Throughout history, manufacturing revolutions from the agricultural to the industrial, have disrupted entire industries and transformed how businesses operate. Today the world stands at the cusp of a technological revolution that is altering the business landscape substantially.
The integration of disruptive technologies such as artificial intelligence, autonomous vehicles, robotics and the Internet of Things into business operations means that over the next two decades companies will bear little resemblance to their current form. At the same time, certain job functions are expected to become obsolete, while new ones will emerge.
Business leaders recognise the potential implications of these developments. According to McKinsey, an estimated 40 per cent of executives fear their organisations will not keep pace with technology, resulting in competitive pressure. At the root of the problem, are rigid corporate structures.
In fact, a study by the Chartered Institute of Personnel and Development (CIPD) found that hierarchy and bureaucracy, a focus on short-term bottom-line gains and poor collaboration between teams are all factors that discourage innovation and autonomy — therefore limiting their long-term business sustainability.
In other words, for companies to survive and grow, conventional business models and corporate cultures will need to become agile and dynamic. Driving this evolution will be two key elements: a corporate culture that embraces change and human capital that is prepared for it.
While there is no set recipe for an adaptive culture, several key elements are conducive to developing one. Among these, is encouraging independent judgement and a shared sense of responsibility to do away with redundant processes. Other elements revolve around agile decision-making, collaboration and the exchange of learning outcomes.
Set within a transparent framework that places customers at its centre, these elements can go a long way toward fostering change and innovation.
GE provides a good example of an industry leader that has successfully reinvented itself by embracing change. Faced with competition from disruptive players, GE redefined its operational process by building new commercial and marketing capabilities based on forward-thinking values.
External focus, clear thinking, imagination, courage and expertise have become synonymous with the “GE way”. The company also developed a listening framework to involve employees in its cultural evolution.
In reimagining its customers’ experience, GE launched a set of customer-centric lean start-up principles, centred around continuous learning and iteration. Combined, these efforts culminated in the emergence of GE as a dynamic and robust organisation.
Change can be unsettling to employees, yet it presents a host of opportunities for them to grow — especially at a time when disruption is still at its nascent stages. The key to preparing talent for the job demands of the future is to equip them with the technical knowledge and skills required to master new roles as well as rewarding them within a clearly-defined framework that promotes creativity and courage.
This will be particularly critical over the next decade as the skills relevant to a digital-era become scarce.
According to a report by the World Economic Forum, companies across various industries are expected to invest heavily in re-skilling current employees and exposing them to a wider range of roles across the firm as well as collaborating more closely with the education sector.
At Majid Al Futtaim we recognise that our people will continue to be our most valuable asset in realising our vision of creating great moments for everyone, everyday. To that effect, we have established a talent development framework that provides individual learning plans supported by ongoing mentoring, coaching and 360-degree feedback.
Recently, we launched the Leadership Institute, a one-of-a-kind institution designed to prepare Majid Al Futtaim’s future leaders who will shape the next chapters in our growth story. One of the primary goals is to arm our leaders with new skills that will be vital for the organisation’s success. The vision is grounded in the necessity of “future proofing our business by building a robust leadership succession from within, while supporting our localisation efforts across our operating landscape as a firm.
As the so-called Fourth Industrial Revolution continues to gain momentum, there is no denying its potential impact on companies. However, organisations that evolve by embedding an adaptive culture and developing and rewarding talent, will not only be better equipped to overcome disruption, but will also contribute to accelerating innovation.
The writer is Chief Marketing and Brand Office, Majid Al Futtaim — Holding.
