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Scott Klososky | Digital Transformation, Disruption, and High-Beam Leadership: Prospering Your PEO

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Presented by Scott Klososky – Founder, FPOV – Future Point of View

Your PEO is one of the greatest solutions ever created for the small business, but in the midst of disruptors it can be hard to see that from your point of view, and the customer’s. In this ½ day workshop, Scott will walk your organization through a highly interactive exploration of our industry; how-to disrupt your business from within and how to implement key decision making today that will secure your future. You’ll have practical steps to take when you get back to the office.

The PACE Annual Conference focuses on the sales, marketing, and technology trends that affect PEOs and the service providers that support them.

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Scott Klososky | Digital Transformation, Disruption, and High-Beam Leadership: Prospering Your PEO

  1. 1. Scott Klososky Digital Transformation, Disruption & Maturity: Prospering in the PEO Industry
  2. 2. Like it or not, technology has become the jugular vein of the organization   Mike Foster
  3. 3. Digital Transformation 2000 to 2050 A historically significant change in humanity… Using Digital Wearing Digital Implanting Digital The Hive Mind Disconnected The Dark Ages
  4. 4. Connected People Web 2.0 Connected Devices Web 3.0 Connected Data Platforms Web 4.0 Augmented Humanity Web 5.0 Connected Organizations Web 1.0 IoT & M2M Ambient Computing Ambient Intelligence Transhumanism Social Technologies Digital Marketing eCommerce The Transformation of Connection 2000 2010 2020 2028 2045 Year of Traction
  5. 5. Connected People Web 2.0 Connected Devices Web 3.0 Connected Data Platforms Web 4.0 Augmented Humanity Web 5.0 Connected Organizations Web 1.0 IoT & M2M Ambient Computing Ambient Intelligence Transhumanism Social Technologies Digital Marketing eCommerce The Transformation of Connection Cybersecurity Risk Grows Viruses Social Engineering Device Takeover Data Extortion/Corruption Augmentation Extortion/Control 2000 2010 2020 2028 2045 Year of Traction
  6. 6. 01 All actions and processes performed have a component of HUMAN activity and TECHNOLOGY activity. 02 HUMALOGY is the ability to break down the components, and identify the amount each contributes to the overall action performed. 03 This is important to understanding how adding, or subtracting, technology can aid in the efficiency of the action.
  7. 7. HUMAN INVOLVMENT 0 TECHNOLOGY INVOLVMENT H5 H4 H3 H2 H1 T1 T2 T3 T4 T5 HUMALOGY SCALE H5 H2 T2 T50 TODAY Digging a HoleDigging a Hole
  8. 8. BRAINS - the Internet, processing power, workflows, data storage, devices, equipment, software, and computers HEARTS - intuition, discernment, creativity, inspiration, emotions, curiosity, trust, love, joy, peacefulness, forgiving, grace, and mercy Funeral Homes Churches Events, Networking Instinct & Experience Tellers, Loan Officers A Rock Concert Amazon YouTube Digital Marketing AI & Robotics Online Banking Digital Music
  9. 9. We are now shifting from the Information Age to: The Age of Entanglement As technology and humanity continue to converge the repercussions on our future are staggering…
  10. 10. RateofChange Time People & Organizations Change Logarithmically Technology Changes Exponentially Strategy Risk Gap The Transformation Dilemma
  11. 11. RateofChange Time People & Organizations Change Logarithmically Technology Changes Exponentially The High Beam Zone The Transformation Dilemma
  12. 12. What have you learned, and what are your observations about the role that technology is playing in helping you to be successful in the market? DISCUSSION ONE
  13. 13. PRACTICE Not on your radar You first hear of it Clearly a trend Common Practice FuturePast What you are actively working on } Present 1YR 5YR ORGANIZATION & LEADERS REACTION TIME Becomes a practice -1YR-5YR Learning to be High Beam
  14. 14. The Growing Digital Skills gap Hyper Personalization (Individualizing Tech) Relentless Automation Migration of IT from Utility to Weapon The Maturation of Data Services Machine Intelligence Integrated Security The High Beam 2018 List
  15. 15. David Ferrucci, the developer of IBM Watson, was asked if the system can think… He answered, “Watson can think like a submarine can swim” Machine Intelligence
  16. 16. Machine Intelligence Roadmap Step One Step Four Systems have the ability to review data and learn for themselves Self Learning Step Three Systems go through a human led training process in order to refine algorithms Trained Step Five Systems have decision making flexibility with a desire to improve Intelligent Systems are connected to the Internet with the ability to “talk” to other systems Smart Step TwoSystem is hard coded with rules that mimic human thought process Programmed Step Six Systems understand their mission and have ethics to guide them Enlightened
