WORKFORCE OF THE FUTURE A future that works: Harnessing automation for a more productive and skilled workforce TUESDAY, 25 JUNE 2019 | 11.15AM ARNE GAST Partner, Leader of McKinsey's Organization Practice in Asia Pacific (McKinsey & Company, Malaysia) McKinsey & Company
Our challenge is mobilizing minds The changing pattern of size of productivity 1984 2004 2017 Net income/employee (performance) 1 Net income/employee (performance) 1 Net income/employee (financial) Top 150 firms by MV Top 150 firms by MV Top 300 firms by MV 2 USD thousands USD thousands USD thousands 300 300 300 250 250 250 200 200 200 150 150 150 100 100 100 50 50 50 0 0 0 0 100 200 300 400 500 0 100 200 300 400 500 0 100 200 300 400 500 600 700 Employees Employees Employees Thousands Thousands Thousands 1 Excluding outliers and companies with negative net income; constant 2004 dollars 2 Includes the following industries: Utilities, Financial Institutions, Information Technology, Healthcare, Automobile and components, Commercial and Professional Services, Real Estate and Energy Source: Lowell L. Bryan and Claudia I. Joyce. “Mobilizing Mind” (2007) – updated 2017 McKinsey & Company 2
“Workforce for the Future” needs 5 strategies WHY? Productivity Strategy • • Determine productivity pathway Build capabilities for your strategy • • Choose automation speed Adjust to regulation WHO? Skill hours strategy WHERE? Location Strategy HOW? Organization Strategy • Deal with “ city pull” • Skill up Social/Emotional Skills • Focus on your core • Decide on talent hot spots • Skill out Manual Skills • Renew operating model • Domino upskilling • Know where you talent is • Change EVP • … • … • …. WHAT? Mobility Strategy • Massive action plan • Start mobility center • … • Align your ecosystem • Shift mindsets • … McKinsey & Company 3
WHY? Determine your productivity pathway Measure productivity granularly... … and choose your path for competitiveness 1 Across all assets Drive organization wide By asset type productivity uplift By asset maturity … 2 Build “old” for efficiency and “new” for effectiveness Across corporate functions 3 ….. By subfunction McKinsey & Company 4
WHY? Decide your speed to capture automation potential ...yet less then 10% of jobs are full automatable Activities are automatable across industries… FTE weighted % of technically automatable activities 1 , (%) Manufacturing 64 Accommodation/food services 58 Transportation/warehousing 55 Mining 53 Retail trade 53 50 Oil & Gas Agriculture, forestry, fishing and hunting 47 Construction 44 Finance/insurance 44 Utilities 44 Real estate/rental and leasing 43 Other services 41 Information 40 Arts/entertainment/recreation 40 Administrative/support/waste management 39 Professional, scientific, and technical services 38 Health care/social assistance 37 Management of companies/enterprises 36 Educational services 31 1% ~100 ~60% ~30 of occupations of tasks of occupations of tasks have close to automatable.. have automatable 1 We define automation potential by the work activities that can be automated by adapting currently demonstrated technology Source: McKinsey Global Institute Global Automation Impact Model; McKinsey Global Institute analysis McKinsey & Company 5
WHY? Your strategy will need new institutional capabilities Technological trends Implications Advanced AI to interpret seismic images, improving New and more complex analytical methods required to Analytics hit rate and removing human error maximize the value of large data Real-time advanced analytics models Reduced exploration costs by less need for manual analytics optimizing topside and subsurface settings work Robotics Autonomous pipeline inspections using Production increased through optimization and automated submarine drones production controls Robotic handling of hazardous activities Digital and Technical (i.e. robotics, programming) skills become ‘core’ as technological solutions replaces manual labor (e.g. pipe handling) Process Augmented reality to provide training on Eliminate the need for human intervention in non-decision making functions through artificial intelligence, machine vision digitization complex procedures (advanced simulation) Next