1

AmediRH Conference

Leadership & Talent in Digital Era

2

Jean-Michel Caye Senior Partner BCG

Co-leader for BCG Leadership & Talent Enablement Center

(150+ Learning & Development Experts WW)

Nominated BCG fellow in 2011

Areas of intervention

• Creating a Talent advantage for global companies

• Developing Leadership (teams and individuals, from

top to front line management)

• Transforming HR function (globalization, business and

people relevance, efficiency & effectiveness)

• Enterprise transformation or post-merger

integration (Change Management architecture,

Culture change, Labor Relations /

Unions strategy)

BCG since 1998

HayGroup 1990-98

When Growth

Outstrips Talent

2012

Make Talent,

Not War

2011

Four Ways to Stop

Worrying About

Talent in China

2012

Realising the Value

of People Management

2012

Shrinking and

Growing the

Workforce

Reduce & Retain: The

New Normal

2012

Global Leadership

& Talent Index

2014

Talent Management

Nurturing the Egg

2007

World Economic Forum

Global Talent Risk

2010, 2011

Creating People Advantage

Series

2007 - 2015

3

Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

4

WWW.CREATINGPEOPLEADVANTAGE.COMUnique ongoing benchmarking capability for clients

5

-2 -1 0 1 2 3

Capability self-assessment

Area of focus Strenght

Weakness Developed

WWW.CREATINGPEOPLEADVANTAGE.COMCompare your company results to the best performers and reflect on areas to focus on to increase performance

Your company falls into the Average Performing companies group.

According to observations, upgrading your L&T practices may increase

the odds of financial performance

Where to focus your efforts going

forward

0

5

10

15

20

25

5.0%

22.5%

0.5 to 0.9 1.5 to 2.00.9 to 1.5

22.5%

5.0%

-1.0 to -0.1

22.5%22.5%

-2.0 to -1.0 -0.1 to 0.5

Talent Laggards

companies

Low performers companies

Average performers companies

High potentials companies

High performers companies

Talent Magnets

companies

2.2x Revenue growth

2.2x Revenue growth

My company

Average profit margin

Average revenue growth Talent Magnet companies

Talent Laggards companies

High

Average

LowCorr

ela

tion t

o f

inancia

l perf

orm

ance

MEF

PTA

EVP

EM

MEA

BSD

MCT

CLS

TTP

6

Areas to explore

for further performance

HR Stars (top 10%)

outperform the market

• Align enterprise structure with overall digital strategy

• Digital talent management

• Anticipate other workforce key changes

• Digitalization of the HR function

Best performing companies show the following HR Digital Priorities

Ensure strong pipeline

of successors

Recognize high-

performing leaders

Plan

employee

needs

Ensure strong pipeline

of successors

Continually analyzing

HR data

Recognize high-

performing

leaders

Mexico Global results!!!

!

Source: 2017 BCG Survey Based on questions with 5 levels answers. Highlighted priorities expressed in absolute terms irrespective of industry/company specific circumstances.

7

HR Stars (top 10%)

outperform the market

• Align enterprise structure with overall digital strategy

• Digital talent management

• Anticipate other workforce key changes

• Digitalization of the HR function

Best performing companies show the following HR Digital Priorities

In addition, companies report they have

advanced people analytics in the following

domains

26%1

Learning/Training

25%Performance Mgmt

24%Workforce Planning

3

2

1

1. xxxx 2. xxxx 3. xxxxNote: List footnotes in numerical order. Footnote numbers are not bracketed. Use 10pt font. Do not put a period at the end of the note or the sourceSource: Include a source for every chart that you use. Separate sources with a semicolon; BCG-related sources go at the end

8

Talent Magnet companies (top 10%)

outperform the market • Use predictive analytics

• Measure employee advocacy

• Measure effectiveness of development programs

• Leaders KPI & compensation linked to talent development

Best performing companies show the following HR Digital Priorities In regards to areas to explore, certain ones

are more impactful to performance

Devote senior management time significantly for talent management

Translate L&T plan into clear and measurable initiatives

Make leaders accountable for talent development

Encourage leaders foster employee engagement

Plan T&L needs strategically on a long-term basis

1

2

3

4

5

Revenue growth

Profit margin

2.4x 1.4x

2.2x 1.7x

2.1x 1.3x

2.0x 1.2x

1.6x 1.5x

Talent Magnetcompanies

Talent Laggardscompanies

1. xxxx 2. xxxx 3. xxxxNote: List footnotes in numerical order. Footnote numbers are not bracketed. Use 10pt font. Do not put a period at the end of the note or the sourceSource: Include a source for every chart that you use. Separate sources with a semicolon; BCG-related sources go at the end

9

Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

10

Dig

ita

liz

atio

n

Digital Workforce• Strategic planning: current and future digital workforce &

digital talent

• Recruiting, development and retention of digitally skilled people

• Digital culture & leadership

Digital HR• Digital HR tools & analytics

• Apply big data tools to advance HR

• Development of digital interfaces to customer

What is the impact of digitalization for HR function?

