Truth and Lies About People and Digital - Defaultgpsadvantage.com/gealumni/presentations...•...

Michael J. Leckie Digital Industrial Learning Leader

Truth and Lies About People and Digital GE HR Alumni Conference October, 2017

For Internal Use Only – GE Confidential

“There are copyrighted images and tools in this deck that are not GE’s so please do not reproduce or share this pdf. If you would like something you can share then please reach out to Michael at michael.leckie@ge.com and he can connect you with the source. This applies to the car crash and the 21st century human and organization information and the socio-technical slides we skipped. These were created or co-created with The Leading Edge Forum, The Clarion Group, and Gartner, Inc. These are slides 18-30, 33, 35-38, and 40-45.”

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“All great truths begin as blasphemies.” -George Bernard Shaw

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Today, Tentatively

• Why Digital Industrial, Why Now, Why Us?—a GE Digital Transformation Mini-Tour

• Digital—a Small Word for a Big World; Moving Down the Spectrum of Digital

• This is Not Your Father’s Human Resources • Blowing Things Up For Fun and Profit

For Internal Use Only – GE Confidential

Why Digital, Why Now, Why GE? Digital Facing Outward

For Internal Use Only – GE Confidential

Key tenants • Multi-sided market

with a center or rules and architecture

• Open, with regulated participation

• Scales fast • Leverage the

network effect through killer applications

Critical capabilities for success • Build and manage a

common data layer • Emphasize

ecosystem community as the key asset

• Orchestrate a distributed ecosystem

• Optimize internal and external supply chains

First, the reality; platforms win the market

Platform leaders dominate market value

$582B

$556B

$452B

$364B

$359B

Today’s Top 5 Publicly Traded Companies (by market cap)

2016 Market Cap Platform

Smartphones

Search and Web

Enterprise Software

Retail and Cloud

Social Media

For Internal Use Only – GE Confidential

This is a new market with no established leader today Estimated 2025 IIoT Spend:

$600B - $1T

(a- Source: IDC for Platform, Apps, Edge/Sensors, Gartner for Consulting; 8

Consulting

Edge

Cloud Platform

Apps

• Analytics, security, platform services

• Size: $60-146B, OM: ~23%-37%. • Example: Airbus is using IBM

Watson for fuel efficiency, maintenance capabilities, & operational optimization

• Specific vertical solution applications • Size: $64-193B, OM: 40% - 90% • Example: Enel bought C3IoT’s SaaS smart

grid data analytics for reliability & operational efficiency, saving €15/meter/yr.

• Implementation, Operations, Design • Size: $401-434B OM: ~22% • Example: Hess Corp. using

Accenture consulting to transition its production applications to the cloud

• Sensors, microcontrollers, and processors

• Size: $80-315B OM: 15-40% • Example: Barrick’s is using OSIsoft

PI Connector at remote sites, to lower asset maintenance costs

The market is huge, ignore it at your peril!

For Internal Use Only – GE Confidential

What Matters with Digital Technology? Digital Facing Inward (and Across)

For Internal Use Only – GE Confidential

Digital Workforce… Intelligent Apps and Intelligent Things

2005 - 2015 2015 - 2017 Fast Emerging

Labor Arbitrage Robotics / Process Automation

Ado

ptio

n

Persona Apps & AI convergence

Sophia Diaz 4- HR SPECIALIST

Daniel Hoffman 7- FIELD SERVICE EMPLOYEE / REMOTE INDUSTRIAL EMPLOYEE

Gabrielle Lechat 11- NON EMPLOYEE

Mike Sheffield 6- PRODUCTION EMPLOYEE

Tech Driver

Role Change

Eliminate

Robotics Process Auto. Machine Learning Self Service

Enhance

Augmented Reality

Transform

Robotics & Drones Asset Performance

Create

GIG Economy Collaboration & Mobility

Impact ↑ Quality & Speed ↓ Cost of operations

↑ First Time Right ↑ Throughput

↑ Upsell opportunity ↑ Equipment Availability ↓ Cost of operations

↑ Skilled resources ↑ Equipment Availability ↓ Employees/Contractors

RPA, Self Service and Machine learning will eliminate clerical activities and manual transaction processing.

