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Long-term HRM strategy
       - turning HR into a crucial instrument for the long-term success of your company-




frederic de meyer
founder
institute for future insights
frederic@i4fi.com
www.i4fi.com
www.fredericdemeyer.com
@fdemeyer
Catching up




Who are you?
How are you doing?
How is your company dealing with long-term trends?
What do you expect from this session?
About me…


Sept 2011 – now

Jan 2001 – Sept 2011

Sept 1999 – Dec 2000

Dec 1998 – Sept 1999

July 1998 – Nov 1998

Sept 1997 – June 1998

Sept 1995 – Aug 1997

<1995
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    Trends affecting other functions in the organization;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
Some housekeeping rules



• Do not hesitate to interrupt me
• What is obvious to me is not necessarily obvious to you…
please ask !!!
• I’m not almighty …
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    The future of organizations and its impact on HRM;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
why do I have to bother about
     long-term trends?
let’s start with a challenge:
what do these have in common?
here’s a hint…




                            In 2002 Barbie lost its   Until 2006 Coca Cola
Ford almost got out of      market predominance          was boycotted           GM’s Hummer saw
 business in the early       to a new competitor      multiple times in India   sales drop 85% from
1900’s for sticking to it    who just entered this      due to its water            2006 to 2009
standardized products          market the year          mismanagement
                                    before                   practices
sometimes long-term shifts do have
   short-term consequences!
before we start… what are megatrends exactly?


         one hurricane is not a trend, it’s an event...



         an increasing number of hurricanes in the US
         is a trend, not necessarily a megatrend



         a worldwide increase in number and intensity of
         hurricanes would be a megatrend



         and the consequences might trigger new
         (mega)trends
my ‘rules of thumb’



• long-lasting
• amplifying
• cause disruptive shift
• have a global impact
• ... almost feel inevitable
  (not prone to change of taste or mood, lobby)
Which role should the megatrend exercise play in your
 corporate strategy?

                             Lobby;
                             Mood;
                           Adoption;
                           Regulation                                                   Opportunities
                                                                                  -go-to-market innovation;
                                                                                   - new products/services
         Fashion                                                    Corporate
          Tastes
       Communities                         Trends                   Execution
                                                                                             Threats
      Opinion makers                                                 (tactics)          -miss the boat;
          Mood
                                                                                     - existing competion

                                                      Predictions
                           Black Swans                                                   Opportunities
                                                                                 - business Model Innovation;
        Environment                                                                     - gain efficiency,
      Demographic shifts                                            Corporate           competitiveness
         Regulations                     Megatrends                  Strategy
       Macro-economy
        Political shifts                                                                    Threats
                                                                                         -irrelevance;
                                                                                      - new competitors




                                                                    Scenario
                                                                    Planning


Frederic De Meyer
What the megatrend exercise is all about




                                                         Opportunities
                                                 - business Model Innovation;
    Environment                                         - gain efficiency,
  Demographic shifts                 Corporate          competitiveness
     Regulations       Megatrends     strategy
   Macro-economy
    Political shifts                                        Threats
                                                         -irrelevance;
                                                      - new competitors
Companies that grew new opportunities based on
  megatrends

• Trend: Rising middle class in Emerging
   – Tata Nano Car
       Benefit from rising middle-class in India who want
       cheap, no-thrill car to replace motorbikes and obtain
       ‘car-driver’ status

• Trend: Ageing population, talent scarcety
   – Cisco Health Presence
       Less mobile but growing elderly population will need
       remote access to health. Less young people will lead
       to talent scarcity, remote doctors could be located
       anywhere in the world.

• Trend: Mass customization, Do it Yourself
   – Nike and many many others
       Offer multiple customization possibilities
Companies that built new business models based on
  megatrends...

• Trend: Global Grid, desintermediation,
  crowdsourcing
   – Peer-to-peer lending
      Companies like Prosper and Zopa organize peer-to-
      peer lending, making the task of a bank redundant.

    – Fan Funding
      Companies like Sellaband and Sonicangels enables
      anounymous funding of musicians for a share of
      potential revenue, making the intervention of music
      label companies redundant.

    – Crowdsourcing
      Marketing, advertisement, innovation, problem
      solving, consumer-generated design, ...
      Crowdsourcing moves into all segments
Companies that shaped their organization and vision to
  megatrends


• Trend: Sustainability, Ageing Polulation,
  Urbanization, Rising middle-class, ...
   – Siemens
       Communication on how each of Siemens’ Business
       Unit is responding to a specific megatrend challenge...
       Very effective corporate branding.


• Trend: Ageing Polulation
   – GlaxoSmithKline
       Vision statement completely aligned with Ageing
       Population trend
       ‘Do more, feel better, live longer’
in fact, megatrends could potentially transform many
areas of your business…


external

                 new           new business    new needs of    new customer
              competitors        models         customers        segments




                                       megatrends

internal

    new talents and    new marketing        new          new go-to-     new production
     competencies          mix           ecosystems     market models     processes
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    Trends affecting other functions in the organization;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
There’s different types of megatrends
       trends we can be                           trends that are taking shape but                            a tiny bit
     relatively certain of:                      future impact relatively uncertain:                         speculative:
        DEMOGRAPHIC                                       TECHNOLOGY
• aging population                         • ubiquitous computing      • consumerization
• increasing world population              • disintermediation         (BYOD)
• genY/Milennials                          • crowdsourcing             • augmented Reality
• urbanization/geographic mobility         • social Media              • 3D printing
• multi-ethnic society                     • SaaS, DIY                 • enhanced humans
• widening gap rich-poor                   • cloud Computing


                        SUSTAINABILITY                                 BUSINESS TRENDS
                         • global warming            • shared value (CSR)          • decentralization
                       • scarcity of resources       • social Entrepreneurship     • gamification
                       • energy dependency           • Cause marketing             • virtualization
                      • declining biodiversity       • social Business             • new business models
                        • green technologies         • open inno/sourcing

                                  CONSUMER                                                         GEOPOLITICS
             • mass customization       • radical transparency                    • power shift to East    • trade blocs and unions
                                        • social buying                           • globalization 3.0      • trade blocs and unions
                                                                                                           • the Market State
                                        • sustainable/ethical buying              • rising middle class    • the Market State
                                                                                                           • Virtual currencies

                                     SOCIETY
            • dematerialization         • talent shortage
            (digitization)              • boundary blurring
                                        • digital divide
look beyond the obvious…
 megatrends sometimes do have unsuspected consequences

                                                   desintermediation

impact obvious

                          retail shops
                     did loose some business already
                    through direct selling/ ecommerce                                                                      music industry
                                                                                                                      some fan-funding models have gone
                                                                               banking                                  broke, others getting successful
                                                                     peer-to-peer lending growing from
                                                                           800m$ to 3b$ this year


                     marketing
             crowdsourcing and open innovation
                    eating away share
                                                                   head hunting
                                                            recruitment websites and social media
                                                               are being used for talent search                           IT services
                                                                                                                  ‘do it yourself’ concepts are getting
                                                                                                                               mainstream

                                health care
                      ‘peer-to-peer’ health provision projects
                                     arise in US


                                                                                  Consulting
                                                                         get instant / online / mass-customized
                                                                                         advise?
                                                                                                                                   Governments
                                                                                                                               direct redistribution of wealth?

impact less obvious
look beyond the obvious…
 industries can be affected indirectly by trends

                                                       transport

impact obvious

                      Global warming                                                                                Power shift to
                   Legislation imposed on transport
                                                            Rising middle class in                                    emerging
                                                                                                                   New growth opportunities
                                                                  emerging
                                                                    Impact on costs (oil)



                  Shared value                                                                                   urbanization
                     Corporate image                                                                      More difficult to reach end customer
                                                              3D printing
                                                       Less need for transport of goods?


