PodChats for FutureCOO: Futureproofing workforce modernisation in 2025

Gartner predicts that rapid technological advancements and evolving workforce dynamics will redefine how organisations operate. Asia is not immune to these global forces reshaping the workplace.

Indeed, beyond the technology and shifting employee expectations, functional leaders, as well as chief human resources officers (CHROs) and chief operating officers (COOs), must reassess their strategies.

In this context, understanding current workplace dynamics, challenges, and opportunities is essential for thriving in an increasingly competitive environment.

Current workplace dynamics

Shan Moorthy, chief technology officer for APAC at Workday, observes that the workplace of 2024 in Asia has undergone significant changes, primarily driven by two fundamental shifts. Firstly, there is a transition from a credentials-based to a skills-based allocation of roles.

"People learn new skills on the job, especially in the current job market where roles are changing dynamically," calls out Moorthy. This shift necessitates a more flexible and responsive approach to talent management, enabling organisations to harness the skills present within their workforce.

Secondly, the speed at which financial information is obtained has dramatically increased. Leaders can now access real-time data, moving away from traditional monthly spreadsheets. This advancement empowers organisations to make informed decisions quickly, driving business growth and adaptability in a rapidly changing market.

Challenges

As CHROs and COOs navigate these changes, they face several challenges. The evolving roles of these executives require them to work closely together to align workforce strategies with business objectives.

Moorthy describes the COO as "the person in the middle—benefiting from technology the CIO brings, working with talent from the CHRO, and drawing down on funds from the CFO."

He refers to it as a "four-way dance" among the executive cohort, emphasising the need for enhanced collaboration to ensure that technology and talent management are aligned effectively.

"Technology is the underlying link between all these functions – each of these offices needs to be able to harness technology to drive the organisation's strategy forward successfully," he asserts.

At the same time, Moorthy cautions that implementing new technologies can lead to change fatigue among employees. He emphasises that one of the organisations' most significant mistakes is overwhelming people with changes.

"Taking the pulse of the workforce before implementing a change will allow leaders to understand how employees are feeling and better shape the change management programme," he explains. This underscores the importance of measuring employee sentiment as a leading metric to gauge workforce readiness for change.

Moorthy insists it's all about observability: "With a closed ecosystem where you can track every step of a business process, leaders can better analyse the bottlenecks and identify opportunities to streamline workflows through automation."

Failing to do so can result in resistance to new initiatives, undermining the potential benefits of technological advancements.

Opportunities

Despite these challenges, significant opportunities await CHROs and COOs in Asia as they prepare for 2025. The integration of technology into workforce modernisation is paramount. Moorthy asserts that organisations have shifted from monolithic ERP systems to centralised platforms like Workday, which serve as anchors for managing people and finances.

The advent of AI agents presents a revolutionary opportunity. These agents are designed to anticipate and streamline common business processes, thereby allowing employees to focus on more strategic and meaningful work.

"At Workday, we've employed this in four areas: recruitment, expenses, succession planning, and workflow optimisation. These innovations will assist, accelerate, and fundamentally transform how people work." Shan Moorthy

Furthermore, the increasing reliance on cloud and Software-as-a-Service (SaaS) models allows organisations to adapt swiftly to market changes. Moorthy advises functional leaders to embrace a continuous evaluation and innovation culture, ensuring they leverage the latest technologies.

"It is no longer optimal to keep technology solutions with a three to five-year life cycle," he warns. A six-monthly cadence of process evaluation can significantly enhance organisational agility.

The road ahead

For Moorthy, having AI-powered tools in the workforce is now the baseline. He explains that organisations need to implement AI and understand how to apply it to augment business processes for specific outcomes. Futureproofing workforce modernisation efforts hinge on this understanding.

Tune in to the detailed discussion on PodChat to delve deeper into Moorthy's insights on how organisations can futureproof their workforce modernisation initiatives.

Questions for Workforce Modernisation

1. Describe the workplace of 2024 in Asia and how it has evolved over the years.
2. How has the role of the CHRO and the COO evolved during this period? How have these changes impacted the relationship between the CHRO and COO?
3. What role does technology play in workforce modernisation efforts? How can organisations ensure their HR technology meets current and future business needs?
4. Given that these technologies will become increasingly embedded in workflows, what metrics can leaders use to measure the effectiveness of their workforce modernisation initiatives?
5. (change fatigue, culture, silos, AI, etc.) What will the workplace look like in 2025, and what is your advice for functional leaders in preparing for this future?