r&ca: workforce replacement or workforce evolution automation anywhere, blue prism, uipath...
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R&CA: Workforce replacement or Workforce evolution Core human capital considerations for your R&CA strategy November 17, 2016
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Since there is a perception that R&CA leads to workforce reduction, organizations often face workforce resistance; planning for the human impacts of R&CA is critical to a successful strategy
R&CA brings human capital issues to the forefront
1 Where are the most likely job impacts of R&CA?
2 What are the benefits for the organization?
3 How should my organization prepare and support our workers to be successful?
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Where are the most likely job impacts of R&CA?
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Source: “The Robots Are Coming”, Deloitte Financial Services White Paper (2015) Deloitte analysis based on Frey and Osborne’s “As machines take on more human work, what’s left for us?” Oxford study (2014)
Size of bubble represents # of employees
Finance Processes
Almost half the roles in Back Office functions can be automated and yield significant savings
There is high potential for automation to augment workflows
0
0.2
0.4
0.6
0.8
1Low Probability of
Automation, 40.33% Medium Probability of Automation, 3.59%
High Probability of Automation, 56.08%
Level of education (
Bachelo
rs o
r m
ore
)
0.3 0.7 1.0
Business & Financial project management professional
Financial senior leaders
Purchasing managers and directors
Payroll managers
Financial administrator
Credit controller
Weighted probability of automation
Financial & Acc, technician
Finance account manager
Finance manager
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Realm of Process Robotics (RPA) Realm of cognitive automation
Jobs may slowly evolve with roles being automated starting with rules-based tasks and then cognitive capabilities replacing judgement-based tasks
Traditional knowledge work will be interrupted
“Mimics Human Actions”
RPA Realm: • Rules-based tasks
Sample Technology Firms: • Automation Anywhere, Blue Prism, UiPath
Potential Applications: • Data reconciliation • Claims processing • Returns management
Structured Data Deterministic Outcomes
Un-structured Data Variable Outcomes
“Augments Human Intelligence”
Cognitive Realm: • Judgement-based decision-making
Sample Technology Firms: • Cognitive Scale, Kira, IPSoft, IBM Watson
Potential Applications: • Inventory Management predictive analytics • Hedge Fund Algorithmic Trading • Computer vision systems for inspection & QA
RPA is intended to improve the efficiency of humans through
performing repetitive tasks, not replace human judgement
Cognitive is intended to replicate human judgement
through machine learning, natural language processing,
advanced analytics, etc. but is still maturing
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Humans 1. Report Extraction 2. Formatting/ Stacking 3. “Eyeball” variances
1. Investigate variances on final reconciliation report
1. Provide oversight and facilitate knowledge transfer within firm to enrich human learning and improve automation
Robots N/A 1. Report Extraction 2. Rules-based variance flagging 3. Create/Send final reconciliation
report
Report extraction and generation same as RPA
1. Pattern-based recognition of variances using historical data
2. Root cause analysis 3. Resolution communication
Potential Results
• Cumbersome • Resource intensive • Lengthy processing
• Reduced processing • Increased frequency • Improved quality
• Minimal resources • Fastest processing • Almost zero manual intervention for
variances
Standard Process Robotic Process Automation Cognitive Automation
Intercompany Reconciliation Automation Impact Example
Roles will evolve based on type of automation R&CA can enable humans to focus on analysis while also driving accuracy and efficiency
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What are the potential benefits for the organization?
