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Deloitte Shared Services Conference 2018Changing places: the future of work and what it means for shared servicesMichael Stephan – Principal, Global & US HR Transformation Leader, Deloitte

Copyright © 2018 Deloitte Development LLC. All rights reserved. Deloitte Shared Services Conference 2018 – Changing places: the future of work and what it means for shared services 1

1 https://www.cnbc.com/2017/01/17/6-billion-smartphones-will-be-in-circulation-in-2020-ihs-report.html2 https://www-01.ibm.com/software/data/bigdata/what-is-big-data.html3 Annual Global Millennial Study, https://www2.Deloitte.com/uk/en/pages/about-Deloitte-uk/articles/millennial-survey.html 4 https://www.newscientist.com/article/mg23130810-800-the-100year-life-how-should-we-fund-our-lengthening-lives/5 https://www2.deloitte.com/content/dam/Deloitte/il/Documents/human-capital/Thriving_in_times_of_digita_disruption.pdf

6 http://www.oxfordmartin.ox.ac.uk/downloads/reports/Citi_GPS_Technology_Work_2.pdf

7 Intuit 2020 Report: Twenty Trends that will Shape the next Decade https://http-download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit_2020_report.pdf8 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/dttl-hc-english-opentalenteconomy.pdf

Unprecedented change and opportunity

Technology is everywhere

6.0 billion+smartphones in the world by 20201

AI, Cognitive Computing, Robotics

$500,000 in 2008$22,000 today5

Tsunami of data

9x more in last 2 years2

Major enabler of machine learning

Jobs vulnerable to automation35% UK 47% US

77% China6

Diversity and generational change

Millennials 50%3

25% global pop in Africa by 2050 5

Longevity Dividend– 50 year careers4

Explosion in contingent work

US Contingent workers 40% by 20207

7Disruptors

Change in nature of a career

2.5 – 5 years: Half-life of skills4.5 years: Average tenure in a job8


What appears to be happening

• Mobile, sensors, AI, cognitive computing, data.

• Access to technology by consumers globally.

• Technology infiltrates home and political life.

Time

Technology change

Ra

te o

f ch

an

ge

Business productivity

Gap in business

performance

potential


What is really happening?

1970s 1980s 2000s1990s Today2010s

Technology

Individuals

Businesses

Public policy


Reimagining all dimensions of work

WorkThe type of work people will do in the

future

WorkplaceThe structure and practices to enable people to create value in the future

WorkforceThe portfolio of workforces, people and

machines, full time and contingent workers and crowds


The convergence of technology and talent models has opened new opportunities for workforce planning and the composition of work

1 Physical Proximity3

Talent Category2

Automation Level

What work can be automated?1Increasing automation over the next 10-20 years…

“Work”

Who can do the work?2Technological advancements enabling new models for interaction between companies, employees, and customers…

“Workforce”

Where is the work done?3Rethinking combinations of talent, technology and workplace…

“Workplace”

Current work options Future work options1 https://smallbiztrends.com/2016/07/20-surprising-stats-freelance-economy.html


The table below highlights the key shifts that are occurring in the marketplace now

The organization of the future requires a foundational shift in capability & mindset

The Future of

Work

The Future of the

Workforce

The Future of the

Workplace

Incremental technology changes Digital transformation

Stakeholder involvement Reputation management

Customer satisfaction Customer engagement

Seeking new markets Dynamic globalization

Stable, long term jobs Open talent

Process-centric Employee-centric

Metrics and reporting Workforce insights

Systems of record Systems of engagement

Command and control leadership Network of teams

Institutional inertia Nimble and innovative culture

Traditional office Distributed work spaces

Health and wellness Employee well-being

Ye

ste

rda

y

TO

MO

RR

OW


Cognitive Agent is trained on policies and procedures to

advise all clients on all subjects

Cognitive Agent and RPA automatically execute business processes on behalf of clients

WORK: Robotic & Cognitive Automation enable the future of work…

TIER 1Shared Services

Client Interaction

Center

TIER 2Shared Services

Functional Specialists

TIER 0

Self Service Portals

TIER 3

COE and BusinessPartners

Human Assisted

Call if unresolved

Escalate if unresolved


Opportunities to further leverage technology exist

Self Service

YESTERDAY’S MODEL: Tiered Service Delivery Model

Cognitive assisted services provide a personal and natural customer experience, educating customers, and enabling confident & informed decisions

TIER 1

Cognitive-Enabled Inquiry Support

TIER 3

COE and BusinessPartners

Self Service with Cognitive Assisted Service


Cognitive Agent asks and understands how to help

clients

Assisted by Cognitive Insights and AI

Human

TIER 2

RPA Enabled Support

TIER 0

Self Service Portals

... with escalation and warm handoff to humans, as needed

TOMORROW’S MODEL:Robotic and Cognitive Assisted Self-Service


The talent landscape is evolving. It is a collaborative, transparent, technology-enabled, rapid-cycle way of doing business in which access to talent is more important than ownership of talent

The workforce of tomorrow will likely be augmented by technology and talent models

WORKFORCE OF YESTERDAYHighly Regimented and Hierarchical

WORKFORCE OF TOMORROWNew Talent Options and Team Configurations

Employees

Joint Ventures

Contractors

Freelancers

Crowd

Robots & Cognitive Automation

OPEN TALENT


Today, most employees work onsite at locations that require considerable office investment. With Robotic & Cognitive Automation, work location becomes more virtual, enabling greater flexibility and collaboration

WORKPLACE: Robotic & Cognitive Automation change the need for physical workspace

TODAYConstrained Workforce

TOMORROWAgile Workforce

*Robotic & Cognitive Automation also allows organizations to extend their services to employees in smaller countries through virtual agents rather than requiring the set up of local service sites.


