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HOW TO PREPARE
TOGETHER TO THRIVE
IN THE AGE OF
ARTIFICIAL
INTELLIGENCE?
THE FUTURE OF WORK AND
THE AUGMENTED ENTERPRISE:
People Analytics Conference, 9 December 2022
Eszter Debreczeni
Partner – AI-Ready Organization and Culture
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
Love is in the AIHR...
Founder and CEO Partner – AI-
Ready
Organization and
Culture
Corporate HR Leader
2000 2017 2021
e s z t e r . d e b r e c z e n i @ e s t h r a . c o m
e s z t e r @ p h i . i n s t i t u t e
E s z t e r D e b r e c z e n i - L i n k e d I n
Budapest Munich
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
OUR STORY
166 cities from all
over the world
Berlin 3
Bucharest 3
Delhi 3
Los Angeles 3
Seattle 3
Mississauga 4
New York 4
Bangalore 5
Dallas 5
Norristown 5
Sydney 5
Toronto 7
Budapest 12
Who we are
What do we want
Where are we from
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
AGENDA
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
• Setting the stage
• Welcome to the Age of AI – The Era of Exponential Changes
WORK – WORKFORCE – WORKPLACE
ORGANIZATION - ENTERPRISE
• Connecting the dots - With embHRacing Responsible AI in the Augmented EnterprAIse
WHY important, HOW to do it well
Maturity matters
HR and AI intersections
Why NOW - The EU AI Act
• Let’s get ready!
SETTING THE STAGE
• The context, the examples come mostly from the medium/large enterprise perspective and have a major HR/People
function focus – plus having the AI_Ready organization as a North Star in mind
• There will be a People Analytics in start-ups session later at the conference
FROM TO
Why PA/AI are important How to do it well
Data-enabled AI-fueled
Tool(s) Impact
Inward View – Functional Excellence Both internal and external intelligence
Productivity - Innovation Competitiveness – Customer centricity -
Compliance
Survival modus Thrive – Learn from the best
Wait and see Prepare and drive
Today’s intention
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
WELCOME TO THE AGE OF AI
AI is proven has proven
itself for business
AI is the fuel of the
augmented enterprise
AI adoption revealed a
broad set of new risks
High reward-High Risk –High
Complexity
The state of AI in 2022--and a half decade in
review | McKinsey December 2006
us-ai-institute-state-of-ai-fifth-edition.pdf (deloitte.com) – 2022
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
THE ERA OF
EXPONENTIAL
CHANGES
WORK – WORKFORCE - WORKPLACE*
ORGANIZATION / ENTERPRISE
*Due to time constraints, we won’t go into details about the workplace, and hybrid-work
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
FUTURE THE NEW WAY OF WORK
Source: https://www.idc.com/promo/future-of-x/work
“Organizations are
waking up to value
focus”
“Are you working for work’s sake or
creating value?”
https://www.mckinsey.com/capabilities/people-and-
organizational-performance/our-insights/in-pursuit-of-value-
not-work
Oct 24, 2022
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
How will we redesign work to enable talent to
flow as seamlessly as possible while enabling
its perpetual reinvention?
How will we re-envision the talent
experience to meet talent where they are and
on their own terms?
How do we prepare leaders, workers, and HR
systems for this new world of perpetually
upgraded work, while continuing to build
sustainable employment practices?
REDESIGNING WORK FOR VALUE CREATION
https://www.mercer.com/our-thinking/career/work-design-4-0-and-what-we-can-expect-next.html
• Understand how digitalization and automation
will transform work
• Start with the work (current and future tasks),
not the existing jobs.
• Combine humans and automation.
• Consider the full array of human work
engagements (employment, gig, freelance,
alliances, projects or alternative work
arrangements).
• Allow talent to "flow to work” versus being
dedicated to fixed, permanent jobs.
“Redesigning work in your organization in a meaningful and sustainable way allows
you to navigate new ways of working with much more agility and efficiency.
1
2
3
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
WORK DESIGN - USE CASE
Source: https://www.imercer.com/Portals/0/uploads/Global/pdf/Mercer-Work-Design-Brochure.pdfesign
(imercer.com)
Deconstruct jobs
• Analyze the tasks and activities
that underpin jobs and workflows.
