Leading the Change: Digital Transformation & The Workforce of the Future

Chris Chu

Managing Director, Accenture Strategy

Talent & Organization Practice

AGENDA

Time Topic

10 Minutes Introduction & Context

30 Minutes Defining Digital Transformation & the Workforce of the Future

• How does Digital disrupt the work, workforce, organizations and

business leaders?

• What is the Workforce of the Future?

• What are some tools and actions to manage the change to the

future?

5 Minutes Wrap Up and General Q&A

45 Minutes Estimated Total

Introduction & Context

Polarizing Demographic Shifts will Continue to Change the Makeup of Workforces Globally

Gen Z is entering the workforce as the post-9/11 generation raised during the 2008 financial crisis.

By 2025, Millennials will be 75 percent of the US workforce.

The last two census show US population change from 281M to 308M; all of the 27M is accounted for in urban areas or urban clusters

Digital is driving both disruption and opportunity for those without a 4 year college degree.

More older Americans are working and working more. The number of Americans in the workforce ages 65 and older grew from about 4 million people to nearly 9 million people—almost one fifth of the demographic—between 2000 and 2016.

What do we mean by Digital Workforce Transformation …

Digital generation entering the workforce

Exponential growth in

computing power

Digitization of just about everything (Robotics, AI and Machine Learning

Explosion of connected

devices and social media

Rise of real-time analytics and big data

The rise of start-ups disrupting traditional

industries (e.g. platform economy)

Developments in scientific research on human

behaviors, neuroscience and habits

Point of View … “It’s all about Augmentation”While much of the commentary around the impact of technology on the workforce is negative….

…our response is digital will create a more humanized experience at work.

Digital means automation and therefore lost jobs

A relentless drive for efficiency ignores the human interactions

technology may actually be making us dumber

61% of young adults feel that technology is dehumanizing

Digital breaks us free from traditional, rigidly defined jobs and the organization of work

Digital enriches and radically augments work – brain and brawn

Digital democratizes the workforce

Digital leaders encourage experimentation and integrate diverse talent

Organizations need to focus on the things that AI and humans do best together …

THEMISSING MIDDLE

Humans + Machines Machines + Humans

train

explain

sustain

amplify

interact

embody

WHAT HUMANS DO BEST

leadimprovisecreatejudgeempathize

WHAT MACHINESDO BEST

transactiteratepredictevolve

New jobs will likely be created (and already created)Drone Driver

Digital Reputation Consultant

Augmented Reality Architect

Chief Experience Officer

Digital Archeologist

Personal Bot MechanicTelesurgeon

NarrowcasterFuture roles

How does Digital disrupt the

work, workforce,

organizations and business

leaders?

How is Digital changing the work and in turn the workforce?

Changing workforce

dynamics

• Project-based work

• Increased competition

• Collaboration beyond

organizations

Constant connection to

work and life

• Social collaboration

• Productivity analytics and

wearables

• Anytime, anywhere, any place

Customization of

everything

• Personalized and differentiated

experiences

• Liquid expectations

• Increased desire for

transparency

THE NATURE

OF WORK IS

CHANGING

WORK AND

LIFE ARE

CONVERGING

FOCUS ON

EXPERIENCES

The nature of work, the workplace and the workforce are all changing...driving the need to

think differently about how to attract and retain the right talent

The Case for Change is critical …

CHANGES TO THE WORKFORCE ARE A RESULT OF CHANGES TO BOTH TECHNOLOGY AND WORKER CHARACTERISTICS.

What are organizations doing?

63%of business leaders expect a net gain in jobs from using AI in the next 3 years1

79%of execs surveyed agreed the future of work will be based more on specific projects than roles2

43%of the US workforce is expected to consist of freelancers by 20203

82%of employees say they expect digital to transform their work in the next three years4

Organizations recognize the benefits of digital, but are not doing enough to capitalize on it.

What is the workforce telling us?

85% 92%

64% 67%

84%

56%

Workers are aware of changes

and ready to build new skills

said they would invest

time to learning new skills

said they are excited

about the change digital

will bring to their work87% 63%

expect the next generation

of workers will work

differently

are ‘downright’ optimistic,

projecting digital will

improve work experiences

say they expect to stay

with their current employer

5 years of less

of Millennials say they will

stay with their current

employer for 5 years of les

recognize that the pace of

change is accelerating

of workers want to pursue

self-employment or

freelance opportunities in

the future

Workers expectations are

changingWorkers recognize the

changes occurring and are

optimistic

71%of employees are

proactively learning new

skills

What are the priorities for business leaders?

