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Leadership in 2025
A snapshot into future organizational
and management structures Public
© 2015 SAP SE or an SAP affiliat...
A convergence of forces is pushing businesses to
change the way they work
Let’s consider each force and its
impact on the ...
3© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Technological change
The expanding reach of computing, mo...
4© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Accelerating globalization
Work is no longer local – it e...
5© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Shifting demographics
The makeup of the workforce is chan...
6© 2014 SAP SE or an SAP affiliate company. All rights reserved.
40% executives worry that their organizations
will not ke...
7© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Forrester IT Survey, 2013
Free up budgets to enable simpl...
8© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Run
Simple
Our operating principle
© 2014 SAP SE or an SAP affiliate company. All rights reserved. 9Public
How can companies meet these
challenges and prepar...
Global 27-country twin surveys
5,400 People; 2,700 executives and 2,700 employees
conducted by Oxford Economics
Oxford Eco...
11© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Simplifying the Future of Work Survey
To understand the ...
12© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Employee loyalty
Adequate leadership
Adequate technology...
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
The leadership cliff
14© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Know how to
inspire
employees
51%
Are able to
drive real...
15© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Leaders must be able to lead simplification
67%
Simplifi...
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16
The development
mandate
Employees need and want more
50%
34%
The skills they
have now will be
what’s needed in
3 years
Their company is
able to gi...
18© 2014 SAP SE or an SAP affiliate company. All rights reserved. 18
51%
We are more
merit-driven than
tenure-driven 43%
W...
19© 2014 SAP SE or an SAP affiliate company. All rights reserved.© 2015 SAP SE or an SAP affiliate company. All rights res...
20© 2014 SAP SE or an SAP affiliate company. All rights reserved.
But how do you build a learning culture?
Traditional
For...
21© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Learning trends…
Me
Crowdsourced
Accelerated
Available
E...
22© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Companies that are most adept at
managing uncertainty & ...
23© 2014 SAP SE or an SAP affiliate company. All rights reserved. 23© 2015 SAP SE or an SAP affiliate company. All rights ...
24© 2014 SAP SE or an SAP affiliate company. All rights reserved. 24© 2015 SAP SE or an SAP affiliate company. All rights ...
25© 2014 SAP SE or an SAP affiliate company. All rights reserved. 25© 2015 SAP SE or an SAP affiliate company. All rights ...
26© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Assess how the organizational structure and talent
ecosy...
27© 2014 SAP SE or an SAP affiliate company. All rights reserved.
What you think your organizational structure
looks like
28© 2014 SAP SE or an SAP affiliate company. All rights reserved.© 2015 SAP SE or an SAP affiliate company. All rights res...
29© 2014 SAP SE or an SAP affiliate company. All rights reserved.
managing change =
expectations & accountability
How do y...
30© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Managing Change
Requires all levels of involvement
Emplo...
31© 2014 SAP SE or an SAP affiliate company. All rights reserved.
In summary
• Future of Work will be different
• Leaders ...
32© 2014 SAP SE or an SAP affiliate company. All rights reserved.
In case you’re interested in more…
As well as SAP social...
© 2014 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
Kerry Brown
VP User Adoption
@KerryNBrown
www.li...
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Leadership in 2025: A Snapshot into Future Organizational and Management Structures

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www.sap.com/futureofwork - According to a study done by Oxford Economics and SuccessFactors, 42% of executives say their companies’ growth plans are slowed by the lack of access to the right leadership. In order to solve this, companies should understand the importance of developing the next generation of leaders. Kerry Brown, VP of User Adoption at SAP shared why we're at this infection point and what companies can do about it.

Published in: Technology

Leadership in 2025: A Snapshot into Future Organizational and Management Structures

