Deloitte Shared Services, GBS & BPO Conference

Transcription

1 Deloitte Shared Services, GBS & BPO Conference Future of Work: Evolving Shared Services in the context of the future of work: Threat or opportunity? Martin Laws, Partner, Occupier Advisory Mark Catchlove, Insight Group Director Reto Bruegger, Head of B2B / Nestlé Nespresso S.A.

2 Future of Work Evolving Shared Services in the context of the future of work: Threat or opportunity? Martin Laws Partner, Occupier Advisory

3 What is the future of work? 3

4 Two of any organisation s most critical and valuable assets are its people and the technology they access. Both are changing more rapidly than at any time in the history of the workplace. 4

5 What is the future of work? Deloitte is producing more and more insight on an increasingly connected debate 5

6 What is the future of work? A new generation Millennials are entering the workforce in greater numbers and reshaping the talent markets with new expectations. They are projected to make up 75% of the global workforce by Global Human Capital Trends (Deloitte, 2014) Talent 6

7 What is the future of work? A new generation with changing expectations The 21st century workforce is global, highly connected, technology savvy and demanding. Businesses realise that the workforce today has changed; skills are scarce, workers have high expectations and Millennials are now in charge. For this emerging generation, work-life fit is valued more than compensation growth or skill development. Global Human Capital Trends (Deloitte, 2014) Talent 7

8 What is the future of work? A new generation with changing expectations coupled with increased longevity Increased longevity and health are encouraging greater numbers of older people to remain longer in the workforce. By 2025, the number of workers aged is forecast to rise by 89%, while for those aged 65 and above the percentage is even higher. Global Human Capital Trends, (Deloitte, 2014) Talent 8

9 What is the future of work? A new generation with changing expectations coupled with increased longevity is creating a multi-generational workforce Trends of Millennials entering and Baby Boomers remaining in the workforce is creating the most multi-generational workforce in history. Global Human Capital Trends (Deloitte, 2014) Talent 9

10 What is the future of work? A new generation with changing expectations coupled with increased longevity is creating a multi-generational workforce of contingent workers Organisations are tapping networks of specialists; 51% of organisations see an increase in contingent hiring in the next 3 to 5 years. Global Human Capital Trends (Deloitte, 2015) Talent 10

11 What is the future of work? Supportive technology? 56% of respondents believe increased mobile working would improve their productivity. More than 66% say their employer does not assist them in usefully applying mobility to their jobs. Upwardly Mobile Survey (Deloitte, 2013) Technology 11

12 What is the future of work? Supportive technology or disruptive technology? Today s office worker can only focus for 6 minutes on a single task. The average user checks their mobile device 150 times a day Not only has technology become a critical and pivotal part of human resources, but we have also identified a new human capital issue the overwhelmed employee. Organisations face an imperative to find ways to absorb more technology while simultaneously making it simple. Global Human Capital Trends Survey (Deloitte, 2015) Technology 12

13 What is the future of work? Supportive technology or disruptive technology destructive technology? More than 1 in 3 jobs in the UK is at high risk of being made redundant by technology in the next 10 to 20 years. The speed and extent is computerisation will depend on the strength of social and political resistance to change. London Futures, Agiletown: the relentless march of technology (Deloitte, 2014) Technology 13

14 What is the future of work? Supportive technology or disruptive technology destructive technology or creative technology? According to a recent PEW Foundation survey, 48% of US technology experts believe robots and digital agents will displace significant numbers of both unskilled and skilled workers, with many expressing concern that this will lead to mass unemployment. We argue that the current discourse is biased towards the job-destroying effects of technological change due to the relative unpredictability of its creative aspects. Technology and people: The great job-creating machine (Deloitte, 2014) Technology 14

15 What is the future of work? Ever increasing globalisation? By 2020, a typical global organisation will place people in 33 world-wide locations, an increase from 13 locations in Global Human Capital Trends Survey (Deloitte, 2014) Place 15

16 What is the future of work? Ever increasing globalisation with changing global dynamics? More than 20 of the world s top 50 cities ranked by GDP will be located in Asia by the year 2050, up from 8 in And by 2030, China, India and Brazil will become the world s major exporters of qualified talent. Workplace 2030: Built for us (Deloitte, 2013) Place 16

