Managing Talent: A Changing Workforce . . . and a Changing ... · Changing Metrics • Although...

1 | © 2017 Tammy Erickson. All Rights Reserved.

The Future of Talent

Tammy Erickson Professor, London Business School 2 May 2017

Managing Talent: A Changing Workforce . . . and a Changing World

NFI Industries Annual Customer Advisory Board


Understanding Future Talent

Capabilities of Technology

Nature of the Population

Type of Work


Source: U.S. Census Bureau, 2000

Age

80

70

60

50

40

30

20

10

0 1000 1200 1400 1600 1800 1900 2000

25 30

35 36 38

47

76.5

Year

The “Sudden” Boom in Life Expectancy


More Healthy Years After Traditional Retirement

13.6

19.4 20-25

1.2

30 +

Years

Source: Age Wave, based on U.S. data, and The Concours Group (now Tammy Erickson Associates)


Births per

100 Population

4

6

2

0

1

3

5

1820 1900 1950 1998

Africa

India

Brazil

China United States

Western Europe

Japan

Source: "Changing Global Demographics," H.S. Dent Publishing, 2007, based on data from the United Nations.

Declining Birth Rates Around the World


Shifting Populations Shapes

https://upload.wikimedia.org/wikipedia/commons/7/79/Flag_of_Nigeria.svg


No Crisply-Defined “Generations”

Generation X Boomer Traditionalist Generation Y Re-Generation

A spectrum of shifting mental models over time

Born 1928-1945

Born 1946-1960

Born 1961-1979

Born 1980-1995

Born 1996 Onward

Typically marked by major events – prompting a significant change in the focus of adult conversation


Sensorimotor stage (birth-2 years old)

Concepts about how physical objects work based on direct physical interaction with the environment

Preoperational stage (ages 2-7)

Intuitive intelligence related to concrete physical situations

Concrete operations (ages 7-11)

Logical structures related to concrete objects or physical experiences (numbers, for example)

Formal operations (ages 11-15)

Conceptual reasoning and abstractions

Mental models that persist throughout adulthood

Cognitive Structures Form from the Interpretation of Events

Piaget’s Four Developmental Stages


Shared views and common

perspectives

Our Mental Maps Are Shaped by Many Factors

National and

global events and

trends

Parents’ views

Religion

Race and ethnicity

Gender

Socioeconomic status

Many other factors

http://www.hispanicallyspeakingnews.com/uploads/images/article-images/Teen_article300.JPG





Critical Differences Around the Globe

No “global” generations


Who Are They . . . And How Are They Different?

Traditionalist

Collective

• Eager to join • Loyal • Hierarchical

Boomer

Competitive

• Zero-sum • Hard-working • Idealistic

Gen Xer

Self-Reliant

• Mistrustful of institutions

• Options-based

1928-1945 1946-1960 1961-1979 Born: Born: Born:

Outlook on Life


Who Are They . . . And How Are They Different?

Millennials

Immediate

• Live each day to the fullest

Re-Gens

Patient

• Defer gratification • Build your own

future

1980-1995 1996 Onward Born: Born:

Outlook on Life


The Re-Generation: The Meaning of Money

The Re-Generation: Born 1996 Onward

• They save, defer gratification, and are reluctant to incur debt

• They will rent – and generally access goods and services in innovative ways

• They will downsize – objects don’t confer status

• They recycle, share, borrow, trade, and barter


Nature of the Population

will consume in very different ways

Consider for the Future . . .

A very different customer base:

• Proportionately older

• More diverse

• With new views on money

• Seeking variety, challenge, and flexibility –


New Technologies . . .

• Make it possible to find almost anyone or anything, anywhere easily and quickly

• Dramatically reduce the cost of communication – transactions, coordination, pattern detection

Copyright: vivilweb / 123RF Stock Photo


Transaction Costs: Determine Institutional Structure

• Why a firm is of a certain size

• Why activities are performed within

the organization’s boundaries

Ronald Coase The Nature of the Firm, 1937 Nobel Prize for Economics, 1991


Rethinking Processes – Removing “Control” of Resources

• In the 1980’s and 1990s: lower costs of communication facilitated companies’ ability to spin off non-core activities

• Today: lower cost of coordination will lessen companies’ need to “own” resources . . .