11

Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

12

Entire staff can be clustered along

two dimensions … … into 5 digital workforce groups

What is digital talent?

Rudimentary Basic Advanced Expert

Digital skills

Digital business

judgment ability Digital talent

4

1

23

5

Digital latecomers

• Never learned to work digitally

• Want to advance through training

1

Digital immigrants and digital natives• Immigrated or born into the digital world • Work in jobs that require basic digital

skills

2

Digital bridge-builders• Good understanding of devices & software• Non-IT main profession, supporting

build-up of digital products

3

Digital experts• Experts across the digital value chain• Provide digital expertise to build

digital products

4

Digital leaders

• Lead and develop digital

initiatives/strategy, commercialize digital

ideas, etc.

5

Up to 20% in 2020?

Source: BCG analysis

13

Digital talent is content driven and entrepreneurial

… wants to

build a cool product• Identification with products/projects, not so

much by company affiliation

• Main manifestation of a good career is the

talent's own product portfolio, not a CV

• Content driven work motivation

• Freelancer attractive career option

… wants to have

a positive impact• Want to have a positive impact on society

• Social impact projects as part of one's own

work or add-on

… wants to

work entrepreneurial• Ownership of product important1

• Flat hierarchies & adaptive/digital leadership

requested

• Flexible working habits (time & location)

• Self-determined work-life balance

• High start-up affinity

… wants to work

in a creative context • Creative workspace that facilitates team work

("venture rooms", "design space", "open kitchen")

• Creative working techniques are the status

quo, e.g., morning standup meetings

• Want surrounding by peers to exchange ideas &

be inspired

Digital talent...

University

graduates

Freelancers

Experienced

coders

Gen Y/Z

"nerds"

1. Incl. stock options as part of compensationSource: Expert interview; BCG analysis

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New profiles of digital talent

Source: BCG Analysis

Digital Transfor-

mation Manager

Scrum master

Social Media-/

Community Mgr.

Traffic acquisition

spec.

Digital branding

specialist

UX /UI specialist

Digital Product

Manager

Omni-channel

specialist

Mobile interfaces

specialists

Web analytics

specialist

Business Intelli-

gence Specialist

Data architecture

specialist

...

Virtual Manufac-

turing EngineerIT risk

Technical security...

Agile coach

QA dev. engineer

Emerging threats

specialists

... ...

Advanced

Analytics

Digital

MarketingIndustry 4.0

New ways

of working

Risk and

security

Digital

Development

……

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Digital talent management

. . .

Buy Talent Rent TalentMake Talent

Best practices on creative ways to recruit,develop and retain digital skills within organizations

Recruiting

and Sourcing

Development

Leadership

and

Organization

Attracting talents• Creative recruiting

• Subsidiaries with

start up culture

• Digital Center

On-the-job training• Employee exchange

programs

• Permanent holes

• Educative project

staffing

Training facilities• Digital

leadership program

• Digital learning

platforms

Gaps analysis• Analysis of development

needs

• Identification of

development potential

Leadership• Independent

working at low

levels

• Flat

hierarchies

Lived culture• Acceptance

of failure

• Regular and

frequent

feedback

Environment• Prime office

location

• Progressive

office design

Organization• Scaled-agile

organization

• Appointment

of a CDO

Sourcing talents• Venture Capital Arm

• Acqui-Hiring

• Compelling total offer

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Best practices on creative ways to recruit,develop and retain digital skills within organizations

Recruiting

and Sourcing

Development

Leadership

and

Organization

Attracting talents• Creative recruiting

• Subsidiaries with

start up culture

• Digital Center

On-the-job training• Employee exchange

programs

• Permanent holes

• Educative project

staffing

Training facilities• Digital

leadership program

• Digital learning

platforms

Gaps analysis• Analysis of development

needs

• Identification of

development potential

Leadership• Independent

working at low

levels

• Flat

hierarchies

Lived culture• Acceptance

of failure

• Regular and

frequent

feedback

Environment• Prime office

location

• Progressive

office design

Organization• Scaled-agile

organization

• Appointment

of a CDO

Sourcing talents• Venture Capital Arm

• Acqui-Hiring

• Compelling total offer

Source: BCG analysis

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A digital center is a cornerstone to build sustainable capability pool

Managers need to learn new ways to steer

projects following Agile methodologies

New Digital talents are externally recruited

Together with internal resources transferred from

their initial department, they form the Digital

Center...

