Corporate Agility May 08


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Presentation delivered at World@Work Conference, May 2008

Published in: Business, Career

Corporate Agility May 08

  1. 1. Charles Grantham, PhD. James Ware, PhD. Executive Producers Work Design Collaborative World at Work Total Rewards Conference May 20, 2008 Philadelphia, Pennsylvania A Revolutionary New Model for Competing in a Flat World CORPORATE Agility:
  2. 2. Today’s Agenda <ul><li>Goal: </li></ul><ul><li>A conversation about corporate agility </li></ul><ul><li>Some Topics for Discussion: </li></ul><ul><li>Why is corporate agility so important ? </li></ul><ul><li>The changing nature of work – and the workforce </li></ul><ul><li>Speed bumps on the road to the future </li></ul><ul><li>What can you do to enable flexible work successfully? </li></ul><ul><li>Agenda </li></ul><ul><li>importance of mobile work </li></ul><ul><li>challenges </li></ul><ul><li>some data </li></ul><ul><li>guidelines for success </li></ul>
  3. 3. “Something’s Happening Here . . . What it is, is not exactly clear ”* <ul><li>An Assertion: </li></ul><ul><li>The economy is in the early stages of a fundamental transformation in the way work is organized, managed, and performed. </li></ul><ul><li>A Belief: </li></ul><ul><li>The creative, integrated management of workers, the places they work, and the technology they rely on can reduce workforce support costs by as much as 40% while substantially improving productivity, effectiveness, worker engagement and retention, and organizational agility. </li></ul><ul><li>A Message: </li></ul><ul><li>Distributed work makes economic sense; it’s a reality today; yet most companies have been slow to embrace, enable, and/or support it effectively. </li></ul>*From “What It’s Worth,” by Buffalo Springfield
  4. 4. Drivers of Change Information Technology Globalization Demographics Public Policy Sustainability
  5. 5. Three Business Imperatives* * Corporate Agility , by Charles Grantham, James Ware, and Cory Williamson, AMACOM Press, 2007 Reducing Fixed Operational Costs Closing the Talent Gap Institutionalizing Innovation
  6. 6. One Vision of What’s To Come <ul><li>Work will be much more distributed – and will happen in many more places </li></ul><ul><li>Work will be much more collaborative </li></ul><ul><li>The workforce will be much more diverse </li></ul><ul><li>Social and economic bonds between workers and organizations will be weaker, shorter, and more fluid </li></ul><ul><li>Employment laws will reflect the new reality of the “free agent nation” </li></ul>WDC Futurescope
  7. 7. Two-Thirds of Work Today Takes Place Outside Corporate Offices* <ul><li>Work is already being accomplished in a wide range of locations, and on the go </li></ul><ul><li>Work is spread throughout the day and week (24x7); no more “8 to 5” industrial schedules </li></ul><ul><li>Work takes place in shorter “chunks,” down from months to weeks </li></ul>Corporate Facilities 35% At Home 35% In-Between 30% * Future of Work Research Program Workforce Surveys , 2002, 2004, 2007
  8. 8. The Distributed Workforce is Growing Rapidly * Source: WDC Demographic Projections, 2008 <ul><li>Drivers of Change: </li></ul><ul><li>documented Return on Investment </li></ul><ul><li>leadership support </li></ul><ul><li>energy costs </li></ul><ul><li>simplification of process </li></ul><ul><li>public policy incentives </li></ul><ul><li>Barriers: </li></ul><ul><li>old habits die hard </li></ul><ul><li>middle management resistance </li></ul><ul><li>technical and physical up-front investments </li></ul><ul><li>Wildcards: </li></ul><ul><li>recessionary economy </li></ul><ul><li>technology development </li></ul><ul><li>global politics/terrorism </li></ul>(x1000) 1990 1995 2000 2005 2010
  9. 9. Workforce Values and Expectations* This is not your father’s workforce VALUES TRADITIONAL WORKER EMERGENT WORKER Promotion Tenure Merit Retention Security Growth Management Style Paternalistic Peer Organization Chart Admire Ignore Changing Jobs Fear Advancement * Career Company’s Employee’s Responsibility Responsibility 8% 40% 52% 2007 (projected) 21% 29% 34% Traditional 48% 49% 46% Migrating 31% 22% 20% Emergent 2003 1999 1997 Type of Worker
  10. 10. Changing Psychology Drives Network Growth And a Fundamental Change in the Nature of the Workplace Drive a need for many more – and different – places to work Leading to a globally dispersed network of workplaces A dramatic shift in the relationships between organizations and individuals , together with the emergence of new tools and technology platforms
