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Global Human Capital
Trends 2016
The new
organization:
Different by
design
Josh Bersin
Principal, Founder
Bersin by Deloit...
Demographic
upheavals:
Millennials make up
more than half the
workforce, and Boomers
are working into their
70s and 80s.
D...
Sources: Deloitte Human Capital Trends 2014 and 2015
The overwhelmed employee
The “average” US worker now
spends 25% of th...
Productivity is suffering — is technology helping?
US productivity last ten years
1 billion
smartphones
i-Phone
launched
1...
Why skills matter so much
Shift to a service and IP-based economy
Percent rating trend important
Importance of Human Capital trends to business
Organizational design
Leadership
Culture
Eng...
Trend 1: Structure
The Rise of Teams
Organizational design
The rise of teams
say the trend
is “very important”
or “important”92%
of large companies
are organiz...
Shared values and culture
Transparent goals and
projects
Free flow of information
and feedback
People rewarded for
their s...
Historic Perspective on Performance and Goals
How	Organiza,ons	Evolve	
Startup
Create
Sell
Functional
Hierarchy
Scale
Effi...
Historic Perspective on Performance and Management
The	Evolu,on	of	Management	Thinking	
We	are	Here	
The	Industrial	
Corpo...
Trend 2: Goals
Rethinking Performance
Management
13
Only 12% of companies believe
their existing performance
management process is “worth the
time put into it.”
- Deloitte...
Goal Management
Organizations that
revise or review goals
quarterly or more are
3.5 X more likely
to score in the top
quar...
Board	of	Directors	/	CEO	
Execu,ve	Team	/	Senior	Leaders	
Business	Leaders	
Team	Managers	
Team	Leaders	
Individual	Contri...
From Cascading Goals to Aligned Goals
The	New	Model:		Local	Goals,	but	Aligned
Where Goals are Going
Goals in a Networked Organization
B
A
DCF
G
E
Goals Today
Meaningful
Culturally Aligned
Transparent
...
Trend 3: Leadership
Rewiring the Leadership
Model
Leadership awakened
Generations, teams, science
say the trend
is “very important”
or “important”89%
Need different
types o...
Percent of companies rating
leadership “important” jumped
from 87% in 2015 to 89% in
2016.
Percent of companies rating the...
Inconsistent Management Training
Content Available • No Development Process • Benefit to Employees
Level 1
Structured Lead...
8%
15%
9%
6%
13%
20%
15%
7%
Global skills and experiences in leadership
program
Leadership programs for all levels (new, m...
Essential Talent Activities
Standalone disconnected staffing, training, and performance practices
Level 1
Critical Talent ...
Trend 4: Culture & Engagement
A CEO Level Issue
Culture
Shape culture, drive strategy
Senior leaders
must work with HR
to align culture
to business goals
Culture helps
bi...
Average
3.2
What are these
companies doing?
Glassdoor ratings of employer recommendations — 200,000+ respondents
Engagemen...
Culture, value, leadership, and career (The Big Four)
The issues that matter to employees
0.00
0.12
0.13
0.22
0.28
0.30
0....
Companies with “soul” had a
1026%return from 1996 through 2006,
8x higher
than S&P 400 firms
Companies with “soul”
experie...
The Simply Irresistible Organization®
What we have learned: An Integrated Approach is Needed
Meaningful
Work
Hands-On
Mana...
Trend 5: Learning
Career Models Now Key to
Success
“Over 300 years of economic history,
the principal and most enduring
mechanism for distribution of wealth
and reduction in...
Training is key to Millennial engagement
Learning as Employment Brand
6%
6%
8%
14%
19%
22%
0% 5% 10% 15% 20% 25%
Greater v...
Back office, operational, contingent employees
Top
Management
Senior management
First line management
SMES
(Consultants)
S...
Back office, operational, contingent employees
Top
Management
Senior management
First line management
SMES
(Consultants)
S...
Changing Goals to Focus on Career
Juniper Networks Goal Model
Trend 6: Feedback
Always-On Listening
The Feedback System
How Does Feedback Work Today?
