Our Future Leaders

Our Future Leaders Today’s Business Leaders Reflect on Tomorrow’s Work World—From the Perspective of Their Children ABOUT THIS SURVEY In March and April 2017, Russell Reynolds surveyed more than 300 senior leaders, nearly half of whom sit in the C-suite, on what it will take to be successful in the workplace of the future. Eighty-eight percent of survey respondents were parents. The study consisted of an online survey fielded by ClearVoice Research and five in-depth interviews with prominent business executives. 2 | OUR FUTURE LEADERS: TODAY’S BUSINESS LEADERS REFLECT ON TOMORROW’S WORK WORLD Will Siris and Alexas fit seamlessly into the workforce? Will artificial intelligence replace the seemingly inextricable human element of leadership? Will organizations become more or less hierarchical, and will companies look at all the same? We set out to understand what the future of work might hold for our children and generations to come. In the spring of 2017, Russell Reynolds surveyed and interviewed more than 300 senior leaders, nearly half of whom sit in the C-suite, on what it will take to be successful in the workplace of the future. Eighty-eight percent of survey respondents were parents, and we wanted to know what they hope their children and grandchildren will find when it’s time for them to join the working ranks. OUR FUTURE LEADERS: TODAY’S BUSINESS LEADERS REFLECT ON TOMORROW’S WORK WORLD | 3 Overall, many of these executives, like many other A NEW WORLD—AND SKILLS TO MATCH experts, believe that technological advancements, AI Much has been written about how computers and and robotics will drastically change the future of work. technology will remake the future of work, and the But many said this metallic new world will place sur- executives we surveyed tended to agree. When asked prising value on warmth and humanity: Purpose-driv- which forces will most significantly impact how peo- en organizations will be best able to hire and retain ple work in the future, 28% of respondents said tech- young workers, while those workers will benefit from nological advancements and innovations, followed skills like creativity and problem-solving over pure by artificial intelligence and robotics (18%), and new technical know-how. Looking back at their own ca- disruptive models (16%). reers, these senior leaders also had insightful advice Interestingly, business leaders were even more likely for future generations. to rank artificial intelligence and robotics as a critical EXHIBIT 1. TECHNOLOGY WILL REVOLUTIONIZE THE FUTURE WORKPLACE. What will have the most impact on how people work in the future? INTENSITY INDEX1 PERCENTAGES Technological advancements 100 and innovations 28% Artificial intelligence 73 18% and robotics New disruptive 68 business models 16% Demographic shis like aging 56 populations and changes 11% in racial/ethnic mix Shis in global 32 5% economic power Outsourcing and offshoring 30 to alternate labor markets 4% Access to high-quality 27 4% healthcare Improved mobility and 26 transportation infrastructure 4% Scarcity of natural resources 23 4% and climate change 21 The end of retirement 3% 18 Continued urbanization 2% 5 Other 1% 1 To measure the degree of impact, respondents were asked to allocate 100 points across their answers. Source: RRA Future Leaders Study, 2017; n = 307 4 | OUR FUTURE LEADERS: TODAY’S BUSINESS LEADERS REFLECT ON TOMORROW’S WORK WORLD Conceptual skills will be far more important, as well as creative skills and the ability to function in unstructured environments. Vasant Prabhu, CFO of Visa trend, perhaps already seeing the impact of these the organization (15%). Skills like collecting and pro- technologies in their daily lives. cessing information ranked dead last at 5%—because they’re viewed as easily replaced by technology. Because of these predicted tech advancements, executives say technical skills will become less import- In fact, the biggest skill needed in the near future ant, replaced by skills computers can’t copy—yet. may be the ability to react to whatever comes next. Respondents said the competencies their children Vasant Prabhu, executive vice president and chief fi- and grandchildren will need most to succeed in the nancial officer at Visa, has learned a lot about reacting future workplace include the ability to make decisions to change in his 30-plus-year career, including lead- and problem-solve (18%), think creatively (16%), and ership roles at NBCUniversal, Starwood Resorts and communicate verbally with people inside and outside Safeway, as well as a seat on the Mattel board of direc- EXHIBIT 2. FUNDAMENTALLY HUMAN SKILLS, LIKE PROBLEM-SOLVING AND CREATIVE THINKING, WILL BECOME CRITICAL. What skills will future generations need most to succeed in the workplace of the future? INTENSITY INDEX1 PERCENTAGES Making decisions and 100 18% solving problems 93 Thinking creatively 16% Communicating