CONCLUSION

Recent major changes in work, the workforce, and organizations are shown in Table 1.2. Each change is rated on its importance with respect to talent management and its potential for growth.

The globalization of work and organizations is rated as highly important. This reflects the tremendous impact globalization has on those who do work and how they should be managed. Moderate progression in this trend is projected in the next decade. There are some parts of the globe that have not yet come into the world economy and are not likely to in the near future. But many regions are producing more educated workers and performing types of work that were not previously performed in those regions. Thus, globalization is rated as moderate in growth since the political instabilities that are likely to slow it down in some parts of the world are not likely to occur across the entire global business world.

Technology is rated as a highly important factor in determining what work and organizations will look like in the future. This reflects the expected accelerated rate of major advances in information technology, robotics, sustainably effective ways to generate energy, and changes in transportation, as well as in manufacturing capabilities. Its high importance rating reflects technology’s power to change the very nature of the work people do, where and how they do it, and how they are held accountable for doing it. It is rated as rapid in growth because of the many disruptive products that are likely to be created in areas ranging from communications to energy production.

Diversity is rated medium in importance; this is because although significant changes are required in how talent is managed, as diversity increases many of them are not as substantial as those required by technology and globalization. It is rated slow in future growth because the challenges that are involved in bringing new types of individuals (e.g., minorities, foreign nationals) into the workforce in many countries are and will continue to be significant.

The move to more sustainability in business models is rated as medium in importance for talent management and as moderate in future growth. It is an important factor in the careers and work choices of some individuals, but it is not an important universal issue. It is also likely to lead to changes in how some organizations operate, but it is not likely to quickly become a major objective for many. The reasons for this are clear: although in many developed countries there is increasing demand that organizations behave in a more sustainable manner, this is not yet a high priority global action issue (even though it should be). Many parts of the globe have not made a strong commitment to sustainability and, as a result, a rapid change by corporations with respect to how much attention they pay to it is not likely to happen.

Change is rated as highly important and as rapid in growth. These ratings reflect the cumulative effects of globalization, technology, and sustainability as major drivers of how organizations operate and perform. There is every reason to believe that this combination of forces will continue to increase in their impact and to create the demand for more agile and flexible organizations and talent management processes.

The final major change is the criticality of talent. This is of high importance because the many changes that are making talent more valuable and central to the effectiveness of organizations require major changes in how organizations are managed. It is rated moderate in growth because, though it may not grow at an extremely rapid rate, it is likely to become increasingly true as technology, diversity, and change require organizations to become more effective at talent utilization, talent development, and creating more agile talent management practices.

As can be seen in Table 1.2, it is not a mystery where the world of work, workers, and organizations is going; it will be more diverse, competitive, complex, and challenging to manage. Workforces will be more diverse, technology will be increasingly disruptive, demands for sustainable performance will increase, and competitive demands will be greater. The convergence of these changes will create a new world of work that will not just call for it; it will demand new talent management principles and practices.

Table 1.2 Major changes: importance and growth

Copyright © Edward E. Lawler III and Center for Effective
Organizations at USC.

The challenge is to create organizations with talent management systems that are capable of responding to these changes. Talent management needs to be a priority in organizations because it can be a major source of competitive advantage or, if managed poorly, a fatal flaw. This brings truth to CEOs’ favorite adage: “People are our most important asset.” Today’s and tomorrow’s challenges are to translate that philosophy into talent management and organization design approaches that recognize it and effectively act on it.