Engagement
Survey
Senior Management Team
Employees
Line Managers | HR
Pe...
How Engagement is Evolving
Enterprise “Listening” Architecture
Integrated
Reporting & Analytics
Sentiment Analysis
Network...
The context of people analytics has changed
Recruiting &
Workforce
Planning
Comp and
Benefits,
Rewards
Performance
Success...
People Analytics: Taking Off
2015 2016 % Change
Performing multi-year workforce
planning
38% 48% + 26%
Correlating people ...
Using Data to Measure Performance and Goals
42
Finally
Digital HR:
Design Thinking and New
Platforms Emerge
Benefits &
Compensation
Hiring
Recruiting
E-Learning Performance Talent
Network Based
Applications
New Systems of
Engageme...
Employee Feedback
Pulse Surveys
Wellness
Life Balance
Video Learning
MOOCs, Career Devt
Culture and
Self-Assessment
Work
P...
Design thinking comes to HR
CommonWealth Bank of Australia — Sidekick Project
GE New Performance Feedback Tool
Total Redesign for Mobile: PD@GE
The New Organization: Different by Design Goals
Meaningful
Culturally Aligned
Transparent
Agile
Developmental
Reinventing Goals for The Future
The new organization: Different by design
www.deloitte.com/hctrends
@Josh_Bersin
Goal Summit 2016: The New Organization – Different by Design
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Goal Summit 2016: The New Organization – Different by Design

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Today's digital world has radically changed the way we work. In this research-based presentation at Goal Summit 2016, the Principal and Founder of Bersin by Deloitte, Josh Bersin, reveals the latest research on what makes "the new organization" thrive. Based on research among 7,000 organizations in 130 countries, he highlights why the new organization is a "network of teams" and how culture, leadership, transparency and new models of management are critical to business success.

Publicado en: Empresariales

Goal Summit 2016: The New Organization – Different by Design

  1. 1. Global Human Capital Trends 2016 The new organization: Different by design Josh Bersin Principal, Founder Bersin by Deloitte @Josh_Bersin
  2. 2. Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s. Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done. Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change. New social contract between companies and workers: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work. Disrupting the workforce landscape
  3. 3. Sources: Deloitte Human Capital Trends 2014 and 2015 The overwhelmed employee The “average” US worker now spends 25% of their day reading or answering emails Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. More than 80% of all companies rate their business “highly complex” or “complex” for employees. The average mobile phone user checks their device 150 times a day. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week 40% of the US population believes it is impossible to succeed at work and have a balanced family life.
  4. 4. Productivity is suffering — is technology helping? US productivity last ten years 1 billion smartphones i-Phone launched 100 million Twitter users Since 2011 productivity gains have slowed to crawl
  5. 5. Why skills matter so much Shift to a service and IP-based economy
  6. 6. Percent rating trend important Importance of Human Capital trends to business Organizational design Leadership Culture Engagement 92% 89% 86% 85% Learning Design thinking Skills of HR organization People analytics Digital HR Workforce management 77% 74% 71% 84% 79% 78% % very important 2016 56% 57% 54% 48% 44% 39% 36% 36% 32% 28% % very important 2015 … 50% 50% 39% … 39% 29% … …
  7. 7. Trend 1: Structure The Rise of Teams
  8. 8. Organizational design The rise of teams say the trend is “very important” or “important”92% of large companies are organized functionally today 25%Only Shift from top- down hierarchy to a network of teams to deliver results faster are reorganizing or plan to this year feel expert at building cross-functional teams believe their companies are very ready to effectively redesign their organizations understand the way their people work together in networks 21% 14% 12% 83%
  9. 9. Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position Organizational design A network of teams B A DCF A C D E B G How things were How things “are” How things work E
