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LIVING
AMONG
WOLVES:
WHY THE PACE OF
CHANGE DEMANDS A NEW
APPROACH TO LABOR
ROLF E. KLEINER




                       Å
WITH FOUR KEY PRESSURE
POINTS IMPACTING
BUSINESS GLOBALLY,
HR OUTSOURCING IS
EMERGING AS A CORE
STRATEGY FOR SUCCESS.




CONTENTS
3    IN FAST COMPANY
8    STRATEGY IS NOTHING WITHOUT SPEED
14   SURVIVABILITY IS ADAPTABILITY
18   THE NEED TO FIND A ‘NEW’ WORKFORCE


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1
IN
FAST
COMPANY
THE RATE AT WHICH THE
WORLD IS CHANGING IS
ACCELERATING, POSING A
NEW THREAT TO LONG-TERM
BUSINESS SUSTAINABILITY.




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4 | LIVING AMONG WOLVES: IN FAST COMPANY




IF WE TAKE A LOOK AROUND, IT’S NOT JUST FINANCIAL
MARKETS THAT ARE IN TURMOIL. Social and political environments across
the globe are also in flux. Entrenched governments are falling, new networks and communities
for social change are forming. We’ve entered a time of heightened volatility, increased
instability and significant change—change that is accelerating with each passing day.




As individuals, and as organizations, we are   • It took Apple’s iTunes store nearly three       • Half of what a university student learns
communicating and collaborating about this        years to sell its first billion songs (2003-      in their first year of education is obsolete
change at an astonishing rate:                    2006). Just two years later (June 2008) it        by the time they graduate
                                                  had sold 5 billion. And less than two years
• 3000 books are published every day on           later again (February 2010) it had doubled     • Ten thousand baby boomers exit the
   the earth                                      to 10 billion                                     workforce every day around the world

• There are over 1 billion Google searches     The labor market, as a consequence, is also in    • When children born this week enter the
   conducted and more than 8 billion text      a phase of accelerating change:                      workforce 20-plus years from now, there
   messages sent, every day                                                                         will likely be a very inexpensive computing
                                               • The top 10 jobs a decade from now don’t            device that is more powerful than the
• Over 35 hours of video are uploaded             even exist yet                                    human brain
   to YouTube each minute




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5 | LIVING AMONG WOLVES: IN FAST COMPANY




IF WE REALLY WANT TO UNDERSTAND HOW
THIS RAPID-FIRE CHANGE IS THREATENING THE
SUSTAINABILITY of even well-established, global corporations,
we need only look to industries that have been subject to swiftly changing
consumer behavior and the consequences they’ve experienced.




Think about Blockbuster. In 1985, the first     Netflix (now a major ‘on demand’ provider)       brand to being swallowed up by a once much
Blockbuster store opened in Dallas, Texas.      back in 2000 for just USD 50 million turned      smaller rival.
The expansion of the chain was rapid and        out to be a fatal error. As Blockbuster’s
successful and a culture of home movie          total worth dwindled to around $24 million,      Both the music and film industries have been

viewing grew up and sustained this expansion    Netflix added subscribers to its service at an   turned on their heads in under a decade—a

for just shy of two decades. Then something     astonishing rate, and continues to do so.        very short time in the world of strategic

happened.                                                                                        planning and execution for large global
                                                In the first quarter of 2011 Netflix added       organizations. It is tempting to look back on
As the world of ‘on demand’ took hold and       around 3.3 million domestic subscribers to its   the Blockbuster example and think the shift
Blockbuster’s traditional revenue stream        web-streaming movie and TV products, nearly      and the opportunity was obvious, yet these
began to drop, they faced the ultimate test:    double that of the previous year. Meanwhile, a   dramatic falls are not new.
change and change quickly.                      fire sale of Blockbuster has seen it purchased
                                                by one of Netflix’s major competitors, Dish
Unfortunately, Blockbuster didn’t make it in    Network. It took a little over two decades for
time. Their rejection of an offer to purchase   Blockbuster to go from powerful, successful




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6 | LIVING AMONG WOLVES: IN FAST COMPANY




WHAT IS NEW IS THE INCREDIBLE SPEED WITH
WHICH THESE CHANGES in the competitive landscape are
taking place, and how quickly traditional rivals are trading places.




General Motors (GM) took 30 years to             to earth – but who missed the switch from          competitive landscape where dominance
move from a market-leading position into         analogue to digital. They are now riding the       doesn’t last, even if you think you have a
bankruptcy. In 2007, Toyota surpassed GM         Android wave, but each of the players in the       ‘killer’ product.
as the largest corporation in the world, yet     mobile device segment understands that
holding that position for 30 years, as GM once   change is always knocking at their door. Even      Microsoft did not welcome the news of

did, is increasingly unlikely.                   BlackBerry, once supremely dominant among          Apple surpassing it in terms of market

                                                 corporate users, has been forced to change         capitalization in 2010, nor did Dell when the
In the tech space, the examples of dominant      with the popularity and swift adoption of the      same occurred to them in 2006. Sony is only
market positions changing quickly are even       iPhone and Android.                                too aware that the dominance it once enjoyed
more stark.                                                                                         through its compact disc technology is now
                                                 Business is accustomed to, and thrives on,         harder to match. Tech giants everywhere are
Think Motorola, who dominated the wireless       competition. But this is not just competition      racing to unveil their own tablet computer to
radio market – including having the message      we’re talking about. This is worldwide, frenetic   rival the iPad. And on it goes, change at an
from the first men on the moon beamed back       change, which is fuelling in increasingly fierce   ever-increasing pace.




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7 | LIVING AMONG WOLVES: IN FAST COMPANY




AS WE GAZE IN AWE OF THE SPEED, AGILITY AND
INNOVATION OF THE APPLES AND GOOGLES
OF TODAY, we must remember that big falls come from great
heights. It’s clear that market leaders are acutely aware of the speed of
change in the world they live in, and that they are helping to drive it, but
no one is immune to these dramatic shifts in behavior and sentiment.




Each of the examples above illustrate the          Standing still is not an option. And many
point that the pace of change within the           global organizations have learned the hard
business community is increasing substantially,    way that to operate differently, they need to
and this is redefining the way we must think       think differently.
about business leadership.
                                                   This is why innovative outsourcing solutions
If change is happening faster, even large          are becoming necessary to business
global organizations that traditionally struggle   sustainability over the long term. A workforce
with agility must find ways to:                    that is unencumbered by established
                                                   processes, practices, beliefs, and infrastructure
•	 do more with less;                              is going to challenge the norms of any
                                                   business, but it’s also going to offer new ways
•	 innovate faster;
                                                   to react to rapid market change.
•	 think beyond their current paradigm; and

•	 adapt continuously.