• Identify tasks that are best suited
for automation or redeployment to
alternative talent.
• Smart analysis shows how your
choices will impact work in your
organization
Redeploy tasks
• Determine which task delivery
can be enhanced through
automation or other means
including gig work, internal
talent marketplaces,
outsourcing, shared services
and more, and understand the
impact on your organization.
Reconstruct work
• Create new jobs and
workflows based on the
new work options.
• Discover the skills you
need for more efficient
and sustainable operation.
What type of automation?
• Robotic Process
Automation
• Cognitive automation
• Social robotics
What role will automation
play?
• Augment human work
• Transform human work
• Substitute human work
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
SHIFTING TO SKILL-BASED WORK DESIGN
Source: https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf
What do you believe is the best way to organize work to
create value for workers and the organization?
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
WORKFORCE – WHY SKILLS MATTER?
What benefits do
business and HR
executives hope to
see from a shift
from jobs to skills?
Source: https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
Data, People Analytics and AI are the cornerstones of modern
workforce planning
INTELLIGENT WORKFORCE PLANNING
Internal sources of
intelligence
• Business Strategy
Documents and Plans
• Business Leaders
• Recruiting/Sourcing
Team (Including
Candidate Surveys or
Focus Groups)
• Learning and
Development – Skills
• HRIS Data
• Marketing insights
• Finance Data
• Employee (Survey, Focus
Group)
• Government data
• Available public or applied
research
• Advisory companies
• Labor market data providers.
External sources of
intelligence
Source: Gartner for HR Sources of
Workforce Planning Intelligence
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
„Organizations are increasingly placing skills, rather than jobs,
at the center of the way work gets done”
According to a global Deloitte survey of more than 1,200 professionals (1,021 workers and 225 business and
HR executives around the world – Released in 2022
WORKFORCE – SKILL-BASED APPROACH
https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf
Technical abilities
(or hard skills)
Human capabilities
(such as emotional
intelligence)
Potential
(including latent
qualities, abilities)
Adjacent skills
may be developed
and lead to future
success)
Indeed, we see the word coming to encapsulate what makes workers unique
individuals with an array of skills, interests, passions, motivations, work or cultural
styles, location preferences and needs, and more...
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
AREA FROM TO USE CASES
Deploying
skills to work
Role-based vertical
and horizontal
moves based on
the job experience
Using AI to match skills to
work and teams—inside or
outside of the organization
• Mastercard: matching employees to high-priority
tasks anywhere in the org. After manually matching
in 2020: scale up the initiative by implementing an
AI-powered talent marketplace.
• IBM: uses AI to suggest optimal sales teams based
on skills and other attributes of people, predicting
win probability based on team formation.
Performance
management
Recognizing and
promoting people
based on job
performance
Recognizing and promoting
people based on skills
development and weaving it
into performance discussions
• Tenable Cybersecurity firm: usng AI tools to analyze
videos and score sales representatives on
personality, coverage of key topics, and more;
managers can harness the data for coaching and
performance development.
Career and
Development
Job-based
vertical/horizontal
moves based on
job experience and
learning assigned
or suggested
based on one’s job
and career path
AI-powered suggestions of
career paths+opps anywhere
in the org based on skills,
adjacent skills, interests,
potential, personalized
learning, development,
reskilling opportunities
suggested based on skills
and skill gaps
• French insurance financial services firm: they
developed a virtual career assistant that uses AI to
mine employees’ skills and interests to determine
their most suitable jobs—and where training could
help them pursue new opportunities.
SKILL-BASED SHIFTS – USE CASES
Source: https://www.deloitte.com/content/dam/assets-
shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf
Find additional use cases in the Appendix
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
• Dolbysorround (high purpose-
high human – high tech)
decisions
• Ecosystems way of thinking
• „Boundariless“ - opportunities
and challenges
• Network Mindset
• Shifting focus – formal,
informal, value-adding reality
THE FUTURE (PRO)OF ORGANIZATION
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
CONNECTING
THE DOTS
With embHRacing
Responsible AI in the
Augmented EnterprAIse
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
RAI became a fundamental competitiveness cornerstone and a
conscious strategic advantage chosen by global winners.
It is proven to boost directly
WHY RESPONSIBLE AI
94% of C-Suite
executives agree
now that doing AI
responsibly will
produce greater ROI
for shareholders.