        Radical transparency/
                 LCA
             Adapt to client demand                   Cradle to cradle                                          Virtualization
                                                         Adapt processes                                       Less need for transport?




                                                                                 GenY
                                                                     Preference for ‘clean’ responsible
                                                                                businesses

impact less obvious
look beyond the obvious…
 try it out for your industry

                                   <your industry>

impact obvious




                  Energy dependence           enhanced humans        Cause marketing
                  Scarcity of resources        Augmented reality    New business models
                      Digital divide              Social media           gamification
                                                                            Social
                      Talent shortage            crowdsourcing
                                                   Power shift to
                       Global warming
                     Rising middle class in                            entrepreneurship
                                                                      Radical transparency/
                                                     emerging
                                                    urbanization               GenY
                           emerging
                           Shared value               3D printing           Virtualization
impact less obvious
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    Trends affecting other functions of the organization;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
How some corporate functions will evolve


                      R&D




                        Open
                                                        Manufact
                     Innovation
       ICT              Open                             uring
                       source
                                         Outsourcing
                                         3D Printing



                      Virtual
                     company
                                       Crowdsourcing
                                        Social buying
    Cust.
                                                          Marketing
   Service
                                 Affiliate
                                programs
                             ‘Crowd-selling’




             Admin                        Sales
The world becomes your R&D center



Open innovation                                          User generated
                            Open sourcing
  platforms                                                innovation




Most of Fortune 500 use    Open sourcing spreads even   Fiat Mio made through input
 open innovation now        to pharmaceutical market        of +10,000 customers
Manufacturing without factories




3D printing impact on manufacturing, spare parts, transport, logistics, …
               New opportunities in design and software
Can marketing tasks be done more efficiently by an
               anonymous crowd?



                                        Open
                                     Innovation
                                        Open
                                       source
                                                     Outsourcing
                                                    Outsourcing
                                                     3D Printing
                                                    3D Printing




                               Using the crowds’ creativity        Using the crowds’ creativity for
Using the crowd for research                                              producing things
     and predictions…          to design logo’s, websites,
                                new product features, …             (advertisements, videos, …)
Can marketing tasks be done more efficiently with
         alternative business models?



                        Open
                        Open
                     Innovation
                     Innovation
                        Open
                        Open
                       source
                       source
                                   Outsourcing
                                  Outsourcing
                                   3D Printing
                                  3D Printing
The world is your sales team
Simple administrative tasks can be done anywhere
Customer service via social media




Companies building peer-to-peer support communities find 95% of customers using it,
                  with 90% of them finding the solutions helpful
Technology becomes pervasive




Are Cloud computing, consumerization of IT and Do-it-Yourself
        Taking away control and responsibility of IT?
The future is never extreme

Disadvantages:                                                                                                               Advantages:
                                                             R&D
• complexity                                                                                                        • cost-efficiency gains
• loss of control                                                                                                          • lean company
• less loyalty from contributors                                                                                    • constant innovation
                                                            Open
                                                            Open                                           • more loyalty from customers
                                                         Innovation                             Manufact
                                                         Innovation
                           ICT                              Open                                 uring
                                                            Open
                                                           source
                                                           source
                                        Cloud,
                                                                              Outsourcing
                                                                               Outsourcing
                                   Consumerization,
                                                                              3D Printing
                                                                               3D Printing
                                         DIY


                                                          Virtual
                                        Virtual          company
                                                                             Crowdsourcing
                                                                               Crowdsourcing
                                       Self help
                                                                              Social buying
                                                                                Social buying
                                     Social media
                      Cust.
                                                                                                  Marketing
                     Service
                                                                       Affiliate
                                             Micro-tasking            programs
                                                                   ‘Crowd-selling’




                                       Admin                                    Sales
But new competencies will be needed




                                                 R&D



                                                    Open
                                                 Innovation
                                                    Open
                                                                                                 Manufac
           HRM                                     source                                         turing

                    Cloud                                                  Outsourcing
                  Consumeri                                                3D Printing

                    zation

                                                  Virtual
                                                 company
                     Virtual
                  Social media                                                  Crowdsourcing
                    Self help                                                    Social buying

         Cust.                                                                                    Market
        Service                                                                                    ing
                                                                  Affiliate
                                                                 programs
                                 Micro-tasking
                                                              ‘Crowd-selling’




                      ICT                                                   Sales
Conclusions for the future of organizations


• Will open up to the external world
• Will organize around projects (~ movie production)
• Will require new competencies from existing functions
• Will require seamless communication
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    Trends affecting other functions in the organization;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
What others consider to be long-term HR trends…




1) Rise in health-care costs                    1) Businesses seek to regain positive   1)  It’s the economy
2) Focus on domestic safety and security           HR image                             2)  Millennials are on the march
3) Use of technology to communicate with        2) Green initiatives still on hold      3)  Employee recruiting and networking online
    employees                                   3) Digital-age reality sets-in          4)  Made to order employment relationships
4) Growing complexity of legal compliance       4) Analysis via HR metrics to address   5)  The big blur (work-life)
5) Use of technology to perform transactional      performance                          6)  The rise of technology
    HR functions                                5) HR technology meets the small        7)  Employee training and development
6) Focus on global security                        business                                 transformed
7) Preparing for the next wave of               6) Increasing efficiency of business    8) Tension increases over government
    retirement/labor shortage                      processes                                intervention in the employer-employee
8) Use and development of e-learning            7) HR shared services gains steam           relationship
9) Exporting of US manufacturing jobs to                                                9) The rising cost of health-care
    developing countries                                                                10) Globalization, outsourcing and offshoring
10) Changing definition of family


                                                1. Technology
                                                2. Ageing society
                                                3. Generation Y
(1) Technological trends affecting HRM function

                     E-learning                                Cloud
                        Training                             computing
                                                                  Tools                         Enhanced
                                                                            Crowdsourcing       humans &
          Intranet          Collaboration                 BYOD
           Internal                                   (consumerization)         HR tasks        GRIN techs
                                tools                                                            Recruitment
        communication              Work style          Tools & benefits
                                                                                                Employee health

                                                NOW


                          Social Media                 Gamification         Augmented
    ERP                                                  Recruitment          reality
 Resource Mgt               Recruitment
                          Corporate image                 Training &          Training &
                                                         development         development




                                                                                   Impact on HRM:
                                                                          New relationship with technology –
                                                                             develop project design skills
(1) Other consequences of technological trends
(discussion)

   - are you using gamification, crowdsourcing, AR?
   - how would this impact HR functions?
   - what would be the main drivers for adoption?
   - why would you NOT use these new techs?
(2) How will the ageing population impact the HRM
function?

                                                              2010   2050

                                        employed/retired      2,24   1,51
                                        employed/(retired +
                                        unemployed)           1,54   1,40

                                        people at empl age    6,9M   6.4M
                                        employment            6,2M    ???