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2
STRATEGY
IS NOTHING
WITHOUT SPEED
SOME 70% OF STRATEGIC PLANS
ARE NEVER EXECUTED. TO STAY
COMPETITIVE, NEW TIMEFRAMES
AND APPROACHES ARE NEEDED
TO BRIDGE THE GAP BETWEEN
STRATEGY AND EXECUTION.




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9 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED




REMEMBER WHEN STRATEGIC PLANS WERE WRITTEN IN
FIVE- TO 10-YEAR TIME SPANS? Remember when they were closely held
secrets at the top of corporations, not widely shared internally, and certainly not externally?




For all of us, in virtually every industry, those   For many large, global organizations, the
days are gone. Commoditized markets have            dream of being fast, lean and agile seems
significantly shortened the business cycle.         perpetually out of reach. We know this
Now, every business must:                           because almost 70% of strategic initiatives
                                                    are never successfully executed, and a 2010
1. do more with less                                Harvard Business Review survey showed
                                                    that just 37% of readers felt their companies
2. innovate more, and more quickly
                                                    were “very good” or “excellent” at
3. be agile and adaptable                           strategy execution.


4. avoid holding on to old paradigms or             As the pace of change in the world around us
   dated thinking                                   increases, and the business cycle contracts,
                                                    the reality is that strategy is nothing without
                                                    speed of execution, and most of us are failing
                                                    that critical test.




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10 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED




IDENTIFYING THE BARRIERS. Two key issues
have occupied the minds of CEOs for some time now.




1. how do we access the skills and                 1. Only select people in the organization
   talent necessary to drive execution                feel that strategy is ‘their job’ – a gap
   of strategy; and                                   between strategy and execution is created

2. how do we effectively collaborate               2. Too few people are engaged in the
   both internally and externally?                    strategy from the outset

Both of these issues— accessing the right          3. The time to write and approve strategies
talent and facilitating effective collaboration—      takes too long and erodes execution time
have meant that the accepted practice of
writing a strategy, getting it approved by the     4. Disengagement from strategy at the

CEO and then going about communicating                lower levels of an organization leads to

and executing it has fundamental flaws. This          poor decision-making

top-down approach means that:




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11 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED




MAKING STRATEGY EVERYBODY’S JOB. Cisco is
the best possible model of how a large global business can operate as a
‘distributed idea engine’, where leadership emerges organically, unfettered
by central command, and strategy is acted out on a continuous basis.




Cisco actively engages large networks              business decisions, or to share ideas, and as a   large numbers of staff vote on the validity and
of staff in boards and councils that have          result decisions are made much, much faster.      popularity of particular component designs.
real decision-making power and financial                                                             Not only has this reduced its product offering
responsibility, as well as their own (sometimes    LEGO too has a broad base of decision makers      and therefore increased its profitability, it has
unorthodox) tools for collaborating and            to execute their strategy—and they learnt to      restored the core values of the brand of quality
sharing information. By mobilizing this army of    do so the hard way. After unleashing designers    and flexibility.
some 500-plus employees to play a significant      to diversify their product offering to an

role in core decision-making, Cisco is seeing      unsustainable 12,000+ items (from 7000 just a     Decision-making, including big picture

business plans drawn up and executed in            few years prior), production costs went through   strategic decisions, can no longer be confined

a fraction of the time it used to take. This       the roof. After the mistake began to take a       to the boardroom.

radical and less stringent approach to process     serious toll on profitability in the mid-2000s,

means they no longer rely solely on the senior     LEGO realized its error. They have since moved

executive team and CEO to make major               to a broad decision-making model, where




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12 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED




BRIDGING THE GAP BETWEEN STRATEGY AND
EXECUTION. No matter how brilliant a strategy may be, if staff do not
have the tools and resources to execute, it will fail.




Obvious though that may seem, resourcing is        change programs, new technology and              remaining competitive, especially when time-
consistently ranked as a key issue for staff in    innovation are all important internal focuses,   sensitive patents are the key to long-term
implementing change.                               accessing a talent pool that can already         profitability. Linking with smaller, more agile
                                                   deliver what you need is a shortcut many         and singular-focused R&D firms to assist with
Without the right people, engaged at the           organizations now need, because they simply      drug development decreases the time to
right time, strategic pace can end up being        don’t have the lead-time they used to.           market for new treatments considerably.
little more than empty activity. Everyone feels
busy, and perhaps even burdened or burnt           The noisy, swiftly changing business             Today, there is a clear relationship between
out, but actual progress is not achieved. This     environment we are all operating within          speed of execution and being open to the
is why HR outsourcing has become a key             creates the need for business partnerships       external market; of moving from ‘push’
ingredient for timely strategic execution.         that create instant value.                       orientation to ‘pull’ orientation, or attracting
                                                                                                    and then engaging like-minded talent in
Internal change and responsiveness to market       Think of big pharma – shortening the time        organizations.
trends is a continual challenge. And while         to market for a new drug is essential to




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13 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED




IT IS NOT JUST ABOUT PRODUCTIVITY.
Engaging external resources to tap into existing expertise
and innovation is not just about operating leaner.




Productivity has been a driver of outsourcing      what of your current practices, processes and      immense. And as that challenge is overcome,
for some time, but it’s not the only one. Being    ways of working?                                   another will be hot on its heels. That is why
able to inject new thinking, to help shift old                                                        managing talent successfully is a balancing act
paradigms and ways of working —and do so           This is not to devalue experience and              between retaining the right people, ideas and
quickly— is also an advantage HR outsourcing       history, particularly when it’s possible that      processes, and accessing new ones as and
can provide.                                       up to 90% of company knowledge is inside           when they’re needed.
                                                   employees’ heads. It’s true that existing
Half of what college graduates today are           talent helps maintain established processes        To be among the 30% of business that
studying will be obsolete by the time they         and objectives, but the biggest challenges         don’t waste their investment in strategy
graduate. The top 10 jobs a decade from            and opportunities ahead are ones we don’t          development, and which go on to execute
now don’t even exist yet. What this means for      even understand yet, let alone have the            their ideas, getting that balance right in an
business is that if current college students are   skills or talent pools to overcome. When           increasingly competitive landscape could well
not learning what you will need them to know       they do arise, the challenge of retraining,        be the key to business sustainability.
in 3 or 5 years time (i.e when you hire them),     redirecting and retooling existing staff will be




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3
SURVIVABILITY
IS ADAPTABILITY
BIOLOGY CAN PROVIDE A
USEFUL INSIGHT INTO THE
THREE MAIN BARRIERS THAT
PREVENT US EMBRACING
CHANGE IN THE WORKPLACE.




