Making sense of the “Future of Work “and the “Transformation” required

Making sense of the “Future of Work “and the “Transformation” required

A lot of my clients talk about the Future of Work and Transformation, but when I speak to them, I get several different definitions and understanding of what either of those phrases mean. I would like to share my understanding and hope it is helpful for you as a guide.

The Future of Work

“The start of the decade has seen a convergence of three major trends: the accelerated use of Fourth Industrial Revolution technologies in the midst of the pandemic, job market disruptions to both remote work and work requiring physical presence, and a wide-ranging call for greater inclusivity, equity and social justice.” 

World Economic Forum (WEF), 2020

The Future of Work is not only hybrid working and it is not only digitalisation - it is both those things, as well as ESG and new modes of working – gig, crowdsourcing, and partnership. It impacts everything we know about structure, jobs, benefits, rewards, performance management and development. 

The dynamic from an employee perspective is the emergence of a very different relationship with employers – one Reid Hoffman calls The Alliance – a kind of dynamic mutually beneficial deal where employers offer “tours of duty” for employees. We see this kind of system already at work in Unilever in their FLEX system. FLEX is an AI-powered platform to identify personalised open opportunities across the business, in real time.

Jeroen Wels, Executive VP HR, Unilever, said:

 “With FLEX Experiences, Unilever is redefining the future of work, creating a flexible, networked, diverse and inclusive organisation which attracts the best talent and inspires the passion and commitment of its people. It is part of our vision to nurture a pioneering culture.”

Transformation 

The word Transformation is very confusing, because we have Digital Transformation, Workforce Transformation, and all kinds of other Transformation with no clear place in the organisation of where it belongs. What we do know, is that this has become a critical issue for the C-suite and Boards. In the Gartner CEO’s Top 10 Strategic Business Priorities for 2022-2023, Growth and Tech-related issues dominate (both decreasing slightly), but this is closely followed by Workforce which is up two places from the previous survey. 

For me there are these pieces of work to be done:

• Start with the Organisational Strategy, Digital strategy, and the supporting Operating model before you touch workforce transformation– these are the key stakeholders and services delivered to them as well as what is required to enable the delivery of those services from a technology and enabling services point of view. Have a clear view of the future value chain.
• Develop an enabling skills framework and ontology.
• Unpack the value chain into critical high-level processes and agree where the work is/will be performed, where input is/will be given to enable the work to be performed and where the decision is/will be made. Ensure that the “where” includes technology and automation capability.
• Draw down the perform, input and decision accountabilities from this analysis and group them to understand the scope of each area in the operating model and then assemble them into roles and capabilities required to deliver the work. Look at workload to assess the capacity required and ask if there is a smarter way of working. Ensure what is left are higher value and more meaningful work. 
• Assess the gaps between the current and future operating models and capabilities to develop a Transformation and People Strategy – understanding the size of the gap and what we can afford, what do we need to buy (recruit), build (develop – reskill, upskill) and partner (we need to have access to, but don’t need to own it). 
• Ensure your HR function can deliver this strategy and has the right structure and enabling technology to map skills, run internal talent marketplaces, drive reskilling and upskilling, and deliver the workforce transformation.

There are really 5 key outcomes here that need to come together:

• The target operating model
• The skills framework
• The target interaction model
• The process-based outcomes and capabilities
• The People Strategy based on the gap
• A transformed and technology enabled HR function

To sum this all up, skills become the focal point and the trading commodity. An organisation has the need for a set of skills (hard AND soft) and the employee carries what is like a skills backpack with them that has a certain worth in the market. There is a shared accountability to ensure this skills backpack is kept up to date and is future relevant. 

This is supported by The Human Deal as described by Gartner to ensure that for while we have this mutually beneficial relationship, there is a leadership approach and culture that is deeply human centric. This involves:

• A clear shared purpose
• Deeper connections at work
• Radical flexibility in work
• Personal growth opportunities
• A focus on wellbeing

Nokia is a great example of an organisation that has developed such a Human Centred People Strategy driven by Stephanie Werner-Dietz, Chief People Officer at Nokia. It is called from working to thriving and comprises the following:

• Growing together: We work together to align personal and professional growth with the need to sustain Nokia’s business growth. 
• Leading lights: Our leaders create a working environment in which people can be open, fearless, and empowered, developing themselves and their teams.
• We belong: We have a sense of belonging at Nokia and feel personally connected to our colleagues and our work. 
• Experience is everything: Our daily experiences enable each of us to be ourselves, free to focus, create and innovate.

If you would like to learn more, you can buy a copy of my book adaptive HR here.