                                          Impact on HRM:
                                    At same employment rate,
                                unemployment will be 3% in 2050
                               This will ineluctably lead to tensions
                                        on the labor market
(2) Other consequences of ageing population
(discussion)

   - how are you preparing for ageing population?
   - how are you managing the different generations in your company?
   - what are the specific threats of ageing population for your company?
(3) Generation Y workers will change the workfloor
Changing expectations about work
Generation internet is a fact of life

                                Traditionalist            Middle Age           Generation 30+     Generation
                                                                                                  Internet
Training                        the hard way              too much and I'll    required to keep   continuous and
                                                          leave                me                 expected
Learning style                  classroom                 facilitated          independent        collaborative and
                                                                                                  networked
Communication style             top down                  guarded              hub and spoke      collaborative


Problem-solving                 hierarchical              horizontal           independent        collaborative


Decision-making                 seeks approval            team informed        team includes      team decides


Leadership style                command and               get out of the way coach                partner
                                control                                                                                  Impact on HRM:
Feedback                        no news is good           once per year        weekly/daily       on demand           How to manage different
                                news
                                                                                                                        generations in one
Technology use                  uncomfortable             unsure               unable to work     indispensable
                                                                               without it                                   company?
Job changing                    unwise                    sets me back         necessary          part of the plan



(s ource: La nca s ter a nd Stil l ma n 'When genera tions col l i de' 2003)
(3) Generation Y workers will change the workfloor
(discussion)

   - New migration pattern
   - how dependent are you from GenY‘action’ is
         - young people move to where talent?
   - 3 generations your working environment to attract GenY employees?
     do you adapt on workfloor
   - Do you offer ‘tailor made’ solutions environment of each generation?
         - tailor made HR services/ work to the needs
         - tension? New communication / learning
   - longer working age
         - adapt work environment and conditions
(my wildcard) Young potentials might prefer to become
           entrepreneurs

                          # Jaren na beëindiging van de studies
                   0      5                10                15   20
           24-30




                                                                       werknemer
           30-35
                                                                       mix
Leeftijd




                                                                       ondernemer




           37-41



                                                                                      Impact on HRM:
      Frederic De Meyer                                                       The importance of attracting and
                                                                                  retaining intrapreneurs !
(wildcard) Ideas to stimulate intrapreneurship (and,
hence, innovation) in your company

• Take ideas seriously (no, not through an ‘idea box’)

• Stimulate autonomous idea development

• Democratize decision-taking (bottom-up)

• Cell-division with same DNA

• Spin-in

• Cherish failure
(wildcard) stimulating intrapreneurship
(discussion)

    - New migration pattern
    - do you have programs to to where ‘action’ is
          - young people move stimulate intrapreneurship?
    - 3 generations on with new ideas?
      how do you deal workfloor
    - how do you make sure all corporateenvironment
          - tailor made HR services/ work functions come up with new
    ideas?tension? New communication / learning
          -
    - longer working age
          - adapt work environment and conditions
Agenda
Meeting up & expectations
Part 1: zooming in on megatrends
•    Introduction to megatrends and their importance in corporate
     strategy;
•    Overview of megatrends and their impact on companies and
     industries;
•    The future of organizations and its impact on HRM;
•    Specific trends affecting HRM

Part 2: refine your strategy with megatrends
•    Megatrends exercise step-by-step
•    (Ideas for brainstorming sessions)
•    (Ways to draw conclusions for corporate strategy)
here’s a simple process to assess the impact of
megatrends on your company:


                 #1 identify              Mega trends
              Megatrends to discuss



                  #2 discuss Megatrends
                         internally



                   #3draw conclusions
                  and recommendations



              #4 Communicate    results
              internally and externally
but the devil is in the detail…
here’s a simple process to assess the impact of
megatrends on your company:


                 #1 identify              Mega trends
              Megatrends to discuss



                  #2 discuss Megatrends
                         internally



                   #3draw conclusions
                  and recommendations



              #4 Communicate    results
              internally and externally
Identification of Megatrends


• Invite employees to submit
• Internal survey
• Brainstorming
• External consultants
• External individuals
   – Linked in
   – Crowdsourcing
• Research
Research option: Researching External experts’
     assessment of megatrends

    Ernst & Young NL                   CSIRO             Compenhagen Institute    Geert Noels -author of             IBM                   McKinsey               Richard Watson               LinkedIn
      megatrends                                           for Future Studies        'Econoshocks'

Cultural / multiethnic       More from less              Ageing population       Demography                Globalization            The great rebalancing     Ageing Population       technology
society will lead to         (resources)                                                                                            (power shift)
conflict
Ageing population            Personalisation of          Globalization           Shift to East             demographics             The productivity          Powershift East         sustainability
                             product and services                                                                                   imperative
Scarcety of natural          Divergent demographics      Technological           New economy / tech        Technological progress   The Global Grid           Global Connectiviy (>   consumer power
resources                    between rich and poor +     development                                                                (connectedness)           fear)
                             impact on health
Individualization            More people on the          Prosperity              End of fossile fuels      Omni consumer (more      Pricing the planet (green) GRIN Technology        shift to East
                             move (mobility - job &                                                        informed and
                             geographical)                                                                 empowered)
Climate                      iWorld (digital & natural   Individualization       New capitalism            corporate social         The Market State (govts   Environment             demography
                             convergence)                                                                  responsibility           vs globalization)
Islam grows, Christianity                                Commercialization       Green economy             political uncertainty                                                      meaning
fades
More wealthy countries                                   Health & environment                                                                                                         scarcity of resources

Technology impacts more                                  Acceleration                                                                                                                 increasing complexity
parts of daily life
Global transport will ever                               Network organizing
increase                                                 (network-centricity)
                                                         Urbanization
Analyzing 338 responses to a LinkedIn question
about Megatrends



                                                                                     (Question asked by Andreas von
                                                                                     der Heydt, director at L’Oréal)

     26.8% technology (collaboration, increased efficiency, cloud/virtualization, brainstorming (social media), smart
           cities3D, nanotechs, mobile, augmented reality, new user interfaces, do it yourself, SaaS
     13.7% sustainability, corporate responsibility, green tech
     12.5% consumer power (24/7, consumerism, meaning, less is more, buy local, customization, online retail, transparancy
     10.1% shift to East (innovation outside of US, decline of West, rising middle class, decline of Dollar
      9.5% demography
      4.8% meaning (return of ideology, increasing empathy
      4.8% scarcity of resources (water
      4.8% increasing complexity
      3.0% online learning, for-profit universities
      1.8% cost cutting
      1.8% risk aversion
      1.8% simplicity
      1.8% Innovation, entrepreneurship
      1.2% gov 2.0
      0.6% insourcing
      0.6% simplexity
      0.6% Wealth/poverty
External experts’ assessment of megatrends
     – group in themes


    Ernst & Young NL                   CSIRO             Compenhagen Institute    Geert Noels -author of             IBM                   McKinsey           Richard Watson - author            LinkedIn
      megatrends                                           for Future Studies        'Econoshocks'                                                                of 'Future Files'

Cultural / multiethnic       More from less              Ageing population       Demography                Globalization            The great rebalancing     Ageing Population         technology
society will lead to         (resources)                                                                                            (power shift)
conflict
Ageing population            Personalisation of          Globalization           Shift to East             demographics             The productivity          Powershift East           sustainability
                             product and services                                                                                   imperative
Scarcety of natural          Divergent demographics      Technological           New economy / tech        Technological progress   The Global Grid           Global Connectiviy (>     consumer power
resources                    between rich and poor +     development                                                                (connectedness)           fear)
                             impact on health
Individualization            More people on the          Prosperity              End of fossile fuels      Omni consumer (more      Pricing the planet (green) GRIN Technology          shift to East
                             move (mobility - job &                                                        informed and
                             geographical)                                                                 empowered)
Climate                      iWorld (digital & natural   Individualization       New capitalism            corporate social         The Market State (govts   Environment               demography
                             convergence)                                                                  responsibility           vs globalization)
Islam grows, Christianity                                Commercialization       Green economy             political uncertainty                                                        meaning
fades
More wealthy countries                                   Health & environment                                                                                                           scarcity of resources
Technology impacts more                                  Acceleration                                                                                                                   increasing complexity
parts of daily life
Global transport will ever                               Network organizing
increase                                                 (network-centricity)
                                                         Urbanization
External experts’ assessment of megatrends
  - cleaned up major trends

                   Demographics:                                    Geopolitics:
          - Ageing Population                            - Globalization 3.0
          - Global mobility                              - Global Grid
          - Generation Y                                 - Rising power of Emerging
          - Urbanization                                 - Rising middle class
          - Gap rich-poor                                - The Market State

                                          Consumer trends:
                                    -Responsible buying
                                    - Mass customization


                    Environment:                                    Technology:
          - Global warming                               -Pervasive Technology (IoT)
          - Scarcety of resources                        - Augmented reality
          - Energy dependency                            - Social Networks
          - Green technologies                           - GRIN Technologies
          - Radical Transparency                         - Tech customization