  10. 10. Historic Perspective on Performance and Goals How Organiza,ons Evolve Startup Create Sell Functional Hierarchy Scale Efficiency Distributed P&L Expand Delegate Manage Federated Shared Services Consolidate Rationalize Watchdog Network Of Teams Evolve Adapt Collaborate Innovate Agile Entrepreneurial Control Grow Delegate Decentralize Coordinate Standardize Innovative Mission-Driven Agile, Shared, Fast Changing Top-Down Structured Delegated Aligned Local and Global Team-Centric Coordinated
  11. 11. Historic Perspective on Performance and Management The Evolu,on of Management Thinking We are Here The Industrial Corpora4on Hierarchical Leadership Collabora4ve Management Networks of Teams <1950s 1960s-80s Today 1990s Andrew Carnegie Henry Ford NeKlix, Google, Facebook, Amazon Jack Welch Peter Drucker Howard Schulz Steve Jobs Profit, Growth, Financial Engineering Customer Service, Employees as Leaders Mission, Purpose, Sustainability Opera4onal Efficiency 2020 Purpose, Meaning, and Empowerment? Industrial Age People as Workers Management by Objec4ve Servant Leadership Work Together Empower the Team The Corpora4on is King The Execu4ves are King The Teams and Team Leaders are Kings The People are King(s)
  12. 12. Trend 2: Goals Rethinking Performance Management
  13. 13. 13 Only 12% of companies believe their existing performance management process is “worth the time put into it.” - Deloitte Human Capital Trends 2015 Performance Management The Process is Broken
  14. 14. Goal Management Organizations that revise or review goals quarterly or more are 3.5 X more likely to score in the top quartile of business performance. More Frequent Goal Reviews Note: Based on our employee recogni,on survey, we created a business performance index (BPI1) that averages scores on employee engagement and three business-related outcomes (customer sa,sfac,on, cost structure compared to compe,tors, and market leadership posi,on). It then ranks organiza,ons on the scale. Organiza,ons that scored in the top 25 percent of the BPI are considered to have “strong” business outcomes. 16% 44% 21% 10% 9% 3% 24% 26% 31% 50% No Goal Revision Once Per Year Twice Per Year Quarterly Monthly Source: “High-Impact Performance Management Using Goals to Focus the 21st-Century Workforce,” Stacia Sherman Garr / Bersin by DeloiYe, December 2014. Improvement in Performance Based on Frequency of Goal Review
  15. 15. Board of Directors / CEO Execu,ve Team / Senior Leaders Business Leaders Team Managers Team Leaders Individual Contributors The Industrial Age Process: Top Down Cascading Goals The Old Model of Setting Goals
  16. 16. From Cascading Goals to Aligned Goals The New Model: Local Goals, but Aligned
  17. 17. Where Goals are Going Goals in a Networked Organization B A DCF G E Goals Today Meaningful Culturally Aligned Transparent Agile Developmental
  18. 18. Trend 3: Leadership Rewiring the Leadership Model
  19. 19. Leadership awakened Generations, teams, science say the trend is “very important” or “important”89% Need different types of leaders, who are effective as an individual and in teams, at all levels Initiatives to develop versatile leaders require rigorous structure backed by data have little or no investment on diversity in leadership59% have strong programs to build Millennial leaders7% have strong programs to build Global leadership13% described themselves as “strong” at succession planning throughout the business 14%
  20. 20. Percent of companies rating leadership “important” jumped from 87% in 2015 to 89% in 2016. Percent of companies rating the problem “urgent” jumped from 51% to 57% from 2015 to 2016. The problem is getting more urgent Yet progress is uneven and inconsistent 61% of companies are revamping or just revamped their leadership program in the last year and 30% are doing it this year. Yet 38% have no plans and 21% have no leadership development programs at all. Deloitte Global Human Capital Trends Leadership trends in 2016 Deloitte 2016 Human Capital Trends n=7,000
  21. 21. Inconsistent Management Training Content Available • No Development Process • Benefit to Employees Level 1 Structured Leadership Training Core Competencies • Well-Defined Curriculum • Developing Individuals Level 2 Focused Leadership Development Culture-Setting • Future-Focused • Developing Organization Level 3 Strategic Leadership Development Championed by Executives • Talent Management Integration Level 4 BersinbyDeloitte 25% 38% 28% 10% Leadership rewired Why is the leadership market so broken?
