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Understanding the Critical Trends Impacting Organizations in the Next Five Years

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Information about Understanding the Critical Trends Impacting Organizations in the Next...

Published on August 7, 2008

Author: HollyRowland

Source: slideshare.net

Description

The Forum Corporation (www.forum.com) recently conducted analysis of future trend research on the strategic issues that will most impact the global marketplace in the next one to five years. This presentation reveals our findings.
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Understanding the Critical Trends Impacting Organizations in the Next Five Years C C C T A L E N T M A N A G E M E N T

About Forum For more than 35 years, Forum has been a leader in helping global organizations execute their strategies through people—the essential driver of success. We increase market share, grow revenue, improve profitability, and build customer and employee loyalty for our clients. We use learning as the key lever to: Develop leaders at all levels Create performance cultures Refocus organizations on the customer Transform sales forces Promote a climate of innovation

For more than 35 years, Forum has been a leader in helping global organizations execute their strategies through people—the essential driver of success.

We increase market share, grow revenue, improve profitability, and build customer and employee loyalty for our clients.

We use learning as the key lever to:

Develop leaders at all levels

Create performance cultures

Refocus organizations on the customer

Transform sales forces

Promote a climate of innovation

Trends – Think about these questions Which of the trends are most critical for your company? What important trends are missing? What are the implications for HR, Learning and Development, Talent Management functions? For extra credit: Do you have any advice, stories, best practice examples you can share regarding how your company is preparing people for these challenges?

Which of the trends are most critical for your company?

What important trends are missing?

What are the implications for HR, Learning and Development, Talent Management functions?

For extra credit: Do you have any advice, stories, best practice examples you can share regarding how your company is preparing people for these challenges?

Change Creating Agility Navigating Uncertainty Customers Customer Engagement Innovation Corporate Social Responsibility Talent Management Collaboration Rise of Alliances Bridging Differences Web 2.0 C C C Growing People to Drive Growth

Change The New Equilibrium

Change

The New Equilibrium

Creating Agility for Sustainability 91% say importance of agility and speed has increased in the last 5 years 89% say agility, and 86% say speed, are either “extremely” or “very” important to business performance 88% of companies have one or both of these issues on their agenda, with 55% taking steps to increase one or both How will your sources of competitive advantage change over the next 15 years? No. 1 answer: “Responsiveness to changes in the environment” C C C T A L E N T M A N A G E M E N T

91% say importance of agility and speed has increased in the last 5 years

89% say agility, and 86% say speed, are either “extremely” or “very” important to business performance

88% of companies have one or both of these issues on their agenda, with 55% taking steps to increase one or both

How will your sources of competitive advantage change over the next 15 years?

No. 1 answer: “Responsiveness to changes in the environment”

Three Core Dimensions of Adaptability Ambiguity Threshold: how well you deal with ambiguity and uncertainty Internal Monologue: the way you explain annoying, negative, and/or adverse events to yourself Energy Supply: your ability to readily access high levels of physical, mental, and emotional energy You want to… Raise your threshold Reflect the reality of situations Build your energy supply

Ambiguity Threshold: how well you deal with ambiguity and uncertainty

Internal Monologue: the way you explain annoying, negative, and/or adverse events to yourself

Energy Supply: your ability to readily access high levels of physical, mental, and emotional energy

Navigating Uncertainty 92% of executives believe the challenges they face are more complex than they were 5 years ago Risk is #1 “executive issue” for 1st time, according to Accenture: Deterrent to growth, particularly growth into foreign countries Risk is now being seen in broad set of ways Scenario planning has become a critical tool: Has increased in usage as a management tool from 35% in 2000 to 69% in 2006. (Management Tools & Trends, Bain & Co., 2007) C C C T A L E N T M A N A G E M E N T

92% of executives believe the challenges they face are more complex than they were 5 years ago

Risk is #1 “executive issue” for 1st time, according to Accenture:

Deterrent to growth, particularly growth into foreign countries

Risk is now being seen in broad set of ways

Scenario planning has become a critical tool:

