Most Automation Transformations Fall Short, Despite Opportunity to Reduce Costs by as Much as 30%
According to new research from Bain & Company, companies across industries are overusing automation and underestimating the challenge of transitioning workers into the jobs of the future. The survey results are included in Bain’s new report: “The ultimate goal of automation: Workforce Intensification” which shows that increasing the workforce in all industries has reduced costs by up to 30%.
Automation, artificial intelligence (AI), and the rise of an augmented workforce will make leaders think differently about the value their employees bring; However, according to Bain, very few companies take a purely strategic approach as they go through the automation transition.
“Successful transformations will change the way employers manage and reward workers,”
“The real value of automation lies far beyond the traditional efficiency plays. When done right, automation enables employees to focus on truly human, high-value activities, creating what we call the ‘augmented workforce.’ Our research shows that many employees want to use automation and that letting them do so will increase personal job satisfaction, improve customer experience and deliver better outcomes for shareholders.”
Rasmus Wegener, Americas leader of Vector℠, Bain’s digital delivery platform.
Focus on higher-value work
One of the biggest obstacles facing companies that want to achieve transformation is getting their employees to change their habits; something Bain says will require communication, support and prompting. A concerted effort is needed to redesign processes, encourage participation, and rethink how work is done. Whether measured by cost reductions, growth opportunities, or improved Net Promoter Score℠, most companies don’t hit all their conversion goals overnight.
According to Bain, leading companies will create in-house communities of expertise, while automating or outsourcing tasks that don’t require a lot of problem-solving, creativity or communication skills. Research shows that the best-performing companies assign more than 90% of their top talent to roles deemed critical, while other companies assign only 20% of their top talent to these roles. According to Bain, workers can benefit from automation in three areas:
- Problem-solving. Companies can support workers with training in strategies that include establishing perspective, disaggregating problems, framing solutions and deploying analogical reasoning; all of which can greatly improve decision-making.
- Creativity. Everyday creativity required for success in future jobs can be taught by introducing workers to the right techniques and tools.
- Interpersonal communication. Empathy, introspection and behavioral adaptation will be increasingly important.
“While automation capabilities are underutilized, our research shows that only 12% of companies that are undergoing changes during major initiatives achieve their goals,”
“Successful automation programs depend on the support of the workforce, including contributors who can describe how processes can be improved, and creators who learn how to build simple automation that improve processes.”
Ted Shelton, expert partner within Bain’s Performance Improvement practice.
The augmented workforce: four important roles
As companies adopt large-scale automation initiatives, Bain sees employees take on one or more of the following four roles that work to support successful transformations:
- Contributors: Employees who are closest to a process are the ones who can usually describe how it can be improved.
- Creators: Similar to “citizen developers,” creators can build simple automation that improves processes.
- Coordinators: Specialists who provide tools, education, support, and ongoing monitoring for everyone whose job is touched by new automation.
- Consumers: Almost all employees are within this group since automation touches nearly every role in one of two ways: scheduled automation provides information and insights to support good decision-making and on-demand automation triggers employee action.
Replicate a successful automation program
Bain found that companies that successfully transition to an augmented workforce often achieve two important things. This includes aligning business and technology with plans to create new value for both the business and its employees and ensuring they have the right tools and programs in place to empower workers. motion. To do this, companies are encouraged to develop a value creation plan that aligns automation goals with business strategy, as well as select the right technology and vendors to support users. labor in transition.
Additionally, automation initiatives should also strive to benefit each type of stakeholder:
customer and employee experience, risk mitigation, career opportunities, and rewards.
Where to start
While the transition to automation can take time, Bain encourages companies to care and support their employees as they move into richer, higher-value tasks. When setting automation goals, it’s important to aim high, while balancing business aspirations with the amount of change and the time it takes to fully execute.
“Companies should begin by prioritizing a few high-impact initial use cases to help the organization see the value of automation,”
“A successful shift will leave employees feeling empowered.”
Rasmus Wegener, Americas leader of Vector℠, Bain’s digital delivery platform.