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15 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY




BACTERIA ARE MASTERS AT ADAPTABILITY. The most
successful bacteria have a memory that allows them to respond to a threat and
execute a response almost instantly. Then, after the threat is gone, they wipe their
response memory clean in order to remain fully adaptable to the environments
they are in, without being hung up on how they responded to the last threat.
They’re not burdened by the past. For them, survivability is adaptability.




What if, a business operating in its chosen           Yet, companies like Zappos.com have already     Zappos, founded and run on the principles
marketplace could apply these same                    used a strong focus on adaptability to create   of constant adaptation, was purchased by
principles? Imagine if it were unencumbered           a successful alternative business model. One    Amazon for well in excess of $1bn in 2009
by established processes, practices, beliefs,         of their core values —‘embrace and drive        —just a decade after its launch. Clearly, they
and infrastructure—how much faster could it           change’—reflects the link that they have made   were, and are, doing something right.
react to market change?                               between evolution in nature and in business:

When we think about how much we rely on               “We are ever evolving. If we want to continue
existing knowledge, past experience and               to stay ahead of our competition, we must
history to guide us in our decision-making,           continually change and keep them guessing...
the concept of applying this kind of ‘wait            As long as embracing constant change is a
and see’ approach can —at first— seem                 part of our culture, they will not be able to
counterintuitive.                                     evolve as fast as we can.” – Zappos.com




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16 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY




EMBRACING THE NEED TO CONSISTENTLY EVOLVE
IS A MORE ROBUST STRATEGIC PRINCIPLE FOR THE
WORLD WE LIVE IN TODAY than the traditional focuses of scale,
productivity and efficiency. But achieving this requires a dynamic, bottom-up
strategy execution model and this is not an easy shift for many companies.




First, it requires giving up the comforting           This doesn’t mean that we throw out every       •	 The way we think —our collective
idea that with enough research and enough             element of planning and strategic intent, but      decision-making and accepted wisdom
data, professional strategists can predict            it does mean that we begin to see the flaws
the future and plan for it. The issue here is         that this approach has inherently, and look     •	 The process and practices we’ve created

that this approach relies on the threats and          to build our adaptive capabilities to combat       around us

opportunities that strategists see when they          them.
                                                                                                      •	 The infrastructure we rely on to do
are writing the plan remaining relatively static
                                                      Once we begin to accept that we don’t know         our work
until it is implemented. Given that we are
all now operating in an era of heightened             what’s ahead, and that any prediction is just
                                                                                                      The established processes, practices, beliefs,
volatility, instability and accelerating change,      an educated guess, we can begin to shape a
                                                                                                      and infrastructure that we rely upon to make
this is increasingly unlikely.                        business to be more agile and adapt when the
                                                                                                      our business decisions are the very things that
                                                      next challenge or opportunity does become
                                                                                                      can stop us from adapting quickly to change.
The reality is, any strategy is always —by its        clear. To do this, we need to look closely at
                                                                                                      Bacteria don’t have this—they forget what
nature —a strategy for now. We have data,             the three main barriers that might prevent us
                                                                                                      happened yesterday and focus all their energy
we have trends, but these will only lead us to        from embracing change:
                                                                                                      on adapting to what’s happening today.
predictions, and every prediction is flawed.




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17 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY




IT’S EASY TO SEE HOW THE NEW BREED OF
TECH COMPANIES MIGHT BE ABLE TO APPLY
THIS KIND OF RADICAL APPROACH, yet even in a
mature technology-driven marketplace, such as a call centre, the biological
principles of adaptability and of just-in-time thinking can be applied.




We know that managing capacity with                  Companies such as KellyConnect have taken            force—one that wants and needs this kind of        It’s clear, even without a crystal ball to rely
respect to labor in a call center is critical        a more innovative approach to this problem.          flexibility to be able to participate in work.     upon, that HR practice needs to evolve to
because the labor is the most expensive              Using Cloud Computing and remote                                                                        capture these new opportunities and to help
component. One of its biggest challenges             managing and mentoring, KellyConnect can             This ‘workforce virtualization’ is wholly          business adapt more quickly to market forces.
is to deal with the fluctuating nature of the        fluctuate the labor pool in accordance to            enabled by technological change and it             To find the right people at the right time, to
work, especially around peak calling times. If       real-time call activity. By creating a distributed   means that there is an increasing array of         foster flexible and adaptive thinking, and to
peak calling times are at 11 a.m. and 2 p.m.         workforce, including at-home workers, they           jobs, and elements of jobs, that can be tasked     embed a culture that thrives on change, the
how is staff productivity maintained in the          have been able to create the kind of flexibility     to individuals in any part of the globe. Of        way we think about our workforce will have to
intervening three hours?                             that works for their clients and employees.          course, this assists companies to access talent    adapt as well.
                                                                                                          wherever it is, which will become increasingly
Outsourcing whole departments to a                   This sort of technology-led optimization             critical as global demographic shifts see talent
location where labor is cheaper is one way           is applicable not just in call centers, but          pools drying up in most developed nations.
to overcome this. However, the waste is still        anywhere distributed workers need to be              Workforce virtualization is one way to be more
there, it just costs less as result of the labor     coordinated or directed centrally. And it            adaptable, but there are others.
arbitrage.                                           also allows business to tap into a new labor




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4
THE NEED TO
FIND A ‘NEW’
WORKFORCE
MAJOR SOCIAL AND
TECHNOLOGICAL SHIFTS
ACROSS THE GLOBE
MEAN THAT WORKFORCE
VIRTUALIZATION IS NOT ONLY
POSSIBLE, BUT NECESSARY.




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19 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




THE TRADITIONALLY STRONG CORRELATION
between labor, work and location is beginning to break down.




With obvious exceptions, such as frontline        We may know that new technologies have
workers in mining, construction or                made workforce virtualization possible, and
manufacturing, there is a whole slew of work      even relatively simple, but here are two
that can now be ‘virtualized’, or moved to        reasons why it is also becoming necessary:
where the talent is. In a growing knowledge
economy, there are fewer limits on the            •	 psychographic changes across

breadth and scale to which you can globalize          generations means the next workforce has

some functions.                                       different expectations of work, and

                                                  •	 demographic shifts mean that talent
                                                      pools are not where they used to be.