Has increased in usage as a management tool from 35% in 2000 to 69% in 2006. (Management Tools & Trends, Bain & Co., 2007)

Three Key Leadership Differentiators Leaders have a higher capacity for sustained high performance in turbulent conditions Leaders know how to accelerate the impact of new strategies, initiatives, and priorities Leaders understand and focus on commitment throughout the process 1 2 3 70% Failure 30% Success C C C T A L E N T M A N A G E M E N T

Leaders have a higher capacity for sustained high performance in turbulent conditions

Leaders know how to accelerate the impact of new strategies, initiatives, and priorities

Leaders understand and focus on commitment throughout the process

Customers

Customers

Growth Significantly Impacted by Customer Engagement % of respondents Source: Economist Intelligence Unit Survey, 2007, in EIU, Beyond Loyalty: Meeting the Challenge of Customer Engagement, March 2007, p. 7. What impact do you believe a strategy of creating deeper customer engagement will have on your company's growth now and in 5 years?* 38 26 23 8 1 2 1 1 4 2 0 10 20 30 40 50 60 33 60 Fairly Strong Impact Fairly Negative Impact Strong Negative Impact Don’t Know Average Impact Strong Positive Impact Now In 5 Years Almost Double the Impact C C C T A L E N T M A N A G E M E N T

What Is Innovation? “ Innovation is the creation of substantial new value for customers and the firm by creatively changing one or more dimensions of the business system.” —“ The 12 Different Ways for Companies to Innovate” C C C T A L E N T M A N A G E M E N T

Innovation and Today’s Business 90% of executives believe that generating organic growth through innovation has become essential for success in their industry 67% plan to increase spending on innovation, even though only 46% are satisfied with the financial returns on their investments in innovation C C C Climate Matters Source: Boston Consulting Group, Innovation, 2005 & 2007 T A L E N T M A N A G E M E N T

90% of executives believe that generating organic growth through innovation has become essential for success in their industry

67% plan to increase spending on innovation, even though only 46% are satisfied with the financial returns on their investments in innovation

Corporate Responsibility % of executives and investors who believe that CSR is a “central” or “important” factor in business and investment decisions: % of the largest 250 companies who issue a separate report for CSR: 74% of executives are driven by economic reasons to report on CSR. C C C T A L E N T M A N A G E M E N T In 2000 In 2005 42% 85% In 2001 In 2006 42% 71%

% of executives and investors who believe that CSR is a “central” or “important” factor in business and investment decisions:

% of the largest 250 companies who issue a separate report for CSR:

74% of executives are driven by economic reasons to report on CSR.

Forum’s Deep Experience in Customer Arena ... and evolving C C C T A L E N T M A N A G E M E N T The Forum Corporation

Collaboration Now more than ever

Collaboration

Now more than ever

“ The future belongs to those who collaborate. Organizations will need to collaborate with thousands of specialised players, from customers and partners to competitors, regional distributors and university researchers.” - Foresight 2020, Economist Intelligence Unit C C C T A L E N T M A N A G E M E N T

“ The future belongs to those who collaborate. Organizations will need to collaborate with thousands of specialised players, from customers and partners to competitors, regional distributors and university researchers.”

- Foresight 2020, Economist Intelligence Unit

Collaboration and Rise of Strategic Alliances Revenue contribution from alliances will rise from 19% to 47% in next 5 years Alliances have a high failure rate – almost 50% Poor relationships – not strategic, financial, legal issues – are the #1 cause of alliance failure Lack of employees with necessary interpersonal skills is the #1 barrier to successful alliances C C C T A L E N T M A N A G E M E N T

Revenue contribution from alliances will rise from 19% to 47% in next 5 years

Alliances have a high failure rate – almost 50%

Poor relationships – not strategic, financial, legal issues – are the #1 cause of alliance failure

Lack of employees with necessary interpersonal skills is the #1 barrier to successful alliances

