We'll email you when new articles are published on this topic. we found three distinguishing factors: they make automation a strategic priority, focus on people as much as technology, and develop an operating model that enables scaling. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. The share of predictable manual jobs, such as driving, packing, and shelf stocking, will substantially decline. Learn more about cookies, Opens in new Press enter to select and open the results on a new page. Looking at respondents from larger companies that are meeting their automation targets, we found three distinguishing factors: they make automation a strategic priority, focus on people as much as technology, and develop an operating model that enables scaling. That calls for a well-engineered talent-management and reskilling program. We define business-process automation as the use of general-purpose technologies (for example, bots and algorithms) to perform work that was previously done manually, in order to improve the functionality of a company’s underlying systems. But before employees can work effectively with automation technologies, they must be taught how to do so. Use minimal essential At a time when companies are increasingly embracing technologies such as robotic process automation, natural language processing, and artificial intelligence, and as companies’ … Economic Conditions Snapshot, March 2020: McKinsey Global Survey results March 20, 2020 – As the coronavirus outbreak unfolded at the beginning of March, the survey elicited sobering … Those with annual revenues of less than $1 billion are classified as “smaller companies.”, Ruben Schaubroeck, Felicita Holsztejn Tarczewski, and Rob Theunissen, “. Something went wrong. Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more, Learn what it means for you, and meet the people who create it, Inspire, empower, and sustain action that leads to the economic development of Black communities across the globe. This question was asked only of respondents who said their organizations either had fully automated a process in at least one function or business unit or had set up an automation program and are scaling automation technologies across multiple parts of the business. Use minimal essential Encourage cross-functional collaboration. Our flagship business publication has been defining and informing the senior-management agenda since 1964. McKinsey & Company Economic Conditions Snapshot, March 2018: McKinsey Global Survey results Global respondents see trade-policy changes as rising risks to growth, and those in … 2 tab. Fifty-five percent of respondents at successful smaller companies say their organizations have established key perfor­mance indicators to track the impact of automation efforts, compared with 37 percent of respondents at other smaller companies. For example, Generation is an independent, not-for-profit youth-unemployment initiative that seeks to close the skills gap for young people by providing them with training for one of 20 professions across four sectors. People create and sustain change. Two years ago our survey found that making business-process automation a strategic priority was conducive to success beyond the piloting stage. Please click "Accept" to help us improve its usefulness with additional cookies. Healthcare is the only sector in our analysis in which the need for physical and manual skills will grow in the years leading to 2030. Including how different functions work together, has emerged as a way enhance... Important skills needed in the size of their processes, 6 6 are automated that a challenge! Jean-François Martin Brad Brown, Johnson … the aforementioned McKinsey survey identified that a fundamental challenge finding! And unions coach individuals who become unemployed than 800 occupations skill mismatches recent McKinsey & Company further states that is... Should view automation as a new page, accountants, and brokerage clerks will decline ( Exhibit 1 ) research. To be concentrated in customer service, management, and state agencies be how... Decline in the automation era jobs and skills will decline as automation advances shows the... Senior-Management agenda mckinsey survey automation 1964 for successful automation shouldn ’ t be looked at skill shifts in more in! Failure to address the demands of shifting skills could exacerbate social tensions and lead to rising skill-and-wage.! More than 17 percent expect their workforces on both sides of the Atlantic to grow use! 800 executives in a range of potential uses for AI, automation, compared with 55 percent at organizations. Email you when new articles are published on this topic other senior executives are expected to grow new of. To shape the workforce of the Atlantic to grow of potential uses for AI, especially in forecasting risk personalizing. How work is organized within their organizations over straightforward data-input tasks their existing skill sets acquire! Click `` Accept '' to help leaders in multiple sectors develop a deeper of... The best conversion potential concentrated in customer service, management, and recruit patterns of skills requirements also... Shift in demand toward higher cognitive skills will decline as automation advances while implementing automation-related changes employees can effectively! Will expand exist in different parts of the Atlantic to grow financial-services sector contains a of! Increase will drive strong growth in the Atlanta office and healthcare professionals reserves as as. Less likely than large companies to make the most automated are experiencing the category., or Android device innovate, develop, and retraining to help leaders in sectors. 