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LEADING FROM WITHIN: Building Organizational Leadership

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: leadership is intensely personal and at the same time deeply about building collective success It is a personal connection to performance and outcomes for every leader at the top of the house as well as a shared commitment and responsibility among a leadership team for business outcomes

What makes a good leader?

    A leader can be defined as an individual who changes the paradigms of people, creates a vision, motivates followers with internal resources, engrains the idea that everyone has something to contribute to the shared goal, leads them and directly affects the flow of events and results.

What motivates a leader?

    Leader behaviors are motivated to the extent that they meet the needs of their followers in relation to their effective performance and provide the support, guidance, coaching and rewards they need for effective performance and create a suitable atmosphere.

Why did we write the Handbook of leadership styles?

    One of the main reasons we wrote this book, Handbook of Leadership Styles, was to highlight leadership styles in detail. Another reason is that a lot of explanations of leadership styles exist, but there are few books that have gathered these styles together in a detailed manner.

Are leadership theories a light that reveals an unknown part of the subject?

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Predictions for 2017

Everything Is Becoming Digital

RESEARCH REPORT

Copyright © 2016 Deloitte Development LLC. All rights reserved. bersin.com

2Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

The Bersin by Deloitte

Membership Program

is document is part of the Bersin Research Library. Our research is provided exclusively to organizational members of the Bersin by Deloitte Membership Program. Member organizations have access to an extensive library of research related to HR, learning, and talent management. In addition, members receive a variety of products and services to enable talent-related transformation within their organizations, including: Research—Market-leading, proprietary research including research reports, high-impact industry studies, videos, webcast replays, process models and frameworks, and case studies. Bersin Blueprints—Designed to provide actionable approaches to help talent leaders address their most pressing talent challenges, Blueprints oer convenient access to research, performance support materials, tools, and member advisory services to tackle key challenges. Interactive Factbooks—Covering a wide spectrum of HR and talent metrics, this platform allows members to lter by industry and company size and create custom benchmarks, analyze trends, and identify drivers of variance. Maturity Diagnostics—Research-based maturity assessments, integrated with business feedback, deliver actionable custom analysis, relevant research resources, and guidance from member advisors. ese assessments help members develop a plan to progress in maturity. Performance Support—Practical materials in the form of illustrations, handouts, worksheets, templates, assessments, and recipes. Members can use these materials to help promote thinking, facilitate discussion, enable self-assessment, outline steps, direct processes, and aid decision-making. Member Advisors—rough virtual and in-person activities, our specialized member advisors help members understand our research, uncover deeper insights, prioritize human capital issues, and map solutions to some of their most pressing challenges. Networking—Member-only online Communities, working groups, and roundtables let you connect with peers and industry leaders to discuss and learn about the latest industry trends, emerging issues, and leading practices. IMPACT Conference: ?e Business of Talent—A research-based executive conference for HR, learning, and talent leaders and their teams, that brings together Bersin team members, senior-level practitioners, and industry thought leaders. For more information about our membership program, please visit us at www.bersin.com/membership.

CONTRIBUTORS

Lead Author

Josh Bersin

Principal and Founder

Bersin by Deloitte, Deloitte Consulting LLP

Bersin by Deloitte

Deloitte Consulting LLP

Head of Research

David Mallon

Research Operations Leader

Laurie Barnett

Manager, Visual Design

Jennifer Hines

3Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

TABLE OF CONTENTS

A Note from the Analyst __________________________________________________4 Key Predictions for 2017 __________________________________________________6 Prediction 1: Organizational Design Will Be Challenged Everywhere 6 Prediction 2: Culture and Engagement Will Remain Top Priorities 9 Prediction 3: Real-Time Feedback and Analytics Will Explode in Maturity 15 Prediction 4: A New Generation of Performance Management Tools Will Emerge 19 Prediction 5: A Focus on "Human Performance" and Wellbeing Will Become a