verbally with 91 people inside and outside the 15% organization 83 Influencing others 13% 69 Working in a team structure 11% Being proficient with the 64 9% latest technology 50 Analyzing quantitative data 6% Planning, organizing and 42 prioritizing work 4% Developing technical 38 4% knowledge related to the job Collecting and processing 31 4% information 1 To measure the degree of impact, respondents were asked to allocate 100 points across their answers. Source: RRA Future Leaders Study, 2017; n = 307 OUR FUTURE LEADERS: TODAY’S BUSINESS LEADERS REFLECT ON TOMORROW’S WORK WORLD | 5 The most valuable learning experiences often involve adversity, so don’t just chase what looks cool at the moment. John Donahoe, CEO of ServiceNow tors. Reflecting on the skills his 16-year-old daughter also affording their children and grandchildren work- and her peers will need to succeed in the future, Vasant life balance (18%), visionary mentors (16%) and lead- homed in on an ability to handle constant change. ership opportunities (15%). “Conceptual skills will be far more important, as well Some executives commented on what it will mean as creative skills and the ability to function in unstruc- to be a leader in the future, especially in the startup tured environments,” he said. “There’s no question world. John Donahoe, CEO of ServiceNow, has seen that leadership will change as well. Twenty to 30 years this change firsthand in his own children, three of ago, you got a position, you got the authority. Today whom work in the tech industry. John is no strang- you get a position and you earn the authority. May- er to tech himself, having served as the CEO of eBay be in the future, you will have to earn your authority and on the boards of Intel and PayPal. But he says to- every day.” day’s tech leadership needs to understand the value ORGANIZATIONS OF TOMORROW of adversity. Business leaders of today had high hopes for the or- “We are in an era where the pace of change is accel- ganizations their children and grandchildren will join erating,” he said. “Leaders of the future will have to in the future. be adaptive and be able to drive change. Learning Executives hope the organization of the future is both from a wide variety of experiences and learning to highly flexible (33%) and entrepreneurial (15%) while work with a diverse set of people are increasingly EXHIBIT 3. LEADERS ADVISE PASSION OVER PERSONAL PROFITS. What one piece of career advice would you offer future generations? INTENSITY INDEX1 PERCENTAGES 100 Pursue your passions 37% 80 Persevere 30% 58 Do good 22% 17 Family first 6% 4 Financial stability is No. 1 2% 8 Other 3% 1 To measure the degree of impact, respondents were asked to allocate 100 points across their answers. Source: RRA Future Leaders Study, 2017; n = 307 6 | OUR FUTURE LEADERS: TODAY’S BUSINESS LEADERS REFLECT ON TOMORROW’S WORK WORLD I’d be remiss if I didn’t educate my kids about business … I was so naïve when it came to things like job opportunities. Christa Quarles, CEO of OpenTable important because they make you more adaptable berly-Clark board of directors, she’s happy to be able and empathetic, both of which are helpful in driving to pass her business acumen on to her children. She change. And the most valuable learning experiences said her sons love that she works because they can often involve adversity, so don’t just chase what tell it makes her happy and fulfilled. looks cool at the moment.” “I’d be remiss if I didn’t educate my kids about busi- John also stressed that future leaders should pursue ness,” she said. “I want them to know and understand their passions and pay attention to what gives you a what I do. It has to help. I was so naïve when it came sense of purpose. He wasn’t alone in that belief. No- to things like job opportunities. My kids will be better tably, the survey found that executives emphasize off because they’ll have sounding boards.” purpose—not just the bottom line—as the ideal way to work. Purpose-driven organizations were ranked Regardless of whether they hoped their children by executives as the second-most-appealing future would follow in their footsteps, many leaders surveyed workplace scenario (19%). stressed the importance of finding fulfilling work. In fact, “pursue your passions” (37%), “persevere” (30%) CAREER ADVICE FROM MOM AND DAD and “do good” (22%) are the three most critical pieces Roughly two in five business leaders surveyed said of career advice business leaders would like to instill they would encourage their children or grandchildren in their children and grandchildren. to follow in their career footsteps, with C-suite executives more likely than SVPs, VPs or directors to be very Following passions was even more important advice encouraging of their progeny becoming future titans among executives, perhaps demonstrating a growing of industry.

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