TIP: These are not the only Megatrends... Keep an eye on megatrends constantly !
…or select from the 46 used by i4fi…
       trends we can be                           trends that are taking shape but                            a tiny bit
     relatively certain of:                      future impact relatively uncertain:                         speculative:
        DEMOGRAPHIC                                       TECHNOLOGY
• aging population                         • ubiquitous computing      • social Media
• increasing world population              • disintermediation         • augmented Reality
• genY/Milennials                          • crowdsourcing             • 3D
• urbanization/geographic mobility         • social Media              • enhanced humans
• multi-ethnic society                     • SaaS, DIY
• widening gap rich-poor                   • cloud Computing


                        SUSTAINABILITY                                 BUSINESS TRENDS
                         • global warming            • shared value (CSR)          • decentralization
                       • scarcity of resources       • social Entrepreneurship     • gamification
                       • energy dependency           • Cause marketing             • virtualization
                      • declining biodiversity       • social Business             • new business models
                        • green technologies         • open inno/sourcing

                                  CONSUMER                                                         GEOPOLITICS
             • mass customization       • radical transparency                    • power shift to East    • trade blocs and unions
                                        • social buying                           • globalization 3.0      • trade blocs and unions
                                                                                                           • the Market State
                                        • sustainable/ethical buying              • rising middle class    • the Market State
                                                                                                           • Virtual currencies

                                     SOCIETY
            • dematerialization         • talent shortage
            (digitization)              • boundary blurring
                                        • digital divide
Make a selection, for instance with an internal survey




     Topic        Trend               Q1: Is this a NEW Q2: Is this trend    Q3: Is this a +3   Q4: Is this trend
                                      trend ?           disruptive?          year trend?        important for our
                                                                                                company?
                                                             Rate from 1-5
 1   Demography   Ageing population
 2   Demography   Growing mobility
 3   Demography   New migration
 4   Demography   Generation Y
guidelines for selecting trends to assess in your company


                Mega trends



                        •     don’t select (solely) trends with an obvious
                              impact on your industry or company… the
                              most successful ideas for innovation will
                              come from elsewhere;

                        •     get your ideas and selection from a
                              combination of internal (survey) and external
                              (consultants) input;

                        •     generate 50 ideas for megatrends, select 20
                              to discuss.
here’s a simple process to assess the impact of
megatrends on your company:


                 #1 identify
              Megatrends to discuss



                  #2 discuss Megatrends
                         internally



                   #3draw conclusions
                  and recommendations



              #4 Communicate    results
              internally and externally
Discuss the impact of megatrends in small groups
Think Tank discussions

22 megatrends, 5              Discussed in 5 Think             Discussion points:
themes                               Tanks
            Demographics:         (+/- 25 participants)
- Ageing Population
- Global mobility
- Generation Y
- Urbanization
- Gap rich-poor
                                                                         Subtrends
              Geopolitics:
- Globalization 3.0
- Global Grid                                             Consequences
- Rising power of Emerging
- Rising middle class
- The Market State                                                         Drivers
                                                                          Inhibitors
             Environment:
- Global warming                                           Likeliness
- Scarcety of resources                                     Timeline
- Energy dependency
- Green technologies
- Radical Transparency
                                                                         Impact on
                                                                          company
             Technology:
-Pervasive Technology (IoT)                                Impact on
- Augmented reality                                        ecosystem
- Social Networks
- GRIN Technologies                                                      Antitrends?
- Tech customization

          Consumer trends:
-Responsible buying
- Mass customization
Tip 1: send previous briefing ‘fact sheets’ with thought-
provoking questions...
Tip 2: also discuss potential anti-trends, they might
constitute specific opportunities

       CSIRO - MEGATRENDS                             Bridge8 - ANTITRENDS

   More from less                                  Less from less
       Limited resources and increasing               People adapt their needs to diminshing
       population will drive need for more            resources
       efficiency in resource management
   A personal touch                                Reducing choice
       Drive for ever increasing personalisation      People look for ways to simplify decision
       of services and goods                          taking
   Divergent demographics                          Growing global health
       OECD countries ageing and unhealthy,           Global health improvement due to science
       developing nations boom                        breakthrough, improved fertility rate
   More people on the move                         Fullfillment
      Geographic and functional mobility,              Young people will build diverse
      urbanization                                     experience leading to single goal,
                                                       technology will make location obsolete
   iWorld                                          Opting out
      Digital and natural world get mixed.             More people will chose to deconnect
      Internet of things
Tip 3: use brainstorming techniques to open up the
minds at the start of each megatrend discussion
Tip 3-1: use business model canvas to open up the
minds at the start of each megatrend discussion




You can download the canvas for free on www.businessmodelgeneration.com/canvas
Tip 3-2: use your own canvas to open up the minds at
  the start of each megatrend discussion
                                                           Connect with corporate strategy


Recruitment         Training &    Employee Retention
                    Development


                                  Employee Loyalty & satisfaction




                                  Employee Performance




Payroll/ Benefits                 Admin




                                                           HR Partners
guidelines for discussing trends in your company




                      •   Invite people with different background,
                          functions and seniority

                      •   follow a discussion template (though don’t
                          stick to it);

                      •   take notes during the discussion;

                      •   5-6 persons per theme, 30-60 min. per trend;

                      •   also look at anti-trends;

                      •   keep it fun !
here’s a simple process to assess the impact of
megatrends on your company:


                 #1 identify
              Megatrends to discuss



                  #2 discuss Megatrends
                         internally



                   #3draw conclusions
                  and recommendations



              #4 Communicate    results
              internally and externally
Trends segmentation according to timeline, to know
which ones to act on...


                        High

                                                 2                                            1
                                                                                4    5                 3
    Impact on company




                                                          24   8     7                                          6
                                                                                                       9
                                                                     10             12            11
                                                                                         13
                                                         15     16                                              14
                                            17                       19
                                                                                                                     18
                                                                               20
                                                         22               21             23




                        Low
                                     Already happening         Recent/nacent                           Future

                        Frederic De Meyer
                                                                timeline
Trends segmentation based on which action to take
                                                                                                   1. Aware
                                                                                                   These are the trends that your company has no
                                                                                                   influence over and that won’t impact on your core
                                                                                                   activities. In essence, these are quite harmless,
                                                                                                   although it is a good idea to keep an eye on them
manageble




                                                                                                   since they might influence the environment of your
                       2                                                  1                        customers, channels or partners. However, they do
                                                            4    5                 3               not require any immediate action.
                           Influence    24 8     7                        Action
                                                                               9
                                                                                       6           2. Monitor
                                                 10                                                The trends in this quadrant are potentially
                                                                12            11                   dangerous. They have an impact on your core
                                                                     13                            activities but you have no influence over them. The
                                       15   16                                         14          best you can do is follow them very closely, monitor
                 17                              19                                                their breadth and impact in order to detect early
                                                                                            18     warning signals and have an action plan ready for
                                                           20
                                                                                                   the event if these trends cross a certain threshold.
                                       22             21                                           3. Influence
                                                                                                   These are trends that you can influence but that
                             Aware                                        Monitor                  only have an indirect impact on your business,
determined




                                                                                                   through clients, employees or channels, for
                                                                                                   instance. They often constitute a good opportunity
                                                                                                   for your company to increase its relevancy over
                                                                                                   these stakeholders, increase loyalty, gain new
                                                                                                   customers or develop new services.
             context                                                                        core   4. Action
                                                                                                   For the trends that impact your activities directly
Frederic De Meyer                                                                                  and over which you have a certain level of influence,
                                                                                                   they require immediate action. They will very often
                                                                                                   create new competitors if you don’t react (think of
                                                                                                   peer-to-peer lending in the financial sector) or
                                                                                                   create new business models and innovative
                                                                                                   products and services. You need to assess these
                                                                                                   trends urgently and develop a way to respond to
                                                                                                   them quickly.
‘Heat maps’ very effective way to visualize threats for
customers


