Learning Insights from June 2023

Here are the articles about what is happening in the workplace that I found more interesting in recent months.

1. Microsoft Work Trend Index: The report explores the question of whether AI can fix work. The index reveals three key findings. Firstly, outdated systems and processes create "digital debt" that hampers innovation and prevents organizations from fully utilizing AI technologies. The study highlights that 68% of people feel they lack uninterrupted focus time during the workday, and workers spend a staggering two full days per week on email and in meetings. Secondly, there is a growing trend towards a new alliance between AI and employees. Instead of fearing job replacement, employees now view AI as a tool for augmentation. Organizations are also prioritizing AI ethics and transparency. Lastly, the study emphasizes the need for every employee to have AI skills. Upskilling and fostering a culture of AI literacy are crucial to empower employees to collaborate effectively with AI technologies. By addressing digital debt, nurturing the AI-employee alliance, and investing in AI skills, organizations can unlock the full potential of AI and drive workplace innovation. According to 82% of leaders surveyed, employees will need new skills to adapt to the growth of AI.

2. World Economic Forum - The Future of Jobs Report 2023: This is a fascinating read, packed with data, insights, and cool visualizations. They collected information from 803 companies and a whopping 11.3 million workers to examine how jobs and skills will change in the next five years and how the Fourth Industrial Revolution will continue to shape the world of work. The report is pretty long, almost 300 pages, but I'll share some of the highlights that caught my eye. First, they predict that 23% of jobs will change by 2027, with 69 million new jobs being created and 83 million disappearing. That's a significant shift! Second, they estimate that 44% of individual workers will need to update their skills by 2027. It's important to stay up to date! Third, they identified three main drivers of job change: the green transition, technology (both creating and eliminating jobs), and the economic outlook. And finally, the top two most sought-after skills in 2023 are analytical thinking and creative thinking. Those are some valuable skills to have!

3. McKinsey - New leadership for a new era of thriving organizations: This excellent McKinsey article talks about the need for a new kind of leadership in today's thriving organizations. They believe that we're moving away from having individual leaders and towards having leadership teams that work together to guide the organization. They highlight five important shifts that leaders need to make in order to succeed in the modern business world. These shifts include adopting an owner's mindset, embracing ecosystem leadership by collaborating with external partners, leading with empathy and purpose, building organizational resilience, and promoting a culture of continuous learning. The article gives examples of companies like Netflix, Aon, Intuit, and DBS Bank that have successfully implemented these shifts. For example, Netflix empowers its employees to make decisions and take risks, Aon collaborates with external partners to add customer value, Intuit creates a strong sense of mission and purpose among its workforce, and DBS Bank adopts a forward-thinking approach and embraces digital transformation. By embracing these leadership shifts, organizations can thrive despite constant disruption, driving innovation, resilience, and sustainable growth. These companies understand that creating an environment where everyone feels a sense of belonging and psychological safety is crucial for unlocking the full potential of their employees.

4. Deloitte - Beyond Productivity: The journey to the quantified organization: Deloitte recently published a report discussing the future of work and generative AI. The report defines a "quantified organization" as strategically measuring what it should rather than just what it can. These organizations responsibly utilize new data sources and AI tools to improve workforce trust and achieve higher levels of financial, reputational, and operational performance. The report emphasizes the opportunities presented by leveraging work and workforce data to gain a comprehensive understanding of the organization and create value for individuals, teams, the organization itself, and society. It is divided into three sections: exploring new data and its potential, creating shared value through data (based on four levels of shared value), and building trust through responsible practices (based on four principles of responsibility).

5. MIT - Managing the Cultural Pitfalls of Hybrid Work: The article discusses the challenges and benefits of hybrid work models in the context of the pandemic era. It highlights that while hybrid work reduces attrition rates and improves employee satisfaction, it also poses cultural pitfalls. Remote work has weakened company culture for some leaders, particularly affecting younger employees who struggle to integrate. The article provides 11 suggestions to help leaders build a thriving hybrid work culture, including developing new mentoring and coaching models, establishing virtual communities of practice, creating social bonding time through virtual events, identifying in-person opportunities for connection, and leveraging digital tools to reinforce culture. Ensuring equity among remote, hybrid, and in-person employees, challenging in-group/out-group thinking, and fostering initiative-taking are also emphasized.

6. Harvard Business Review- How the Best Leadership Teams Navigate Uncertain Times: The article discusses the challenges faced by CEOs and senior management in the current global economy. It highlights seven common factors among high-performing companies: fostering a "company-first" culture, thinking and acting across the enterprise, maintaining a focus on reinventing the business, freeing up dedicated individuals for business transformation, embracing diversity in leadership teams, encouraging healthy debate while maintaining unity, and striving for humility and objectivity. These factors play a critical role in driving success, growth, and shareholder value in the midst of ongoing economic challenges.