According to PwC’s latest Hopes and Fears survey, at least half the world’s workforce feels like there’s too much change taking place in their organisation today while 44% say they don’t understand why their company needs to change at all.

Despite this, 70% of the world’s Chief Executives remind us their business is at risk of failing in the next 5 years if they don’t, i.e. change the way they operate.

 
The numbers, while stark, illustrate the disconnect between executives and their staff even though the evidence is playing out in front of them daily through layoffs and the rise of new technologies.

The fact is, every Chief Executive around the world is acutely aware of the need to change the way they work if they’re to survive the 4th revolution (a period characterised by a ‘fusion of technologies’ according to the WEF’s Founding Professor Klaus Schwab) and yet what that looks like remains uncertain.

For many, they will assume it’s about further reductions in staffing to reduce costs while for others, it will be about the reorientation of resources to produce higher-value products and services. Some will tackle it by entering new markets to broaden their customer base while others will look to acquire competitors to increase their presence and future earnings.

Regardless, productivity challenges for leaders will remain, despite improving economic conditions, as new technologies will enable lower-cost operators to enter the market.
 

What’s the problem?

According to the United Nations, 760 million people are living in extreme poverty while a staggering 2 billion still don’t have access to safe water.

Despite the ILO’s (International Labour Organisation) estimation that the global unemployment rate is only 5.6% (or about 260 million people), Gallup believes it is over 30% (2.5-2.6 billion).  

While there’s no statistical correlation between a nation’s GDP and its employment rate, hence countries like France and those in the greater Eurozone have higher unemployment rates than the likes of Cambodia or Belarus (up to 3 x higher), the world is facing a problem – namely, how to employ the workable population in each nation to cover the costs we are facing. 

Although these challenges may appear of little relevance to many, they will drive changes that will affect everyone. As an example, emerging technologies designed to enable individuals to trade will lead to a rise in cottage industry that over time, will disrupt monopolies as buyers look for cheaper alternatives.

At the same time, the limited benefits derived from certain sectors are falling out of favour making way for new competitors – think Crooton versus conventional recruitment firms or shared spaces versus corporate offices. Cultural changes are also disrupting behaviours to a point where they’re becoming normalised – think Air BNB versus hotels, or the combination of Uber, rideshare and scooters versus car ownership. The point is, your business is unlikely to flourish in the future if it remains as it is today.
 

So what’s the answer?

Differentiation... irrespective of your sector.

If a Mercedes looks like a Mazda, fewer people will buy one. If your offering looks like your competitors, people will look for another. In other words, your ability to differentiate your company over and above your offer will be critical to your survival.

This is because the functional elements of everything we purchase are a given, meaning your organisation’s growth will come down to your points of difference.

All the talk now is about AI and while it offers significant opportunities, it’s how organisations use it that will determine its value to their business. For example, if all it does is take your people less time to do their work, its impact on your business will be limited. Whereas, if it enables your people to spend the time saved helping your customers, it could be a vital part of the equation.

Either way, your success will be determined by the way your people engage with your stakeholders which is why your culture needs to be at the forefront of your thinking.
 

What does a future-ready business look like?

Being future-ready is more than having a product or service that fits the aspirations of the market. It’s about being an organisation the world wants to engage with, which will be determined by what you stand for and the way your people interact.

Not surprisingly, this can only be achieved by being a company employees will want to work for as you will need a supply of talent to stay in business. In addition to this, you will need to be a customer of choice to your suppliers for without their support, your ability to compete will be at risk as will your credit terms. Finally, you need to figure out who your customers are likely to be and how you can best serve them which you can start doing today by understanding what your current customers think about and what they suspect will influence their decision-making in the future.

Once defined, you can use that information to inform a blueprint as to how you will need to operate including the technologies you will be using and how your workforce will need to be configured.

As an example, getting closer to your customers may take preference over centralised office spaces, or providing more proactive services that reduce customer friction while mitigating pressures on your business.

The point is, readying your business for the future cannot be limited to the adoption of AI and more stringent or efficient controls. It will come down to your ability to engage your people in a vision of serving your customers better than your competitors so they will want to stick with you because of the difference you make to their lives or business.

If you’d like to look at how Vantaset could help you achieve the above, call us on +64 9 522 9409 or email us at info@vantaset.com

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