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20 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




FLEXIBILITY IS NEEDED TO MEET TALENT SHORTAGES.
Finding and holding on to the right people is a growing challenge for most
organizations. The trend towards more flexible working arrangements
is, at least in part, both a driver and a solution for this challenge.




Close to half (44%) of the active workforce in     Compared to traditional employees free agents:        Adding them to a permanent payroll is
the United States now consider themselves                                                                costly, particularly as their skills may only be
‘free agents’, compared to 26% in 2008.            •	 Are better educated, with more than a              needed for specific projects or timeframes
This means they are not employed by one               third of free agents possessing a Master’s

organization on a permanent basis,                    degree or higher                                •	 Workers across all generations are seeking

but instead engage in freelance, consulting,                                                             greater flexibility. Retention strategies now
                                                   •	 possess a technical or professional skill set      need to include telecommuting and flexi
temporary or contract work, or have their
own business.                                                                                            work arrangements to hold on to talented
                                                   Being able to access this pool of highly
                                                                                                         individuals
                                                   qualified and experienced talent is becoming
The growth in free agents is partly due to
                                                   paramount when we consider that:                   •	 Productivity gains and the injection of
the economic climate and the need to drive
efficiency and productivity. But even without                                                            new ideas are what many organizations
                                                   •	 Maintaining competitive advantage is
this, the data shows that there is a significant                                                         recognize they need more of
                                                      becoming more difficult. Sourcing just-
increase in the percentage of workers across          in-time talent provides a cost-effective        Accessing a new pool of talented workers
all generations who are now classifying               employment model                                is now easier than it ever has been thanks
themselves as free agents.
                                                                                                      to common technologies that are built to
                                                   •	 The most talented and experienced
                                                                                                      facilitate this virtual working style.
                                                      workers can also be the most expensive.


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21 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




CLOUD COMPUTING REVOLUTION IS ALREADY HERE.
The evidence that cloud computing and virtualization has grown rapidly is
everywhere we look —data shows that job advertisements for cloud computing/
virtualization professionals increased by 344% in between 2009 and 2010.




Every large, global tech company seems            Today, IBM employees’ badges allow them
to have cloud computing and virtualization        access to numerous locations so they are not
solutions as part of their product suite.         anchored to a specific facility. The facilities in
The fact that they themselves use these to        each location are there to help them conduct
mobilize their own workforce should be a          business on a nomadic basis. As a result, IBM’s
good indication that their benefits are real.     workforce is already in a virtual mode.
IBM is an example of a workforce that
has virtualized over the past decade as it
has made the transition from manufacturing
to services.




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22 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




DEMOGRAPHIC SHIFTS MEAN TALENT ISN’T
WHERE IT USED TO BE. Employees’ desires for more flexibility
at work, as well as the economic benefits of that approach are now clear.
Yet, there is another, perhaps ultimately more powerful imperative to
look seriously at work virtualization as a key to business sustainability.




When we examine the global trends emerging        Skip forward to today and the trend of
in workforce demographics, the news is not        reducing workforces has spread out widely
good. The changes are rapid and the impact        across Europe. Central and Eastern Europe
is not clearly understood. What is understood     remain the only real sectors of positive
is that these demographic changes will            workforce growth in the region.
provide significant challenges with respect
to accessing talent and executing in the          Looking at the projections for 2020, the

marketplace.                                      situation is indeed dire right across Europe.
                                                  Turkey remains the only significant region with
In 2000, GeoLabour data showed that               a positively expanding workforce.
across Europe, more people were entering
the workforce than are leaving it. Individual     And it is this unstoppable workforce evolution

countries such as Italy and Germany bucked        that is the driver for HR outsourcing.

the trend and were already at below               No longer just a cost-reduction tool, HR

replacement rate, but on the whole, Europe        outsourcing has emerged as a core strategy

had a sustainable workforce.                      for major companies operating in this new
                                                  workforce reality.




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23 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




UNDERSTANDING HOW AND WHY
GENERATIONS ARE DIFFERENT. Twenty-plus years
ago, when you asked someone what they did for a living, they told
you where they worked. Today, they tell you what they do.




The next generation of employee is wired,         Generation Xers talk about work-life balance.     Employee-employer loyalty is waning, and     continuous connection and conversation into
connected, plugged in and empowered,              Millenials see work and life as one thing—the     it can be tempting for Baby Boomers and      an opportunity. Younger generations see
and this psychographic change across a            line is blurred and if company culture does       even Gen Xers to see younger employees as    technology use as something that defines
generation has significant implications for       not enable this meeting of two worlds, the        demanding and fickle.                        who they are, not just as products they use.
recruitment. For younger generations –Gen X       Gen Y/Millenial employee will leave and go                                                     To harness the power of these always-multi-
and much more so for Gen Y or Millenials:         to the next opportunity—quickly. When we          For older generations of managers who’ve     tasking employees, who see work and life as
                                                  consider that Millenials will make up around      lived repeatedly through restructures,       one interconnected way of being, company
• the attachment of skills to employers is        40% of new hires by 2015, something has to        outsourcing and downsizing, it can feel as   culture must adapt.
   weakening                                      give if the right talent to run an organization   though less experienced Gen Y’s/Millenials

                                                  is to be secured.                                 ‘expect’ rather than ‘earn’ the freedom,
•	 gaining knowledge and broad                                                                      autonomy and influence they demand.
   experience is more important than salary       You want what? When discussing the
   and security                                   impact of these psychographic changes             But the burning debate here must not be

                                                  across the generations, it is easy to focus on    about whether access to Facebook at work
•	 company culture must support bottom-                                                             will damage productivity, it must center
                                                  the negatives.
   up decision-making power                                                                         around turning the Millenials’ mindset of




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24 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE




A NEW APPROACH TO DECISION-MAKING.
Perhaps one of the greatest opportunities that the new generational
psyche brings to the workplace, is that of distributed decision-making.




Even the largest of global businesses are         The Pepsico’s of the world know that when
today exploring heavily with models to            today’s college graduates assess you as a
operate as a ‘distributed idea engine’, where     potential employer, they want to see how
leadership emerges organically, unfettered by     they will fit into your company’s culture.
central command.                                  Demonstrating flexibility, collaboration and
                                                  distributed decision-making will make or
Pepsico is fully engaged in its digital and       break the ability to attract and retain this
social recruiting strategies. A short visit to    new workforce.
their pepsicoblogs.com site shows that they
are intent on connecting and engaging with
their current and future workforce on the
Millenials’ terms – open, two-way dialogue.