  1. 1. Leadership in 2025 A snapshot into future organizational and management structures Public © 2015 SAP SE or an SAP affiliate company. All rights reserved. 1
  2. 2. A convergence of forces is pushing businesses to change the way they work Let’s consider each force and its impact on the future of work. Technological change Accelerating globalization Shifting demographics Focus on employee engagement Driving the need to radically simplify the business © 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
  3. 3. 3© 2014 SAP SE or an SAP affiliate company. All rights reserved. Technological change The expanding reach of computing, mobile, cloud, and connected technologies is rapidly changing the way we live and work. Average time Americans spend daily on social media1 40 minutes Projected number of smartphones used worldwide in 20143 1.75 billion Number of active Facebook users2 1.39 billion Number of worldwide mobile devices that are smart devices4 54% in 2018 88% in 2013 96% in 2018 Mobile data traffic originating from smart devices5 1. “The Average American Spends 40 Minutes a Day on Facebook,” NBC News, July 24, 2014. 2. Facebook Newsroom, December 31, 2014. 3. “Worldwide Mobile Phone Users: H1 2014 Forecast and Comparative Estimates,” eMarketer, January 2014. 4. “Cisco VNI Global Mobile Data Forecast Update (2013 – 2018),” Cisco, February 5, 2014. 5. Ibid. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 3 21% in 2013
  4. 4. 4© 2014 SAP SE or an SAP affiliate company. All rights reserved. Accelerating globalization Work is no longer local – it extends across countries, time zones, and cultures. 6. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013. 7. Pedro Olinto, et. al., “The State of the Poor: Where Are The Poor, Where Is Extreme Poverty Harder to End, and What Is the Current Profile of the World’s Poor?,” The World Bank, October 2013. Size of Asia’s middle class by 2020, triple that of 20096 1.7billion © 2015 SAP SE or an SAP affiliate company. All rights reserved. 4 in 19907 43.1%20.6% Global rate of extreme poverty in 2013 down from
  5. 5. 5© 2014 SAP SE or an SAP affiliate company. All rights reserved. Shifting demographics The makeup of the workforce is changing in a variety of ways – and these shifts impact best practices for organizations. 8. “Gen Y Women in the Workplace,” BPW Foundation. 9. Christopher J. Dwyer, “The Future of Contingent Workforce Management Webinar Recap,” DCR Workforce Blog, January 5, 2015. 10. Linda Yueh, “The Rise of the Global Middle Class,” BBC News, June 18, 2013. Millennials will comprise 75% of the global workforce by 20258 of the world’s workforce will be contingent workers by the end of 20179 45% Nearly people are entering the middle class for the first time.10 5 billion Approximately © 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
  6. 6. 6© 2014 SAP SE or an SAP affiliate company. All rights reserved. 40% executives worry that their organizations will not keep pace with technology change and lose their competitive edge. McKinsey study, 2013 ” “ 10.2% or US$237 billion* of profits is lost by top 200 global companies due to hidden costs of complexity. *Global Simplicity Index, 2013
  7. 7. 7© 2014 SAP SE or an SAP affiliate company. All rights reserved. Forrester IT Survey, 2013 Free up budgets to enable simplification and innovation. 72% Keep the lights on Drive business innovation Innovation Customer experience Employee engagement Resource optimization Networked economy Drive business innovation Keep the lights on Complexity Decision making Business-process technology 28%
  8. 8. 8© 2014 SAP SE or an SAP affiliate company. All rights reserved. Run Simple Our operating principle
  9. 9. © 2014 SAP SE or an SAP affiliate company. All rights reserved. 9Public How can companies meet these challenges and prepare themselves for the future of work? It’s time to radically simplify the business. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
  10. 10. Global 27-country twin surveys 5,400 People; 2,700 executives and 2,700 employees conducted by Oxford Economics Oxford Economics, The 2020 Workforce, 2014 © 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
  11. 11. 11© 2014 SAP SE or an SAP affiliate company. All rights reserved. Simplifying the Future of Work Survey To understand the challenge of complexity and leadership’s role, SAP and Knowledge@Wharton polled 692 leaders and team members worldwide about their views on business simplification today — and in the future. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
  12. 12. 12© 2014 SAP SE or an SAP affiliate company. All rights reserved. Employee loyalty Adequate leadership Adequate technology Skilled talent 34% “good” progress What’s missing to meet workforce goals © 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
  13. 13. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 13 The leadership cliff
  14. 14. 14© 2014 SAP SE or an SAP affiliate company. All rights reserved. Know how to inspire employees 51% Are able to drive real change 44% Gaps in leadership capabilities limit growth Have the skills to manage talent52% © 2015 SAP SE or an SAP affiliate company. All rights reserved. Can lead a diverse workforce 34% 14 Are prepared to lead a global workforce47% 14
