From survive to thrive: The future of work in a post-pandemic world - Deloitte

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From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive:
The future of work in a
post-pandemic world
From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                        The future of work in a post-pandemic world

At the start of the pandemic, we outlined              As organizations emerged from the              As we’ve entered 2021, it’s time to look
three key phases that resilient leaders                respond phase and transitioned into            forward. While leaders continue to respond
would have to navigate in leading their                recover, organizational leaders began          to and recover from new challenges, we
organizations through the COVID-19                     assessing their current situation and taking   must proactively define what the “new
pandemic.                                              key steps to plan for the future, adjusting    normal” could mean for work, the workforce,
                                                       their perspective based on this evolving new   and the workplace. Now is the time for
• Respond: How an organization deals
                                                       normal in a world of perpetual disruption.     organizations and leaders to navigate to
  with the present situation and manages
                                                                                                      thrive.
  continuity                                           In recover, we encouraged leaders to
                                                       take five key actions—reflect, recommit,       What’s clear is that thriving in the future
• Recover: How an organization learns and
                                                       reengage, rethink, and reboot—to begin         will not mean the absence of challenges
  emerges stronger
                                                       planning and strengthening their position in   and disruptions. Rather, it means adapting,
• Thrive: How an organization prepares for             the market.                                    adjusting, prioritizing, and creating resilience
  and shapes the “new normal”                                                                         to manage through instability. Thriving
                                                       The respond and recover phases delivered
                                                                                                      means not only planning for the return to
Most organizations’ first priority was                 mixed outcomes: uplifts in workforce
                                                                                                      work in the future of work but embracing
respond—making key decisions and                       productivity and engagement against a
                                                                                                      the new insights and capabilities that
changes that focused on health, safety,                backdrop of well-being challenges and
                                                                                                      COVID-19 has accelerated to reimagine the
essential services, and the virtualization of          increased anxiety—all accompanied by a
                                                                                                      future altogether.
work.                                                  near-constant stream of shifting social and
                                                       cultural currents.

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From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                                                                                                          The future of work in a post-pandemic world

It’s not the future we envisioned              These unintended consequences should               We shifted and untethered the workforce
Starting the shift toward thriving first       not come as a surprise. They are logical           to support the freelance and gig economy
requires an honest reflection on the           outcomes of the same flawed thinking that          without fundamentally rethinking how to
outcomes of the acceleration to the future     has been happening in the future of work for       connect workers to the organization, to its
of work that we have experienced over the      decades.                                           purpose, and to human relationships. We
past year.                                                                                        have focused on the digital experience, but
                                               Throughout the technology evolutions that          underestimated the various factors that
Let’s start with the upside. During the        have shaped the modern workplace, from             build a compelling workforce experience:
COVID-19 pandemic, we have seen                the invention of the steam engine to the           well-being, a sense of belonging, and a
organizations and workers rise to the          personal computer to the smartphone, we            desirable workplace environment where
occasion—unveiling human potential at its      have designed work without regard to the           workers can contribute their full potential.8
best. Whether it’s individuals more freely     worker. Work has been the sum of a series of
adopting remote or virtual work, seeking       tasks and activities, grouped into processes       We have moved workers to virtual work
out new ways to collaborate, being more        and measured by output, organized in an            models and asked them to collaborate
deliberate about what work is essential        assembly line, and automated by machines.          with increasingly global and virtual teams.
and what work outcomes matter most, or                                                            However, we have not embraced the
leveraging the power of technology in new      With the onset of the fourth industrial            opportunity to redesign the physical and
and different ways, working differently and    revolution and the development of smart            digital workplace or the organizational
challenging the orthodoxies of the past        machines and cognitive technologies, we            structures and leadership capabilities
define the new era we’ve entered.              started to do the same thing that we have          required to optimize individual and team
                                               always done. We implemented software               potential in a flexible work environment.
However, we’ve also seen several               to complete routine tasks, generated               And many of us have responded to the
unintended consequences. The                   enormous amounts of data, and pushed               pandemic as if it was a “passing storm,” 9
deterioration of worker well-being,            human workers to keep up with robots               executing as if there is an end in sight with
increased anxiety1 and isolation, and the      on the factory floor. But we failed to             an expectation of reverting to business as
loss of a sense of belonging have been         create new value by unleashing human               usual once the crisis is over. We have been
recurring themes across enterprises.2 We       ingenuity, focusing on efficiency rather than      slow to recognize the foundational shifts
have created an environment where we           reimagining the nature of work and what            the pandemic has produced and to take
want to do more with less. The average         humans are capable of achieving.                   the actions required to create long-term
workday has lengthened by 48.5 minutes,3                                                          resilience.
with 13% more meetings each day, leading
to increasing rates of burnout.4 Fifty-seven   Highlighting the importance                        The difference now is that we have a chance
percent of mothers and 32% of fathers of       of humans in work, one global                      to make a change. We have the opportunity
children younger than 18 report that their                                                        to hit the reset button to reimagine norms
                                               retailer recently ended its
mental health has deteriorated during the                                                         and assumptions in ways that were not
pandemic.5 And the impacts on women            contract with the robotics                         possible before. We can realign the nature
have been profound: Studies show that          company that provided shelf-                       of work, the workforce, and the workplace
nearly 60% of jobs lost in the United States                                                      to build resilience for the long haul. We have
                                               scanning machines to its stores.
due to COVID-19 were held by women,6                                                              the opportunity to thrive.
and mothers in the United Kingdom were         This was a significant reversal
                                                                                                  We should take the time to step back and
47% more likely to have lost their jobs than   from its former plans to expand
fathers during the pandemic.7                                                                     consider: If organizations have been forced
                                               deployment of the robots from                      to accelerate to the future of work because
                                               500 to 1,000 stores. The retailer                  of the constraints of COVID-19, what choices
 Why is this important?                        plans to replace the robots with                   can we make once the constraints come off?
                                                                                                  Is the future of work we’ve seen over the
 According to Deloitte’s 2020 Human            human workers, putting work                        past 10 months the same one we want for
 Capital Trends report, 96% of
 respondents said well-being was a
                                               at the center and focusing on                      the next 10 years?

