Global Business Growth Jeopardized by the Failure of Organizations to Adjust to 21st-Century Workforce
The highly connected and global 21st-century workforce is here and, according to the Deloitte Global Human Capital Trends 2014 report, organizations are not prepared to respond to the challenges it represents. According to the report, the single biggest challenge cited by most (86 percent) respondents is leadership development, followed by retention and engagement (79 percent), and reskilling the HR function (77 percent). Importantly, most respondents indicate that their organizations are not ready to address these challenges.
The 12 trends identified in the Deloitte Global Human Capital Trends 2014 report can be analyzed within three major categories: 1) attracting and engaging, 2) leading and developing, and 3) transforming and reengineering the HR function. Trends highlighted in the report include:
Attract & Engage
Reinventing talent acquisition: Even as the majority of respondents (62 percent) say their organizations rely on social tools for sourcing and advertising positions, when it comes to fully utilizing analytics for recruitment and staffing, more than half (54 percent) indicate that their practices are “weak.”
The overwhelmed employee: Information overload and the always connected 24/7 work environment are overwhelming workers, undermining productivity and contributing to low employee engagement. Sixty-five percent of executives responding to the survey rate the overwhelmed employee phenomenon as being an urgent or important trend, while 44 percent say that they are “not ready” to deal with it.
Engaging the 21st-century employee: Millennials will make up 75 percent of the workforce by 2015, and 66 percent of the respondents report “weak” capabilities when it comes to providing focused leadership programs for Millennials and 58 percent of executives report “weak” capabilities in “providing programs for younger, older and multi-generational workforces,” underscoring the challenges associated with a multi-generational 21st-century workforce.
Shifting from diversity to inclusion: Nearly all respondents say their organizations promote diversity, but most fail to realize the business benefits of a diverse workforce. About one-third (34 percent) of respondents say their organizations are unprepared in this area, while only 20 percent claim to be fully ready.
Lead & Develop
Developing leaders at all levels: Eighty-six percent of respondents in the Deloitte survey rate leadership as “urgent” or “important,” however, only 13 percent say they do an excellent job in developing global leaders.
The quest for workforce capability: While 75 percent of respondents rate “workforce capability” as an “urgent” or “important” challenge, only 15 percent believe they are ready to address it.
Time to replace “rank and yank”: Even as the nature of the work done by a majority of employees has changed dramatically, the way organizations evaluate employees has not. Only eight percent of respondents believe their organization’s performance management process drives high levels of value, while 58 percent say their current performance management process is not an effective use of time.
Corporate learning redefined: More than two-thirds (70 percent) of respondents surveyed see new learning methods, such as free online and mobile learning platforms, as “urgent” or “important,” yet only six percent say they have mastered the content and technology capabilities needed to make online learning accessible and compelling for their employees.
Transform & Reinvent
Delivering on big data: Talent analytics is starting to enable HR departments to make informed talent decisions, predict employee performance, and enable advanced workforce planning. While 78 percent of respondents from large organizations (with 10,000 or more employees) rated HR and talent analytics as “urgent” or “important,” enough to place analytics among the top three most urgent trends, 45 percent of the same respondents rated themselves “not ready” when assessing their readiness in HR analytics—among the lowest readiness rankings for any of the 12 global trends.
Racing to the cloud: Organizations are rapidly moving away from legacy systems to implement a new breed of highly integrated, cloud-based talent and HR systems. More than two-thirds (68 percent) of Deloitte’s respondents say that HR technologies are “urgent” and “important” and yet 56 percent report no definitive plans for their HR systems.
The global and local HR function: Global HR and Talent Management, an integrated global operating model that allows for customizable local implementation, is the second most “urgent” and “important” trend for large organizations around the world (those with 10,000 or more employees), according to the survey.
Reskilling the HR team: More than one-third (34 percent) of the respondents report that their HR and talent programs are just “getting by” or even “underperforming” and twice as many respondents rate HR and talent programs as “underperforming” (10
Customer Experience Expectations and Plans for 2014
Temkin Group has published a data snapshot, Customer Experience Expectations and Plans for 2014. This annual research effort shows a strong surge of CX activity in 2014, which will outpace the effort, spending, and hiring in 2013. Areas gaining momentum in 2014 include text analytics, web and mobile experiences, and CX consultants.
Here are some additional findings from the research:
-- Sixty-three percent of companies expect to spend significantly more or somewhat more on customer experience in 2014 than they did in 2013, which is up from 54% in 2012 and 46% in 2011.
-- 51% of companies plan to increase the staffing of their centralized customer experience team in 2014, while only 3% expect a decrease.
-- When it comes to areas of CX spending, text analytics has the most spending momentum while market research firms have the least.
-- Executive commitment has reached an all-time high as 84% of the respondents agree that their executives are fully committed to their company’s customer experience goals.
-- 78% of companies plan on dedicating significantly more or somewhat more effort to improving their web experience in 2014
-- There is a surge in focus on phone agent experience.
-- Eighty-four percent of companies expect to increase their focus on customer experience measurements and metrics.
-- CX executive dashboards and customer journey mapping are the two CX activities that had the largest increase in focus since last year.
-- While 73% of companies with the most positive CX impact understand the link between customer experience and business results, only 35% of companies with the least positive CX impact claim the same.
One Third of Fortune 100 Organizations Will Face an Information Crisis by 2017
The rise of big data, social networking and mobile interactions, coupled with an accelerating increase in the amount of structured and unstructured information enabled by cloud-based technologies, is forcing organizations to focus on the enterprise information that is most relevant, value-generating and risk-related. Gartner predicts that, by 2017, 33 percent of Fortune 100 organizations will experience an information crisis, due to their inability to effectively value, govern and trust their enterprise information.