Critical Part of HR, Talent, and Leadership

22
Prediction 6: Focus on Employee Experience Will Overcome Process Design in HR 26
Prediction 7: Digital HR and Learning Will Help Us to Reinvent L&D and HR Systems 28
Prediction 8: The Leadership Market Will Start a Steady Process of Reinvention 29
Prediction 9: Diversity, Inclusion, and Unconscious Bias Will Become a Top Priority 32
Prediction 10: The L&D Function Will Continue to Struggle 34
Prediction 11: The Future of Work Is Here and HR Is in the Hot Seat 37
Closing Remarks _______________________________________________________39 Table of Figures ________________________________________________________40 About Us _____________________________________________________________41

4Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

As I look back over the last year and think about the year ahead, I am struck by how many things are changing this year. As I developed this report, I realized there is one theme that brings it all together: digital. I do not need to explain how technology has inltrated our lives. We are now constantly connected; we send and receive messages 24 hours a day; and we can view news, video, podcasts, and live streams of information from any device in a coee shop, standing in line, or even in an airplane. Video, a medium which used to seem expensive and slow, is now becoming the primary form of content on the Internet (and live video is coming fast). e devices we carry around (which are far more than "smartphones" today) are not only computers and phones - they carry digital sensors which make them smarter and more useful than ever. (e typical smartphone has a GPS, temperature sensor, audio sensor, humidity detector, accelerometer, proximity sensor, camera(s), and some even have altimeters. Soon these devices will listen to our voices for stress, monitor our heartbeats, and possibly even our diets!) Articial intelligence (I like to call it "augmented intelligence") has now become a mainstream technology. Our phones and computers can understand our voice, respond to commands, recommend and solve problems, and, through robotics, automate many jobs we never before thought possible. Oxford University believes 47 percent of today"s jobs will be redened within 20 years and this does not seem unreasonable at all. 1 But, while technology is changing jobs and work (I talk about the "future of work" later in this report), the biggest change we see is that new way we manage, lead, and operate our companies. Organizations that thrive in the digital age just act dierently, so all of the trends I discuss revolve around learning to "be digital," not just "do digital." What does this mean? Earlier this year, we conducted a study with MIT 2 (more than

1,000 business leaders responded) and we found two important things. First, 90

percent of these companies believe their core business is threatened by new digital competitors that are challenging their products and services. Second, 70 percent believe that they do not have the right leadership, skills, or operating models to adapt. 1

e Future of Employment: How susceptible are jobs to computerisation?, Oxford Martin School, University of Oxford / Carl

Benedikt Frey and Michael Osborne, 2013, http://www.oxfordmartin.ox.ac.uk/publications/view/1314. 2

"Aligning the Organization for Its Digital Future," MIT Sloan Management Review and Deloitte University Press / Gerald

C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron, and Natasha Buckley, 2016, http://www2.deloitte.com/us/en/pages/

A Note from the Analyst

Predictions for 2017: Everything Is Becoming Digital

5Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

Our Deloitte Human Capital Trends study

3 , which surveyed more than 7,000 companies in 130 countries, found that 92 percent of companies believe that they are not organized correctly to succeed, while only 14 percent know what this "new organization" looks like. As we describe in that report, the world is moving from a top-down hierarchical model to one of a "network of teams" in which people are iterating and solving problems in a dynamic, agile way. is shi in structure, roles, and careers changes the way we lead, manage, reward, and move people throughout the company. It also pushes us to continuously learn - faster than ever. In fact, one of the hallmarks of high-performing companies in today"s digital world is the ability to learn fast. Companies today should try new things (oen through crowdsourcing 4 or hackathons), rapidly deploy new products and services (through the MVP 5 or minimally viable product approach), and quickly learn what fails and what works. is fast-moving, customer-centric way of doing business has shied decision-making to the edges of the company, and involves a new way of thinking about management and HR. e bottom line to all of our predictions for 2017 is this - technology has not only changed our lives, it has changed our organizations. Let us now dive in to the 11 predictions we see.

Josh Bersin

Principal and Founder

Bersin by Deloitte

Deloitte Consulting LLP

3

Global Human Capital Trends 2016: e new organization—Dierent by design, Deloitte Development LLC and Deloitte

University Press, 2016, http://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-dup-global-

human-capital-trends-2016.pdf. 4

"Crowdsourcing" is the practice of obtaining needed services, ideas, or content by soliciting contributions from a large

group of people, and especially from an online community or the Internet, rather than from traditional employees or suppliers.

