Bersin by Deloitte 2017 Predictions
Everything is Digital Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP February, 2017

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 2 Demographic and political upheaval: Millennials make up more than half the workforce. Boomers working into their 70s and 80s, and a new wave of nationalism. Digital technology infiltrates our lives: Technology is disrupting business models and radically changing the workplace and how work is done. Need to increase speed and employee experience: Engagement is flat, people are distracted, hierarchical structures are going away, yet speed is increasing. Career and social contract with employees changed: Employees now demand rapid career growth, compelling and flexible workplace, purpose, and increased earnings.e of purpose at work. Forces Disrupting Organizations Today MIT Deloitte Research, 6/2015 “Aligning the Organization for its Digital Future”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 3 Digital Disruption A New Industrial Revolution 90% of organizations surveyed by MIT and Deloitte anticipate their industries will be totally disrupted by digital trends. As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 4 Siri Cortana Watson Alexa Viv The Future of Work Robotics, AI, Sensors are Here

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 5 Robots Average cost below $25,000. China purchasing 150,000 in 2016 to deal with shrinking workforce In 1900 41% of US jobs were in agriculture. It’s around 2% today. There is no fundamental economic law that guarantees every adult will be able to earn a living solely on the basis of sound mind and good character. - Daniel Akst, “What we can learn from anxiety about automation”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 6 Impact of Robotics and AI on Work Jobs Shift to Skills Which Are Essentially Human Source: Talent for survival Essential skills for humans working in the machine age, Deloitte UK 2016

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 7 The overwhelmed employee 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. 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. Sources: Deloitte Human Capital Trends 2014 and 2015

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 8 • 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. We Are Working More Hours: The Vacation Crisis 48% of Millennials want to be seen as a “work martyr” Millennials 50% more likely to forfeit vacation days

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 9 Productivity is suffering—is technology helping? US productivity last ten years 1 billion smartphones i-Phone launched 100 million Twitter users

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 10 Millennials concerned: A Threatening and Unfair World • 64% expect economic and political conditions to get worse in the coming two years • In mature markets, 64% of millennials believe they will be less well off financially than their parents (and 69% say they will be less happy) • In emerging markets 71%expect to be better off than their parents and 62% happier. • 77% of Millennials actively take part in volunteerism and charity work to help improve their community • 88% of Millennials believe business can be a major force for positive social change Millennials Speak Up: Citizenship On The Rise

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 11 1. Organization design will be challenged everywhere 2. Culture and engagement remain top priorities 3. Real time feedback and analytics explode in maturity 4. New generation of performance management tools 5. Wellbeing and human performance emerges as critical 6. Employee experience becomes central focus for HR 7. Digital HR, learning, and recruiting displaces cloud 8. Leadership market reinvents itself again 9. Inclusion, unconscious bias, diversity goes mainstream 10.L&D will struggle to reinvent itself 11.Future of work will push HR into a strategic role Talent and HR Predictions for 2017

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 12 Percent rating trend important Importance of Human Capital trends to business Organizational design Leadership Culture Engagement 92% 89% 86% 85% Learning Design thinking Skills of HR organization People analytics Digital HR Workforce management 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% … … The gap between need and capability has increased 400% since 2014

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 13 Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position 1. Organization design will be challenged everywhere A network of teams B A DCF A C D E B G How things were How things “are” How things work E

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 14 Tribes, Squads, Chapters at ING Bank http://www.mckinsey.com/industries/fina ncial-services/our-insights/ings-agile- transformation

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 15 Average 3.2 What are these companies doing? 2. Culture and engagement remain top priorities Engagement Remains a Challenge Summer, 2016 Glassdoor Bersin by Deloitte Research

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 16 -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 Workplace Culture Keeps Getting Hotter!

