Hiring, Identifying and Developing Talent to Create a Digital Culture
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1 Digital Sustainability Hiring, Identifying and Developing Talent to Create a Digital Culture Taking a coherent enterprise view CUNA March 2018
2 Despite significant spending and attention, digital transformation efforts have been stalling because of the people dimension Companies are making meaningful investments and commitments but feel like they re struggling. The roadblock? People. In 2017, companies will spend $1.7 trillion on digital transformation technology alone. 96% of organizations see digital transformation as critical or important. 42% of executives say digital first or digital to the core is now their company digital business posture. 75% of organizations are not very confident in their ability to execute a digital transformation. 84% of executives believe that their organizations do not have the skills and capabilities to deliver on its digital ambition. 59% of companies are worried that the laggard pace of their digital transformation efforts is causing them to lose ground competitively. 63% of executives believe their digital transformation efforts are stalled because of difficulties in changing company culture to be agile. 39% of executives see resistance to new ways of working as a primary challenge to digital transformation efforts. One in five executives secretly believes digital transformation projects are a waste of time. Sources: Gartner, IDC, SADA Systems, Altimeter@ Prophet, Wipro
3 Across even the most thoughtful organizations, mobilizing the people side of the digital journey has been a diffuse and disconnected effort Lack of employee engagement or outright anxiety - around the digital topic Complexity in achieving an organizational structure that yields practical results on the digital journey Ad hoc and unsystematic digital hiring Structural and cultural challenges in integrating digital acquisitions Organ rejection of new digital leadership and talent Expensive and suboptimal rewards structures for digital leadership and talent Misaligned or resistant leadership Overloaded and underpowered digital job construction Difficulty in getting to a reasonable model for innovative agility Particularly relevant for credit unions 3
4 To succeed, digital-era organizations will need a changed workforce, new ways of operating, and a shift in leadership Fluid workforce Appropriate talent mix for the digital journey beyond just technical skills Shift from process orientation to outcome orientation Networked ways of operating Alignment of people and resources to the broader business digital strategy Nimble and lean organizational structure Inclusive leaders High learning agility and lifelong learner profile Greater business acumen and strategic orientation than their predecessors Right people in right jobs ability to pivot as business needs shift rapidly (specialist/generalist balance) Strong facilitation of non-traditional career paths allowing lateral and position jumps where appropriate Real-time, continuous learning, development and feedback Diverse array of viewpoints and voices Designated space for innovation be it within a formal incubator or simply a % of employees time Highly inclusive culture with mechanisms to enable constructive debate Active facilitation of information flow Empowerment of decision-making as close to coalface as possible Accessible and humble leadership style Balance risk consciousness with strong innovation orientation Robust communication with diverse external network Ability to build or be part of cohesive top team, benefiting from expertise that complements their own
5 Through our data, we understand the critical high-level capabilities for digital sustainability To thrive in the new normal of disruptive change, organizations need to put the right conditions in place to be able to continually transform. We call this becoming digitally sustainable.
6 Digital Sustainability and financial services: How do credit unions stack up? The virtuoso performance of Financial Services firms reflects that the industry under pressure from expensive regulation, cheap competition and rising customer expectations has embraced digital ways of working to kick-start a revolution. With an overall DSI score of 73, Financial Services tops the Index, ranks first in three out of five dimensions, is the only industry to achieve a DSI score above 50 out of 100, and beats its closest rival by a staggering 30 points. Agility poses by far the biggest problem for Financial services firms, with the industry placing second to last in this dimension and a DSI score of just 19. With this in mind, swift decision making and an emphasis on continual improvement and innovation are key areas to address.
7 In a digitally sustainable organization, the nature of work has changed, and jobs have shifted accordingly 7
8 A new breed of leaders and talent with different behaviors than their predecessors are needed Traits Curiosity Tackle problems in a novel way, see patterns in complex information and pursue deep understanding Risk taking Are will to take a stand, or take changes based on limited information Adaptability Are comfortable with unanticipated changes of direction or approach Tolerance of ambiguity Are comfortable with uncertain, vague or contradictory information that prevents a clear understanding or direction Confidence Believe that they can influence positive outcomes Source: Korn Ferry Assessment Data Competencies Cultivates innovation Create new and better ways for the global organization to be successful Manage ambiguity Operate effectively even when things are not certain or the way forward is not clear Strategic vision See ahead to future possibilities and translating them into breakthrough strategies Engage and inspires Create a climate in which people are motivated to do their best to help the organization achieve its objectives Drives results Consistently achieve results, even under tough circumstances Drivers Independence Prefer an entrepreneurial approach and limited organizational constrains Structure Prefer asymmetric, unstructured work environments Challenge Are motivated by achievement in the face of tough obstacles How does this compare to traditional credit union leadership? We analyzed the traits, competencies and drivers of more than 511 digital leaders, and compared them against population norms from our 4.5 million data point assessment database to create a distinctive profile of the qualities needed for the digital age.
