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Digital Strategies for Employee Engagement

  1. Vienna 31.10.2013 Stephan Schillerwein @IntranetMatters Online Strategies for Employee Engagement Workshop 1 – Quadriga Internals Communications Conference 1
  2. About Stephan Schillerwein       15+ years of experience in Digital Media and Information Management, specializing in Intranets, Social Collaboration and the Digital Workplace 100+ projects at 50+ organizations of all sectors & sizes Formerly Online and Intranet Manager at several large enterprises and Director of the Intranet Benchmarking Forum Business computer scientist – speaks language of “both sides” Author, conference speaker, jury member, blogger, … Partner of the Worldwide Intranet Challenge Intranet & Digital Workplace Advisor Project Focus:  Vision & Strategy  Coaching & Enabling  System evaluation  Intranet Methodology  360° Intranet Assessment  Findability  Lean specification  Organisational Concepts  … 2
  4. Employee Engagement is not a soft factor! 4
  5. Productivity loss due to active Disengagement according to Gallup USA • 450 – 550 billion US$/year Germany • 151 – 186 billion US$/year UK • 83 – 112 billion US$/year Source: Gallup, State of the Global Workplace 2011-2012, Based on 230’000 employees from 142 countries 5
  6. Engagement and Performance According to Gallup, employee engagement leads to higher numbers on all positive performance indicators (e.g. productivity, customer ratings) and lower numbers on all negative performance indicators (e.g. absenteeism, turnover, defects). See chart on page 22 in Gallup’s «State of the Global Workplace» report Source: Gallup, State of the Global Workplace 2011-2012, Based on 230’000 employees from 142 countries 6
  7. Companies rated well by their employees perform better Source: Prof. Zwi Segal, Motiva Based on employee reviews on 7
  8. State of Employee Engagement According to Gallup, only 13% of employees are engaged See chart on page 12 in Gallup’s «State of the Global Workplace» report Source: Gallup, State of the Global Workplace 2011-2012, Based on 230’000 employees from 142 countries 8
  9. Photo credits: Thomas Bruce, 9
  11. Management Employees Economy The State of Knowledge Work Organizational performance down by 29% U.S. economy loses $900b to $1.5t a year underperformance in dealing with complexity UK economy loses £67b a year More than half of information needed not searchable Searching takes up to 2 hours per day Important information hard to find for 1 in 2 Hidden cost $14k per employee/year 25% time loss due to overload 63% make critical decisions w/o being informed information not available in time 1 in 2 lacks crossorganizational information 40% use wrong information © 2011, Infocentric Research AG 70% of customer agents lack information 1 in 3 searches not successful 86% not prepared for information risk issues 1 in 2 managers overloaded with information 11
  12. Just one small example of what’s wrong today Source: Vin Jones, Business Practices That Refuse To Die #44: Email Trees, 12
  13. Total productivity loss in knowledge work 13
  14. Knowledge Work is fundamentally different! 14
  15. 15
  16. Organisations Were not Designed for it! 16
  17. What Companies were designed for … Picture credits: James Yu, Boston Public Library, 17
  18. Cognitive Work has always been around, but … Few people Few functions Few tasks Not cross-… No end in itself … Picture credit: "Gabriele - Die perfekte Sekretärin: 1956 Chefs mit kleinen Fehlern», diepuppenstubensammlerin, 18
  19. Routine Non-routine Evolution of Work Manual Cognitive 19
  20. Knowledge work only works, if there is … • Autonomy • Mastery • (shared) Purpose • Fairness See also: 20
  21. Who is doing information work? The Mayority … 27% = medium 40% = low 33% = high Source: The work foundation: “Knowledge Workers and Knowledge Work - A Knowledge Economy Programme Report, 2009 «On average, 80% of all employees in an organization are knowledge workers» 18% - No analysis tasks 24% - Few 35% - Many 23% - Core • • • • • • • • • • Highly affected: Executives People Managers Project Managers Knowledge Workers Sales People Analysts R&D HR … • • • • Less affected: Transaction Workers Production Workers … Source: CIO Executive Board, IT Practice, “Technology-Enabled Employee Productivity Survey,” 2012 21
  22. What kind of tasks are affected by knowledge work? Core capabilities … • • • • • • • • • • • • • Innovation Collaboration Networking Projects Transformation Agility Productivity ProcessImprovement Ability to Change Creating Culture Deriving value from information Learning organisation ... Customer Relationship Operational Excellence Product Leadership Employee Relationship 22
  23. What affects organizational capability to execute strategy most? Enterprises fail at strategy execution because they focus on the wrong areas Decision Rights Motivators Information Flows Structural Reorganization Source: Harvard Business Review: “The Secrets to Successful Strategy Execution”, Booz & Company, 2008 23
  24. Outdated Ways of Working • 82% of employees say that «the way we work today is out of date and prevents us from being as effective and efficient as we could be.» (even 89% in large businesses) • 60% think that document processes are not more efficient today in 2009 Source: A New Perspective: Ricoh Document Governance Index 2012, 24
  25. Outperformers value information more Source: “Business analytics and optimization for the intelligent enterprise” by IBM Global Business Services (2009), 25
  26. Communication drives Productivity 40% of employees productivity is directly explained by the amount of communication they have with others to discover, gather and internalise information. Employees with the most extensive digital networks are 7% more productive than their colleagues. Source: Bulleit, B. 2006. Effectively managing team conflict. Cary, NC: Global Knowledge Training LLC 26
  27. Dear Mr. CEO … … we have a 25+% productivity issue in information work … … that affects 60+% of our employees – and 100% of management … … especially in the tasks most that are relevant for our (future) success … … and also affects employee engagement, creativity, innovation, attractiveness for new hires … … plus our ability to execute business strategy! Oh, and the competition hasn’t realized that they have the same problem as well, yet … 27
