REINVENTINGWORKFORCE PLANNING WITH ANALYTICS ‘IN THE NEW’

Michael Bazigos, PhD Senior PartnerAccenture Strategy

NY HR People + Strategy

New York CityFeb. 12, 2020

AGENDAWHY IS ORGANIZATIONAL AGILITY IMPORTANT?

HOW CAN COMPANIES BUILD WORKFORCE AGILITY?

HOW CAN YOU START?

NEW INSIGHTS ON SKILLS

WHY IS AGILITY IMPORTANT TO WORKFORCE MANAGEMENT?

WHY IS ORGANIZATIONAL AGILITY IMPORTANT?

ORGANIZATIONAL AGILITY

The ability to sustain performance over time through the capacity to rapidly sense and respond to opportunities and challenges – both novel and familiar – while maintaining its balance to progress core business objectives.

24%CHAOTIC & INCONSISTENT

12%TRULY AGILE

11%AT RISK

53%PLODDING ALONG

Percent of surveys represented

Vel

ocity

& A

dapt

iven

ess

Inde

x(z

-sco

re)

Foundational Base Index (z-score)

ORGANIZATIONS IN OUR DATABASE

SKEW SLOWWHILE MOST HAVE SUFFICIENT BACKBONE

4%

16%

LONGER-TERM PERFORMANCE ALIGNS WITH PERCEPTIONS10-YEAR EBITDA GROWTH % 2008-2017

Database average (6%) 6%

At Risk Plodding Along Chaotic & Inconsistent

Truly Agile

THE GREAT DIVIDE“Strategic Scalers” see a much higher success rate and return on AI investmentscompared to companies pursuing siloed proof of concepts.

Strategicscalers

Proof ofconcept

Strategicscalers

Proof ofconcept

78%42% 86%32%

nearly 3Xthe return on

AI investments

nearly 2Xthe success rate

Beyond the 3x ROI difference, we uncovered a positive correlation between successfully scaling AI and three key measures of financial valuation.

PAYING DIVIDENDS

+33%Price/earnings

(P/E) ratio

+35%Enterprise value/

revenue ratio

+28%Price/sales (P/S) ratio

Source: Accenture Strategy report, AI: Built to Scale

WHY IS AGILITY IMPORTANT TO WORKFORCE MANAGEMENT?

TRADITIONAL ASSUMPTIONS:

× One role = One person

× Labor = FTR core employee

× New skill = New hire

× Digital strategy = CIO

DEMOGRAPHICS + TECHNOLOGY =NEW WORKFORCE PLAYBOOK

DEMOGRAPHICS + TECHNOLOGY =QUESTIONS FOR HR

• Which work in my company is most automatable?

• Which roles or tasks can be sourced ‘adaptively’ – via talent platforms?

• Which new skills are trending now, and who in my company may have them already?

• How can I mitigate potential displacement of people?

• What are the emerging skill trends in my industry?

• What is our policy on workforce automation?

HOW CAN COMPANIES BUILD WORKFORCEAGILITY?

About where and how to build, buy, borrow and bot

Evolving to an agile workforce requires Insights

TALENT ECOSYSTEM

BUYHire, acquire

BORROWAdaptive

workforce

BUILDWorkforce

skills & experience

BOTRobotics

& AI

Optimal workforce mix

40%

60%

40%

Current workforceUnderstand where you are today

Workforce insights provide a complete picture

Example role mix Up to:

(AI/robots)Technology Human

Data Scientist

IT Managers

IT Business Analysts

60%

40%

60%

Adaptive workforce

JOB ROLES ARE BEING DECOMPOSED INTOCOMPONENT TASKS

CUSTOMERSERVICEANALYST

CUSTOMERSERVICE

REP

Compare disputedmerchandise to records REASON

& PLANY

Intelligent ProcessAUTOMATION

Record customer interactions

REASON& PLAN

YIntelligent ProcessAUTOMATION

Refer out unresolved customer grievances PERCEIVE

& SENSEY AUGMENTED

Human Intelligence

Solicit sales KNOW /LEARN

N Y ADAPTIVEInternal

Order root cause tests KNOW / LEARN

N Y ADAPTIVEExternal Managed

COMPANY TITLE

STANDARD TITLE

TASK DESCRIPTION

TASK TYPE AI? GIG? RECOMMENDATION

AI potential of tasks within job roles can now be assessed at enterprise level, enabling newskilling strategies

