Digital HR: Driving organizations to be digital, not just do digital

Digital HR: Driving organizations to be digital, not just do digital The Dbriefs HR Executive series Anthony Abbatiello, Principal, Deloitte Consulting LLP Art Mazor, Principal, Deloitte Consulting LLP October 17, 2017

Discussion topics HC Trends 2017 overview Digital ambitions for HR Questions and discussion 2 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Polling question #1 What is Digital HR? 1. Consolidated, integrated, engaging, accessible anytime and anywhere, highly automated technology 2. HR customer experience, personalization and engagement 3. A set of traits and behaviors of your overall organizational environment that impact how you are organized, operate and behave 4. An operating model that supports dynamic organizations with expertise in teams and change rather than stick and box structures 5. All of the above 6. Don t know 3 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

An overview of the 2017 Deloitte Global Human Capital Trends: Rewriting the rules for the digital age The organization of the future is arriving. The Future of Work The Future of the Workforce The Future of HR 90% of companies we surveyed are redesigning their organizations to be more dynamic, team-centric, and connected. Invent the future through the augmented workforce Push the leadership boundaries into the digital world Cultivate the employee experience for productivity & growth Create a more diverse & inclusive workforce Build a culture of continuous learning, adaptability & career growth Establish continuous performance and development processes Leverage digital technology to design and improve the work, the workplace, and the workforce Focus analytics on improving business outcomes Tackle the talent issue at the source through cognitive recruiter 4 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Beyond Digital HR Organizations must adapt and achieve digital maturity to operate effectively in this new world 85% surveyed believe that being a digital business is important for success 40% agree that their leaders have the vision necessary to lead digital business efforts 47% say management structure and practices interfere with the ability to successfully engage in digital business 72% lack sufficient talent, and < 20% are developing or utilizing existing talent 56% think their organization does not provide resources or opportunities to develop digital skills 15x VP-level leaders at risk of leaving in 1 year if they do not have the opportunities to develop digital skills 5 Copyright 2017 Deloitte Development LLC. All rights reserved. Source: 2017 MIT SMR and Deloitte Digital business research Digital HR: Driving organizations to be digital, not just do digital

The Digital Organization Network + Leadership When activated within the organization, these elements enable Digital in an enterprise the right networked teams and leaders build desired experiences, employees engage in intuitive solutions, and a culture of agility and smart risk-taking is embedded in employee development. Digital Ready Workforce Connected Work Digital HR 6 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

What is Digital HR? Digital HR is the application of Digital Traits and Behaviors, HR Customer Centricity, and advanced technologies through the lens of the High-Impact HR Operating Model to optimize HR to deliver sustainable organizational performance M I N D S E T : Digital Traits and Behaviors F O C U S : HR Customer Centricity E N A B L E R : Advanced Technology L E N S : High-Impact HR Operating Model Continuous Innovation Engagement Intentional Collaboration and constant disruption Changing Nature and Typology of Work Dynamic Skill Requirements Experience Personalization Iterate Agility Unified Engagement Platform Digital Cognitive and AI Social / Mobile Fail Fast but Learn Faster Democratized Real-Time Advanced Analytics Robotic Process Automation Digital Reality (Augmented and Virtual) Cloud / SaaS Internet of Things HR Leadership, HR Operational Services, Business HR, Communities of Expertise, External Networks & Partners, HR Process 7 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

The Digital Ambitions of HR across the spectrum of Focus and Impact IMPACT Transformative Business Leadership Digital Organization When companies focus only on the Technology, and not the customer, the traits and behaviors, and optimizing the business model, they are not even Doing Digital things Activating the Digital Organization HR leads the organization through the digital revolution The Organization becomes digital Digital Leadership Digital HR Digital First HR Organization HR becomes a role model by pivoting to a Digital First approach HR becomes a digital leader Engaged HR Customers Digital Experience and Engagement Reinventing the HR Customer Experience HR becomes digital Leading HR Services HR Ops HR Customer HR Org Business FOCUS Digital HR Operations Optimizing existing HR Operational service and technology HR begins the digital journey 8 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Polling question #2 What is your Digital HR Ambition? 1. Optimize existing HR Operational service and technology to begin our journey 2. Leverage Digital HR Strategies to create a truly irresistible HR Customer Experience 3. Become a Digital leader and role model for the rest of your organization 4. Take a leadership role in transforming your organization to a Digital Organization 5. Don t know/not applicable 9 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