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 17 3. Real time feedback and analytics explode in maturity What We’ve Learned about Feedback Source: http://www.ncbi.nlm.nih.gov/pubmed/19829208 Lack of feedback creates anxiety, worry, and poor performance

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 18 The Feedback System How Does Feedback Work Today? Engagement Survey Senior Management Team Employees Line Managers | HR Performance Review Filtering and Cleaning Time Per Year

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 19 Feedback is the Killer App The World of Feedback Apps is Here` Traditional Engagement Surveys Work Environments Quick Feedback Team Management Apps Performance Management Social Recognition Well Being Culture Pulse Surveys

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 20 Feedback = Performance at Deloitte 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 Questions that Predict High Performance at Deloitte Source: Deloitte pilots FYs14-15 Questions © Marcus Buckingham Company.

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 21 The Listening Organization Enterprise Feedback Architecture Integrated Reporting & Analytics Sentiment Analysis Network Analysis Social Media Monitoring Job Boards & Ads Employment Brand Customer Satisfaction Anonymous Feedback Tools Pulse Surveys Annual Survey Performance Check-ins Exit Interviews Performance Appraisals

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 22 People Analytics: Taking Off Progress is Rapidly Accelerating 2015 2016 2017 % Change Performing multi-year workforce planning 38% 48% 49% + 23% Correlating people data to business performance 24% 39% 46% + 56% Correlating people data to business performance (% excellent) 5% 11% 9% + 36% Using people data to predict business performance 28% 36% 46% + 50% Using people data to predict performance (% excellent) 4% 9% 9% + 56% Deloitte Global Human Capital Trends, 2016 and 2015 Plan Correlate Predict

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 23 2017: Where People Analytics Is Going Interesting Experiments, Models, and Studies Practical, Useful Dashboard and Tools Projects Based on Problems and Strategies Embedded Applications That Drive and Inform Work

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 24 4. A New Generation of Performance Management Tools Reinvention of Performance Management Arrives Then: The Networked Hierarchy Now: The Digital Organization • Cascade and align corporate goals • Drive and measure top-down execution • Evaluate high performers • Force out low performers • Allocate pay for performance • Assess competency gaps • Create development plans • Identify HIPOs, leadership candidates • Create real-time team-centric goals • Drive front-line, iterative execution • Help everyone perform at high level • Develop and coach low performers • Differentiate pay for performance • Provide continuous learning • Give positive developmental feedback • Engage teams and assess next role

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 25 What’s Really New? Almost Everything! The New World of Performance Management Check-ins Transparent Goals Peer Feedback Feedback to Manager Engagement Survey Individual Assessment Team Assessment Continuous Micro- Learning Regular Evaluation Integrated into Workflow Mobile App Annual Process Continuous Manager-Centric Team-Centric Hierarchical Multi-Directional Competitive Developmental Subjective Data-Driven Secret Transparent Single Rating Richer Rating Vendor A Vendor C Vendor D Vendor E Vendor G Vendor FVendor B Fundamental Changes Are Enormous

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 26 27 companies that redesigned their process, found overwhelmingly positive outcomes: • 100% said conversation quality improved • 83% said conversation frequency increased • 90% said employee engagement increased • 91% say data for evaluation is better • 96% say tools are easier and simpler • 77% expect continuous feedback • 45% are using check-ins to assess managers • 50% say training process is easier and shorter • 67% doing feedback quarterly • 80% expect employees to drive check-ins And Yes, The New Models For PM Do Work

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 27 EmployeeVitality Business Performance Cost Reduction Labor Productivity Retention Productivity Collaboration Team Performance Leadership Health Monitoring Employee Assistance Medical Benefits Fitness Challenges Nutrition Exercise Sleep Stress Sustainable Performance Recognition Skills and Training Work Environment Rewards Leadership Management Clear Goals Growth Opportunities Drive Wellbeing Self Discovery Career Purpose Mindfulness Abundance Mentality Positive Thinking Culture Fit Family 5. Wellness matures and becomes central From Wellness to WellBeing to Performance

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 28 Changing Employee Habits Photo: https://squashskills.com/blog/-/does-jogging-have-any-benefits-for-squash-players-159/ Personal plan Culture of fitness Challenges, Leaderboard Apps, Wearables Groups Rewards Storytelling Management support Slack time Facilities Leadership

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 29 6. Focus on the Employee Experience Careers have changed and so have people “Our candidates today are not looking for a career… They’re looking for an Experience.”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 30 Culture, value, leadership, and career (The Big Four) What matters to employees 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.