• revenue
• product quality
• talent attraction
and retention
• customer
satisfaction
• brand reputation
• and trust
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
We define Responsible AI as a cutting-edge repertoire of
• Mindsets
• Capabilities
• Frameworks
• Principles
• Policies
• Toolsets
• Processes
to ensure that AI systems are developed and operated responsibly to
achieve transformative business impact while maximizing benefits and
minimizing risk and harm for the
enterprise, society, and planet.
WHAT IS RESPONSIBLE AI
These are all beyond technology and
have a great extent of
Organization-Culture–People
relevance
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
Responsible AI (RAI) means an AI adoption strategy that is
built with all business
opportunities in mind that
can enable a leap forward
from “the proof-of-
concept limbo” to
seamless, continuous
execution
designed to elevate
internal resources to
build long-term
capabilities while
harvesting low-hanging
fruits
minted and executed with the
thoughtful choice of long-term
protection against potential
governance, compliance, and
ethical landmines, risks,
backlashes, and losses.
HOW TO DO RESPONSIBLE AI WELL
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
START WHERE YOU ARE – AS ORGANIZATION/1
Digitization
Digitalization
Digital
Transformation
Artificial
Intelligence
The digital transformation continuum
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
AI MATURITY PERSPECTIVES
The Art of AI Maturity | Accenture - Research 2021
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
START WHERE YOU ARE – AS ORGANIZATION/2
The 8 dimensions of growth
Transforming the organization to unlock the potential in AI
requires a balanced approach: technological and
organizational dimensions are equally important.
The 6 stages fulfilling the potential of AI
The 6 stages help to set the perspectives of the way forward in both
AI-related and organizational growth potential.
PHI Institute’s AI-maturity Model
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
THE OTHER SIDE OF THE COIN
“For every 1 dollar spent on
technology, there are another
9 to 10 dollars needed in
organizational design and
employee training”​
Erik Brynjolfsson
Stanford Digital Economy Lab Director
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
START WHERE YOU ARE - AS PA TEAM
https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/how-to-be-great-at-people-analytics
The best people analytics teams may take one step back for every
two steps up, but their trajectories are always upward.
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
„Asking the right questions
and getting the right frame
can – before you get more
advanced forms of analytics
on it –bring a fact-based and
broader lens to make sure
we’re having the right
conversation.”
Bryan Hancock
Partner at McKinsey and Company
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
THE OUTPUT/CAPACITY TRANSFORMATION
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
HR AND AI - INTERSECTIONS FOR IMPACT
HR AND NEW WORK READINESS
Reinventing the
HR/People function and
the Way of Working
• AI solutions in the HR
Function (beyond
Data-driven HR)
• AI solutions in Digital
Workplace, Employee
Experience New Work
How can I augment my
HR Function and how do I
apply AI in the world of
work?
KEY QUESTION:
TALENT READINESS
Individual and
organizational capability
– skill based
• AI Talent and AI(age)
ready talent) – hiring,
developing, retaining
• Re-skilling, Upskilling
How do I develop long-
term organizational
capabilities, that enable
us to succeed in the Age
of AI?
ORGANIZATIONAL READINESS
Augmented Organizational
Intelligence, futureproof org design
and unleashing the value-creation
of running AI- adoption initiatives
• AI Readiness
• AI-Ready organization and
culture/mindset
• Thoughtful. AI-enabled
organizational design
(automation/augmentation)
How to extend our collective
intelligence, build thoughtfully
futureproof organizations, and
maximize the success of AI
adoptions?
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
ROI AND THE TALENT BEST PRACTICES
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
The EU AI Act will have
significant implications for
companies wishing to use
AI in their HR work.
The goal is to enforce the
legally compliant (non-
discriminatory) use of AI
WHY NOW? CALL TO ACTION: THE EU AI ACT
Unacceptable Risk
High Risk
Limited Risk
Minimal Risk
Prohibited
Permitted subject to
compliance with AI
requirements and ex-ante
conformity assessment
Permitted but subject to
information/transparency
obligations
Permitted with no
restriction
The Act | The
Artificial
Intelligence Act
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
MAJOR HR AI APPLICATIONS ARE HIGH RISK!!!!
