The importance and application of Leadership Assessment and Development interventions in the context of current global and local Human Capital trends Presented by David Bischof SIOPSA 2016
Global Human Capital Trends 2016 One of the largest-ever HR and talent studies 7,000+ Business and HR leaders 130 countries
Disrupting the workforce landscape Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s. Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done. Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change. New social contract between companies and workers: Younger workers demand rapid career growth, a compelling and flexible workplace, and a sense of purpose at work.
10 trends for 2016
Percent rating trend important Global Trends - Importance of Human Capital trends to business % ve r y i m p o r t ant 2 0 16 % ve r y i m p o r t ant 2 0 15 Organizational design 92% 56% Leadership 89% 57% 50% Culture Engagement 86% 85% 54% 48% 50% Learning 84% 44% 39% Design thinking 79% 39% Skills of HR organization 78% 36% 39% People analytics 77% 36% 29% Digital HR 74% 32% Workforce management 71% 28%
Percent rating trend important Importance of Human Capital trends to business: South Africa 213 Respondents from South Africa Organisational design Culture 91% 90% % ve r y i m p o r t ant 2 0 16 57% 55% Engagement 89% 52% Leadership 88% 65% Learning 87% 52% HR Skills 84% 48% The GIG economy 81% 37% Digital HR 80% 45% Design Thinking 80% 40% People Analytics 79% 45%
South Africa Trend 1: Organisational design The rise of teams 91% say the trend is very important or important Shift from topdown hierarchy to a network of teams to deliver results faster Only 31% of large companies are organised functionally today 41% are reorganising and 13% plan to reorganise in this year 22% feel expert at building cross-functional teams 15% believe their companies are very ready to effectively redesign their organisations 11% understand the way their people work together in networks
Organizational design A network of teams A A B Shared values and culture Transparent goals and projects B F C D Free flow of information and feedback C D E E G People rewarded for their skills and abilities, not position How things were How things are How things work
South Africa Trend 2: Culture Shape culture, drive strategy 90% say the trend is very important or important Senior leaders must work with HR to align culture to business goals Culture helps bind people together and can drive execution and consistency 31% believe culture is a potential competitive advantage 30% believe they understand their culture well today 27% believe they have the right culture
South Africa Trend 3: Engagement Always on 89% say the trend is very important or important Engagement is shifting from once per year to an always on employee listening process Despite the emergence of many tools for frequently evaluating employee sentiment, 58% of organisations still measure employee engagement only once a year 29% 8% are excellent at providing programmes for young, old, and multi-generational workforce Do not have programmes in place for Millennials and other generations
The relationship between culture and engagement
South Africa Trend 4: Leadership awakened Generations, teams, science 88% or say the trend is very important important Need different types of leaders, who are effective as an individual and in teams, at all levels 39% have little or no investment in diversity in leadership Initiatives to develop versatile leaders require rigorous structure backed by data have strong programmes to build 16% Millennial leaders 14% have strong programmes to build Global leadership 18% described themselves as strong at succession planning throughout the business
South Africa Trend 5: Learning Employees take charge 87% say the trend is very important or important Employees today demand learning opportunities that fit their individual needs and schedules Learning must be a continuous process, not an episodic event, and a company-wide responsibility, not confined to HR only 3% of companies believe they deliver very effective learning More companies using employee-centric learning models 8% of companies are now embracing MOOCs to train employees 19% of companies are using advanced video, and multimedia learning methods
A continuous learning model Source: David Mallon and Dani Johnson, The learning architecture: Defining development and enabling continuous learning, Bersin by Deloitte, 2014, http://bersinone.bersin.com/resources/research/?docid=17435.
A year of change and disruption The digital world of work has disrupted the way we operate, enabling an "always-on" organisation, focused on culture, engagement, open communication, and feedback A new organisation a has emerged, a "network of teams," forcing companies to reorganise, redesign roles and rewards, redefine careers, and change the role of management Enabling this, organisation talent practices are focusing on the employee experience, influenced by design thinking, technology, and transparency HR leaders are responding rapidly, focused on analytics, design thinking, employee-driven learning, and digital HR A new breed of leaders is emerging: Younger, more connected, more agile, always learning, developed through science 2016 will be a disruptive year, as new models of management, open feedback, new HR platforms, and organisational design take centre stage for the human capital agenda
Leadership Development Consulting - A business imperative of global capabilities and market dominance Current leadership development consulting space is a fragmented marketplace where some providers have achieved substantial brand equity and others are in practice development mode. The ecosystem is inhabited by a multitude of providers representing broadly diverse business models, target markets, and value propositions from high-touch professional services firms to transactional boutiques (see ecosystem map). Barriers to entry remain low and there is an absence of national, international, and universally agreed upon academic standards to evaluate methodologies and models. Leadership programs tend to proliferate without objective assessment and success is often measured subjectively. However, since the start of 2014, 13 deals have been executed by a combination of executive search, human capital/talent management, and Big Four consultancies
The importance of Assessment And Development related to the HC Trends Have you defined clearly what the strategy demands from your leaders? Have you got the right leaders for Executive/C-Suite succession? How can you help senior leaders to transition seamlessly into Executive/C- Suite roles? Are you spotting leadership potential at all levels? How can you convert hi-pos into a strong leadership pipeline? Have you properly identified, defined and communicated your organisational culture? Have you considered assessment and development of teams to work more effectively together? Have you defined clearly what the transformat ion demands from your leaders? How will you know who is the best fit to lead the transformation? How can you help leaders to accelerate the pace of transformation? Have you got enough future ready talent? How can you build futureready talent?
Assessment and Development for the VUCA world The message from leaders is that we don t do this well!! Current assessment and development techniques based on behavioural leadership models and day in the life of techniques from the 70 s and 80 s Behavioural assessments and development define appropriate behaviour for a context, but tend to do so without knowing what the context is There needs to be stronger focus on leadership adaptability, versatility and agility and how to identify this in a future world Focus needs to move from improving standard leadership behaviours to understanding capability in the business context - Change behaviour by changing the way people think Current leadership development in Logged_Off mode with off the shelf training and development courses. People are identified for development, learn, come back and lead BUT can t or won t apply on the job. Logged_On development speaks to imbedding leadership development in the business. Development in business should be contextually based (i.e. develop and implement a PDP during a business discussion rather than twice a year in a performance discussion) Focus of development should rather be on the cognitive link between leadership and business and it should be imbedded in the business cycle (i.e. mastering a new leadership approach by applying it to real world business situation).
Key sound bites Organisational redesign is a priority in the year ahead. Companies are building cross-functional networks of teams. The traditional leadership pyramid is not producing leaders fast enough. Companies are not seeing a return on their traditional investment in leadership development. Companies are challenging the leadership pyramid. Companies need to accelerate leadership development, particularly for Millennials who now make up more than half the workforce. Companies are catering to the employee experience. New roles such as the Chief Experience Officer and Chief Listening Officer are emerging to address persistent culture and engagement challenges. Companies are putting employees in charge of their learning experience. Digital HR is playing a larger role in making systems easier to use by employees. Companies are taking a more robust approach by using design thinking to create solutions that drive employee satisfaction, productivity and engagement
David Bischof Deloitte Assessment Centre Manager Direct: +27 (0)11 517 4011 l Main: +27 (0)11 806 5000 l dbischof@deloitte.co.za 2016 Global Human Capital Trends The new organisation: Different by design www.deloitte.com/hctrends
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