 responsibility of organizations. But          factors such as the exception                      With that focus, it’s time to shift the thinking
 79% of respondents say that well-being        handling and fine motor skills                     from continued recovery to thriving. Where
 is not designed or integrated into the                                                           do we want to go? How quickly? And how will
 workplace itself.
                                               that the work requires.
                                                                                                  we get there?

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From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                        The future of work in a post-pandemic world

Figure 1

A human approach                                       in today’s technology-driven world. It is        people inspired and energized about those
Since we began writing about the future of             about empowering workers with agency and         work outcomes. This means focusing on the
work, we have framed it in terms of three              choice over what they do, unleashing their       way in which work drives human connection,
deeply interconnected dimensions: work                 interests and passions to organizational         innovation, and creativity. Envision and
(the what), the workforce (the who), and the           strategy and needs. Humanizing the future        pursue the new value you can release
workplace (the where) (figure 1). However,             of work will require leaders to:                 through humans working productively with
the effects of the pandemic have helped                                                                 technology.
us recognize that there is a missing piece in          1. Set the enterprise mindset: Drive the
                                                                                                        3. Reorient from past performance to
this framework. Where many have focused                importance of humanizing the future of
                                                                                                        future potential: Focus on human potential
on the technological implications of these             work as a strategic priority at the enterprise
                                                                                                        as the largest and most valuable asset that
dimensions, we believe the focus should                level. This requires focused and strategic
                                                                                                        an organization has, and drive the future of
be on designing a future of work that is               coordination and collaboration in and
                                                                                                        work vision and strategy through the art of
essentially human. As one very well-known              around the entire enterprise. It means
                                                                                                        the possible. Potential is one of the three
technology CEO recently told us, “We’re in             engaging leaders across functions who
                                                                                                        attributes that we discussed in our 2020
a truly human moment.”10 And it is because             hold accountability for the work and its
                                                                                                        Global Human Capital Trends report that
of that missing human dimension that the               outcomes to create clarity of purpose—
                                                                                                        must be infused across all three dimensions
unintended consequences of the pandemic                including alignment around the mission of
                                                                                                        of work, the workforce, and the workplace in
have emerged, creating this moment                     the organization, what it delivers, and why it
                                                                                                        order to place humans squarely back at the
of opportunity to course-correct and                   exists.
                                                                                                        center.
humanize the future of work.
                                                       2. Recognize that the biggest motivator
Humanizing the future of work is not about             for humans is work itself: Formulate a
putting people ahead of machines. Instead,             vision for the future by putting work at the
it’s about creating an environment where               center and defining the new future work
organizations can optimize human potential             outcomes you want to achieve. Then get