. . . including the need to employ workers full-time

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http://crispme.com/15-stunning-t-shirt-designs/&bvm=bv.104317490,d.cWw&psig=AFQjCNHST3OH4uX9fVF0he8KK6JmGU0Mmg&ust=1443971149815906


Digital Changing How We Get Things Done



Technology has already dramatically reduced the cost of transactions –

Capabilities of Technology

and will fundamentally change the way work is done – how it’s done, where it’s done, when, by whom, in what organisational construct – and how it is financed


Where Is This Century’s Opportunity to Excel?

Peter Drucker

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMDM4qX18sgCFUFpFAod6sIFzw&url=http://izquotes.com/quote/341621&psig=AFQjCNGnb5hoLXWQA3OAJzouzxjZ95UXgQ&ust=1446594136819432

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMDM4qX18sgCFUFpFAod6sIFzw&url=http://izquotes.com/quote/341621&psig=AFQjCNGnb5hoLXWQA3OAJzouzxjZ95UXgQ&ust=1446594136819432


MOBILISING INTELLIGENCE

The Most Important Work Today

• Combining different types of knowledge and expertise to come up with something better

• Harnessing the smallest units of knowledge

• Determining what information to share, with whom

• Tapping individual’s particular knowledge and capacities in ways that contribute to the success of the whole

• Creating insightful relationships with customers, suppliers and others

• Detecting and responding to market and environmental shifts

• Learning

http://www.google.com.kw/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj04oHyn8bLAhUiQJoKHRBLDf0QjRwIBw&url=http://www.robertferrell.net/a-brief-description-of-spiritual-intelligence/&psig=AFQjCNHh_0QbmdYBsCcGT9VijuQ9Knd41w&ust=1458253464115280


New Models of Leadership – and New Organisational Designs Are Essential

Create Context

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi61rn246TSAhWsCsAKHfJ8CAsQjRwIBw&url=https://www.ted.com/topics/leadership&psig=AFQjCNF3c94BSyjjhsXLkznwRBVcZj2Otg&ust=1487889890496283


Type of Work

it is fundamentally different from industrial work and will drive new organizations and work practices

The highest-value work leverages intelligence –



Characteristics of Future Organisations and the Challenges of Talent Management


How Work Is Organized: Tasks

Self-managed projects Discrete activities


What Might This Look Like?

• Few people will have broad organisationally-defined titles

• Titles will be time-bound and action-oriented

• Some people will take on multiple projects at a time

• Some projects will be short (months); others very long (perhaps a decade or more)

• Compensation will be tied to the project (‘this project pays x amount’)

• People will have great flexibility in choosing or bidding for assignments on various projects


What Does This Mean for Talent Management?

• Break work into activities or projects

• Eliminate or downplay broad, position-based titles

• Create ways to allocate projects that allow individual choice and tap the best expertise

• Create new performance review process: task-based, aligned with task milestones, and reviews done by peers on the task team

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.organizemyhive.com/2012/10/19/shameless/&ei=VApEVdnDF4jZsATGuIHgCQ&bvm=bv.92291466,d.cWc&psig=AFQjCNE7Nm8jEwj7PTVn7u6YCxnW9v5R9A&ust=1430608830975216


How Work Is Integrated: Coordination

Real-time coordination –

when and where needed

http://www.spillo.eu/wp-content/uploads/2014/05/cropped-cropped-15581-network-cables-1920x1200-computer-wallpaper.jpg



• Redesign processes: look for opportunities to substitute some form of coordination

• Identify resources, including skill sets, that you don’t need to “own” full-time – prepare to tap them as needed

• In doing so, embrace a variety of flexible arrangements (share, rent, borrow)

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http://www.jesuit.org.sg/html/prayer/homilies/2011.yeara.15ordsun.php&ei=6BRFVbHZBtWOsQS6tYDIDg&bvm=bv.92291466,d.cWc&psig=AFQjCNFaOojjAv2XgZBv6RYjtY8Mpn9djg&ust=1430677096484986


