We are in the midst of the largest generational shift in human history. At the same time global trends start to disrupt talent management and culture in organisations. This will have a tremendous impact on how organisations will look like in the future.

1. The Leaders’ Perspective
Talent and culture in the idea economy
Ben Ponne
BDE Leadership, Innovation & Transformation
July 26, 2016

2. Global trends impacting
talent and culture

3. We are in the largest generational shift in human history
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50%of the workforce
will be Gen-Y (Millennials)
in 2020
More than 40,000
baby boomers leave the
workforce every day
Size of Gen-X is less than 50%
of baby boomers. Gen-Y and older
baby boomers need to backfill

4. New workforce  new culture  new engagement
Culture
What we believe, what we value, and how we behave over here
Engagement
The way people feel about what we believe, what we value, and how we behave over here
Engagement = right fit between workforce and culture
– Only 13% of employees worldwide are engaged at work (Gallup, 142-country study)
– Culture and engagement is a major concern for the C-suite
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5. Rising
automation
Constant
collaboration
Virtual
offices
App-assisted
engagement
The digital work environment will be everywhere
Talent expect personal, contextual, and secure experiences
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6. Valuation of companies
Shift from tangible to intangible assets
17%
32%
68%
80%
84%
83% 68% 32% 20% 16%
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2015
Intangible Assets Tangible Assets
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Source: Ocean Tomo, LLCJuly 2016: Nintendo value surges $7B on new Pokémon app
The value is in the idea not in the app!

7. Accelerated Innovation Cycles
The speed of business renewal accelerates year on year
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Differentiated
Core Activities
Non-Differentiated Context Activities
Competitive Advantage
Period (CAP)
Competitive Advantage Period (CAP) vs nearest Competitor (GAP) is source of profitable
revenue growth.
Time
Innovations required
to maintain GAP
Innovation creates
competitive advantage
CAP CAP CAP CAP
Quicker innovations required
to maintain GAP
Advantage
dissipates
over time
Source: INSEAD

8. Re-design of organisations
• Efficiency,
Economies of Scale
But
• Slow response to
change
• Weak horizontal
coordination
• Low innovation
• Customer
Satisfaction
But
• Eliminates
economies of scale
• Poor coordination
across divisions
• Reduces
competence
• Flexible resourcing
But
• Role conflict
• Complex and difficult
to implement
• Requires strong
leadership
• Results focused
• Minimal Process
• Loosely coupled,
highly aligned
• Hyper connected
• Super temps
• Highly empowered
• Requires
superior talent
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Functional Design Divisional Design Matrix Design Network of Teams

9. “In the new economy, competition is global, ideas
are developed quickly and cheaply, and people
are willing to change jobs often. In that kind of
environment … all that matters is talent …
superior talent is today’s prime source of
competitive advantage”
Source: The War for Talent, McKinsey
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10. How organisations
adapt

11. Cultural change is essential
Requires strong collaborative leadership
“There is nothing more difficult and
dangerous, or more doubtful of success,
than an attempt to introduce a new order of
things in any state. For the innovator has
for enemies all those who derived
advantages from the old order of things
while those who expect to be benefited by
the new institutions will be but lukewarm
defenders…”
Machiavelli, The Prince
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12. How Leaders
do it
Engagement
Intense meaningful
commitment
Organisational
Design
Network of highly
empowered teams
BUSINESS CULTURE
Talent
Stars in every position
Workplace
Great colleagues
Freedom
Context versus
Control
Cultural Fit
Non negotiable
Innovation and Creativity
Continuous renewal
Minimum
viable product & process
Design Thinking
human-centric
empathetic curiosity
Continuous Learning
Just-in-time learning
eco-system

13. Talent
What leaders are looking for
– Those who fit need; unique, scarce, and critical
– Extraordinary role model of culture – “cultural fit”
– Global, cross-cultural, diverse leaders
– Self motivating, Self aware
– Self disciplined, Self improving
– Self reflecting, Attitude
– Technology empowered
– Collaborative
and yes …
– Competent (knowledge, skills, experience)
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SELF

14. Digital Talent Management
Leaders embrace digital technologies to reinvent the workplace
– Integrated HR platform
– Social, Mobility, Cloud & Analytics
– Design thinking
– Employee centred, experience driven design
– Simplify processes to help employees manage
complexity and information overload
– Behavioural economics
– Build culture of collaboration, empowerment, and
innovation
– People analytics
59% of millennials find
employer’s provision of state-
of-the art technology is important
when considering a job

15. Design Thinking
Leaders move from Human “Resource” to Talent “Experience” thinking
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Specification
Unmeasurables
Employee
satisfaction
Inductive
process
Function based
Qualitative
principles
Architecting
Guidelines
Complexity
System Contract
Engineering
Quantifiable
costs
Measurables
Quantitative
principles
Analytical
tools
Deductive
process
Form based Specificity
Heuristics
Lessons
learned
Analytic
techniques
Mathematics
certifies makes offers
agrees withusesconstructs
Source: Ben Ponne (MSc Thesis, Nottingham University)
Shift
towards
design
thinking

16. Continuous learning
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– Culture of empowerment and entrepreneurship
– Employee in charge instead of L&D
– Self-directed learning eco-system with focus on
learning how to learn
– Experiential learning
– Learning at the point of need
A strategic tool to attract and retain top talent

17. And what would working for a “new” organisation look like?
Work with the best colleagues
Determine your own working hours
No time sheets
Determine your own leave
No tracking of leave
Top market conform package
No bonus pool
Work from anywhere
No macro management
No expense policy
No ranking against other employees
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18. Or …
Only outstanding colleagues
Results are all that counts
Number of hours unimportant
Work from anywhere
Top of market compensation
Unlimited vacation
No-door policy
No career planning
No “raise pools” each year
No ranking against other employees
Transparency and Trust
Think simple
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19. What this means
for you

20. What you can expect
– You are competing in a highly transparent global talent economy
– You have to become laser sharp with your personal brand
– Collaboration, empowerment and innovation are key
– Contract and part-time work will make up the majority of the workforce
– “Workforce” will be fluid – Uber has more than 3 million drivers … are they
employees?
– Robotics and cognitive technologies will enter the “workforce” and disrupt
the talent market
– A career moving up the ladder will be hard to find. You will be responsible for
your own ladder
– Companies as well as employees will be completely transparent –
Glassdoor / People analytics
– Significant leadership shortage
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21. Improve leadership
Capabilities that help you to be acknowledged as a leader
Raw smarts
– Pure cognitive ability, “IQ”
Technical skills
– Reputable source for facts, information, experience
Analytical & coordination skills
–Integrative and strategic thinker
Interpersonal collaborative skills
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22. Key takeaways

23. Key takeaways
– We are in the midst of the largest generational shift in human history
– New workforce (Gen-X, Gen-Y) have distinctively different expectations of work/life
– Organisations will need to change their culture to remain relevant in the talent market
– Digital technologies and globalisation drive faster innovation cycles
– Valuation of companies moves from tangibles (brick & mortar) to intangibles (ideas, people)
– Think about Nintendo value surging $7B on new Pokémon app
– Leaders and talent management in “new” organisations need to employ a conscious strategy to shape
their corporate culture
– Otherwise Glassdoor and Facebook will do it for them
– New entrepreneurial organisations lead the pack
– The Idea Economy will be an experience battlefield
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24. Thank you
Ben Ponne
Mob: +64 (0)21 616 885 / +64 (0)21 770 885
Email: ben.ponne@hpe.com
Email: ben.ponne@insead.edu
LinkedIn: https://nz.linkedin.com/in/benponne
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