PMINJ Chapter

September 17th Monthly Program 2015

Digital and impact on Corporate Culture

CEO’s view of Digital

Digital Impact on the employee, career management and job

search

Frank Wander, People Productive

Raghu Rao, Vistage

Frank Kovacs

Agenda

1. Speaker Introductions

i. Frank Kovacs

ii. Frank Wander

iii. Raghu Rao

2. Digital and impact on Corporate Culture – Frank

Wander

3. CEO’s view of Digital – Raghu Rao

4. Digital Impact on the employee, career management

and job search – Frank Kovacs

5. Q&A

DIGITAL

The Digital Enterprise will not about Technology

- at least for the Winners.

Agenda

• The Road Less Traveled

• Inflection Points

• The Competitive Environment

• Your Future - What You Need to Do Now

• About PeopleProductive

• Questions

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The Past

The Road Less Traveled

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The Peter Drucker Challenge

“The most important, and indeed the truly unique, contribution of management in the 20th century was

the fifty-fold increase in the productivity of the MANUAL WORKER in manufacturing.”

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The Peter Drucker Challenge

“The most important contribution management

needs to make in the 21st Century is similarly to

increase the productivity of KNOWLEDGE WORK and

the KNOWLEDGE WORKER.”

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The Past

Inflection Points

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Two Inflection Points

April 7, 1964

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October 23,2008

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IBM Mainframe

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System 360 - 1964

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The Technology Tide Came In

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The Cloud

October 23, 2008

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Technology: From Barrier to On-ramp

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Question?

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Should you be inspired, or should you be

very worried?

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The Present

Inflection Points

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Inflection Point?

The #1 Global CEO Challenge - 2015

The effective use of human capital.

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Source: The Conference Board

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Inflection Point?

Culture

Word of the Year

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Source: Merriam Webster

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Inflection Point?

The Disengagement Crisis

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Inflection Point?

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Inflection Point?

Strategic Role of HR

“… at the vast majority of companies, you find CEO’s

who are distanced from and often dissatisfied with

their chief human resources officers (CHRO’s) and the

HR function in general.”

Harvard Business Review, July-August 2015

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Inflection Point?

Human Capital Management (HCM) 2.0

The strategic use of human capital.

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Sometimes It Comes Down to Talent

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The Present

The Competitive Environment

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The Competitive Environment

Does technology create competitive

advantage?

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The Competitive Environment

Ubered?

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The Competitive Environment

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The Competitive Environment

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Cost

$

$$$$ Mainframe

(Mainframe Data Center)

Client Server

(Distributed Data Center)

Hosted/ASP

(No Data Center) Everything as a Service

(By the Seat)

Decreasing Barrier to Entry 09/17/2015

The Competitive Environment

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The Competitive Environment

“Talentism is the new capitalism.”

Dr. Klaus Schwab, Founder of the World Economic

Forum

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The Competitive Environment

Companies must get the talent side of

business moving as fast as the technology is

changing.

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Your Future

Tools You Need To Use Now

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The Productivity Opportunity

Most leaders say they are tapping less than

50% of the productivity potential of their

workforce.*

PeopleProductive, 2014

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Human Needs

To unlock the full potential of the workforce,

leaders must meet the emotional needs of the

workers.

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Gallup Fact: Employees with a best friend at work were:

• 43% more likely to report having received praise or

recognition for their work in the last seven days.

• 37% more likely to report that someone at work

encourages their development.

• 35% more likely to report coworker commitment to

quality.

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Build Relationships

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Create Meaning

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The Power of Meaning – Host Country Performance

Year(s) % Increase in Medals

1956 – 2008 32%

2012* 38%

* Great Britain – Most successful Olympics since 1908

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Be Vulnerable

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Be Vulnerable and Authentic

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Shared Culture Across Walls And Silos

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Build Intentional Culture

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Fact: Jack Welch spent an hour a day in what he called “looking out of the window time”. When he was in

charge of Microsoft, Bill Gates took two “think weeks” a year when he would lock himself in an isolated

cottage.

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Create Think Time

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Fact: Chances of employees being engaged at work is just 1 in 12 when they do not trust the company’s leaders –

Rises to 1 in 2 if they do.

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Create Strategic Trust

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What Is Your Vibe?

Be a source of positive energy.

Mood is Contagious

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Caring is Highly Productive

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Caring: Something Bothering You?

Show interest in coworkers.

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Empathy Builds Connections

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Empathy: I feel your pain.

Show you understand coworkers are suffering.

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Compassion: Taking Action

How can I help you?

Let me …

Compassion Builds Connections

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Forbes: October, 2012

LinkedIn CEO Jeff Weiner's Key To Good Business: Managing Compassionately

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Compassion Builds Connections

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Fact: Interruptions consume 28% of a

knowledge worker’s day.