How Organizations Relate to Those Who Work: Portfolio Staffing

A variety

of work

arrangements

A community of individuals

“on tap”

Processes to

develop and

maintain

long-term

relationships


Weaving Individuals Together

A strong employment brand will become essential

As the relationship with workers takes on an episodic nature, the need to provide continuity between episodes of work will be critically important

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMK-sNbKpsgCFcMZPgodRGYOFw&url=http://www.gettyimages.com/detail/illustration/seamless-patterned-borders-with-small-spots-royalty-free-illustration/467418063&bvm=bv.104317490,d.dmo&psig=AFQjCNHvv-kkyN38mdvLUIaRubLa_9l4iw&ust=1443971332115712

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCMK-sNbKpsgCFcMZPgodRGYOFw&url=http://www.gettyimages.com/detail/illustration/seamless-patterned-borders-with-small-spots-royalty-free-illustration/467418063&bvm=bv.104317490,d.dmo&psig=AFQjCNHvv-kkyN38mdvLUIaRubLa_9l4iw&ust=1443971332115712


Changing Metrics

• Although important for some tasks, tenure will no longer be a metric applied to the overall workforce

• A more relevant metric will emerge, related to “fit for purpose” – the extent to which individual projects are staffed by people with the ideal skill sets.

• How many of our tasks are staffed by people with the full complement of skills desired?

• How close is our staffing to the ideal?


Changing Selection Criteria

• College degrees will diminish as a currency in the job market

• Employers will seek more task-specific credentials

• “Badging” – some way of signifying and communicating on-the-job learning and achievements – will grow

• Companies will compete for talent on the basis of the learning they provide

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.opencolleges.edu.au/informed/features/badges-in-education/&ei=JgJEVfPsCoXfU6fXgpAG&psig=AFQjCNEriEUxfodIw0m8ahNwduN75Pupjg&ust=1430606743163120







• Offer a wide variety of work arrangements

• Tap skills anywhere, anytime, matching talent from all over the globe with task

• Establish a reputation as a great place to work

• Cultivate a long-term relationship with pools of individuals that you may need to tap in the future

• Emphasize learning and development; create a system to provide marketable credentials to those who excel in your organization

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http://www.iskonsystems.com/Consulting-Services-IT-Staffing-Solutions.php&ei=JL5DVe6SI8iqggTZyoDQBA&psig=AFQjCNEemhBGkxLOfLlcYIyjVEXcLd5RVg&ust=1430589348996455


How Differentiating Value is Created Discretionary Effort

Confidence In Your Organisation’s

Unique Identity

An Employee Experience

Consistent with Your Implicit

Promise


Meaning Is the New Money

Old New

Adopting best practices Crafting unique experiences

Trying to be all things to all people Attracting and retaining people who value what you have to offer

Offering a little of everything Excelling in specific areas that align with your values



• Identify your own powerful set of “design principles” (values)

• Create a powerful, differentiating employee experience, orchestrating elements throughout the organization: leadership behaviors, people practices and processes, day-to-day work experiences, as well as corporate stories and legends

http://www.google.com.hk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=g0DXN_ZjVUP2VM&tbnid=H-VlqvctipQG9M:&ved=0CAUQjRw&url=http://bookboon.com/blog/2013/04/are-you-a-smart-manager-do-you-know-how-to-motivate-your-employees/&ei=-0h5U5WfBcLs8AXwjYGAAg&psig=AFQjCNGanvJ-9O1hAFNaEdupdss-CLQIjg&ust=1400543858059869


INTRIGUE

CONNECT

ENGAGE

DISRUPT Ensure a continual infusion of new perspectives

Ask questions – framing challenges in ways that are evocative and inspiring

Make it easy to share insights, observations and ideas

Communicate a compelling purpose ~ understand the implicit promise

~ deliver on the experience to both employees and customers

Four Contemporary Tools of Leadership

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj-8LbyjaLSAhXDzRoKHQhSDbEQjRwIBw&url=http://www.gordian.co.uk/&bvm=bv.147448319,d.d2s&psig=AFQjCNFKRhnkDOu1eFkhBiqYWZrHd3jHWw&ust=1487798067171995

For more . . . [email protected]

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