The document discusses forces disrupting organizations today including demographic shifts, the ubiquity of digital technology, an accelerated rate of change, and evolving expectations of younger workers. It notes that 90% of organizations anticipate significant disruption from digital trends. Several statistics are presented about the overwhelmed modern employee including long work hours, constant connectivity via mobile devices, and the difficulty achieving work-life balance. The document advocates for organizational design centered around networks of teams rather than hierarchies and highlights trends in the importance of various human capital priorities to businesses.

1. Josh Bersin
Principal, Founder!
Bersin by Deloitte

2. Forces Disrupting Organizations Today
Demographic
upheavals:
Millennials make up
more than half the
workforce, and Boomers
are working into their
70s and 80s.
Digital technology
is everywhere:
Technology is disrupting
business models and
radically changing the
workplace and how
work is done.
Rate of change
has accelerated:
Business must become
more agile to keep
up with the rapid pace
of change.
New social contract
between companies
and workers:
Younger workers demand
rapid career growth,
compelling and flexible
workplace, and a sense
of purpose at work.

3. 90% of organizations surveyed by MIT and Deloitte
anticipate their industries will be greatly disrupted
by digital trends.

4. Sources: Deloitte Human Capital Trends 2014 and 2015
The “average” US worker now
spends 25% of their day reading
or answering emails.
Fewer than 16% of companies have
a program to “simplify work” or help
employees deal with stress.
More than 80% of all companies
rate their business “highly complex”
or “complex” for employees.
The average mobile phone user
checks their device 150 times a day.
60% check it each hour.
The “average” US worker works
47 hours and 49% work 50 hours or
more per week, with 20% at
60+ hours per week.
40% of the US population believes it
is impossible to succeed at work and
have a balanced family life.
The Overwhelmed Employee

5. 1 billion
smartphones
i-Phone
launched
100 million
Twitter users
Since 2011 productivity gains have slowed
to crawl
Not improving: productivity
decreased 0.4 percent from Q2
2015 to Q2 2016
http://www.bls.gov/opub/ted/2016/productivity-
decreased-0-point-4-percent-from-q2-2015-to-
q2-2016.htm
Productivity is Suffering — is Technology Helping?"
U.S. Productivity Last Ten Years

6. Organizational design
Leadership
Culture
Engagement
Learning
Design thinking
Skills of HR organization
People analytics
Digital HR
Workforce management
92%
89%
86%
85%
77%
74%
71%
84%
79%
78%
% very important
2016
56%
57%
54%
48%
44%
39%
36%
36%
32%
28%
% very important
2015
…
50%
50%
39%
…
39%
29%
…
…
Signs of the Digital Organization:
Importance of Human Capital Trends to Business

7. Average
3.2
What are these
companies doing?
MIT Study:
Among companies in the early stages of digital
development, more than 50% of employees say they
are planning to leave their organizations in less than
three years and over 20% in one year.
At digitally maturing companies, only 25% of
employees expect to leave in the next three years,
and only 4% have plans to leave within a year
Glassdoor Ratings of Employer Recommendations — 200,000+ Respondents
Engagement is Critical to Success
in Digital Organization

8. Workplace Culture is Hot!
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
9/1/2008
11/1/2008
1/1/2009
3/1/2009
5/1/2009
7/1/2009
9/1/2009
11/1/2009
1/1/2010
3/1/2010
5/1/2010
7/1/2010
9/1/2010
11/1/2010
1/1/2011
3/1/2011
5/1/2011
7/1/2011
9/1/2011
11/1/2011
1/1/2012
3/1/2012
5/1/2012
7/1/2012
9/1/2012
11/1/2012
1/1/2013
3/1/2013
5/1/2013
7/1/2013
9/1/2013
11/1/2013
1/1/2014
3/1/2014
5/1/2014
7/1/2014
9/1/2014
11/1/2014
1/1/2015
3/1/2015
5/1/2015
7/1/2015
9/1/2015
11/1/2015
1/1/2016
US Workplace Culture
Growth in Google Trends, since 2008 Recession

9. Shared values and culture
Transparent goals and
projects
Free flow of information
and feedback
People rewarded for
their skills and abilities,
not position
B
A
DCF
A
C D E
B
G
How things were How things “are” How things work
E
Organizational Design
A Network of Teams

10. Historic Perspective on Performance and Management"
Management Thinking: Empowerment
We are Here
The Industrial
Corpora4on
Hierarchical
Leadership
Collabora4ve
Management
Networks
of Teams
<1950s 1960s-80s Today 1990s
Andrew Carnegie
Henry Ford
NeKlix, Google,
Facebook, Amazon
Jack Welch
Peter Drucker
Howard Schulz
Steve Jobs
Profit, Growth,
Financial Engineering
Customer Service,
Employees as Leaders
Mission, Purpose,
Sustainability
Opera4onal
Efficiency
2020
Purpose, Meaning,
and Empowerment?
Industrial Age
People as Workers
Management by
Objec4ve
Servant Leadership
Work Together
Empower the
Team
The Corpora4on
is King
The Execu4ves
are King
The Teams and
Team Leaders are Kings
The People are
King(s)