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 31 Factors that link culture and engagement

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 32 Bersin by Deloitte Engagement Model The Simply Irresistible Organization® Meaningful Work Hands-On Management Positive Work Environment Growth Opportunity Trust in Leadership Autonomy Clear transparent goals Flexible, humane work environment Facilitated talent mobility Mission and purpose Selection to Fit Coaching & feedback Recognition rich culture Career growth in many paths Investment in people, trust Small Teams Leadership Development Open flexible workspace Self and formal development Transparency and communication Time for Slack Modern Performance Management Inclusive, diverse culture High impact learning culture Inspiration Collaboration and Connection

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 33

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 34 7. Emergence of Digital HR, Learning, Recruiting HR Technology Now A Hot Marketplace

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 35 Moving beyond the cloud Rip and Replace Pace is Slowing Core HR Technology spending is slowing (41% say it’s flat) Clients not fully satisfied: only 21% of customers say talent systems “always meet their needs.” Two biggest growth areas are Learning and Analytics (37% yty) Career, succession, onboarding, analytics hottest functional needs User satisfaction is 2/3 lower than vendor satisfaction How Will You Upgrade Your HR Technology? 2015 Cedar Crestone survey and 2015 Bersin by Deloitte HR Systems Research Risk Speed

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 36 Feedback and Engagement Reinventing Performance Video Based Learning & Career Team Management Well-Being Work—Team Management 2017: A New Set of Disruptive ApplicationsMARKETGROWTH—ADOPTION 2 0 1 6 Pulse Survey Text Analytics Mobile Feedback 2 0 2 0 Culture Assessment Coaching Tools Checkins with Feedback Agile, open goal management Org Network Analysis Team Assessment Tools Social Recognition Integrated Smart Tools For Leader Coaching P R O G R E S S I O N O V E R T I M E Video Learning Content Curation Intelligent Learning Career Planning Gamification Accreditation Well Being Fitness Tracking Competitions Social Sharing Points Gamification Fitness Merges w/Engagement Virtual Work Management Document Management Goal Sharing Goal Tracking Communications Messaging Curated Micro-Learning Engagement tools directed to leaders

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 37 Convergence of HR Systems Ahead Diet Wellness Fitness Challenges Goal Management Feedback Pulse Survey Surveys Engagement Tools Mobile Feedback Customer Feedback Check Ins Personality Assessment Performance Review Fitness Monitoring Health Behavior Change Social Recognition Customer based Recognition Community Circles Affinity Groups Anniversaries Work Events Engagement Analytics Travel Time Management Video Learning Video Sharing Gamified Onboarding Career Planning Training and Certification Engagement Feedback Performance Recognition Rewards Learning Well Being & Work Management

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 38 From Application Tracking to Recruitment Success Reinvention of the Talent Acquisition Market Applicant Tracking Candidate Marketing Sourcing Video Interview Analytics Next Gen Talent Acquisition Onboarding Manager Tools ?

