We all need to learn how best to manage change
FAR from being a sleepy midAugust, it seems that change in the air. The recent Eisteddfod in Cardiff Bay showed that change can be a good thing, with the vast majority of people agreeing that the “Eisteddfod heb ffiniau” (Eisteddfod without borders) had been a great success and had opened up the festival to a whole new audience – essential if the Welsh Government’s target of one million Welsh speakers is to be met by 2050.
In politics, the leadership contests across the main Welsh parties are beginning to hot up.
Autumn will bring a new leader for Welsh Labour – and of course a new First Minister – and change will inevitably follow that appointment. Plaid Cymru may also see a change in direction depending on the outcome of its leadership contest.
Brexit discussions continue, and the possibility of the UK exiting the EU with “no deal” now looms large, together with the disruption that this might bring to a range of areas of activity.
The recently-published Assembly Economy, Infrastructure and Skills Committee report, entitled Industry 4.0 – The Future of Wales, outlines the changes that will affect the Welsh economy in the coming years and recommends the action that needs to be taken to meet the challenges and exploit the opportunities.
According to the report, it has been estimated that 65% of children entering primary school today will ultimately end up working in completely new job types that don’t yet exist.
It has also been estimated that one in three Welsh jobs were at risk of being automated by early 2030s. But there are also new opportunities and new jobs that are likely to arise in the economy of the future, for those with the right skills.
The Assembly report cites the example of The Number Hub – an accountancy business based in Taff’s Well. Founder and CEO Marsha Ward told Members how automation of data entry had freed up accounting staff to spend more time focusing on customers, and less copying digits from paper to screen.
The report highlights the need for skills development to enable workers threatened by automation to retrain and upskill. In these times of limited funding, there are financial implications for providing learning opportunities in the right way to so many people, but Dr Rachel Bowen of Colegau Cymru highlighted the importance of doing so, noting that the costs of not investing in education might be even greater.
All this means is that businesses large and small are having to re-evaluate, probably at a faster speed that ever before.
New approaches are needed, even when it comes to what a business looks like, how it acts and how it delivers value.
Because of all this change, organisations are using business model design to build unique and different approaches to creating value.
At ACCA we are conscious of the ways that change will affect our members and students, regardless of the sector in which they work.
Our recently-published report by ACCA’s Jimmy Greer, Business Models of the Future: Systems, Convergence and Characteristics, addresses the need for change and how businesses can adapt. In today’s everchanging world, organisations are using business model design to build unique approaches to creating value that have the potential to radically disrupt industries.
This report identifies 12 characteristics behind business model design that are being used by organisations in different ways to create new sources of value.
One of the characteristics is about being “platform-ready” – where online platforms can provide an opportunity to unlock value through building communities, empowering individuals and benefiting from online networks. Value can also be created when a business model is “purposeful” – creating a sense of purpose, and then communicating this sincerely to employees, customers and partners – to build resilience and long-term value.
What’s clear from this report is that value is not just about income and profit – it’s also about culture and the skills of the people working for the organisations.
New knowledge and skills will be in demand. So the skills we’re developing in our students through our qualification, and for our members through their CPD, means they’ll be able to be the strategic advisers business needs to adapt and thrive.
Handling disruption and managing change may seem like an uphill struggle. Which made me think immediately of Geraint Thomas and his fantastic achievement in winning the Tour De France last month. Gear changes and a shift in pace are not just for world-beating cyclists, but for businesses large and small too. But the link between business success and sport motivation is a whole other column to ponder.
In the meantime, here’s to successful change, and llongyfarchiadau, Geraint – you’ve done the nation proud.