The discipline of exploiting the various types of information created and managed inside and outside organizations is called enterprise information management (EIM). It enables people across an organization to share, manage and reuse information that was created in different applications and stored in different databases and repositories. But these abilities do not, by themselves, help an organization. IT leaders must design EIM initiatives so that sharing and reusing information creates business value, and the value created must contribute to enterprise goals.
Ultimately, an EIM program must help an organization identify which information is important to its success — not all information is. It must evaluate a great deal of information and determine what qualifies as enterprise information.
Gartner analysts said that, at present, over three-quarters of individual information management initiatives are isolated from each other within the same organization. This leads to EIM not being realized, sustained or fully exploited.
We recommend that IT leaders identify the crucial business outcomes that need improvement or that are being held by poor information management. Second, they need to determine the business processes and leaders most impacted by those outcomes, and use their findings to start setting priorities for a new EIM program. Finally, they need to adopt a program management approach for EIM, to identify work efforts, resource commitments, stakeholder expectations and metrics for success.
Convergence of Digital Technologies Opens Doors for Enterprise Growth
Mobility is the most important digital technology priority for large enterprises, a new global study by Accenture has found. Reflecting its role as an enabler of other technologies in today’s digital businesses, 43 percent of respondents ranked mobility as a top one or two priority, with 77 percent placing it in the top five. Big data analytics came next with 72 percent putting it in the top five, followed by connected products at 65 percent.
Over one third of enterprises (35 percent) expect the convergence of social, mobile, analytics, cloud and connected products – grouped together as digital technologies – to increase their sales in existing markets, according to this research. Three quarters view the adoption of digital technologies as a strategic investment rather than something to be evaluated on a case by case basis, as 29 percent expect their adoption to generate additional revenue; 28 percent plan to build entirely new digital businesses or services as a result of convergence, and 27 percent expect to penetrate new markets altogether, showing significant promise around the world from mobility and digital technologies, and demonstrating that they are viewed as drivers for better engagement with customers, and the creation of new revenue streams.
However, new revenue streams are not the only financial consideration. One in ten respondents reported over 100 percent return on investment (ROI) for mobility implementations in the last two years, and while a further 26 percent saw returns of between 50 and 100 percent, those with the greatest ROI, the leaders, shared common traits in their approach to new technologies, which are viewed as enabling operational efficiency and long-term growth.
Organizations with over 100 percent ROI, of whom over two thirds claimed to have effectively adopted and deployed mobile technologies compared to 45 percent of others, shared a number of common traits:
A formal, enterprise-wide mobility strategy and measurement: Eleven percent more likely than other respondents to have a formal, enterprise-wide mobility strategy, leaders are ahead of the curve. This year, 43 percent of enterprises on average were found to have developed a formal mobile strategy, a vast improvement on the 23 percent that claimed one in a similar survey carried out by Accenture last year. Processes and metrics also offered insight, as 29 percent of leaders have a formal process for identifying, evaluating and prioritizing ways in which mobility can benefit business, versus only 18 percent of others. For leaders and others, measurement is shown as a low priority, as only 22 percent of the former and 13 percent of the latter have formal metrics in place to measure the effectiveness of mobility initiatives.
An aggressive, ambitious attitude: Over half the leaders (54 percent) reported having aggressively pursued and invested in mobile technologies across their business, considering mobility as a key tenet of business strategy. Compared to just 40 percent of other respondents, this was also reflected by leaders being more likely to report they have effectively adopted and deployed mobile technologies (69 percent versus 42 percent). Leaders were also more likely to believe that all the major digital technologies are a top-five priority, an average eight percent ahead of those companies performing less well in mobility projects.
Securing senior leadership buy-in: Leaders showed a higher likelihood to report that the CEO and the leadership team or board of directors ultimately own their mobile strategy, and that their companies’ senior leadership are highly engaged with the organization’s mobility initiatives. Amongst all respondents, 35 percent had CEOs involved in formulating mobile strategy, with 30 percent of CMOs or equivalent also having a say.
The study found that only 30 percent of respondents believed they had the right talent and skills to properly plan and execute their mobility initiatives, which goes part way to explaining why only 27 percent feel they keep pace with new mobile devices, systems and services, adopting them as necessary to improve their businesses.
IDC: On-Demand Contact Center Services Forecast Shows U.S. Spending Will Grow to $1.6 Billion in 2018
In a newly released study, International Data Corporation (IDC) forecasts that U.S. spending for on-demand (cloud) contact center services will grow at a compound annual growth rate (CAGR) of 17.5% to $1.6 billion in 2018. A majority of companies are using or evaluating a hosted or on-demand solution for their contact center, according to IDC demand-side data.
Key research findings include:
-- While the majority of companies are still using on-premise contact center solutions, most of them are also using or evaluating a hosted or on-demand contact center service. IDC survey data shows that 39% of respondents were using a hosted or on-demand service, 38% were evaluating a hosted or on-demand service, and only 23% were using an on-premise system and not evaluating the hosted or on-demand model.
-- Factors contributing to the growth of hosted and on-demand contact center services include cost reduction and pricing model, cloud-based outsourcing, increased shift in spending, and multi-channel customer care.
-- As customer experience becomes more of a strategic focus for enterprises and the pressures for speed, flexibility, and multi-channel increase, hosted and on-demand contact center services must continue to evolve to keep up to client expectations and support consumers' future channels of preference.