CHRO identify types of information they have in your Employee Database.
An adequate Employee Database will have:
Current resume
Skill sets identified from performance reviews.
Employee career goals for next 5 years.
Employee view of their strengths and areas they want to improve. What training/help they need.
Results from peer surveys on employee. How well does employee motivate people, listen to ideas, hear others out, avoid interupting, etc.)
How many people under employee have been promoted or transferred up?
Next three promotional steps company is grooming them for.
List of technical skills employee is proficient (from bosses/sup’r. not employee)
What job, special assignment would be ideal for employee now. How would company benefit? (Jointly employer/employee.)
CHRO does not have this information as a minimum? They need to start compiling it. CHRO has lot of important areas to be responsible for. Preparing employees for additional value to company has to be near top of list.
Quick story. I was at Weyerhaeuser Corp headquarters early in my career. Company compiled above for top 300 “Up and Comers” in company. Mandatory annual update was required in boss’ performance review.
Before going outside for any critical hire, the above 300 were scanned against search criteria. Anyone meeting 75% of criteria was automatically eligible for review. Sometimes re-assignment was temporary, others permanent. Goal was to prepare as many employees as possible for growth within company.
Their boss was consulted on importance of current job employee held. That boss could stop candidates’ consideration from new job. But only if next two bosses in chain of command concurred.
Employees under Top 300? Next 2,000? Company maintained shorter version of above, based on projected view on employee importance over next 3 years. Rest were getting filled based on annual performance reviews.
8 Steps 1-8 in next 30 days. Gain control of your AI. With existing employees
Identify all AI applications your company is using.
Which have broadest use? (These are your Critical AI applications.) Are they being / used per developer? Or being combined with other AI applications internally?
Are there lesser applications that have critical role in the company? Are they being / used per specs?
Should company allow continued use of other lesser AI applications? The applications employees swear by.
Which employees are constantly experimenting with other AI applications? (These are employees you will count on in the future. Perhaps take on some of existing AI roles above. Identify them. Find out their AI interests. Develop them.)
2. Any AI application being combined with another AI or inhouse software? Those need to be on “critical, examine today list.” Address these first. Why? They are the ones that can misfire and cause massive problems for the company.
Remember, AI applications being developed are for very specific needs. No-one knows what will happen if combined with others. It is a crap shoot.
Meet with developers of each critical application used. Learn exactly what the application was designed to solve. What are “gotchas.” What has not been tested as thoroughly as developer would like? What is planned next? How close to release are they? Will new release make AI application more, or less valuable, to you?
Any company that can’t answer above questions have no business using application.
Meet with your own team. What do they expect each AI critical application to do? Is that aligned with AI Application itself? If not what are pluses and minuses? How could company use this application safely?
What are 3 most critical AI issues today? What’s needed to solve them?
What AI issues need to be solved within next 3 months? Who on your team needs to head those up?
Monthly, stay abreast of new developments in critical AI applications. (They are all being upgraded weekly.)
Who are people on your staff that can handle small portion of AI positions listed above? How many hours per month can be freed up for each person?
Summary
Find real solution to problems, then steps fall into place.
Your ideal AI team has several strategic members
AI is totally uncontrolled. Should be AI industry problem. Instead it’s ours. Guess some things are not new!
Grow your own employees to manage your AI. Quicker, better, less expensive.
Follow 8 step process.
Coming in next 2 weeks:
-Managing AI Today, Tomorrow and Next Week
-Gaining Control of AI Without Breaking the Bank
Make sure you don’t miss the above.
Like assistance before next week? Reach out via LinkedIn or direct..
These are the most exciting times of our careers and companies. There are no limits to opportunities. Challenge is picking the right opportunities.
Tom Ferree is the founder of Ferree & Associates and SecureEmploy, organizations focused on helping companies find exceptional talent and helping professionals advance their careers. Since founding Ferree & Associates in 1977, Tom has worked extensively with hospitality companies, executives, and rising leaders across the industry. Through SecureEmploy, he shares practical career strategies, leadership insights, and real-world advice to help professionals grow their careers and help organizations build stronger teams.
