1 INTERNATIONAL BULLETIN OF IBC HR COMMITTEE GAZPROM INTERNATIONAL TRAINING April 2020 Issue 7 This is an International Bulletin for HR employees of PJSC Gazprom and for members of the International Business Congress (IBC) Working Committee «Human Resources». The purpose of the bulletin is to inform employees and managers with the latest international HR news, HR developments and HR trends so that they can use the knowledge and insights to reflect on it by making HR policies and plans. This Bulletin is issued regularly by Gazprom International Training B.V. Editorial: Rob Veersma This Bulletin is for internal use only and contains a selection of previous elsewhere published articles. Dear Reader, In this seventh issue of the Bulletin we are proud to present you the latest insights regarding the digitalization of HR, and how HR could contribute or could become more digital itself. We put some emphasis on recruitment and how this is influenced by digitalization but still keep it human/ personal. We close this issue with “digital nomads”, who does not want to be one. This bulletin was designed and prepared before the pandemic of COVID-19. In connection with the changed situation, the next issue of the bulletin will be devoted to a new reality, including articles on remote working, distance learning and other aspects related to the changed situation at work and in HR. Enjoy reading, be healthy! Rob Veersma Director Training – Gazprom International Training B.V.
Transcript
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INTERNATIONAL BULLETIN OF IBC HR COMMITTEE
GAZPROM INTERNATIONAL TRAINING
April 2020 Issue 7
This is an International Bulletin for HR employees of PJSC Gazprom and for members of the International Business Congress (IBC) Working Committee «Human Resources».
The purpose of the bulletin is to inform employees and managers with the latest international HR news, HR developments and HR trends so that they can use the knowledge and insights to reflect on it by making HR policies and plans.
This Bulletin is issued regularly by Gazprom International Training B.V.
Editorial: Rob Veersma
This Bulletin is for internal use only and contains a selection of previous elsewhere published articles.
Dear Reader,
In this seventh issue of the Bulletin we are proud to present you the latest insights regarding the digitalization of HR, and how HR could contribute or could become more digital itself. We put some emphasis on recruitment and how this is influenced by digitalization but still keep it human/ personal. We close this issue with “digital nomads”, who does not want to be one.
This bulletin was designed and prepared before the pandemic of COVID-19. In connection with the changed situation, the next issue of the bulletin will be devoted to a new reality, including articles on remote working, distance learning and other aspects related to the changed situation at work and in HR.
Enjoy reading, be healthy!
Rob Veersma
Director Training – Gazprom International Training B.V.
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DIGITAL HR
(Edited from Deloitte Insights, 2017)
The all-digital world is changing how we live, how we work, and how business is organized and conducted. For HR and business leaders, this digital transformation poses two fundamental challenges.
First, HR can help business leaders and employees shift to a digital mind-set, a digital way of managing, organizing, and leading change.
Second, HR has the opportunity to revolutionize the entire employee experience by transforming HR processes, systems, and the HR organization via new digital platforms, apps, and ways of delivering HR services.
• Today there are more than 7 billion mobile devices in the world, and more than 40 percent of all Internet traffic is driven by these devices. Yet HR teams remain far behind in deploying mobile solutions. Fewer than 20 percent of companies deploy their HR and employee productivity solutions on mobile apps today.
• Designing mobile apps and considering the end-to-end user experience are new disciplines for HR, combining design thinking with apps, video, social, and mobile technologies.
• Digital HR, which brings together social, mobile, analytics, and cloud (SMAC) technologies, represents a new platform for improving the employee and candidate experience. While vendors are now delivering solutions, companies should build their own integrated digital HR strategies and programs.
SOME DEFINITIONS
What is digitisation, digitalisation, and digital transformation?
• Digitisation: the physical process of turning information into bits and bytes
• Digitalisation: the use of digital technologies to add value
• Digital Transformation (DX): digitalization across a company or industry, where it is embedded in every decision, process, service and product
It encompasses technology that most people in the industry are familiar with - e.g. cloud computing, robotics – with those that they may be aware of but not familiar with – e.g. Machine Learning and Blockchain - and some that are new to them – such as Augmented Reality, and the Industrial Internet of Things.
5 HR TECH TRENDS TO LOOK OUT FOR IN 2020 AND BEYOND
(Edited from The HR Observer, 2020)
Records show that companies spent more than $380 billion on HR tech in 2018, which represents a 9.5 percent year-over-year increase. Experts expect this increase in HR tech spending to continue to rise well into the future. With increased demand comes an onslaught of new tech products on the market. Today’s employers must be savvy enough to filter through the array of options and find the right
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technologies to enhance HR functions in their workplaces.