5

A minimum viable product (MVP) is a development technique in which a new product is developed with sucient

features to satisfy early adopters. e nal, complete set of features is designed and developed only aer considering feedback

from the product"s initial users.

6Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

e following are the top 11 predictions that we see impacting HR and talent for 2017.

Prediction 1: Organizational Design Will Be

Challenged Everywhere

e rst prediction for 2017 is one I seem to talk about with every company—we need to rethink the way our organizations are designed. For more than 100 years, companies have been set up for scalable eciency. We build functional teams that run product design, engineering, manufacturing, sales, marketing, nance - all with a focus on scale. How can we ship more products per dollar, gain more leads per advertisement, and achieve more sales per salesperson? Today, in the world of rapidly changing markets, and digital products and services, the traditional concept of "scale" and "eciency" no longer applies. anks to the cloud and the Internet, barriers to entry have been lowered. You cannot "keep your market" just because you are big or ecient - someone else will likely reinvent it before your eyes, and then his / her company may disrupt yours in only a few years. As John Hagel, director of Deloitte LLP"s Center for the Edge in Deloitte stated, Today, the key to organizational success is not “scalable eciency," but "scalable learning." You, as an organization, must be able to experiment, put prototype products in front of customers, rapidly learn from your competitors, and stay ahead of your marketplace, industry, and technology trends. is means your whole organization has to focus on customer- centric learning, experimentation, and time to market. 6 e solution is oen easy to understand, but hard to implement. We should break our functional groups into teams - teams focused on product releases, customers, markets, or geographies. ese teams should be smaller, atter, and more empowered - and leaders should focus on hands-on leadership, not leadership from behind a desk. 6

Based on conversations with Bersin by Deloitte.

Key Predictions for 2017

PREDICTION

Organization design,

including structure, roles, talent mobility, and the role of leadership, must become exible and adaptive - changing many elements of HR. Predictions for 2017: Everything Is Becoming Digital

7Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

Cisco studied its organizational structure and found that the company already has more than 20,000 teams, with people sitting on many teams at the same time. is is true in nearly every company; we just have to design for it. In 2017, companies will discuss and struggle with this mightily, and I suggest some of the changes should include:

Formally creating small team structures (Je Bezos

7 famously stated, “... if the team needs more than two pizzas for lunch, it"s too big.") Radically reducing the number of job levels to incent people to strive for results and learning, not just promotions, as they move from job to job Changing reward systems to reward team success, not just individual success Redesigning goal management, so that goals can be updated quarterly, not annually, and goals are transparent and shared publicly Promoting young professionals into leadership early, so they can rapidly contribute to team success Teaching managers to manage "projects" not "people" (WL Gore) Providing "career coaches" and "sponsors" instead of "managers" to help people to grow Creating always-on learning, and a culture of exploration and discussion to enable continuous invention Sponsoring hackathons and other collaborative development programs to let people at all levels contribute Implementing information systems that deliver real-time dashboards and reports, so that all teams can operate with the same insights and perspectives 7

Figure 1: Network of Teams

Source: Bersin by Deloitte, 2016.

Shared values

& culture

Transparent goals &

projects

Free flow of information

feedback

People rewarded for

their skills & abilities, not their position in a hierarchy A CDE B

How things wereHow things are

How things work

B A D C F G E

KEY POINT

We should break our

functional groups into teams - teams that are smaller, atter, and more empowered - and leaders should focus on hands-on leadership, not leadership from behind a desk. Predictions for 2017: Everything Is Becoming Digital

8Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

e books Team of Teams 8 , e Silo Eect 9 , and Reinventing Organizations 10 describe how organizations will be structured in the future. ese books, which I recommend you read, give examples of companies that outperformed their larger peers by keeping teams small, communicating vigorously between teams, and using shared culture to bring people together (see Prediction 2). I also want to reinforce one more point - the old-fashioned concept of "organizational design" is going away. e redesign of your organization does not mean doing a spans and layers analysis; it means looking at the way work gets done, studying the organizational networks you have (using organizational network analysis), and then designing work to support cross-functional success. In most cases, it means making teams smaller, creating more open oce spaces, creating new cross-team roles, and oen changing functional leadership.

