Josh Bersin Principal, Founder!Bersin by Deloitte

Forces Disrupting Organizations Today

Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s.

Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done.

Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change.

New social contract between companies and workers: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work.

90% of organizations surveyed by MIT and Deloitte anticipate their industries will be greatly disrupted

by digital trends.

Sources: Deloitte Human Capital Trends 2014 and 2015

The “average” US worker now spends 25% of their day reading

or answering emails.

Fewer than 16% of companies have a program to “simplify work” or help

employees deal with stress.

More than 80% of all companies rate their business “highly complex”

or “complex” for employees.

The average mobile phone user checks their device 150 times a day.

60% check it each hour.

The “average” US worker works 47 hours and 49% work 50 hours or

more per week, with 20% at 60+ hours per week.

40% of the US population believes it is impossible to succeed at work and

have a balanced family life.

The Overwhelmed Employee

1 billion smartphones

i-Phone launched

100 million Twitter users

Since 2011 productivity gains have slowed

to crawl

Not improving: productivity decreased 0.4 percent from Q2 2015 to Q2 2016 http://www.bls.gov/opub/ted/2016/productivity-decreased-0-point-4-percent-from-q2-2015-to-q2-2016.htm

Productivity is Suffering — is Technology Helping?"U.S. Productivity Last Ten Years

Organizational design

Leadership

Culture

Engagement

Learning

Design thinking

Skills of HR organization

People analytics

Digital HR

Workforce management

92%

89%

86%

85%

77%

74%

71%

84%

79%

78%

% very important 2016

56%

57%

54%

48%

44%

39%

36%

36%

32%

28%

% very important 2015

…

50%

50%

39%

…

39%

29%

…

…

Signs of the Digital Organization:

Importance of Human Capital Trends to Business

Average 3.2

What are these companies doing?

MIT Study: Among companies in the early stages of digital development, more than 50% of employees say they are planning to leave their organizations in less than three years and over 20% in one year. At digitally maturing companies, only 25% of employees expect to leave in the next three years, and only 4% have plans to leave within a year

Glassdoor Ratings of Employer Recommendations — 200,000+ RespondentsEngagement is Critical to Success in Digital Organization

Workplace Culture is Hot!

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

3.5

9/1/

2008

11

/1/2

008

1/1/

2009

3/

1/20

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9/1/

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/1/2

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1/1/

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5/1/

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US Workplace Culture Growth in Google Trends, since 2008 Recession

Shared values and culture

Transparent goals and projects

Free flow of information

and feedback

People rewarded for their skills and abilities,

not position

B A

D C F

A

C D E

B

G

How things were How things “are” How things work

E

Organizational DesignA Network of Teams

Historic Perspective on Performance and Management"

Management Thinking: Empowerment WeareHere

TheIndustrialCorpora4on

HierarchicalLeadership

Collabora4veManagement

NetworksofTeams

<1950s 1960s-80s Today1990s

AndrewCarnegieHenryFord

NeKlix,Google,Facebook,Amazon

JackWelchPeterDrucker

HowardSchulzSteveJobs

Profit,Growth,FinancialEngineering

CustomerService,EmployeesasLeaders

Mission,Purpose,Sustainability

Opera4onalEfficiency

2020

Purpose,Meaning,

andEmpow

erment?

IndustrialAgePeopleasWorkers

ManagementbyObjec4ve

ServantLeadershipWorkTogether

EmpowertheTeam

TheCorpora4onisKing

TheExecu4vesareKing

TheTeamsandTeamLeadersareKings

ThePeopleareKing(s)

Issues That Matter to Employees?Culture and Leadership

0.00

0.12

0.13

0.22

0.28

0.30

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35

Year founded (age)

Compensation & benefits

Work life balance

Career opportunities

Senior leadership

Culture and values

Correlation of employment factors to Glassdoor recommendations as place to work

Culture and leadership are 3X more important than salary in your employment brand.

Career development and learning are almost

2X more important than comp, benefits, and work environment.