17 What is the future of work? Ever increasing globalisation with changing global dynamics and emerging growth locations? In the first decade of this century, 21 countries (all of them developing countries) more than doubled their GDP, emphatically dwarfing the UK (18%), UK (18%) and Germany and Japan (>10%). Business Trends 2014: navigating the next wave of globalisation (Deloitte University Press, 2014) Place 17

18 What is the future of work? Creative and dynamic working environments A creative and dynamic work environment is one of the most attractive attributes of an employer to banking-oriented students which less than 40% of students attribute to banking. Talent in Banking Survey (Deloitte, 2013) Space 18

19 What is the future of work? Creative and dynamic working environments replacing uninspiring and unproductive spaces. Of more than 36,000 participants surveyed, more than 4/5 said that their organisation s workspace was important to them, but only 1/3 either agreed or strongly agreed that their workspace created an enjoyable environment to work in or enabled them to work productively. The Leesman Review (2013) Space 19

20 Today s Shared Services under threat? 20

21 In the past, computerisation has been limited mainly to repetitive tasks that can easily be specified in software and performed by machine. The future will be different. The capabilities of computers are expanding beyond routine work: as a result, tasks that were once considered too complex for coding will be converted into well-defined problems capable of digital solutions. London Futures, Agiletown: the relentless march of technology (Deloitte, 2014) 21

22 Today s Shared Services under threat? Automation is forecast to have a dramatic impact; particularly on low-skilled and process driven tasks 22

23 Today s Shared Services under threat? Given the nature of many SS activities this could have a profound impact More than 50% of existing roles in Finance functions have a high probability of automation. Typical roles at risk include payroll managers, financial administrators and credit controllers. The robots are coming (Deloitte, 2015) 23

24 Today s Shared Services under threat? Shared Service centre locations will become increasingly diverse Organisations shared services geographic scope is expanding, as evidence by the inclusion of markets such as Greece, Africa and the Middle East, demonstrating that virtually every country can be considered as a source of talent around the world. Global Shared Services Survey (Deloitte, 2015) 24

25 Today s Shared Services under threat? and traditional SSC locations could give way to emerging growth locations. Mexico, Indonesia, Nigeria, Turkey (MINT) have been identified as additional high-growth and high-potential economies. Thailand, Vietnam and the Pacific Coast nations of Latin America, might hold real future promise. Business Trends 2014: navigating the next wave of globalisation (Deloitte University Press, 2014) 25

26 Shared Services to lead change? 26

27 Increasing automation is the second most important strategic priority for shared services and GBS leaders, behind only focusing on continuous improvement. The robots are coming (Deloitte, 2015) 27

28 Shared Services to lead change? Shares Services has no choice but to be at the bleeding edge of change 28

29 Shared Services to lead change? and it has the opportunity to drive change through the business : SSCs often comprise the functions that need to address these challenges 29

30 Shared Services to lead change? which are often considered in siloes, but are inextricably linked Talent Technology Place Space Talent Strategy Mobility Footprint optimisation Workplace Vision Workforce Agility Security Location Research Workplace Design Organisational Transformation Collaboration Tax & Incentives Real Estate Strategy Change Management Infrastructure Relocation Implementation Real Estate Transformation 30

31 Shared Services to lead change? which are often considered in siloes, but are inextricably linked Talent Technology Place Space Talent Strategy Mobility Footprint optimisation Workplace Vision Workforce Agility Security Location Research Workplace Design Organisational Transformation Collaboration Tax & Incentives Real Estate Strategy Change Management Infrastructure Relocation Implementation Real Estate Transformation 31

32 Shared Services to lead change? But how do you adapt in an ever changing world? A new reality? The world of work is going through a major shift; an organisation s people and the technology they access are changing more rapidly than at any time in the history of the workplace. However, that does not necessarily mean that the evolving picture is the new reality - who is to say that the game won t change again? And again? And again? Or constant evolution? Not only is it difficult to predict the future states of working reality with any confidence, it is equally as difficult to asses how many future states there will be. In fact, what is much more likely, is a state of constant evolution, where emerging trends in people s preferences and the technology they can access change with an everincreasing regularity. Frequent adaptation Therefore, an organisation s response should not be to adapt their corporate infrastructure to suit today s emerging reality (be that the demand for work / life balance, a total reward package, mobile technology, or otherwise). Instead, they should look to revolutionise their attitude to corporate infrastructure in order to provide the organisation with the flexibility it needs to frequently adapt to meeting tomorrow s everchanging priorities. 32

