The number one human capital trend

The number one human capital trend is “redesigning our organisation to be more digital and responsive”. This is the outcome of Deloitte’s latest research.

Agile is becoming mainstream

We see an accelerating shift in organisational structure toward a “network of teams”. Some companies started thinking about “self-organising teams” three years ago. For example, Zappos talked about “holacracy” and its efforts to do away with management. The Dutch ING Bank looked at the potential to apply the disciplines of agile across its business. However, the big topic of “agile organisation design” will start to become more mainstream in 2018.

Human capital, digital?

Human capital

Companies that organise themselves as a network have many digital characteristics. The way people are organised, the way people are rewarded, what managers do, are all different and new.

Many companies want to “become (more) digital”. Digital customer experiences, delivering digital services and continuous improvements in digital apps without friction is on the agenda at 80% of businesses. Because of this, leaders redesign their companies from functional hierarchies to structures based on agile teams. Speed, accuracy and a seamless customer experience are key. Pioneering companies such as Cisco, ING, W. L. Gore, Spotify, as well as most software and consulting firms, now operate this way.

The impact on HR is immense

This change will impact nearly every talent, leadership, and HR practice. Because in an organisation that functions as a network, managers lead projects, not just people. People lend their skills to multiple teams. Teams are often cross-functional, and they must have an easy way to form and change over time in line with what the business needs.

Agile digital organisation

This shift will have an impact on job design, recruiting, goal-setting, careers, rewards, culture, and the role of management. And it drives continuous performance management, digital learning and 21st-century careers.

The door to a whole new industry of software and tools designed to improve productivity is opened. Tools for team-based performance management, goal-sharing, team feedback, learning, project management, and messaging are now standard. On top of this, a new set of leading practices and digital tools is needed to help form, manage, measure, and optimise teams and their performance.

What does this mean for HR leaders?

It’s time to rethink career and talent models. How ready are you to attract, manage, and grow people in a network, rather than a hierarchy? Are your career models, performance management practices, leadership models, L&D and reward systems ready?

Adapted from source

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