Future of Work JANUARY 2019 - An
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JANUARY 2019 Future of Work An introduction Copyright © 2019 Deloitte Development LLC. All rights reserved.
ITALIAN FIRM ACTIVATION What is the Future of Work? Copyright © 2019 Deloitte Development LLC. All rights reserved.
The future is already here, it just isn’t equally distributed TECHNOLOGY INDIVIDUALS RATE OF CHANGE BUSINESSES PUBLIC POLICY 1970S 1980S 1990S 2000S 2010S TODAY Copyright © 2019 Deloitte Development LLC. All rights reserved.
We analyse three dimensions of disruption… In exploring the future, we analysethree deeply integrated dimensions of Work What is the work, and what work can be any workforce completed through the implementation transformation of cognitive and automation? Workforce Workplace Who can do the work and how can Where can the work get done and we enable alternative talent models how can we maximise collaboration, in addition to full time, traditional productivity, and consistency across employment? the workforce experience? Copyright © 2018 Deloitte Development LLC. All rights reserved. Copyright © 2019 Deloitte Development LLC. All rights reserved.
Seven strategic questions… 1. WHAT is your future digital strategy? What forces are driving change? What are the work (outputs) required? 2. WHAT work can be done by smart machines, robots, and human-machine teams? 3. WHO can do the work? 4. WHERE can the work be done? 5. HOW does the future of work and workforce influence organization design and behavior? 6. HOW does the future of work change leadership and management requirements? 7. HOW does the future of work change skills, talent models and programs? Copyright © 2019 Deloitte Development LLC. All rights reserved.
What do we need to start thinking about? How work is delivered How business is How people How work is enabled organised experience work Understanding our talent as A workforce that is well as we understand our Architecting an organisation Networks of teams that augmented by machines and customers to build an that leads the way by maximise flexibility and powered by new models of employee centric experience disrupting in the market, innovation over hierarchy talent of work instead of being disrupted Reinventing the way our jobs Redrawing the boundaries of Redesigning the purpose of Reinventing the traditional are designed, harnessing the our organisations, delivering an office space with digital role of HR through thinking capabilities that make us through an ecosystem of tools to enable people to in new ways and re-directing uniquely human connected entities work when, where and how services to the experts they want …to take advantage of the opportunities the Future of Work presents Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of work How work is delivered… Copyright © 2019 Deloitte Development LLC. All rights reserved.
Disruption as usual… WORK TECHNOLOGY Automation Change in nature of work Technology of the career How can I re-profile my workforce to is everywhere How do I adapt my business reflect the future of work? How do I create a business that model to accommodate new ways is relevant in the new digital age? of working? How do I harness the power of insight to drive performance? Explosion of AI & contingent work Cognitive How do I adapt to a world where the Tsunami of How do I harness the power of skills I need no longer want to be data cognitive computing within my employed? business model? Diversity & generational change How do I adapt my organisation to be a place where people want to work? PEOPLE Copyright © 2019 Deloitte Development LLC. All rights reserved.
The future world of work… Employees Employees Joint Ventures Contractors TRANSFORM Organisation DISRUPTED Freelancers Crowd Robots Copyright © 2019 Deloitte Development LLC. All rights reserved.
Planning for more than just people… As part of Deloitte’s HC Trends report 2018, 37% of this year’s survey respondents expected growth in the use of contractors, 33% in the use of freelancers, and 28% in the use of gig workers Linking strategy & work Profiling the impact on the Realising benefits of new organisation workforce What work do I need to transform my How do I decide between what I could do What is the financial and economic benefit workforce and survive and thrive given our and what I should do in terms of moving associated with adopting the future vision? to a new organisational model of working? workforce blueprint? Physical Proximity Work- forces Automation Level Talent Category Copyright © 2019 Deloitte Development LLC. All rights reserved.
We have built a work architecture to describe all work together… Future of Talent optimisation (FOTO) takes an analytical approach to understanding the impact of the future of work Work architecture Work describing roles Organisational wide Aggregated work output work profile Assessment Problem solving Production Communication Supervision From the component parts of work… …we can show groups of activities …which can be used to describe the …and target where work can be that represent roles… work across occupations and business transformed across an organisation. units… Copyright © 2019 Deloitte Development LLC. All rights reserved.