Copyright © 2020 Accenture. All rights reserved. 17

TYPICAL ANALYTIC DASHBOARD

Project

Project

Non-Project

Non-Project

n/a

Project

n/a

TOP GIG TALENT PLATFORMS

35 million users in 247 countries

14 million freelancers in 180 countries

Millions of creatives in 190 countries

10s of thousands of designers

Data source: 2020 Technology Market report by Josh Bersin @ www.hrtechconference.com

TOP SKILLS ON UPWORK

TYPICAL SKILL PROXIMITY MODELROLE ADJACENCY VIEW

ROLES ADJACENT TO PURCHASING (AT CENTER) ARE SHOWN IN THIS ANALYSIS

ACTUAL EXAMPLE

0-6 months

6-12 months

12-18 months

Indicative new skilling timelines

Declining Skills

Current role that has declining skills

SKILL OVERLAP ANALYSIS IS REQUIRED TO PLAN ROLE TRANSITIONS

Note:1) Time to upskilling is based on the skill proximity – the more proximate a skill is to another, lesser time is taken to upskill2) Thickness of the line represents more correlation

Declining skillsIn the current role

Skills with proximity to declining skills, to transition

Roles containing proximity skills, to transition

Solution Architect Ruby on Rails

Crystal Reports

AJAX

Business Intelligence

Big Data

PythonApache HadoopData WarehousingTableau

RDjangoSQLQlikViewScalaAngularJs

JavaScript

JSON

Machine Learning

Data Architecture

Data Scientist

Data Architect

ACTUAL EXAMPLE

ESTIMATING JOB ROLE SIMILARITY IS KEY TO RESKILLING AT SCALE

ACTUAL EXAMPLE

SYSTEMS ANALYST(82 FTEs)

“VERSATILE ANALYST OF

THE FUTURE” BUSINESS

ANALYSIS (35 FTEs)

QUALITY ASSURANCE(26 FTEs)

DATA ANALYST(26 FTEs)

PROGRMRANALYST (36 FTEs)

PROGRAM DELIVERY

MANAGER(33 FTEs)

LOW SIMILARITY

HIGH SIMILARITY

NEW INSIGHTS ON SKILL TRENDS

Copyright © 2018 Accenture. All rights reserved. 24

84%Executives say

skills are a core issue

Source: SHRM report, The New Landscape: Recruiting Difficulty and Skill Paths

Highest-demand “hard” skills in US (2019)

Cloud Computing

Artificial Intelligence

Analytical Reasoning

People Management

UX Design

Mobile Application Development

Video Production

Sales Leadership

Translation

Audio Production

Natural Language Processing

Scientific Computing

Game Development

Social Media Marketing

Animation

Business Analysis

Journalism

10

11

12

13

14

15

16

17

Digital Marketing

Industrial Design

Competitive Strategies

Customer Service Systems

Software Testing

Data Science

Computer Graphics

Corporate Communications

18

19

20

21

22

23

24

25

1

2

3

4

5

6

7

8

9

Source: https://learning.linkedin.com/blog/top-skills/the-skills-companies-need-most-in-2019--and-how-to-learn-them

Management & leadershipCorporate managers & ed administrators

Empathy & supportPsychiatrists & nurses

Science & engineeringChem engineers & computer programmers

Process & analysisAuditors & clerks

Analytical subject-matter expertiseAir traffic controllers & forensic science technicians

Relational subject-matter expertiseMedical team workers & interpreters

Maintaining tech equipmentMechanics & maintenance workers

Operating & maneuvering machineTruck drivers & crane operators

Physical/manual laborConstruction & landscaping workers

Physical servicesHairdressers & cooks

Clustering roles offers a unique lens to evolving work patterns

SOURCE: Accenture study, “It’s Learning, Just Not As You Know It”