THREE ACTIONS WILL HELP LEADERS NAVIGATE AND SHAPE THE FUTURE WORKFORCE

Accelerate Re-Skilling People

• Reskill top to bottom: Preparing the workforce for

digital must include even the highest echelons of the

organization.

• Keep building on what you have: Upskill your

existing workforce to fill skill gaps and take on new

roles.

• Adopt a “learning as a way of life” mindset: Shift

from point-specific training to lifelong learning.

• Use digital to learn digital: Digital tools can be

paired to workers’ learning styles, circumstances and

environments.

WHAT TO DO FOR TOMORROW, TODAYRESEARCH FINDINGS

• 85% of workers are ready to invest their free time in the next

six months to learn new skills

• 84% of workers surveyed are excited about the impact of

digital on their job; 66% believe digital technologies will

improve the quality of their work

• Accenture research suggests doubling the pace of learning

can dramatically reduce the share of jobs at risk of being fully

automated to less than 6% in the UK, 10% in Germany and

4% in the United States by 2035

Accelerate Re-Skilling People

• Reskill top to bottom: Preparing the workforce for

digital must include even the highest echelons of the

organization.

• Keep building on what you have: Upskill your

existing workforce to fill skill gaps and take on new

roles.

• Adopt a “learning as a way of life” mindset: Shift

from point-specific training to lifelong learning.

• Use digital to learn digital: Digital tools can be

paired to workers’ learning styles, circumstances and

environments.

WHAT TO DO FOR TOMORROW, TODAYRESEARCH FINDINGS

• 85% of workers are ready to invest their free time in the next

six months to learn new skills

• 84% of workers surveyed are excited about the impact of

digital on their job; 66% believe digital technologies will

improve the quality of their work

• Accenture research suggests doubling the pace of learning

can dramatically reduce the share of jobs at risk of being fully

automated to less than 6% in the UK, 10% in Germany and

4% in the United States by 2035

Redesign Work to Unlock Human Potential

• Create a more flexible workforce model: People

want project-based, gig-like work and your business

needs it to remain competitive.

• Embrace more collaborative work: Provide more

autonomy to encourage experimentation.

• Enable change through platforms & ecosystems:

Meet the needs of individuals and create a

community through a range of services: training,

coaching, feedback and access to new roles and

projects.

• Tap into boomers: Wisdom workers and recently

retired executives can help coach talent coming up

through the ranks.

WHAT TO DO FOR TOMORROW, TODAYRESEARCH FINDINGS

• The Accenture Worker Values Index reveals that emotional

factors – well-being, status and engagement – are more

important motivators than rational factors–income and benefits

• 67% of workers surveyed want to pursue self-employment or

freelance opportunities in the future

• Over two-thirds of workers expect some automation.

Millennials and individuals in emerging countries expect more

significant changes than other segments

Strengthen the Talent Pipeline from the Source

WHAT TO DO FOR TOMORROW, TODAY

• Foster national and cross-border programs —

Public-private partnerships can help address

reskilling at its root cause.

• Bring personal influence to bear on industry

groups — By banding together, companies can

wield greater influence toward shaping the future

workforce.

• Collaborate with academia — Work with the

education sector to design curricula that develop

relevant skills at the beginning of the talent supply

chain.

RESEARCH FINDINGS

• Changes brought about by the Fourth Industrial Revolution

are widening the global talent shortage. A gap that will only

worsen as advances in technology further increase existing

talent mismatches

• Accenture Research analysis of O*NET data from 2011 to

2014 reveals a rise in demand for uniquely human skills:

creativity, critical thinking and empathy

What is the Workforce of the

Future?

What’s in store for Work 4.0?

What does the workforce of the future look like?

TOP 5 skills on

were invented in the

last

5 YEARS

45%

of people in

2025 will

be on a contractor

model

Digital acumen

Lifelong

Learning

New

Competencies

Capability FlexibilityLiquidity

What are the future skills?

Capacity for Reinvention

New Capability Considerations for Leading the Workforce of the Future

Collaboration Skills

Digital Savvy High Adaptability

Analytically Minded Heightened Self-Awareness

Ability to Move at Pace Fostering Creativity

Human Centered Experience & Design Driven

As automation becomes more prevalent, different skill sets and capabilities will be needed from front-line employees, managers, and leaders

… social and cognitive skills are becoming more important

Transversal competencies are of growing importance –

“machines” increasingly augment human labor

Source: Accenture Research analysis

101.25

99.50

97.75

96.0

103,00

20142012

SK

ILL i

mp

ort

an

ce

(2

01

1=1

00

)

2016 2018

Leadership

Routine activities

Manual operationsSocial intelligence Creativity

Analytical skills

Leadership

• Influencing people

• Teaching people

• Programming

• Real time discussions

• Advising people

• Negotiating with people

• Cooperating with co-workers

“RUN WITH THE MACHINE” COMPETENCIES

Examples:

“Run with the machine” competencies are mainly in the

social and cognitive skill domain

Is automation a threat to your workforce? or their greatest new partner?

