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Reto Bruegger, Head of B2B / Nestlé
Nespresso S.A.
Mark Catchlove, Insight Group
Director
Martin Laws, Partner, Occupier Advisory
Deloitte Shared
Services, GBS & BPO
Conference
Future of Work: Evolving
Shared Services in the
context of the future of
work: Threat or
opportunity?
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Future of Work Evolving Shared Services
in the context of the future
of work: Threat or
opportunity?
Partner, Occupier Advisory
Martin Laws
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What is the future of work?
Deloitte Shared Services, GBS & BPO Conference 2015 3
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Two of any organisation’s most critical and valuable
assets are its people and the technology they access.
Both are changing more rapidly than at any time in the
history of the workplace.
Deloitte Shared Services, GBS & BPO Conference 2015 4
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What is the future of work? Deloitte is producing more and more insight on an increasingly connected debate
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What is the future of work? A new generation…
“Millennials are entering the workforce in greater numbers and reshaping the
talent markets with new expectations. They are projected to make up 75% of
the global workforce by 2025.”
Global Human Capital Trends (Deloitte, 2014)
Talent
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What is the future of work? A new generation… with changing expectations…
“The 21st century workforce is global, highly connected, technology savvy and
demanding. Businesses realise that the workforce today has changed; skills are
scarce, workers have high expectations and Millennials are now in charge. For
this emerging generation, work-life fit is valued more than compensation growth
or skill development.”
Global Human Capital Trends (Deloitte, 2014)
Talent
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What is the future of work? A new generation… with changing expectations… coupled with increased
longevity…
“Increased longevity and health are encouraging greater numbers of older
people to remain longer in the workforce. By 2025, the number of workers aged
55-64 is forecast to rise by 89%, while for those aged 65 and above the
percentage is even higher.”
Global Human Capital Trends, (Deloitte, 2014)
Talent
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What is the future of work? A new generation… with changing expectations… coupled with increased
longevity… is creating a multi-generational workforce…
“Trends of Millennials entering and Baby Boomers remaining in the workforce is
creating the most multi-generational workforce in history.”
Global Human Capital Trends (Deloitte, 2014)
Talent
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What is the future of work? A new generation… with changing expectations… coupled with increased
longevity… is creating a multi-generational workforce… of contingent workers
“Organisations are tapping networks of specialists; 51% of organisations see an
increase in contingent hiring in the next 3 to 5 years.”
Global Human Capital Trends (Deloitte, 2015)
Talent
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What is the future of work? Supportive technology…?
“56% of respondents believe increased mobile working would improve their
productivity. More than 66% say their employer does not assist them in usefully
applying mobility to their jobs.”
Upwardly Mobile Survey (Deloitte, 2013)
Technology
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What is the future of work? Supportive technology… or disruptive technology…?
“Today’s office worker can only focus for 6 minutes on a single task. The
average user checks their mobile device 150 times a day…
…Not only has technology become a critical and pivotal part of human
resources, but we have also identified a new human capital issue…the
overwhelmed employee. Organisations face an imperative to find ways to
absorb more technology while simultaneously making it simple.”
Global Human Capital Trends Survey (Deloitte, 2015)
Technology
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What is the future of work? Supportive technology… or disruptive technology… destructive technology…?
“More than 1 in 3 jobs in the UK is at high risk of being made redundant by
technology in the next 10 to 20 years. The speed and extent is computerisation
will depend on the strength of social and political resistance to change.”
London Futures, Agiletown: the relentless march of technology (Deloitte, 2014)
Technology
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What is the future of work? Supportive technology… or disruptive technology… destructive technology… or
creative technology?
“According to a recent PEW Foundation survey, 48% of US technology experts
believe robots and digital agents will displace significant numbers of both
unskilled and skilled workers, with many expressing concern that this will lead
to mass unemployment. We argue that the current discourse is biased towards
the job-destroying effects of technological change due to the relative
unpredictability of its creative aspects.”
Technology and people: The great job-creating machine (Deloitte, 2014)
Technology
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What is the future of work? Ever increasing globalisation…?
Place
“By 2020, a typical global organisation will place people in 33 world-wide
locations, an increase from 13 locations in 1998.”
Global Human Capital Trends Survey (Deloitte, 2014)
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What is the future of work? Ever increasing globalisation… with changing global dynamics…?
Place
“More than 20 of the world’s top 50 cities ranked by GDP will be located in Asia
by the year 2050, up from 8 in 2007. And by 2030, China, India and Brazil will
become the world’s major exporters of qualified talent.”
Workplace 2030: Built for us (Deloitte, 2013)
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What is the future of work? Ever increasing globalisation… with changing global dynamics… and emerging
growth locations…?