generation BIM models significantly Higher-level, uniquely human cognitive abilities become the differentiator as lower value tasks are automated reduces engineering hours Completely new, agile business models – enabled by digitization Business model Data sharing allows for supplier to take an innovation lowering distribution and transaction costs end-to-end responsibility Digital enables working closer with Design thinking skills required for integrated planning and suppliers with fewer inefficient interfaces coordination with supplies, reducing CAPEX McKinsey & Company 6 Source: McKinsey Organization in Oil & Gas Service Line
WHO? Some skill-hours will go up , yet some other skill-hours will go down Evolution in skill categories Skill categories Example skills Percent hours worked, Energy sector Physical and Manual service or maintenance tasks manual skills Facilities or operational system monitoring 34 43 Basic cognitive Basic data input and processing skills Basic literacy, numeracy and communication 9 Higher cognitive Project management 11 21 skills Information interpretation and decision making 20 Social and Adaptability and continuous learning 17 emotional skills Entrepreneurship and initiative taking 14 Technological Advanced data analytics and mathematical skills 19 14 skills Tech design and engineering 2016 2030 Source: McKinsey Global Institute analysis McKinsey & Company 7
WHO? ‘Domino reskilling’ will help to bridge skill hours - gaps ‘Domino’ development path from Mortgage Loan Officer to Management Analyst 76.8% 80.1% 77.9% Percentage skill overlap between Mortgage Credit Financial Management roles loan officer analyst analyst analyst Shortcut 53.0% Shortcut 59.3% Note: Skill clusters were computed based on global LinkedIn database. Skill clusters were then mapped to job roles. Transitions between job roles suggested based on similarity of skills. Source: McKinsey People Analytics McKinsey & Company 8
WHERE? Use “outside in” data to address talent questions What is the your distribution of How does your sourcing compare to key skills and how does it compare other organizations and where are there to other organizations? potential sources of untapped talent? ClientCo PeerCo PeerCo Washington North Montana Vermont Maine Minnesota Dakot Oregon a New Hampshire South Wisconsin Idaho Massachusetts New York Dakota Wyoming Rhode Island Michigan Connecticut Iowa Pennsylvania Nebraska Nevada Ohio New Jersey Indiana Utah Illinois Delaware West Colorado Washington, DC California Kansas Virginia Maryland Missouri Virginia Kentucky North Carolina Tennessee Arizona Oklahoma Arkansas South New Mexico Carolina Mississippi Georgia Alabama Texas Florida Louisiana McKinsey & Company
WHAT? Massive action to bridge skill hour gaps Areas of interventions Levers 1. Reskill existing employees 2. Upskill existing employees BUILD upon existing workforce via… A 3. Retain employees with scarce skills 4. Reshape jobs and projects to focus scarce skillsets on key work SHORTAGE : 5. Acqui-hire entire organizations ACQUIRE Today, by… 6. Recruit ready-now individuals How do I close new, in-house 7. Rent-to-acquire individuals B a skill gap? workers that 8. Create and recruit from new pools of potential hires are ready… Tomorrow, by… 9. Recruit for intrinsic and building skills needed I will... How do 10. Form strategic partnerships (e.g., JVs) I adjust my 11. Outsource entire function(s) RENT new, external workers volume & C through… variety of 12. Contract out work to an organization or individual skill- 13. Activate gig economy by creating discrete, paid tasks for freelancers hours? 14. Rent workers out to other entities REDEPLOY workers I do not need but D cannot release, by… 15. Shift unneeded skillsets to next-best alternatives OVERAGE : 16. Terminate employees thoughtfully How do I 17. Encourage voluntary attrition and not back-filling address a skill RELEASE workers by… E 18. Divest business units source I no 19. Create contractual options to end relationships longer need? 20. End contracts with rented talent I will… 21. Accelerate business demand in order to match supply GROW by… F McKinsey & Company 10
Recommend
More recommend