WHAT IS HR TECH?
In basic terms, HR tech consists of various software applications that help to improve HR processes within the company. HR departments use technology for everything from employee management to talent acquisition to employee payroll, and everything in between. The primary goals of HR tech are to streamline HR practices, cut costs, boost employee engagement, and improve outcomes.
EMERGING HR TECH TRENDS
In order to determine which HR technologies are right for your business, it’s important to first understand emerging trends and how these trends can improve effectiveness. Here’s a look at the top five HR tech trends to look out for in 2020 and beyond.
1. CLOUD MIGRATION
Companies have been transferring data management to the cloud for several years and now this process includes the transfer of HR data management. In fact, according to the 2017 PwC Global HR Technology Survey, more than 70 percent of companies now manage at least one HR process in the cloud. As cloud security has improved and the demand to collect, store, and track massive amounts of data, it makes sense that more and more companies are turning to cloud migration. This step avoids the need to store this data in-house.
2. ACTIVE LISTENING
While technology can make managing employees more efficient, it’s important for employers to maintain a human element. Active listening through tools, such as chat-bots, pulse surveys, and check-ins can improve engagement in the workplace by allowing employees to provide feedback quickly and effectively. Also, HR active listening tools give employers the power to go well beyond the standard
annual survey to obtain real-time, consistent employee feedback.
Emerging technology doesn’t only collect employee feedback, but it helps employers act on this feedback by providing next step prompts and keeping everyone up to date as to the status of the feedback. Integrating active listening technology into HR practices enables employers to improve employee engagement throughout the workplace.
3. AI AND MACHINE LEARNING
Companies have been collecting employee data for years. Now, thanks to AI (Artificial Intelligence) and ML (Machine Learning), employers can analyse this data and use it to make real and meaningful change in the workplace. For example, employers can monitor employee emails and in-house
communication tools to find ways to improve team collaboration.
AI and ML technologies go even further by providing push prompts to company leaders, managers, supervisors, and even employees. For example, supervisors may receive push prompts that recommend various training programs for their teams. Or, employees may receive notifications that encourage them to take a break after hours of nonstop work. The goal of this type of push prompt is to improve productivity across the board.
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4. EMPLOYEE RECOGNITION
According to Gallup’s recent State of the American Workplace report, enhancing employee recognition in the workplace can improve quality, reduce shrinkage, and decrease absenteeism. To achieve results like these, however, employee recognition must go well beyond the annual performance reviews. Today’s employers want real-time recognition and rewards. The reality is that employers must embrace emerging technology if they want to provide a high level of recognition and rewards that today’s employees have come to expect.
5. DEDICATED HR TECH ROLES
This increase in HR technologies is forcing employers to on-board HR staff with IT experience. In fact, many companies have created a dedicated HRIT (Human Resources Information Technology) role within the company. The need for these advanced skills in the HR department will also intensify in the coming years.
Having a separate IT department will not be enough. Employers must ensure that IT-knowledgeable staff is a core part of the HR team. This step will make sure that your company is not just integrating any type of technology into the HR processes, but that they are investing in the right type of HR tech.
It’s important for companies to make HR tech a priority. After all, HR effects nearly all aspects of the business. With the right technology in place, your HR team can do more with fewer resources and less time. This, in turn, can improve productivity, cut costs, boost sales, and ultimately improve the company’s bottom line.
THE CANDIDATE EXPERIENCE – A TIMELY REMINDER
(Edited from ChapmanCG Global HR Update Q1 2020)
As we enter one of the busiest times of year for hiring HR professionals, the question of how to attract the best talent surfaces once again. Organizations continue to drive enterprise-wide transformations fuelling the need to review internal talent capability and evaluate whether to upskill or upgrade talent to meet future goals. This is top-of-mind for CHROs and CEOs alike.
Where talent mobility is not possible, what can you do to ensure you are attracting the best talent? How do you remain memorable? What is the easiest way to lose a qualified candidate…? To a large extent, the answers to these questions come down to candidate experience.
Below are some common experiences I’m sure we can all relate to.
“I was pleasantly surprised once I had the chance to meet with the team… I found out so much more about how the organization works and what drives the leadership team. They were all so passionate. I wasn’t able to feel that from their website.”