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From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                                                                                                              The future of work in a post-pandemic world

Ultimately, humanizing the future of work           Figure 2
means shifting from concept to action. We
see three significant shifts for work, the
workforce, and the workplace, as outlined
below:

From concept to action
WORK→RE-ARCHITECT
The shift: From process to flow
As we’ve examined the “work” dimension
over the past decade, our focus has largely
been on technology and how it can disrupt
processes and automate routine tasks. As a
result, we have been using outdated models,
searching for efficiencies and process
optimization opportunities without looking
at the underlying principles of what work is
and how it gets done.

When we design the future of work without
addressing the work itself, we miss the             Source: Deloitte analysis
opportunity to unlock real value—for
customers, the organization, the workforce,
and society at large. Work is not just a            human potential by aligning with how              WORKFORCE→UNLEASH THE
series of steps or outputs. Work is what            humans actually think and engage—rather           WORKFORCE
motivates and inspires people. Work is the          than optimizing a robotic process flow?           The shift: From structure to capabilities
center point for creativity and innovation.                                                           and potential
Work conveys purpose and meaning and                How to get started                                In defining the workforce as a key dimension
builds human connection, bringing people            Good architects put the “why” of a building       in the future of work, we largely emphasized
together to get things done. Today, work is         front and center in their design. Re-             changes to who can do the work, with
increasingly owned by a network of teams,           architecting work means doing the same            technological advancements enabling
building and owning the entire value chain of       thing: starting with our future vision and        new models for interaction between
creation. And, if done right, it is the source of   future work outcomes, as well as the value        organizations, workers, and customers.
productivity and bottom-line results.               and meaning we seek to achieve. We can            Over the course of the past few decades,
                                                    re-architect work by:                             the workforce has become increasingly
Our 2021 Global Human Capital Trends                                                                  unleashed and broadly disrupted, with
survey validated this shift in how business         • Defining future work aspirations and
                                                                                                      a slow shift away from the traditional
executives are considering the topic of               outcomes by challenging leadership and
                                                                                                      employer-employee relationship. On
work. Sixty-one percent of those executives           the workforce to think about the art of the
                                                                                                      the demand side, employers have been
reported that they are focusing on work               possible for what human potential can
                                                                                                      rethinking what roles can be transitioned
reimagination going forward, as opposed to            achieve
                                                                                                      to a virtual or hybrid model, as well
29% before the COVID-19 pandemic.                   • Understanding the broad set of                  as a rapid increase in job postings for
                                                      technology capabilities that exist to           freelancer positions. On the supply side,
In re-architecting work, we must start by             transform work and applying them to             an increasing percentage of workers want
acknowledging that humans don’t work                  enable and elevate human capabilities           work that is geographically flexible and
the same way machines do. Humans                                                                      provide opportunities beyond a stated job
work in a more fluid manner, responding             • Thinking past process optimization by
                                                                                                      description. We are unlikely to go back to a
through movement, momentum, creativity,               placing work outcomes at the center and
                                                                                                      time when most talent was constrained by
and exploration, often changing course                focusing on unlocking the flow of work
                                                                                                      the old models of our organizations—nor
and tactics to achieve new outcomes and                                                               should we want to. However, it is also clear
make possible new aspirations. How can                                                                that the current model is not yet unleashing
organizations re-architect work to unlock                                                             human potential, given the high level of

                                                                                                                                                       05
From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                        The future of work in a post-pandemic world

