In ten years’ time, the procurement profession and the role of the Chief Procurement Officer (CPO) has changed in many unique and profound ways. Yet, just like 2010, CPOs and other procurement leaders are entering the new decade grappling with intense challenges (some old, some new) and driving forward to achieve aggressive goals and objectives.
On that front, I’m pleased to continue with our exciting, new series on CPO Rising – “20 for 2020” which examines a broad range of CPO-driven topics. Today we continue with 20 for 2020: Key Themes for the Modern CPO’s Agenda (#7 – The Future of Work), which is designed to help procurement executives set their organizations’ course for the critical months and years ahead. Enjoy!
20-for-2020: Theme #7 for the Modern CPO’s Agenda: The Future of Work
“How does work get done?” On the surface, a simple question that echoes across the halls of global businesses and small organizations alike has become both more complex and more important in 2020. The answer: the convergence of many business attributes has resulted in a new era of process and workflow optimization that is actively augmented by innovation via new technologies and platforms, enhancements and progressive improvements to traditional operational systems, specific market challenges and economic impact areas, and, most critically, a complete transformation in how the typical enterprise addresses how work is ultimately done.
In past years, there were a series of considerations related to both the tactical and strategic areas of “work,” including costs, budgets, compliance, and project management concerns. Today, those concerns have been streamlined into a single inquiry, one that is founded on the belief that, if the enterprise can achieve true business agility, it can compete favorably in a highly-competitive global marketplace. Business agility, where the average enterprise can respond rapidly and proactively to new market challenges and issues, is now seen as the foundation of the “Future of Work.” The Future of Work, as defined by Ardent Partners, is the ultimate optimization of work via the transformation of business processes, operations, and its workforce through digitization, seamless and holistic solutions, and flexible enterprise thinking. The discussion around the Future of Work is the result of a “perfect storm” of economic, talent, and market shifts…which are paving the way for a new era of work optimization.
The Perfect Storm: Tracking the Beginnings of the Future of Work
The phrase “perfect storm” is often used to describe a situation where a series of events occur simultaneously (or closely together) and in proximity to spark something much larger and impactful than the sum of its parts. There are three driving forces that have triggered a perfect storm in the world of work:
- The rise of non-employee talent. During the Great Recession of 2007-2009, many enterprises were forced to make dramatic decisions, including massive layoffs, in order to survive. One result of these deep and jarring cuts is that the percentage of the average enterprise’s workforce considered “non-employee” increased from 17% to 40% over a ten-year period (“non-employee” or contingent labor includes freelancers, independent contractors, professional services, “gig” workers, and temporary workers sourced via staffing agencies/vendors). When the economic recovery began, businesses needed to scale operations quickly without the same full-time talent they had in the past. Understanding that the future was uncertain, enterprises saw the results of leveraging the contingent workforce: lower fixed costs than traditional talent, greater financial agility, and, in many cases, the realization that the quality of this temporary workforce exceeded what could have otherwise been sourced as full-time talent. From here, a new world of work began to emerge.
- The “consumerization” of global business. In the consumer world, the average person can execute any number of processes or tap into endless sources of content in an on-demand manner. From utilizing eCommerce outlets like Amazon to ordering food on Grubhub or rides via Uber, the typical consumer has access to a real-time lifestyle at their fingertips. In many ways, the business world has tried to follow suit. In the world of work, online talent platforms and talent marketplaces have emerged to help organizations find, engage, and source workers and services in an on-demand fashion, while ensuring quality (to the degree it can be insured) via project- or role-specific matching algorithms that alleviate execution concerns. Cloud-based software has revolutionized how core business processes can be executed, allowing both business leaders and functional professionals to capture real-time, data-driven insights and intelligence and enhance key process workflows. When the “How will work be done?” question arises, the contemporary enterprise can react from talent- and process-led perspectives due to the consumerization of global business.
- The advent of next-generation, “Industry 4.0” technologies and innovations that are actively fueling digital transformation and a “smarter” enterprise. Industry 4.0 technologies are a level step above digital, automated technologies that are now having cross-industry impact. They include additive manufacturing (industrial 3-D printing), advanced / Big Data analytics, augmented reality, cloud computing, cognitive computing, connected devices (the “Industrial Internet of Things”), and robotics / robotic process automation. Industry 4.0 technologies go beyond process automation and linkage to effectively make the world smaller. They connect users from point to point, drive visibility and control into supply chains, consolidate data and information right in front of us, and bring us closer to the source. And they converge to create an autonomous and intelligent ecosystem that is largely self-sustaining. Ultimately, the very notion of the Future of Work, from an innovation standpoint, is built on a foundation of new technology borne from digital transformation.
Final Thoughts
Does this all make sense? If not, tune into the Contingent Workforce Weekly podcast to learn more about not only the Future of Work, but how businesses can transform their workplace culture to truly optimize how work is done. If it does make sense, tune in anyway — it’s a fantastic podcast and truly unique in the space.
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