Automation In industries - The New Leadership in Change Management

Introduction

How is automation going to change the workforce over the next five to ten years?

It has the potential to be transformational. In many cases, machines are able to perform certain tasks more efficiently, reliably, and consistently than humans. They do not take time off sick, go on holiday, or strike in protest. Much will depend on how willing businesses are to spend time and money in identifying potential applications for automation within their organizations and then actually implementing the technology. They will need to be satisfied that investment in automation will provide appropriate financial returns or other long-term benefits. Importantly, they will also need to trust the automated processes and the decisions/actions that AI systems take. Of course, automation is hardly a new phenomenon. Human labor has long been replaced by technology (from the Industrial Revolution to the introduction of robotic arms in factories). We have become comfortable with this form of automation, as we know how it works and can generally override the system if it malfunctions or produces undesirable outcomes. With AI, it is more challenging. To get the most out of such technology humans must relinquish some control and allow a machine to learn, correcting and improving its outcomes as it processes ever-larger quantities of data. Ultimately, the success of widespread AI depends on creating an environment of trust. Developing transparent or explainable systems is key to ensuring that people have a better understanding of how algorithms make automated decisions. As technology has progressed, humans have ultimately learned to adapt and find new types of work. I fully anticipate that the same will happen here and we should not underestimate the continuing value of human labor in the future workforce. Human creativity and “soft skills” such as empathy and developing human relationships will still be vital in many lines of work. People like dealing with people. Automation can augment what humans do and complete tasks that are dull, dirty, or dangerous much more quickly and safely. It is this collaborative relationship between man and machine that will redefine the workplace for future generations.

Procs and Cons of Automation

Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labor, and reduced factory lead times. Higher output and increased productivity have been two of the biggest reasons in justifying the use of automation. Despite the claims of high quality from good workmanship by humans, automated systems typically perform the manufacturing process with less variability than human workers, resulting in greater control and consistency of product quality. Also, increased process control makes more efficient use of materials, resulting in less scrap. Worker safety is an important reason for automating an industrial operation. Automated systems often remove workers from the workplace, thus safeguarding them against the hazards of the factory environment. In the United States, the Occupational Safety and Health Act of 1970 (OSHA) was enacted with the national objective of making work safer and protecting the physical well-being of the worker. OSHA has had the effect of promoting the use of automation and robotics in the factory. Another benefit of automation is the reduction in the number of hours worked on average per week by factory workers. About 1900 the average workweek was approximately 70 hours. This has gradually been reduced to a standard workweek in the United States of about 40 hours. Mechanization and automation have played a significant role in this reduction. Finally, the time required to process a typical production order through the factory is generally reduced with automation.

The main disadvantage often associated with automation, worker displacement, has been discussed above. Despite the social benefits that might result from retraining displaced workers for other jobs, in almost all cases the worker whose job has been taken over by a machine undergoes a period of emotional stress. In addition to displacement from work, the worker may be displaced geographically. In order to find other work, an individual may have to relocate, which is another source of stress. Other disadvantages of automated equipment include the high capital expenditure required to invest in automation (an automated system can cost millions of dollars to design, fabricate, and install), a higher level of maintenance needed than with a manually operated machine, and a generally lower degree of flexibility in terms of the possible products as compared with a manual system (even flexible automation is less flexible than humans, the most versatile machines of all). Also, there are potential risks that automation technology will ultimately subjugate rather than serve humankind. The risks include the possibility that workers will become slaves to automated machines, that the privacy of humans will be invaded by vast computer data networks, that human error in the management of technology will somehow endanger civilization, and that society will become dependent on automation for its economic well-being.

These dangers aside, automation technology, if used wisely and effectively, can yield substantial opportunities for the future. There is an opportunity to relieve humans from repetitive, hazardous, and unpleasant labor in all forms. And there is an opportunity for future automation technologies to provide a growing social and economic environment in which humans can enjoy a higher standard of living and a better way of life.

How do we improve acceptance and adaptation rates in managing change?

Law firm, Taylor Vinters believes that even leadership and how leaders lead will not be immune from automation. They believe the most effective future leaders will be those who recognize the potential value of automation, in the specific context of their own organizations and sectors. Such leaders will spend some time thinking about how technology can augment their workforce over the next 5 to 10 years. What tasks or processes might be done more efficiently or reliably by machines rather than humans? How can they better make use of data they already collect and process to improve financial performance, enhance existing products or services or offer new ones? These leaders will engage with tech developers who may be able to create bespoke solutions to meet their specific needs (and may even employ them in-house). They will also use data scientists to exploit and analyse the huge volumes of information they already have. Alongside this, they will also consider the long-term impact of automation on future resourcing requirements and communicate openly with existing employees about the future. Effective consultation with the workforce will help to maintain good staff morale and productivity by addressing any underlying concerns about job security and being clear about how employees will be given the skills to work alongside any new technology. Engaging in the process of reinventing jobs will thus transform work and organizations as well as leadership. Future leaders must become more adept at:

• Constantly deconstructing and reinventing jobs as technology continues to evolve.
• Coordinating work delivered by combinations of humans and automation.
• Nurturing human-robot collaboration.
• Navigating work that’s perpetually changing.
• Engaging employees and customers as collaborators.
• Finding and nurturing employees’ competencies.
• Serving as a hub for a boundary-less talent ecosystem that includes regular employees, contractors, gig workers, volunteers, AI, and robotics.

The future leaders when equipped with the right skills only can contribute to the higher adaptation rates as they act as the catalyst to the value addition and change management.

How do we ensure effective change management?

AlignOrg Solutions has developed specific strategies to help leaders’ step into the change management role. To highlight a few of the principles that leaders should embrace when leading through change, consider the following:

·      Clarify the vision and communicate it effectively. The role of leadership in change management requires that you help people buy into your vision for the organization. This type of communication needs to occur consistently, no matter if it’s the mundane, day-to-day issues or more serious change programs. Your message needs to be clear and consistent.

·      Stay connected with your employees. Without this awareness, you’ll have a difficult time explaining your vision and enlisting support. Your employees look to you to be direct and transparent. They also want you to be approachable.

·      Be accountable and transparent. During times of change, leaders must be accountable for what is working and what isn’t working. Being accountable fosters a desire and commitment to fix problems to yield the best results. To be truly accountable means you are willing to let others see behind the curtain to candidly assess how things are going. As you do this, your team will embrace a similar, no-blame openness to performance. Accountable leaders look at all aspects of the organization—culture, processes, management, and employees—to ensure all are functioning optimally. If they are not, a good change management leader must be willing to admit the gaps and take actions to address shortcomings.

Given the evolving demographics, what could be the apt leadership style?

I think that the most effective future leaders will be those who recognise the potential value of automation, in the specific context of their own organisations and sectors. They will spend some time thinking about how technology can augment their workforce over the next 5 to 10 years. What tasks or processes might be done more efficiently or reliably by machines rather than humans? How can they better make use of data they already collect and process to improve financial performance, enhance existing products or services or offer new ones? Effective consultation with the workforce will help to maintain good staff morale and productivity, by addressing any underlying concerns about job security and being clear about how employees will be given the skills to work alongside any new technology.

Conclusion

Automation will certainly change human resources as we know it. The approach across industries will somewhat remain same. The organisations that manage that change successfully through their leaders will be those who recognise what tasks machines can do significantly better than humans and automate those things only. Focusing human effort on activities that humans do best will result in a happier, more engaged and more productive workforce overall. This requires a longer-term people strategy that goes beyond the usual succession planning, together with open dialogue with the existing workforce about the benefits of automation on what it means for them.