Blog Post 5

This week’s readings describe the future of strategy. Specifically, the Bhalla and Strack article, Twelve Forces That Will Radically Change How Organizations Work, focuses on the changes in the demand for talent and the changes in the supply of talent both of which are working together to transform companies. The force that stuck out most for me was the “skill imbalances” force which describes the process by which more and more companies are reporting inability of finding qualified employees. What I found interesting about the article was that it failed to explore two consequences of skills imbalances both of which, at least to me, can also be seen as forces that are transforming how organizations work. 

The first consequence of skill imbalance can be that US companies may more consistently start to hire more international workers to meet the need for skilled digital talent. According to the article, US companies cite the lack of qualified employees as the biggest constraint to a full digital transformation. This labor shortage has been reported as a crisis that is getting is worse. If companies choose to get around this problem by hiring more international workers, this too will change the way organizations function.     

The second consequence would be income inequality. Because of technological change business are requiring more advanced skills and capabilities. According to Frank and Bernake, because technological change is made easier for those with high levels of education due to their ability to learn and adapt, these individuals will be better able to compete in the market than those with lower education. Higher education individuals will begin to out earn others thereby creating income inequality. This consequence is once that has potential to affect the larger market rather than an individual company.