• Human workers that teach AI systems

how they should perform

• Enabling AI algorithms to mimic human

behavior

• They keep the humanity in the

interactions with customers

• The bridge-builders between

technologists and business leaders

• Provide clarity between the two

languages of AI and business need

• Main collectors for feedback and

improvements

• Assures AI systems are operating as

designed

• Address and remedy any concerns or

unintended consequences of the

systems

• Keeping ethics and data concerns at

the forefront

Trainers Explainers Sustainers

• It is well understood that as automation / artificial intelligence matures, it will displace jobs in many capacities.

• However, our research with over 1,000 large organizations has found that there is a unique emergence of new, uniquely

human jobs.

• These jobs are not replacing old ones, they are novel and require skills and training that have no precedents.

• These jobs are falling into three large categories:

What are some tools and

actions to manage the change

to the future?

Big Bets on building tomorrow’s workforce today …

Reimagine the WORKFORCE

Expand the definition of talent to include AI and adaptive talent pools

from both internal and external sources

Reimagine the WORK

Prepare the workforce for the digital future by reskilling and upskilling talent through continuous learning and by redefining how work “gets done”

Reimagine the ENABLERS

PREDICTIVE ANALYTICS – Use advanced analytics to predict workforce needs

LEADERS OF TOMORROW – Empower leaders who understand the importance of pivoting to the new and equip them with tools to drive change

OPERATING MODEL – Shift to a future state structure that enables the organization to reimagine the work and workforce

… Re-Imagine the Workforce

TASK-BASEDWORK

ROLE-BASEDWORK

INTEGRATED CORPORATIONS PURE OPEN MARKETPLACES

EXTERNAL TALENT

NETWORK(Privately managed

online talent market;

contractors)

PUBLIC CROWD

FREELANCE WORKERS

INTERNAL ON-DEMAND

TALENTPOOL

HIGH-COMMITMENT LIQUID WORKFORCE

(Full-time employees and part-time employees)

AUTOMATION

FIXED-ROLE, CORE TEAM

(Full-time employment)

Organizations are moving toward more adaptive/liquid models, leveraging their internal workforce in more organic ways and accessing new external workforce marketplaces.

… Re-Imagine the Work

The new workforce expects

digitally-enabled and hyper-

personalized talent

development experiences.

THE LEARNER EXPERIENCE

Job AidsPerformance

Support

KM System

Wikis &Blogs

Simulations &Serious Games

Ask theCommunity

VideoPodcasting

Job Shadowing& Pairing

Apps

Action LearningExperts Network

Forums /Communitties

Coaching &Mentoring

Accreditation

ILTeLearning &V-classroom

Digital disruption is shifting experience from “go away and learn” to “learn on the go”.

… Re-Imagine the Enablers using Predictive Analytics / Insights

Use digital tools to manage complex change with predictive insight.

Transformation GPS

… Re-Imagine the Enablers using Predictive Analytics / Insights

Evolving the future workforce requires the right insights about where and how to build, buy, borrow and bot.

CURRENT WORKFORCE

Understand where you are today

FUTURE WORKFORCE

Create scenarios and plan whereyou want to be tomorrow

OPTIMAL WORKFORCE MIXAUTOMATION + ADAPTIVE WORKFORCE ADVISOR

Source: Accenture Organizational Insights, 2017

EXAMPLE ROLE MIX

UP TO: (AI/ROBOTS) TECHNOLOGY

HUMAN

DATA SCIENTISTS 40% 60%

IT MANAGERS60% 40%

IT BUSINESS ANALYSTS 40% 60%

Source: Accenture Organizational Insights, 2017

Getting Started

• How will the future workforce grow my business?

• What is the impact of business transformation on our organization and how do we address it?

• As automation/AI disrupt our business, how do we pivot the workforce?

• How do we free up capital to invest in innovation? In growth?

• How do we equip today’s leaders to lead the future workforce?

• How will the future of work deliver value to my customers and employees?

BUSINESS PERSPECTIVE

• What talent do we need to enable our business transformation?

• How do we develop a workforce strategy that puts people first?

• Which future capabilities do we build, borrow, buy or bot?

• How will automation/AI impact my workforce strategy?

• Where do we need to reskill/upskill workforces?

• Where do we use technology to augment work to enable workers to focus on what they do best?

• How do we use an adaptive workforce to drive organizational agility?

PEOPLE PERSPECTIVE

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Wrap Up & General Q&A