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Interruptions

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The Hidden Benefits of Keeping Teams

Intact

Robert Huckman, Harvard Business

School

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Intact Teams

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Fact: Across 1004 development projects

and 11,376 employees, a 50% increase in

team familiarity produced a 30%

decrease in budget deviations, and 19%

fewer defects.

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Intact Teams

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Be Inspired

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What You Need To Do Now

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Final Thought

About PeopleProductive

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Our Solution

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Our Solution

Talent-OS™ is an on-demand software solution that

gives organizations the ability to instrument the

human side of business – just like they did for key

business processes, finance and technology.

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Our Solution

Talent-OS™ continually gathers intelligence data so

that organizations can assess, manage, monitor and

enhance their culture and boost workforce

productivity to create higher returns on human

capital.

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Our Solution

Leaders Can See and Manage the Velocity of Work

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Who We Are

We enable organizations to get the people side of

their business moving faster than the rapidly

changing business environment.

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The ROI on Talent is Great

Don’t Double Your Staff.

Double the Productivity of Your Existing Workforce.

You can find more information about us at:

www.PeopleProductive.com

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dBusiness Leadership: Listen, Share, Innovate

RAGHU RAO CHAIR, VISTAGE PRINCETON

Disruptive Changes in Business

Environment:

Speed, Volume, Complexity

• SMAC Stack – Social Media, Mobile, Analytics (Big Data) and Cloud

• Technology Convergence: Smart Machines, IoT, 3-D Printing, Wearables, Robotics, Gamification, Energy Storage, Cyber Security

• Diversity: Globalization, Virtual Workforce, Millennials, Longer Lifespan

• Accelerated Technology Adoption Lifecycle (12 - 18 months)

Since 2000, more than half of the Fortune 500 are gone

• Multiple Technology Drivers: Digital, Bio, Nano, Neuro, Green

• Timeline Graphic: http://toptrends.nowandnext.com/wp-content/uploads/2014/06/EmergingScienceTech-5.pdf

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Digitally Attributable Revenue

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Timeline of Emerging Science &

Technology

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Hype Cycle for Emerging Tech [Gartner,

2014]

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Legacy to dBusiness Transformation

Approach

• Innovate: Experiment and Pilot

• Listen and Learn: Reverse Mentoring, Diverse Groups,

Advisory Boards

• Develop Digital Strategy: Communicate Inbound and

Outbound

• Incremental Stages: innovate, migrate, transform:

– Marketing/Sales to Social Media,

– IT Infrastructure to Cloud/Mobile,

– Incorporate Design Thinking into Product Management,

– Transform Company Culture to Tribal/Network

– Focus on Customer Experience Leveraging Analytics

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dBusiness Transformation

Roadmap

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Customer Experience

• Address all interaction points with the business: – before, during, and after becoming a customer

– Provide for customer feedback

– Build a reputation and culture of excellence

• Deliver One-of-a-kind, Custom-Tailored Experience – Customer Journey Mapping

• Blue Ocean Strategy: – Venture into unexplored realms

– No competition

– Driven by customer needs

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Smart Machines

• Cognitive Computing Systems Operating

With Minimal or No Human Intervention

• Examples: Robots, Drones, Driverless

Cars, Self-configuring Homes

• Leverage Technologies such as:

– Artificial Intelligence

– Big Data and Predictive Analytics

– Wearables and Sensors

– Virtual Reality

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dBusiness Leadership Mantra

Listen, Share, Innovate

• Listen

Engage Customers, Employees, Advisors; Embrace

Diversity

• Share

Leverage Social Media, Communicate at Every Level,

Deliver Value

• Innovate

Embrace Technology, Customer Experience, Explore

The illiterate of the 21st century will not be those

who cannot read and write, but those who cannot

learn, unlearn, and relearn cannot learn, unlearn,

and relearn. – Alvin Toffler

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Reference Material

Listen, Share, Innovate

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Contact Information

Raghu Rao

Chair, Vistage International

Princeton, NJ

Raghu.Rao@VistageChair.com, 609-365-1801

http://LinkedIn.com/in/raghusrao

Twitter: raoraghus

Listen, Share, Innovate

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Call To Action!!!

Position Yourself Now

For the

Reinvention of Business

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Disclaimer • What we are about to discuss isn’t good news.

• It basically means what we’ve been though since 9/11 with unemployment and related tough economy will continue and at levels more intense and difficult then we ever saw before.

• This is not meant to upset you.

• Just the opposite consider yourself among the fortunate few that you took the time today to come hear this message this morning and can now understand why the job you had for last 5, 10 or 15 years doesn’t seem to exist anymore and if it does is probably just in process of phasing out forever if you can still find it some place else.

• What you do with this information when you leave the room this morning is what will define your fate but at least you wont be chasing that same job only to find it – crash land - and find your self back in search after the next firm cuts that similar job in a relatively short time.