11. Issues That Matter to Employees?
Culture and Leadership
0.00
0.12
0.13
0.22
0.28
0.30
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
Year founded (age)
Compensation & benefits
Work life balance
Career opportunities
Senior leadership
Culture and values
Correlation of employment factors to Glassdoor
recommendations as place to work
Culture and leadership are 3X more important
than salary in your employment brand.
Career development and learning are almost
2X more important than comp, benefits,
and work environment.
Bersin by Deloitte research with Glassdoor

12. The Simply Irresistible Organization®
What We Have Learned: an Integrated Approach is Key
Meaningful
Work
Supportive
Management
Fantastic
Environment
Growth
Opportunity
Trust in
Leadership
Autonomy Clear goal setting Flexible, humane
work environment
Facilitated talent
mobility
Mission and purpose
Selection to fit Coaching and feedback Recognition rich culture Career growth in many
paths
Investment in people,
trust
Small teams Leadership
development
Open flexible work
spaces
Self and formal
development
Transparency and
communication
Time for slack Modern performance
management
Inclusive, diverse
culture
High impact learning
culture
Inspiration

13. The Irresistible Organization
1. Meaningful, achievable work
2. Supportive management
3. Flexible, humane work environment
4. Development and career growth
5. Inspirational leadership

14. Amazon Work Environment
1. Meaningful Work

15. Shorten Working Hours: Time for Slack

16. More Hours Does Not Increase Work Output
2000
3000
4000
5000
6000
7000
8000
9000
24 29 34 39 44 49 54 59 64 69
Worker Output vs. Hours Worked

17. • Since 2000, American workers have lost
an entire week of vacation, dropping
average vacation days from 20.3 to 16.2
• Americans left 658 million unused
vacation days and lost 220 million of them
in 2015
• 39% of Americans “want to be seen as a
work martyr” yet 86% say it’s bad for their
family life.
Fix the Vacation Crisis
Millennials
50% more likely
to forfeit
vacation days
48% of
Millennials
want to be seen as
a “work martyr”

18. Institutionalizing Feedback:
Check-Ins
2. Supportive Management

19. GE Shift toward a “Digital Culture”
GE: We invest more than $1B on employee learning and
development every year.

20. Connections as Key to Performance"
Juniper Model of Evaluation
Talent Architecture

21. Why Feedback is Critical

22. The Feedback System
Fixing the Feedback System in Your Organization
Engagement
Survey
Senior Management Team
Employees
Line Managers | HR
Performance
Review
Filtering and Cleaning
Time
Per
Year

23. 1. I am really enthusiastic about the mission of the firm
2. At work, I clearly know what is expected of me
3. In my team, I am surrounded by people who share my values
4. At work, I have the chance to use my strengths every day
5. My teammates have my back
6. I know I will be recognized for excellent work
7. I have great confidence in the firm’s future
8. In my work, I am always challenged to grow Bottom Quartile
Middle Quartile
Top Quartile
1
2
3
4
5
6
7
8
4.4
3.2
4.2
4.0
3.8
3.6
3.4
Pulse Survey items
Source: Deloitte pilots FYs14-15.
Feedback = Performance at Deloitte"
Questions that Predict
High Performance at Deloitte

24. 3. Flexible Work Environment

25. EmployeeHappiness
Business Performance
Cost
Reduction
Labor Productivity Retention Productivity Collaboration Team
Performance
Leadership
Health
Monitoring
Employee
Assistance
Medical
Benefits
Fitness
Challenges
Nutrition
Exercise
Sleep
Stress
Engagement & Peak Performance
Recognition
Skills and
Training
Work
Environment
Rewards
Leadership
Management
Clear Goals
Growth
Opportunities
Drive
Wellness
Self
Discovery
Career
Purpose
Mindfulness
Abundance
Mentality
Positive Thinking
Culture Fit
Family
Redefine Wellness to Engagement and
Peak Performance

26. 26
4. Development and Growth

27. Among Millennials
Career Growth and Learning
Now the #1 Job Benefit
6%
6%
8%
14%
19%
22%
0% 5% 10% 15% 20% 25%
Greater vacation allowance
Retirement funding
Free private healthcare
Cash bonuses
Flexible working hours
Training and development
Millennials in the workforce
For Millennials, “Training and development” is the most coveted job benefit
Source: KPCB

28. The Financial Return of Soul
5. Inspirational Leadership

29. Companies with “soul” had a
1026%
return from 1996 through 2006,
8x higher
than S&P 400 firms
Companies with “soul” experience:
• Much higher engagement and retention
• Better customer service
• Long-term profitability
Importance of Mission and Purpose
Source: Simply Irresistible: Engaging the 21st Century Workforce, Bersin by Deloitte, 2014

31. Design Thinking the Employee Experience
Consider Your Employee’s Journey

32. Rethink Your Entire Work Experience"
You are the Chief Employee Experience Officer

33. The Irresistible Organization
1. Meaningful, achievable work
2. Supportive management
3. Flexible, humane work environment
4. Development and career growth
5. Inspirational leadership

34. Josh Bersin
Principal, Founder!
Bersin by Deloitte