Dr. Mainert Cognitive Corporate Consulting C€¦ · 2020 2010 . C3 public 4 Complexity by Region 2016 GDP per Capita 2016 . C3 public 5 The more complex the job, the faster, longer

C3 Dr. Mainert Cognitive Corporate Consulting Powered by

A Tool to Unlock Hidden Human Capital in the XXI. Century

2025

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The Cognitive Lens 2025– The WHY, WHAT and HOW

2

WHY WHAT HOW

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THE COGNITIVE LENS Context: The nature of work has been changing and HR needs to look into it...

1960

1970 1980 2000

50

52

48

46

44

42

40

38

54

56

58

60

62

1990

Cognitive routine tasks

Complex non-routine tasks

Collaborative tasks

% In

crea

se in

dem

ands

%

Dec

reas

e in

dem

ands

(Autor, Levy, & Murnane, 2003; Neubert, Mainert, Kretzschmar, Greiff, 2015; Mainert et al., 2018)

Manual routine tasks

!  Wealth !  Voice

!  21st Century Skills

!  Exit !  Automation !  Release of Energy & Time

2020

2010

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GDP per Capita 2016 Complexity by Region 2016

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The more complex the job, the faster, longer and higher the income

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Accelerate this Development with The Cognitive Lens…

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Source: Roger Martin (2009)

Mystery (of day-to-day work)

(Advanced) Rule of Thumb

Algorithm/Off Shoring

The Cognitive Lens releases Cognitive Energy for high-value tasks

com

plex

ity g

ains

Vi

a si

mpl

ifica

tion

= Simple Routine Task = Complex-Collaborative Human Tasks

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The Cognitive Lens 2025– The why, what and how?

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WHY WHAT HOW

The Cognitive Lens 2020 enables us to •  Articulate the need for human cognition in work tasks •  Use our cognitive capacity (time and energy) most

effectively on high value tasks: To strategize, trouble-shoot, influence, solve complex problems, collaborate, convince, negotiate etc.

•  Forecast, match, train and practice 21st Century Skills for these high value tasks

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A closer look reveals two relevant dimensions: Complexity and Collaboration

8

Collaboration

Com

plex

ity

- + -

+

Routine Collaboration

Complex Problem Solving

Complex, Collaborative Problem Solving

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Imagine to map out your own work tasks!

CollaborationComplexity

- +

-

+

ComplexSolution

SimpleSolutio

n

Automation Augmentation

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Questions addressed by THE COGNITIVE LENS

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The Job Analysis !  What are the required skills for

each type of complex, collaborative activities?

!  What can be automated and/or

augmented?

!  How to release cognitive energy

and time in order to be ready for high-value activities?

Gain clarity in your Core Business Model

Explore combinations of complexity and collaboration levels to derive digital and skills implications Collaboration

Complexity

- +

-

+

ComplexSolution

SimpleSolutio

n


Based on a sample of 41 Category Managers

04 September 2018

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WHY WHAT HOW




The Cognitive Lens 2025 1.  Maps tasks on a space from simple to complex and single to

collaborative, 2.  Maps 21st Century Skills on these tasks 3.  Directs Digital Solutions to tasks 4.  Depicts the released energy and time over the course of time 5.  Achieves Clarity about tasks and responsibilities

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The COGNITIVE LENS Journey

25 November 2019 12

Baseline Activities Streams Interface

TASKS

Numerical Attributes


Core Business Model (CBM)

Organizational Tree

21st Century Skills Level

Profiles Develop ‘Ideal’ Profiles

Peop

le

Ope

ratio

nal

Exce

llenc

e D

igita

l

21st Century Skills Training

Job Tasks

Time (FTE)

Complexity

Collaboration

9 days 18 days

CBM Clarity Develop As is & To Be

Digital Potential

Automation Potential

Map Profiles to CBM

Migration Potential

Digital Tools

Analysis Metrics Goals

Empirical Paths

Strategic Paths Key:

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9 days C3

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The Cognitive Lens supported A Field Work with data about Collaboration, Complexity, Time on Task (in FTE) of 40+ Global Category Managers The scope was a subsample of 41 Global

Category Managers

This report accounts for 10% of the considered workforce

370 Purchasing Categories

99% of all Strategic Categories

Data about Complexity, Collaboration & FTEs

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Internal benchmark confirms: Free up time/energy from routine tasks to more complex, collaborative tasks…

Collaboration

Com

plex

ity

- + -

+

Routine: Collaboration:

Complex Problem Solving:

Complex, Collaborative Problem Solving:

as is to be Key: Empirical time

20%

1%

0% 20% 40% 60% 80% 100%

60%

42%

0% 20% 40% 60% 80% 100%

5%

23%

0% 20% 40% 60% 80% 100%

15%

34%

0% 20% 40% 60% 80% 100%

!  23% of current category managers’ focus on routine tasks

!  which are to be shifted to +60% focus on complex-collaborative tasks

Note: Based on a sample of 41 Category Managers

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THE COGNITIVE LENS supported the Local Market Transformation by undertaking a phased field work assessment…

The scope was 4 countries totalling a workforce of 74

This report accounts for 100% of the assessed workforce

In terms of Profiles, the assessed teams are essentially staffed with Business Partners and 8 Enablers in a supporting role

IE, 9 UK, 37 PT, 9 ES, 19 FTE

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Profile: Business Partner

Enabler Logistics Other Total

All 61 8 0 5 74

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… in comparison, the Local Supply Chain Management seem to already be operating in a complex and collaborative environment…

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Collaboration

Com

plex

ity

- + -

+

Simple Collaborative

Complex Complex, Collaborative

Glo

bal S

CM

Lo

cal S

CM

K

ey: %

Tot

al F

TE

1.2%

1.0%

0% 20% 40% 60% 80% 100%

62.9%

42.0%

0% 20% 40% 60% 80% 100%

6.3%

23.0%

0% 20% 40% 60% 80% 100%

29.6%

34.0%

0% 20% 40% 60% 80% 100%

!  Why do the Local Markets perceive more of their tasks as complex-collaborative than the Global SCM (Supply Chain Management)?

!  What does this tell us about the relationship between Global and Local SCM?

Note: Based on samples of 41 global and 74 local Category Managers

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50,000 Hours

Of local market business activities tasks analysed

Sourcing

As the process where people spend most of their time at 23% Stakeholder

Management

Is the activity which consumes the most time i(e.g., in Portugal at 20%)

Attending Meetings & Calls

As the number one time consuming task at 9.4% 2.73 &

2.51 The average level of collaboration and complexity across all tasks

… from THE COGNITIVE LENS in the UK, Ireland, Spain, & Portugal, the following highlights should be noted…

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… in addition, the Local Teams voiced a number of topics that they felt strongly about…

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“I close a lot of businesses with empathy and a hint of humour” Portugal

“I am given vendors and revisit them: I bring the contract to life, make savings -a laborious thing-, and do commercial“ Ireland

“I am very privileged in what I do: I coordinate the relationship with the business“ Spain

“We would need a person to take over process information questions” Spain

“We get a lot of wrong category codes in the shopping cards” UK

“If something has to happen fast you loose a lot of time” Portugal

“A typical Global SCM answer to my $800 k sourcing projects is: We are not interested below $ 2.5 million” UK

“When the process is closed, Global SCM claims the work done, because they think it was done by them. So we got no recognition for our value ” Portugal

“I do not see my tasks in the core business model. –We do something like the dark art of savings” Ireland

Dis

tract

ors

Wha

t We

Do

Cor

e B

usin

ess

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The Local Markets have the following effort split throughout the Core Business Model…

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Manage Payables

Others Supply Chain Strategy, Change & Planning

Sourcing & Supplier Management

Procure to Pay

Inventory and Outbound Management

Sales Order Fulfilment

Supply Chain Master Data

Network Stock Solution

Core Business Model

19

% FTE

Almost half the effort is invested in “Sourcing & Supplier Management”, followed by “Procure to Pay”. Activities outside the Core Business Model (CBM) account for over 40% of the effort. –What do they do there beyond the CBM?

1.54

32.93

7.09 1.05 0.00 0.00 1.19 0.04

30.15

2.1%

44.5%

9.6% 1.4% 0.0% 0.0% 1.6% 0.1%

40.7%

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What can be done after validating the data? –Process Migrations to achieve Operational Excellence

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Process FTE Recommendation Action Transfer (FTE)

Efficiency (FTE)

Process A 0.8 X Concentrate activity

in Global SCM. Transfer accountability and resources to Global SCM. 0.8 0.1

Process B 3.2 ✔ Keep Local. Maintain As Is. - -

Process C 1.2 X

Migrate to Shared Services. Standardize.

Off-shore activity and consolidate with standard process. 1.2 0.2

Process D 2.6 ✔ Keep Local.

Optimize. Automate process with RPA, shift time to value adding tasks. - 0.4

7.8 2.0 0.7

Illustrative

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What is the Digital Potential?