                                                                                                 Ã Å
“IF YOU LIVE AMONG
WOLVES, YOU NEED TO
HOWL LIKE A WOLF”
RUSSIAN PROVERB




ABOUT THE AUTHOR
ROLF E. KLEINER is the Senior Vice-President and General Manager of Kelly
Outsourcing & Consulting Group. In this role he is responsible for the strategic
and structural development of the global business practice of KellyOCG.


ABOUT KELLY
Kelly Services, Inc. (NASDAQ:  KELYA, KELYB) is a leader in providing workforce solutions.
Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class
staffing on a temporary, temporary-to-hire and direct-hire basis.  Serving clients around the globe,
Kelly provides employment to more than 530,000 employees annually.  Revenue in 2010 was
$5 billion.  Visit www.kellyservices.com and connect with us on Facebook®, LinkedIn®, and Twitter®.




                                                                                                       Ã   EXIT

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Living among wolves

  • 1. LIVING AMONG WOLVES: WHY THE PACE OF CHANGE DEMANDS A NEW APPROACH TO LABOR ROLF E. KLEINER Å
  • 2. WITH FOUR KEY PRESSURE POINTS IMPACTING BUSINESS GLOBALLY, HR OUTSOURCING IS EMERGING AS A CORE STRATEGY FOR SUCCESS. CONTENTS 3 IN FAST COMPANY 8 STRATEGY IS NOTHING WITHOUT SPEED 14 SURVIVABILITY IS ADAPTABILITY 18 THE NEED TO FIND A ‘NEW’ WORKFORCE Ã Å
  • 3. 1 IN FAST COMPANY THE RATE AT WHICH THE WORLD IS CHANGING IS ACCELERATING, POSING A NEW THREAT TO LONG-TERM BUSINESS SUSTAINABILITY. Ã Å
  • 4. 4 | LIVING AMONG WOLVES: IN FAST COMPANY IF WE TAKE A LOOK AROUND, IT’S NOT JUST FINANCIAL MARKETS THAT ARE IN TURMOIL. Social and political environments across the globe are also in flux. Entrenched governments are falling, new networks and communities for social change are forming. We’ve entered a time of heightened volatility, increased instability and significant change—change that is accelerating with each passing day. As individuals, and as organizations, we are • It took Apple’s iTunes store nearly three • Half of what a university student learns communicating and collaborating about this years to sell its first billion songs (2003- in their first year of education is obsolete change at an astonishing rate: 2006). Just two years later (June 2008) it by the time they graduate had sold 5 billion. And less than two years • 3000 books are published every day on later again (February 2010) it had doubled • Ten thousand baby boomers exit the the earth to 10 billion workforce every day around the world • There are over 1 billion Google searches The labor market, as a consequence, is also in • When children born this week enter the conducted and more than 8 billion text a phase of accelerating change: workforce 20-plus years from now, there messages sent, every day will likely be a very inexpensive computing • The top 10 jobs a decade from now don’t device that is more powerful than the • Over 35 hours of video are uploaded even exist yet human brain to YouTube each minute à Å
  • 5. 5 | LIVING AMONG WOLVES: IN FAST COMPANY IF WE REALLY WANT TO UNDERSTAND HOW THIS RAPID-FIRE CHANGE IS THREATENING THE SUSTAINABILITY of even well-established, global corporations, we need only look to industries that have been subject to swiftly changing consumer behavior and the consequences they’ve experienced. Think about Blockbuster. In 1985, the first Netflix (now a major ‘on demand’ provider) brand to being swallowed up by a once much Blockbuster store opened in Dallas, Texas. back in 2000 for just USD 50 million turned smaller rival. The expansion of the chain was rapid and out to be a fatal error. As Blockbuster’s successful and a culture of home movie total worth dwindled to around $24 million, Both the music and film industries have been viewing grew up and sustained this expansion Netflix added subscribers to its service at an turned on their heads in under a decade—a for just shy of two decades. Then something astonishing rate, and continues to do so. very short time in the world of strategic happened. planning and execution for large global In the first quarter of 2011 Netflix added organizations. It is tempting to look back on As the world of ‘on demand’ took hold and around 3.3 million domestic subscribers to its the Blockbuster example and think the shift Blockbuster’s traditional revenue stream web-streaming movie and TV products, nearly and the opportunity was obvious, yet these began to drop, they faced the ultimate test: double that of the previous year. Meanwhile, a dramatic falls are not new. change and change quickly. fire sale of Blockbuster has seen it purchased by one of Netflix’s major competitors, Dish Unfortunately, Blockbuster didn’t make it in Network. It took a little over two decades for time. Their rejection of an offer to purchase Blockbuster to go from powerful, successful à Å
  • 6. 6 | LIVING AMONG WOLVES: IN FAST COMPANY WHAT IS NEW IS THE INCREDIBLE SPEED WITH WHICH THESE CHANGES in the competitive landscape are taking place, and how quickly traditional rivals are trading places. General Motors (GM) took 30 years to to earth – but who missed the switch from competitive landscape where dominance move from a market-leading position into analogue to digital. They are now riding the doesn’t last, even if you think you have a bankruptcy. In 2007, Toyota surpassed GM Android wave, but each of the players in the ‘killer’ product. as the largest corporation in the world, yet mobile device segment understands that holding that position for 30 years, as GM once change is always knocking at their door. Even Microsoft did not welcome the news of did, is increasingly unlikely. BlackBerry, once supremely dominant among Apple surpassing it in terms of market corporate users, has been forced to change capitalization in 2010, nor did Dell when the In the tech space, the examples of dominant with the popularity and swift adoption of the same occurred to them in 2006. Sony is only market positions changing quickly are even iPhone and Android. too aware that the dominance it once enjoyed more stark. through its compact disc technology is now Business is accustomed to, and thrives on, harder to match. Tech giants everywhere are Think Motorola, who dominated the wireless competition. But this is not just competition racing to unveil their own tablet computer to radio market – including having the message we’re talking about. This is worldwide, frenetic rival the iPad. And on it goes, change at an from the first men on the moon beamed back change, which is fuelling in increasingly fierce ever-increasing pace. Ã Å
  • 7. 7 | LIVING AMONG WOLVES: IN FAST COMPANY AS WE GAZE IN AWE OF THE SPEED, AGILITY AND INNOVATION OF THE APPLES AND GOOGLES OF TODAY, we must remember that big falls come from great heights. It’s clear that market leaders are acutely aware of the speed of change in the world they live in, and that they are helping to drive it, but no one is immune to these dramatic shifts in behavior and sentiment. Each of the examples above illustrate the Standing still is not an option. And many point that the pace of change within the global organizations have learned the hard business community is increasing substantially, way that to operate differently, they need to and this is redefining the way we must think think differently. about business leadership. This is why innovative outsourcing solutions If change is happening faster, even large are becoming necessary to business global organizations that traditionally struggle sustainability over the long term. A workforce with agility must find ways to: that is unencumbered by established processes, practices, beliefs, and infrastructure • do more with less; is going to challenge the norms of any business, but it’s also going to offer new ways • innovate faster; to react to rapid market change. • think beyond their current paradigm; and • adapt continuously. Ã Å