  11. 11. You Need a Comprehensive Workplace Strategy <ul><li>The utility of the workplace is being substantially impacted by technology and the evolution of the knowledge worker </li></ul><ul><li>But people need to be somewhere: the task is to support work, wherever it takes place </li></ul><ul><li>Communities, not just companies, will wage a global competition for the attraction and retention of talent </li></ul>
  12. 12. The Workplace Agility Survey 2008* Focus on Work Patterns and Supporting Technologies <ul><li>Kinds of workspaces used </li></ul><ul><li>Time spent in each workspace </li></ul><ul><li>Work activities </li></ul><ul><li>Technologies used </li></ul><ul><li>Value of technologies in use </li></ul><ul><li>Challenges of working remotely </li></ul><ul><li>Organizational support for flexible work </li></ul>* Designed and Conducted by WDC; Sponsored by Citrix Online
  13. 13. Individuals Work in a Variety of Places Never Use Use Less Than 20 Hours a Week Use More Than 20 Hours a Week
  14. 14. Flexible Work Policies Only Moderate Support for Flexible Work Our company prohibits flexible work Only a few employees are allowed to work flexibly We have a flexible work policy in place We have a very flexible work environment
  15. 15. Remote Work Productivity Challenges Understanding what is expected of me Keeping my boss up to date on my work Feeling part of the team and the company High Cost of Online Access Staying in touch with company goals Getting Online Keeping track of files and other company data Getting High-speed Bandwidth Access to Company's Servers Accessing personal work files Moderate Challenge A Major Headache 0% 10% 20% 30% 40% 50% Percent Reporting
  16. 16. What Does All This Mean for your Company? <ul><li>Major re-orientation to new markets and distribution channels </li></ul><ul><li>Significant value-added opportunities from services </li></ul><ul><li>Strategic partnerships with workplace services and IT providers </li></ul><ul><li>A need for continual innovation and re-invention </li></ul>
  17. 17. Four Speed Bumps on the Road to the Future Sources of Organizational Resistance <ul><li>Organizational Barriers: </li></ul><ul><li>Resistance from managers: “I can’t manage people I can’t see” </li></ul><ul><li>Resistance from workers: “When I’m not there no one thinks about me” </li></ul><ul><li>Technology Barriers: </li></ul><ul><li>Enabling flexible work work almost always requires major changes in technology and business processes </li></ul><ul><li>And few organizations are making effective use of good collaborative technologies that are readily available </li></ul>
  18. 18. Something to Keep in Mind Every college graduate already knows how to work flexibly – and expects it to be “the way things are”
  19. 19. For Further Information Dr. Charles Grantham Prescott, Arizona +1 928 771 9138 office +1 928 533 9149 mobile [email_address] Dr. James Ware Berkeley, California +1 510 558 1434 voice +1 510 558 1431 fax +1 510 206 8147 mobile [email_address] Website: Blog : Book: Corporate Agility American Management Association August 2007 ISBN: 0814409113
  20. 20. Wild Cards <ul><li>Vertical integration of the “work environment” market </li></ul><ul><li>Order-of-magnitude increases in energy costs </li></ul><ul><li>“ Green” credits become part of contracts </li></ul><ul><li>“ Free agents” form guilds </li></ul><ul><li>Private equity invests in “talent” </li></ul>
  21. 21. Something to Think About as You Plan <ul><li>Order and innovation go hand-in-hand </li></ul><ul><li>You have to remove wasted time, energy, and effort to gain resources for innovation and creativity </li></ul>Which activities should we start ? Which activities should we increase ? Which activities should we maintain ? Which activities should we decrease ? Which activities should we stop ?
  22. 22. Nine Strategies for Achieving Corporate Agility Close the Talent Gap Reduce Operational Costs Institutionalize Innovation Real Estate & Facilities Human Resources Information Technology Build distributed locations Find new talent pools Build collaborative platforms Shrink the footprint Outsource non-core activities Build web-based applications Design creative spaces Recruit diversity; reward creativity Install anywhere, anyplace tools Need Focus