Disruptors to leverage Future of Work opportunities… WORKER 2 Who can do the work? Technological advancements enabling new models for interaction between companies and different worker/talent types (e.g. employees, gig workers, contractors, crowds) 2 Talent Category WO R K WO R K P L AC E 1 What work can be done by robots? 3 Where is the work done? Increasing automation, cognitive and AI technologies Rethinking combinations of where work can be done and how workplaces support productivity Automation Level 1 3 Physical Proximity Future work options Current work options Copyright © 2019 Deloitte Development LLC. All rights reserved.
Delivering changes to the workforce… Deloitte worked with a large financial institution to define their workforce strategy and create a workforce composition plan to improve performance, market position, and to ensure future success Business issues Approach Impact The client had significant challenges Our approach focused on 3 main The following benefits were realised by where they wanted us to focus workstreams the client Mandated an FTE reduction by FOTO methodology Understand size and scale of the Board potential disruption What work will they be Capability assessment Modelling the workforce impact completing in the future over 3-5 years What will be the external Workforce design choices Workforce Strategy and impacts on the business composition plan WORKFORCE COMPOSITION GREENHOUSE LABS WORKFORCE MIX Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of work How work is organised… Copyright © 2019 Deloitte Development LLC. All rights reserved.
How work is organised… The Adaptable Organization (AO) is a fundamental shift in management philosophy. AO enables large organisations to operate with a start-up mindset and drive modern people practices that enable agility through empowered networks of teams. 87% only 11% feel confident in their ability believe digital will disrupt to get it right their industry, but only 6% 50% are are highly agile today in the middle of reorganising how they work, but… 70% need 87% do not 92% of organizations an entirely new talent have the right leaders are not correctly structured to base operate in this new environment AO prepares organizations for the future of work and unforeseen changes in the environment. Copyright © 2019 Deloitte Development LLC. All rights reserved.
Adaptable Organisations are viewed through 5 layers… THE THE THE THE THE ECOSYSTEM ORGANIZATION TEAM LEADER INDIVIDUAL How the work environment How work is How work is DELIVERED How work is MANAGED How work is OPERATES ORGANIZED and LED EXECUTED Adaptable organizations exist …they organize capabilities … they enable high performing …leaders are inclusive …and they unlock resilient in Purpose Driven away from deep hierarchy and teams by adopting connected orchestrators versus individuals through ecosystems with defined silos towards a network of ways of working and an technical task masters in adaptive talent programs customer focused missions multi-disciplinary adaptable culture order to unlock the full to enable how people want to organizations potential of diverse skill-sets learn, grow and develop Copyright © 2019 Deloitte Development LLC. All rights reserved.
How adaptable is your organisation? Rather than imposing on people how they should work, the Adaptable Organisation organises itself around people’s natural work and communication patterns. Where on the scale of the behavioural traits does your organisation sit? Stable Organisation Adaptable Organisation Profit-driven Purpose-driven Internal-focused Customer-focused ecosystem Hierarchal structure Flexible network of teams Siloed, bureaucratic interactions Collaboration and agile governance One-size-fits-all talent management Individualized talent engagement Resistance to change Change and learning are continuous Copyright © 2019 Deloitte Development LLC. All rights reserved.
Marrying the visible and the invisible to drive adaptable health… Before today, no single tool existed that provided a comprehensive diagnosis of our clients organizational health. In today’s world of complex and ambiguous problems, AONA allows us to combine tools covering formal structure analysis, network analysis, work complexity and customer mission alignment for a complete examination of an organization’s adaptive health X-Ray MRI Brainscan Traditional process of scanning only help us Current techniques consider things like Network analysis goes beyond the surface of the understand formal organizational relationships. relationship of performance and tenure with the formal network to understand how information org structure. flows, and how people actually work together. Copyright © 2019 Deloitte Development LLC. All rights reserved.