                                                                                                            Heat maps can help you to:
                                                                                            Weight
                            Trend 1             Trend 2   Trend 3   Trend 4   Trend [...]       (%
                                                                                            T urno v e r)   • uncover which customer segments, business lines,
                                                                                                            partners, etc are under threat (or opportunity) from
Customer segment 1              -10                 -6      -5         0          -3           60%          specific trends
                                                                                                            • if you add their relative weight (in %) it can quickly
Customer segment 2                2                  8       0         2           0           20%
                                                                                                            show you how threatened your business is by the
Customer segment 3                8                 -2       3        -8          -3           10%          situation at your customers
Customer segment 4               -7                  0       0         0           2            5%          • lead to more meaningful (and purposeful)
Customer segment [...]            7                  6       2         1          10            5%          conversations with customers
                         F re de ric D e M e ye r                                                           •Refine your strategy based on impact analysis of
                                                                                                            megatrends…
guidelines for drawing conclusions from the trends
discussions




                      •   segment the trends so as to show which ones
                          need action or a close monitoring

                      •   map the way megatrends impact your
                          customer segments and stakeholders

                      •   This is not rocket science… you can do this
                          based on (internal) survey
here’s a simple process to assess the impact of
megatrends on your company:


                 #1 identify
              Megatrends to discuss



                  #2 discuss Megatrends
                         internally



                   #3draw conclusions
                  and recommendations



              #4 Communicate    results
              internally and externally
Maximizing impact of the Megatrend exercise



                             Available to:          Contains:                                           Aim:                                    Format:

Megatrends document:         every employee       'Fact sheets' prepared for discussions,               Alignment of vision, buy-in for         Doc + discuss
                                                  with some high level outcome of                       decisions
                                                  discussions
Executive Briefing:         top management        Short document with key                               Influence decisions, ideas for business Doc + discuss
                                                  opportunities and threats (not in other               model innovation
                                                  docs)
Partner document:           partners and channels Fact sheets of those trends that are                  Partner loyalty, joint business planning Doc + discuss
                                                  impacting channels
Packs per customer segment: vertical sales teams  Fact sheets of those trends that are                  Customer intimacy, marketing & sales Doc + discuss
                                                  impacting specific customers                          arguments
Packs per product segment:  productmanagers,      Fact sheets of those trends that are                  Better market positioning, marketing, Doc + discuss
                            business units, R&D   impacting specific product or services                sales messages
High level summary:         External world        Your company's vision on Megatrends                   Feedback from people outside of       Presentations
                                                                                                        industry, new ideas and insights




                                                                                    Assessing the impact
                                                                                    of Megatrends on
                                                                                    your company




                                                                                    frederic de meyer
guidelines for communicating the conclusions of the
megatrends exercise




                      •   Maximize the value of the insights for different
                          audiences;

                      •   Select only the material and trends relevant to
                          the specific audiences (don’t communicate
                          everything to everyone);

                      •   Use these documents to explain specific
                          strategic decisions
long-term shifts do have a short
   term effect… prepare your
         business now!
Useful documents and templates


                CD-ROM contains:

                 Full presentation deck in PPT;
                 40 megatrends fact sheets;
                 Brainstorming cue-cards;
                 Megatrend selection survey template;
                 Megatrend discussion template;
                 +20 reports on specific megatrends (publicly
                available)
The future cannot be predicted
     …but it can be made !
           (ancient African saying)




                    www.i4fi.com
             www.fredericdemeyer.com
       additional questions: frederic@i4fi.com

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Hrm megatrends workshop june 2012

