HR Strategies for Transformational Change

IBF Beacon Series featuring Professor Lynda Gratton

IBF held its Beacon Series on 28 September 2009 at the Marriott Hotel. Professor Lynda Gratton, Professor of Management Practice, London Business School and founder of the "Hot Spots Movement" addressed the audience on the theme of HR Strategies for Transformational Change: Creating Innovation in the Financial Sector .

Professor Gratton shared her research on the evolution and change of the business environment from five key trends, namely, Demography, Technology, Globalisation, Carbon / Oil and Societal Trends. She emphasized the need to be mindful of these trends and tailor the organizational architecture with the changing times so as to develop a more cohesive and value driven workforce.

On Demography, Professor Gratton felt that it was difficult to predict the global trend of the future workforce given the diversity of each generational workforce. She cited examples of the differing mindsets of the baby boomers, Generation X and Generation Y.

Given the increasing life expectancy of the population, Professor Gratton foresaw that retirement age will be deferred and people are likely to carry on working after the age of 65 but not in the way they used to work before, e.g. shorter work hours, project work and more flexibility in the way that they are employed.

As the workforce continues to evolve, Professor Gratton cited a rising trend in the US in which people are given the freedom to take no pay leave or opt for a 4-day working week to focus on other commitments. Talented people want to do more than just one job and that job may be of a non-profit nature.

With regard to Technology, Professor Gratton shared that studies have shown that the cost of technology is declining and that by the Year 2020, it is estimated that five billion people will be connected by technology, creating what Professor Gratton called “the first global joint community.” Together with the factors of Demography, Professor Gratton said that technology will be a major driver in the future economy.

It is therefore crucial to think about innovation and talent management, especially how an organisation can attract and retain talent if these talents do not wish to work in a conventional environment. Professor Gratton cited an example of how Apple Corporation understood that the most creative people would not wish to be confined within the structures of a conventional working arrangement, and through innovative ways in structuring their human capital requirements, succeeded in attracting talented people to fulfill their manpower needs. The fruits of this innovative approach can be seen in the creation of cutting-edge software applications and best-selling products such as the iPhone and iTouch.

Globalisation will increasingly impact the evolving economy. “The world is no more led by America or the UK, the world will see the rise of other economies such as Africa and China,” said Professor Gratton. And as regional economies, societies, and cultures become increasingly integrated, the workforce and how they are managed will also need to evolve accordingly. Other issues such as oil prices and carbon tax will also bring about changes on areas such consumption patterns and businesses operations.

Sharing her research on creating “Hot Spots” within organizations, Professor Gratton noted that organizations which create and foster “Hot Spots” that are buzzing with ideas and innovation will have the added competitive edge that translate to the bottom line through increased value creation, enhancing their ability to develop better products and deliver superior services and solutions.

During the session, the participants engaged in group discussions and took the opportunity to surface their HR concerns to Professor Gratton. Topics ranging from the growth of entrepreneurship in the company to building a workplace of diverse skills-sets were discussed during this dynamic session.