AONAs innovation in adaptability metrics… Organisational Network Analysis sheds light on valuable diagnostic information. But, we are taking it further. As part of the organisational assessment, four new metrics have been created to assist AONA How different are the formal What parts of the How much effort are people How ready is the and informal networks? organization would benefit expending to engage with organization to become an from organizing cross- the individuals they need Adaptable Organization? functionally? today or in future scenarios? 1. Structure to Network 2. Cross-Functional Identifier 3. Effort Analyzer 4. Adaptable Readiness Comparer This metric quantifies the difference This metric compares formal and informal This metric examines how much effort it Structure is only part of the adaptable between an individual’s team members in networks to understand what extent takes for an employee to reach the people story. This measure creates hunches an org chart and their informal someone needs to collaborate to do their they need in order to do their job, both around who is ready (or pre-disposed) for collaborators. It is a good indication of the job. currently and in possible scenarios. working in an adaptable/network based type of work they should be doing. environment. Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of work How work is experienced… Copyright © 2019 Deloitte Development LLC. All rights reserved.
How work is experienced… Technology has become pivotal to everyday life except in our The world has workplaces… What work is, organisations are and changed how we want to fit them into our lives is no longer the same… The opportunity to differentiate who you are, win in the war for talent and drive productivity through great experiences is here… We’re redefining the enterprise It is time to work the way You Live Copyright © 2019 Deloitte Development LLC. All rights reserved.
Employee Experience (EX) brings and drives customer and business benefits… EX covers all interactions between an employee and the organisation encompassing the physical, digital and organisational work environment Employees are your first customers Interactions between employees and the organisation influence the levels of service workers provide to customers. We can help you Define, Imagine and Deliver a plan around the shared moments that matter across your organisation to positively impact business results Productivity Customer Satisfaction Revenue Growth Rate 25% 2x 2.3x Companies in the top quartile of employee Double the Customer Satisfaction reflected in Organisations with highly engaged experience are 25% more profitable than the net promoter score in companies able to employees experience a 3-year revenue competitors in the bottom quartile 1 build seamless and innovative employee growth rate 2.3 times greater than average experiences1 (20.1% growth vs. 8.9% growth)2 1 Building Business Value with Employee Experience, MIT Cisr Research Briefing, Vol. 17, No. 6 (2017) Copyright © 2019 Deloitte Development LLC. All rights reserved. 2 2017 Deloitte Global Human Capital Trends
The best organisations have an integrated approach to EX… User Centered Co-creation Technology Enablement People Technology Empowering and Transforming the inspiring the tools needed to workforce to create deliver & run these more value at the experiences heart of the business Collaborative Working Culture, Leadership and Ways of Working Customer Experience Works for the whole workforce Well-being at work Space Creating the right space at the right time for the right purpose, with the flexibility to adapt quickly. Flexible Working Real Estate & Facilities Strategy Copyright © 2019 Deloitte Development LLC. All rights reserved. Purpose and EVP
Where are you on the journey? We permeate our values at every touchpoint of EX and We’ve connected are recognized as a EX to business great place to work goals, measure and continually We collaborate and co- improve design with our employees and business We understand our to improve EX employee segments and We have a clear their respective needs, purpose and culture and we are focussed on improving the overall EX Copyright © 2019 Deloitte Development LLC. All rights reserved.
Our roadmap for crafting the employee experience Our employee experience approach is grounded in our observations and assessment of the current employee experience and delivers a vision of the future, an actionable roadmap and a governance model to create a sustainable framework for continuous improvement Define Priority 3 Personas Develop governance, data 1 Scan the Organization Create personas for critical employee 5 strategy & roadmap segments Review the organization and Outline the plan to operationalize and sustain the existing data envisioned employee experience Develop journey maps with 4 Moments that Matter 2 Set the Vision Depict current and future state experiences using Moments That Matter Align leadership behind the desired employee experience Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of work How work is enabled… Copyright © 2019 Deloitte Development LLC. All rights reserved.
The world is changing and the future is arriving now The Future of The Future of the The Future of Enterprise Workforce How Work Gets Done …disruptive forces are driving how we live and how we work, creating an imperative for new solutions Copyright © 2019 Deloitte Development LLC. All rights reserved.
