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Change Drivers: The effects of large scale changes on organizations

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The way it used to be How has the workplace changed since your grandparents and parents?

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They way it used to be 1- 4 employers 1- 2 careers 42-year working life lifetime job security 6- 10 employers 3- 5 careers 50-year working life new psychological contract and now

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The old psychological contract Employer: I will provide secure employment (unless you really screw up) Worker: I will provide consistent & loyal work The new psychological contract Employer: I will provide you with an opportunity to bring value to the organization and keep you so long as you continue to bring value Worker: I will stay so long as I am provided what I need & dont find something better

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Change Drivers environment globalism demographics technology information economics politics complexity Organizational Response: paradigm shift new psychological contract decentralizing downsizing telecommuting virtual organization reengineering teamwork Learning Organization mergers/acquisitions strategic alliances target marketing out-sourcing temps innovation Demands timeliness (JIT) efficiency speed quality customization adaptability Worker Impact lifelong learning adaptability/flexibility networking self-loyalty Competition !

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Environmental change drivers limited resources & environmental degradation only.5% of worlds available water is fresh & accessible 54% of available freshwater is currently being used by 6.1 billion people half the population lives in unsanitary conditions since 1950, the amount of irrigated land has tripled 70% of worlds drylands have soil degradation (over cultivated, over- grazed, improperly irrigated, erosion, monoculture, deforestation) decreased space for trash (200 million tons/day in US); 29 million T of hazardous waste each year ocean pollution (60 million gallons oil; Mississippi R has 4000 Sq. miles of dead water around LA and TX; toxic bacteria levels) 70% of worlds oceans are overexploited (90% reduction in tuna) global warming & flooding (1-3.5 C by 2100) decrease in biodiversity (by 2040 2/3 of all species extinct EPA)

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The Technology change driver What the takes the average person 1 day to do now, took 3 days in 1950, 1 month in 1800, lifetime in 1600 In 1900 85% of workers were in agriculture (now 3%), in 1950 73% were in manufacturing (15%), now service & knowledge workers Moores Law: chip capacity double every 6 months while price stays the same current annual growth rate of Internet is 100% artificial intelligence is expected to affect 60-90% of jobs, augmenting, displacing or eliminating workers in the next five years people in the industrial world will be doing jobs differently from the past 50 years with innovation, everything goes back to zero

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Buy American-Owned Alka Seltzer Alpo Dogfood Aim Toothpaste Baskin Robbins Icecream Bactine Antiseptic Ball Park Franks Bayer Aspirin Pic Pens, Lighter, Razor Burger King Capitol Records CBS Records Chesterfield Cigarettes Christian Brothers wine Diamond Stick Matches Dove Soap Dunlop Tires EverReady Batteries Eureka Vacuum Cleaners Firestone Tires Four Roses Whisky Frenchs Mustard Frigidaire Appliances Friskies & Might Dog food Glidden Paint Goodyear Tire & Rubber Good Humor Icecream Green Giant Vegetables Humpty Dumpty Magazine Hires Root Beer Hills Brothers Coffee Hungry Jack Pancakes Imperial Margerine Instant Potato Mix Indian Head Textiles Jenos Pizza Kelvinator Appliances Knox Gelatine Kool Cigarettes Keebler Cookies Libbys Fruits Lifebuoy Soap Magnavox Massey-Ferguson Tractors Maxell Tapes Michelin Tires Mr. Coffee Norelco Appliances Nescafe Coffee New Yorker Hotel Ovaltine Drink Mix One-A-Day Vitamins Panasonic Pearle Vision Center Pepsodent Toothpaste Pillsbury Cake Mix Nestle Quik Chocolate Mix Quasar Television Ray-O-Vac Batteries Rona Barrets magazine Seven Seas Salad Dressing Shell Oil Standard Oil Stouffer Frozen Foods Tappan Appliances Valium Tranquilizers Zig-Zag Cigarette Papers

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US has 280 million consumers, 330 in EC, billion in China Of the top 50 world banks, only three US banks hold 13-15 th place 20-40% unsuccessful repatriation Increasing workforce diversification: one LA company conducted orientation in 17 languages African American purchasing power will increase 55% in each of next two decades Cultural diversity demonstrates many ways to work and manage Globalization the new marketplace

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Unemployment rates opportunities for outsourcing 1 billion workers are un- (150m) or underemployed worldwide by 2010 Asia will account for 60% of the worlds population 1999-2050 US adds about million workers each year

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20-30% of the elite skilled workforce changes jobs every year 69% believe it is acceptable to change jobs every 5 years 40% believe that for under age 30 should change jobs every 2-3 years 14% are proud of their company & only 30% remain loyal Working Woman identifies 32 desired family-friendly benefits Increased preference for flex, family and personal time and independence (alt scheduling by 25% employers) Southwestern Air receives 3,000 online resume a month Institute of Personnel and Development, April 2000 The changing workforce

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Demographic change drivers 60-70% of Boomers plans to work past age 65 (and 20+ hours/week in retirement) by 2050 18-31 million will be older than 85 25% of Americans 35-54 have saved