Process automation will inevitably entail a rethinking of the tasks of top managers. PwC partners Stephanie Hyde and Wilson Chow explain how businesses can prepare for the robotic age in terms of structure
Robots will play a critical role in the workforce. PwC estimates that the proportion of jobs at risk from automation will be around 20% by the mid-2020s and around 30% by the mid-2030s. Workers must be prepared for the emergence of fellow robots, or learn new skills, while machines take on repetitive and dangerous tasks.
Robotics is usually divided into industrial and service.
- Industrial robots are found on assembly lines in factories or as packers and pickers in order processing centers.
- Service robots are needed in the service sector, they replace human labor there, and they do not always represent a machine. Sometimes it’s just an artificial intelligence (AI) program.
Both types of robots will play a role in the transformation of labor, depending on the industry and functionality. This applies not only to ordinary employees, but also to top managers who must lead the process of automating the company, and also be ready for changes in their own work. Managing a hybrid workforce of humans and robots requires new leadership principles. It is important to combine humanism and empathy with a technical mindset. Moreover, new positions may appear in the structure of the company, for example, the director of robots.
Change requires top management to plan a roadmap for their career and their business 5-10 years ahead now. You need to be able to assess both your strengths and knowledge gaps. Of course, automation threatens the jobs of directors to a lesser extent than the positions of factory and office workers, but the very nature of the work of the head will undergo major changes.
Depending on their functions, top managers must rethink their role in the age of robots. Here it is worth considering the following aspects:
- what needs to be done now to prepare for the moment when robotics transforms their business and the entire industry;
- what should be the structural changes of the company;
- what companies need staff, how they will work together, what functions and responsibilities they will have;
- How will the hybrid workforce need to be managed to ensure the harmonious coexistence of the human worker and the robot worker?
1. General director
The responsibility for effective management begins with him. He must present the development concept to the company and lead its implementation. It will be important for the CEO to demonstrate personal involvement in the process of change, an interest in success, and make high demands on himself and his subordinates. When it comes to AI and robots, it’s up to the CEO to make sure the board members have the right expertise to guide the decision-making process. Finally, the CEO will be responsible for creating a corporate culture that ensures the coexistence of man and robot.
2. Financial director
His task will be to monitor the return on investment in business automation, both in his department and throughout the company. The CFO will also be responsible for monitoring compliance with laws and regulations, explaining to investors and authorities the rationale for investing in business robotization. It will also be important to develop an understanding of real and digital relationships (eg working with a supplier using robots) in order to implement appropriate controls.
Over time, robots will take on more and more back-office functions, such as trading calculations and reporting, leaving humans with more complex tasks – high-level analytics and decision making. And financial directors will also have to control this transformation.
3. COO
Leading the transition to a hybrid workforce will fall on the COO. To understand where the changes lead, they will need to close all gaps in technological knowledge.
Different industries may have their own specifics. For example, in industry, the value of automation lies in creating capacity, reducing costs, increasing reliability, and providing flexibility in production processes. Automation is not an end in itself. The COO must implement AI and robots in line with the digital strategy of the business, clearly focusing on the tasks at hand, such as supply chain optimization.
4. Director of Personnel
According to a recent PwC study, 41% of HR leaders believe that their department is up to date with cutting-edge technology, while other top managers speak equally flatteringly about their HR departments only 25% of the time. It follows that HR directors must also fill gaps in their knowledge. They also have the task of developing corporate culture.
Heads of the personnel department should be able to assess the competence of their employees, determine who needs retraining or advanced training. On the other hand, they must ensure that future employees already have the skills that will be needed ten years from now.
The most important thing for HR directors is to embrace the idea that in the world of automation, it’s not the jobs that need to be protected, but the people. Educating employees on the long-term benefits of automation and educating managers in the skills needed for an era of change is their job.
5. Director of Marketing
Under the new conditions, marketing will be perceived not as a financial hole, but as a center for generating revenue. More and more functions of marketing directors will be related to data analysis. Customers will want to receive customized products and services, so marketers will work more closely with the sales team to meet demand. Advanced data analysis, which will be taken over by robots, will free up time for top managers to plan a roadmap and develop a strategy for bringing a product to market.
6. Chief Technology Officer
Chief Information Officer, Chief Digital Officer, even Director of Robotization – no matter what the title of the position, without mentioning IT specialists, it is impossible to talk about changes in top management. During the risk and opportunity exploration period, they should work closely with the CFOs. In addition, they will have a huge area of responsibility: cybersecurity, data management and analysis, work with startups and other players in the IT market. The emphasis should not be on cost reduction, but on revenue generation.
Automation cannot be done in a day, but this does not negate the fact that top management must adapt to the current rate of innovation as quickly as possible. The CEO needs to discuss change today and incorporate new technologies into the strategy without losing sight of the ultimate goal. Who knows, if you don’t have robots in your company yet, maybe you are already among the lagging behind?