The Future of Work: Winning With An Agile Workforce

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Did you envision yourself in your current career, when you were 10?

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Did you envision your city?

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Did you envision your city?

Your office building?

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Your desk?

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Your commute?

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You probably didn’t envision this

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Or this

http://www.remoteyear.com/how-it-works/

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Historically, work was where

10http://www.logospike.com/company-logos-1382/

And for which company

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But work is an evolving term

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How did we get here?

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Hunter-gather groups move constantly

Prior to ~12,000BC

14http://www.regentsprep.org/regents/global/themes/change/neohttps://en.wikipedia.org/wiki/Neolithic_Revolution; .cfm; Scanned from 1000 Fragen an die Natur, via The Metropolitan Museum of Art, Rogers Fund, 1948., Public Domain, https://commons.wikimedia.org/w/index.php?curid=2959985

Permanent encampments formNeolithic Revolution ~12,000BC

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America is a nation of small, rural farms

Agrarian America (early 1600s – late 1700s)

https://www.flickr.com/photos/jjc3/8220180903

16By E.L. Hoskyn - Plate from More Pictures of British History, London, 1914, p.61. Publisher: London. Adam and Charles Black. 1914, Public Domain, https://commons.wikimedia.org/w/index.php?curid=8386342

Farms factories

Industrial Revolution (late 1700s – early 1800s)

17http://www.autoguide.com/auto-news/2010/09/model-t-plant-to-become-a-museum.html

Factories more, bigger, more efficient factories

2nd Industrial Revolution (late 1800s – early 1900s)

18By The Opte Project - Originally from the English Wikipedia; description page is/was here., CC BY 2.5, https://commons.wikimedia.org/w/index.php?curid=1538544

Mechanical digital

3rd Industrial Revolution (2nd half 1900s)

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The way we work evolves for decades and centuries

…until brief but explosive periods of change

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Is the 4th Industrial Revolution underway?

21https://www.mbopartners.com/uploads/files/state-of-independence-reports/2016_MBO_Partners_State_of_Independence_Report.pdf

For millions today, and more tomorrow, work is changing

2015 2021

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# Americans working independently(Millions)

Option 1

22US census; https://www.mbopartners.com/uploads/files/state-of-independence-reports/2016_MBO_Partners_State_of_Independence_Report.pdf

For millions today, and more tomorrow, work is changing

Independent work accelerating

Option 2

Individual proprietorships added, ’04-14

4M

Americans working independently, ’15-21

5M

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The “gig” economy has grown exponentially

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The lifetime “company man” ideal has gone by the wayside. For whom we work...

How we source work…

Where we work…

For how long we work…

…are all changing.

Intuit. Twenty Trends That Will Shape The Next Decade. Mountain View, CA. 2010.

“The brick & mortar office will be a thing of the past…work will increasingly shift…toward an in-my-own place, and on-my-own-time regiment.” – Intuit

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https://www.weforum.org/agenda/2016/02/the-future-of-work/.

“New technologies are enabling…remote working, co-working spaces and teleconferencing. Organizations are likely to have an ever-smaller pool of core full-time employees.” – World Economic Forum

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https://www.microsoft.com/mscorp/execmail/2005/05-19newworldofwork.mspxLeopold, Till Alexander, Vesselina Ratcheva, Saadia Zahidi. Future of Jobs. World Economic Forum. 2016

“…a generation of young people who grew up with the Internet is entering the workforce, bringing along workstyles and technologies that feel as natural to them as pen and paper.” – Bill Gates

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Why?

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Let’s consider four topicsWorkforce1

Employment landscape2

Other aids4

Technology enablement3

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The workforce today is more educated

of the workforce has at least a bachelor’s degree versus 27% twenty years ago

39%

US census; 25 and older; Aug 2016 versus Aug 1996

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The workforce today is less unionized

of employed workers are union members versus 18% thirty years ago11%

US census; 2015 versus 1985

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The workforce today is more ‘Millennial’

of the workforce is from the Millennial generation34%

http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/ (data is 1Q2015); US census

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Millennials think about their careers differently

Expect to see themselves at their current job a decade from now16%

Would like more opportunities to work remotely75%

Feel confident and in control of their career paths77%

The Deloitte Millennial Survey 2016

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WORKFORCE

Millennials work and communicate differently

MBO partners; http://www.wsj.com/articles/millennials-prefer-single-family-homes-in-the-suburbs-1421896797; kpcb.com/InternetTrends; http://www.forbes.com/sites/neilhowe/2015/07/15/why-millennials-are-texting-more-and-talking-less/#75da08015576

More open to unconventional career paths and independent work

Attracted to autonomy and control

Want to communicate via social media or email

Text ~2.5x as much as Baby Boomers

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Like father like son? A tale of two careers