  • 8. 2 STRATEGY IS NOTHING WITHOUT SPEED SOME 70% OF STRATEGIC PLANS ARE NEVER EXECUTED. TO STAY COMPETITIVE, NEW TIMEFRAMES AND APPROACHES ARE NEEDED TO BRIDGE THE GAP BETWEEN STRATEGY AND EXECUTION. Ã Å
  • 9. 9 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED REMEMBER WHEN STRATEGIC PLANS WERE WRITTEN IN FIVE- TO 10-YEAR TIME SPANS? Remember when they were closely held secrets at the top of corporations, not widely shared internally, and certainly not externally? For all of us, in virtually every industry, those For many large, global organizations, the days are gone. Commoditized markets have dream of being fast, lean and agile seems significantly shortened the business cycle. perpetually out of reach. We know this Now, every business must: because almost 70% of strategic initiatives are never successfully executed, and a 2010 1. do more with less Harvard Business Review survey showed that just 37% of readers felt their companies 2. innovate more, and more quickly were “very good” or “excellent” at 3. be agile and adaptable strategy execution. 4. avoid holding on to old paradigms or As the pace of change in the world around us dated thinking increases, and the business cycle contracts, the reality is that strategy is nothing without speed of execution, and most of us are failing that critical test. Ã Å
  • 10. 10 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED IDENTIFYING THE BARRIERS. Two key issues have occupied the minds of CEOs for some time now. 1. how do we access the skills and 1. Only select people in the organization talent necessary to drive execution feel that strategy is ‘their job’ – a gap of strategy; and between strategy and execution is created 2. how do we effectively collaborate 2. Too few people are engaged in the both internally and externally? strategy from the outset Both of these issues— accessing the right 3. The time to write and approve strategies talent and facilitating effective collaboration— takes too long and erodes execution time have meant that the accepted practice of writing a strategy, getting it approved by the 4. Disengagement from strategy at the CEO and then going about communicating lower levels of an organization leads to and executing it has fundamental flaws. This poor decision-making top-down approach means that: Ã Å
  • 11. 11 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED MAKING STRATEGY EVERYBODY’S JOB. Cisco is the best possible model of how a large global business can operate as a ‘distributed idea engine’, where leadership emerges organically, unfettered by central command, and strategy is acted out on a continuous basis. Cisco actively engages large networks business decisions, or to share ideas, and as a large numbers of staff vote on the validity and of staff in boards and councils that have result decisions are made much, much faster. popularity of particular component designs. real decision-making power and financial Not only has this reduced its product offering responsibility, as well as their own (sometimes LEGO too has a broad base of decision makers and therefore increased its profitability, it has unorthodox) tools for collaborating and to execute their strategy—and they learnt to restored the core values of the brand of quality sharing information. By mobilizing this army of do so the hard way. After unleashing designers and flexibility. some 500-plus employees to play a significant to diversify their product offering to an role in core decision-making, Cisco is seeing unsustainable 12,000+ items (from 7000 just a Decision-making, including big picture business plans drawn up and executed in few years prior), production costs went through strategic decisions, can no longer be confined a fraction of the time it used to take. This the roof. After the mistake began to take a to the boardroom. radical and less stringent approach to process serious toll on profitability in the mid-2000s, means they no longer rely solely on the senior LEGO realized its error. They have since moved executive team and CEO to make major to a broad decision-making model, where à Å
  • 12. 12 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED BRIDGING THE GAP BETWEEN STRATEGY AND EXECUTION. No matter how brilliant a strategy may be, if staff do not have the tools and resources to execute, it will fail. Obvious though that may seem, resourcing is change programs, new technology and remaining competitive, especially when time- consistently ranked as a key issue for staff in innovation are all important internal focuses, sensitive patents are the key to long-term implementing change. accessing a talent pool that can already profitability. Linking with smaller, more agile deliver what you need is a shortcut many and singular-focused R&D firms to assist with Without the right people, engaged at the organizations now need, because they simply drug development decreases the time to right time, strategic pace can end up being don’t have the lead-time they used to. market for new treatments considerably. little more than empty activity. Everyone feels busy, and perhaps even burdened or burnt The noisy, swiftly changing business Today, there is a clear relationship between out, but actual progress is not achieved. This environment we are all operating within speed of execution and being open to the is why HR outsourcing has become a key creates the need for business partnerships external market; of moving from ‘push’ ingredient for timely strategic execution. that create instant value. orientation to ‘pull’ orientation, or attracting and then engaging like-minded talent in Internal change and responsiveness to market Think of big pharma – shortening the time organizations. trends is a continual challenge. And while to market for a new drug is essential to à Å
  • 13. 13 | LIVING AMONG WOLVES: STRATEGY IS NOTHING WITHOUT SPEED IT IS NOT JUST ABOUT PRODUCTIVITY. Engaging external resources to tap into existing expertise and innovation is not just about operating leaner. Productivity has been a driver of outsourcing what of your current practices, processes and immense. And as that challenge is overcome, for some time, but it’s not the only one. Being ways of working? another will be hot on its heels. That is why able to inject new thinking, to help shift old managing talent successfully is a balancing act paradigms and ways of working —and do so This is not to devalue experience and between retaining the right people, ideas and quickly— is also an advantage HR outsourcing history, particularly when it’s possible that processes, and accessing new ones as and can provide. up to 90% of company knowledge is inside when they’re needed. employees’ heads. It’s true that existing Half of what college graduates today are talent helps maintain established processes To be among the 30% of business that studying will be obsolete by the time they and objectives, but the biggest challenges don’t waste their investment in strategy graduate. The top 10 jobs a decade from and opportunities ahead are ones we don’t development, and which go on to execute now don’t even exist yet. What this means for even understand yet, let alone have the their ideas, getting that balance right in an business is that if current college students are skills or talent pools to overcome. When increasingly competitive landscape could well not learning what you will need them to know they do arise, the challenge of retraining, be the key to business sustainability. in 3 or 5 years time (i.e when you hire them), redirecting and retooling existing staff will be à Å
  • 14. 3 SURVIVABILITY IS ADAPTABILITY BIOLOGY CAN PROVIDE A USEFUL INSIGHT INTO THE THREE MAIN BARRIERS THAT PREVENT US EMBRACING CHANGE IN THE WORKPLACE. Ã Å
