Our Content Editor, Gabriel Barnes, speaks to Mark Spelman, former Global Head of Strategy at Accenture and advisor on the Digital Economy at the World Economic Forum. He shares some of his insights on the evolving business landscape and what it means for talent, technology, and climate change.

Gabriel Barnes – What are your predictions for the business landscape in the years to come? How do you think leadership will need to adapt?

Mark Spelman – To my mind, leadership is about interpreting often conflicting trends and providing clarity. This coming decade in business will be shaped by three things: covid, digital, and climate change.

Much of the current debate has focused on the short-term impacts of Covid, the rollout of technologies such as artificial intelligence, and the setting of net-zero targets. Good leadership navigates the short term and embraces a long-term horizon. But what distinguishes the best leaders are those that can also provide clarity about the medium term.

I see three areas that leaders will need to focus on as they try to navigate the medium term:

• With Covid – the emphasis will change from work patterns to identifying which talent and behaviours can enable greater agility of business models.
• With digital – there will be a shift from the development of specific technologies to combinations of technologies with better-quality decision-making capabilities.
• With climate change – the focus on the setting of targets will shift to outlining roadmaps and journeys to deliver measurable progress to net zero.

Gabriel Barnes – In what ways do you think technology will change or develop, and what will this mean for recruitment and upskilling?

Mark Spelman – Of course, Covid has demonstrated the important role of technology in our business models. We know now that both the scale and the impact of the roll-out of new technology will continue to increase throughout the rest of the decade. What will make the next ‘tech wave’ even more powerful is the combination of connectivity with real-time data and embedded intelligence. The connectivity of more devices – through 5G, sensors, the cloud, and so on – will change the face of cities, office buildings, factories, and supply chains.

Whilst it is easy to predict and understand technological developments, it is harder to pinpoint what this means for talent. Yet there are plenty of signs of how the nature of work is being transformed, and the human capital agenda is adjusting to these new consumer demands and business practices. The question is whether the speed and scale are adequate.

Gabriel Barnes – How can organisations prepare for these changes?

Mark Spelman – We know that reskilling existing talent through more regular training and learning on the job is one dimension, and many organisations are well-acquainted with this. However, developing the ecosystem workforce and attracting new digital and climate talent could be more challenging for many firms which lack a strong employee-centric brand.

We have spent a long time making humans work more systematically; the emphasis on technology and automation is a continuation of this trend – but now the focus is shifting to how we make technology more human-centric. Companies must ensure that they do not over-focus on technology and underemphasise the importance of making full use of their human skill base.

Gabriel Barnes – At a time when the use of technology is changing so rapidly, what role will the climate emergency play in forcing organisations to adapt?

Mark Spelman – COP26 in Glasgow later this year will be a catalyst for the next phase of climate action. The UK committed to net-zero legislation in 2019; to meet our 2050 commitment we will need to decarbonise the economy at the rate of 1% every 14 weeks. The impact on our business models and supply chains will accelerate as we move to net zero. For example, companies will need to develop detailed plans that incorporate more decentralised, local generation of clean energy. This may include the introduction of energy storage, cleaner transport, circular economy practices, and the use of traceable materials. The design of net-zero pathways will require businesses to adopt a new wave of systems, processes, and skills.

Gabriel Barnes – And how will organisations adopt these new ‘climate emergency skills’?

Mark Spelman – Just as we see waves of new technology prompting reskilling, so will climate change. Yet the signs of proactivity are mixed; there is a gap between intent and reality. Adapting to climate change will be a significant hurdle for all organisations – and change of this scale will mean that top-down leadership only will not be sufficient. The business will need to look at how to embed net-zero practices throughout the organisation.

This will of course require more highly skilled individuals and I consider the current means to address this – from knowledge acquisition to skills development and in-house training – to be, at best, flat. 2021 is going to be a transition year, an opportunity to reassess strategies.

Wise leaders should see that the battle for digital and climate talent will only intensify in the years to come and needs to be a critical part of future-proofing their businesses.

Gabriel Barnes – So what is next for leaders?

Mark Spelman – The scars of Covid have impacted different industries in different ways. For some, the challenge is still survival, and that will be a significant leadership test in its own right. But for many leaders, 2021 will be the year when the best will be able to operate across multiple timeframes – not just the short term – but critically recognising the impacts of Covid, digital, and climate on the medium and longer terms.

A good test for all leaders is how well they can articulate where the business will be in 18-24 months’ time. The narrative will include dimensions of demand, supply, and changes to the business model. The question is whether there has been enough thought into how the use of technology and talent together can address the challenges of changing customer demand in a way that is more compatible with a net-zero world.