Bank Mandiri HR Symposium

The Future of Work

26 September 2017
The world is changing
Workforces are changing
Leaders in a Disruptive Era
No-regrets moves
Workforce of the future September 2017
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The world is changing
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The future of work
At the beginning of the century,
Ray Kurzweil, Futurist and Chief
Engineer at Google, predicted
that 20,000 years of
progress would be crammed
into the next 100.

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Global megatrends
Demographic shifts
The changing size, distribution and age profile of the world's population

Shifts in global economic power

Power shifting between developed and developing countries

Resource scarcity and climate change

Depleted fossil fuels, extreme weather, rising sea levels and water shortages

Rapid urbanisation
Significant increase in the world’s population moving to live in cities

Technological breakthroughs
Rapid advances in technological innovation

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Digital decade

2006 2007 2008 2009 2010 2011

Launch of Twitter Apple launched Airbnb launched Launch of Uber GO-JEK launched Global population
iPhone in Indonesia passed 7 billion
Google became a Global Financial Tokopedia
verb Facebook became Crisis launched
mainstream

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Digital decade

2012 2013 2014 2015 2016

Lazada enters More 64 billion GO-JEK Blue Bird
Indonesia mobile devices WhatsApp expands their partnered with
and connections messages sent business with GO-JEK
than people on in a single day GO-FOOD
the earth Top 5 largest
Uber & Grab companies in the
officially enter world by market
Jakarta cap were all digital
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 2017 50% of the world
population is on
the internet
37% is on
social media

PwC
Sources: Internet World Stats, UN Broadband Commission, Statista; Digital in 2017: Global Overview, wearesocial; Cyber-attack: Europol says it was unprecedented in scale, BBC
Workforces are changing
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Uncertainty: The human impact
Business fragmentation: Small is powerful.
Large businesses lose their dominance as customers seek relevance and
organisations find scale a burden rather than a benefit. Social bubbles and affinity
groups take on a new importance. Many could not exist without digital platforms

Collectivism:
Fairness and equality dominates. Individualism:
Where “me” first rules.
The common good prevails over
personal preference, e.g. collective A focus on individual wants; a
responsibility for the environment, response to the infinite choices
social good and “fairness” over available to consumers.
individual interest.

Corporate integration: Big business rules all.

Companies get bigger and more influential - the biggest have more
influence than some nations. Brands span many business areas.
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 Workforces are changing…

Brains+bots
Purpose

Discretionary effort
Ageing Soft skills
Talent mix Generations
Flexibility

Global
Diversity Work/life
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Plan for many scenarios

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Leaders in a Disruptive Era
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CEOs focus on tech and talent
CEOs’ concerns over technology and skills top their list of business threats to growth:

77% of FS
CEOs 73% of CEOs
concerned 60% of CEOs
concerned
about speed of rethinking HR
about limited
function
availability of tech change
skills

“As technology in the workplace increases, it will have a big impact on both people
and culture. It’ll change the type of people you employ. It’ll change the culture of
delivery within the organisation.” Peter Harrison, Group CEO, Schroders Plc

* 487 financial services (FS) CEOs in 71 countries participated in PwC’s 20th CEO Survey
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Leadership is a key differentiator
The future is happening. Own the automation debate.
This isn’t about some ‘far future’ of work – change is Automation and Artificial Intelligence (AI) will affect every level
already happening, and accelerating. of the business and its people. It’s too important an issue to leave
to IT (or HR) alone. A depth of understanding and keen insight
No regrets and bets. into the changing technology landscape is a must.
The future isn’t a fixed destination. Plan for a
dynamic rather than a static future. You’ll need to
People not jobs.
recognise multiple and evolving scenarios. Make ‘no Organisations can’t protect jobs which are made redundant by
regrets’ moves that work with most scenarios – but technology – but they do have a responsibility to their people.
you’ll need to make some ‘bets’ too. Protect people not jobs. Nurture agility, adaptability and re-
skilling.
Workforce is anxious.
A third of workers are anxious about the future and of CEOs say they’re already
their job due to automation – an anxiety that kills
confidence and the willingness to innovate. How
your employees feel affects the business today – so
start a mature conversation about the future.
52 %
exploring the benefits of
humans and machines
working together
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…and leaders must adapt
Acquiring The Right Developing The Right Fostering High Recognizing employees
People Skills Performance Culture based on outcome

A need for people with a
hybrid of skills and ability to
deal with complexity.
Attitude rather than talent
becomes the differentiator in
this era.
Digital tools allow for new
and innovative talent
acquisition strategies.
To deal with the complex
issues in the digital era, your
talent needs to have the right
skills to solve these issues.
Training your people is vital
to keep your organization
relevant in the digital era.
Technologies change faster
than most people are able to.
As ways of working adapt so
does the culture in an
organisation.
Leaders need to ensure
employees feel empowered
and supported to take
calculated risks.
People needs to be measured
based on their unique
contribution to the
organization, rather than the
processes they complete.
A good performance
management system will
enable you to make informed
decisions about your people

“We need multi-talented people who not only understand one piece of technology or one
piece of commercialisation but rather the whole chain.” – Pekka Lundmark, CEO, Konecranes Plc.
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But are leaders ready?