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“While on the face of it the role is intriguing, it doesn’t seem that HR and the business are aligned on some of the key deliverables…they seem to be quite far apart.”
“I’m sure he was in a taxi or maybe an Uber… I could hear a radio in the background, and he didn’t seem engaged. I think he was rushed.”
“We only had 25 mins as she was late and then had to leave early.”
There are many more examples that I’m sure are running through your mind right now. We talk a lot about the importance of employer branding and EVP, listening to what the person on the street is saying about our company. Yet all the hard work and time invested to build a positive and consistent message is for naught if the interview experience is rushed, ill-planned, and lacks robust follow-through. First, second and third impressions are important, and they do last. Word of mouth is powerful, and technology has of course given us a megaphone where we once whispered our discontent to only those closest to us.
The outcome is as important as the journey.
“Our first impressions are generated by our experiences and our environment, which means that we can change our first impressions… by changing the experiences that comprise those impressions.” – Malcolm Gladwell
HOW TO BEGIN WITH YOUR DIGITAL RECRUITMENT STRATEGY
(Edited from HackerEarth, 2017)
The labour economy has long transitioned from a closed labour market to an open and mobile one, characterized by a restless workforce which is quick to jump to meatier opportunities. High-performing individuals know that the conversation has shifted from “what can you do for us” to “what can we do for you.” While the economy has changed phenomenally, some companies are still stuck using outdated recruiting methods and are struggling to attract and retain quality talent. An effective way for such companies to reinvigorate their recruiting efforts would be to utilize digital recruiting tactics.
WHAT IS DIGITAL RECRUITMENT?
Digital recruitment is the process of leveraging technology to the source, attract, assess, select and hire candidates for vacant positions. This includes leveraging job boards, career websites, mobile recruiting, online assessments, and social recruiting. While most companies these days use at least one of the aforementioned tactics, they are still a long way from being classified as a digital strategy. So, what are the different ingredients that make-up a digital recruitment strategy? How can you spice up your recruiting stew by adding some nuggets of digital into it?
MOBILE-FRIENDLY CAREERS WEBSITE
Optimizing career websites for mobile might seem like an obvious thing to do, but surprisingly not many companies are doing it. Companies must ensure that their careers website, landing pages, or any other digital resources are readable and work on mobile devices.
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INCORPORATE DIGITAL RECRUITMENT STRATEGY INTO EVERY STEP
Examine your current recruiting process to see how digital recruitment tactics can make them more efficient.
LEVERAGE SOCIAL MEDIA
There are many advantages to using social media for recruiting – starting from the quality of hire. Employers who used social media to hire found a 49% improvement in candidate quality over candidates sourced only through traditional recruiting channels. It is also an excellent channel to spread brand awareness.
CUSTOMIZE IT TO YOUR BUSINESS
A company’s digital recruitment plan is as unique as the company and its goals. Something that might work for your competitors might not work for you. We cannot emphasize enough the importance of customizing the recruitment plan to a business and its goals. If your competitors are using Instagram, for instance, examine if
PARTNER WITH TECHNOLOGY
Any discussion on digital recruitment is incomplete without talking about the technologies that support it. Recruiters can use a recruitment management system (if they’re not using one already) to post jobs on the website and multiple job boards, screen and rank applicants, and integrate with their human resource management tools for seamless operations.
Companies can use online assessment tools (see article Cubiks) to identify high-performing individuals and screen them using convenient tests which can be administered remotely.
Companies that have traditionally relied on checklists of college degrees and experience to screen candidates are increasingly finding the approach redundant, not to mention time-intensive and one-dimensional. Recruiting tools use sophisticated algorithms to assess innate capabilities while giving adequate weighting to the traditionally-important factors such as education and experience and help companies find smart talent.
LOOK TO THE FUTURE
Traditional recruiting has passed the baton to digital. The time has come to adapt, to transition from dinosaur recruiting strategies to technology-backed modern ones. By not utilizing these techniques, companies are not only letting go of an opportunity to attract quality talent but also relinquishing a chance to reduce the burden on recruiters.
Savvy candidates are evaluating you like they would when making purchase decisions.
So, companies that are not hitting multiple channels to catch their attention, engage them, and finally convert them with an easy application process will find themselves on the losing side of this battle for talent.
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CUBIKS1: DATA DRIVEN HIGH POTENTIAL IDENTIFICATION
• Jouko van Aggelen: Chief Solutions Officer • Dimmy van Zanten: Chief Operations Officer
It’s long been established that for future success, organisations need to understand the attributes of their workforce, identify top talent and implement processes to develop these people. Yet, many executives still find they have an insufficient grasp on what type of talent they need to drive business success.