Collaboration

Com

plex

ity

- + -

+

Robotics Process Automation

Engagement and Virtual Assistants

Cognitive Automation and Insights

Decision Support Systems

Com

plex

Sol

utio

n S

impl

e S

olut

ion


e.g., Procurement Online Platform to build category strategy in a more collaborative, efficient and insightful way

e.g., iView/BI and SCM control centre for valid and instant category insights

e.g., FAQ and support to employees assisted by Amelia, guided buying, Cognitive Buying Assistant

e.g., RPA bots to drive process efficiency and automate routine tasks, previously time consuming

!  Complex-collaborative tasks increase value delivery as more time and energy are available due to digital tools to facilitate this type of activity

!  Simple collaborative tasks will see a decrease thanks to virtual assistants that reduce redundant handshakes between collaborators and seek for information

!  Complex, heavy analytical tasks made more accessible by releasing time and energy tied to low value processes

November 2017

C3InsertConfiden,alityLevelinslidefooter

High

High

Low Low

Microsoft Office Skills (…)

Send a Purchase Order

Execute a Shopping Cart Approval

Daily Work Planning and Priorization

Personal Resource Management; Digital

Fluency

Choosing , Installing, and learning new Purchasing

Applications

Creativity, Proactivity, Storytelling, Tolerance,

Curiosity, Design Thinking

Evaluate Supplier Proposals

Review and Negotiate Contract

Create and Approve Category Strategy

Gather Business Requirements

Interpersonal Skills, Perspective Taking, a Sense of Duty, and

Agreeableness

Rejecting a Supplier

Define Sourcing Schedule

Complete Qualification Webform

Task

Skill

KEY

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Where are the different Tasks and Skills mapped out?

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Personal Resource Mngmnt

Goal Communication

Goal Setting

Persistence

(…)

(…)

Collective Shortcuttin

g Pragmatism

Reality Check

frugality (…)

(…)

Digital Fluency

explicit digital Knowledge

implicit digital Knowledge

Digital Self-Efficacy

Programming

Experience

Working purely

digitally

Open Source

Thinking in states Digitalizability

(…)

(…)

(…)

Visionary Thinking

Self-Efficacy

Inventiveness

number of valuable ideas

(…)

(…)

Storytelling

Learn from the Future

Travel into the Future

(…)

Capacity for Enthusiasm

(…) (…)

(…)

(…)

What are the right 21st Century Skills to practice?

Empathy

Ability to Resonate

(…)

Self-Control

Focus

Unyielding

Workflow

Active Listening

(…)

(…)

21st Century

Skill

Proxy of a Skill

Behavioral Indicator

supportive or compensatory impact

reciprocation

proxy/indicator of this skill

KEY

3-level Skill

Cluster

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Kolb Circle

1. Do!

2. Check! 3. Act!

•  Design a different chewing gum for 15-25-year-olds

Design Thinking is a type of collective creativity that enables us to •  empathize, •  discover, •  define, •  develop, and •  deliver a product or service in less time. That is to develop a product from the clients' perspective, iterate prototypes fast, and balance new ways of working with established ways of working.

4. Plan!

E.g., Capacity

for Change – Design Thinking

Practice to •  empathize: Take client perspective, •  discover: With open awareness, what is

particular (e.g., evironmental foodprint of a common chewing gum made of oil),

•  define: the vision, features, and implementation plan,

•  develop: sketch product with all its detail, and

•  deliver: explain the sourcing

•  Write a checklist of design thinking with the 4 "d" and specificy what they mean for your assignment

Note: In a Workshop setting, I teach 21st Century Skills using the Kolb Circle of adult learning

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21st Century Skill Trainings

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Kolb Circle

1. Do!

2. Check! 3. Act!

•  How would you systematically decide whether a task can be crunched into an algorithm or not?

•  Essentially, Implicit Digital Knowledge is a Skill to decide whether a task can be automated or not. -Requires to think in states, decision trees, and if, then rules

4. Plan!

E.g., Digital Fluency – Implicit

Digital Knowledge 1.  define, what an algorithm is

2.  judge, how rule based tasks are

3.  Apply your judgement to your own work!

•  Put your tasks and activities in rank order, depending on how rule-based they are.