  22. 22. 8% 15% 9% 6% 13% 20% 15% 7% Global skills and experiences in leadership program Leadership programs for all levels (new, mid- level, senior) Experiential leadership programs Targeted Millennial leadership programs 2016 2015 Maturity growth in global and experiential programs, but not enough focus on Millennials (% companies who are “excellent” at these areas) Deloitte Global Human Capital Trends 2016, n=7,000 70% of Millennials tell us they are receiving no leadership development at all. Focus areas We are not building leaders fast or early enough
  23. 23. Essential Talent Activities Standalone disconnected staffing, training, and performance practices Level 1 Critical Talent Growth Critical talent segments, focus on hiring, training, performance Level 2 Managed Talent Relationships Workforce planning, development planning, leadership development integrated into talent strategy Level 3 Inclusive Talent System Talent strategies integrated with inclusion, diversity, and culture Level 4 BersinbyDeloitte 10% 19% 59% 12% The New Bersin by Deloitte Talent Management Maturity Model Source: Bersin by Deloitte, 2015. Talent management has changed Inclusion and diversity are key
  24. 24. Trend 4: Culture & Engagement A CEO Level Issue
  25. 25. Culture Shape culture, drive strategy Senior leaders must work with HR to align culture to business goals Culture helps bind people together and can drive execution and consistency say the trend is “very important” or “important”86% believe “culture is a potential competitive advantage” believe they understand their culture well today believe they have the “right culture” 28% 19% 82%
  26. 26. Average 3.2 What are these companies doing? Glassdoor ratings of employer recommendations — 200,000+ respondents Engagement remains a global challenge
  27. 27. Culture, value, leadership, and career (The Big Four) The issues that matter to employees 0.00 0.12 0.13 0.22 0.28 0.30 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Year founded (age) Compensation & benefits Work life balance Career opportunities Senior leadership Culture and values Correlation of employment factors to glassdoor recommendations as place to work Culture and leadership are 3X more important than salary in your employment brand. Career development and learning are almost 2X more important than comp, benefits, and work environment.
  28. 28. Companies with “soul” had a 1026%return from 1996 through 2006, 8x higher than S&P 400 firms Companies with “soul” experience: •  Much higher engagement and retention •  Better customer service •  Long-term profitability Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014 Importance of Mission and Purpose
  29. 29. The Simply Irresistible Organization® What we have learned: An Integrated Approach is Needed Meaningful Work Hands-On Management Fantastic Environment Growth Opportunity Trust in Leadership Autonomy Clear transparent goals Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to Fit Coaching & feedback Recognition rich culture Career growth in many paths Investment in people, trust Small Teams Leadership Development Open flexible workspace Self and formal development Transparency and communication Time for Slack Modern Performance Management Inclusive, diverse culture High impact learning culture Inspiration A Focus on Simplicity
  30. 30. Trend 5: Learning Career Models Now Key to Success
  31. 31. “Over 300 years of economic history, the principal and most enduring mechanism for distribution of wealth and reduction in inequality is the diffusion of skills and knowledge.” Why learning is so important to employees The learning curve is the earning curve
  32. 32. Training is key to Millennial engagement Learning as Employment Brand 6% 6% 8% 14% 19% 22% 0% 5% 10% 15% 20% 25% Greater vacation allowance Retirement funding Free private healthcare Cash bonuses Flexible working hours Training and development Millennials in the workforce For Millennials, “Training and development” is the most coveted job benefit Source: KPCB Percent indicating job benefit in first place
  33. 33. Back office, operational, contingent employees Top Management Senior management First line management SMES (Consultants) Senior specialists Functional specialists/front-line employees Middle management Career management The traditional view
