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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 [email protected] 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!
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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!
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What Have We Learned in this Journey So Far?
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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
13
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
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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
15
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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
17
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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For Internal Use Only – GE Confidential
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?
For Internal Use Only – GE Confidential
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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 [email protected]
m +1.914.987.0037
For Internal Use Only – GE Confidential
