Lead your organization strategically through automation

Heard of the renowned trio Buy, Borrow, and Build?

If your professional path intersects with roles demanding meticulous attention to workforce dynamics, these three B’s are likely old friends. However, as the clock ticks and the future unfolds, a new contender steps into the arena, challenging the conventional trio. So, let’s raise our glasses to the fresh arrival, the paradigm-shifting B—Bot.

As time evolves, so too must our approach to the future. Here’s to the current imperative — the new ‘B’ that prompts the decision: Buy, Borrow, Build…or Bot? Now, before you think of botting as an immoral dilemma created by Hollywood movies, with concerns related to job displacement, economic inequality, and the potential dehumanization of work, let’s clarify what botting in the workforce means.

Let’s take an example of a company that offers translation services and has 50 translators hired. Automation here becomes a methodical approach to identifying and automating tasks efficiently by deploying technologies like Chat GPT or Gen AI. In this scenario, recognizing that approximately 60% of translation tasks could be automated prompts a strategic decision to reshape the workforce, acknowledging that only half of the current translators may be needed in the future.

The strategic significance of automation lies in its impact on organizational competitiveness without delving into moral considerations. Firstly, it offers a means to cut costs in response to market trends. Companies can maintain cost competitiveness by embracing automation tools in fields like translation.

Secondly, this proactive understanding of the progressing environment allows for strategic resource reallocation. Recognizing the diminishing need for certain roles provides opportunities for reskilling and reallocating professionals in roles that demand human creativity, decision-making, and nuanced skills.

The five questions outlined below are pivotal in the context of automation as they collectively address critical facets, such as:

• The percentage of tasks that can be automated
• Identifying areas where technology can automate tasks
• Leveraging employees in roles susceptible to automation
• Strategic planning for reskilling and transformation
• An approach to stay competitive and innovative
• Importance of fair compensation based on skills and value brought to the organization
• Potential outcomes and scenarios resulting from a full investment in competitiveness.

Let’s get started.

To elaborate on this question, let’s use a practical example from smartData, focusing on the role of a ‘Data Scientist.’ With smartData, we can precisely determine the potential for task automation, quantifying the impact of automation on various tasks. This involves providing a numeric representation of the automation potential, like the mentioned 32%, and delving into the specifics of the technologies responsible for driving this automation and how they operate.

The following example illustrates the percentage of tasks with automation potential and the key technologies influencing this automation. smartData goes beyond just presenting the 32% automation potential; it also offers detailed explanations regarding the technologies involved and their mechanisms. This comprehensive approach provides valuable insights into automatable tasks, the pivotal role of specific technologies, considerations related to Full-Time Equivalents, and the strategic aspects of workforce planning within the automation hemisphere.

The solution is implementing learning and development initiatives, encompassing upskilling, cross-skilling, and reskilling strategies. The underlying concept is to comprehend how automation impacts various roles, such as data scientists, and to discern the trajectory of technologies shaping the future. This involves identifying the specific technologies worth investing in. As automation advances, the focus shifts beyond mere productivity enhancement to considering how these roles can adapt and support integrating new technologies.

When we talk about automation potential, it doesn’t imply a direct reduction of, for instance, 32% in the capacity of data scientists. Instead, it emphasizes how automation might influence these roles. Therefore, there’s a critical need to invest in the right technologies to enhance competitiveness in the future. Simultaneously, it’s essential to devise strategies for upskilling or reskilling the workforce, ensuring their ability to adapt to emerging technologies. This constitutes the first aspect of the solution.

Moreover, it’s noteworthy that smartData not only assists in identifying new skills relevant for future automation but also aids in recognizing the potential for upgrading existing skills. While continuing to apply their current skills, employees can simultaneously enhance and adapt them to be more responsive to automation. The subsequent example elucidates how certain present hard skills, such as those of a data scientist, like Gen A.I. models, have transitioned from an advanced to an expert proficiency level.

In addressing the implementation of reskilling and upskilling to align with automation, smartPeople plays a pivotal role. Once workforce skill gaps are identified, employees can embark on a journey to build their future by defining development goals. This involves mapping out:

• Future job/Career path. Employees can outline their desired career trajectory, setting the stage for targeted skill development.
• Skills to be developed. Identify specific skills that need enhancement or acquisition, aligning with the demands of evolving technologies.
• Suitable training. smartPeople recommends relevant training programs tailored to the identified skill development needs.

Additionally, smartPeople offers insightful recommendations for future jobs based on existing skills, a perusal of the job library, and insights into roles with increasing demand. This proactive approach ensures strategic action to upskill and reskill, as exemplified in the illustration below of a junior UI designer. This integration of skill development planning and automation-focused career paths underscores the effectiveness of smartPeople in adapting the workforce to new technologies.

A skill-value approach is imperative in determining whether employee compensation aligns with the value they bring to the organization, especially in the context of automation. This method involves deconstructing job roles to understand how specific skills influence market salaries, as exemplified by the three-level skill pyramid below.

The findings emphasize significant variations in compensation tied to automation-related skills and experience. For instance, in the illustration below, the value gain of a programming language crucial in automation constitutes 53%, with experience and specialization contributing 21% and 31%, respectively. Location also plays a pivotal role, impacting absolute salaries and skill value trajectory across different pyramid levels.

The implications for organizations, particularly in the realm of automation, are noteworthy:

• Recruiting. Evaluate the value of candidates’ automation-related skills to avoid overpaying or underpaying, ensuring the attraction of top talents equipped for the unfolding tech ecosystem.
• Strategic planning. Enhance decision-making for automation strategies, discerning which skills to develop internally and which to acquire externally. Recognize the influence of location costs on-talent retention and attrition in the context of automation.
• Compensation & benefits. Introduce a skill-based component to the job-grade system, aligning with automation skills. This approach rewards specialized automation skills, fostering employee retention, encouraging learning of future automation-related skills, and attracts new talents suited for an automated future.
• Learning & development. Prioritize automation-related skills with a high-value increase, track the translation of learning and development (L&D) investments into skill value, and measure the return on investment (ROI) in the automation-driven environment.