leadership in 2025: a snapshot into future organizational and management structures

Leadership in 2025 A snapshot into future organizational

and management structures Public

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 1

A convergence of forces is pushing businesses to change the way they work

Let’s consider each force and its

impact on the future of work.

Technological change

Accelerating globalization

Shifting demographics

Focus on employee engagement

Driving the need to radically

simplify the business


3 © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Technological change The expanding reach of computing, mobile, cloud, and connected

technologies is rapidly changing the way we live and work.

Average time

Americans spend daily

on social media1

40 minutes

Projected number of

smartphones used

worldwide in 20143

1.75 billion

Number of active

Facebook users2

1.39 billion

Number of worldwide mobile

devices that are smart devices4

54% in 2018

88% in 2013

96% in 2018

Mobile data traffic originating

from smart devices5

1. “The Average American Spends 40 Minutes a Day on Facebook,” NBC News, July 24, 2014.

2. Facebook Newsroom, December 31, 2014.

3. “Worldwide Mobile Phone Users: H1 2014 Forecast and Comparative Estimates,” eMarketer, January

2014.

4. “Cisco VNI Global Mobile Data Forecast Update (2013 – 2018),” Cisco, February 5, 2014.

5. Ibid.


21% in 2013

http://www.nbcnews.com/tech/social-media/average-american-spends-40-minutes-day-facebook-n164046

http://newsroom.fb.com/company-info/

http://blogs.cisco.com/news/cisco-vni-global-mobile-data-forecast-update-2013-2018/





Accelerating globalization Work is no longer local – it extends

across countries, time zones, and

cultures.

6. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.

7. Pedro Olinto, et. al., “The State of the Poor: Where Are The Poor, Where Is Extreme Poverty Harder to End, and What Is the Current Profile of the World’s Poor?,”

The World Bank, October 2013.

Size of Asia’s middle class by 2020, triple that of 20096

1.7billion


in 19907

43.1% 20.6% Global rate of extreme

poverty in 2013

down from

http://www.bbc.co.uk/news/business-22956470

http://siteresources.worldbank.org/EXTPREMNET/Resources/EP125.pdf




Shifting demographics The makeup of the workforce is changing in a

variety of ways – and these shifts impact best

practices for organizations.

8. “Gen Y Women in the Workplace,” BPW Foundation.

9. Christopher J. Dwyer, “The Future of Contingent Workforce Management Webinar Recap,”

DCR Workforce Blog, January 5, 2015.

10. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013.

Millennials

will comprise

75% of the global

workforce by 20258

of the world’s workforce

will be contingent workers

by the end of 20179

45% Nearly

people are entering

the middle class for

the first time.10

5 billion

Approximately


http://www.bbc.co.uk/news/business-22956470


40% executives worry that their organizations

will not keep pace with technology change and

lose their competitive edge. McKinsey study, 2013

”

“

10.2% or US$237 billion* of profits is lost by top 200 global companies due to

hidden costs of complexity. *Global Simplicity Index, 2013


Forrester IT Survey, 2013

Free up budgets to enable simplification and innovation.

72% Keep the lights on

Drive business innovation Innovation Customer experience

Employee engagement

Resource optimization

Networked economy

Drive

business

innovation

Keep the lights on

Complexity Decision making

Business-process

technology

28%


Run Simple

Our operating principle

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 9 Public

How can companies meet these

challenges and prepare

themselves for the

future of work?

It’s time to radically simplify the business.


Global 27-country twin surveys 5,400 People; 2,700 executives and 2,700 employees

conducted by Oxford Economics

Oxford Economics, The 2020 Workforce, 2014



Simplifying the Future of Work Survey

To understand the challenge of complexity and

leadership’s role, SAP and Knowledge@Wharton polled

692 leaders and team members worldwide about their

views on business simplification today — and in the future.



Employee loyalty

Adequate leadership

Adequate technology

Skilled talent

34% “good”

progress

What’s missing to meet workforce goals



The leadership cliff


Know how to

inspire

employees

51% Are able to

drive real

change

44%

Gaps in leadership capabilities limit growth

Have the skills to

manage talent 52%

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Can lead a

diverse

workforce

34%

14

Are prepared to lead

a global workforce 47%

14


Leaders must be able to lead simplification

67% Simplification

will be

strategically

important in the

next 3 years


17% of employees

say

simplification

efforts are

effective today

15

Leaders are

unprepared and need access

to more effective

talent

management &

performance tools


The development

mandate

Employees need and want more

50%

34%

The skills they

have now will be

what’s needed in

3 years

Their company is

able to give them

the training they

need


18 © 2014 SAP SE or an SAP affiliate company. All rights reserved. 18

51% We are more

merit-driven than tenure-driven 43%

When a senior person leaves we tend to fill the role

from within the organization

37% Long-term loyalty

and retention is an important part of our talent

strategy

31% We plan for

succession and continuity in

key roles


Organizations struggle to develop a learning

culture

19 © 2014 SAP SE or an SAP affiliate company. All rights reserved. © 2015 SAP SE or an SAP affiliate company. All rights reserved.

45% of respondents believe

leaders will have access to

all information through

self-service tools in the

next three years14

19

17% of leaders access

information through self-

service tools to support

quicker decision making

today14

Create a learning culture that supports simplification


But how do you build a learning culture?

Traditional Formal Learning

Social Informal Learning



Learning trends…

Me

Crowdsourced

Accelerated

Available

Enhanced Personalized

Accredited

Open

Social



Companies that are most adept at

managing uncertainty & volatility

develop leaders and future leaders

at all levels

#FutureofWork Accenture, 2015


23 © 2014 SAP SE or an SAP affiliate company. All rights reserved. 23 © 2015 SAP SE or an SAP affiliate company. All rights reserved. 23

The Future of Work Is Simple Simplification Engagement and Leadership


Assess how the organizational structure and talent

ecosystem reflect your simplification goals

Organizational model:

• Do structures motivate complexity?

• Are there heavily matrixed designs?

• Are there redundant organizations?

• Do processes cross boundaries?

Key questions

Talent ecosystem:

• Are only employees focused on simplification?

• Are there simplification goals and metrics for

contingent workers?

• Are outsourcing partners included in

simplification initiatives?



What you think your organizational structure

looks like


managing change =

expectations & accountability

How do you change your organization?


Managing Change Requires all levels of involvement

Employees Managers Senior

Leaders HR



In summary

• Future of Work will be different

• Leaders need to navigate to

simplicity

• We must build learning cultures

• Roles, norms and organizational

structures are evolving



In case you’re interested in more…

As well as SAP social ambassador Wilson

Zhu’s event recap blog with a video of

Kerry’s session, Leadership in 2025

http://blogs.sap.com/innovation/human-resources/future-of-work-about-simplification-futurework2015-02480580


Thank you Kerry Brown

VP User Adoption

@KerryNBrown

www.linkedin.com/in/kerrynbrown

http://www.linkedin.com/in/kerrynbrown

leadership in 2025: a snapshot into future organizational and management structures

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