WHERE DO YOU START?
Start from the top. Senior executives should discuss how confident they feel (or not) that their organisation has the capability to meet future challenges and whether they are able to identify talent in the business to support this. In many organisations, there is a noticeable perceived gap between the current pipeline of internal leaders and the future requirements of the business. Think of a national football team that is unable to find new talent as their current stars approach retirement.
WHAT CAN YOU DO ABOUT THE TALENT GAP?
Consider prioritising internal talent development over reactive mass recruitment campaigns. Uncertainty around your talent pipeline doesn’t necessarily require mass external recruitment as many companies recognise that growing leaders from within is more sustainable for achieving key
1 Cubiks is an international assessment and talent development consultancy that helps many of the world’s most successful companies to design and implement robust solutions that overcome key talent challenges. They work globally with many companies in the energy sector, such as Shell, E.ON, BP, Equinor, ADNOC and Petronas. They apply our psychometric solutions, provide
business goals. Focus can often usefully shift from a short-term reactive recruitment campaign to a long-term proactive development strategy for internal talent, making high potential development a hot topic on the executive agenda. Once the priority has
been established, it is then HR & Talent’s responsibility to identify (typically through assessment) and nurture (typically through development) the organisation’s future leaders. The first step is to have a clear organisational view of what it means to be a high potential.
WHY SHOULD YOU HAVE A CLEAR VIEW OF POTENTIAL?
At Cubiks we define potential as the ability to be successful in a role that goes beyond a person’s current responsibilities. Rather than simply looking at those who will move up at speed. Consideration needs to be given to those who can grow into critical roles (technical or expert). Performance is a measure of an individual’s ability to deliver results in their existing role, whereas potential is very much about the future.
With this in mind, it is important to define crucial qualities and attributes that indicate potential and measure these in objective and reliable way. Additionally, talent assessment and development must be an embedded part of a broader talent management strategy, focused on future-proofing the business for tomorrow’s challenges by creating a steady pipeline of talent. This is why executive support is fundamental as these senior leaders must act as the guardians of an organisation’s direction.
HOW CAN PEOPLE DATA HELP IDENTIFY POTENTIAL?
The effective use of data through people analytics that draws upon behavioural (personality and
deep insights to the board using people analytics and advice about their executive leadership team fit. Cubiks offers an advanced portfolio of personalized talent solutions for more than 1,000 clients in over 50 countries. With over 200 people working across 13 countries worldwide and headquartered in Guildford, UK, they combine international expertise with deep local understanding.
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competency), ability (cognitive ability) and performance data (KPIs, sales targets, performance appraisals, promotions) collected consistently over time gives an organisation a much richer view of their talent landscape. Although most organisations know that finding talent from within is key to success, many still apply traditionally unscientific methods when doing so, even when data is an integral part of their core business. Take a reputable marketing firm working with data every day to understand consumer behaviour and communicate this to their clients. The executives in this marketing firm still rely on opinion and gut instinct when making critical people decisions. From our experience, when it comes to people, data still can be perceived as something negative that takes away the human element from decisions.
While opinions and gut instincts matter, to identify potential they must be used alongside valid and reliable people and performance metrics collected over time and analysed objectively. This will not only improve your people decisions, but also grow your people’s respect and trust in your objectivity and make your decisions legally defensible.
WHICH BEHAVIOURS LINK TO POTENTIAL?
Identifying the behavioural characteristics (personality and/or competency) that are common amongst successful leaders is one way that companies can start to apply data in talent decision-making processes. Cubiks’ Model of Potential helps take this a step further as it provides four dimensions (Bridge, Grasp, Reach and Flex) as validated indicators of general potential which are relevant across roles, organisations and regions. Gaining a clear view of these critical factors in your talent is a useful starting point.
To dive deeper, organisations must invest in the accurate collection and analysis of data on the behaviours which are required to meet the pressing challenges of the business today and tomorrow. This could be viewed as assessing an employee’s specific potential to perform in contextually relevant situations. For example, during times of growth, innovation and self-confidence may be characteristics required of your talent pool. Yet during times of austerity; conscientiousness and a strong attention to detail may be more important. These detailed attributes are normally measured by robust and contextually-specific assessment and development centres.
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HOW DO YOU COMBINE PERFORMANCE WITH POTENTIAL?
