Inspire EY Wednesday February 27 th Lorcan Malone Chief Executive

Transcription

1 Inspire EY Wednesday February 27 th 2019 Lorcan Malone Chief Executive

2 Agenda Welcome: Lorcan Malone Introduction: Eoin O Reilly The 'Why' before the 'How : Prof Neil Gibson, Chief Economist, EY Ireland Moving from insight to action: Mary-Kate Martin Smith, People Advisory Services & Emmanuel Adeleke, Data Analytics, EY Ireland Q&A: Eoin O Reilly & Lorcan Malone Close: Lorcan Malone Page 2

3 Likelihood of change = Level of dissatisfaction x Vision x Skills x Incentives X Action plans Page 3

4 The Why before the How Socio-economic changes necessity new thinking 27 Feb 2019 Prof Neil Gibson Chief Economist EY Ireland

5 Agenda Economy booming, but all is not well The trends shaping change Purpose leading our choices? Page 5

6 Economy booming, but not all is well Page 6

7 All the signs are positive ROI economic indicators February 2019 Snapshot of the Irish economy GROWTH EMPLOYMENT INFLATION TAX RECEIPTS +4.9% Q3 17 Q3 18¹ +2.3% Q4 17 Q4 18² +0.2% Jan 17 Jan % Jan 18 Jan 19 WAGES RETAIL SALES BASE RATES UNEMPLOYMENT Current rate = 5.3% +4.1% Q4 17 Q4 18³ +5.1% Dec 17 Dec 18⁴ +0% Jan 18 Jan pp Jan 18 Jan 19 5 CAR SALES EXCHANGE RATE EXPORTS HOUSE PRICES -2.8% Q4 17 Q % Jan 18 Jan % Dec 17 Dec % Dec 17 Dec 18 1 Real GDP 2 People employed 3 Nominal weekly wage growth, seasonally adjusted 4 Nominal, excluding motor sales, seasonally adjusted 5 Seasonally adjusted monthly rate, Export value (nominal), seasonally adjusted pp = percentage points Source: CSO, February 2018 Page 7

8 Job growth impressive Construction Education Admin' & support services Restaurants & hotels Industry Public admin' & defence Health & social work Employment by sector, ROI, Q Q ICT Retail Transportation & storage Professional services Total employment growth: 300,600 Financial, ins & real estate Other services Agriculture Source: CSO, ONS, seasonally adjusted Page 8

9 But trust is low 52 Global China 59 Malaysia 49 US 73 Indonesia 58 Mexico 48 Australia 72 India 56 Canada 46 Argentina 71 UAE 55 Hong Kong 46 Brazil 62 Singapore 54 The Netherlands 46 Italy 52 Columbia 46 S. Korea 45 S. Africa 45 Turkey 44 France Trust (60-100) Neutral (50-59) Distrust (1-49) Source: Edelman Trust Barometer 44 Germany 43 UK 42 Ireland 40 Spain 39 Japan 29 Russia Page 9

10 Risks are on the rise Global growth / trade wars Populism Brexit Competitive Pressures (wages) Confidence Political fragility (NI and ROI) Climate change Public service demands / funding Indebtedness Page 10

11 We have many challenges to face To name but a few Aging population Infrastructure deficits Public sector demands growing faster than tax revenues Environmental change and sustainability Inequalities Regional disparities Revamping of education journey Page 11

12 The trends shaping change Page 12

13 Key economic and societal trends Trend #1 Global Growth Trend #2 Brexit Trend #3 Geo-political unrest Trend #4 Competitiveness pressures Trend #5 Talent availability Trend #6 Salary levels Trend #7 Disruption Trend #10 Attitudinal change Trend #8 Legal & Regulatory Trend #11 Environmental change Trend #9 The dominance of large Trend #12 Diversity, fairness, inclusion Page 13