Leaders in
transformational era must
be able to imagine and
articulate a vision for
their organisation’s future
while ensuring it also runs
effectively in the
present.

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Becoming transformational leaders
A re-framing mind
The ability to see situations from multiple, rather than single,
perspectives.
A re-framing mind
Leading with vulnerability Acting on the big and small
and courage picture
Leading with Acting on the big Leaders who move between vision
Vulnerability is key to enabling others vulnerability and and detail, keep a clear sense of
to both take responsibility and give and small picture
honest and frank feedback, an all too courage direction and strategy and an ability
to understand and influence the
rare commodity for leaders. micro-dynamics of a system.

Positive use of language
Use the ‘action’ of language with
awareness, skilfulness and an
Positive use of
intention to create positive outcomes.
Key capabilities
Passionate detachment
Leaders need to be passionate.
Passionate They also need to be able to stand
language detachment back and detach themselves from
their endeavours, to be able to see
them objectively and change their
position if new insight requires it.

Creative use of
Creative use of power power
Leadership is the exercise of power: formal and informal,
institutional and personal.
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No regrets moves
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No regrets moves for leaders
Linear predictions don’t cut it
• Plan for multiple and emerging visions of the
future using a scenarios approach.
Make decisions based on purpose and values
• Build a future-looking understanding of how
humans and machines might collaborate to
deliver your corporate purpose.
• Clarify your values and behaviours that
underpin your policies, processes, decision-
making and priorities.
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• Understand clearly how each creates different
workforce challenges and implications.
2
• Identify and engage with internal and external
stakeholders to manage their expectations and
co-create the future of work.
• Create an open and transparent narrative on how
you are influencing, planning and delivering on the
future of work – for your organisation, society and
individuals.
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No regrets moves for leaders
Embrace technology as a force for good
• Clarify how digitalization, automation, robotics
and artificial intelligence can enable the redesign
of work, enhance productivity and customer
experience, and enable a focus on more value-
added tasks.
Focus on the humans and the humane
• Understand the skills you have in your workforce
now (not just the roles your workers currently do)
and the gaps to the skills you need in the future.
• Build and nurture adaptability in your workforce
by harnessing a flexible talent mix, new ways of
working and learning, and radically different career
paths.
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• Use sophisticated workforce planning and
predictive analytics to plan for talent pipelines in
multiple future scenarios.
• Look for ways technology can enhance your people
offering for potential and existing employees.
4
• Make talent and capabilities management a
matter of urgency - or risk losing the battle to
harness breakthroughs and innovation in your
sector.
• Strengthen innovation, creativity, empathy and
leadership capabilities - alongside critical
technology skills.
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So what should we tell our children?
“..to stay ahead, you need to focus on your
ability to continuously adapt… For
students, it’s not just about acquiring
knowledge, but about how to learn. For the
rest of us, we should remember that
intellectual complacency is not our
friend and that learning – not just new
things but new ways of thinking – is a life-
long endeavour.”
Blair Sheppard
Global Leader, Strategy and
Leadership Development, PwC

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“As we look ahead into the next “True leaders don’t create followers.
century, leaders will be those who They create more leaders.”
empower others.” Anonymous
Bill Gates

“When you're finished

changing, you're finished.”
Benjamin Franklin
“Before you are a leader, success is all
“It is not the strongest or the most
about growing yourself. When you
intelligent who will survive but those
become a leader, success is all about
who can best manage change.”
growing others.”
Charles Darwin
Jack Welch
PwC
 Are you ready?

PwC
Find out more…

www.pwc.com/futureworkforce

Workforce of the future: The competing forces shaping 2030 3 September 2017
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www.pwc.com/people
Malcolm Foo
Partner PwC South East Asia Consulting,
Advisor PwC Consulting Indonesia

Malcolm.foo@id.pwc.com

© 2017 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to
the Indonesia member firm, and may sometimes refer to the PwC network. Each member firm
is a separate legal entity. Please see www.pwc.com/structure for further details.