Unacceptable
Risk
High Risk
Limited Risk
Minimal Risk
Prohibited
Permitted subject to compliance
with AI requirements and ex-ante
conformity assessment
Permitted but subject to
information/transparency
obligations
Permitted with no restriction
AI for
• recruitment or selection of
natural persons
• making decisions on
promotion and termination
of work-related contractual
relationships
• task allocation
• monitoring and evaluating
the performance and
behavior of persons
are classified as high risk, as
these systems can have a
tangible impact on the future
career prospects and
livelihoods of these individuals.
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
Dr. Anne Förster
Salary Partner
Taylor Wessing Düsseldorf
„Given the broad definition of AI in the AI Act, which
covers all types of algorithmic decision-making and
recommendation systems, a large number of HR
systems already in use today are likely to fall within
the scope of the AI Act.
There is hardly a company left that does not use at
least “simple” algorithmic decision-making systems in
the HR area, such as optimizing job advertisements or
analyzing CVs. Therefore, providers and users are well
advised - as a lesson learned from the GDPR reform-
to carry out a compliance check regarding the HR
systems used and their conformity with the AI Act at
an early stage.”
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
Augmented
Organizational
Intelligence
SUMMARY: AUGMENT YOUR FIELD OF PLAY
Actionable
Objective
Insights
A conscious choice of using AI adoption as a capability
and cultural "test" for designing futureproof
organizations
via making better business and people decisions
Creating real value and impact
• in the "rhythm" of your technology and
org/culture readiness
• in the context of how much we aligned it with
the purpose and strategy
People Analytics Organisational Design
Responsible AI – from Day 1
Beyond compliance with the EU AI Act
PHI Institute for Augmented Intelligence – 2022 – All rights reserved
GET READY:
RECOMMENDED RESSOURCES
https://www.weforum.or
g/reports/empowering-
ai-leadership-ai-c-suite-
toolkit
https://betterimagesofai.org/
https://course.elementsofai.com
/
Member of Advisory Board
https://swisscognitive.ch/
https://www.gobeyond-
project.com/
https://www.nemesventures.com
https://www.weforum.org/reports/hu
man-centred-ai-for-hr-state-of-play-
and-the-path-ahead/toolkit
George A. Tilesch was a major
contributor to the toolkit
Written by George A. Tilesch
President of PHI Institute for
Augmented Intelligence - with Omar
Hatamleh
THANK YOU!
eszter@phi.institute
LinkedIn - Eszter Debreczeni
EXCAITED FOR MORE...
Contact us:
PHI Institute –
For Augmented
Intelligence
APPENDIX
AREA FROM TO USE CASES
Workforce
Planning
Annual
planning for
headcount in
jobs
Continuous skills-force
planning is based on
more granularly
predicting what skills
and work will be
needed in the future to
determine where to
build, borrow, buy, or
bot.
• Providence Healthcare: Facing a nursing shortage,
identified nurses’ particular skills, looked throughout the
org for people with the skills to perform any of those tasks,
asked those employees to obtain/renew—nursing
licenses,to becoming eligible to add some nursing work to
their core job.
• Global consumer products company: looking to help their
supply chain partners forecast skills in support of securing
and optimizing the future workforce. As the Great
Resignation continues, their supply chain partners’ ability
to have a workforce with the right skills is critical to the
company.
Hiring Hiring based on
job experience
and education
Hiring based on
verified skills and
adjacent skills more
than job experience
and degrees
• IBM: response to the global scarcity of skilled tech workers
by opening fully half of its positions to people with the right
skills, notwithstanding degrees or job experience; the
company dubs this type of job “new collar.”
SKILL-BASED SHIFTS
AREA FROM TO USE CASES
Job architecture Detailed lists of static
jobs based on
competencies,
hierarchical levels, and
careers
Flexible work and skills
architecture based on a simplified
set of fewer and broader roles,
and levels based on types of work
and skills
• Global educational provider: To create
greater agility/more fluid work, they
structured its job architecture with only
3 distinct layers, identifying and
categorizing broad types of work and
talent segments into like groups. In
defining these: the org took a skills- and-
capability-first approach to develop a X-
functional and discipline-agnostic
understanding of its workforce.