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Revenue and profit generated becomes less dependent on the ability to scale labor; automation enhances
the abilities of current resources
Decouple
Profits & Labor
Re-engineer core processes while
automating the function
Transformative
Change
Ability to rapidly scale up or down depending on the
nature of the business issue
Flexibility
Process owners elevated to process transformation leaders
and robot designers as production becomes more automated
New
Competencies
15 – 90% cost reduction opportunity depending upon the characteristics of the functions
selected for automation
Cost
Reduction
Characteristic Outcomes of Robotics and Cognitive Automation
R&CA can provide benefits that extend beyond pure labor cost savings
Organizations have the ability to focus on value creation in addition to cost reduction
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A typical process requires a worker to spend time performing redundant tasks There is significant human time spent on rules-based, operational tasks
Example for nurse recruiters
Current dynamics
1. High turnover of nurses
2. Capacity constrained function (Recruiters are busy and in high-demand)
3. Opportunity for automation of application processing and credential validation
Receive Application Validate Credentials Engage Candidates Engage Business
Department Managers Communicate
decision to candidate
Human interaction Automated process
Workflow
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R&CA can allow employees to re-allocate their time to value accretive tasks
Humans are able to focus on engaging other humans and improving the process
Example for nurse recruiters
Current dynamics
1. High turnover of nurses
2. Capacity constrained function
3. Opportunity for automation
Potential future state
1. Capacity created through automation, freeing up FTE’s
2. Additional capacity allocated towards human-only tasks of engagement with candidate and department
3. Recruiters can improve job specs and get to know candidates better to reduce turnover
Receive Application Validate Credentials Engage Candidates Engage Business
Department Managers Communicate
decision to candidate
Human interaction Automated process
Workflow
R&CA: Workforce replacement or Workforce evolution Copyright © 2016 Deloitte Development LLC. All rights reserved. 11
• Think differently for how to use the workforce • Brainstorm what is uniquely human that can provide value with additional capacity
Concepts to Consider
Group Discussion Organizations will capitalize on new capacity differently to optimize or expand the business
Think about a process
you might automate
Imagine the
implications of freeing
up 20% FTE capacity
from that process
Describe the
impact created by
capacity in the function
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How should my organization prepare and support our workers to be successful?
R&CA: Workforce replacement or Workforce evolution Copyright © 2016 Deloitte Development LLC. All rights reserved. 13
Identify Areas of Resistance and Areas of Support to tailor messaging and proactively assuage concerns
Don’t forget to consider organizational dynamics!
Creating a Climate for
Change
8. Make it Stick
7. Don’t Let Up
6. Create Short-term Wins
5. Empower Action
4. Communicate for Buy-in
3. Get the Right Vision
2. Build the Guiding Team
1. Increase Urgency
Implementing and Sustaining Change
Engaging and Enabling the Whole Organization
• Skeptical of automation success
• Scared of automation once they see the results and potential
• Quick to give up once automation breaks
• Resistant to change and performs role status quo without invoking robot
Focus: Elimination of primarily mundane work leads to increased job satisfaction and engagement for workers
Drive Transformation Common Employee Concerns
You may encounter employee resistance so transparency, consistency of messaging on benefits, and leadership support is important for success
Communicate firm-wide commitment via consistent, multi-level messaging
R&CA: Workforce replacement or Workforce evolution Copyright © 2016 Deloitte Development LLC. All rights reserved. 14
Formal changes to job expectations can cause a natural evolution to the workforce, resulting in higher efficiency from some, a need to train for others
Humans will adjust to new job roles after automation
1
Categories of workers Post-R&CA
2
3
Well-adapted Humans easily adjust and are well-suited for the new job role
Training needed High worker engagement but humans need additional training to excel in new role
Mis-aligned Strengths of the humans are mismatched with the new job role, resulting in natural attrition
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Moving Beyond
R&CA: Workforce replacement or Workforce evolution Copyright © 2016 Deloitte Development LLC. All rights reserved. 16
Highly efficient autonomous car
Can only drive 600 miles without human intervention
Computer routinely beats human in game
Lost one round due to basic error that is avoidable in human bot collaboration
RPA is focused on process efficiency while still developing cognitive capabilities will replicate human decision—making and eventually unlock new insights enabling change
The role of humans will continue to evolve as cognitive technologies mature
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Learn more
Follow @Deloitte #robotics
Gina Schaefer
Managing Director, Deloitte Consulting LLP [email protected]
Please reach out to continue the conversation or discuss opportunities specific to your organization
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