Bersin by Deloitte research with Glassdoor

The Simply Irresistible Organization®

What We Have Learned: an Integrated Approach is Key

Meaningful Work

Supportive Management

Fantastic Environment

Growth Opportunity

Trust in Leadership

Autonomy Clear goal setting

Flexible, humane work environment

Facilitated talent mobility

Mission and purpose

Selection to fit Coaching and feedback Recognition rich culture Career growth in many paths

Investment in people, trust

Small teams Leadership development

Open flexible work spaces

Self and formal development

Transparency and communication

Time for slack Modern performance management

Inclusive, diverse culture

High impact learning culture

Inspiration

The Irresistible Organization 1.  Meaningful, achievable work 2.  Supportive management 3.  Flexible, humane work environment 4.  Development and career growth 5.  Inspirational leadership

Amazon Work Environment 1. Meaningful Work

Shorten Working Hours: Time for Slack

More Hours Does Not Increase Work Output

2000

3000

4000

5000

6000

7000

8000

9000

24 29 34 39 44 49 54 59 64 69

Worker Output vs. Hours Worked

•  Since 2000, American workers have lost an entire week of vacation, dropping average vacation days from 20.3 to 16.2

•  Americans left 658 million unused vacation days and lost 220 million of them in 2015

•  39% of Americans “want to be seen as a work martyr” yet 86% say it’s bad for their family life.

Fix the Vacation Crisis

Millennials 50% more likely

to forfeit vacation days

48% of Millennials

want to be seen as a “work martyr”

Institutionalizing Feedback: Check-Ins

2. Supportive Management

GE Shift toward a “Digital Culture”

GE: We invest more than $1B on employee learning and development every year.

Connections as Key to Performance"

Juniper Model of Evaluation

Talent Architecture

Why Feedback is Critical

The Feedback System

Fixing the Feedback System in Your Organization

Engagement Survey

Senior Management Team

Employees

Line Managers | HR

Performance Review

Filtering and Cleaning

Time Per Year

1.   I am really enthusiastic about the mission of the firm

2.   At work, I clearly know what is expected of me

3.   In my team, I am surrounded by people who share my values

4.   At work, I have the chance to use my strengths every day

5.   My teammates have my back

6.   I know I will be recognized for excellent work

7.   I have great confidence in the firm’s future

8.   In my work, I am always challenged to grow Bottom Quartile Middle Quartile Top Quartile

1

2

3

4

5

6

7

84.4

3.2

4.2

4.0

3.8

3.6

3.4

Pulse Survey items

Source: Deloitte pilots FYs14-15.

Feedback = Performance at Deloitte"

Questions that Predict High Performance at Deloitte

3. Flexible Work Environment

Empl

oyee

Hap

pine

ss

Business Performance Cost

Reduction Labor Productivity Retention Productivity Collaboration Team

Performance Leadership

Health

Monitoring

Employee Assistance

Medical Benefits

Fitness

Challenges

Nutrition

Exercise

Sleep

Stress

Engagement & Peak Performance

Recognition

Skills and Training

Work Environment

Rewards

Leadership

Management

Clear Goals

Growth Opportunities

Drive

Wellness

Self Discovery

Career

Purpose

Mindfulness

Abundance Mentality

Positive Thinking

Culture Fit

Family

Redefine Wellness to Engagement and Peak Performance

26

4. Development and Growth

Among MillennialsCareer Growth and Learning Now the #1 Job Benefit

6%

6%

8%

14%

19%

22%

0% 5% 10% 15% 20% 25%

Greater vacation allowance

Retirement funding

Free private healthcare

Cash bonuses

Flexible working hours

Training and development

Millennials in the workforce For Millennials, “Training and development” is the most coveted job benefit

Source: KPCB

The Financial Return of Soul 5. Inspirational Leadership

Companies with “soul” had a

1026% return from 1996 through 2006,

8x higher than S&P 400 firms

Companies with “soul” experience: • Much higher engagement and retention •  Better customer service •  Long-term profitability

Importance of Mission and Purpose

Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014

Design Thinking the Employee ExperienceConsider Your Employee’s Journey

Rethink Your Entire Work Experience"

You are the Chief Employee Experience Officer

The Irresistible Organization 1.  Meaningful, achievable work 2.  Supportive management 3.  Flexible, humane work environment 4.  Development and career growth 5.  Inspirational leadership

Josh Bersin Principal, Founder!Bersin by Deloitte