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 39 AI Applied to Recruitment and Selection Video Analytics Becomes Real https://www.fastcompany.com/3064863/election-2016/watch-this- ai-platform-assess-trumps-and-clintons-emotional-intelligence • Video interviewing now nearly mainstream, as many as 40% of interviews are done digitally • AI software (HireVue) can now detect race, emotion, gender, and tendency to exaggerate or lie through video • While use of this data is not legally defensible yet, companies are actively using this data to select candidates

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 40 AI, natural language, chat integration, and “experience platforms” And There’s More to Come… Workflow Interaction Bots Content Videos Podcasts Notifications Campaigns Real-Time Analytics Case Management

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 41 Integrating HR into Work Itself… And There’s More to Come…

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 42 Foundational Leadership Content and Curricula, Programs by Levels, Offerings as Benefits Level 1 Integrated Leadership Competencies, programs, audience-specific, talent management Level 2 Scalable Leadership Capability models, culture, executive commitment, rewards Level 3 Systemic Leadership Culture, structure, exposure, risk-taking, HR-business integration Level 4 BersinbyDeloitte 17% 58% 18% 7% 8. Leadership market reinvents itself Leadership development is a “broken market”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 43 8% 15% 9% 6% 13% 20% 15% 7% Global skills and experiences in leadership program Leadership programs for all levels (new, mid- level, senior) Experiential leadership programs Targeted Millennial leadership programs 2016 2015 Maturity growth in global and experiential programs, but not enough focus on Millennials (% companies who are “excellent” at these areas) Deloitte Global Human Capital Trends 2016, n=7,000 70% of Millennials tell us they are receiving no leadership development at all. Focus areas Weakest area seems to be Millennial programs

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 44 Too Many “Good Ideas” Out There to Pick From Unfortunately, while much ink has been spilled on the topic of individual leadership, very little of it can be scientifically supported. In an influential book published in 1991, the University of San Diego’s Joseph Rost pointed out that writers had defined leadership in more than 200 ways since 1900, often with nothing but conjecture or personal experience to back up their claims. https://hbr.org/2016/12/succession-planning-what-the-research-says

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 45 The Digital Organization® Digital DNA Like human DNA, Digital DNA carries the 23 underlying instructions, development, functioning, and replication for being “digital’. These are expressed as digital traits and characteristics. They are present in all areas of the organization: business models, operating models, customer interaction, organization structure, talent, technology, cyber-security, culture, etc. There are four levels of Digital Maturity: Exploring, Doing, Becoming, and Being. © Deloitte Consulting LLP Real Time & On-Demand Fluidity Constant Disruption Changing Mix of Traditional & Non-traditional Stakeholders Continuously Innovating Modulating Risk & Security Boundaries Morphing Team Structures Intentionally Collaborative Multi-Modal Operations Continuous Ecosystem Disruption Iterative Changing Nature and Typology of Work Constantly Changing Decision Criteria Ongoing Shifts in Decision Rights and Power Geography Agnostic Uneven Velocity between Digital & Legacy Dynamic Skill Requirements Increased Customer Involvement Productive Mobility (non-traditional workspace options) Flattening and Changing Hierarchy Agility Fail Early, Fail Fast, Learn Faster Democratizing Information

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 46 CEO’s Still Don’t Understand This Issue 67% of CEOs responding to a recent Korn Ferry study believe that technology will create more value than human capital. 44% of leaders in large global businesses believe that the prevalence of robotics, automation, and ATI will make people “largely irrelevant” in the future of work. And, to make it worse, “46% say they do not know how to measure workforce performance.”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 47 Essential Talent Activities Standalone disconnected staffing, training, and performance practices Level 1 Critical Talent Growth Critical talent segments, focus on hiring, training, performance Level 2 Managed Talent Relationships Workforce planning, development planning, leadership development integrated into talent strategy Level 3 Inclusive Talent System Talent strategies integrated with inclusion, diversity, and culture Level 4 BersinbyDeloitte 10% 19% 59% 12% The New Bersin by Deloitte Talent Management Maturity Model Source: Bersin by Deloitte, Deloitte Consulting LLP, 2015. 9. Inclusion, bias, diversity go mainstream Inclusive Talent Practices Drive Financial Results