• Born mid-50s• Massachusetts public high

school• BS in business from New England liberal arts college

• 37 years and counting at commercial bank

• Born early-80s• Massachusetts public high

school• BA in economics from New England liberal arts college

• 4 years investing (2 companies)• Masters degree

• 1 year (overseas) at multi-national company

• 3 years at large consulting firm• 6 months and counting starting

business and independent consulting (via Catalant platform)

Father Son

36US census, current data is 2015; data represents December of each year (seasonally adjusted)

Employment above long-term avgUnemployment for the total workforce, below the

40-year average (6%)5%

Unemployment rate for workforce participants ages 20-24, below the 40-year avg (10%) and significantly below recession-driven 16% reached in 2009

9%

37US census

Manufacturing service-oriented industries

Jobs lost in manufacturing

Jobs added in education & health serv., prof. & biz services, and hospitality

23%

35%

Job movement, 2000 - 2015

38US census, Aug 1996 and 2016

Worker manager

Jobs lost from ‘sales and office’ and ‘production,

transportation, and material moving’

Jobs added to ‘management and

professional’11%

41%

Job movement, 1996 - 2016

39Source: Manyika, James, Susan Lund, Byron Auguste and Sreenivas Ramaswamy. Help wanted: The future of work in advanced economies. McKinsey Global Institute. 2012.

“By 2020, the United States may have 1.5 million too few workers with college or graduate degrees and nearly 6 million too many who have not completed high school” – McKinsey Global Institute

40KPCB.com/internettrends; https://commons.wikimedia.org/wiki/File:Carnabotnet_geovideo_lowres.gif

~Ubiquitous global internet…

billion internet users, 42% of global population3

41KPCB.com/internettrends; https://commons.wikimedia.org/wiki/File:Carnabotnet_geovideo_lowres.gif

…and ~ubiquitous smart phone

billion smart phone users, more than 5x penetration in 2010

2.5

42Comscore

Even more so in the USmillion smart phone users, 80% of all cell phones200

43http://fortune.com/2016/08/04/america-internet-speed-spikes/

Internet speeds are fast…

Mbps --- average download speed on broadband in the US in June 2016, up 42% Y-o-Y55

Mbps --- avg download speed on mobile, up 33% Y-o-Y20

44Fortune.com

…and getting faster…Gbps --- expected top download speed on 5G mobile networks1

45Akamai State of the Internet 1Q2016

…everywhereCountries with faster average connection speeds than the US14

46By Fuelrefuel - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=5146472; https://www.skype.com/en/meetings/; https://blogs.skype.com/2016/04/28/over-1-billion-skype-mobile-downloads-thank-you/

Video calls available to everyone

billion Skype downloads, as of 4/161

From:

To:

47KPBC; By Victorgrigas - Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=20348454

Storage way up10 billion

petabytes of data in the digital universe, growing 50% p.a.

~$0.06 per GB of storage, falling 20% per annum

Storage costs way down

48https://www.cnet.com/how-to/onedrive-dropbox-google-drive-and-box-which-cloud-storage-service-is-right-for-you/

Secure cloud storage and file sharing available to all Gigabytes of free storage

15 10 5 2

49http://www.naiop.org/en/Magazine/2015/Winter-2015-2016/Development-Ownership/The-Future-of-Shared-Office-Space.aspx; https://blog.coworkworldwide.com/2016/01/26/the-global-coworking-survey-20152016/; http://coworkworldwide.com/top-coworking-spaces-world

Coworking space expanding rapidly

Number of coworking spaces globally

20132005 2016

3,00017,800

50https://www.dol.gov/sites/default/files/ebsa/researchers/statistics/retirement-bulletins/historicaltables.pdf

Traditional pensions a thing of the past

# of private defined-benefit pensions

1983 2013

175k 44k

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Workers no longer reliant upon employer-sponsored healthcare healthcare.gov

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What’s changed so far?Education digitizing1

Remote work increasing2

HR teams changing approach4

Gig economy ‘mainstreamed’3

53Number represent fall of each year; 2002 number estimated; http://onlinelearningconsortium.org/read/online-report-card-tracking-online-education-united-states-2015/

Online education continues to grow

2002 20141.2

5.8

# of higher education students enrolled in at least one online course(Millions)

28% of all enrolled students

54https://2u.com/impact/impact-report-2016/individual/

Case study: 2U. “We power the world’s best online degree programs”

students enrolled since inception in 2008, with 83% retention21,000

faculty members at 14 university partners, including 6 of the top 251,000

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Remote working: rare common

https://www.entrepreneur.com/article/270585; Gallup poll

1996 20159%

37%

Workers that have worked remotely

56Remoteyear.com

Case study: Remote Year. “Travel the world while working remotely”

applications per day to enroll in the program2,000

http://nextjuggernaut.com/blog/on-demand-economy-survey-stats-future-economy-funding-trends-on-demand-startups/; MeasuringGigEconomy_1609.pdf staffingindustry.com 57

The on-demand economy is the new norm

of US workers did gig work in 2015 29%

of US adults have used at least one on-demand startup42%

58Gocatalant.com

Case study: Catalant. “Changing the way knowledge is discovered and talent is harnessed”consultants on the platform, growing

organically 500 per week31,000

Fortune 1,000 clients and several hundred SMBs100+

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“home-working will no longer be defined as a Friday luxury, but a more efficient way to work enabled by technology, taking the physical strain from megacities and regionalising work locations.” - World Economic Forum

Employers are responding with a range of remote and flexible jobs

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Where has the impact been felt?