Place
“In the first decade of this century, 21 countries (all of them developing
countries) more than doubled their GDP, emphatically dwarfing the UK (18%),
UK (18%) and Germany and Japan (>10%).”
Business Trends 2014: navigating the next wave of globalisation
(Deloitte University Press, 2014)
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What is the future of work? Creative and dynamic working environments…
“A creative and dynamic work environment is one of the most attractive
attributes of an employer to banking-oriented students…which less than 40% of
students attribute to banking.”
Talent in Banking Survey (Deloitte, 2013)
Space
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What is the future of work? Creative and dynamic working environments… replacing uninspiring and
unproductive spaces.
“Of more than 36,000 participants surveyed, more than 4/5 said that their
organisation’s workspace was important to them, but only 1/3 either agreed or
strongly agreed that their workspace created an enjoyable environment to work
in or enabled them to work productively.”
The Leesman Review (2013)
Space
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Today’s Shared Services under
threat?
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“In the past, computerisation has been limited mainly to
repetitive tasks that can easily be specified in software
and performed by machine. The future will be different.
The capabilities of computers are expanding beyond
routine work: as a result, tasks that were once considered
too complex for coding will be converted into well-defined
problems capable of digital solutions.”
London Futures, Agiletown: the relentless march of technology
(Deloitte, 2014)
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Today’s Shared Services under threat? Automation is forecast to have a dramatic impact; particularly on low-skilled and
process driven tasks
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Today’s Shared Services under threat? Given the nature of many SS activities this could have a profound impact
“More than 50% of existing roles in Finance functions have a high probability of
automation. Typical roles at risk include payroll managers, financial
administrators and credit controllers.”
The robots are coming (Deloitte, 2015)
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Today’s Shared Services under threat? Shared Service centre locations will become increasingly diverse…
“Organisations’ shared services geographic scope is expanding, as evidence by
the inclusion of markets such as Greece, Africa and the Middle East,
demonstrating that virtually every country can be considered as a source of
talent around the world.”
Global Shared Services Survey (Deloitte, 2015)
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Today’s Shared Services under threat? …and traditional SSC locations could give way to emerging growth locations.
“Mexico, Indonesia, Nigeria, Turkey (MINT) have been identified as additional
high-growth and high-potential economies. Thailand, Vietnam and the Pacific
Coast nations of Latin America, might hold real future promise.”
Business Trends 2014: navigating the next wave of globalisation
(Deloitte University Press, 2014)
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Shared Services to lead
change?
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“Increasing automation is the second most important
strategic priority for shared services and GBS leaders,
behind only focusing on continuous improvement.”
The robots are coming (Deloitte, 2015)
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Shared Services to lead change? Shares Services has no choice but to be at the “bleeding edge” of change…
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Shared Services to lead change? …and it has the opportunity to drive change through the business : SSCs often
comprise the functions that need to address these challenges
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Shared Services to lead change? …which are often considered in siloes, but are inextricably linked
Talent Technology Place Space
Talent Strategy
Organisational
Transformation
Change
Management
Mobility
Security
Infrastructure Relocation
Implementation
Tax & Incentives Collaboration
Workforce Agility
Workplace Vision
Real Estate
Transformation
Footprint optimisation
Location Research Workplace Design
Real Estate Strategy
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Shared Services to lead change? …which are often considered in siloes, but are inextricably linked
Talent Technology Place Space
Talent Strategy
Organisational
Transformation
Mobility
Security
Infrastructure Relocation
Implementation
Tax & Incentives Collaboration
Location Research Workplace Design
Real Estate Strategy
Change
Management
Workplace Vision
Real Estate
Transformation
Footprint optimisation
Workforce Agility
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Shared Services to lead change? But how do you adapt in an ever changing world?
The world of work is going
through a major shift; an
organisation’s people and the
technology they access are
changing more rapidly than at
any time in the history of the
workplace.
However, that does not
necessarily mean that the
evolving picture is the ‘new
reality’ - who is to say that the
game won’t change again? And
again? And again?
A new reality?
Not only is it difficult to predict the
future states of working reality with
any confidence, it is equally as
difficult to asses how many future
states there will be.
In fact, what is much more likely,
is a state of constant evolution,
where emerging trends in people’s
preferences and the technology they
can access change with an ever-
increasing regularity.
Or constant evolution?
Therefore, an organisation’s response
should not be to adapt their corporate
infrastructure to suit today’s emerging
reality (be that the demand for work /
life balance, a total reward package,
mobile technology, or otherwise).
Instead, they should look to
revolutionise their attitude to
corporate infrastructure in order to
provide the organisation with the
flexibility it needs to frequently
adapt to meeting tomorrow’s ever-
changing priorities.
Frequent adaptation
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Shared Services to lead change? …and what should functional heads be focusing on?
