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The Future of WorkMike Theaker, Global Executive Advisor, HR Strategy & TransformationIstanbul, October [email protected], @TheakerMike
Are you ready for the future of work? The nature of work is radically changing, driven by:
Business leaders must take action to prepare their organization and adapt to this shifting environment.
• Transition to knowledge-based economies• Increasing pressure for innovation• Dynamic workforce and technology shifts
A convergence of forces is pushing businesses to change the way they work
Let’s consider each force and its impact on the future of work.
Technological change
Accelerating globalization
Shifting demographics
Focus on employee engagement
Driving the need to radically simplify the business
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4Internal
Technological change The expanding reach of computing, mobile, cloud, and connected technologies is rapidly changing the way we live and work.
Average time Americans spend daily on social media1
40 minutes
The IoT Market by 20203
600 billion
Number of active Facebook users2
1.39 billion
Number of worldwide mobile devices that are smart devices4
54% in 2018
88% in 2013
96% in 2018Mobile data traffic originating from smart devices5
1. “The Average American Spends 40 Minutes a Day on Facebook,” NBC News, July 24, 2014. 2. Facebook Newsroom, December 31, 2014.3. “The Internet of Everything: 2015,” Business Insider, 2014.4. “Cisco VNI Global Mobile Data Forecast Update (2013 – 2018),” Cisco, February 5, 2014.5. Ibid.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
21% in 2013
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5Internal
Accelerating globalizationWork is no longer local – it extends across countries, time zones, and cultures.
6. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.7. Pedro Olinto, et. al., “The State of the Poor: Where Are The Poor, Where Is Extreme Poverty Harder to End, and What Is the Current Profile of the World’s Poor?, ” The World Bank, October 2013.
Size of Asia’s middle class by 2020, triple that of 20096
1.7billion
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
in 19907
43.1%20.6%Global rate of extreme
poverty in 2013down from
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6Internal
Shifting demographics The makeup of the workforce is changing in a variety of ways – and these shifts impact best practices for organizations.
8. “Millennials: Breaking the Myths,” The Nielsen Co., January 27, 20149. “Gen Y Women in the Workplace,” BPW Foundation.10. Christopher J. Dwyer, “The Future of Contingent Workforce Management Webinar Recap,” DCR Workforce Blog, January 5, 2015.11. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.
Millennials will comprise
75%of the global workforce by 20259
of the world’s workforce will be contingent workers by the end of 201710
45%Nearly
people are entering the middle class for the first time.10
5 billionApproximately
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
Millennials represent
24%of the U.S. population8
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7Internal
Focus on employee engagement Employees who feel involved and committed to their jobs are more likely to drive business innovation, growth, and revenue.
12. “State of the American Workplace,” Gallup. 2013.
Yet, only
13%of employees
worldwide are actively
Keeping your workforce engaged is critical for business growth and success.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
engaged in work12
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8Internal
How can companies meet these challenges and prepare themselves for the future of work?
It’s time to radically simplify the business.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9Internal
Create a foundation for simplification Foundation
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10Internal
Make business trends work to your advantageBusiness trends
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11Internal
Emergence of the social business
Social applications, social analytics, and collaboration networks
How do you put people at the center of your business strategy and use technology to unleash
the power of their connections to simplify?
Social business
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12Internal
Use social working styles to
13. “Workforce 2020,” Oxford Economics, sponsored by SAP, 2014.
Apply your workers’ social skills to business situations
Connect to customers through social collaboration platforms
Social business
your business
simplify
40%of employees say their company makes it easy for them to collaborate13
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13Internal
Development of the connected workplace
Workplace connection and simplification strategy
How do connections and networks enable people to simplify?
Connected workplace
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14Internal
Create humanized connections among workers, regardless of location
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Connected workplace
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 15Internal
Setting the stage for change
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16Internal
Simplify and leadLeadership is the key to simplification. Simplification
and leadership
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17Internal
Match executive action to intention
51%
14. “Simplifying the Future of Work Study,” Knowledge@Wharton, sponsored by SAP, 2014.
Simplification and leadership
of surveyed business leaders believe business simplification is of significant strategic importance today14
74% say business process complexity and decision-making complexity have inhibited the business’ ability to meet goals14
Yet, only 27% believe the day-to-day actions of senior leaders are strongly aligned with the stated importance of business simplification14
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18Internal
Apply metrics and incentivesEstablishing appropriate measures helps employees work toward simplification goals.
People aligned to simplificationAre you rewarding complexity or simplification?
Metrics and incentives
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19Internal
Metrics and incentives
that add to complexity
Identify conflicting
metrics Each part of the organization must collaborate to create effective metrics and incentives.
Warehouse goal: Reduce overtime
Shipping goal: 100% on-time shipments
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 20Internal
Scrutinize the organization and ecosystem of talentEvaluate your organizational structure and talent ecosystem: Do processes and designs encourage simplicity or complexity?
Talent ecosystems that simplifyDoes your organization structure and ecosystem increase or decrease complexity?
Organization and ecosystem
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 21Internal
Organization and ecosystem
Assess how the organizational structure and talent ecosystem reflect your simplification goals
Organizational model:• Do structures motivate complexity?• Are there heavily matrixed designs?• Are there redundant organizations?• Do processes cross boundaries?
Key questions
Talent ecosystem:• Are only employees focused on simplification? • Are there simplification goals and metrics for contingent workers? • Are outsourcing partners included in simplification initiatives?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22Internal
Engage the ecosystem of talentCreate a culture of simplification that encourages engagement.
Culture of simplificationDoes your organization use trust,
engagement, and diversity to create a culture of simplification?
Engagement
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23Internal
Engagement
Build on qualities that promote engagement
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23
Engagement
Diversity Trust
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 24Internal
Support knowledge networksEnable people to access the information they need to support simplification.
Simplified ecosystem of knowledgeIs your talent ecosystem learning the skills and methodologies of simplification?
Knowledge networks
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25Internal
Knowledge networks
Create knowledge networks that support simplification
15. “Simplifying the Future of Work Study,” Knowledge@Wharton, sponsored by SAP, 2014.
17%of leaders access information through self-service tools to support quicker decision making today14
45%of respondents believe leaders will have access to all information through self-service tools in the next three years15
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 26Internal
Simplified ecosystem of knowledgeIs your talent ecosystem learning the skills and methodologies of simplification?
People aligned to simplificationAre you rewarding complexity or simplification?
Workplace connection and simplification strategy
How do connections and networks enable people to simplify?
Social applications, Social analytics, and collaboration networks
How do you put people at the center of your business strategy and use technology to unleash
the power of their connections to simplify?
Talent ecosystems that simplifyDoes your organization structure and ecosystem increase or decrease complexity?
Culture of simplificationDoes your organization use trust,
engagement, and diversity to create a culture of simplification?
The future of work
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 27Internal
How can SAP help you prepare for the
SAP understands critical trends – such as cloud computing, enterprise mobility, Big Data, and analytics – that are shaping the workplace of the future. We are investing in the technologies you need, now and in the future, that will help you run simply.
future of work?
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28Internal
For more information about the future of work, visit us at www.sap.com/futureofwork or join the conversation with #FutureOfWork.
Learn more
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Contact information:
Mike TheakerGlobal Executive Advisor, HR Strategy & [email protected]