  • 15. 15 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY BACTERIA ARE MASTERS AT ADAPTABILITY. The most successful bacteria have a memory that allows them to respond to a threat and execute a response almost instantly. Then, after the threat is gone, they wipe their response memory clean in order to remain fully adaptable to the environments they are in, without being hung up on how they responded to the last threat. They’re not burdened by the past. For them, survivability is adaptability. What if, a business operating in its chosen Yet, companies like Zappos.com have already Zappos, founded and run on the principles marketplace could apply these same used a strong focus on adaptability to create of constant adaptation, was purchased by principles? Imagine if it were unencumbered a successful alternative business model. One Amazon for well in excess of $1bn in 2009 by established processes, practices, beliefs, of their core values —‘embrace and drive —just a decade after its launch. Clearly, they and infrastructure—how much faster could it change’—reflects the link that they have made were, and are, doing something right. react to market change? between evolution in nature and in business: When we think about how much we rely on “We are ever evolving. If we want to continue existing knowledge, past experience and to stay ahead of our competition, we must history to guide us in our decision-making, continually change and keep them guessing... the concept of applying this kind of ‘wait As long as embracing constant change is a and see’ approach can —at first— seem part of our culture, they will not be able to counterintuitive. evolve as fast as we can.” – Zappos.com à Å
  • 16. 16 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY EMBRACING THE NEED TO CONSISTENTLY EVOLVE IS A MORE ROBUST STRATEGIC PRINCIPLE FOR THE WORLD WE LIVE IN TODAY than the traditional focuses of scale, productivity and efficiency. But achieving this requires a dynamic, bottom-up strategy execution model and this is not an easy shift for many companies. First, it requires giving up the comforting This doesn’t mean that we throw out every • The way we think —our collective idea that with enough research and enough element of planning and strategic intent, but decision-making and accepted wisdom data, professional strategists can predict it does mean that we begin to see the flaws the future and plan for it. The issue here is that this approach has inherently, and look • The process and practices we’ve created that this approach relies on the threats and to build our adaptive capabilities to combat around us opportunities that strategists see when they them. • The infrastructure we rely on to do are writing the plan remaining relatively static Once we begin to accept that we don’t know our work until it is implemented. Given that we are all now operating in an era of heightened what’s ahead, and that any prediction is just The established processes, practices, beliefs, volatility, instability and accelerating change, an educated guess, we can begin to shape a and infrastructure that we rely upon to make this is increasingly unlikely. business to be more agile and adapt when the our business decisions are the very things that next challenge or opportunity does become can stop us from adapting quickly to change. The reality is, any strategy is always —by its clear. To do this, we need to look closely at Bacteria don’t have this—they forget what nature —a strategy for now. We have data, the three main barriers that might prevent us happened yesterday and focus all their energy we have trends, but these will only lead us to from embracing change: on adapting to what’s happening today. predictions, and every prediction is flawed. Ã Å
  • 17. 17 | LIVING AMONG WOLVES: SURVIVABILITY IS ADAPTABILITY IT’S EASY TO SEE HOW THE NEW BREED OF TECH COMPANIES MIGHT BE ABLE TO APPLY THIS KIND OF RADICAL APPROACH, yet even in a mature technology-driven marketplace, such as a call centre, the biological principles of adaptability and of just-in-time thinking can be applied. We know that managing capacity with Companies such as KellyConnect have taken force—one that wants and needs this kind of It’s clear, even without a crystal ball to rely respect to labor in a call center is critical a more innovative approach to this problem. flexibility to be able to participate in work. upon, that HR practice needs to evolve to because the labor is the most expensive Using Cloud Computing and remote capture these new opportunities and to help component. One of its biggest challenges managing and mentoring, KellyConnect can This ‘workforce virtualization’ is wholly business adapt more quickly to market forces. is to deal with the fluctuating nature of the fluctuate the labor pool in accordance to enabled by technological change and it To find the right people at the right time, to work, especially around peak calling times. If real-time call activity. By creating a distributed means that there is an increasing array of foster flexible and adaptive thinking, and to peak calling times are at 11 a.m. and 2 p.m. workforce, including at-home workers, they jobs, and elements of jobs, that can be tasked embed a culture that thrives on change, the how is staff productivity maintained in the have been able to create the kind of flexibility to individuals in any part of the globe. Of way we think about our workforce will have to intervening three hours? that works for their clients and employees. course, this assists companies to access talent adapt as well. wherever it is, which will become increasingly Outsourcing whole departments to a This sort of technology-led optimization critical as global demographic shifts see talent location where labor is cheaper is one way is applicable not just in call centers, but pools drying up in most developed nations. to overcome this. However, the waste is still anywhere distributed workers need to be Workforce virtualization is one way to be more there, it just costs less as result of the labor coordinated or directed centrally. And it adaptable, but there are others. arbitrage. also allows business to tap into a new labor à Å
  • 18. 4 THE NEED TO FIND A ‘NEW’ WORKFORCE MAJOR SOCIAL AND TECHNOLOGICAL SHIFTS ACROSS THE GLOBE MEAN THAT WORKFORCE VIRTUALIZATION IS NOT ONLY POSSIBLE, BUT NECESSARY. Ã Å
  • 19. 19 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE THE TRADITIONALLY STRONG CORRELATION between labor, work and location is beginning to break down. With obvious exceptions, such as frontline We may know that new technologies have workers in mining, construction or made workforce virtualization possible, and manufacturing, there is a whole slew of work even relatively simple, but here are two that can now be ‘virtualized’, or moved to reasons why it is also becoming necessary: where the talent is. In a growing knowledge economy, there are fewer limits on the • psychographic changes across breadth and scale to which you can globalize generations means the next workforce has some functions. different expectations of work, and • demographic shifts mean that talent pools are not where they used to be. Ã Å