Augmented reality and wearable displays will guide and check work activities electronically.

Robots will replace workers doing dangerous and repetitive tasks such as inspection. Work scopes will be analytically determined.

External collaboration tools will widen to allow free lance workers to be part of a companies eco-system.

Off-Shore and Lean Process Automation Intelligent Process Automation (IPA)

Timing

Digital will change the workforce

For Internal Use Only – GE Confidential

Technologies to enable the future

Block Chain / Distributed Ledger

A distributed ledger is an expanding list of

cryptographically signed, irrevocable

transactional records shared by all

participants in a network

2 Years +

Augmented & Virtual Reality

A new wave of computing devices

that transform the way individuals interact

with one another and with software

systems.

Today

Sensors & Edge technology + Artificial Intelligence

Applications composed of deep learning, neural networks and natural-language processing.

Sophisticated models need more data and drive

outcomes at the edge with the goal of automating

human decision making. Today

Conversational Systems

A conversational UI is a high-level design

model in which user and machine

interactions occur mainly in the user's spoken or written natural language

Today/6 Mos.+

Collaboration & Knowledge Sharing

Tools

Collaboration & knowledge sharing

tools enable contemporary, real-

time flow and retention of

information, and shared virtual workspace for

employees to interact Today

2005 - 2015 2015 - 2017 Fast Emerging Labor Arbitrage Robotics / Process Automation

Ado

ptio

n Artificial Intelligence

The day after tomorrow is nearly here!

For Internal Use Only – GE Confidential

What Have We Learned in this Journey So Far?

For Internal Use Only – GE Confidential

Leadership Talent Digital people in digital jobs… your productive disruptors and partner them with industrial talent

Incubate the right capabilities… apply them to your biggest challenges and protect them

Culture

Lessons from our digital journey

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Need digital natives + migrants... digital migrants become your “translators”

Meaningful work matters... give employees a rallying point around purpose

Culture is the hardest part… don’t underestimate the unwritten norms of our culture

This is transformational change… not normal “CAP” change which works well for incremental change

This is not business as usual for HR!

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Why is this so hard? There are different operating principles An HR Example—Talent

Industrial GE

Managing current workforce with balanced people practices are the primary talent focus

GE [biz] priorities are the key driver (vertical focus)

GE makes the rules

Fairness is defined from within/by GE

Risk mitigation is necessary

Attrition is to be avoided

Strong track record, proven ways benchmarked by others

Digital GE

Buying, building and retaining the right talent are the primary talent focus

GE becoming the DI leader is the key driver (horizontal & vertical focus)

Market makes the rules

Fairness is defined by the market first, then GE

Risk is inherent and addressed

Attrition is necessary and expected

No track record, requires an iterative model

Incremental Change

Transformational Change

For Internal Use Only – GE Confidential

For you Make it personal, everyone comes at it from a different place – there is no magic bullet learning plan

Understand the basics, how hardware and software are different – be a digital migrant so you can be a translator

Get curious and embrace being an adaptive learner – assume it is up to you to find the answers, perpetual learning is the new normal

For your team Understand and create context, start with your products and/or function – how does or will digital change it?

Grow and build digital migrants – people that make you and your team stronger and more prepared for the future

Champion digital– so they do (they are watching you for clues on what they should)

Thoughts for leaders

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This Isn’t Just “Technologification”—Moving Down the Spectrum of Digital

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Digital Business—the creation of new business designs by blurring the digital and physical worlds

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Physical Digital

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The Digital Car Crash

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Smartphone detects sudden deceleration

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Interrogates clothing sensors for vital signs

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Sends data to first responders, opens up communication lines

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Damage report collection from vehicle

systems

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Damage reports sent: fire, police, towing,

insurance

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Estimates, IoT negotiations

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Collect video from cameras nearby

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Notify family and friends via SMS, Facebook,

others

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And of course…the lawyers!

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You have 5 minutes to come up with at least one idea

The Digital Kindergarten—Finding Digital Business Moments Everywhere

Brainstorm potential moments for the digital kindergarten—they should range from close-in to futuristic. Keep the moments simple—something you can tell the story about less than a minute Though starters: • What are the “customer” moments of truth in your kindergarten—What would get people

excited about your kindergarten?