14 What people care about is remarkably stable 12 What matter most? Ireland (%) 12 What matters most? United Kingdom (%) Source: OECD Top 5 in Sweden: 1. Life Satisfaction 2. Health 3. Education 4. Environment 5. Work-Life Balance Top 5 in France: 1. Health 2. Life Satisfaction 3. Education 4. Housing 5. Work-Life Balance Top 5 in the US: 1. Life Satisfaction 2. Health 3. Education 4. Work-Life Balance 5. Environment Page 14

15 Salary cost a catalyst for change Average weekly wage increases by sector, Ireland, year to Q Admin Transport Construction Mining ICT Finance and insurance Arts All employees Accommodation Health Other Education Prof. Services Utility supply Real estate Retail Industry Manufacturing Public admin All employees: +4.1%. Average annualised wage now 39,606 Rising salary - double edged sword Workers enjoy pay rises! Can accelerate the automation journey Though it is not without pain (given happy workers) It is stimulating new businesses and transforming the way firms do what they do 0% 2% 4% 6% 8% 10% 12% Page 15

16 People do not feel they are going to be better off Source: Edelman Page 16

17 What do people really think about transformation? Will automation Kill jobs Take my job Increase unemployment (search engine auto complete options) The reality of change The fear of job loss Not having the training and skills necessary to get a good paying job Automation and/or other innovations taking your job away All employees 59% 55% Multinational employees 63% 60% Source: Edelman Trust Barometer Jobs expected to be transformed Food preparation Healthcare Construction Professional services Cleaning Logistics Driving Energy Agricultural labour Public administration? Source: Talent Leaders Pulse report 2019 Source: OECD/Economist Source: EY Page 17

18 Purpose leading our choices? Page 18

19 Case Study The Government is clear what our vision is Page 19

20 A personal perspective analytics in EY Cost savings e.g. Finance, Risk Management, Travel Faster turn around e.g. Finance, Conflict checking Improved customer experience e.g. Expense policy chatbots Greater adoption of new applications e.g., Mercury, SF Process standardization e.g., Finance, Talent Bringing Innovation closer e.g. Travel, Meetings Improved compliance and data quality e.g. RM, Procurement, pipeline hygiene, Revenue planning Encouraging new learning e.g. Automation on EY Leads, EY Badges Page 20

21 The better the question Page 21

22 How before the Why final reflections What are we (society / businesses / individuals) trying to achieve? What priorities do we hold, what matters more or less? To get from here to there what is the journey? Who will be impacted but the journey (and the new destination) What tools / processes can we use to get there Who needs to know what that involves and what difference it can make? How seriously to we take the analytics potential is it at Board or Executive level? (How do ideas get heard and taken seriously?) Ensuring some accidental ideas can still make it, answering the questions you did not know needed asked Recognising the need for purpose, empathy and responsibility in realising the analytics potential Page 22

23 Thank you Neil Gibson Chief Economist at EY T: E:

24 Moving from insight to action Mary-Kate MartinSmith I People Advisory Services Emmanuel Adeleke I Data Analytics EY Ireland

25 Recap on what you told us What s the key takeaway for this discussion? Page 25

26 Key areas contributing to analytics success, with a focus on the human element and organisational culture Strategy & Leadership Organisational capabilities Analytics production Analytics consumption Make data and analytics a strategic imperative Align the organisation around data and analytics Build and maintain your analytics backbone Start with the end user in mind Identify analytics leaders and embed data and analytics throughout the enterprise Create an analytics-driven culture Define and manage data and analytics competencies Align business user incentives and capabilities Measure results Underpinned by a culture of decision making and commitment to continuous improvement Page 26

27 With the right people, culture and values, you can accomplish great things Page 27

28 How can you create a data-driven culture that is not just the reserve of the few, but of the many? Leadership and talent Look at how you source and enable the right talent Infuse and prove Deploy analytics use cases to accelerate path to value Scale and access Access to the right capabilities and right mix of resources to scale Develop and sustain Build the analytics skills of people who are not analytics expert Engage and reward Give people an incentive to change Page 28

29 Key takeaway Going from insights to action to value Start with the business problem focus on the end user Ensure analytics alignment (capabilities, incentives) Experiment and measure value; then scale Focus on the human element! Page 29

30 Thank you

31 Q&A