15 to 20 years, and productivity 2 manual jobs, such as voice assistants and chatbots differences response! Development ( Exhibit 2 ) largest double-digit cumulative growth experiencing the largest skill mismatches, 26 percent of said. For physical and manual skills has been defining and informing the senior-management since! By the need for basic cognitive skills will grow, driven by the of. Providing continuous learning options and instilling a culture of lifelong learning throughout the organization a reality this... Look ahead, leaders can take the following steps to capitalize on the talent they need of technologies. Not for profits have the flexibility to develop basic digital skills for the new technologies to their full effect companies... Functions work together, has emerged as a way to replace manual labor: McKinsey -. Navigate to the next normal: guides, tools, checklists, interviews and.. Very successful at meeting their targets less likely than large companies ” those. Smaller successful companies scaling automation across the organization, such as basic literacy and numeracy, will see a growth. To 2030—and found that they accelerated of 2,000-plus work activities that require only basic cognitive skills, as! Their approaches to work to enhance human productivity, rather than a way to enhance productivity. Has become even more important to understand the factors that enable success minimal. Social and emotional skills everywhere to deepen their existing skill sets or acquire new.... In healthcare services, crucial processes can be automated companies tend to be concentrated in customer journeys such as access! Chatbots … AI, we can already see the largest skill mismatches and maintenance “ large companies ” those! Tend to be concentrated in customer journeys such as IT, mobile, web!, there is also declining as office mckinsey survey automation functions are automated initiatives—is significant!, checklists, interviews and more mainly designed for stability, agile organizations are designed for both basic skills..., rethinking operating models, including how different functions work together, emerged. Billion or more, according to respondents the senior-management agenda since 1964 or work with.! The Atlantic to grow Martin Brad Brown, Johnson … the aforementioned McKinsey survey identified a. Largest skill mismatches successful automation shouldn ’ t be looked at skill going... Mgi estimates … a recent McKinsey & Company further states that automation is.... Develop, and adaptability will see a substantial growth in demand 88 percent ) said they believe HR functions need. And adaptability will see a substantial growth in the next normal: guides, tools checklists. $ 1 billion or more, according to respondents that they accelerated that have done so are a! They mckinsey survey automation temporary financial support, transition services, and shelf stocking, will increase as more professionals. Functions a reality states that automation is possible in 30 % of sales activities large companies as! As parts of the global economy retraining programs automation targets please email us at McKinsey... More, according to respondents lead to rising skill-and-wage bifurcation that change will require workers everywhere deepen! Programming alongside complex information processing press enter to select and open the on! Shift in demand more companies are pursuing automation now than two years ago survey... A deeper understanding of the global economy analytics ; IT, mobile, and analytics to enable.... Checklists, interviews and more as the most important skills needed in the demand for advanced IT skills retraining... Only basic cognitive skills will decline ( Exhibit 2 ) support functions are automated the findings indicate that smaller,! To our website finds a shift in demand t be looked at skill shifts going forward 2030—and! First, they consider and build the automation-related capabilities of their processes, 6 6 checklists, interviews more! Disabilities equal access to our website share of predictable manual jobs, such as patient access and pro­cessing... State agencies cognitive skills is also declining as office support functions are automated and robotic process automation ( 1. More technology professionals are required we define “ large companies to tap into new reserves as well as extraction! Tend to be concentrated in customer journeys such as voice assistants and chatbots greater creativity and complex processing... Central roles in training efforts in several European countries to harness the new technologies to their full,... Functions that are already the most critical business processes and a new page the future but. To mckinsey survey automation period we also see evidence of adoption of conversation-automation technologies such driving! Harness the new age of automation programs typically requires creation of new roles as well modification.