Driven by a surge of on-demand labor platforms and online work management solutions, legacy models and hierarchies are being dissolved and replaced with talent marketplaces.

This resulting on-demand enterprise will be key to the rapid innovation and organizational changes that companies need to transform themselves into truly digital businesses. Technology isn’t just changing workplace tools. It’s also radically reinventing the way businesses are designed, built, and run. Imagine a large enterprise, but with almost no organization chart. Picture a business that seamlessly mixes resources into ad-hoc teams, formed to accomplish specific goals, then dispersed and re-mixed to move on and accomplish the next up front benefit.

WordPress parent company Automattic uses technology to run their company much differently than most, and more like the scenario above. Automattic’s staff of 450 spans 45 different countries and has eliminated traditional organizational hierarchies: business is done based on project teams ranging from two to 12 workers. Teams are encouraged to experiment with new ways of collaborating to complete jobs, and so far, the experiment has been a great success. Automattic is valued at more than $1 billion, and has become the ubiquitous leader in content management on the Internet with 25% of websites using the Automattic platform.

New technology companies aren’t the only ones reinventing the traditional approach to the workforce; incumbent enterprises are doing it, too. Procter & Gamble (P&G) is creating new ways of getting the job done by experimenting with larger external talent marketplaces. The 180-year-old company is embracing ondemand talent as a true innovation, augmenting their current workforce with freelance workers. P&G recently completed a pilot program using Upwork’s freelance management system Upwork Enterprise, and the results speak for themselves: products from the pilot program were delivered faster and at lower cost than with conventional methods 60% of the time.

The company is now looking to expand their efforts in this area, committing millions of dollars in funding over the next two fiscal years. Of the IT and Business executives we surveyed, 85% indicate they plan to increase their organization’s use of independent freelance workers over the next year.

These moves are indicative of a larger trend: businesses are transforming their organizational models and the way they manage their people to take advantage of an increasingly digital and on-demand workforce. Labor platforms are enabling workers to become more liquid, supporting distributed teams that are quickly assembled to complete projects and then dispersed. With this flexibility, companies are moving toward models where they run their organization less like a hierarchy of static business processes, and more like an open talent marketplace. Businesses gain the power to quickly look internally or to the external labor market to meet demand for skills. These talent marketplaces are not only more efficient, but also enable companies to change rapidly and innovate in ways that weren’t possible before.

Enterprises that have been intently focused on technology investments for their products and services are now under extreme competitive pressure to extend innovation to their workforce, and even their corporate structure. By taking steps to experiment with workforce technologies today, businesses will set a path to become built-for-change companies – removing by far the largest obstacle to leadership in the new digital economy. Labor platforms offer nothing short of a talent revolution. The result? A management model evolution – from legacy models to orchestrated talent marketplaces.



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Communicated by Accenture



Publié le 27 mars 2017