Disruption, People, and Transformation: Insights from SHRM India Annual Conference 2024 by D Shivakumar

At the SHRM India Annual Conference 2024, D Shivakumar, Chairman MTPL, an Advent PE Company & Conference Chair (SHRMIAC24), delivered a compelling session on "Disruption, People, and Transformation." This talk delved deep into the challenges and opportunities that arise in an ever-evolving business landscape.

By focusing on the balance between technological advancements and human capital, Shivakumar shed light on how organizations can navigate disruption effectively while fostering a culture of adaptability and innovation. This blog highlights the key insights for leaders looking to drive meaningful transformation in their companies.

Recognizing and Embracing Company Transformation

When a company struggles to innovate, attract top talent, or experiences stagnant or declining numbers, it's clear that transformation is necessary. Reacting rather than being proactive is another sign that change is needed. The importance of recognizing an organization's expiry date is underscored by examples like Pete Sampras and Roger Federer, who knew when to step back. Current examples of companies undergoing transformation include Starbucks, Nike, Air India, Intel, Google, and Uber.

Corporate Transformations: Challenges and Success Rates

Transformation is essential but challenging. Bain's 2013 study revealed that only 12% of companies met their transformational targets, while 75% achieved half their goals. Success requires multiple initiatives and strong management. Each management team member should own at least one transformation initiative, increasing the chances of success. Companies that fail to transform risk destroying shareholder value.

Transformation and Gen. AI in Business

Transformation in business involves redesign, divestitures, new business sourcing, and partnerships. General AI plays a pivotal role in increasing efficiency, changing how tasks are completed, and improving predictability, personalization, and business case generation. Having the right data set is crucial for AI effectiveness. Companies failing to adapt to Gen. AI will be left behind, as the AI train has already left the station.

Revenue Management, Amazon, AI, and Employee Attitudes

Revenue management is crucial, with Amazon leading the way by providing detailed product sales information by location. The "pay per use" concept offers predictability for customers, and companies like Intuit use AI to analyze unstructured data from customer calls, enhancing sales productivity. Employee reactions to AI vary, with some proactive or reactive and others doing nothing. Emotions range from fear and distrust to excitement and optimism.

Evolving HR Priorities and Talent Retention Strategies

HR leaders must develop versatility in managing internal and external factors, as well as difficult partnerships. Effective people management is now crucial for career progression. Key takeaways from recent charts emphasize job security and compensation in both retention and attrition strategies, along with increasing flexibility and hybrid working. These factors are essential for retaining and attracting talent.

Addressing Employee Concerns in the AI Era

Employee concerns about AI include fear of replacement and loss of human interaction. Companies should hire capable employees who can adapt to change and encourage unconventional ideas while looking to the future. Strategies and budgeting cycles are becoming shorter due to AI's impact. The employee hierarchy of needs now includes compensation, flexibility, job security, fairness, transparency, and data privacy. Prioritizing capability over loyalty is crucial for future success.