The Future of The world is changing and the future is arriving now Enterprise What’s happening? What does it mean for your organization? Tsunami of data1 9x more in the last 2 years Average company lifespan of S&P Gain competitive Disrupt or be Invest to benefit the advantage with disrupted workforce and society 500 companies is only 15 years2 hyper-connected insights 5 10 15 People worldwide trust business more than government3 Business Government Sources: 1 https://www-01.ibm.com/software/data/bigdata/what-is-big-data.html 2 Professor Richard Foster from Yale University 3 Edelman Report Copyright © 2019 Deloitte Development LLC. All rights reserved.
The Future of The world is changing and the future is arriving now Workforce What’s happening? What does it mean for your organization? Careers are 50+ years long1 10 25 50 Millennials are more than Access talent from Cultivate diversity and Foster workforce inclusion for strength experience and 50% of workers2 the full workforce: through varied ideas rewards for employees, gig, crowd, automation and perspectives productivity & growth Half-life of skills is only 2 – 5.5 years4 Sources: 1 Annual Global Millennial Study, https://www2.Deloitte.com/uk/en/pages/about-Deloitte- 2 5.5 uk/articles/millennial-survey.html 2 https://www.newscientist.com/article/mg23130810-800-the- 100year-life-how-should-we-fund-our-lengthening-lives/ 7 Intuit 2020 Report: Twenty Trends that will Shape the next Decade https://http- download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit By 2020 40% of workforce will be contingent3 _2020_report.pdf 4 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/H umanCapital/dttl-hc-english-opentalenteconomy.pdf Copyright © 2019 Deloitte Development LLC. All rights reserved.
The Future of The world is changing and the future is arriving now How work gets done What’s happening? What does it mean for your organization? Technology is everywhere… smartphones 2 6bn+ in 20201 Reimagine work with Drive agility through Reinvent the digital teams leading teams workplace – physical and virtual – to innovate and simplify 61% 2 trillion in business value2 redesigning jobs with2 Humans and Robots It’s no longer just must become about efficiency, it’s co-workers about changing how New work gets done Sources: 1 https://www.cnbc.com/2017/01/17/6-billion-smartphones-will- be-in-circulation-in-2020-ihs-report.html AI business Robotics 2 Global Human Capital Trends 2018 models Copyright © 2019 Deloitte Development LLC. All rights reserved.
What does this mean for HR? The Future of The Future of the The Future of Enterprise Workforce How Work Gets Done Sense the community and shift to Curate an inclusive workforce with Reimagine the work across the become a social enterprise non-traditional talent enterprise and in HR with digitalization and automation Drive innovation and agility through Orchestrate the workforce experience workforce development to invigorate teaming and Leap to a fit-for-purpose HR productivity Operating Model to suit the enterprise Extend the enterprise with a partnership ecosystem Forecast future capabilities and enable Advance the workplace to enable continuous learning workforce collaboration HR must take the lead for enterprises to reimagine the future – today Copyright © 2019 Deloitte Development LLC. All rights reserved.
What is the Future of HR? ENABLERS Integrated Systems UNIFIED ENGAGEMENT PLATFORM Advanced Technology Usability PRODUCTIVITY LENS Work Redistribution EXPONENTIAL HR PROFESSIONAL High-Impact HR Operating Compliance & Control TRUST & EMPOWERMENT Model FOCUS Center-Driven Solutions HUMAN-CENTERED SOLUTIONS HR Customer Centricity HR Program & Process Design VALUE CREATION INITIATIVES Transformation to SUSTAINED PERFORMANCE MIND-SET Digital Traits and Behaviors Doing Digital Things BEING DIGITAL Copyright © 2019 Deloitte Development LLC. All rights reserved.