  • 1. Long-term HRM strategy - turning HR into a crucial instrument for the long-term success of your company- frederic de meyer founder institute for future insights frederic@i4fi.com www.i4fi.com www.fredericdemeyer.com @fdemeyer
  • 2. Catching up Who are you? How are you doing? How is your company dealing with long-term trends? What do you expect from this session?
  • 3. About me… Sept 2011 – now Jan 2001 – Sept 2011 Sept 1999 – Dec 2000 Dec 1998 – Sept 1999 July 1998 – Nov 1998 Sept 1997 – June 1998 Sept 1995 – Aug 1997 <1995
  • 4. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • Trends affecting other functions in the organization; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 5. Some housekeeping rules • Do not hesitate to interrupt me • What is obvious to me is not necessarily obvious to you… please ask !!! • I’m not almighty …
  • 6. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • The future of organizations and its impact on HRM; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 7. why do I have to bother about long-term trends?
  • 8. let’s start with a challenge: what do these have in common?
  • 9. here’s a hint… In 2002 Barbie lost its Until 2006 Coca Cola Ford almost got out of market predominance was boycotted GM’s Hummer saw business in the early to a new competitor multiple times in India sales drop 85% from 1900’s for sticking to it who just entered this due to its water 2006 to 2009 standardized products market the year mismanagement before practices
  • 10. sometimes long-term shifts do have short-term consequences!
  • 11. before we start… what are megatrends exactly? one hurricane is not a trend, it’s an event... an increasing number of hurricanes in the US is a trend, not necessarily a megatrend a worldwide increase in number and intensity of hurricanes would be a megatrend and the consequences might trigger new (mega)trends
  • 12. my ‘rules of thumb’ • long-lasting • amplifying • cause disruptive shift • have a global impact • ... almost feel inevitable (not prone to change of taste or mood, lobby)
  • 13. Which role should the megatrend exercise play in your corporate strategy? Lobby; Mood; Adoption; Regulation Opportunities -go-to-market innovation; - new products/services Fashion Corporate Tastes Communities Trends Execution Threats Opinion makers (tactics) -miss the boat; Mood - existing competion Predictions Black Swans Opportunities - business Model Innovation; Environment - gain efficiency, Demographic shifts Corporate competitiveness Regulations Megatrends Strategy Macro-economy Political shifts Threats -irrelevance; - new competitors Scenario Planning Frederic De Meyer
  • 14. What the megatrend exercise is all about Opportunities - business Model Innovation; Environment - gain efficiency, Demographic shifts Corporate competitiveness Regulations Megatrends strategy Macro-economy Political shifts Threats -irrelevance; - new competitors
  • 15. Companies that grew new opportunities based on megatrends • Trend: Rising middle class in Emerging – Tata Nano Car Benefit from rising middle-class in India who want cheap, no-thrill car to replace motorbikes and obtain ‘car-driver’ status • Trend: Ageing population, talent scarcety – Cisco Health Presence Less mobile but growing elderly population will need remote access to health. Less young people will lead to talent scarcity, remote doctors could be located anywhere in the world. • Trend: Mass customization, Do it Yourself – Nike and many many others Offer multiple customization possibilities
  • 16. Companies that built new business models based on megatrends... • Trend: Global Grid, desintermediation, crowdsourcing – Peer-to-peer lending Companies like Prosper and Zopa organize peer-to- peer lending, making the task of a bank redundant. – Fan Funding Companies like Sellaband and Sonicangels enables anounymous funding of musicians for a share of potential revenue, making the intervention of music label companies redundant. – Crowdsourcing Marketing, advertisement, innovation, problem solving, consumer-generated design, ... Crowdsourcing moves into all segments
  • 17. Companies that shaped their organization and vision to megatrends • Trend: Sustainability, Ageing Polulation, Urbanization, Rising middle-class, ... – Siemens Communication on how each of Siemens’ Business Unit is responding to a specific megatrend challenge... Very effective corporate branding. • Trend: Ageing Polulation – GlaxoSmithKline Vision statement completely aligned with Ageing Population trend ‘Do more, feel better, live longer’
  • 18. in fact, megatrends could potentially transform many areas of your business… external new new business new needs of new customer competitors models customers segments megatrends internal new talents and new marketing new new go-to- new production competencies mix ecosystems market models processes
  • 19. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • Trends affecting other functions in the organization; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 20. There’s different types of megatrends trends we can be trends that are taking shape but a tiny bit relatively certain of: future impact relatively uncertain: speculative: DEMOGRAPHIC TECHNOLOGY • aging population • ubiquitous computing • consumerization • increasing world population • disintermediation (BYOD) • genY/Milennials • crowdsourcing • augmented Reality • urbanization/geographic mobility • social Media • 3D printing • multi-ethnic society • SaaS, DIY • enhanced humans • widening gap rich-poor • cloud Computing SUSTAINABILITY BUSINESS TRENDS • global warming • shared value (CSR) • decentralization • scarcity of resources • social Entrepreneurship • gamification • energy dependency • Cause marketing • virtualization • declining biodiversity • social Business • new business models • green technologies • open inno/sourcing CONSUMER GEOPOLITICS • mass customization • radical transparency • power shift to East • trade blocs and unions • social buying • globalization 3.0 • trade blocs and unions • the Market State • sustainable/ethical buying • rising middle class • the Market State • Virtual currencies SOCIETY • dematerialization • talent shortage (digitization) • boundary blurring • digital divide
  • 21. look beyond the obvious… megatrends sometimes do have unsuspected consequences desintermediation impact obvious retail shops did loose some business already through direct selling/ ecommerce music industry some fan-funding models have gone banking broke, others getting successful peer-to-peer lending growing from 800m$ to 3b$ this year marketing crowdsourcing and open innovation eating away share head hunting recruitment websites and social media are being used for talent search IT services ‘do it yourself’ concepts are getting mainstream health care ‘peer-to-peer’ health provision projects arise in US Consulting get instant / online / mass-customized advise? Governments direct redistribution of wealth? impact less obvious
  • 22. look beyond the obvious… industries can be affected indirectly by trends transport impact obvious Global warming Power shift to Legislation imposed on transport Rising middle class in emerging New growth opportunities emerging Impact on costs (oil) Shared value urbanization Corporate image More difficult to reach end customer 3D printing Less need for transport of goods? Radical transparency/ LCA Adapt to client demand Cradle to cradle Virtualization Adapt processes Less need for transport? GenY Preference for ‘clean’ responsible businesses impact less obvious
  • 23. look beyond the obvious… try it out for your industry <your industry> impact obvious Energy dependence enhanced humans Cause marketing Scarcity of resources Augmented reality New business models Digital divide Social media gamification Social Talent shortage crowdsourcing Power shift to Global warming Rising middle class in entrepreneurship Radical transparency/ emerging urbanization GenY emerging Shared value 3D printing Virtualization impact less obvious
  • 24. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • Trends affecting other functions of the organization; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 25. How some corporate functions will evolve R&D Open Manufact Innovation ICT Open uring source Outsourcing 3D Printing Virtual company Crowdsourcing Social buying Cust. Marketing Service Affiliate programs ‘Crowd-selling’ Admin Sales
  • 26. The world becomes your R&D center Open innovation User generated Open sourcing platforms innovation Most of Fortune 500 use Open sourcing spreads even Fiat Mio made through input open innovation now to pharmaceutical market of +10,000 customers
  • 27. Manufacturing without factories 3D printing impact on manufacturing, spare parts, transport, logistics, … New opportunities in design and software
  • 28. Can marketing tasks be done more efficiently by an anonymous crowd? Open Innovation Open source Outsourcing Outsourcing 3D Printing 3D Printing Using the crowds’ creativity Using the crowds’ creativity for Using the crowd for research producing things and predictions… to design logo’s, websites, new product features, … (advertisements, videos, …)
  • 29. Can marketing tasks be done more efficiently with alternative business models? Open Open Innovation Innovation Open Open source source Outsourcing Outsourcing 3D Printing 3D Printing
  • 30. The world is your sales team
  • 31. Simple administrative tasks can be done anywhere
  • 32. Customer service via social media Companies building peer-to-peer support communities find 95% of customers using it, with 90% of them finding the solutions helpful
  • 33. Technology becomes pervasive Are Cloud computing, consumerization of IT and Do-it-Yourself Taking away control and responsibility of IT?
  • 34. The future is never extreme Disadvantages: Advantages: R&D • complexity • cost-efficiency gains • loss of control • lean company • less loyalty from contributors • constant innovation Open Open • more loyalty from customers Innovation Manufact Innovation ICT Open uring Open source source Cloud, Outsourcing Outsourcing Consumerization, 3D Printing 3D Printing DIY Virtual Virtual company Crowdsourcing Crowdsourcing Self help Social buying Social buying Social media Cust. Marketing Service Affiliate Micro-tasking programs ‘Crowd-selling’ Admin Sales
  • 35. But new competencies will be needed R&D Open Innovation Open Manufac HRM source turing Cloud Outsourcing Consumeri 3D Printing zation Virtual company Virtual Social media Crowdsourcing Self help Social buying Cust. Market Service ing Affiliate programs Micro-tasking ‘Crowd-selling’ ICT Sales