61sf.eater.com

Task-oriented work

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Travel & transportation

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Tech: engineers, developers, designers, product managers

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Consulting

“we are seeing the beginnings of a shift in consulting’s competitive dynamic from the primacy of integrated solution shops…to modular providers…The shift is generally triggered when customer realize that they are paying too much for features they don’t value.” – Harvard Business Review

HBR: Consulting on the Cusp of Disruption

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Legal

“The legal market has historically lacked transparency, making it difficult for us to deviate from using incumbent, brand-name law firms…Things are changing now.”

HBR: Consulting on the Cusp of Disruption

“AdvanceLaw survey of general counsel found that 52% agree (and only 28% disagree) with the statement that general counsel “will make greater use of temporary contract attorneys,” and 79% agree that “unbundling of legal services…will rise.” – Harvard Business Review

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Where else?

Shifting consulting budgets, decreasing staff, changing HR strategy

Large companies

Access to resources not previously available at affordable ratesSMBs

Automation and robotics reducing labor demand

Manufact-uring

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Where are we going?[a few guesses]

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Smaller FTE core

Lower need for physical space and associated costsReal estate

Ongoing and increased need for investing in and/or managing technology that enables remote work

Technology

Newly emphasized skill set in sourcing short-term talent; HR evolves and becomes even more important

HR

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Changing competition for talent

Shorter average tenure requires more-frequent talent acquisition and competition

“As many as 230 million [globally] could find new jobs more quickly [by 2025], reducing the duration of unemployment, while 200 million who are inactive or employed part time could gain additional hours through freelance platforms.” – McKinsey Global Institute

Companies compete both with each other and with ‘going independent’ for FTEs

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More nimble and versatile career paths

“Millennials will likely continue to seek out independent work in greater numbers. In addition to being attracted to the freedom, autonomy and control it provides, they see independent work as a viable career path.” – MBO Partners, State of Independencein America

Typical promotion path dies in favor of more flexibility within (and outside of) organizations

Source: MBO Partners. America’s Independents A Rising Economic Force– 2016 State of Independence in America. Herndon, VA: MBO Partners, 2016

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What remains to be solved?[a lot]

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How will we train the next generation of workers and leaders… …if they aren’t showing up

in the office to do trust falls?

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How will leaders cultivate corporate culture…

…when employees aren’t together 40 hours per

week?

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How will our system of external validation evolve to ensure career and salary progression…

…if more and more people work independently?

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How will companies provide benefits and incentives…

…if “employee” becomes a more-fluid

term?

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What will we do with all that office space?

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Let’s sum it up

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We are living in a golden age

The next period of massive change

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Where there is massive change…

…there is massive opportunity

 

A collective vision of what a company looks like embracing the Future of Work • The organization ‘wins’ by efficiently accessing, engaging and deploying the best capability in the world, no

matter where it sits

• Projects are the core unit of work and team members are measured, incentivized and reviewed based on

specific performance

• There is no longer a distinction between ‘our employees’ and ‘talent’ we access dynamically, inside and outside

of our company

• HR’s focus expands beyond talent ‘acquisition’ to constantly engaging and re-engaging unique talent in the

most efficient way

• The company strives constantly to be the engager of choice and not just great to work at, but also great to work

with

• People are matched with projects based on talent AND passion, creating special and consistent mission and

purpose

• Retention isn’t about securing FTEs – it’s about engaging and supporting talent throughout its career journey

Key organization changes required to achieve our vision

Planning /Budgeting

HumanResources

Legal /Procurement

Culture / Behaviors

InternalTraining

• Design our budgeting process to shift from headcount to cost orientation; match funding to support specific “jobs to be done”

• Train managers on how to scope and select skills required for a need, and accurately diagnose when outside help makes sense

• Develop the ability and competency to give real-time, project-based feedback to people who we may never meet in person

• Develop mechanisms to keep external talent aligned with long-term project success

• Partner with our legal teams to help them understand how to ensure compliance while engaging with external help

• Develop process to provide external team members access while protecting intellectual property of the company

• Re-align on-boarding and off-boarding to support specific projects but still create understanding of the mission and culture

• Ensure external team members fit with social norms (or whether they don’t, when we’re looking for someone to disrupt our normal way of operating)

• Focus leadership training on leading teams that may be remote and consist of both employees and external team members

• Enable teams to organize and form with clear roles and responsibilities, dynamically and quickly

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For more information visit:

www.gocatalant.com

617-997-6734280 Summer St. | Boston, MA