Organizations are beginning to leverage robotic and cognitive technologies. These technologies can help fundamentally change how functions operate in the future

Robotics and cognitive automation are redefining service delivery

Engage with Customers Deliver Meaningful InsightsAutomate Operational Tasks

Automate manual, rules-based activities through Robotic Process Automation (RPA)

Interact with customers to manage transactions, resolve inquiries, and triage requests to human HR professionals

Mine and analyze data to uncover new relationships and insights

For example, It is expected that the percent of HR

departments’ leveraging RPA capabilities will triple in the next 24 months(HfS, The HR Power Tools 6-Pack for High-Impact Service Delivery, June 2017)

Chat bots and now, more advanced cognitive agents, are supporting customer inquiries and basic transactions.

Huge potential to redefine service delivery

Organizations are hiring data scientists to uncover hidden patterns to

identify new opportunities for innovation

Overall, 87% of companies believe that AI and Cognitive technology will play a significant role in improving their products and services. Looking ahead, 89% see it playing a larger role in shaping company strategy. (Deloitte State of Cognitive Survey, August 2017)


This doesn’t mean jobs are going away, in fact in an automated world demand for “human skills” will grow

30% of high-paying new jobs will likely be social and “essentially” human in nature

Listening Oral expression Interpreting feelings Coordination Managing time Social perceptiveness

What are human skills?

Increase in highly cognitive, non-routine work

Over the past four decades…

Decrease in repetitivework

60%

12%

“We should embrace robots, not fear them.”- Andrew McAfee, MIT Initiative on the Digital Economy

Sources: Deloitte Insights, “Forces of Change: The Future of Work” (2017); Financial Times


As human skills become more important, certain will be more enduring and essential

Service Orientation

COMMUNICATION

Listen, respond and express ideas effectively in different contexts, influencing others

Cultural Fluency

Decision-Making

End to End / Big Picture Thinking

STRATEGIC

Exercise judgement and leadership to decide the way forward in complex environments

Critical Thinking

Data Fluency

ANALYTICAL

Acquire new knowledge, process information and draw accurate conclusions

Digital Fluency

Teamwork

COLLABORATION

Effectively work with others, team with others, and lead others

Design Thinking

Agile Thinking

PROBLEM SOLVING

Find creative solutions to difficult or complex issues

Innovative Thinking / Creativity

Emotional Judgement

Professional Ethics

SELF DEVELOPMENT

Continuously evolve and upskill oneself

Intellectual Curiosity

Technical Fluency

Leading Teams Self-Management


Thus… to attract the best talent, organizations will need to double down on creating an irresistible employee experience

A NEW APPROACH FOR TODAY’S WORKPLACE

MeaningfulWork

Supportive ManagementPositive WorkEnvironment

GrowthOpportunity

Trust in Leadership

AutonomyClear and

transparent goalsFlexible work environment

Training and support on the job

Mission and purpose

Select-to-fit CoachingHumanistic workplace

Facilitated talent mobility

Continuous investment in people

Small, empowered teams

Investment in development of managers

Culture of recognition

Self-directed, dynamic learning

Transparencyand honesty

Unstructured time

Agile performance managementFair, inclusive, diverse work

environmentHigh-impact

learning cultureInspiration

Cross-organization collaboration and communication

Bersin by Deloitte’s Simply Irresistible OrganizationTM Model


The model examines the differentiating strategies needed today to improve employee engagement by breaking down the “employee experience” into elements that are both measurable and actionable, very much like our own “Moments that Matter” framework

The Simply Irresistible Organization™ Model Explained

COLLABORATION AND COMMS

MEANINGFUL WORK

SUPPORTIVE MANAGEMENT

TRUST IN LEADERSHIP

GROWTH OPPORTUNITY

POSITIVE WORK ENVIRONMENT

Work aligns with employees’ strengths and gives them a sense of purpose and empowerment. They are enabledwith the tools and autonomy they need to develop and succeed.

Flexible, collaborative, humane, diverse, and inclusive workplace, with benefits and programs to allow work to fitwithin employees’ lives; an emphasis on a culture of recognition.

Employees have ample opportunity for continuous learning, professional development, and career progression; leaders support and facilitate internal mobility for employees.

Inspirational leadership invests in people, communicates honestly, and fulfills the organization’s mission, vision,and purpose. Leaders set the narrative and inspire employees.

Open culture that encourages cross-organizational collaboration and provides employees with the resources, time,and information necessary to do their jobs.

Management guides and empowers employees by setting clear goals, coaching for high performance, developingfuture leaders and providing continuous feedback.


So, are you ready for the future of work and what it means?

People as workers People & intelligent machines co-working

Homogenous workforce Diverse workforce

Significant permanent workforce Significant contingent workforce

Hierarchical, siloed Networks of collaborative teams

Traditional office Frictionless, smart workspaces

Slow to adapt Nimble

Innovation department Innovation by everyone

Command and control leadership Inclusive leadership

Knowledge Emotional, creative and digital intelligence

Profit driven Purpose driven

Technology owns people Technology works for people

OLD RULES NEW RULESTHE CHANGING WORLD OF WORK


“What we need to do is always lean into the future; when the world changes around you and when it changes against you – what used to be a tail wind is now a head wind –you have to lean into that and figure out what to do…”

—Jeff Bezos

Source: https://www.geckoandfly.com/20248/jeff-bezos-quotes/

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