Technology alone likely won’t deliver the uplift in performance that organizations seek.
There are three reasons to value human capital:
– People are the creators of technology – it does not create itself.
– People are the stewards of technology – they cannot control it but they can shape it and are less effective without it.
– People are the champions of technology.
Companies such as Airbnb and Uber, optimise technology but also have huge teams of people to service their customers. Humans know best how to partner with technology.
“What gets in the way is that there is an insufficient understanding of disruption, there is pressure from stakeholders and the strategy for human capital is not aligned with the strategic goals of the organisation.
Smartphones, data-collecting industrial parts and other innovations of the Digital Age are amazing, but none of them pack the productivity-boosting power of the lightbulb or the telephone. Indeed, apart from a short burst between 1996 and 2004, the digital technology revolution actually hasn’t boosted overall productivity.
Airbnb offers a strong example of what can happen when people are enabled rather than replaced by technology. The firm might have fewer than 3,000 people on the payroll, but it depends on tens of thousands of creative, ambitious and talented human hosts to supply those 2 million rooms worldwide. Technology may connect hosts to potential guests, but Airbnb has no business without the hosts.
The “Talent Trumps Tech” idea applies to the executive suites, too. Yes, the boss likely will be able to use technology to instantly get real-time data about the firm’s pipeline of sales, cash flows, threats from competitors, even the value of individual customers …. At the same time, it will be easier for CEOs to get concrete business options from intel- ligent software. These AI-infused programs can use current data and past experiences to identify trouble spots or opportunities and make recommendations to improve the business.
Making the call
However, no app or robot is going to make the final decision on what business strategy to pursue, or whether to open a new office in Austin or Amsterdam, or whether to merge with a rival firm. “I’ll never say never, but I can’t imagine CEOs giving up those decisions,” says Nels Olson, vice chairman and co-leader of Korn Ferry’s Board & CEO Services practice. “Artificial intelligence will be there to provide input.”
Excerpts from 2030: The Very Human Future Of Work by Hazel Euan-Smith & Russell Pearlman & Karen Kane in the series on “The Future of Work is Human”
– KornFerry Institute