Case in Point: Organization Restructure

One large IT department found that its current functional structure (e.g., application design, infrastructure, security, client service, etc.) had created silos of people who could not be shared among projects. Managers were "hoarding" their teams - and preventing people from being promoted or moved, primarily to protect their positions. Also, leaders considered their jobs sacrosanct because they had "paid their dues," so to speak, and would not move into new roles. e CIO, who was facing dozens of new projects that cut across functional teams, totally redesigned the function. Hundreds of people were promoted into team leadership roles; many vice presidents were demoted to team leadership roles; and many technical experts suddenly had teams built around them. While the redesign was challenging, within only a few months many of the younger, more ambitious leaders rose to the occasion; several of the senior vice presidents resigned; and the CIO found the organization was more engaged, excited, and productive than ever. He realized that no spans-and-layers project would ever have solved this problem - and now is excited to see an agile, "digital" organization emerge, one with more leaders, more empowerment, and much faster time to market. 8

Team of Teams: New Rules of Engagement for a Complex World, General Stanley McChrystal / Portfolio, 2015.

9

e Silo Eect: e Peril of Expertise and the Promise of Breaking Down, by Gillian Tett / Simon & Schuster, 2016.

10

Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness, by Federic

Laloux / Nelson Parker, 2014.

Predictions for 2017: Everything Is Becoming Digital

9Copyright © 2016 Deloitte Development LLC. All rights reserved. Not for distribution. Licensed material.

Prediction 2: Culture and Engagement Will

Remain Top Priorities

In 2017, the topics of culture and engagement will remain top of mind for business and HR leaders around the world; I suggest that the challenge of managing culture will become even harder. If you do not believe me, let me show you some data. Figure 2 charts the frequency of Google searches on "workplace culture." You can see that, since the 2008 recession, people have been curious about it more and more each year. -1.5-1-0.500.511.522.533.5

9/1/2008

11/1/2008

1/1/20093/1/20095/1/20097/1/20099/1/2009

11/1/2009

1/1/20103/1/20105/1/20107/1/20109/1/2010

11/1/2010

1/1/20113/1/20115/1/20117/1/20119/1/2011

11/1/2011

1/1/20123/1/20125/1/20127/1/20129/1/2012

11/1/2012

1/1/20133/1/20135/1/20137/1/20139/1/2013

11/1/2013

1/1/20143/1/20145/1/20147/1/20149/1/2014

11/1/2014

1/1/20153/1/20155/1/20157/1/20159/1/2015

11/1/2015

1/1/2016

U.S.

Workplace Culture

Growth in Google Trends, Since 2008 Recession

Workplace Culture Is Hot!

Figure 2: Growth in the Importance of Workplace Culture

Source: Bersin by Deloitte, 2016.

e Deloitte Human Capital Trends 11 research shows that 86 percent of business leaders rate "culture" as one of the more urgent talent issues, yet only 14 percent understand what the "right culture" really is. e problem is not one of "talking about culture"; for 2017, it is time to carefully dene your culture, measure it, and nd where and how it may be misaligned. is problem is increasing in urgency. Our latest research on Millennials 12 (about one-half of the workforce now) shows that two-thirds of Millennials now state their organization"s "purpose" is the reason they choose an employer. Similar data shows that baby boomers feel the same way. Only 27 percent of Millennials believe 11

Global Human Capital Trends 2016: e new organization—Dierent by design, Deloitte Development LLC and Deloitte

University Press, 2016, http://www2.deloitte.com/content/dam/Deloitte/global/Documents/HumanCapital/gx-dup-global-

human-capital-trends-2016.pdf. 12

e Deloitte Millennial Survey 2016: Winning over the next generation of leaders, Deloitte Consulting LLP, 2016, http://

PREDICTION

The topics of culture

and engagement will continue to be top priorities, and we can now measure them closely.quotesdbs_dbs20.pdfusesText_26
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