  • 20. 20 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE FLEXIBILITY IS NEEDED TO MEET TALENT SHORTAGES. Finding and holding on to the right people is a growing challenge for most organizations. The trend towards more flexible working arrangements is, at least in part, both a driver and a solution for this challenge. Close to half (44%) of the active workforce in Compared to traditional employees free agents: Adding them to a permanent payroll is the United States now consider themselves costly, particularly as their skills may only be ‘free agents’, compared to 26% in 2008.  • Are better educated, with more than a needed for specific projects or timeframes This means they are not employed by one third of free agents possessing a Master’s organization on a permanent basis, degree or higher • Workers across all generations are seeking but instead engage in freelance, consulting, greater flexibility. Retention strategies now • possess a technical or professional skill set need to include telecommuting and flexi temporary or contract work, or have their own business. work arrangements to hold on to talented Being able to access this pool of highly individuals qualified and experienced talent is becoming The growth in free agents is partly due to paramount when we consider that: • Productivity gains and the injection of the economic climate and the need to drive efficiency and productivity. But even without new ideas are what many organizations • Maintaining competitive advantage is this, the data shows that there is a significant recognize they need more of becoming more difficult. Sourcing just- increase in the percentage of workers across in-time talent provides a cost-effective Accessing a new pool of talented workers all generations who are now classifying employment model is now easier than it ever has been thanks themselves as free agents. to common technologies that are built to • The most talented and experienced facilitate this virtual working style. workers can also be the most expensive. Ã Å
  • 21. 21 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE CLOUD COMPUTING REVOLUTION IS ALREADY HERE. The evidence that cloud computing and virtualization has grown rapidly is everywhere we look —data shows that job advertisements for cloud computing/ virtualization professionals increased by 344% in between 2009 and 2010. Every large, global tech company seems Today, IBM employees’ badges allow them to have cloud computing and virtualization access to numerous locations so they are not solutions as part of their product suite. anchored to a specific facility. The facilities in The fact that they themselves use these to each location are there to help them conduct mobilize their own workforce should be a business on a nomadic basis. As a result, IBM’s good indication that their benefits are real. workforce is already in a virtual mode. IBM is an example of a workforce that has virtualized over the past decade as it has made the transition from manufacturing to services. Ã Å
  • 22. 22 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE DEMOGRAPHIC SHIFTS MEAN TALENT ISN’T WHERE IT USED TO BE. Employees’ desires for more flexibility at work, as well as the economic benefits of that approach are now clear. Yet, there is another, perhaps ultimately more powerful imperative to look seriously at work virtualization as a key to business sustainability. When we examine the global trends emerging Skip forward to today and the trend of in workforce demographics, the news is not reducing workforces has spread out widely good. The changes are rapid and the impact across Europe. Central and Eastern Europe is not clearly understood. What is understood remain the only real sectors of positive is that these demographic changes will workforce growth in the region. provide significant challenges with respect to accessing talent and executing in the Looking at the projections for 2020, the marketplace. situation is indeed dire right across Europe. Turkey remains the only significant region with In 2000, GeoLabour data showed that a positively expanding workforce. across Europe, more people were entering the workforce than are leaving it. Individual And it is this unstoppable workforce evolution countries such as Italy and Germany bucked that is the driver for HR outsourcing. the trend and were already at below No longer just a cost-reduction tool, HR replacement rate, but on the whole, Europe outsourcing has emerged as a core strategy had a sustainable workforce. for major companies operating in this new workforce reality. Ã Å
  • 23. 23 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE UNDERSTANDING HOW AND WHY GENERATIONS ARE DIFFERENT. Twenty-plus years ago, when you asked someone what they did for a living, they told you where they worked. Today, they tell you what they do. The next generation of employee is wired, Generation Xers talk about work-life balance. Employee-employer loyalty is waning, and continuous connection and conversation into connected, plugged in and empowered, Millenials see work and life as one thing—the it can be tempting for Baby Boomers and an opportunity. Younger generations see and this psychographic change across a line is blurred and if company culture does even Gen Xers to see younger employees as technology use as something that defines generation has significant implications for not enable this meeting of two worlds, the demanding and fickle. who they are, not just as products they use. recruitment. For younger generations –Gen X Gen Y/Millenial employee will leave and go To harness the power of these always-multi- and much more so for Gen Y or Millenials: to the next opportunity—quickly. When we For older generations of managers who’ve tasking employees, who see work and life as consider that Millenials will make up around lived repeatedly through restructures, one interconnected way of being, company • the attachment of skills to employers is 40% of new hires by 2015, something has to outsourcing and downsizing, it can feel as culture must adapt. weakening give if the right talent to run an organization though less experienced Gen Y’s/Millenials is to be secured. ‘expect’ rather than ‘earn’ the freedom, • gaining knowledge and broad autonomy and influence they demand. experience is more important than salary You want what? When discussing the and security impact of these psychographic changes But the burning debate here must not be across the generations, it is easy to focus on about whether access to Facebook at work • company culture must support bottom- will damage productivity, it must center the negatives. up decision-making power around turning the Millenials’ mindset of à Å
  • 24. 24 | LIVING AMONG WOLVES: THE NEED TO FIND A ‘NEW’ WORKFORCE A NEW APPROACH TO DECISION-MAKING. Perhaps one of the greatest opportunities that the new generational psyche brings to the workplace, is that of distributed decision-making. Even the largest of global businesses are The Pepsico’s of the world know that when today exploring heavily with models to today’s college graduates assess you as a operate as a ‘distributed idea engine’, where potential employer, they want to see how leadership emerges organically, unfettered by they will fit into your company’s culture. central command. Demonstrating flexibility, collaboration and distributed decision-making will make or Pepsico is fully engaged in its digital and break the ability to attract and retain this social recruiting strategies. A short visit to new workforce. their pepsicoblogs.com site shows that they are intent on connecting and engaging with their current and future workforce on the Millenials’ terms – open, two-way dialogue. Ã Å
  • 25. “IF YOU LIVE AMONG WOLVES, YOU NEED TO HOWL LIKE A WOLF” RUSSIAN PROVERB ABOUT THE AUTHOR ROLF E. KLEINER is the Senior Vice-President and General Manager of Kelly Outsourcing & Consulting Group. In this role he is responsible for the strategic and structural development of the global business practice of KellyOCG. ABOUT KELLY Kelly Services, Inc. (NASDAQ:  KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis.  Serving clients around the globe, Kelly provides employment to more than 530,000 employees annually.  Revenue in 2010 was $5 billion.  Visit www.kellyservices.com and connect with us on Facebook®, LinkedIn®, and Twitter®. Ã EXIT