What is the Future of HR? Apps & PaaS Solutions Dynamic Skill Changing Nature and ENABLERS Democratized Data and Internet of Social / Mobile Requirements Typology of Work Advanced Technology Real-Time Advanced Things Workforce Analytics Fluid Iterative Unified Engagement Platform Intentional Agility Collaboration and Robotic Process LENS Automation constant disruption High-Impact HR Operating Cognitive Fail Fast but Learn Faster Model & AI Continuous Digital Reality (Augmented and Future Innovation Virtual) of HR FOCUS HR Customer Centricity Empowerment Continuous Work Reimagining Brand Business Value-Creation MIND-SET Workforce Networks of Satisfaction Digital Traits and Behaviors Experience Agile Teams Experience Workforce-Centered Engagement Personalization Design External Ecosystem Copyright © 2019 Deloitte Development LLC. All rights reserved.
Shift to the Future of HR for Business Outcomes… The Future of The Future of the The Future of Enterprise Workforce How Work Gets Done Win in the market and community… ENABLERS …reshaping culture and behavior to act with agility & collaboration Advanced Technology Delight the enterprise’s customers… LENS …accessing, curating, and engaging an innovative workforce High-Impact HR Operating Model FOCUS Empower leaders and workgroups… HR Customer Centricity ...reimagining work across roles in and outside HR MIND-SET Maximize the workforce’s potential… Digital Traits and Behaviors …gaining advantage through cognitive and digital automation Copyright © 2019 Deloitte Development LLC. All rights reserved.
There is no single path to driving value through HR… Your route will be unique to your journey See Think Do In today’s disruptive world, it may be the path less Sense Aspire Create traveled that leads you to Understand trends and Envision the future that Apply human-centered design the ultimate destination disruptors; uncover solves for the needs, and product mind-set to opportunities informed by motivations, and drivers of deliver solutions that enable your where the enterprise the workforce and enterprise your future enterprise and What will be your route? and workforce are going into access the workforce the future Engage Decide Realise Explore the possibilities for Make strategic choices to Embrace disruption to achieve your organization and refine the capabilities and value beyond efficiency and generate the case to launch enablers you want to infuse effectiveness to realize and the adventure into the organization – set sustain business outcomes the route for success Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of work Re-cap Copyright © 2019 Deloitte Development LLC. All rights reserved.
We solve workforce issues across a spectrum of transformations… IMAGINE Imagine Imagine the possibilities of the future by leveraging industry-specific data analytics and insights to define your ambition and strategy for COMPOSE transforming the workforce for the future Compose Analyse work, workforce and workplace options that maximise the value of automation, alternative talent sources, and collaborative workplaces Activate Align workforce development programs to access skills, curate next ACTIVATE generation experiences and engage the workforce of the future Copyright © 2019 Deloitte Development LLC. All rights reserved.
By integrating our collection of solutions, we can ACTIVATE your workforces Access Capabilities Engage Curate Engage Experiences for Success Branding & Acquisition Workforce Strategy Workforce Planning Rewards & Well-Being Learning & Career Mobility Curate Diversity & Inclusion Teams & Teaming ACTIVATE Performance Management Leadership & Succession Traditional Open Talent Open Access best for function-specific work Continuum best for task-specific work Copyright © 2019 Deloitte Development LLC. All rights reserved.
Future of Work lab experience What the lab offers.. What you’ll experience.. What you’ll get.. The Future of Work lab experience sets DISCOVER Immersive experience designed to get the foundation for understanding the new your leaders thinking differently drivers, realities, and implications of the Understand the implications of the future Future of Work for your business. It will of work on your business, workforce and talent Deep dive on disruptive workforce seek to answer questions like: and technology trends • What drivers are reshaping work, workforce, and workplaces? Explore workforce data relevant to client industry or function • What are the organisation, VISION leadership, and culture impacts? Introduction to Deloitte’s Align on the future vision and shape ideas proprietary Future Workforce • How can we unlock value creation on key themes to bring Planning Solution through our workforce? the vision to life • How do we create a future forward Actionable planning process to workforce strategy? establish a game plan for further progress PRIORITIZE Develop a roadmap based on strategic choices to plan out next steps and the journey ahead Copyright © 2019 Deloitte Development LLC. All rights reserved.
THANK YOU Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. The information contained herein is not intended to substitute for competent professional advice. Copyright © 2019 Deloitte Development LLC. All rights reserved.
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