5 Challenges Organisations Have to Face Before they Evolve

Much is written and debated about the future of organisations. Many approach this by talking about organisational structures, internal communications and how we get the best out of people, but what most of the discussions about flatter, collaborative organisations tend to ignore are the many basic challenges that businesses increasingly face now, and will over the next few years, and which will either have to be dealt with before evolving or else will have to be part of the evolution, probably driving it.

The way we get business, transact and fulfil that business is changing, and no debate about the future of organisations can overlook these changes.

So here are my five challenges that will need to be solved by any future organisation that wants to embrace a vision of more open, flatter hierarchy, collaborative and self-directed strategies. It’s really a question of skills, training, space, engagement and communication.

Knowledge Drain

The recent McKinsey Global Institute Report on Work predicts that by 2020 the global economy will be short of 38-40,000,000 degree educated workers. Primarily as they leave the workforce, taking their skills and knowledge with them, this shortfall accounts for 13% of workers needed at this level. How will companies replace this knowledge and capability?

Skill Shortages – Are we Training the Next Generation Properly?

It seems not. Alarmingly the recent UK Commission for Employment & Skills report on youth employment found that in the UK 32.7% of degree educated 25-29 year olds were working in jobs below their skill levels. The US figure was 25.8% and the OECD average 22.8% (chart below). When we talk about underemployment we usually mean people not working enough hours… the concept of under-utilisation of abilities, knowledge and education is rarely discussed. Continue reading “5 Challenges Organisations Have to Face Before they Evolve”