Peter J. Miscovich Managing Director Jones Lang LaSallepeter.miscovich@am.jll.com September 2012

1

Global Business Transformation Trends

• Business Change Acceleration

• Enterprise Agility + Flexibility

• Global Networks 24X7 Connectivity

• Hyper-Collaboration + Social Business

• Digital Talent Strategies • Millennial Talent 50% Workforce @ 2020

• Hyper-efficient Cost Management

• Innovation = Survival of the Fittest

• Urbanization + Smart Cities

• Work Life Innovation

2

Cloud + Virtualization

Pervasive Connectivity Geospatial Visualization

Social Networks Web 2.0

Emerging Technologies Convergence Accelerates…

Internet of Things M2M

Advanced Analytics BIG DATA

3

Technology + Urbanization = Smarter Cities“Smart” Technology Enabled Cities of 2020

• Digital Divides + Urban Infrastructure + Digital Transformation

• Hybrid + Public + Cloud Computing

• Mobile Wireless Broadband Networks

• Natural Interfaces + Interactivity

• Open Data Infrastructure

• Pervasive Networks + Sensors

• “Smart” Personal Digital Devices

• Sustainable Urbanization

• Global Urban Workforce Growth

4

Connected Age of Knowledge Workers @ 2020

The MobileInternet

5

Hyper-specialization Will Transform Work

• Atomization of Work Processes

• Division of Work + Labor Accelerates Exponentially

• Dividing Work into Assignable Tasks

• Integration of High Quality Work Products

• Work Brokerage Agencies will Proliferate

• Flexible Working Conditions + Flexible Tasks

• Unloading of Meaningless Work Activities

• Employers Benefit + Highest Quality Flexible Labor

• AMAZON Mechanical Turk + GURU.com + TopCoder

6

From Harvard Business Review - The Age of Hyperspecialization Dr. Thomas Malone MIT Sloan School of Management August 2011

Decades of Business Disruption Ahead

• Banking, Entertainment, Media, Real Estate, Telecom Industries

• New Business Models Transform + Emerge + Evolve

• Creative Destruction + Continuous Business Transformation

• Customer “Co-Creation” as primary growth engine by 2020

• Micro-Entrepreneurs will proliferate

• Middle Managers will disappear

• Retail Automation (NFC) Disruption + Showrooming

• Total Business Transparency 2020 requirements

• Work Process Disruption = Continuous Workplace Change

• Workplace Transformation = Innovation Opportunities

7

Workplace Evolution = Time + Space Continuum

• Work Process Transformation

• Elastic Workplace Networks

• CRE Performance Optimization

200 RSF/person

50 RSF/person

TODAY:

2020:

WORKPLACE UTILIZATION:

35% – 50%

85%

Aggressive CRE portfolio strategies will be enabled by expanding workplace mobility practices enabling flexibility and efficiency

Corporate Real Estate (CRE) Workplace Occupancy Metrics

Aggressive Portfolio Strategies

Innovative Workplace Design

Improved Occupancy Metrics

8

• By 2013 – 30% Contingent Workforce

• By 2020 – 60% Contingent Workforce

• By 2030 – 80% Contingent Workforce

• Diverse Workplace Demands + Agile Solutions

• New Employment Contracts for Employers

• Social Business + Hyper-Collaboration

• Socialization + Collaboration as primary work focus

• Work-Lifestyle Integration

• Work Process Transformation

9

Contingent Workforce = Organizational Impact

From Contingent Workforce and Public Decision Making Dr. Thomas Fisher – University of Minnesota March 2012.

Workplace Skills Required in 2020

• Adaptive Computational Thinking

• Applied Statistical Analysis + Data Science

• Cognitive Articulation + Complex Problem Solving

• Cultural Competencies + Virtual Collaboration

• Digital New Media Presentation Literacies

• Emotional Intelligence + Humanistic Leadership

• Human Interaction + Nurturing + Coaching Skills

• Group Dynamism + Team Management Skills

• Quantitative Reasoning + Complex Communication Capabilities

• Trans-disciplinary Skills + Multiple Literacies + INNOVATION

10

Todays Multi-Generational Workforce

Traditionalist1928–1948

Boomer1946–1965

Gen X1965–1980

Millennial1980–2000

Trait: Paternalistic Optimistic Skepticism Empowered

Leadership Style: Top-down Consensus Competence Non-hierarchical

Career: Pay dues, build legacy

Competitive, change agents

Resourceful, self manage

Cutting edge vs. experience

Value: Loyalty Opportunity Freedom Diversity and social responsibility

Rewards: Job security and recognition

Money, title and perks Transferable benefits, flexibility and balance

High pay, interesting work and work/life balance

11

Multi-Generational Workforce Analysis(USA Population and Labor Statistics - Catalyst Research May 2012)

12

Total Population By Generation

Population by Generation @ 2010 Census:Traditionalist: 40,267,984Baby Boomers: 81,489,445Generation X: 61,032,705Millennials: 85,405,385

Total Labor Force By Generation

Labor Force 154,316,000 @ 2012:Traditionalist: 7,676,000Baby Boomers: 59,893,000Generation X: 49,433,000Millennials: 31,927,000

Total Population 313,465,023 @ Median Age 37.2 years old @ May 2012

Baby Boomer vs. Millennial Values

Source: Gartner Research in Lynch, 2008

Why Do Millennials Matter?

• 80,000,000 will join the workforce over the next ten years

• Work/Life flexibility as important as financial rewards

• The Connected + Networked Generation via technology

• Collaboration + Mastering of Social Networks

• Career Progression and Learning as Top Priorities

• Corporate Social Values Alignment with Corporate Branding

• International Career Experience + Global Work Opportunities

• Mentoring + Coaching + Generational Understanding Priorities

• Organizations must keep their promises to Millennials

• Enable Millennials as our Future Workforce for Success

14

From PricewaterhouseCoopers Research “Why Millennials Matter” PricewaterhouseCoopers Human Capital Advisory Practice 2012

The Future Workplace + APPLE Retail Environment

Apple Retail Environment = Workplace Attributes

•Socialization + Learning + Technology Enabled “Experience”•Good Design Aesthetic + Interactivity + Accessible + Human Scale•Social Emotional “Psychic” Imprint + Collaboration + Nurturing + Brand •Corporate Workplace of the Future = Socialization + Innovation

15

“Great things in business are never done by one person. They’re done by a team of people.”

– Steve Jobs, Apple CEO, RIP

16