Bridging Differences: Within National Boundaries and Across National Boundaries Within national boundaries: Increasingly global workforce , even within national boundaries Ireland will require 30,000 skilled immigrants every year for next 10 years to fill labor shortages In 2006, 25.6% of U.S. patents were filed by foreign nationals residing in U.S. (vs. 7.6% in 1998) Across national boundaries : Is it possible to have one global leadership model? 97% Western leaders believe leadership skills globally transferable 70% Asian leaders believe leadership skills globally transferable C C C T A L E N T M A N A G E M E N T

Within national boundaries:

Increasingly global workforce , even within national boundaries

Ireland will require 30,000 skilled immigrants every year for next 10 years to fill labor shortages

In 2006, 25.6% of U.S. patents were filed by foreign nationals residing in U.S. (vs. 7.6% in 1998)

Across national boundaries :

Is it possible to have one global leadership model?

97% Western leaders believe leadership skills globally transferable

70% Asian leaders believe leadership skills globally transferable

Collaboration Gap Source: CCL survey Collaboration is critical success factor to achieving our goals Leaders in our company are skilled collaborators C C C T A L E N T M A N A G E M E N T

Web 2.0: Now, Not Futuristic 79% of organizations view the collaborative aspects of Web 2.0 technology as a way to increase revenue and/or margins 75% plan to either maintain or increase their investments in technology that encourages user collaboration 30% expect Web 2.0 tools to cut costs especially in the area of customer service and support C C C Examples of Web 2.0: T A L E N T M A N A G E M E N T

79% of organizations view the collaborative aspects of Web 2.0 technology as a way to increase revenue and/or margins

75% plan to either maintain or increase their investments in technology that encourages user collaboration

30% expect Web 2.0 tools to cut costs especially in the area of customer service and support

Forum: Pioneering & Continuous R&D in Influence and Collaboration 2010 2007 Influence Management Research Report. 1978 1983 Analyzed 5 years of data from 4,000 managers who had been through the Influence training courses. Revisited and updated Influence Research due to int’l competition and quality movement. 1991 2001 netWorking research completed and course is created. Leading Across Boundaries research completed and course is created. 1995 Teams and Beyond course created based on research into effective teams. Collaboration Skills: Creating Value Through People. 1997 C C C T A L E N T M A N A G E M E N T 1 2 3 7 6 4 5

Growing People to Drive Profitable Growth Talent Management

Growing People to Drive Profitable Growth

Talent Management

On CEO Agenda McKinsey: Top Business Trends Which trend will have most effect on your business over the next five years?

Barriers to Growth in Emerging Markets 60 50 30 20 40 Poor understanding of local customers Lack of available local talent Trade and investment barriers Increasing domestic competition 51% 27% 26% 24% 10 0 C C C T A L E N T M A N A G E M E N T

Trends Driving Talent Shortage Increasingly complex environment More advanced skills; broader perspective; wider range of experience; highly flexible, adaptive approach Increasingly complex organizations Leaders needed across multiple functions and at all levels Traditional leadership practices are not adequate Increasing competition for talent Attracting, developing, retaining talent: a strategic priority Global competition and interdependence Uncertainty, ambiguity Rapid, discontinuous change Advances in technology Flat, lean,and fast Dispersed and diverse Changing structures Matrixed, networked Alliances M&A Changing expectations of employees Companies competing on “knowledge capital” Demographic trends

Increasingly complex environment

More advanced skills; broader perspective; wider range of experience; highly flexible, adaptive approach

Leaders needed across multiple functions and at all levels

Traditional leadership practices are not adequate

Attracting, developing, retaining talent: a strategic priority

Global competition and interdependence

Uncertainty, ambiguity

Rapid, discontinuous change

Advances in technology

Flat, lean,and fast

Dispersed and diverse

Changing structures

Matrixed, networked

Alliances

M&A

Changing expectations of employees

Companies competing on “knowledge capital”

Demographic trends

What is Talent Management? Talent Management focuses on a strategically aligned, integrated effort to attract, engage, deploy, and retain the best people to ensure sustainable growth. Talent Management is the prevailing methodology for developing an organization’s people capacity to meet the evolving needs of the business in a strategic and systemic way.

