Despite fears of robots replacing humans in the workplace, people continue to remain a vital component of every organization's success. In fact, it is estimated that 70–90% of mergers and acquisitions fail.1 This lack of success is attributed to leadership, people and cultural issues.
As portfolios and business models become more agile and diverse in their responses to business and technology change, the practice of putting the right leaders and people with the right capabilities in the right place for the right cost, is becoming correspondingly complex. And the pace of change is so fast that businesses must anticipate the organization, leadership and workforce changes, otherwise a major performance gap will emerge.
Many organizations' first response to talent gaps is to recruit the talent and/or skills they think they need: hiring contractors, building up a core contingent worker base or managed services capability, or other non-traditional forms of labor supply. Yet each of these options presents its own challenges and the data suggests that recruitment is not the underlying issue. According to this year's M&A survey, Global Capital Confidence Barometer, 66% of respondents are still determining how best to use contingent workers while retaining the organization's corporate culture; 55% say they are struggling to hire people with the right skillset; 34% are challenged to reskill their existing workforce to better respond to technology changes.