Typically, talent management professionals try to identify potential (for a defined level or a specific role) through behavioural assessment against a competency framework or talent profile. The quality of this data can be greatly enhanced by combining it with performance data (past and present). This is where people analytics comes in, to translate this data into measurable insights for the organisation. As a result, an organisation can begin to make clear data-driven decisions. By doing this, they can ensure they are more informed about who they will prepare for critical roles, what types of development is required for their talent pool or if the organisation is lacking capability in certain key areas of the business.
Once an organisation combines data in a different way, trends can be identified between those selected as high potentials and those who subsequently go on to perform effectively over the short and long term. It may be that the high potential process is missing key people, e.g. insufficient representation in certain regions or functions. By incorporating an ongoing sequence of people analytics, you will start to see these trends and improve your talent management cycle based on facts rather than assumptions. These insights can also be used to make better informed decisions when recruiting external HiPos.
KEY CONSIDERATIONS FOR HR AND TALENT MANAGEMENT
• Identify high potentials by assessing an employee’s capability and their drive to deal with increasingly complex challenges in the future.
• Get a clear understanding of both general and specific potential in the workforce.
• Compare potential data with performance data to get a holistic view of the talent landscape.
• Consider using people analytics to monitor the progress of a talent pool and draw insights about future performance.
2 Indeed is the #1 job site in the world with over 250 million unique visitors every month.
By doing the above, HR and TM are better equipped to provide senior executives with a clear talent strategy to drive the business forward.
MOBILE JOB SEARCH CUTS ACROSS GENERATIONS — NOT JUST WITH MILLENNIALS
While the popular cliché depicts Millennials as having their eyes perpetually glued to their phone screens, jobsite Indeed2 data shows that there is much less of a difference than you might think when it comes to how the generations conduct their job search.
In fact, whether we’re talking about Millennials, Gen Xers or Baby Boomers, each age group does most of its searching on mobile devices.
While Millennials may be the most active on mobile — 78% used mobile devices to find jobs as of 2016 — Gen Xers aren’t far behind, with around 73% searching for work on mobile devices. In recent years, Baby Boomers have seen the highest increase in mobile job search among the three generations, with around 57.2% of Boomers active in 2016, up from just 51.2% in 2014.
All of these numbers are an increase on previous years — which means that employers who do not have job listings optimized for mobile recruiting face a greater risk than ever of missing out on talent.
What would be the percentage (%) in 2020?
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DIGITISATION – GERMANY LATE TO THE PARTY BUT NOW EMBRACING IT
Digitisation is probably the most popular word in Germany when contemplating the economy and the future of work. In this respect, the landscape is no different to other European or global markets, but we think it’s fair to say Germany has been ‘late to the party’! We have adopted technology very slowly that has been ubiquitous for years elsewhere. Whilst there can be a general conservativism in some areas, once we decide to join a trend we feel the need to master it! In regard to HR it seems many companies are now rolling out HR information systems, cloud-based applications and employee self-service intranets at the same time. It’s a good time for technology and the Human Resources function which will be benefiting from this widespread change in the long-term. The beautiful German word Innovationsstau (innovation pile-up) is especially true for the public sector and SMBs3.
BEYOND HIRING: HOW COMPANIES ARE RESKILLING TO ADDRESS TALENT GAPS
(Edited from McKinsey & Company, 2020)
As technologies and business models continue their rapid evolution, companies are experiencing a step change in the workforce skills they need to thrive and grow. Previous research has shown that as many as 375 million workers globally might have to change occupations in the next decade to meet companies’ needs and that automation could free employees to spend as much as 30 percent of their time on new work. Now, in a
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new survey from McKinsey & Company on future workforce needs, nearly nine in ten executives and managers say their organizations either face skill gaps already or expect gaps to develop within the next five years.
Respondents see a need for their organizations to address potential skill gaps in a wide range of business areas. When asked where the greatest need exists, they most often say data analytics, followed by IT management and executive management. Similarly, when looking at the specific skills with the greatest mismatch between current supply and what will be necessary in the next five years, respondents expecting skill gaps to open during that time most often identify advanced data-analysis and mathematical skills.
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ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN WILL DISRUPT LIFE AS WE KNOW IT – HERE’S HOW HR CAN MAKE THE MOST OUT OF IT.
