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The Rise of the Social Enterprise 2018 Deloitte Global Human Capital Trends the Rise of the Social Enterprise

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The Rise of the Social Enterprise 2018 Deloitte Global Human Capital Trends the Rise of the Social Enterprise The rise of the social enterprise 2018 Deloitte Global Human Capital Trends The rise of the social enterprise Experience Deloitte’s Global Human Capital Trends like never before. Access the new HC Trends app featuring exclusive content. Deloitte’s Human Capital professionals leverage research, analytics, and industry insights to help design and execute the HR, talent, leadership, organization, and change programs that enable business performance through people performance. Visit the Human Capital area of www.deloitte. com to learn more. COVER AND CHAPTER ILLUSTRATIONS BY TRACI DABERKO This year’s 10 trends The 2018 Deloitte Global Human Capital Trends report, drawing on a survey of more than 11,000 HR and business leaders globally,describes the emergence of the social enterprise as a response to heightened societal expectations and rapid technological change—and the human capital implications for organizations to address today. THE SYMPHONIC C-SUITE: CITIZENSHIP AND SOCIAL IMPACT: TEAMS LEADING TEAMS SOCIETY HOLDS THE MIRROR Senior leaders can’t afford to work in silos in Stakeholders today are taking an intense look today’s complex, dynamic environment. The at organizations’ impact on society, and their goal is to act as a symphony of experts playing expectations for good corporate citizenship are in harmony—instead of a cacophony of experts rising. In an effort to meet these expectations, who sound great alone, but not together. leading organizations are making citizenship a core part of their strategy and identity. THE WORKFORCE ECOSYSTEM: WELL-BEING: A STRATEGY MANAGING BEYOND THE ENTERPRISE AND A RESPONSIBILITY The composition of the workforce is changing Many employers are putting in place innovative dramatically. As alternative work arrangements programs for financial wellness, mental become more common, how can organizations health, healthy diet and exercise, mindfulness, appeal to, engage with, and drive value sleep, stress management, and more. The through workers of all different types? aim? To both increase worker productivity and meet new social expectations. NEW REWARDS: PERSONALIZED, AI, ROBOTICS, AND AUTOMATION: AGILE, AND HOLISTIC PUT HUMANS IN THE LOOP Why have rewards remained stuck in the past, As AI and other advanced technologies when almost every other aspect of HR has permeate the workplace, skills such as critical undergone transformative change? Leading thinking, creativity, and problem-solving gain in companies are now undertaking the hard work of importance. Leading companies are recognizing creating personalized rewards programs based that these technologies are most effective when on understanding each individual’s needs. they complement humans, not replace them. FROM CAREERS TO EXPERIENCES: THE HYPER-CONNECTED WORKPLACE: NEW PATHWAYS WILL PRODUCTIVITY REIGN? Rather than an orderly, sequential progression Workplaces are being flooded with new and from job to job, 21st-century careers can be exciting communications tools, each promising viewed as a series of developmental experiences, to improve productivity. But management must each offering the opportunity to acquire still make important decisions about which tools new skills, perspectives, and judgment. to use and how to use them—including, perhaps, the decision not to use certain tools at all. THE LONGEVITY DIVIDEND: WORK PEOPLE DATA: HOW FAR IS TOO FAR? IN AN ERA OF 100-YEAR LIVES The use of workforce data to analyze, predict, People are living longer, and organizations and help improve performance has exploded are shifting their attitudes toward older over the last few years. But as organizations workers as a result. Organizations that can start to use people data in earnest, new risks turn advancing worker age into an asset as well as opportunities are taking shape. could gain a competitive advantage. As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2018 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited The rise of the social enterprise 2018 Deloitte Global Human Capital Trends The symphonic C-suite Teams leading teams As the business environment becomes more competitive and digital disruption continues, organizations have become more team-centric, networked, and agile. While these approaches are taking hold in sales, operations, and other functional areas, a big problem remains: The C-suite must change as well. Rather than behave as independent C-level functional experts, the C-suite itself must now operate as a team. We call this