Rewards and
Recognition
Rewards based on
jobs, level, and
performance, with
annual adjustments
Skills-based pay and rewards with
frequent adjustments as skill and
work needs evolve
• IBM : AI-based system CogniPay to make
pay decisions based on market demand,
internal forecasts, attrition data for a
skill or cluster of skills.
• Global insurer: central pool of data
scientists/flexibly deployed, supported
by an internal talent marketplace with AI
translating the work activities into skills
required to perform the work, plus
adjacent skills, interest, and capacity.
SKILL-BASED SHIFTS

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Eszter Debreczeni: The Future of Work and the Augmented Enterprise: How to prepare together to thrive in the age of Artificial Intelligence?

  • 1. HOW TO PREPARE TOGETHER TO THRIVE IN THE AGE OF ARTIFICIAL INTELLIGENCE? THE FUTURE OF WORK AND THE AUGMENTED ENTERPRISE: People Analytics Conference, 9 December 2022 Eszter Debreczeni Partner – AI-Ready Organization and Culture PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 2. Love is in the AIHR... Founder and CEO Partner – AI- Ready Organization and Culture Corporate HR Leader 2000 2017 2021 e s z t e r . d e b r e c z e n i @ e s t h r a . c o m e s z t e r @ p h i . i n s t i t u t e E s z t e r D e b r e c z e n i - L i n k e d I n Budapest Munich PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 3. OUR STORY 166 cities from all over the world Berlin 3 Bucharest 3 Delhi 3 Los Angeles 3 Seattle 3 Mississauga 4 New York 4 Bangalore 5 Dallas 5 Norristown 5 Sydney 5 Toronto 7 Budapest 12 Who we are What do we want Where are we from PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 4. AGENDA PHI Institute for Augmented Intelligence – 2022 – All rights reserved • Setting the stage • Welcome to the Age of AI – The Era of Exponential Changes WORK – WORKFORCE – WORKPLACE ORGANIZATION - ENTERPRISE • Connecting the dots - With embHRacing Responsible AI in the Augmented EnterprAIse WHY important, HOW to do it well Maturity matters HR and AI intersections Why NOW - The EU AI Act • Let’s get ready!
  • 5. SETTING THE STAGE • The context, the examples come mostly from the medium/large enterprise perspective and have a major HR/People function focus – plus having the AI_Ready organization as a North Star in mind • There will be a People Analytics in start-ups session later at the conference FROM TO Why PA/AI are important How to do it well Data-enabled AI-fueled Tool(s) Impact Inward View – Functional Excellence Both internal and external intelligence Productivity - Innovation Competitiveness – Customer centricity - Compliance Survival modus Thrive – Learn from the best Wait and see Prepare and drive Today’s intention PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 6. WELCOME TO THE AGE OF AI AI is proven has proven itself for business AI is the fuel of the augmented enterprise AI adoption revealed a broad set of new risks High reward-High Risk –High Complexity The state of AI in 2022--and a half decade in review | McKinsey December 2006 us-ai-institute-state-of-ai-fifth-edition.pdf (deloitte.com) – 2022 PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 7. THE ERA OF EXPONENTIAL CHANGES WORK – WORKFORCE - WORKPLACE* ORGANIZATION / ENTERPRISE *Due to time constraints, we won’t go into details about the workplace, and hybrid-work PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 8. FUTURE THE NEW WAY OF WORK Source: https://www.idc.com/promo/future-of-x/work “Organizations are waking up to value focus” “Are you working for work’s sake or creating value?” https://www.mckinsey.com/capabilities/people-and- organizational-performance/our-insights/in-pursuit-of-value- not-work Oct 24, 2022 PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 9. How will we redesign work to enable talent to flow as seamlessly as possible while enabling its perpetual reinvention? How will we re-envision the talent experience to meet talent where they are and on their own terms? How do we prepare leaders, workers, and HR systems for this new world of perpetually upgraded work, while continuing to build sustainable employment practices? REDESIGNING WORK FOR VALUE CREATION https://www.mercer.com/our-thinking/career/work-design-4-0-and-what-we-can-expect-next.html • Understand how digitalization and automation will transform work • Start with the work (current and future tasks), not the existing jobs. • Combine humans and automation. • Consider the full array of human work engagements (employment, gig, freelance, alliances, projects or alternative work arrangements). • Allow talent to "flow to work” versus being dedicated to fixed, permanent jobs. “Redesigning work in your organization in a meaningful and sustainable way allows you to navigate new ways of working with much more agility and efficiency. 