(Edited from ChapmanCG Global HR Update Q1 2020)
While we do not expect the robots to form unions any time soon, Isaac Asimov (1920-1992) may not have been too far off the mark in his assumptions. The 20s will see the rise of the quantum computer which will enable artificial intelligence to live up to its name. The shift has already started and the revolutionary aspects included can hardly be overestimated. Imagine the chatbot on your website being able to conduct full-scale interviews, and assess candidates in a more accurate and less biased way than its human counterpart. Europe’s vibrant start-up scene already sees some interesting companies offering solutions that scratch the surfaces of this. But also established players like SAP have gone down the AI
lane. Stefan Ries, CHRO, said that “while artificial intelligence and machine learning cannot replace the human factor, they sure will be able to predict individual and collective behaviours soon”. This will offer more possibilities for HR managers, e.g. to customise talent management programs down to every single employee.
By the end of the coming decade, Blockchain is estimated to be a multi-trillion-dollar business, disrupting whole value chains and sectors.
Blockchain’s huge advantage to traditional data storage lies in its decentralisation and safety. Once saved data cannot be changed again, only added. This makes it especially interesting for compliance officers and lawyers. In human resources it is expected that this technology will penetrate every aspect, starting with payroll and quickly spreading into talent acquisition and talent management. For HR leaders, the advice has to be: get tech ready now. The HR Director of the 20s must be savvy in technology even more than in labour law, which will also become more automated. We are observing this more in the HR profession and where there is a lack of ‘digital’ experience, the next best trait is to demonstrate learning agility, flexibility and learning velocity. Disruption and innovation in traditional HR are sought after but there is a respectful and pragmatic approach required – the change needs to be fostered with finesse.
Example:
Putting Data at the Center: All Subsurface and Wells Data Stored in a Single Data Platform
The Open Group Open Subsurface Data Universe™ Forum is developing a standard data platform for the oil and gas industry, which will reduce silos and put data at the center of the subsurface community. The OSDU data platform will:
• Enable secure, reliable, global, and performant access to all subsurface and wells data • Reduce current data silos to enable transformational workflows • Accelerate the deployment of emerging digital solutions for better decision-making • Create an open, standards-based ecosystem that drives innovation
This will revolutionize the industry’s ability to deliver new capabilities and reduce implementation and lifecycle costs across the subsurface community.
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DIGITAL COMPETENCE
Digital Competence is the set of knowledge, skills, attitudes, abilities, strategies, and awareness that are required when using ICT [Information and Communications Technology] and digital media to perform tasks; solve problems; communicate; manage information; collaborate; create and share content; and build knowledge effectively, efficiently, appropriately, critically, creatively, autonomously, flexibly, ethically, reflectively for work, leisure, participation, learning, and socializing.
DIGITAL TRANSFORMATION IN THE OIL & GAS BUSINESS
(Edited from Warren Business Consulting, 2019)
In boardrooms across all industries, digital transformation (or DX) is a hot topic. It brings both disruption and opportunities – there’s huge potential to create value but also many challenges to manage. Some industries have embraced and exploited it, others see the potential but view it more warily. Where does the oil & gas business sit in this? The biggest challenge is not technology, but leadership. This is an industry in transition on
multiple levels, and DX is one of the most important elements in that transition. Whether a company will make DX a successful part of their transition is a question of leadership more than a question of technological expertise. Corporate culture, communication and planning, training and collaboration are all more important than the technology itself. And in a tight market for specialist talent, Learning & Development teams have a major role to play in implementing a successful DX strategy.
WHAT’S AT STAKE – THE BENEFITS
Why should energy companies invest time and effort in their digital transformation? Will it really make such a difference? Numerous studies have tried to put a value on DX for the whole industry and for society, but it can be a challenge to quantify the value within a company. Let’s start with the big picture: World Economic Forum/Accenture estimates the industry could benefit by as much as of $945bn of additional value. They put the additional potential societal impact at $637bn, with a 1.3m tonne reduction in carbon emissions. Ernst&Young, citing a report from Oxford Economics, suggests that adoption of the “Internet of Everything” by the oil
and gas industry could add $816bn to the global economy by 2025. Wood Mackenzie, focusing just on upstream costs, calculated the industry could save an annual $75bn by 2023.
For an industry in transition that needs to convince society of its contribution, these are compelling numbers. Within each company, though, identifying the real financial impact of a new approach can be much harder. Improvements tend to be incremental, each one building on the last; data may not be easily accessible, especially in highly decentralised, siloed organisations, where vested interests may like to say “we’ve always done it this way”; legacy systems and processes get in the way and may cost more in the
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short term to replace. These are some of the management challenges facing companies trying to build a business case for investment in DX.