  34. 34. Back office, operational, contingent employees Top Management Senior management First line management SMES (Consultants) Senior specialists Functional specialists/front-line employees Middle management Career management The reality Contract hire Job intern Developmental assignment Lateral promotion Stretch assignment External assignment Upward promotion Lateral assignment New assignment Part time loan New candidate New leader Exec succession
  35. 35. Changing Goals to Focus on Career Juniper Networks Goal Model
  36. 36. Trend 6: Feedback Always-On Listening
  37. 37. The Feedback System How Does Feedback Work Today? Engagement Survey Senior Management Team Employees Line Managers | HR Performance Review Filtering and Cleaning Time Per Year
  38. 38. How Engagement is Evolving Enterprise “Listening” Architecture Integrated Reporting & Analytics Sentiment Analysis Network Analysis Social Media Monitoring Job Boards & AdsEmployment Brand Customer Satisfaction Anonymous Feedback Tools Pulse Surveys Annual Survey Performance Check-ins Exit Interviews Performance Appraisals
  39. 39. The context of people analytics has changed Recruiting & Workforce Planning Comp and Benefits, Rewards Performance Succession Engagement Learning & Leadership HRMS Employee Data Engagement & Assessment + Sales Revenue Productivity Customer Retention Product Mix Accidents, Errors, and Fraud Quality Downtime Losses Groundbreaking new insights and tools for managers to make better decisions Data management, Analytics, IT, and Business Consulting Expertise + = Defining People Analytics Location, Travel, Meeting Time Organizational Network Analysis Sentiment, Heart rate, Voice+
  40. 40. People Analytics: Taking Off 2015 2016 % Change Performing multi-year workforce planning 38% 48% + 26% Correlating people data to business performance 24% 39% + 63% Correlating people data to business performance (% excellent) 5% 11% + 120% Using people data to predict business performance 28% 36% + 29% Using people data to predict performance (% excellent) 4% 9% + 125% Progress Rapidly Accelerating Deloitte Global Human Capital Trends, 2016 and 2015 Plan Correlate Predict
  41. 41. Using Data to Measure Performance and Goals 42
  42. 42. Finally Digital HR: Design Thinking and New Platforms Emerge
  43. 43. Benefits & Compensation Hiring Recruiting E-Learning Performance Talent Network Based Applications New Systems of Engagement 15 Year Evolution of HR SystemsMARKETGROWTH-ADOPTION 2 0 0 0 2 0 1 5P R O G R E S S I O N O V E R T I M E Compensation HRIS Benefits Administration Applicant Tracking Recruiting Sourcing Learning Management Workforce Management Succession Management Performance Management Integrated Talent Mgmt Analytics Tools Social Recognition Network Recruiting HRMS + Talent + Workforce Management Self-Service Apps Personality and Pre- Hire Culture Assessment Predictive Analytics Real Time Engagement Mobile Apps for HR Process Automation Integration & New Talent Apps Analytics Driven “Systems of Engagement” Apps that “Make Work Life Better”
  44. 44. Employee Feedback Pulse Surveys Wellness Life Balance Video Learning MOOCs, Career Devt Culture and Self-Assessment Work Productivity Integrated Self-Service 2016 and Beyond: A New Set of Disruptive ApplicationsMARKETGROWTH-ADOPTION 2 0 1 6 Pulse Survey NextGen Engagement Mobile Feedback Fitness Self-Tracking Location and Travel Support Culture Assessment Self-Assessment P R O G R E S S I O N O V E R T I M E Video Learning Video Sharing Gamified Onboarding Career Planning Help Desk Case Mgt Integrated Self-Service 2 0 2 0 Communications Messaging Virtual Work Management Document Management Goal Sharing Goal Tracking
  45. 45. Design thinking comes to HR
  46. 46. CommonWealth Bank of Australia — Sidekick Project
  47. 47. GE New Performance Feedback Tool Total Redesign for Mobile: PD@GE
  48. 48. The New Organization: Different by Design Goals Meaningful Culturally Aligned Transparent Agile Developmental
  49. 49. Reinventing Goals for The Future The new organization: Different by design www.deloitte.com/hctrends @Josh_Bersin

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