1 2 3 PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 10. WORK DESIGN - USE CASE Source: https://www.imercer.com/Portals/0/uploads/Global/pdf/Mercer-Work-Design-Brochure.pdfesign (imercer.com) Deconstruct jobs • Analyze the tasks and activities that underpin jobs and workflows. • Identify tasks that are best suited for automation or redeployment to alternative talent. • Smart analysis shows how your choices will impact work in your organization Redeploy tasks • Determine which task delivery can be enhanced through automation or other means including gig work, internal talent marketplaces, outsourcing, shared services and more, and understand the impact on your organization. Reconstruct work • Create new jobs and workflows based on the new work options. • Discover the skills you need for more efficient and sustainable operation. What type of automation? • Robotic Process Automation • Cognitive automation • Social robotics What role will automation play? • Augment human work • Transform human work • Substitute human work PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 11. SHIFTING TO SKILL-BASED WORK DESIGN Source: https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf What do you believe is the best way to organize work to create value for workers and the organization? PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 12. WORKFORCE – WHY SKILLS MATTER? What benefits do business and HR executives hope to see from a shift from jobs to skills? Source: https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 13. Data, People Analytics and AI are the cornerstones of modern workforce planning INTELLIGENT WORKFORCE PLANNING Internal sources of intelligence • Business Strategy Documents and Plans • Business Leaders • Recruiting/Sourcing Team (Including Candidate Surveys or Focus Groups) • Learning and Development – Skills • HRIS Data • Marketing insights • Finance Data • Employee (Survey, Focus Group) • Government data • Available public or applied research • Advisory companies • Labor market data providers. External sources of intelligence Source: Gartner for HR Sources of Workforce Planning Intelligence PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 14. „Organizations are increasingly placing skills, rather than jobs, at the center of the way work gets done” According to a global Deloitte survey of more than 1,200 professionals (1,021 workers and 225 business and HR executives around the world – Released in 2022 WORKFORCE – SKILL-BASED APPROACH https://www.deloitte.com/content/dam/assets-shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf Technical abilities (or hard skills) Human capabilities (such as emotional intelligence) Potential (including latent qualities, abilities) Adjacent skills may be developed and lead to future success) Indeed, we see the word coming to encapsulate what makes workers unique individuals with an array of skills, interests, passions, motivations, work or cultural styles, location preferences and needs, and more... PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 15. AREA FROM TO USE CASES Deploying skills to work Role-based vertical and horizontal moves based on the job experience Using AI to match skills to work and teams—inside or outside of the organization • Mastercard: matching employees to high-priority tasks anywhere in the org. After manually matching in 2020: scale up the initiative by implementing an AI-powered talent marketplace. • IBM: uses AI to suggest optimal sales teams based on skills and other attributes of people, predicting win probability based on team formation. Performance management Recognizing and promoting people based on job performance Recognizing and promoting people based on skills development and weaving it into performance discussions • Tenable Cybersecurity firm: usng AI tools to analyze videos and score sales representatives on personality, coverage of key topics, and more; managers can harness the data for coaching and performance development. Career and Development Job-based vertical/horizontal moves based on job experience and learning assigned or suggested based on one’s job and career path AI-powered suggestions of career paths+opps anywhere in the org based on skills, adjacent skills, interests, potential, personalized learning, development, reskilling opportunities suggested based on skills and skill gaps • French insurance financial services firm: they developed a virtual career assistant that uses AI to mine employees’ skills and interests to determine their most suitable jobs—and where training could help them pursue new opportunities. SKILL-BASED SHIFTS – USE CASES Source: https://www.deloitte.com/content/dam/assets- shared/legacy/docs/Deloitte-Skills-Based-Organization.pdf Find additional use cases in the Appendix PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 16. • Dolbysorround (high purpose- high human – high tech) decisions • Ecosystems way of thinking • „Boundariless“ - opportunities and challenges • Network Mindset • Shifting focus – formal, informal, value-adding reality THE FUTURE (PRO)OF ORGANIZATION PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 17. CONNECTING THE DOTS With embHRacing Responsible AI in the Augmented EnterprAIse PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 18. RAI became a fundamental competitiveness cornerstone and a conscious