uncertainty and diminished sense of                    • Curating personalized and elevated               To create a new workplace experience
trust in organizations. The key to success               experiences that give workers the                that supports these new behaviors and a
going forward is tethering the unleashed                 opportunity to contribute their full             growing virtual work ecosystem, adaptability
workforce to the organizational mission. By              potential and develop in the flow of work—       is imperative. How do we rethink the
building a sense of connection, both to the              and in the flow of life                          workplace to become more adaptable
work itself and to the larger organizational                                                              when work and the workforce are no longer
ecosystem, workers will accelerate and                                                                    restricted to a physical structure?
                                                       WORKPLACE→ADAPT THE WORKPLACE
enhance their ability to contribute their full
                                                       The shift: From physical workplace to
potential in a meaningful way to the overall
                                                       organization and culture
organizational objective.
                                                       When we first defined the workplace as
The need to enable workers to fulfill their            a key dimension in the future of work, we
potential is clear. Our 2021 Global Human              challenged organizations to consider where
Capital Trends survey found that executives            the work could be done and what physical
believe that the number-one factor in being            environment (including technology and
prepared to thrive in a world of perpetual             design) would make the workplace most
disruption is the ability for workers to adapt,        conducive to delivering the work outcomes          The trend for marketplace
                                                       desired. As COVID-19 has now made clear,
reskill, and assume new roles. Yet only 17%
                                                       the workplace is not limited to the physical
                                                                                                          adoption accelerated as
of those executives believe their workforce
is ready to do so.                                     building, plant, or office. It also includes the   COVID-19 impacted both the
                                                       broader environment that workers operate
                                                       in—their home environments as well as
                                                                                                          supply and demand sides
How can organizations know the true
capabilities and potential of their workforce          their work environments—and even the               of talent, triggering a need
                                                       spaces and coffee shops in between.
beyond the bullets of their job description?                                                              for greater agility around
How do they build and augment their
workforce’s capabilities through technology,           But we need to go even further. We need to         workforce deployment
                                                       recognize that the workplace also includes
all while encouraging their workforce’s
                                                       the organization’s design, processes,
                                                                                                          and talent preservation.
energy and motivation to do meaningful
work?                                                  tools, policies, and ways of working, as           Consumer goods company
                                                       well as the ways in which leaders develop
How to get started                                     and foster culture through expectations
                                                                                                          Unilever, used its internal
Unleashing the workforce means challenging             around how to collaborate, engage, and             talent marketplace, FLEX
how we think about the workforce itself. As            relate to each other. Successfully achieving
the pandemic has highlighted, workers are              such a workplace depends on viewing the
                                                                                                          Experiences, to redeploy
more than the work that they do; they are              organization as both a structural construct        more than 8,000 employees
humans with stories, drive, and limitless              that needs to be engineered for efficiency
potential for flexibility. With this mindset,          and a social construct that needs to be
                                                                                                          during the pandemic and
we need to look beyond the skills for which            nurtured to bring out the best in people.          300,000 hours of employee
individuals were hired and instead focus
on the workforce’s potential, capabilities,            Expanding the way we think about the
                                                                                                          work.11
motivation, and capacities. We can unleash             workplace does not mean we should ignore
the workforce by:                                      or underestimate the important, intangible
• Building a strategy for accessing the                goods cultivated in a physical setting—
  capabilities required to achieve future              collaboration, connection, social interaction,
  work outcomes from across a broader                  creative collision, innovation, social bonding,
  talent ecosystem                                     and lifelong learning. Rather, it creates the
                                                       opportunity to rethink the workplace as
• Harnessing technology to help identify               “phy-gital”—integrating the best of physical
  and unleash human potential within                   space with digital practice while embracing
  and beyond the organization (such as                 constant change.
  by building an internal opportunity
  marketplace)

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From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                                                                                                             The future of work in a post-pandemic world

