key challenges for the resilient organisation leadership 2030 7 th june 2012

Key challenges for the resilient organisationLeadership 2030

7th June 2012

Hay Group’s research on megatrends and organisational implications

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What are megatrends?

Megatrends are long- term transformational processes on a global scale, with a broad scope and dramatic impact

Observable over decades, they can be projected with a high degree of probability at least 15 years into the future

TimeThey affect all regions and stakeholders, including governments, individuals and businesses

ReachThey fundamentally transform policies, society and the economy

Impact

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What did we want to find out?

We identified megatrends that will have the greatest impact on organisations and leadership over the next decade, and worked with Z-Punkt, a Cologne–based foresight company, to spell them out. We wanted to know how these megatrends will change working and leadership

practices at three different levels:

Corporate environment

Organisation

Individual and teamMegatrend

Megatrend

Megatrend

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Megatrend 1: globalisation 2.0

Key characteristics Increasing globalisation

Shift in economic balance of power to Asia

Rise of a global middle class

‘Re-regionalisation’ and ‘glocalisation’

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Megatrend 2: climate change and environmental impacts

Key characteristics Rising CO2 emissions and temperatures

Environmental problems and growing industrial and residential waste

Greater environmental responsibility and accountability

Growing scarcity of strategic resources such as water, minerals, metals and fossil fuels

Rising investment in clean technology

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Megatrend 3: individualisation and value pluralism

Key characteristics Individualism as a global phenomenon Value pluralisms: work-life balance, self

fulfillment and self-expression, values-driven engagement

Rise of the creative class From mass to micro markets Decline of loyalty to organisations

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Megatrend 4: digital lifestyle and work

Key characteristics New media conquer work and private life

Individuals are ‘always on’

Public / private divide gets blurred Changing relationship networks: fewer

strong, more loose connections Power shift to digital natives

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Megatrend 5: demographic change

Key characteristics World population growing and ageing, but

demographic imbalances

Aging society demands generational leadership

War for talent, brain drain, brain cycle

Increasing migration; will drive cultural diversity

Agile organisations, post-heroic, overwhelmed leaders

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The employee life cycle evolves, or at any rate changes…

Hire Retire

“Any customer can have a car painted any colour that he wants so long as it is black” Henry Ford

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“Where do you want to go today?” Microsoft

Recruit Assess Selection Develop Move on

…x5 x10?

The employee life cycle evolves, or at any rate changes…

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“The future is already here – it's just not very evenly distributed”

William Gibson

Value? Find

Next?

Onboard Check Webutation

The employee life cycle evolves, or at any rate changes…

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Webutation…

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Key challenges in becoming a resilient organisation

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Agility: where is the decision authority?

Re-definition of the workplace: flat, decentralised, mobile, virtual, cross-x, appreciating pluralism

Complexity of collaboration: global/local, inter-generational, diverse, virtual, inter-corporate

Growing costs: resources, sustainability, scarcity of people

Organisational adaptations to create loyalty: sustainable, needs based (individualised, age, gender, culture, values)

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What will not change

Results Hierarchy

Relationshipstrust face to face leaders

Need for leaders

Security

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Five key features of the leader of tomorrow

Conceptual and strategic thinking

Ethics: integrity, sincerity, intellectual openness

Loyalty creation - meaning and identity economics

Leadership of heterogeneous and diverse teams

Real, power-sharing team work insideand outside of the organisation

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Become technologically savvy

Become even more strategic

Understand human limitations – what is possible and what is not

Manage expectations

Connecting across organisations

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Top five for HR

What the best are already doing

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The unevenly distributed future: what the best are already doing

Leadership starts early and is available to all

Collaborative technology widely used

Creating a glocal leadership team

Development is targeted and individuated

Focus on family/CSR/ work from home