strategic advantage chosen by global winners. It is proven to boost directly WHY RESPONSIBLE AI 94% of C-Suite executives agree now that doing AI responsibly will produce greater ROI for shareholders. • revenue • product quality • talent attraction and retention • customer satisfaction • brand reputation • and trust PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 19. We define Responsible AI as a cutting-edge repertoire of • Mindsets • Capabilities • Frameworks • Principles • Policies • Toolsets • Processes to ensure that AI systems are developed and operated responsibly to achieve transformative business impact while maximizing benefits and minimizing risk and harm for the enterprise, society, and planet. WHAT IS RESPONSIBLE AI These are all beyond technology and have a great extent of Organization-Culture–People relevance PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 20. Responsible AI (RAI) means an AI adoption strategy that is built with all business opportunities in mind that can enable a leap forward from “the proof-of- concept limbo” to seamless, continuous execution designed to elevate internal resources to build long-term capabilities while harvesting low-hanging fruits minted and executed with the thoughtful choice of long-term protection against potential governance, compliance, and ethical landmines, risks, backlashes, and losses. HOW TO DO RESPONSIBLE AI WELL PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 21. START WHERE YOU ARE – AS ORGANIZATION/1 Digitization Digitalization Digital Transformation Artificial Intelligence The digital transformation continuum PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 22. AI MATURITY PERSPECTIVES The Art of AI Maturity | Accenture - Research 2021 PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 23. START WHERE YOU ARE – AS ORGANIZATION/2 The 8 dimensions of growth Transforming the organization to unlock the potential in AI requires a balanced approach: technological and organizational dimensions are equally important. The 6 stages fulfilling the potential of AI The 6 stages help to set the perspectives of the way forward in both AI-related and organizational growth potential. PHI Institute’s AI-maturity Model PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 24. THE OTHER SIDE OF THE COIN “For every 1 dollar spent on technology, there are another 9 to 10 dollars needed in organizational design and employee training”​ Erik Brynjolfsson Stanford Digital Economy Lab Director PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 25. START WHERE YOU ARE - AS PA TEAM https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/how-to-be-great-at-people-analytics The best people analytics teams may take one step back for every two steps up, but their trajectories are always upward. PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 26. „Asking the right questions and getting the right frame can – before you get more advanced forms of analytics on it –bring a fact-based and broader lens to make sure we’re having the right conversation.” Bryan Hancock Partner at McKinsey and Company PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 27. THE OUTPUT/CAPACITY TRANSFORMATION PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 28. HR AND AI - INTERSECTIONS FOR IMPACT HR AND NEW WORK READINESS Reinventing the HR/People function and the Way of Working • AI solutions in the HR Function (beyond Data-driven HR) • AI solutions in Digital Workplace, Employee Experience New Work How can I augment my HR Function and how do I apply AI in the world of work? KEY QUESTION: TALENT READINESS Individual and organizational capability – skill based • AI Talent and AI(age) ready talent) – hiring, developing, retaining • Re-skilling, Upskilling How do I develop long- term organizational capabilities, that enable us to succeed in the Age of AI? ORGANIZATIONAL READINESS Augmented Organizational Intelligence, futureproof org design and unleashing the value-creation of running AI- adoption initiatives • AI Readiness • AI-Ready organization and culture/mindset • Thoughtful. AI-enabled organizational design (automation/augmentation) How to extend our collective intelligence, build thoughtfully futureproof organizations, and maximize the success of AI adoptions? PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 29. ROI AND THE TALENT BEST PRACTICES PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 30. The EU AI Act will have significant implications for companies wishing to use AI in their HR work. The goal is to enforce the legally compliant (non- discriminatory) use of AI WHY NOW? CALL TO ACTION: THE EU AI ACT Unacceptable Risk High Risk Limited Risk Minimal Risk Prohibited Permitted subject to compliance with AI requirements and ex-ante conformity assessment Permitted but subject to information/transparency obligations Permitted with no restriction The Act | The Artificial Intelligence Act PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 31. MAJOR HR AI APPLICATIONS ARE HIGH RISK!!!! Unacceptable Risk High Risk Limited Risk Minimal Risk Prohibited Permitted