Trends Identified
Simplicity in complexity
Organizations tend to respond to new challenges by adding teams, functions, and departments. As organizations grow, their structure becomes increasingly complicated. New silos develop, the number of stakeholders involved in decision making increases, and interdependencies between functions multiply. The plethora of stakeholders, decision rights, processes, and policies slows down every decision and hinders collaboration across departments, reinforcing the silo effect. 74% of managers say that company complexity is hurting business performance
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Agility and innovation
A number of innovative approaches that began in software development are now being adapted by organizations for non-IT products and processes—including agile, scrum, kanban, design thinking, and other creative methodologies.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
New customer strategies
Boundaries between companies and consumers are fading as people, informed and enabled by the internet, become more aware and demanding. They want personalized offerings and will collaborate with companies to help develop the products and services they desire.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
A new demographic mix
The global population is aging. After rapid population increases during the 20th century, birth rates have stalled—and even reversed—in many regions. By 2035, one in five people worldwide will be 65 or older.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Skill imbalances
The skills and capabilities businesses require are rapidly evolving. Even as automation may yield a surplus of unskilled and semiskilled labor, the digitalization of products and services is creating an enormous demand for skilled digital talent. By 2020, 30% of tech jobs will go unfilled because of talent shortages.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Shifting geopolitical and economic power
Talent is more mobile than ever, with workers willing to cross borders and cultures to improve their career prospects. Yet a number of geographic, economic, and political developments are blocking the smooth flow of talent to areas of demand, thereby compounding the overall talent shortage.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Diversity and inclusion
As values change across the business landscape, diversity and inclusion, often seen as “nice to have,” are increasingly becoming a necessity—and for good reason. The business case has never been stronger, as studies show that diverse teams are much more likely to foster employee engagement and improve business performance. Diverse teams are 13 times more likely to engage employees than nondiverse teams
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Individualism and entrepreneurship
Independence is becoming the dominant motivator for a large section of the population, particularly for millennials (born from the early 1980s to the mid-1990s) and Gen-Zers (born in the mid- to late 1990s and after). These younger people tend to get bored doing the same kind of work for long stretches, and they are especially interested in independent careers. Empowered by digital platforms and ecosystems, many are choosing entrepreneurship and self-employment over traditional corporate employment. By 2020, freelancers will constitute 50% of the workforce
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Well-being and purpose
Millennials and Gen-Zers, who are taking on an ever-increasing role in the workplace, want more from their jobs than just competitive compensation: they are looking for well-being. In a recent survey, 62% of millennials said they want a career with social impact, and 53% said they will work harder to increase that impact. Organizations driven by purpose and values outperform their competitors in revenue, profit and stock performance.
2017
Twelve Forces That Will Radically Change How Organizations Work
Boston Consulting Group (BCG)
Beyond globalization
Globalization is still progressing, but also facing powerful headwinds. “Anti-globalization” sentiments are growing, and governments are responding: the United Kingdom is moving ahead with Brexit implementation; the United States has already stepped back from the Trans-Pacific Partnership (TPP) and may now have changes to the North American Free Trade Agreement (NAFTA) in its sights. Meanwhile, traditional globalization metrics are slowing.
2017
The global forces inspiring a new narrative of progress
McKinsey