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What is 3 dimensional Job Search • Dimension 1 – Beat the Process - 7 step process .

• Dimension 2- Leverage Technology Social Networking – Yahoo Groups, LinkedIn, Facebook, Twitter, Google+.

• 3rd Dimension – Business as we know it changes, advent of “Digital”. Many new positions, few legacy positions remain, even if legacy position remains new responsibilities/more hands-on, flattened organizations, individuals must find their new profession, good chance there will be skill gaps to fill/address, job seekers must reinvent themselves and pre2000 firms disappearing/going our of business – new post2005 firms hiring in parallel you must regrow your network.

• Keep Networking Forever – gone are the days of retiring from a company - After Landing – REMEMBER - :Landing is Temporary Job Search is Permanent!

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For years we said…

• Job Search is the hardest job you will ever have in your life.

• It’s just got A LOT Harder!

• Imagine the impact of the way business is done changing – after working 10, 20, 30 years you now need to look at what the NEW jobs are and determine where you best fit.

• Jobs titles changed, responsibilities changed and position requirements are now more hands on with required skills that you probably don’t have unless you focused on keeping your skills current.

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Job Search just got EXPONENTIALLY

HARDER Advent of “Digital” and countless changes/implications:

• Flattened organizations.

• Individuals must “find” their new “profession”, good chance there will be skill gaps to fill/address when they do.

• Job seekers must reinvent themselves.

• Pre2000 firms disappearing/going out of business – new post2005 firms hiring in parallel you must regrow network.

• Oh and remember those Millennial – hope you were nice to them – good chance you will be interviewed by them and if your LUCKY reporting to one of them – remember in interview 60%+ is cultural fit how will you relate and endear them to you.

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End of Business as we know it

There is a chasm forming between traditional

companies and those formed 2005 and later – Either started on or fully migrated to Cloud.

– Embracing what traditional firms refer to as disruptive technologies: Social, Cybersecurity, BI/Analytics/Big Data, Cloud, and Mobile/BYOD, Internet of Things (IoT), Robotics & Gamification.

– Flattening of organizational hierarchies – check social.

– Small amount of Executive Management everyone else sole contributor or Manager but all hands on very little at C-Suite. Cloud first step BPaaS new normal.

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What is Digital? • Firms finally know what Cloud is and have decided IT is

a commodity for most and have moved these operations to various Cloud option solutions and have gained reduced costs, agility, better time to market – adoption about 40% this churn will continue – more effects from it will start to become evident.

• Now that they are gaining a comfort level with Cloud and related benefits they want more.

• Cloud 1.0 was primarily a “lift & shift” and perpetuated what we call monolithic cloud.

• Companies want more savings and willing to look beyond IT at other business functions that are commodities.

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What is Digital? • Enter Cloud 2.0 where now we expand vertically and

break up monolithic cloud into modular apps that fit together like the ones you see on iTunes and are available in your Corporate Apps Store

• Commoditizing Corporate IT went so well why stop there take business functions and go to a BPO who will do Business Process as a Service (BPaaS) for a fraction of cost that these functions are being done inside companies – the more functionality in office goes down, the higher the percentage of real estate cost becomes to total costs and bigger target your job becomes for BPaaS – Look at Bank Branches we have ATM’s, Loan and Mortgages and big BPaaS services what’s left that a bank branch does – most functions are mobile enabled – like check deposit - how long before the branches are seen as too costly to keep?

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What is Digital? • So IT is gone certain Business Processes leave what’s

next?

• Some things like mobile, social, cybersecurity, gamification, Internet of Things, and how to integrate them all are growing at record pace

• Just like ITO or IT Help Desk and automated Run Books BPaaS can be optimized to great extent with Knowledge management systems and robotics many business functions can now be handled by robots

• All of this gives those businesses “savvy” enough to adopt these new technologies significant savings and efficiencies and huge competitive advantage against their competition via reducing and eliminating your job and reinvesting in the disruptive technologies

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End of Business As We Know It!

• Traditional Firms

– Somewhere in

continuum of adopting

cloud -$$$

– Learning Social Media

– Too many levels of

organization - $$$

– Informal network much

different from org chart

– Tech viewed Disruptive

• Post 2005 Firms

– Directly or fully migrated

to cloud - $$$

– Leveraging social media

to drive product and

service direction - $$$

– Flattened organization

chart - $$$

– Embrace Technology - $$

Big Changes Yet One thing in common 76

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Neither business model’s goal is fully

optimizing Human Capital

• Agile

• Innovative

• Client Satisfaction Focused

• Unforeseen volumes and rates of change

• Unprecedented levels of efficiency and

effectiveness needed

• Ability to perform creative destruction at a

minimum of every 5 years to stay market relevant

These in aggregate aren’t enough

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We have all heard of CMMI Level 5 • During the last 20 years we have all heard of the focus on

Software Development productivity. – it lead outsourcing 1.0

• This is what outsourcing firms used to highlight their level of software development proficiency and lure companies to outsource their software development now seen as a commodity for competitive advantage – reduce costs, improve quality

• Today - The new way of doing business requires firms to seek that level of proficiency from their Human Capital to optimize the needed benefits

• Rise of the Knowledge Worker - those functions critical to the business that weren’t outsourced those that define the products and services that give the firm their competitive advantage. If qualified this is the sweet spot to move to with employers and grow your competencies

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What must businesses do?