  15. 15. 15© 2014 SAP SE or an SAP affiliate company. All rights reserved. Leaders must be able to lead simplification 67% Simplification will be strategically important in the next 3 years © 2015 SAP SE or an SAP affiliate company. All rights reserved. 17% of employees say simplification efforts are effective today 15 Leaders are unprepared and need access to more effective talent management & performance tools
  16. 16. © 2015 SAP SE or an SAP affiliate company. All rights reserved. 16 The development mandate
  17. 17. Employees need and want more 50% 34% The skills they have now will be what’s needed in 3 years Their company is able to give them the training they need © 2015 SAP SE or an SAP affiliate company. All rights reserved. 17
  18. 18. 18© 2014 SAP SE or an SAP affiliate company. All rights reserved. 18 51% We are more merit-driven than tenure-driven 43% When a senior person leaves we tend to fill the role from within the organization 37% Long-term loyalty and retention is an important part of our talent strategy 31% We plan for succession and continuity in key roles © 2015 SAP SE or an SAP affiliate company. All rights reserved. 18 Organizations struggle to develop a learning culture
  19. 19. 19© 2014 SAP SE or an SAP affiliate company. All rights reserved.© 2015 SAP SE or an SAP affiliate company. All rights reserved. 45% of respondents believe leaders will have access to all information through self-service tools in the next three years14 17% of leaders access information through self- service tools to support quicker decision making today14 Create a learning culture that supports simplification
  20. 20. 20© 2014 SAP SE or an SAP affiliate company. All rights reserved. But how do you build a learning culture? Traditional Formal Learning Social Informal Learning © 2015 SAP SE or an SAP affiliate company. All rights reserved. 20
  21. 21. 21© 2014 SAP SE or an SAP affiliate company. All rights reserved. Learning trends… Me Crowdsourced Accelerated Available EnhancedPersonalized Accredited Open Social © 2015 SAP SE or an SAP affiliate company. All rights reserved. 21
  22. 22. 22© 2014 SAP SE or an SAP affiliate company. All rights reserved. Companies that are most adept at managing uncertainty & volatility develop leaders and future leaders at all levels #FutureofWork Accenture, 2015 © 2015 SAP SE or an SAP affiliate company. All rights reserved. 22
  23. 23. 23© 2014 SAP SE or an SAP affiliate company. All rights reserved. 23© 2015 SAP SE or an SAP affiliate company. All rights reserved. 23 The Future of Work Is Simple Simplification Engagement and Leadership
  24. 24. 24© 2014 SAP SE or an SAP affiliate company. All rights reserved. 24© 2015 SAP SE or an SAP affiliate company. All rights reserved. 24 The Future of Work Is Simple Simplification Engagement and Leadership
  25. 25. 25© 2014 SAP SE or an SAP affiliate company. All rights reserved. 25© 2015 SAP SE or an SAP affiliate company. All rights reserved. 25 The Future of Work Is Simple Simplification Engagement and Leadership
  26. 26. 26© 2014 SAP SE or an SAP affiliate company. All rights reserved. Assess how the organizational structure and talent ecosystem reflect your simplification goals Organizational model: • Do structures motivate complexity? • Are there heavily matrixed designs? • Are there redundant organizations? • Do processes cross boundaries? Key questions Talent ecosystem: • Are only employees focused on simplification? • Are there simplification goals and metrics for contingent workers? • Are outsourcing partners included in simplification initiatives? © 2015 SAP SE or an SAP affiliate company. All rights reserved. 26
  27. 27. 27© 2014 SAP SE or an SAP affiliate company. All rights reserved. What you think your organizational structure looks like
  28. 28. 28© 2014 SAP SE or an SAP affiliate company. All rights reserved.© 2015 SAP SE or an SAP affiliate company. All rights reserved. 28 What your organizational structure actually looks like
  29. 29. 29© 2014 SAP SE or an SAP affiliate company. All rights reserved. managing change = expectations & accountability How do you change your organization?
  30. 30. 30© 2014 SAP SE or an SAP affiliate company. All rights reserved. Managing Change Requires all levels of involvement Employees Managers Senior Leaders HR © 2015 SAP SE or an SAP affiliate company. All rights reserved.
  31. 31. 31© 2014 SAP SE or an SAP affiliate company. All rights reserved. In summary • Future of Work will be different • Leaders need to navigate to simplicity • We must build learning cultures • Roles, norms and organizational structures are evolving © 2015 SAP SE or an SAP affiliate company. All rights reserved. 31
  32. 32. 32© 2014 SAP SE or an SAP affiliate company. All rights reserved. In case you’re interested in more… As well as SAP social ambassador Wilson Zhu’s event recap blog with a video of Kerry’s session, Leadership in 2025
  33. 33. © 2014 SAP SE or an SAP affiliate company. All rights reserved. Thank you Kerry Brown VP User Adoption @KerryNBrown www.linkedin.com/in/kerrynbrown

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