  17. 17. Machine Intelligence Ecosystem Robotics RPA (Robotic Process Automation) Artificial Intelligence Natural Language Processing Recommendation Engines Machine Learning Deep Learning Predictive Analysis Cognitive Computing
  18. 18. The historical importance of humanity combining with machines is not generally understood at the present time. Only when we look back will we truly see that this transformation will alter our lives more than anything to this point… THE FUTURE OF MACHINE INTELLIGENCE
  19. 19. How much impact do you think Machine Intelligence will have on the PEO space? DISCUSSION TWO
  20. 20. PrismHR, Core Providers, & Enterprise Architecture It is critical to understand the strategic implications of the core vendor EA is getting easier to manage, but more complicated to design Core software decisions are at least ten year commitments in most cases Technology is a tool & weapon so invest wisely in what you need most
  21. 21. ROI - Investment Versus Expense An expense is a cost that comes out of profitability and likely does not have long term value. An investment also comes out of profitability but can have far reaching benefits. Do not get these two confused…
  22. 22. disruption #digital maturity halo Scott Klososky
  23. 23. Cycle of Disruption 1. Newcomer Implements better digital tools. 2. Industry ignores newcomer. 3. Client satisfaction grows. 4. Industry bullies or buys newcomer. 5. Industry adapts and improves. 6. Clients reap benefits. PEO’s and the Risk of Disruption Being disrupted, or disrupting others is a choice. If the disruption makes dramatic client or operational improvements and you are too slow to adapt, you will lose market share that will be difficult to ever win back…
  24. 24. Seven Disruptive Catalysts Wider Reach Rapid Scaling Automation Wiser Decisions Quality & Speed Amplified Connections User Capabilities Cognitive Computing RPA/Robotics Social Technologies 3D Printing Data Intelligence Cloud Universal Internet
  25. 25. Disruption Catalyst Strategizing Yes Or No How? Investment$ ROI? Wider Reach Rapid Scaling Automation Wiser Decisions Higher Quality Amplified Connections User Capabilities Can I use digital tools to add:
  26. 26. If you only give people what they already want, someone else will give them what they never dreamed possible. David Ogilvie
  27. 27. The Economy is by Nature Competitive… To prosper you must be smarter, more innovative, use better tools, and move with a faster velocity than your competitors! To do this you need Digital Maturity!
  28. 28. New Clubs and Equipment+ Somewhat Better Golfer=Poor Golfer How to Make a Okay Golfer
  29. 29. How to Make an Excellent Golfer ASSESS their Current Skills + Build a PLAN of Improvement + Reassess and Adjust the Plan 
 as you go + Give them many focused LESSONS + And if they get new clubs, equipment, then make sure 
 they are a good fit for their skills, abilities and level of competence, the end result is… = Practice, Practice, Practice + An Improved Golfer over time
  30. 30. A Digitally Improved Organization =Buy new, expensive, robust software & install it +Take an Organization that is Digitally Immature + The MYTH of achieving Digitally Maturity
  31. 31. To Achieve Digital Maturity Assess Current Digital Maturity + Gap Analysis of Current State v. Desired State + Put these changes into Practice + Build a Plan of Improvement + And if there is new Software make sure it is 
 aligned with Digital Maturity abilities = Engage in focused Training and Learning + Digital Maturity achieved over time Reassess and Adjust Plan as you go +
  32. 32. What Digital Maturity Looks Like "There are always two choices, two paths to take. One is easy. And its only reward is that it's easy."
 -Unknown Highly functioning EA Rapid innovation process A high level of automation Tech augmented relationships More visibility into the Truth Careful management of risks A two-year lead on competitors
  33. 33. What Digital Maturity Looks Like "There are always two choices, two paths to take. One is easy. And its only reward is that it's easy."
 -Unknown Highly functioning EA Rapid innovation process A high level of automation Tech augmented relationships More visibility into the Truth Careful management of risks A two-year lead on competitors
  34. 34. Nine Dimensions of Digital Maturity Each dimension focuses on a critical area of maturity Maturity can be measured and what can be measured can be improved! Leaders have the responsibility for developing digital maturity in order to prosper for a generation
  35. 35. Levels of Digital Maturity LEVEL 1 LEVEL 2 INITIAL EFFORTS DABBLERS STRUCTURE DEVELOPMENT INTRODUCTIONÿ