trend the “symphonic C-suite,” and our respondents viewed it as the most pressing human capital issue facing organizations today. N the last two years of our global research, the dents told us that their C-suite leaders rarely, if ever, most important human capital trend identified work together on projects or strategic initiatives. Iby our survey respondents has been the need to The message is clear: Senior leaders must get break down functional hierarchies and build a more out of their silos and work with each other more. To networked, team-based organization. This year, this navigate today’s constantly changing business envi- trend has reached the C-suite. Senior leaders now ronment and address cross-disciplinary challenges, realize that they must move beyond their functional a company’s top leaders must act as one. roles and operate as a team. In this new construct, We call this new, collaborative, team-based se- C-suite executives combine business unit and func- nior executive model “the symphonic C-suite.” Like tional ownership with cross-functional teaming to a great symphony orchestra, a symphonic C-suite run the organization as an agile network. brings together multiple elements: the musical The urgency around this issue is clearly reflected score, or the strategy; the different types of instru- in our survey results. Fifty-one percent of the respon- mental musicians, or the business functions; the first dents we surveyed this year rated “C-suite collabora- chairs, or the functional leaders; and the conductor, tion” as very important—making it the most impor- or the CEO. In this model, C-suite members not only tant issue in our 2018 survey—and 85 percent said lead their own area of responsibility, but also collab- that it was important or very important. Addition- orate with other functional leaders, work on teams ally, we found that respondents at organizations with that affect the enterprise’s strategic direction, and the highest level of CxO cross-collaboration were influence and inspire networks of teams through- the most likely to anticipate growth of 10 percent or out the organization. In short, the goal is a sym- more. Stunningly, however, 73 percent of respon- phony of specialized experts playing in harmony— 17 The rise of the social enterprise C-SUITE COLLABORATION CORRELATES WITH HIGHER GROWTH EXPECTATIONS Respondents from organizations where C-suite executives regularly collaborate on long-term interdependent work were the most likely to anticipate growth of 10 percent or more. Figure 1. Influence of C-suite leadership style on company growth SHARE OF EACH COHORT EXPECTING GROWTH OF 10% OR MORE IN THE NEXT YEAR 34% 26% 25% 22% CxOs regularly CxOs manage functions CxOs manage functions CxOs occasionally collaborate on longterm independently but independently with little partner on ad hoc interdependent work collaborate to share crossfunctional initiatives or projects ideas or troubleshoot collaboration problems Degree of C-suite collaboration n= 11,070 Source Deloitte Global Human Capital Trends survey, 2018. Deloitte Insights deloitte.coinsights Explore the data further in the Global Human Capital Trends app. instead of a cacophony of experts who sound great With this increased specialization, however, a alone, but not together. new dynamic emerged: The individual CxOs did not, as a rule, work closely together. This made sense in a relatively static, predictable business environment A turning point in where most problems had readily identifiable root C-suite evolution causes, were limited in scope, and required deep functional expertise to solve. This wasn’t always the way C-suites behaved. But the current business environment is a far cry In the 1800s and early 1900s, the CEO stood alone from what it was in the 1980s, which saw a huge in- at the top, making most of the important decisions crease in the number and type of functional C-suite and delegating responsibility to functional manag- roles.2 Frequent marketplace disruptions, a global ers in the business. This model was later extended economy, and the accelerating rate of technological to create a series of “specialist heroes,” each with a change mean that the problems companies now face “C” in his or her title: chief financial officers, chief are more difficult, more complex, and more multi- information officers, chief human resources officers dimensional than ever. More and more problems . the list goes on and on. Each was given responsi- are of the “wicked” variety—problems with multiple bility to “own” his or her domain, operating under a roots and drivers that cannot be effectively solved “divide and conquer” model.1 by one party working alone. 18 2018 Deloitte Global Human Capital Trends The message is clear: Senior
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