How to get started                              So, WTF (what’s the future)?
To embrace adaptability in the workplace,       It is imperative to recognize that redefining            Becoming truly
we must build a nuanced understanding of
the workforce’s preferences, as well as the
                                                the human dimension of work is not a
                                                destination. It is a way of transforming and
                                                                                                         adaptable rests on
environments in which they are working—         evolving with a strategic focus on work and              four key pillars
from their homes and commutes to their          the organization’s purpose, meaning, and
leaders, teams, work patterns, and the          value.
                                                                                                         1. Simplify the organizational
collaboration platforms they use. Only then
                                                                                                         architecture to remove unintended
can we create a work environment that will      By shifting the way we think about work, the
                                                                                                         complexity and drive focus. Create
optimize their potential and contribution,      workforce, and workplaces—and by focusing
                                                                                                         a network of teams, remove silos,
empowering all workers with the tools,          on re-architecting work, unleashing human
                                                                                                         flatten the organization, simplify
technologies, and culture to execute and        potential, and adapting the workplace
                                                                                                         the collaboration and decision-
grow. We can adapt the workplace by:            environment—organizations can build
                                                                                                         making processes to allow for agile
                                                resilience, capitalize on their ability to evolve
• Redesigning the physical and digital                                                                   responses to external and internal
                                                with dynamic stability, and start to thrive.
  environment with a focus on collaboration                                                              forces.
                                                This evolution is a continuous process,
  and the role of the physical workplace as
                                                without a single point of entry. Each
  a destination for innovation, networking,                                                              2. Design everything around
                                                organization will face its own set of
  and culture-building                                                                                   “experience,” from the
                                                challenges and opportunities to accelerate
                                                                                                         organizational structure to the
• Focusing on leadership capabilities,          forward. But the destination is clear: a future
                                                                                                         physical workplace, as well as
  ensuring leaders create a culture of trust    designed around the human dimension
                                                                                                         around a clear sense of the
  and confidence that provides the sense        of work, one that promises to unleash the
                                                                                                         outcomes you are driving. This
  of belonging and safety where the entire      energy and endless possibilities of human
                                                                                                         will enable you to focus the design
  workforce can thrive                          potential and, in turn, create lasting value for
                                                                                                         of both the organization and the
                                                workers, their organizations, and society at
• Prioritizing well-being in a meaningful way                                                            workplace to support that shared
                                                large.
  through bold shifts in how work gets done,                                                             work.
  recognizing the shifts in work patterns and
  preferences accelerated by COVID-19                                                                    3. Be human-centered by treating
                                                                                                         employees as the “customer” of
                                                                                                         the operating model and working
                                                                                                         environment, emphasizing
                                                                                                         employee needs and preferences in
                                                                                                         both the physical and digital realm.

                                                                                                         4. Transcend organizational
                                                                                                         boundaries to better sense what is
                                                                                                         around the corner. The workplace
                                                                                                         no longer ends at the exit of the
                                                                                                         office; it is infused into the physical
                                                                                                         and digital fabric of the current and
                                                                                                         potential workforce, customers,
                                                                                                         and ecosystem. By being open to
                                                                                                         new possibilities and taking their
                                                                                                         heads off the page, organizations
                                                                                                         can anticipate future needs and
                                                                                                         opportunities.

                                                                                                                                                      07
From survive to thrive: The future of work in a post-pandemic world - Deloitte
From survive to thrive |
                        The future of work in a post-pandemic world

Authors

                              Erica Volini
                              Principal
                              Global Practice Leader – Human Capital
                              Deloitte Consulting, LLP

                              Steve Hatfield
                              Principal
                              Global Practice Leader – Future of Work
                              Deloitte Consulting, LLP

                              Nicole Scoble-Williams
                              Partner
                              APAC Future of Work Leader
                              Deloitte Tohmatsu Consulting

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From survive to thrive |
                                                                                                                    The future of work in a post-pandemic world

Endnotes
1.   Bryan Robinson, “What Studies Reveal About Social Distancing And Remote    9.   Andrew Blau and Peter Schwartz, “The world remade by COVID-19 Scenarios
     Working During Coronavirus,” Forbes, April 4, 2020                              for resilient leaders” Deloitte, April 4, 2020

2.   Reproduced from Prudential/Morning Consult "Pulse of the American Worker   10. Erica Volini et al., “Leading forward: Leading the shift from survive to thrive,”
     Survey.“ April 29-May 6, 2020                                                  Deloitte Global Human Capital Trends 2021, December 2020

3.   Lucy Meakin, “Working From Home Means Working Longer Hours for Many”       11. Ina Gantcheva et al., “Activating the internal talent marketplace”, Deloitte
     Bloomberg, March 23, 2020                                                      Insights, September 18, 2020

4.   “Burnout has risen by 12% due to COVID-19,” Medium, May 5, 2020

5.   Alice Walton, “Coronavirus Lockdown Is Taking A Toll On Mental Health,
     Especially Among Women, Study Finds” Forbes, April 8, 2020

6.   “Parents, Especially Mothers, Paying Heavy Price for Lockdown” UCL News,
     May 28, 2020

7.   Scott Horsely, “Women Are Losing More Jobs in Coronavirus Shutdown” NPR,
     April 8, 2020

8.   Melanie Langsett, “Elevating the Workforce Experience: The people
     relationships,” Deloitte Capital H blog, November 17, 2020

                                                                                                                                                                        09
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