Our Digital Future and its implications for the workforce

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Our Digital Future and its implications for
the workforce
Deloitte Consulting LLP
September 11, 2007
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Discussion outline
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Good news for the media industry

• Growth Rates of the Media Entertainment
  Industry
• US Million

CAGR 5.2
No business is more dependent on human talent
than the Media Entertainment industry. As
growth continues and the industry transforms,
there will be increasingly greater reliance on
skilled and experienced people.
Source Wilkofsky Gruen Associates
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The demand for workers is steadily increasing

• Employment projection by sectors

812,500
13.5
715,600
10.6
Broadcasting Cable, except Internet
15.9
Motion Pictures and Sound Recording Industries
2004
2014

• Increase trends in automation
• More outsourcing/off-shoring

Source Bureau of Labor Statistics Deloitte
Human Capital analysis
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Media industry dynamics impacting the workforce
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Competition for talent has become increasingly
fierce

Already experiencing severe talent shortage and
battles for talent
Caught short by talent supply/demand imbalance
and experiencing early fights for talent
Most protected within current climate, but with
indications of future shortages
High Competition for Talent
Low Competition for Talent
Media
Retail
Airlines
Utilities
Chemicals
High-Tech
Consulting
Health Care
Automobiles
Entertainment
Transportation
Financial Services
Consumer Products
Telecommunications
Source CLC
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The importance of having the right skills and
talent

• But possibly the most interesting aspectis how
  digital convergence could increase the need for
  traditional, non-digital skills and talentthe
  need for quality writing, casting, acting,
  editing and so on may rise considerably.
• Joshua Auerback, VP Strategic Planning, Time
  Warner Inc.
• As it is a new area, almost by definition
  convergence requires us to develop or acquire
  new skills and competencies.
• Dr. Terumo Chikama, Corporate Senior VP, Fujitsu
  Limited

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Major trends are dramatically changing the
workforce
Workforce in 2008 and beyond
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Increasing Number of Women
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Open discussion
What is the impact of your evolving business
model on your workforce? Where are you feeling
the most pain?
Are you seeing more non-traditional competitors
for employees and candidates?
Have you thought through make versus buy
decisions? What seems the most feasible?
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Discussion outline
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What are critical workforce segments?
Critical Workforce Segments are groups that drive
a disproportionate amount of key business outcomes
Identifying CWS maximizes the value of
investments in the workforce and ensures the
resources needed to achieve business strategy and
goals
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How do you determine your critical workforce
segments?
Plan and Execute What tools can we use to secure
our supply?
Identify Diagnose What talent do we have? What
talent do we need?
Business Alignment What is the business strategy?
Does leadership agree?
Business Priorities
Critical Workforce Segments - Supply -
Critical Workforce Segments (CWS) - Roles -
Organizational Structure Culture
Business Strategy
Workforce Planning -Talent-
Sourcing Development Talent Review Succession
External Workforce Trends
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Open discussion
What are your most critical workforce segments
now?
How have your critical workforce segments changed?
What external forces are driving this change?
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Discussion outline
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Why the old ways wont work anymore

• Conventional Talent Management
• Does not get to the heart of who creates the most
  value in the emerging business
• Often not connected to business strategy or the
  pace of change
• Tends to overlook value of employees already on
  board with an expensive focus on acquisition
  and retention (e.g., companies tend to spend 50
  times more on recruiting than training1)
• Human capital programs are often fragmented and
  divorced from key business imperatives

?In the U.S., companies spent 1,415 on average
in recruiting costs for every 10,000 of
new-employee compensation. But the median
training expense per full-time worker in 2000 was
288. In companies of more than 5,000 people, it
was only 109.
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A new approach to managing talent

• Focus on Critical Workforce Segments (CWS) - that
  generate a disproportionate share of current or
  future value, typically in high demand and low
  supply
• Integrate human capital programs to create a
  cohesive talent strategy based on business
  priorities.

Organizations that focus on these 3 things
acquire and retain talent
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Develop, deploy and connect your workforce
Develop means helping employees build the
capabilities they need to achieve personal and
business goals

• Invest in new and more robust training
  approaches, knowledge sharing tools and
  rotational programs in order to deepen skills
  within underwriting and claims workforces -
  developing the next generation of underwriters
  and claims professionals.

Deploy means providing employees with the
experiences they need to perform to the full
extent of their abilities
Create rotational programs for up and coming
stars in the organization. Sourcing strategies
should consider alternative workforces such as
semi-retired insurance professionals. Create
flexibility in the work environment (e.g.,
flexible work arrangements).
Connect focuses on how individuals interact and
perform together
Establish communities of practice and mentoring
programs to connect seasoned workers to the
junior workforce. Establish knowledge management
programs to retain key knowledge from aging
employees and pass down to new joiners.
Enabled by Integrated Human Capital Programs
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Some important talent levers

• Begin by assessing the effectiveness of existing
  talent programs to determine the need for
  enhancements or the development of new programs
  to improve the overall Talent Management effort.

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Some important talent enablers

• Enablers are significant elements in the
  organization environment that enable successful
  talent strategies and solutions and unlock talent
  potential.

Virtual Workplace

• Workplaces of the future often focus on virtual
  and remote spaces but we must not lose sight of
  physical spaces. The design of workspaces to
  reflect the nature of work not hierarchy is
  now recognized as an enabler of productivity.

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Putting the pieces together
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Open discussion
What is the role of leadership and line
management versus HR in effecting change?
What has worked particularly well in your
organization?
What is the correlation between your workforce
and your workplace?
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Discussion outline