33 Shared Services to lead change? and what should functional heads be focusing on? CHRO CIO COO CREO Increase flexibility Embrace alternative employment models Develop total reward to drive satisfaction Foster culture for learning and development Performance manage remote & flexible workforces Move from strict policies towards governing principles Recognise the cost of attrition Construct a diverse portfolio Embrace new technologies to improve productivity; accept obsolescence Invest in training for new technology Be bold, but invest in assets carefully Keeping up is expensive; adjust investment accordingly Optimise depreciation periods Be innovative Look to tomorrow s world; where is the talent? Consider non-traditional locations, both for SSC and front office locations to optimise cost Optimise adjacencies and collaboration opportunities Change perceptions Your real estate space is an enabling asset, not just a cost to be controlled Help to improve productivity, increase innovation, and promote collaboration Invest in flexibility; transform property from a fixed to a variable cost Use the working environment to attract and retain talent Change how you measure RE performance 33

34 Scenarios 2018 How will work change through 2018 Mark Catchlove Insight Group Director

35 Scenarios 2018 How will work change through 2018? Chance favours the prepared mind Louis Pasteur 35

36 Scenarios 2018 How will work change through 2018? 36

37 Scenarios 2018 Swarm focused work 37

38 Scenarios 2018 Hackable and Kinetic Nodes 38

39 Living Office Engine of Prosperity In the new landscape of work, a dynamic equilibrium of shared passion and profit delivers greater performance and value for both individuals and organisations. 39

40 Future of Work The Nespresso story Reto Bruegger Head of B2B / Nestlé Nespresso S.A.

41 The Nespresso story Turning a simple idea into a winning formula.create the perfect cup of espresso with exquisite crema, tantalising aroma and full-bodied taste just like skilled baristas at home, in a convenient and consistent way 41

42 A fully integrated value chain From cherry to cup 1-2% of the world s green coffee crop 5

43 Nespresso 2000 to 2014 development 15 years of strong growth Headquarters: Lausanne, Switzerland 2000: 30 countries 2014: 62 countries 2000: No boutiques 2014: 400 luxury boutiques in 55 countries 2000: 330 employees 2014: over 10,500 employees (over 70% consumer facing) 2000: 1 production centre 2014: 3 production centres (Avenches, Orbe, Romont, CH). 43

44 The 5 Phases of development Impact on the organisation and people Phase 1 Pioneering years Trial and error Phase 2 Prove acceptance and profitability Phase 3 European expansion Phase 4 Shaping the global coffee culture 44 Phase 5 Solidifying global coffee leadership

45 The 5 Phases of development Impact on the organisation and people Culture Outlook Corporate / Process + Efficiency orientated Strategic, long-term / Risk Mgt Communication. Complex / Distance Mgt / Technology as facilitator Offices 1 per market / Moves to Nestlé local offices / International Real-Estate Mgt. Organisation Full ManComs in all markets / Functional networks / Talent & Career Mgt / Zones Comment: Phase 1 Pioneering years Trial and error Overseas expansion shows limits to a Europe-centric model Phase 2 Prove acceptance and profitability Phase 3 Eurpean expansion Phase 4 Shaping the global coffee culture 45

46 The 5 Phases of development Impact on the organisation and people Phase 1 Pioneering years Trial and error Phase 2 Prove acceptance and profitability Phase 3 European expansion Phase 4 Shaping the global coffee culture 46 Phase 5 Compete in new environment

47 The 5 Phases of development Impact on the organisation and people Culture Change Mgt / More external outlook / Results orientation / Increasingly competitive Outlook Strategic long-term with short-term results orientation Communication Technology / Department driven / Drive to integration of functions / Alignment Offices Large / Increasing use of visual technologies / Integrate well-being of staff. Back to the roots» as far as brand visual/architectural components. More open office spaces. Start of home-offices Organisation Large scale / Breaking down of silo mentalities / Agility Lateral moves as part of career management / Seniority Phase 1 Pioneering years Phase 2 Start-up phase Phase 3 Creating an iconic global brand Phase 4 Shaping the global coffee culture 47 Phase 5 Compete in new environment

48 Conclusion 48

49 Q&A Martin Laws Partner, Occupier Advisory Mark Catchlove Insight Group Director Reto Bruegger Head of B2B / Nestlé Nespresso S.A.

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