  36. 36. DMA Industry Minimums - The PEO Space 1. Leadership - Digital Readiness 2. Transformational Design Capabilities 3. Digital Workforce 4. Organizational Risk & Control 5. System of Engagement Effectiveness 6. System of Record Effectiveness 7. Data Assessment 8. Technology Completeness & Leverage 9. Market Competitive Ranking 80 70 80 90 80 85 80 85 2nd in market PEO’s have a high need to process large amounts of employee information that must be done perfectly, and protected well from loss. From a competitive angle, they must have digital methods for connecting with clients in better ways than competitiors, and must automate rapidly in order to keep costs down and improve profitability. All of this puts pressure on the leadership to make wise investments and innovate at a steady pace. Inflection Point -10 -8 -6 -4 -2 0 +2 +4 +6 +8 +10 PEO’s
  37. 37. Let’s Discuss What the Gap in Leadership Digital Maturity Costs Your Organization
  38. 38. Bad decisions made with good intentions, are still bad decisions Jim Collins
  39. 39. Let’s D iscuss W hat the Gap in Your D igital W orkforce Costs Your O rganization
  40. 40. Let’s Discuss What the Gap in Transformational Design Costs Your Organization
  41. 41. Let’s Discuss What the Gap in Systems of Engagement Costs Your Organization
  42. 42. Let’s Discuss What the Gap in Systems of Record Costs Your Organization
  43. 43. Let’s Discuss What the Gap in Technology Completeness and leverage Costs Your Organization
  44. 44. Let’s Discuss What the Gap in Data Maturity Costs Your Organization
  45. 45. Mind the Gap! Let’s Discuss What the Gap in Organizational Risk and Control Costs Your Organization
  46. 46. Let’s Discuss What the Gap in Market Competitiveness Costs Your Organization
  47. 47. Chasing the Technology Halo This is the state of being when an organization has implemented digital tools that customers clearly believe give the organization a competitive advantage Transform ation D isruption
  48. 48. A Technology Halo: Hair Salons Earning the Halo Built the largest customer database in the industry Pioneered mobile application for remote check-in Pioneered intelligent one to one digital marketing First in the industry to manage online reputation Lower IT costs than competitors Using technology to control stylists market The Benefits Industry leader in terms of size The fastest growing in the space Higher level of control over revenue Taking market share from competitors Employee satisfaction Speed to market with new technology innovations
  49. 49. A Technology Halo: Financial Services Earning the Halo Pioneer with online deposits Best mobile app functionality Self serve functionality Data gathering Personalization Aggregated financial services Focused on international delivery The Benefits Customer loyalty and trust Fast growth Low customer turnover Higher revenue per employee Industry reputation Product expansion Happy employees!!
  50. 50. In Search of the Technology Halo
  51. 51. Is it really possible for you to achieve the Technology Halo in your area? DISCUSSION FIVE
  52. 52. PEO PLE ELECTRONICPHYSICAL AN INTEGRATED SECURITY MODEL FAC ILITIES ORGANIZATIONAL ASSETS Hacker Internal Threat 3rd Party Co-conspirator The ability to join and manage as a single unified platform the three pillars of security to mitigate risks
  53. 53. PEO PLE ELECTRONICPHYSICAL AN INTEGRATED SECURITY MODEL FAC ILITIES ORGANIZATIONAL ASSETS CYBER Hacker Internal Threat 3rd Party Co-conspirator The ability to join and manage as a single unified platform the three pillars of security to mitigate risks
  54. 54. PEO PLE PHYSICAL AN INTEGRATED SECURITY MODEL FAC ILITIES ORGANIZATIONAL ASSETS CYBER Hacker Internal Threat 3rd Party Co-conspirator The ability to join and manage as a single unified platform the three pillars of security to mitigate risks
  55. 55. ACCESS CONTROL MONITORING ELECTRONICS ACCOUNTABILITY TESTING TRAINING SECURITY AI’S APPLICATIONS DEVICES The Future Integrated Security Model DIGITAL FIREWALL HUMAN FIREWALL PHYSICAL FIREWALL CONSTANTSTRATEGYEVOLUTION GOVERNANCE(P&P) AUDITS&ASSESSMENTS SECURITYTEAMSKILLS RISKTOLERANCE(ESRM) FOUNDATIONS
  56. 56. What digital footprints will you leave at your organization that will give you a competitive edge? Someone once told me not to bite off more than I can chew. I said I would rather choke on greatness than nibble on mediocrity
  57. 57. If you’re done getting better… Retire. Ken Favizza
  58. 58. NEXT STEPS DOWNLOAD THIS PRESENTATION WWW.FPOV.COM/SK BUILD YOUR RIVER OF INFORMATION THE DOWNLOAD FROM MIT TAKE A FEW DIGITAL TRANSFORMATION COURSES

Presented by Scott Klososky – Founder, FPOV – Future Point of View Your PEO is one of the greatest solutions ever created for the small business, but in the midst of disruptors it can be hard to see that from your point of view, and the customer’s. In this ½ day workshop, Scott will walk your organization through a highly interactive exploration of our industry; how-to disrupt your business from within and how to implement key decision making today that will secure your future. You’ll have practical steps to take when you get back to the office. The PACE Annual Conference focuses on the sales, marketing, and technology trends that affect PEOs and the service providers that support them.

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