  • 36. Conclusions for the future of organizations • Will open up to the external world • Will organize around projects (~ movie production) • Will require new competencies from existing functions • Will require seamless communication
  • 37. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • Trends affecting other functions in the organization; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 38. What others consider to be long-term HR trends… 1) Rise in health-care costs 1) Businesses seek to regain positive 1) It’s the economy 2) Focus on domestic safety and security HR image 2) Millennials are on the march 3) Use of technology to communicate with 2) Green initiatives still on hold 3) Employee recruiting and networking online employees 3) Digital-age reality sets-in 4) Made to order employment relationships 4) Growing complexity of legal compliance 4) Analysis via HR metrics to address 5) The big blur (work-life) 5) Use of technology to perform transactional performance 6) The rise of technology HR functions 5) HR technology meets the small 7) Employee training and development 6) Focus on global security business transformed 7) Preparing for the next wave of 6) Increasing efficiency of business 8) Tension increases over government retirement/labor shortage processes intervention in the employer-employee 8) Use and development of e-learning 7) HR shared services gains steam relationship 9) Exporting of US manufacturing jobs to 9) The rising cost of health-care developing countries 10) Globalization, outsourcing and offshoring 10) Changing definition of family 1. Technology 2. Ageing society 3. Generation Y
  • 39. (1) Technological trends affecting HRM function E-learning Cloud Training computing Tools Enhanced Crowdsourcing humans & Intranet Collaboration BYOD Internal (consumerization) HR tasks GRIN techs tools Recruitment communication Work style Tools & benefits Employee health NOW Social Media Gamification Augmented ERP Recruitment reality Resource Mgt Recruitment Corporate image Training & Training & development development Impact on HRM: New relationship with technology – develop project design skills
  • 40. (1) Other consequences of technological trends (discussion) - are you using gamification, crowdsourcing, AR? - how would this impact HR functions? - what would be the main drivers for adoption? - why would you NOT use these new techs?
  • 41. (2) How will the ageing population impact the HRM function? 2010 2050 employed/retired 2,24 1,51 employed/(retired + unemployed) 1,54 1,40 people at empl age 6,9M 6.4M employment 6,2M ??? Impact on HRM: At same employment rate, unemployment will be 3% in 2050 This will ineluctably lead to tensions on the labor market
  • 42. (2) Other consequences of ageing population (discussion) - how are you preparing for ageing population? - how are you managing the different generations in your company? - what are the specific threats of ageing population for your company?
  • 43. (3) Generation Y workers will change the workfloor Changing expectations about work Generation internet is a fact of life Traditionalist Middle Age Generation 30+ Generation Internet Training the hard way too much and I'll required to keep continuous and leave me expected Learning style classroom facilitated independent collaborative and networked Communication style top down guarded hub and spoke collaborative Problem-solving hierarchical horizontal independent collaborative Decision-making seeks approval team informed team includes team decides Leadership style command and get out of the way coach partner control Impact on HRM: Feedback no news is good once per year weekly/daily on demand How to manage different news generations in one Technology use uncomfortable unsure unable to work indispensable without it company? Job changing unwise sets me back necessary part of the plan (s ource: La nca s ter a nd Stil l ma n 'When genera tions col l i de' 2003)
  • 44. (3) Generation Y workers will change the workfloor (discussion) - New migration pattern - how dependent are you from GenY‘action’ is - young people move to where talent? - 3 generations your working environment to attract GenY employees? do you adapt on workfloor - Do you offer ‘tailor made’ solutions environment of each generation? - tailor made HR services/ work to the needs - tension? New communication / learning - longer working age - adapt work environment and conditions
  • 45. (my wildcard) Young potentials might prefer to become entrepreneurs # Jaren na beëindiging van de studies 0 5 10 15 20 24-30 werknemer 30-35 mix Leeftijd ondernemer 37-41 Impact on HRM: Frederic De Meyer The importance of attracting and retaining intrapreneurs !
  • 46. (wildcard) Ideas to stimulate intrapreneurship (and, hence, innovation) in your company • Take ideas seriously (no, not through an ‘idea box’) • Stimulate autonomous idea development • Democratize decision-taking (bottom-up) • Cell-division with same DNA • Spin-in • Cherish failure
  • 47. (wildcard) stimulating intrapreneurship (discussion) - New migration pattern - do you have programs to to where ‘action’ is - young people move stimulate intrapreneurship? - 3 generations on with new ideas? how do you deal workfloor - how do you make sure all corporateenvironment - tailor made HR services/ work functions come up with new ideas?tension? New communication / learning - - longer working age - adapt work environment and conditions
  • 48. Agenda Meeting up & expectations Part 1: zooming in on megatrends • Introduction to megatrends and their importance in corporate strategy; • Overview of megatrends and their impact on companies and industries; • The future of organizations and its impact on HRM; • Specific trends affecting HRM Part 2: refine your strategy with megatrends • Megatrends exercise step-by-step • (Ideas for brainstorming sessions) • (Ways to draw conclusions for corporate strategy)
  • 49. here’s a simple process to assess the impact of megatrends on your company: #1 identify Mega trends Megatrends to discuss #2 discuss Megatrends internally #3draw conclusions and recommendations #4 Communicate results internally and externally
  • 50. but the devil is in the detail…
  • 51. here’s a simple process to assess the impact of megatrends on your company: #1 identify Mega trends Megatrends to discuss #2 discuss Megatrends internally #3draw conclusions and recommendations #4 Communicate results internally and externally
  • 52. Identification of Megatrends • Invite employees to submit • Internal survey • Brainstorming • External consultants • External individuals – Linked in – Crowdsourcing • Research
  • 53. Research option: Researching External experts’ assessment of megatrends Ernst & Young NL CSIRO Compenhagen Institute Geert Noels -author of IBM McKinsey Richard Watson LinkedIn megatrends for Future Studies 'Econoshocks' Cultural / multiethnic More from less Ageing population Demography Globalization The great rebalancing Ageing Population technology society will lead to (resources) (power shift) conflict Ageing population Personalisation of Globalization Shift to East demographics The productivity Powershift East sustainability product and services imperative Scarcety of natural Divergent demographics Technological New economy / tech Technological progress The Global Grid Global Connectiviy (> consumer power resources between rich and poor + development (connectedness) fear) impact on health Individualization More people on the Prosperity End of fossile fuels Omni consumer (more Pricing the planet (green) GRIN Technology shift to East move (mobility - job & informed and geographical) empowered) Climate iWorld (digital & natural Individualization New capitalism corporate social The Market State (govts Environment demography convergence) responsibility vs globalization) Islam grows, Christianity Commercialization Green economy political uncertainty meaning fades More wealthy countries Health & environment scarcity of resources Technology impacts more Acceleration increasing complexity parts of daily life Global transport will ever Network organizing increase (network-centricity) Urbanization
  • 54. Analyzing 338 responses to a LinkedIn question about Megatrends (Question asked by Andreas von der Heydt, director at L’Oréal) 26.8% technology (collaboration, increased efficiency, cloud/virtualization, brainstorming (social media), smart cities3D, nanotechs, mobile, augmented reality, new user interfaces, do it yourself, SaaS 13.7% sustainability, corporate responsibility, green tech 12.5% consumer power (24/7, consumerism, meaning, less is more, buy local, customization, online retail, transparancy 10.1% shift to East (innovation outside of US, decline of West, rising middle class, decline of Dollar 9.5% demography 4.8% meaning (return of ideology, increasing empathy 4.8% scarcity of resources (water 4.8% increasing complexity 3.0% online learning, for-profit universities 1.8% cost cutting 1.8% risk aversion 1.8% simplicity 1.8% Innovation, entrepreneurship 1.2% gov 2.0 0.6% insourcing 0.6% simplexity 0.6% Wealth/poverty
  • 55. External experts’ assessment of megatrends – group in themes Ernst & Young NL CSIRO Compenhagen Institute Geert Noels -author of IBM McKinsey Richard Watson - author LinkedIn megatrends for Future Studies 'Econoshocks' of 'Future Files' Cultural / multiethnic More from less Ageing population Demography Globalization The great rebalancing Ageing Population technology society will lead to (resources) (power shift) conflict Ageing population Personalisation of Globalization Shift to East demographics The productivity Powershift East sustainability product and services imperative Scarcety of natural Divergent demographics Technological New economy / tech Technological progress The Global Grid Global Connectiviy (> consumer power resources between rich and poor + development (connectedness) fear) impact on health Individualization More people on the Prosperity End of fossile fuels Omni consumer (more Pricing the planet (green) GRIN Technology shift to East move (mobility - job & informed and geographical) empowered) Climate iWorld (digital & natural Individualization New capitalism corporate social The Market State (govts Environment demography convergence) responsibility vs globalization) Islam grows, Christianity Commercialization Green economy political uncertainty meaning fades More wealthy countries Health & environment scarcity of resources Technology impacts more Acceleration increasing complexity parts of daily life Global transport will ever Network organizing increase (network-centricity) Urbanization
