Case Study: Quri — Using Consumer as Employees Stakeholders will consider the company’s corporate citizenship when determining whether to do business with the enterprise – Quri is an American retail intelligence company that employs as consumers, employees or partners. Enduring companies will consumers to collect data, which provides real-time develop strong relationships with their stakeholders through the visibility into products and promotion performance in-store. development of mutual trust and by displaying behaviour that is Used by roughly half of the top 25 CPG companies, Quri consistent with the expectations of society and stakeholders. allows companies to convert consumers into employees by completing “on-the-ground” tasks. For example, Quri Succeeding in an increasingly difficult environment takes collected promotion compliance and execution data for a a combination of skill and will: companies must have the beer and wine manufacturer, which then created an incentive capabilities for a wholesale transformation, as well as the programme that increased display execution performance by desire and willingness to execute it. The challenges of survival 8% and annual revenue by $45 million.15 are clear. In the 1920s, the average lifespan of an S&P 500 18 company was 67 years; today it is 15. This underscores the need for companies to design their operating models in a flexible manner to allow for sustained business performance Case Study: Pluralsight – Expanding with New and ensure long-term economic viability. Employment Models Pluralsight is a Utah-based training platform that creates The Path Forward and delivers educational content for software developers, IT administrators and creative professionals. All of the Organizing to Drive Operating Model Transformation courses are taught by experts in their respective fields. To maximize scalability and “fresh” content, Pluralsight uses new Activating the three core principles, and the seven essential employment models with more than 800 core employees, characteristics, will require significant changes to enterprises’ 5,000 affiliated freelance “mentors” and several thousand organization, processes and ways of working. Today, 80% experts who help author the 6,000-plus courses offered. of executives believe that company goals will increasingly Pluralsight has thoughtfully designed its employment structure be completed in collaborative teams, with less emphasis on to keep pace with technology and enable its customers to do 19 the same. functional roles. In the future, organizations will move from traditional functional groups to end-to-end integration. This will lead to a blending of skills across jobs (e.g. supply chain experts While only 16% of the consumer industries’ workforce is will also need to understand marketing, as these activities currently comprised of freelancers, the CPG industry is the directly link to one another, and procurement experts will need to most active user of the full range of employment models of collaborate with HR teams to efficiently manage non-traditional 16 any industry globally. Some 79% of executives believe a talent). Instead of being organized by role, cross-functional liquid workforce provides a competitive advantage and 81% teams will work together to achieve holistic outcomes. believe freelancers will be a seamless part of the workforce 17 within three years. Historically, human resources (HR) has owned traditional employment while contractors have typically fallen under the purview of procurement. This separation can Case Study: Hepsiburada – Organizing to be a Truly limit an organization’s ability to effectively source and engage Consumer-Centric the best talent. By contrast, Upwork CEO Stephane Kasriel advocates “total talent management” – merging procurement Hepsiburada, the Turkish e-commerce leader, is organizing its and HR activities to oversee a fluid base of external workers. business around defined consumer “personae” (e.g. “Working To exploit the full potential of liquid workforce strategies, the Mothers”, “Techies”, “Sports Man”), bringing them physically industry should take a leadership role in defining how best to to life within the working environment. The new persona support the movement to a more fluid way of working that teams focus on providing an end-to-end experience across supports the best outcomes for society. traditional functional roles, tailoring each aspect of consumer engagement to the specific persona. Economic Viability: The Responsibility to As companies move from single to multiple business models, Generate Lasting Performance and Sustainable go-to-market functions will need to change accordingly – from Impact standardized central functions to flexible functional support organized around, and simultaneously managing, each Enduring business model’s distinct objectives, activities and metrics. Functions will become porous, with a rapidly expanding Operating models of the future will be defined by their ability to ecosystem changing players’ roles, responsibilities and subsist in a disrupted world. Enduring organizations will establish activities, and with companies borrowing or lending entire the necessary mindsets (human, living, enhanced) and structures capabilities to other partners. “Co-boting”, the collaboration (ecosystem, modular, liquid) to ensure that the company has between people and machines, will be commonplace in the long-term economic viability. Companies will drive financial automation of simple tasks and more so as artificial intelligence value through sustainable practices and by enabling trust and amplifies truly human capabilities. Technology will help create transparency, as well as by reflecting stakeholder values. the functions of the future by integrating and redesigning activities to drive efficiency and create greater consumer value. 14 Operating Models for the Future of Consumption