BARRIERS TO SUCCESS
Predictably the barriers to success mirror the success factors – get those wrong, and the project is likely to fail. At the top of the list is having a corporate culture that resists change – a leadership and communications issue.
More specifically, it is the challenge of a lack of mutual understanding - “the business perspective is often missing” and “tech people don’t have a nuanced understanding of the sector”, from the industry leaders, while tech experts complained of “turf wars and silos” and the need for engineers to understand that “traditional ways are dead”.
LOOKING AHEAD
(Edited from McKinsey & Company, 2020)
As more tasks become automated and companies redesign jobs to encompass different activities, it will be critical to enact strategies that help employees develop the new capabilities needed. This will be a major undertaking. Most companies will prioritize learning and development as they try to close skill gaps. Companies that have not yet begun reskilling their employees should consider taking these actions:
1. Understand which skills you need. Companies might not recognize skill gaps in their workforce, but they probably have some already. A diagnostic can show which skills the workforce possesses and which will be necessary in the future.
Understanding which skills to develop in the workforce requires a rigorous, empirical approach to comparing the supply of each skill with the business’s strategic needs.
2. Be strategic in how you close gaps. Companies must decide what actions they should take to address each gap. Filling most gaps will require a mix of approaches, such as hiring and reskilling. For each approach, it is necessary to decide which specific programs or initiatives to implement to gain the right skills in the workforce. This decision also includes
candidate selection: Which employees should be reskilled first? Meanwhile, companies should prepare the workforce for change by explaining the reskilling agenda, including each employee’s future role and reskilling options.
3. Build training capabilities and partnerships. Applying the science of learning will improve the outcomes of any reskilling effort. Companies should structure the learning journey to help employees retain new skills and apply them to their role. To do so, the reskilling curriculum should blend in-person and digital learning opportunities. Employees should be assigned to train in a cohort of
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employees with similar experiences and should be involved with projects
that allow them to practice skills while they learn. Because organizations may need to cultivate a broad range of workforce skills, they will likely need to assemble learning resources from multiple providers—for example, online platforms, universities, and technical organizations.
Fostering a culture of lifelong learning also can encourage
employees to develop new skills.
GETTING PRACTICAL ABOUT THE FUTURE OF WORK
(Edited from McKinsey Quarterly, 2020)
What story will people tell about your organization over the next ten years? Will they celebrate an enthusiastic innovator that thrived by adapting workforce skills and ways of working to the demands of the new economy? Or will they blame poor financial or operational results, unhappy employees, and community disruption on a short-sighted or delayed talent strategy?
By 2030, up to 30 to 40 percent of all workers in developed countries may need to move into new occupations or at least upgrade their skill sets
significantly. Research further suggests that skilled workers in short supply will become even scarcer. Some major organizations are already out front on this issue. Amazon recently pledged $700 million to retrain 100,000 employees for higher-skilled jobs in technology (for example, training warehouse employees to become basic data analysts). JPMorgan Chase made a five-year, $350 million commitment to develop technical skills in high demand—in part targeting its own workers. And Walmart has already invested more than $2 billion in wages and training programs, including Walmart Pathways, which educates entry-level employees about the company’s business model and helps workers develop valuable soft skills.
Any company that doesn’t join the early adopters and address its underlying talent needs may fall short of its digital aspirations. Equally important, senior managers may miss opportunities to work collaboratively with employees to create a prosperous and fulfilling future for all stakeholders—the communities where the company operates, its workforce, and the wider society that ultimately sanctions its activities.
ROLLING OUT THE ROAD MAP
A successful transformation involves three broad phases. At first blush, they appear to be commonsensical, but each of them involves steps that are new to most organizations.
First comes an initial period of scouting. In this stage, the company develops a single vision of its digital
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and automation future and the total value of that future. It also identifies the most important skill gaps—looking at future needs, not just extrapolating from the past (the norm in much workforce planning). Then it assesses the organization’s readiness to deliver.
Second, there is a period of shaping, to redesign work for the demands of a more digital future and to create upskilling programs, often together with employees. This phase also involves developing the infrastructure of what we call a talent accelerator to facilitate the deployment of talent in the most important future roles.
The third phase requires shifting the organization’s suite of talent-related activities onto a bigger scale. This work constitutes an acknowledgment that institutional capabilities to help employees adapt to the future of work are just as important as near-term (and seemingly more urgent) talent priorities.