subject to compliance with AI requirements and ex-ante conformity assessment Permitted but subject to information/transparency obligations Permitted with no restriction AI for • recruitment or selection of natural persons • making decisions on promotion and termination of work-related contractual relationships • task allocation • monitoring and evaluating the performance and behavior of persons are classified as high risk, as these systems can have a tangible impact on the future career prospects and livelihoods of these individuals. PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 32. Dr. Anne Förster Salary Partner Taylor Wessing Düsseldorf „Given the broad definition of AI in the AI Act, which covers all types of algorithmic decision-making and recommendation systems, a large number of HR systems already in use today are likely to fall within the scope of the AI Act. There is hardly a company left that does not use at least “simple” algorithmic decision-making systems in the HR area, such as optimizing job advertisements or analyzing CVs. Therefore, providers and users are well advised - as a lesson learned from the GDPR reform- to carry out a compliance check regarding the HR systems used and their conformity with the AI Act at an early stage.” PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 33. Augmented Organizational Intelligence SUMMARY: AUGMENT YOUR FIELD OF PLAY Actionable Objective Insights A conscious choice of using AI adoption as a capability and cultural "test" for designing futureproof organizations via making better business and people decisions Creating real value and impact • in the "rhythm" of your technology and org/culture readiness • in the context of how much we aligned it with the purpose and strategy People Analytics Organisational Design Responsible AI – from Day 1 Beyond compliance with the EU AI Act PHI Institute for Augmented Intelligence – 2022 – All rights reserved
  • 34. GET READY: RECOMMENDED RESSOURCES https://www.weforum.or g/reports/empowering- ai-leadership-ai-c-suite- toolkit https://betterimagesofai.org/ https://course.elementsofai.com / Member of Advisory Board https://swisscognitive.ch/ https://www.gobeyond- project.com/ https://www.nemesventures.com https://www.weforum.org/reports/hu man-centred-ai-for-hr-state-of-play- and-the-path-ahead/toolkit George A. Tilesch was a major contributor to the toolkit Written by George A. Tilesch President of PHI Institute for Augmented Intelligence - with Omar Hatamleh
  • 35. THANK YOU! eszter@phi.institute LinkedIn - Eszter Debreczeni EXCAITED FOR MORE... Contact us: PHI Institute – For Augmented Intelligence
  • 37. AREA FROM TO USE CASES Workforce Planning Annual planning for headcount in jobs Continuous skills-force planning is based on more granularly predicting what skills and work will be needed in the future to determine where to build, borrow, buy, or bot. • Providence Healthcare: Facing a nursing shortage, identified nurses’ particular skills, looked throughout the org for people with the skills to perform any of those tasks, asked those employees to obtain/renew—nursing licenses,to becoming eligible to add some nursing work to their core job. • Global consumer products company: looking to help their supply chain partners forecast skills in support of securing and optimizing the future workforce. As the Great Resignation continues, their supply chain partners’ ability to have a workforce with the right skills is critical to the company. Hiring Hiring based on job experience and education Hiring based on verified skills and adjacent skills more than job experience and degrees • IBM: response to the global scarcity of skilled tech workers by opening fully half of its positions to people with the right skills, notwithstanding degrees or job experience; the company dubs this type of job “new collar.” SKILL-BASED SHIFTS
  • 38. AREA FROM TO USE CASES Job architecture Detailed lists of static jobs based on competencies, hierarchical levels, and careers Flexible work and skills architecture based on a simplified set of fewer and broader roles, and levels based on types of work and skills • Global educational provider: To create greater agility/more fluid work, they structured its job architecture with only 3 distinct layers, identifying and categorizing broad types of work and talent segments into like groups. In defining these: the org took a skills- and- capability-first approach to develop a X- functional and discipline-agnostic understanding of its workforce. Rewards and Recognition Rewards based on jobs, level, and performance, with annual adjustments Skills-based pay and rewards with frequent adjustments as skill and work needs evolve • IBM : AI-based system CogniPay to make pay decisions based on market demand, internal forecasts, attrition data for a skill or cluster of skills. • Global insurer: central pool of data scientists/flexibly deployed, supported by an internal talent marketplace with AI translating the work activities into skills required to perform the work, plus adjacent skills, interest, and capacity. SKILL-BASED SHIFTS