Leadership 2020: 10 workforce trends + 10 critical leadership competencies

Building on the theme of our last blog on Future Work, we look at ten trends that are shaping the employment landscape in the next decade. Out of these trends, we identify ten leadership competencies that we think will be critical for 2020 leaders. Our ten trends and ten competencies have been compiled from a literature review that includes whitepapers, research reports, government(s) data sources, studies and surveys, books and more, tapping the minds of leading authorities in each of the ten trend areas (see graphic below). We've also included our recommended reading if you're interested in learning more. As we end 2011 and take a step closer to 2012, we hope our blog stimulates your thinking about the question of whether your current and future leaders are prepared for 2020. 

10 Workforce Trends

We are living in a time of exponential change. The world of work is changing at an unprecedented rate. By 2020 the workforce will look significantly different than today. For example:

• Employee Diversity: There will be five generations and much greater cultural diversity in the workplace than ever before, leading to a broader set of values and beliefs than today.
• Employment to Deployment: One in two workers will be contingent and talent will be deployed and redeployed from around the world as internal and external labor becomes more mobile. Teams will form to tackle projects, after which they will disband. Work will be done anywhere, anytime in the world. 
• Knowledge Work and Skills Shortages: Three in four jobs will demand higher entry level qualifications as the demand for “knowledge workers” grows and the march towards a knowledge and service economy completes its course. Skills shortages will challenge growth and innovation, especially among STEM (science, technology, engineering and math) career workers. 
• Technology: One-third of all data will live in or pass through the cloud. Technology will connect employees, partners, clients and prospects, making collaboration, transparency and communication vital for success. Information will need to flow faster and in all directions.
• Sustainability: An organization’s lifespan will drop from 45 years to less than 10. To survive, organizations will need to be agile, innovative and demonstrate sustainable practices that are socially responsible.

10 Leadership Competencies

How will this impact the 2020 Leader? Organizations must radically rethink all of their stakeholder interactions, especially those involving their human capital. This includes how to acquire, deploy, develop and retain their people. Bold leadership characteristics will be required to ensure your business adapts and thrives. From our research, we've distilled the following competencies that we think will be critical for the 2020 Leader:  

• Collaborative orientation
• Developer of people
• Learning agility
• Digitally proficient
• Global mindset including cultural agility
• Conscious capitalist/green focus
• Future focus
• Adaptability/change orientation 
• Innovative/creative champion
• 360 communicator 
• Thrives on complexity and chaos

What is your organization doing to prepare your current and future leaders and how many of these competencies are being developed? Included below are some of our top picks to learn more and to stay up to date with the trends and how organizations are responding. 

Recommended Reading: 

• Future Work. Alice Maitland & Peter Thomson. Nov 2011
  Makes the business case for the need to change working practices and culture. Includes a chapter on leaders of the future, as well as results of an international survey and several case studies on organizations who are leading the charge. 
   
• The 2020 Workplace – How Innovative Companies Attract, Develop and Keep Tomorrow’s employees Today. Jeanne C. Meister and Karie Willyerd May 2010. See also Meister and Willyerd’s blog from the book at 2020 Workplace Blog. 
   
• The Shift – The Future of Work is already here. Lynda Gratton. July 2011 
  Lynda Gratton is a professor at the London Business School and has been named the number 12 business thinker (out of 50). She identifies five forces that will fundamentally change the way we work in the next 10-15 years: globalization, society, demography, technology and energy. You can download free chapters and a workbook from this site. Her blog is also an offshoot of her book.  
   
• The Future of U.S. Knowledge Work in a Global Economy 
  Tom Kucharvy’s blog focuses on helping technology companies maximize the business value they derive from their corporate social responsibility and philanthropy initiatives. Many postings deal with workforce trends, tomorrow’s jobs, future skills and STEM careers.
   
• The Perfect Labor Storm Blog – Workforce trends that will change the way you do business. 
  Dr Ira S. Wolfe – author of ”The Perfect Labor Storm: Why Worker Shortages Won’t Go Away”. This blog was awarded the “The HCI 50 Best Blogs – Talent, 2011”.
   
• Transitioning to Workforce 2020. Cisco Whitepaper. 2011 
  This whitepaper explores disruptive trends (globalization, demographics and technology), transformations in work and workers and what this means for organizations and leadership.