WORKPLACE DYNAMICS QUESTIONNAIRE:

TECHNOLOGY AND LABOR MODEL

From Protiviti’s Board Perspectives: Risk Oversight Issues 105 and 106

Talent is every organization’s lifeblood. Coupled with demographic and social trends, the technologies of the
digital age are transforming the workplace. Directors need to pay attention as “electronic workers” created
through effective applications of technology to perform work become more prominent in their companies.

As the future world of work evolves, organizations need to advance toward optimizing their mix of internal,
interim and outsourced human talent/electronic workers. This questionnaire explores some of the questions that
directors should be asking as they focus on the realities of a transforming workplace and the implications of
digital labor to that transformation.

A. KEY QUESTIONS FOR BOARD MEMBERS: OVERSIGHT

1. Is the work core (e.g., strategic to the execution of the business model)?
a. If not core, can we outsource it?

2. Are there other cost-effective labor model options that offer us flexibility? For example, can we give it to a
contractor or freelance worker? To that end:
a. Can we articulate clearly the results we want?
b. Are there contractors or freelancers who can do it better than we can?
c. Who can help us find them and how quickly can they do it?

3. If modifications to the labor model are needed, what’s the business case that compels us to change it?
(e.g., reduce costs, improve process effectiveness, compress cycle time and/or manage sudden spikes in
workloads from such changes as a major system upgrade or new regulatory requirements demanding an
influx of subject-matter expertise over a short period)

4. Do we have an eye on the demographic, social and technological trends affecting the labor model?

5. Does the board utilize sources other than management for insights about market trends affecting the
labor model?

6. Given the evolving market trends, do we have processes in place to evaluate their implications for our
labor model?
a. What are the benefits and costs to the organization, if any? Were all these noncore tasks and
functions performed by external workers or firms?
b. If the business case dictates action, what specific changes should be made to the labor model?
(How, why and within what time frame must the enterprise transform the model?)
c. What possible actions by competitors could alter the talent landscape within the industry if
management decides not to act?

7. Do we consider the economics, opportunities and risks associated with outsourcing noncore activities?

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 8. Have we considered applying all three elements of the shamrock model?

9. Do we have the right human resources partner?

10. What specific forms of expertise are needed?

11. How do we resource these efforts?

a. Do we reassign internal staff, hire interim staff, invest in consulting services or undertake some
combination of these approaches?

12. Does a traditional outsourcing relationship meet this need?

a. Can a service organization do the job more cost-effectively than we can?

13. Do we need help deploying individuals and firms on the contractual fringe?
a. Should management work with an external human resources partner who can assist with staffing
major initiatives quickly, combatting competition for high-in-demand skills, and strengthening
relationships with part-time and interim specialists in a cost-effective manner?

14. Based on the risks inherent in the entity’s operations, has the board considered the questions above as
management deals with the market trends affecting both work and the workforce and considers these
trends in shaping the company’s talent strategy?

B. KEY QUESTIONS FOR BOARD MEMBERS: IMPACT OF TECHNOLOGY

1. Whether the work is core or not, can we automate it?

2. If it is a task that can scale up rapidly due to demand, can technology be used to introduce
hyperscalability in the face of increased demand?

3. What are we doing to stay abreast of the technological trends affecting work and the workplace?

4. Given the evolving technological trends, how are we evaluating their impact on our workforce?
a. What’s the goal of automating work (that is, what are we seeking to accomplish, and why)?
b. What are the benefits and costs to the organization?
c. What are the likely implications of automation on the industry, given the nature of the work and
workplace?
d. What are possible actions by competitors?
e. Which technologies should we embrace now versus later?

5. Are we automating the right processes?

6. Are we avoiding automation of poorly designed processes?

7. Is the organization effective at managing automation?

8. What data is used to monitor performance, how are improvements identified, what protocols are in place
for updating programs and algorithms, and how are workers informed of these updates?

9. Is the organization effective at managing change from automation?

10. What are the feeds to the automated activities, and, in turn, what processes do they feed?

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 a. How is the integrity of these feeds preserved?
b. At what points are human interactions and decisions needed in an otherwise automated process?

11. How does the organization maximize its chances of success?

12. Based on the risks inherent in the entity’s operations, has the board considered the questions noted
above as management deals with the market and technological trends affecting both work and the
workforce and addresses them in shaping the company’s talent and automation strategy?

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