Talent Management focuses on a strategically aligned, integrated effort to attract, engage, deploy, and retain the best people to ensure sustainable growth.

Talent Management is the prevailing methodology for developing an organization’s people capacity to meet the evolving needs of the business in a strategic and systemic way.

Talent Management Has Evolved Used to Be (early 1990s) Hi-Po or Replacement Focused Perceived as separatist, elitist Disaggregated Tactical HR processes Respond to business strategy Tomorrow (a concept) HR accountable Developing individuals Functional, operational Focus on financial and physical capital US market demand Is Becoming (2005 and beyond) ‘ The Vital Many’ — at all levels Perceived as pervasive, inclusive Integrated, systemic Strategic driver of growth Integral to business strategy formulation Today — it’s here and urgent Line management accountable/Talent Management at strategy table Leveraging collective capabilities Key driver of corporate culture, change, strategy execution Focus on people and knowledge capital (tacit knowledge) Global market demand

Used to Be (early 1990s)

Hi-Po or Replacement Focused

Perceived as separatist, elitist

Disaggregated

Tactical HR processes

Respond to business strategy

Tomorrow (a concept)

HR accountable

Developing individuals

Functional, operational

Focus on financial and physical capital

US market demand

Is Becoming (2005 and beyond)

‘ The Vital Many’ — at all levels

Perceived as pervasive, inclusive

Integrated, systemic

Strategic driver of growth

Integral to business strategy formulation

Today — it’s here and urgent

Line management accountable/Talent Management at strategy table

Leveraging collective capabilities

Key driver of corporate culture, change, strategy execution

Focus on people and knowledge capital (tacit knowledge)

Global market demand

Talent Management Is Increasingly Linked with Change, Culture, Engagement, and Execution “ Organizations are explicitly connecting Talent Management and change. Integrated Talent Management is used to drive change. Integrated Talent Management is the outcome of a major change effort.” “ Talent Management is providing ways to engage all employees and all members of management in the vision and strategy of the organization.” “ Talent Management goes beyond the intellectual and measurable needs of an organization; it touches the hearts and minds … conversations about Talent Management tend to include passion and pride.” Conference Board Talent Management Working Group Report, 2007

“ Organizations are explicitly connecting Talent Management and change.

Integrated Talent Management is used to drive change.

Integrated Talent Management is the outcome of a major change effort.”

“ Talent Management is providing ways to engage all employees and all members of management in the vision and strategy of the organization.”

“ Talent Management goes beyond the intellectual and measurable needs of an organization; it touches the hearts and minds … conversations about Talent Management tend to include passion and pride.”

Conference Board Talent Management Working Group Report, 2007

Leadership Pipeline — Charan, Drotter, Noel, The Leadership Pipeline, 2001 C C C T A L E N T M A N A G E M E N T Passage Six Enterprise Manager Group Manager Passage Four Business Manager Functional Manager Passage Two Manage Manager Manage Others Manage Self Passage Five Passage One Passage Three Passage Six Enterprise Manager Group Manager Passage Four Business Manager Functional Manager Passage Two Manage Manager Manage Others Manage Self Passage Five Passage One Passage Three

Developing Line Leaders to Manage Talent

Change Creating Agility Navigating Uncertainty Customers Customer Engagement Innovation Corporate Social Responsibility Talent Management Collaboration Rise of Alliances Bridging Differences Web 2.0 C C C Growing People to Drive Growth

For more information: Call: 1 800 FORUM 11 (North America) 44 (0)20 7017 7183 (EMEA) +61 2 9955 4877 (Australia) +852 3966 7288 (Hong Kong) +65 6505 2050 (Singapore) Email: [email_address] Visit: www.forum.com http://blogs.informa.com/forum

For more information:

Call: 1 800 FORUM 11 (North America)

44 (0)20 7017 7183 (EMEA)

+61 2 9955 4877 (Australia)

+852 3966 7288 (Hong Kong)

+65 6505 2050 (Singapore)

Email: [email_address]

Visit: www.forum.com

http://blogs.informa.com/forum

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