... Digital Center resources work on digital

projects alongside other employees, who gain

maturity on digital and become "Digital

Champions"...

... All these digital-savvy resources are in contact

with other employees and diffuse a digital culture

throughout the company

Digital Center

~300 digital talents

Digital Champions

trained on the job

~2 000 people

Managers

Employees

digitally-aware company-wide

~120 000 people4

3

2

1

Example at automotive co.:

capability building of 300 scarce digital talents to

unleash € xxxM of potential

1

2

3

4

18

Digital center set up in a start up incubator

Digital talents are

content driven &

entrepreneurial

They want • Cool product

• Positive impact

• Work in a creative context

(work environment, work

techniques)

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Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

20

Digital leaders activation takes leaders from awareness to action...

Battle-tested assessments tools

Self-discovery logic

Customized field expeditions

• (1 to 5 days) integrating

Range of BCG digital

capabilities

• Rich network of partnerships

New competencies practiced on

real life projects for

• Sustainable change in

behaviors

• Accelerated business impact

Functional expertise on demand

Awareness building Immersion Action learning

BY BCG

DIGITAL ACCELERATION INDEX

Agile leader

Mind openersselection or relevant teasers thanks to ability to navigate in complex eco-system

(allowing leaders switch from linear thinking to disruption)

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... Tackling not only the "what" but also the "how" to strive as digital / agile leaders

Output

orientation

Customer

focus

Rapid

Experimenta-

tion

Cross-

boundary

collaboration

Adaptability

in

uncertainty

Empowering

teams

To: Course

correction

Servant

leader

Fail fast

mindset

Transparent

partnership

Working

product

(MVP)

Cooperation

From: Perfect

solution

SilosBlack box Focus on

excellenceDetailed

plans

Command

& control

Agile manifesto dimensions Based on BCG experience

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... and creating the development programs enabling them to be great 21st century leaders

FROM: 20th century

Withstand

disruption

TO: 21st century

ride disruptive

waves

Timeless

Drive to

achieve

JudgmentCourage

Integrity

Intelligence

Vision

EmpathizeWin & win

Self-correct

Navigate

Achieve through network influence and authority

• "... understands what makes a difference to people's lives day-to-day, even if their lives are completely unfamiliar"

• "... understands other stakeholders' perspectives and is authentic in his/her interest in other stakeholders"

• "... is a leader of networks, not of organizations"

Deliver sustainable successto company and stakeholders

• "... needs to deliver both shareholder and stakeholder value –company reputation will be more salient in the future"

• "... understands the international markets and macro and microeconomic risks influencing the business"

• "... is able to find solutions that strengthen all positions, without being either/or relying on superficial compromises

Unlearn outmodedsuccess models

• "... is willing to completely question and reinvent attitude and the business"

• "... has a sense of nervousness about not getting it right – an insecure perfectionist"

• "... snaps out of the last-learned behavior"

Embrace global uncertainty and chart a clear course

• "... is able to translate ambiguous signals into actionable maps"

• "... is able to set a course that has degrees of freedom as the world changes"

• "... is excellent in translating analytics, but also makes decisions based on experiences"

Source: BCG adaptive leadership model

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... and modifying the key context elements in order to sustain a digital culture

LeadershipPerformance

management

Organization

designResources

& tools

Values

& vision

People &

development

• Role modeling

• Communication

• Time

management

• Priorities

• Management

interactions w/

direct reports

• Heroes / stories

• Recognition

• Selection

• Recruiting

• Promotion

• Retention

• Career paths

• Development

• Coaching

• Training

• Structure

• Processes

• Roles

• Decision rights

• Collaboration

• Relationship to

HQ

• Office layout /

design

• Guidelines /

policies

• IT systems

• Budget

• Resources

• Ease of resource

approval (incl.

