Deloitte Shared Services, GBS & BPO Conference · Deloitte Shared Services, GBS & BPO Conference...

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

Transcript of Deloitte Shared Services, GBS & BPO Conference · Deloitte Shared Services, GBS & BPO Conference...

Reto Bruegger, Head of B2B / Nestlé

Nespresso S.A.

Mark Catchlove, Insight Group

Director

Martin Laws, Partner, Occupier Advisory

Deloitte Shared

Services, GBS & BPO

Conference

Future of Work: Evolving

Shared Services in the

context of the future of

work: Threat or

opportunity?

Future of Work Evolving Shared Services

in the context of the future

of work: Threat or

opportunity?

Partner, Occupier Advisory

Martin Laws

What is the future of work?

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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.

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

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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 2025.”

Global Human Capital Trends (Deloitte, 2014)

Talent

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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

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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

55-64 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

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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

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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

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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

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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

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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

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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

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What is the future of work? Ever increasing globalisation…?

Place

“By 2020, a typical global organisation will place people in 33 world-wide

locations, an increase from 13 locations in 1998.”

Global Human Capital Trends Survey (Deloitte, 2014)

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What is the future of work? Ever increasing globalisation… with changing global dynamics…?

Place

“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 2007. And by 2030, China, India and Brazil will

become the world’s major exporters of qualified talent.”

Workplace 2030: Built for us (Deloitte, 2013)

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What is the future of work? Ever increasing globalisation… with changing global dynamics… and emerging

growth locations…?

Place

“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)

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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

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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

Today’s Shared Services under

threat?

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“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)

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

process driven tasks

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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)

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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)

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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)

Shared Services to lead

change?

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“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)

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

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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

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Shared Services to lead change? …which are often considered in siloes, but are inextricably linked

Talent Technology Place Space

Talent Strategy

Organisational

Transformation

Change

Management

Mobility

Security

Infrastructure Relocation

Implementation

Tax & Incentives Collaboration

Workforce Agility

Workplace Vision

Real Estate

Transformation

Footprint optimisation

Location Research Workplace Design

Real Estate Strategy

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Shared Services to lead change? …which are often considered in siloes, but are inextricably linked

Talent Technology Place Space

Talent Strategy

Organisational

Transformation

Mobility

Security

Infrastructure Relocation

Implementation

Tax & Incentives Collaboration

Location Research Workplace Design

Real Estate Strategy

Change

Management

Workplace Vision

Real Estate

Transformation

Footprint optimisation

Workforce Agility

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Shared Services to lead change? But how do you adapt in an ever changing world?

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?

A new reality?

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 ever-

increasing regularity.

Or constant evolution?

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 ever-

changing priorities.

Frequent adaptation

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Shared Services to lead change? …and what should functional heads be focusing on?

CHRO

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

CIO

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

COO

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

CREO

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

Scenarios 2018

How will work change

through 2018

Insight Group Director

Mark Catchlove

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Scenarios 2018 How will work change through 2018?

“Chance favours the prepared mind” Louis Pasteur

Scenarios 2018 How will work change through 2018?

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Scenarios 2018 Swarm focused work

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Scenarios 2018 Hackable and Kinetic Nodes

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Living Office Engine of Prosperity

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In the new landscape of work, a

dynamic equilibrium of shared

passion and profit delivers greater

performance and value for both

individuals and organisations.

Future of Work

The Nespresso story

Head of B2B / Nestlé Nespresso S.A.

Reto Bruegger

The Nespresso story Turning a simple idea into a winning formula

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….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

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A fully integrated value chain From cherry to cup

1 - 2% of the world’s

green coffee crop

5

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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).

Nespresso 2000 to 2014 development 15 years of strong growth

……

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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Phase 4

Shaping the global

coffee culture

Phase 5

Solidifying global

coffee leadership…

Phase 1

Pioneering years

Trial and error

Phase 2

Prove acceptance

and profitability

Phase 3

European

expansion

The 5 Phases of development Impact on the organisation and people

……

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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Phase 4

Shaping the global

coffee culture

Phase 1

Pioneering years

Trial and error

Phase 2

Prove acceptance

and profitability

Phase 3

Eurpean

expansion

The 5 Phases of development Impact on the organisation and people

Culture Corporate / Process + Efficiency

orientated

Outlook 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: Overseas expansion shows limits to a

Europe-centric model

……

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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Phase 3

European

expansion

Phase 4

Shaping the global

coffee culture

Phase 5

Compete in new

environment

Phase 1

Pioneering years

Trial and error

Phase 2

Prove acceptance

and profitability

The 5 Phases of development Impact on the organisation and people

……

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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Phase 1

Pioneering years

Phase 2

Start-up phase

Phase 3

Creating an iconic

global brand

Phase 4

Shaping the global

coffee culture

Phase 5

Compete in new

environment

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

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Conclusion

Q&A

Head of B2B / Nestlé Nespresso S.A.

Reto Bruegger

Insight Group Director

Mark Catchlove

Partner, Occupier Advisory

Martin Laws

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