And we must do things differently I M A G I N E D E L I V E R R U N Chart your digital ambitions How can Digital HR/Organization help achieve your business objectives? Get the concept right What experience do you want to deliver and what behaviors do you want to infuse into your organization to fulfill your digital ambitions? Build and sustain Scale your ambitions and sustain organization performance through shifting behaviors and enhancing experience and engagement. Sense Aspire Decide Deepen Design Prove Launch Scale Operate Sense Aspire Decide Deepen Design Prove Launch Scale Operate Understand trends and disruptors to uncover opportunities in the digital landscape Outcome: Digital HR Maturity Sensing Frame understanding to put opportunities in context Outcome: Ambition statements with DNA Blueprint Chart a path to success: the initiatives to pursue Outcome: Initial list of Digital HR Sprints Understand HR customers unmet needs, motivations, concerns, and drivers Refine the behaviors you want to infuse into the organization Outcome: Customercentric Digital HR and Digital DNA Sprints Employ Design Thinking in combination with HR customer insights, technology capability and business objectives to determine how to organize and operate to drive your digital ambitions Outcome: HR Operating Model, Next Gen Processes and Technology Enabler Options Iteratively building, testing, and learning strengthens and derisks innovations Outcome: Proven set of initiatives that will drive the future HR vision Define the requirements of a successful experiment with targeted Digital HR components Outcome: Pilot Digital HR/Org components Build, launch, and deliver the value proposition brings things to life Outcome: High- Impact HR Operating Model Enhanced Digital Maturity HR Customer Centricity Continuous measurement, evaluation and improvement of the HR customer experience & engagement, the digital mindset, the HR op model, and use of advanced technology Outcome: Sustainable Organizational Performance 10 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Polling question #3 Where is your organization on the Digital HR journey? 1. Don t know where to start 2. Have clear digital ambitions, but lack the structure, workforce or leaders to deliver 3. Have delivered on our Digital HR promise, but lack the ability to scale and take it to the next level 4. Don t know/not applicable 11 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Where are you on the Journey? You do not have an understanding of what it means to Be Digital (or know where to start) Getting the right focus You have a Digital Ambition but do not have the right structure, workforce or leaders Getting the concept right You do not have capabilities to scale (or know where to harness new skills) Getting the organization to scale Where will you focus? Prioritize and develop the right Digital DNA traits to invest your time and energy to deliver your digital ambition What does it mean to Be Digital? Where should we focus our digital efforts? Which leaders should be involved in creating my digital journey? Which aspects of the organization need to evolve to drive our Digital Ambition? Will your concept deliver your business needs? Develop and rapidly refine your ambition, rethinking the role of leaders, structures that deliver and new talent models How do we prepare our leaders? How do we structure to achieve our ambition? How do we use new talent models to deliver value and adapt quickly? How do we connect our workforce to maximize collaboration across our talent models? Are you equipped to scale the business? Scale your organization by deploying a high-performing set of talent capabilities and using analytics to sustain organizational performance How do we structure to operate as a network of teams? How do we maximize digital transformation through ecosystems and partnerships? How do we equip our teams with new digital skills? How do we use analytics to motivate performance? How do we partner with HR to deliver consumer grade experiences for our workforce? 12 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Polling question #4 What is Digital HR? 1. Consolidated, integrated, engaging, accessible anytime and anywhere, highly automated technology 2. HR customer experience, personalization and engagement 3. A set of traits and behaviors of your overall organizational environment that impact how you are organized, operate and behave 4. An operating model that supports dynamic organizations with expertise in teams and change rather than stick and box structures 5. All of the above 6. Don t know 13 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Join us November at 2 p.m. ET as our HR Executives series presents: Talent acquisition: Enter the cognitive recruiters? Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

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Contact information Anthony Abbatiello Principal Deloitte Consulting LLP aabbatiello@deloitte.com Connect with me on LinkedIn Art Mazor Principal Deloitte Consulting LLP amazor@deloitte.com Connect with me on LinkedIn Burt Rea Managing Director Deloitte Consulting LLP brea@deloitte.com Connect with me on LinkedIn 19 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

Eligible viewers may now download CPE certificates. Click the CPE icon in the dock at the bottom of your screen. CPE 20 Copyright 2017 Deloitte Development LLC. All rights reserved. Digital HR: Driving organizations to be digital, not just do digital

This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright 2017 Deloitte Development LLC. All rights reserved. The future of procurement in the age of digital supply networks