CHRO
Increase flexibility
Embrace alternative
employment models
Develop ‘total reward’ to
drive satisfaction
Foster culture for learning
and development
Performance manage
remote & flexible
workforces
Move from strict policies
towards governing
principles
Recognise the cost of
attrition
CIO
Construct a diverse
portfolio
Embrace new
technologies to improve
productivity; accept
obsolescence
Invest in training for new
technology
Be bold, but invest in
assets carefully
Keeping up is expensive;
adjust investment
accordingly
Optimise depreciation
periods
COO
Be innovative
Look to tomorrow’s
world; where is the
talent?
Consider non-traditional
locations, both for SSC
and front office locations
to optimise cost
Optimise adjacencies
and collaboration
opportunities
CREO
Change perceptions
Your real estate space is
an enabling asset, not
just a cost to be
controlled
Help to improve
productivity, increase
innovation, and promote
collaboration
Invest in flexibility;
transform property from a
fixed to a variable cost
Use the working
environment to attract
and retain talent
Change how you
measure RE performance
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Scenarios 2018
How will work change
through 2018
Insight Group Director
Mark Catchlove
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Scenarios 2018 How will work change through 2018?
“Chance favours the prepared mind” Louis Pasteur
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Scenarios 2018 How will work change through 2018?
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Scenarios 2018 Swarm focused work
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Scenarios 2018 Hackable and Kinetic Nodes
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Living Office Engine of Prosperity
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In the new landscape of work, a
dynamic equilibrium of shared
passion and profit delivers greater
performance and value for both
individuals and organisations.
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Future of Work
The Nespresso story
Head of B2B / Nestlé Nespresso S.A.
Reto Bruegger
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The Nespresso story Turning a simple idea into a winning formula
Deloitte Shared Services, GBS & BPO Conference 2015 41
….create the perfect cup of espresso with exquisite
crema, tantalising aroma and full-bodied taste –
just like skilled baristas
…at home, in a convenient and consistent way
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Deloitte Shared Services, GBS & BPO Conference 2015
A fully integrated value chain From cherry to cup
1 - 2% of the world’s
green coffee crop
5
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Headquarters: Lausanne, Switzerland
2000: 30 countries 2014: 62 countries
2000: No boutiques 2014: 400 luxury boutiques in 55 countries
2000: 330 employees 2014: over 10,500 employees (over 70% consumer facing)
2000: 1 production centre 2014: 3 production centres (Avenches, Orbe, Romont, CH).
Nespresso 2000 to 2014 development 15 years of strong growth
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……
Deloitte Shared Services, GBS & BPO Conference 2015 44
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Phase 4
Shaping the global
coffee culture
Phase 5
Solidifying global
coffee leadership…
Phase 1
Pioneering years
Trial and error
Phase 2
Prove acceptance
and profitability
Phase 3
European
expansion
The 5 Phases of development Impact on the organisation and people
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……
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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Phase 4
Shaping the global
coffee culture
Phase 1
Pioneering years
Trial and error
Phase 2
Prove acceptance
and profitability
Phase 3
Eurpean
expansion
The 5 Phases of development Impact on the organisation and people
Culture Corporate / Process + Efficiency
orientated
Outlook Strategic, long-term / Risk Mgt
Communication. Complex / Distance Mgt / Technology as
facilitator
Offices 1 per market / Moves to Nestlé local
offices / International Real-Estate Mgt.
Organisation Full ManComs in all markets /
Functional networks / Talent & Career
Mgt / Zones
Comment: Overseas expansion shows limits to a
Europe-centric model
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……
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1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Phase 3
European
expansion
Phase 4
Shaping the global
coffee culture
Phase 5
Compete in new
environment
Phase 1
Pioneering years
Trial and error
Phase 2
Prove acceptance
and profitability
The 5 Phases of development Impact on the organisation and people
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……
Deloitte Shared Services, GBS & BPO Conference 2015 47
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
Phase 1
Pioneering years
Phase 2
Start-up phase
Phase 3
Creating an iconic
global brand
Phase 4
Shaping the global
coffee culture
Phase 5
Compete in new
environment
The 5 Phases of development Impact on the organisation and people
Culture Change Mgt / More external outlook / Results orientation /
Increasingly competitive
Outlook Strategic long-term with short-term results orientation
Communication Technology / Department driven / Drive to integration of
functions / Alignment
Offices Large / Increasing use of visual technologies / Integrate
well-being of staff. Back to the roots» as far as brand
visual/architectural components. More open office spaces.
Start of home-offices
Organisation Large scale / Breaking down of silo mentalities / Agility
Lateral moves as part of career management / Seniority
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Conclusion
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Q&A
Head of B2B / Nestlé Nespresso S.A.
Reto Bruegger
Insight Group Director
Mark Catchlove
Partner, Occupier Advisory
Martin Laws
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