Percentage of time potentially augmentable / automatable

All occupations

Science & engineering

Empathy & support

Relational subj expertise

Analytical subject expertise

Management & leadership

Process & analysis

Maintaining tech equipment

Operating machines

Physical services

Physical/manual labor 31

45

46

47

51

54

61

61

64

74

51

66

34

51

49

40

26

30

25

23

18

38

3

20

3

4

9

20

9

13

13

8

11

Augmentable(%) Automatable

SOURCE: Accenture study, “It’s Learning, Just Not As You Know It”

The rising importance of new skillsets

Complex reasoning CreativitySocio-emotional

intelligence Sensory perceptionImportance in 2017

Change since 2004

Importance in 2017

Change since 2004

Importance in 2017

Change since 2004

Importance in 2017

Change since 2004

Management & leadership

Empathy & support

Science & engineering

Analytical subject-matter expertise

Relational subject-matter expertise

Process & analysis

Physical services

Technical equipment maintenance

Machine operation & maneuvering

Physical manual labor

Importance: High Medium Low

SOURCE: Accenture study, “It’s Learning, Just Not As You Know It”

Science and engineering roles already require creativity and socio-emotional intelligence. This trend will accelerate with human-machine collaboration.

The changing importance of skills for science and engineering roles (2004-2017)

Creativity

Social-emotional intelligence

Sensory perception

Simple reasoning

Complex reasoning

Psychomotor

STEM/Analysis

Physical

Simple communication

Management and organization

Technical-operational

Scale based on US Department of Labor (O*Net) measure of skill importance, 1-5 scaleSource: Accenture analysis of data from The Occupational Information (O*Net) from the US Department of Labor

0 0.5 1-0.5-1

STEM skills are important for some people, but every worker needs to get better at complex reasoning.

The changing importance of stem analysis and complex reasoning skills

STEM/Analysis Complex reasoning

Importance in 2017 Change since 2004 Importance in 2017 Change since 2004

Management & leadership

Empathy & support

Science & engineering

Analytical subject-matter expertise

Relational subject-matter expertise

Process & analysis

Physical services

Technical equipment maintenance

Machine operation & maneuvering

Physical manual labor

Importance: High Medium Low

Note: Complex reasoning includes critical thinking, deductive reasoning, active learning and a set of higher-order cognitive capabilities.Source: Accenture analysis of data from The Occupational Information Network (O*Net) of the US Department of Labor.

Management & leadership

Complex reasoning Creativity

Social-emotional intelligence

Sensory perception

– all have trended up since 2004Highest importance skillsets now

‘HEAT’ IS THE NEW ‘STEM’ IN 2020

Science & engineering

Analytical subject expertise

Empathy & support

Maintaining tech equipment

Operating machines

SOURCE: Accenture OrgAnaltics group

Top power skills across all roles in US

Why it matters, in one sentence:While robots are great at optimizing old ideas, organizations need great employees who can conceive the solutions of tomorrow.

Why it matters, in one sentence:Having a great product, a great platform or a great concept is one thing, but the key is persuading people to buy into it.

Why it matters, in one sentence:As projects grow increasingly more complex and global in the age of AI, effective collaboration only grows more important.

Why it matters, in one sentence:An adaptable mind is an essential tool for navigating today’s ever-changing world, as yesterday’s solutions won’t solve tomorrow’s problems.

Why it matters, in one sentence:A timeless skill, mastering time management today will serve you the rest of your career.

https://learning.linkedin.com/blog/top-skills/the-skills-companies-need-most-in-2019--and-how-to-learn-them

Creativity Persuasion Collaboration AdaptabilityTime

management

WHERE CAN YOU START?

The revolution begins with you:

Ignite the workforce strategy discussion (or join it): What is yours?

What does the complete ‘4B’ picture look like for you: Buy, Build, Borrow, Bot?

Re-imagine the work using the Human + Machine concept (“Augmentation”)

Identify intersection points with current workforce planning process

Identify high-automatability roles as an early reskilling signal

Taking both company culture and economics into account, where would you focus first? Second? Third?

Build rapid prototypes, test, learn, improve, refine, then kill or scale

What to do tomorrow

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THANK YOU!MICHAEL BAZIGOS, PHDSenior Managing Director, Accenture Strategy

Michael.Bazigos@accenture.com

linkedin.com/in/bazigos

Scan QR code to link in with me!Click here for the full research reports:

AI: Built to Scale, Newskilling for GrowthIt’s Learning, Just Not As We Know It