Do you need to redesign your organisation?09 May 2016
Unlike machinery and technology, human capital is something unique to every organisation. It is the skills and competencies that largely drive an organisation’s competitive advantage – the power from the people.
But to get the most out of human capital, you need leaders who are competent at managing change.
This is has never been so true as the speed of change ramps up yet another notch.
So what is the major trend in human capital?
A report from Deloitte University Press surveyed over 7,000 professionals across the globe reviewing current attitudes towards human capital and identifying the top trends in people management to expect in 2016.
In first place is organisational design, with 92 per cent of respondents agreeing that it is a pivotal issue in 2016 on the road to continued success.
This is a marked change from previous years. It signals that many leaders recognise a need to drastically change how they resource their company to get the most out of their employees. In fact, a massive 77 per cent of organisations surveyed have recently restructured or are currently restructuring their organisation.
What is driving the change?
The rapid pace of change that has shaken the ground beneath many leaders feet in recent history is not showing signs of steadying.
Economic development, an ageing population, unprecedented digitisation and less formalised employment agreements create shockwaves that are being felt across the board, according to Deloitte.
Several years ago business best practice shifted away from vertical hierarchies. But the horizontal, all-on-par structure that many smaller businesses adopted may already have become obsolete.
To get the most out of human capital you may need to shift towards a more fluid structure. Less concrete job descriptions and more teamwork will allow for competencies to be truly be capitalised on.
However, this means major changes, and leading change is always a challenge. So bettering your leadership skills may be the first step to guiding your organisation into a fortuitous future.