The Transformation: Essential Characteristics The Implications: Addressing Societal of Future Operating Models Challenges to Achieve a Brighter Future Incremental changes will not suffice. To support the The reinvention of future operating models will require aforementioned view of the future, each component of significant effort, impacting all of society. Implications range the operating model must embrace seven transformative from the ability of workers to engage in digitally-enabled characteristics that will establish new mindsets and organizations, security to protect individuals in fluid labor structures, ensuring economic viability in a disrupted world. markets and measures to both democratize and protect information. Public-private partnerships across these key – Mindset: A profound shift in culture and ways of working areas are vital to minimize risks and optimize the potential for 1. Human: Purpose is deeply embedded in the value creation. organization of the future to empower employees – Worker Enablement in the Digital Age to deliver consumer outcomes, while also being authentically engaging and partnering with employees The technology-driven reinvention of the operating model to foster intrapreneurial, life-long learning will create new digital skills requirements for jobs, in 2. Living: Businesses operate in a highly agile addition to rapidly impacting existing roles. Today, 54% of organization that continually re-shapes and adapts by the activities currently performed by Consumer Packaged using self-organising teams, prioritizing progress over Goods (CPG) workers and 40% of those performed by perfection and acting at a vastly accelerated pace Retail workers could potentially be automated. Therefore, the workforce must be supported to master new 3. Enhanced: The use of technology and analytics technological, analytical and interpersonal skills, while transforms each function and, ultimately each worker’s embracing new ways of working to be effectively prepared role for jobs in the digital age. – Structure: Fundamental changes in the shape and – Flexicurity execution As consumer-centric industries transition to more 4. Ecosystem: A network of relationships enables each flexible operating models, workers that engage in participating company to accomplish far more than non-traditional career paths deserve access to similar it can alone; ecosystems form to deliver consumer safety nets historically afforded them in more traditional solutions, capabilities, or data sharing where each employment models. New contracts for employment, with company has a clear understanding of its core transparency and transferable benefits, will be needed capabilities and relies on others for the rest to support worker flexibility. Governments, industry 5. Modular: Businesses within the business monetize and individuals must collaborate to establish these new internal capabilities by establishing a “plug-and-play” contracts, which will be vital to promote a liquid workforce, structure to efficiently accelerate the development foster radical reskilling, support job mobility and ultimately and integration of new business ideas, start-ups, ensure worker welfare. acquisitions and outside capabilities – Consumer Data Principles 6. Liquid: Companies source and manage their The success of consumer-centric industries will be workforces by accessing the best talent at the right predicated on the exponentially increasing use of consumer time to meet demand through employment models data. Recent surveys find that 57% of consumers are that include permanent employees, company affiliates, concerned with how businesses use their information, with partners, publicly available talent and consumers 41% of consumers feeling they need greater transparency into companies to have confidence in their products/ – Economic Viability: Responsibility to generate lasting services. To build long term trust, the industry must carefully performance and sustainable impact protect the privacy and security of consumers’ data and be 7. Enduring: The holistic application of the other six transparent about how they are utilizing it. characteristics and focus on achieving sustainable, In conclusion, the decade ahead will fuel the acceleration profitable growth that is aligned to societal values and of technology-driven change which can lead to the creation establishing lasting trust and transparency of significant value for consumers, workers and the enterprise. As operating models transform to enable these new opportunities for growth, there is the potential for both positive and negative impacts on society. To ensure an inclusive society, key stakeholders must work together in focused collaboration to proactively manage this disruption to achieve a brighter future. Operating Models for the Future of Consumption 5