  • 56. External experts’ assessment of megatrends - cleaned up major trends Demographics: Geopolitics: - Ageing Population - Globalization 3.0 - Global mobility - Global Grid - Generation Y - Rising power of Emerging - Urbanization - Rising middle class - Gap rich-poor - The Market State Consumer trends: -Responsible buying - Mass customization Environment: Technology: - Global warming -Pervasive Technology (IoT) - Scarcety of resources - Augmented reality - Energy dependency - Social Networks - Green technologies - GRIN Technologies - Radical Transparency - Tech customization TIP: These are not the only Megatrends... Keep an eye on megatrends constantly !
  • 57. …or select from the 46 used by i4fi… trends we can be trends that are taking shape but a tiny bit relatively certain of: future impact relatively uncertain: speculative: DEMOGRAPHIC TECHNOLOGY • aging population • ubiquitous computing • social Media • increasing world population • disintermediation • augmented Reality • genY/Milennials • crowdsourcing • 3D • urbanization/geographic mobility • social Media • enhanced humans • multi-ethnic society • SaaS, DIY • widening gap rich-poor • cloud Computing SUSTAINABILITY BUSINESS TRENDS • global warming • shared value (CSR) • decentralization • scarcity of resources • social Entrepreneurship • gamification • energy dependency • Cause marketing • virtualization • declining biodiversity • social Business • new business models • green technologies • open inno/sourcing CONSUMER GEOPOLITICS • mass customization • radical transparency • power shift to East • trade blocs and unions • social buying • globalization 3.0 • trade blocs and unions • the Market State • sustainable/ethical buying • rising middle class • the Market State • Virtual currencies SOCIETY • dematerialization • talent shortage (digitization) • boundary blurring • digital divide
  • 58. Make a selection, for instance with an internal survey Topic Trend Q1: Is this a NEW Q2: Is this trend Q3: Is this a +3 Q4: Is this trend trend ? disruptive? year trend? important for our company? Rate from 1-5 1 Demography Ageing population 2 Demography Growing mobility 3 Demography New migration 4 Demography Generation Y
  • 59. guidelines for selecting trends to assess in your company Mega trends • don’t select (solely) trends with an obvious impact on your industry or company… the most successful ideas for innovation will come from elsewhere; • get your ideas and selection from a combination of internal (survey) and external (consultants) input; • generate 50 ideas for megatrends, select 20 to discuss.
  • 60. here’s a simple process to assess the impact of megatrends on your company: #1 identify Megatrends to discuss #2 discuss Megatrends internally #3draw conclusions and recommendations #4 Communicate results internally and externally
  • 61. Discuss the impact of megatrends in small groups
  • 62. Think Tank discussions 22 megatrends, 5 Discussed in 5 Think Discussion points: themes Tanks Demographics: (+/- 25 participants) - Ageing Population - Global mobility - Generation Y - Urbanization - Gap rich-poor Subtrends Geopolitics: - Globalization 3.0 - Global Grid Consequences - Rising power of Emerging - Rising middle class - The Market State Drivers Inhibitors Environment: - Global warming Likeliness - Scarcety of resources Timeline - Energy dependency - Green technologies - Radical Transparency Impact on company Technology: -Pervasive Technology (IoT) Impact on - Augmented reality ecosystem - Social Networks - GRIN Technologies Antitrends? - Tech customization Consumer trends: -Responsible buying - Mass customization
  • 63. Tip 1: send previous briefing ‘fact sheets’ with thought- provoking questions...
  • 64. Tip 2: also discuss potential anti-trends, they might constitute specific opportunities CSIRO - MEGATRENDS Bridge8 - ANTITRENDS More from less Less from less Limited resources and increasing People adapt their needs to diminshing population will drive need for more resources efficiency in resource management A personal touch Reducing choice Drive for ever increasing personalisation People look for ways to simplify decision of services and goods taking Divergent demographics Growing global health OECD countries ageing and unhealthy, Global health improvement due to science developing nations boom breakthrough, improved fertility rate More people on the move Fullfillment Geographic and functional mobility, Young people will build diverse urbanization experience leading to single goal, technology will make location obsolete iWorld Opting out Digital and natural world get mixed. More people will chose to deconnect Internet of things
  • 65. Tip 3: use brainstorming techniques to open up the minds at the start of each megatrend discussion
  • 66. Tip 3-1: use business model canvas to open up the minds at the start of each megatrend discussion You can download the canvas for free on www.businessmodelgeneration.com/canvas
  • 67. Tip 3-2: use your own canvas to open up the minds at the start of each megatrend discussion Connect with corporate strategy Recruitment Training & Employee Retention Development Employee Loyalty & satisfaction Employee Performance Payroll/ Benefits Admin HR Partners
  • 68. guidelines for discussing trends in your company • Invite people with different background, functions and seniority • follow a discussion template (though don’t stick to it); • take notes during the discussion; • 5-6 persons per theme, 30-60 min. per trend; • also look at anti-trends; • keep it fun !
  • 69. here’s a simple process to assess the impact of megatrends on your company: #1 identify Megatrends to discuss #2 discuss Megatrends internally #3draw conclusions and recommendations #4 Communicate results internally and externally
  • 70. Trends segmentation according to timeline, to know which ones to act on... High 2 1 4 5 3 Impact on company 24 8 7 6 9 10 12 11 13 15 16 14 17 19 18 20 22 21 23 Low Already happening Recent/nacent Future Frederic De Meyer timeline
  • 71. Trends segmentation based on which action to take 1. Aware These are the trends that your company has no influence over and that won’t impact on your core activities. In essence, these are quite harmless, although it is a good idea to keep an eye on them manageble since they might influence the environment of your 2 1 customers, channels or partners. However, they do 4 5 3 not require any immediate action. Influence 24 8 7 Action 9 6 2. Monitor 10 The trends in this quadrant are potentially 12 11 dangerous. They have an impact on your core 13 activities but you have no influence over them. The 15 16 14 best you can do is follow them very closely, monitor 17 19 their breadth and impact in order to detect early 18 warning signals and have an action plan ready for 20 the event if these trends cross a certain threshold. 22 21 3. Influence These are trends that you can influence but that Aware Monitor only have an indirect impact on your business, determined through clients, employees or channels, for instance. They often constitute a good opportunity for your company to increase its relevancy over these stakeholders, increase loyalty, gain new customers or develop new services. context core 4. Action For the trends that impact your activities directly Frederic De Meyer and over which you have a certain level of influence, they require immediate action. They will very often create new competitors if you don’t react (think of peer-to-peer lending in the financial sector) or create new business models and innovative products and services. You need to assess these trends urgently and develop a way to respond to them quickly.
  • 72. ‘Heat maps’ very effective way to visualize threats for customers Heat maps can help you to: Weight Trend 1 Trend 2 Trend 3 Trend 4 Trend [...] (% T urno v e r) • uncover which customer segments, business lines, partners, etc are under threat (or opportunity) from Customer segment 1 -10 -6 -5 0 -3 60% specific trends • if you add their relative weight (in %) it can quickly Customer segment 2 2 8 0 2 0 20% show you how threatened your business is by the Customer segment 3 8 -2 3 -8 -3 10% situation at your customers Customer segment 4 -7 0 0 0 2 5% • lead to more meaningful (and purposeful) Customer segment [...] 7 6 2 1 10 5% conversations with customers F re de ric D e M e ye r •Refine your strategy based on impact analysis of megatrends…
  • 73. guidelines for drawing conclusions from the trends discussions • segment the trends so as to show which ones need action or a close monitoring • map the way megatrends impact your customer segments and stakeholders • This is not rocket science… you can do this based on (internal) survey
  • 74. here’s a simple process to assess the impact of megatrends on your company: #1 identify Megatrends to discuss #2 discuss Megatrends internally #3draw conclusions and recommendations #4 Communicate results internally and externally
  • 75. Maximizing impact of the Megatrend exercise Available to: Contains: Aim: Format: Megatrends document: every employee 'Fact sheets' prepared for discussions, Alignment of vision, buy-in for Doc + discuss with some high level outcome of decisions discussions Executive Briefing: top management Short document with key Influence decisions, ideas for business Doc + discuss opportunities and threats (not in other model innovation docs) Partner document: partners and channels Fact sheets of those trends that are Partner loyalty, joint business planning Doc + discuss impacting channels Packs per customer segment: vertical sales teams Fact sheets of those trends that are Customer intimacy, marketing & sales Doc + discuss impacting specific customers arguments Packs per product segment: productmanagers, Fact sheets of those trends that are Better market positioning, marketing, Doc + discuss business units, R&D impacting specific product or services sales messages High level summary: External world Your company's vision on Megatrends Feedback from people outside of Presentations industry, new ideas and insights Assessing the impact of Megatrends on your company frederic de meyer
  • 76. guidelines for communicating the conclusions of the megatrends exercise • Maximize the value of the insights for different audiences; • Select only the material and trends relevant to the specific audiences (don’t communicate everything to everyone); • Use these documents to explain specific strategic decisions
  • 77. long-term shifts do have a short term effect… prepare your business now!
  • 78. Useful documents and templates CD-ROM contains:  Full presentation deck in PPT;  40 megatrends fact sheets;  Brainstorming cue-cards;  Megatrend selection survey template;  Megatrend discussion template;  +20 reports on specific megatrends (publicly available)
  • 79. The future cannot be predicted …but it can be made ! (ancient African saying) www.i4fi.com www.fredericdemeyer.com additional questions: frederic@i4fi.com