• How can the Internet of Things play a role in the relationship you have with your customers? Can these things perform activities in the value chain not done today?

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“The role of a creative leader is not to have all the ideas; it’s to create a culture where everyone can have ideas and feel that they’re valued.” -Ken Robinson

For Internal Use Only – GE Confidential

Not Your Father’s Human Resources…

For Internal Use Only – GE Confidential

• Seeks Certainty

• Anchored in today’s paradigms

• Only invest with a solid business case

• All projects ‘green’

• Values predictability over innovation

Industrial-era Incumbent

Digital-era Market Disrupter

Thrives in Uncertainty •

Quest to master the next paradigm •

Portfolio of strategic investment bets •

OK to fail fast (and win big) •

Values speed, innovation & learning •

These worlds are colliding. HR needs to understand both!

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Toughest Obstacles to Change to a “Digital” Culture (Hint—It Ain’t About Technology, Folks) Slow or stalled decision-making caused by internal politics, competing priorities, or attempting to reach consensus. Inability to prove business value of digital through traditional ROI calculations, resulting in lack of senior management sponsorship. Too much focus on technology rather than willingness to address deep change and rethink how people work. Lack of understanding operational issues at the decision-making level and difficulties when going from theory to practice. Fear of losing control by management or central functions, and fears that employees will waste time on social platforms.

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It’s All About Transformation Acceleration—Here Are Some Examples

LEADERS DRIVING CULTURAL TRANSFORMATION

Coaching for Transformative Leadership DI Leader Capability Model

Building a Transformation Capability ITERATING ON WICKED DIGITAL BUSINESS

PROBLEMS Socio-Tech Business Model

Launch & Support Experiments—Coalition of the Willing EVENT-BASED GROUP LEARNING

In-depth Interviews and Needs Assessment Update Boot Camps 1.0 & Pilot Intact Team Boot

Camps 2.0 BUILDING A TRANSFORMATION COMMUNITY

Communication Link Across Legacy Industrial and Digital

Scaling lessons from Coaching, Experiments and Boot Camps

Digital Industrial Stories Platform DIGITAL GUIDANCE & THOUGHT LEADERSHIP Center for Evangelism (Socialization Platform)

External Network (Digital Alliance) Trends & Thought Leadership Supporting Learning Organization

Customer Transformation Support is a Big Unknown—Lots of Requests

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Technology has always been a critical enabler of the traditional operating model.

Technology

Operating Model

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Socio-Tech Operating Model

Strategy

Culture

Organizing Structures

Leadership

Digital for Industrial will put technology at the center of the operating model as a primary source of driving value.

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The new role of HR? To take a holistic view of the potential dimensions to assess and transform as the path to discovering and designing the emergent operating model

• Approach to Strategy • Consumer/Customer

Orientation • Role of Technology • Degree of Partnership • Business Performance

Metrics

• Who we are (personal values) • What we stand for (shared

beliefs) • How we act (our behaviors)

• Organization Structure • Decision-making • Talent Practices • Performance

Feedback

• Individual Leadership Behaviors

• Leadership Team Focus • Approach to Change

• Role of Technology • Technology Architecture • Product & Solution

Development

For Internal Use Only – GE Confidential

May I Suggest a Minor Adjustment?

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Blow things up!

For Internal Use Only – GE Confidential

If you knew today that your current skills and knowledge would be obsolete in 3 years,

what would you do?

For Internal Use Only – GE Confidential

Hacking (hak-ing) “an appropriate application of ingenuity—a way in to the system to make maximum impact with minimal effort .” “Hacking just means building something quickly or testing the boundaries of what can be done.” Hack your habits https://leadingedgeforum.com/advisory-service/21st-century-human/ Hack your mind The 3 Truths of the Digital Mind I can send you pdf. Let me know if you would like to receive occasional tools and publications that I find useful

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LinkedIn - linkedin.com/in/mjleckie Twitter @leckiemichaelj michael.leckie@ge.com

m +1.914.987.0037

For Internal Use Only – GE Confidential