Key challenges for the resilient organisation Leadership th June 2012

Hay Group’s research on megatrends and organisational implications 01

3 © 2012 Hay Group. All rights reserved What are megatrends? Megatrends are long- term transformational processes on a global scale, with a broad scope and dramatic impact Observable over decades, they can be projected with a high degree of probability at least 15 years into the future Time They affect all regions and stakeholders, including governments, individuals and businesses Reach They fundamentally transform policies, society and the economy Impact

4 © 2012 Hay Group. All rights reserved What did we want to find out? We identified megatrends that will have the greatest impact on organisations and leadership over the next decade, and worked with Z- Punkt, a Cologne–based foresight company, to spell them out. We wanted to know how these megatrends will change working and leadership practices at three different levels: Corporate environment Organisation Individual and team Megatrend

5 © 2012 Hay Group. All rights reserved Megatrend 1: globalisation 2.0 Key characteristics Increasing globalisation Shift in economic balance of power to Asia Rise of a global middle class ‘Re-regionalisation’ and ‘glocalisation’

6 © 2012 Hay Group. All rights reserved Megatrend 2: climate change and environmental impacts Key characteristics Rising CO2 emissions and temperatures Environmental problems and growing industrial and residential waste Greater environmental responsibility and accountability Growing scarcity of strategic resources such as water, minerals, metals and fossil fuels Rising investment in clean technology

7 © 2012 Hay Group. All rights reserved Megatrend 3: individualisation and value pluralism Key characteristics Individualism as a global phenomenon Value pluralisms: work-life balance, self fulfillment and self-expression, values-driven engagement Rise of the creative class From mass to micro markets Decline of loyalty to organisations

8 © 2012 Hay Group. All rights reserved Megatrend 4: digital lifestyle and work Key characteristics New media conquer work and private life Individuals are ‘always on’ Public / private divide gets blurred Changing relationship networks: fewer strong, more loose connections Power shift to digital natives

9 © 2012 Hay Group. All rights reserved Megatrend 5: demographic change Key characteristics World population growing and ageing, but demographic imbalances Aging society demands generational leadership War for talent, brain drain, brain cycle Increasing migration; will drive cultural diversity

Agile organisations, post-heroic, overwhelmed leaders 02

11 © 2012 Hay Group. All rights reserved The employee life cycle evolves, or at any rate changes… Hire Retire “ Any customer can have a car painted any colour that he wants so long as it is black” Henry Ford

12 © 2012 Hay Group. All rights reserved “Where do you want to go today?” Microsoft RecruitAssessSelectionDevelopMove on …x5 x10? The employee life cycle evolves, or at any rate changes…

13 © 2012 Hay Group. All rights reserved “The future is already here – it's just not very evenly distributed” William Gibson Value? Find Next? Onboard Check Webutation The employee life cycle evolves, or at any rate changes…

14 © 2012 Hay Group. All rights reserved Webutation…

15 © 2012 Hay Group. All rights reserved Key challenges in becoming a resilient organisation 2 Agility: where is the decision authority? Re-definition of the workplace: flat, decentralised, mobile, virtual, cross-x, appreciating pluralism Complexity of collaboration: global/local, inter-generational, diverse, virtual, inter-corporate Growing costs: resources, sustainability, scarcity of people Organisational adaptations to create loyalty: sustainable, needs based (individualised, age, gender, culture, values)

16 © 2012 Hay Group. All rights reserved What will not change ResultsHierarchy Relationships trust face to face leaders Need for leadersSecurity

17 © 2012 Hay Group. All rights reserved Five key features of the leader of tomorrow Conceptual and strategic thinking Ethics: integrity, sincerity, intellectual openness Loyalty creation - meaning and identity economics Leadership of heterogeneous and diverse teams Real, power-sharing team work inside and outside of the organisation

18 © 2012 Hay Group. All rights reserved Become technologically savvy Become even more strategic Understand human limitations – what is possible and what is not Manage expectations Connecting across organisations Top five for HR

What the best are already doing 03

20 © 2012 Hay Group. All rights reserved The unevenly distributed future: what the best are already doing Leadership starts early and is available to all Collaborative technology widely used Creating a glocal leadership team Development is targeted and individuated Focus on family/CSR/ work from home