9 Understanding the true nature of an organization s digital talent inventory can drive critical key build vs buy decisions in a tight talent market WEAK Experiences relevant to digital era STRONG Near-term catalysts Accelerate progress toward immediate goals in the digital journey Career journey will be accelerated or limited by tactical business needs Business-as-usual talent Most impactful in functions devoted to maintaining stability of core business processes Lifecycle may be limited depending on rate of change in the overall business Tomorrow s talent today Drivers of strategic innovation going forward Key succession candidates Talent on the journey Best placement is in roles where they are programmatically exposed to experiences relevant to the digital journey Should be involved in succession processes WEAK Mindset relevant to digital era (competencies, traits, drivers) STRONG
10 Certain roles are absolutely critical to the digital journey Product Management Agile UX/UI design Design-thinking Architecture Typical High-Demand Roles: Product Management Leaders Product Officers, Product Champions Owners Channel Typical High-Demand Roles: UX Design Leaders Design thinking leaders Agile Coaches and Scum Masters/Leaders DevOps Cybersecurity Cloud Engineering Cloud deployment API Platform enablement Typical High-Demand Roles: Full Stack Architect API Head DevOps Lead Analytics and Data z Machine Learning Lead; Data Scientists Typical High-Demand Roles: Product Security Manager
11 We are seeing organizations deploying a range of strategies to address digital people challenges High-level leadership Structural strategies New C-Suite roles (ex: Chief Data Officer) Changed reporting lines Digital SWAT teams People development strategies Re-worked leadership competency models Increased focus on high-level leadership development often deploying immersion or cross pollination Shock and awe strategies to create a sense of burning platform Mid-level leadership and below Large-scale organizational re-design Job re-design Outside hiring at scale for key competencies (ex: data science) Struggle to fill certain key digital roles Increased attention to development of frozen middle More leadership development efforts lower in org structure Externships for key HiPo talent at disruptor organizations Concern about culture but little concrete action 11
12 Digital sustainability depends on sharply defining and activating the organization s digital people lens Driving the entire talent supply chain with a high degree of intentionality for the digital journey creates measurable lift in results. DIGITAL PEOPLE LENS 1.Define desired outcome(s) of digital journey 2.Identify needed activities to achieve that outcome 3.Understand peopledriven structure and capabilities crucial to these activities 4.Crisply delineate jobs and job families associated with digital 5.Create a coherent framework for defining and assessing digital talent and leadership 6.Supercharge digital leadership and talent through development, performance management, rewards, and engagement Where are we trying to go? What do we need to do to get there? What will we need people to do to get there, and how should we organize them? What work will we need people to do? What kind of people do we need? What will we do to make our people successful on the digital journey? 12
13 Sample situation: How the Digital People Lens could play out for a particular outcome Through each step, the Digital People Lens process yields highly practical and actionable outputs. 1.Define desired outcome(s) of digital journey 2.Identify needed activities to achieve that outcome 3.Understand peopledriven structure and capabilities crucial to these activities 4.Crisply delineate jobs and job families associated with digital 5.Create a coherent framework for defining and assessing digital talent and leadership 6.Supercharge digital leadership and talent through development, performance management, rewards, and engagement DATA SCIENCE JOB ARCHITECTURE CURRENT DATA SCIENCE TALENT HEATMAP SHIFTS TO OPERATING STRUCTURE DIGITAL LEADERSHIP ACADEMY Create cross-functional data CoE spanning from customer interface all the way back through supply chain Structurally distinguish analytics from collecting and cleaning of data Flatten structures for data roles Rapid-cycle immersions for digital-speed behavioral shift 13
14 Creating and measuring success Factors for success Defining key metrics Engagement and alignment of business and HR leadership Illustrative business metrics Illustrative people metrics Consistency and clarity throughout the process on outcomes desired and activities needed for digital journey Realistic and market-vetted view of digital jobs Commitment to consistent talent assessment criteria across internal and external talent Clear-eyed look at digital people enablement against leading practice in market Customer experience measures (such as NPS) Productivity per worker Utilization of available technology Ideation rate Employee engagement Retention rate vs desired retention rate for digital talent Volume of succession candidates generated for key roles Performance on the Digital Sustainability Index should improve as key interventions are made thus driving gross profit margin. 14
15 Thank you! Melissa Swift Global Leader, Digital Solutions Gus De Camargo North American Leader, Technology Officers Practice
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