• Businesses need to understand that post cloud on average 60% of their costs are Human Capital (Pre BPaaS)

• Human Capital is the necessary means by which to innovate and raise competitive ability of their product and/or services

• Advantage - For the first time ever there is now a formal methodology for assessing, addressing and raising your level of Human Capital Maturity

• There will be a war for qualified talent and unless you realize the benefits in the environment that results you’ll fail in your ability to attract needed qualified knowledge workers

• SKILLS MOST CRITICALLY NEEDED INNOVATION & CREATIVITY as well as industry specific knowledge

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Look at Jobs determine those that will

become Knowledge Worker positions

• You don’t send work out of your firm

• Those the employer will need to adopt the Human Capital Methodology and work with your people to unlock the various capabilities in each and every member of the organization and raise the level of Human Capital proficiency so you can attain the full benefits of each member of your organization

• How can you be a winner? You want to position yourself as a knowledge worker or become part of BPaaS solution provider leading their business

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What is the impact on workers?

• Must shed former paradigms of Business and Employment

• Must look to needs of new Business and start acquiring those skills and competencies needed to be relevant and qualified

• Determine from Employers perspective what you need to do to prove you are qualified and do it

• If you fail to do so and take advantage of lead time available you are in for a prolonged job search period once downsized

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Evidence transition already underway

• Look at a firms organization chart – this is formal way work is to be done in organization

• Now take active directory, messaging system like MSFT Exchange or Google mail, and instant messaging history – plot usage and connections this informal network is how informal network and the actual way work’s done

• Overlay the two the disparities are those that are making the change and those disconnected are those being left behind

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Additional Evidence

• Go to indeed.com (traditional firms) and then StartUpHire.com where new firms post jobs (post 2005) and compare:

– Job Levels – if you could compare indeed.com over time you will see significant reduction in levels like SVP, VP, Managing Dir, Dir, Sr. Dir then go to StartUpHire and you’ll see few VPs all others are Manager or Sole Contributor

– Job Description/Requirements – then go further and read description and requirements and see how more hands on one must be in the post 2005 positions

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Wake Up Call

• Do you meet the requirements of the

positions listed in StartUpHire.com

• Look to your network – how many people do

you know across the firms posting jobs under

StartUpHire.com that you can network with to

help you land jobs if you are qualified there –

remember networking is a needed component

else your just a number

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Start Fresh by Accepting

• The job title you held for 10, 20 , and even 30 years and beyond may be gone forever

• You are going to have to examine the new jobs available and with honestly based on competency decide where you fit in and are passionate about not by historical means

• This may also mean a change financially

• Career Gap Analysis, Roadmap, and project plan to get you to where you need to be QUICKLY!

• In parallel identifying those target companies that need your skill set's – start building a network across those firms now

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Good News

• With Digital comes more Revenue and hence jobs

• Employers can’t find enough qualified candidates

• You have to figure out what you can do, what you are passionate about, what is the market for it, what gap exists with where you are now and what is being qualified in eyes of employer, build a roadmap to address that gap, start enacting your roadmap today, get EMPLOYABLE asap

• While your doing all that hard work in previous bullet expand your network to firms where these jobs are with the winners of Digital adoption.

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Whether employed or not employed

Start Reinventing Yourself – TODAY!

• Perform “Market analysis” and figure out where you are going to fit in the new business environment

• Create Gap Analysis of where you are now and where you need to be

• Generate a Career Roadmap and project plan to get you to where you need to be QUICKLY!

• In parallel identifying those target companies that need your skill set – start building a network across those firms now

• If you do these consider yourself 90% ahead of everyone else that hasn’t heard this message

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Call to Action Recap • Business is changing faster then ever

• The needed competencies and tools utilized are changing as well

• Figure out how this affects you, determine what changes you need to accomplish, get together a roadmap and get there as quickly as you can

• Build a network in your NEW targeted company listings as strong as possible as quickly as possible in parallel

• Start today and don’t slow down for making yourself as strong as possible for tomorrow

• Remember ALISON.COM – FREE SELF PACED TRAINING that you can use to close your gaps – but remember still have to be considered qualified from employer perspective

• Commit to Attending TBCNJ regularly, bring others in transition – the stronger each of us makes our network the stronger we ALL will be – Why Do It Alone???

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