WHY BE A DIGITAL NOMAD?
(Edited from The HR Observer, 2020)
Create the life you want! Be Free! Work where you want and travel! These are only some of the advertisements calling for digital nomads. Just think, what would it be like to have complete control over your life? Become a digital nomad and take a step in the direction you want to live. There are many reasons to become a digital nomad and several reasons to choose this lifestyle include:
FREEDOM
Freedom is the number one reason for people to adopt the digital nomad lifestyle. Digital nomads are those who could care less about what people think and more about the quality of their lives. Digital nomads have the freedom to conform to the life they want. “Be who you are” is the watch cry of digital nomads.
TRAVEL
Unlimited travel is a dream you can turn into reality when you are digital nomads. Create the lifestyle you want and form a business you can take with you and work on from anywhere in the world. As a digital nomad, you can travel and see more of the world than you ever dreamed.
DON’T HOLD ON TO TRADITIONS
A digital nomad has a chance to let go of what is holding them back in life in every aspect, including emotionally, spiritually, and even physically. Most digital nomads don’t have many possessions. They live a minimalistic lifestyle that helps them let go of possessions and not worry about having “things.” Being a digital nomad is a chance to get yourself out of the negative culture that many office workers experience. If you are busy and focused on traveling and building a beautiful life for yourself, you can gain a new perspective on life.
BUILD YOUR OWN LIFE
Be a digital nomad and find your path to a dream lie. Create your life story based on what you enjoy and what motivates you. The wonder of being a digital nomad is you can start to build your work around your life – not your life around your work. Work as much or little as you want or need. You decide when and where to work on any given day. You decide the time you work. You can give your clients your schedule and work when and where you want to on any given day.
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FIND HAPPINESS.
Isn’t happiness what we all seek? Let go of what’s holding you down and embrace the life of freedom that makes you happy. Find a life you can live on your terms. You have found true inner peace.
YOU ARE NOT ALONE
It’s a bit daunting to be a digital nomad. It takes work, yes you do have to work, and it can be isolating. Remember, you are not alone. There are hundreds of digital nomads, and most of them are interesting and happy people. You can find companionship in co-working and living areas, staying with interesting people in their homes, and embracing a different culture.
If the digital nomad lifestyle is what you are looking for, what’s stopping you from grabbing on to your dreams? Being a digital nomad isn’t about escaping what you do in a day. It’s about living how and where you want to live. It’s not just taking a break from everyday life, but a dream life you can own if you only let yourself.
100 JOBS OF THE FUTURE
Imagine: your child is saying to you: “I want to become a Swarm artist”. Check what it is on: https://100jobsofthefuture.com/report/jobs/
8. DigiTech troubleshooter 9. Energy and data systems installer 10. Ethical hacker 11. Gamification designer 12. Integrated home technology brokers 13. Machine-learning developer 14. Mechatronics engineer 15. New materials engineer 16. Quantum computer programmer 17. Robot ethicist 18. Robot mechanic 19. Satellite network maintenance engineer 20. Shadowtech manager 21. Smart dust wrangler
PEOPLE JOBS
22. 100 year counsellor 23. Aesthetician 24. Aged health carer of the future 25. AI educator 26. Community support worker 27. Cross-cultural capability facilitators 28. Cyborg psychologist 29. Decision support worker
30. Digital memorialists and archivists 31. Displaced persons re-integrator 32. Drone experience designer 33. Early childhood teacher 34. Lifelong education advisor 35. Local community co-ordinator
36. Nostalgist 37. Personal brand manager & content curator
"This is a watch I got from my grandfather and it's over 75 years old. You can have it! But before I give it to you, I want you to go to the jewellery store to ask if you could sell them and what they would give for it."" I went there and came back to my dad and said, 'the watchmaker wanted to give me €5 for it because it's old'. Then my dad said to me, "Take it to the coffee tent and tell them you want to sell it and find out what they would like to give for it." I went and came back and said, 'they wanted to give me €1,' dad'. My dad said, "Go to the museum now and show them this watch and tell them you want to sell it." I wonder what they want to give you for that.' I went and came back and told my dad, 'they offered me €1 million for this watch'. My father said, "I wanted to explain to you how it works, the right place, and people will appreciate you." If you're not with the right people and you're not appreciated, don't be angry or disappointed.' "Those who know your value are the ones who value you. Don't stay in a place where they don't appreciate you." Know and feel your worth