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21st Century Skill Trainings

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The COGNITIVE LENS Journey

25 November 2019 26

Baseline Activities Streams Interface

TASKS



Core Business Model (CBM)

Organizational Tree

21st Century Skills Level

Profiles Develop ‘Ideal’ Profiles

Peop

le

Ope

ratio

nal

Exce

llenc

e D

igita

l

21st Century Skills Training

Job Tasks

Time (FTE)

Complexity

Collaboration

9 days 18 days

CBM Clarity Develop As is & To Be

Digital Potential

Automation Potential

Map Profiles to CBM

Migration Potential

Digital Tools

Analysis Metrics Goals

Empirical Paths

Strategic Paths Key:

✓

9 days C3

✓

✓

✓

✓ ✓

✓

✓

✓

✓ ✓ ✓

✓

✓

Map Profiles to CBM

✓ ✓

✓

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WHY WHAT HOW




A Field Work with data (Interviews & Job Analyses) about Collaboration, Complexity, Time on Task (in FTE) of 40+ Global and 70+ Local Category Managers

The Cognitive Lens 2025 1.  Maps tasks on a space from simple to complex and single to

collaborative, 2.  Maps 21st Century Skills on these tasks 3.  Directs Digital Solutions to tasks 4.  Depicts the released energy and time over the course of time 5.  Achieves Clarity about tasks and responsibilities

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What are some conclusions that we can draw?

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Methodology

Material: The Cognitive Lens is a visualization tool in excel that maps out the Core Business Model in a matrix of complexity, collaboration and time, based on the rating of the incumbent

Procedure: 60 min of in-depth, standardized interviews in a transformational exercise and follow-up to finish the exercise alone

Analysis: Data aggregation in order to achieve a country-view on complexity, collaboration, and time; results are filterable and can be ‘drilled down’ by process, activity, task, person, and team

Where time is spent The Local Markets’ most time consuming process include Business Partnering and Enabling (22.8% ) followed by Sourcing(22.6%)and Supplier Management taking (21.6%)

These Markets spend most of their time in the four activities of StakeholderManagement&BusinessPartnering (21%) with the next highest in InternalMee,ngs&Communica,ons(13.3%),InternalMee,ngs&Communica,ons(9.5%) and finally Setting Up Sourcing Process (8%).

The top 3 most time consuming tasks are AKendingcallsandmee,ngs (6.1%), followed by Crossfunc,onalIssueresolu,on (4.3%) and SupplierEngagement/PerformanceManagement(2.6%)

Some key takeaways Increasing efficiency and team cohesion by having better clarity on team roles and responsibility

The upper-left quadrant is underrepresented, indicating potential lack of time for solitary analytical tasks due to time consuming activities such as stakeholder management. Alternatively, these tasks may be requiring a degree of collaboration such as requesting access, or requiring process information.

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Summary of THE COGNITIVE LENS

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What is it? •  Visualization tool based in excel based on modern cognitive theory and the changing nature of work •  Measures the degree of complexity, collaboration and time for each process, activity & task •  Based on the company’s core business model (CBM) making it scalable to other parts of the business •  Allocates CBM processes, activities, and tasks within a 4 quadrant matrix to determine best applicable

technology or action needed

Com

plex

ity

Collaboration

Automation

Augmentation Analytics

Support Bots

How does it Work?

•  Based on in-depth onsite explorations •  Validates and measures delta from existing core business model •  Results are plotted on dynamic visualization graphs •  Results are filterable and can be ‘drilled down’

Example of activities falling

under the “routine” quadrant

Why a Cognitive Lens?

•  Routine & solitary tasks bring less value to the organization if done by a person •  Identify areas where ‘cognitive energy’ and time can be released and shifted to high-value tasks •  I.e., Achieve operational excellence by dedicating energy and time to simplification •  Highlight and prioritize areas for technological change and Design Thinking transformation •  Identify the 21st century skills that are required to fulfil the jobs of tomorrow

Example of complex high-value activities

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Successfully developed and launched in Vodafone Procurement Company 2017-2019

The Cognitive Lens contributed to an increase in •  job satisfaction •  voice •  indirect human

capital savings (EUR 4.6 Mio)

and a decrease in •  turnover of staff •  absenteeism •  routines

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Dr. Jakob Mainert, Industrial Psychologist

Dr. Mainert Cognitive Corporate Consulting

-An investment in knowledge pays the best interest (B. Franklin)

mobile: 00491634366686

[email protected]

mainert.lu

Documents

Dr. Mainert Cognitive Corporate Consulting C€¦ · 2020 2010 . C3 public 4 Complexity by Region 2016 GDP per Capita 2016 . C3 public 5 The more complex the job, the faster, longer