people)

• Ease of tool use

• Values

• Mission / Vision

• Goals

• Symbols

• Norms

• Performance

reviews

• Compensation /

Benefits

• Rewards

Informal

Interactions

• Networks

• Peer-to-peer

interactions

• Communities of

interest

• Gatherings/

events

• Knowledge

transfer

• Alumni relations

• Perks

Source: BCG experience

HR responsible to adapt to the context of digital culture

24

Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

25

Examples of technological changes potentially impacting HR

New technology enables HR to

create value for the business in innovative and effective ways

Big Data

Real-time data analysis &

prediction

Shift to the cloud

Software-as-a-service,

flexibility

Social, local, mobile

... services and devices

Ubiquitous Connectivity

High-speed access anywhere/-

time

New device form factors

"Smarter" Objects and

Selftracking

Natural user interface

New human computer

interactions

Augmented Reality

Visual information part of

reality

Cognitive Computing

Increasing system intelligence

Deep insight into large, partly

unstructured data sets, e.g., for

recruiting, time mgmt., payroll

Reduced complexity and cost of

local IT infrastructure/systems;

fast access to innovative

functions

Employees expect to network

and access HR services, e.g.,

via mobile apps + w/ location

context

Ability to access

Internet/Intranet from

everywhere inside/outside the

organization at any time

New devices, e.g., iWatch or

implants, take over new

functions, e.g., track worker's

health

Users interact more naturally

with digital devices/services

even if novice or working with

both hands

Allow HR employees or

operators to visualize key

information in reality for safety

or efficiency

Intelligent, autonomous

assistants, e.g., for self-

driving vehicles/ trucks but also

HR routines

Source: BCG Digital Ventures

26

Agenda

Global and Mexican results of Creating People Advantage Database

Impact of digital on HR function

Sourcing & developing digital talent

Developing leaders adaptiveness/agility and digital skills

Adapting HR to digital era

What's next?

27

New technologies can generate significant improvement in HR management

Training

Stand. trans.

Collaboration

Company Digital Push

Instant feedback tool

Predictive analytics

Predictive analytics

Employee self service solutions

E/M self service solutions

LinkedIn analysis for skills

Agile Playbook

E/M self service solutions

Global digital learning mgmt. system

Predictive engagement analytics

Automation of application scan

Social corporate network

Mobile g-learning courses

Management training based on

successful traits analysis

E/M self service solutions

Development of corporate products

Results

• Improved leavers forecast

• Up-to-date overview of existing employee skills

• Real-time measurement/improvement of collaborat.

• 35% retention improvement

• Standard requests reduced from 10 to almost 0 per employee p.a.

• Efficiency push towards 90% self service

• Collaboration platform and information exchange

• Improved global developer cooperation

• Efficiency push towards 90% self service / 60% FTE cut

• Increased participation, reduced training fees

• Forecast potential leavers 12 months in advance

• Improved recruiting performance and reduced cost

• Increased communication and collaboration, improved satisfaction

• Adoption of management curriculum

• Improved mainly all standard HR transactions

• Internal communicat., sharing and profiles platform

Exits /

placement

SanitizedSanitizedSanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

Sanitized

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Closing remarks

No free lunch: invest in your make/buy/rent talent

strategy!

Ride the waves:

• New new ways of working: leaders to pave the way!

• HR to ride digitization of own function

Benchmark your HR, Talent and digital

practices on:

WWW.CREATINGPEOPLEADVANTAGE.COM

...

29

... but Digital is only a fraction of the 12 disruptive forces that enterprises have to cope with

Change Driver 12 Disruptive Forces

Dem

and-S

ide

Supply

-Sid

e

Shifts in technology

and digital

productivity

Shifts in ways of

generating business

value

Shifts in resource

distribution

Shifts in workforce

value & culture

Automation a digital

world

Simplicity-in complexity

decoding multi-

dimensionalization

New demographic mix

labor surplus and deficits

Diversity & inclusion

inclusive growth

Analytics cuttings edge

insights

Agility & innovation

unprecedented rate of

change

Skill imbalances talents

gaps

Individualization &

entrepreneurship one size

doesn’t Fit All

Access breaking borders and barriers

The demanding consumer grasping the costumer mindset

Geo-Geo-Political

dispersion

New centers of power

Purpose & well being

Mental, physical &

emotional

A

B

C

D

bcg.com

www.creatingpeopleadvantage.com