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 48 Effective Inclusion Is A Leadership Issue Six Signature Traits of Inclusive Leadership https://dupress.deloitte.com/dup-us- en/topics/talent/six-signature-traits-of- inclusive-leadership.html

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 49 • People are inherently biased ̶ Age, gender, experience, proximity, race ̶ Training and workshops are the new rage ̶ Training is good but not enough • Bias can be removed from “processes” not “people” ̶ Recruitment and selection ̶ Promotion and leadership ̶ Compensation and rewards ̶ Leaders held accountable • New data driven solutions drive out bias fastest • We have proof that diverse teams perform better, are more innovative, and more engaged Unconscious Bias Takes Center Stage https://hbr.org/2016/11/why-diverse-teams-are-smarter https://hbr.org/2016/09/diverse-teams-feel-less-comfortable-and-thats-why-they-perform-better

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 50 Our Data Proves Value of Inclusive Talent Practices As compared with organizations of similar size and less mature talent management practices, mature large organizations had 2.3 times higher cashflow per employee over a three-year period. When contrasted against less mature small organizations, mature small organizations had 13 times higher mean cashflow from operations, five times higher mean cashflow as a percentage of revenue, and five times higher mean annual change in share price (all based on a three-year average). Source: 2015 High-Impact Talent Management, Bersin by Deloitte, Deloitte Consulting LLP

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 51 “Over 300 years of economic history, the principal and most enduring mechanism for distribution of wealth and reduction in inequality is the diffusion of skills and knowledge.” 10. L&D will struggle to reinvent itself The learning curve is the earning curve

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 52 Consumerization of education has arrived MOOCs Forever Changed Education 400+ universities. 2,400+ courses. 35+ million students.

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 53 The training industry tries to respond L&D is Not Keeping Up • Average employee spends 6.5 hours a week learning or trying to learn • 2/3 of L&D leaders believe learners should use learning every week or more. • CLOs say L&D is “wildly out of sync” with how people learn…. • Employees rate L&D -31% net promoter score (49% would not recommend and only 18% would recommend their training dept.)

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 54 77% 53% 32% 4% 6% 13% 10% 15% 26% 4% 14% 15% 5% 10% 13% 2009 2012 2015 ILT Virtual ILT Online self-study On the Job Collaboration ILT shrinking in volume, growing in importance Online and collaborative learning Is finally working OTJ and apprenticeship is growing rapidly Today only 16% of L&D spending is allocated to instructor delivery, vs. 21% in 2011 and 33% in 2006 Source: Bersin Corporate Learning Factbook® 2015 Shifting resources away from ILT, toward online and on the job Huge shift in content strategy

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 55 End of the Learning Management System? A New Market Emerges: Learning Experience Platform The “Learning Management System” (LMS) Mobile Pathways Videos Articles ChannelsPeopleCourses Search | Curation | Recommendations | Machine Learning The “Learning System”

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 56 One Final Point: Jobs are not going away Empathy, creativity, and human skills are more important than ever… But we must design our organizations and jobs to empower people and the customer experience. 56 The Future of Work is Here, And It’s Our Job To Deal With It Source: http://www.forbes.com/sites/joshbersin/2016/09/21/the-future-of- work-its-already-here-and-not-as-scary-as-you-think/#7b44ff1c5506

HR 2017—Bersin by Deloitte predictions
for the year aheadCopyright © 2016 Deloitte Development LLC. All rights reserved. 57 1. Organization design will be challenged everywhere 2. Culture and engagement remain top priorities 3. Real time feedback and analytics explode in maturity 4. New generation of performance management tools 5. Wellbeing and human performance emerges as critical 6. Employee experience becomes central focus for HR 7. Digital HR, learning, and recruiting displaces cloud 8. Leadership market reinvents itself again 9. Inclusion, unconscious bias, diversity goes mainstream 10.L&D will struggle to reinvent itself 11.Future of work will push HR into a strategic role Talent and HR Predictions for 2017