  29. Is there an opportunity to kill two birds with one stone? ??? Engagement Information Work 29
  30. “Solutioneering” … means putting solutions before problems. - Jeff Croft 30
  31. Intranet Digital Workplace Work Business Modell Market Digital Business Transformation – Enterprise Design – Future of Work - … Photo credits: «kellerabteil», 31
  32. Getting from «A» to «B» … Current State People, Culture, Practises Structures, Services Information Technology Transformation Business Enivronment Vision & Values Strategy & Goals Target State Business Enivronment Vision & Values Strategy & Goals People, Culture, Practises Structures, Services Information Technology 32
  33. … without losing the «Big Picture» Current State People, Culture, Practises Structures, Services Information Technology Transformation Business Enivronment Vision & Values Strategy & Goals Target State Business Enivronment Vision & Values Strategy & Goals People, Culture, Practises Structures, Services Information Technology Intranet 33
  34. Without losing the «Big Picture» Current State People, Culture, Practises Structures, Services Information Technology Transformation Business Enivronment Vision & Values Strategy & Goals Target State Business Enivronment Vision & Values Strategy & Goals People, Culture, Practises Structures, Services Information Technology Intranet 34
  35.  Can Engagement help us out? 35
  36. What really affects employee engagement “We did some specific work looking at the effect of flexible benefits on employee engagement. We looked at everything from health club memberships to profit-related pay to crèche schemes for kids. The only benefit we found that seemed to affect engagement scores was flexible working… If you have a flexible working culture, it means you’ve probably got a culture of trust… a culture where your managers get on and believe that people can work under their own steam.” - Wayne Clarke, Managing Partner of Best Companies 36
  37. What really affects employee engagement „A close analysis of nearly 12,000 diary entries, together with the writers’ daily ratings of their motivation and emotions, shows that making progress in one’s work — even incremental progress — is more frequently associated with positive emotions and high motivation than any other workday event.” Amabile, Teresa M., and Steve J. Kramer. "What Really Motivates Workers." Harvard Business Review 88, no. 1 (January - February 2010): 44-45 37
  38. Why changing the Intranet is not enough Work Physical Workplace Digital Workplace Structures & Processes Conditions Building Design Devices Software Flexibility Workplace Design Information … Services Work Culture Financial Common Area Design Sourcing Services … - Engagement – Meaningful Goals – Personal Recognition - … 38
  40. Intranet & Digital Workplace Project Structure Plan Phase 0: Project Initialisation Business Case Project Scope Project Setup Analysis Vision & Strategy Roadmap Solution Concept Organisational Concept System Evaluation Phase 3a: Build & Implement (Technology-Stream) Technical Concept System Setup Implementation Content Integration Testing & Quality Assurance Phase 3b: Build & Implement (Business-Stream) Adoption Support Creation & Migration Roll-out of organisational concept xPhase B: Change Management Business Requirements xPhase C: Communication Phase 2: Prepare & Design xPhase A: Project & Expectation Management Phase 1: Explore & Envision Operations: Use & Sustain Go-Live Process Project Review Technical Operations Business Operations Stephan Schillerwein, version 1.5 – Licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License 40
  41.  Vision & Strategy: defining the right Scope 41
  42. From basic Intranets to the Digital Workplace An Intranet & Digital Workplace Maturity Modell Mid-/longterm Vision © Infocentric Research, 2013 Stages 4 and beyond: Full Digital Workplace Business Value Innnovators • Stage 3: Basic Digital Workplace • Stage 2: Extended Intranet • • Stage 1: Basic Intranet Focus • • • • • News Information library Employee self-service Simple applications • • • • • Basic Social Media & Collaboration Generic process support Extended people profiles Enhanced applications & Integration Personalization • • • Enabling generic Interaction Providing Information • Advanced Social Collaboration Advanced integration & applications Strong people profiles Advanced and more specific process support, e.g project, innovation and frontline management Enterprise search Support any kind of information … • • • • • • Business Transformation Specific Work Support Portal Holistic process support throughout and beyond the organization “Meta functionality” (e.g. Social, Collaboration, …) integrated in all components Context and intelligent filtering Near seamless integration Universal Inbox Continual reshaping of the organization Change, Culture & Engagement driver … Maturity Industry average Other, specific Technologies Collaboration Documents Content Search 42
  43. The Scope of the Digital Workplace Personal Dashboard Activity Streams Personal Information Management Universal Inbox Generic CORE Services Specific CORE Services Making decisions Supporting processes Customer Related Processes Managing Projects, Programmes and Portfolios Innovating Product Related Processes Working together Enabling change Employee Related Processes Managing Information Connecting & Sharing Operational Excellence Related Processes Search Intelligent Filtering / Recommendations Meta- & Masterdata Management Analytics & Reporting Custom Development Integration of Applications Infrastructure & Cross-system functions Roles & Rights Management Personalisation Channels & devices Stephan Schillerwein, version 1.1 – Licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License 43
  44. StoraEnso Source: Intranet Reloaded, 2013 44
  45. Tieto Source: 45
  46. German Police: Case Management 46
  47. Cowi: Project support Source: i2 Summit, 2012 47
  48. Bosch: Who can help me with … ? 48
  49. Heineken: Social Learning 49
  50. Thomson Reuters: People profiles are key Source: Intranet Benchmarking Forum, 2011 50
  51. Enter: Gamification Source: Digital Workplace 24, 2013 51
  52. Barclays Source: Digital Workplace 24, 2013 52
  53. 53
  54. Social Intranets & Employee Engagement Source: Chris McGrath & Ephraim Freed, ThoughtFarmer: «SOCIAL INTRANETS & EMPLOYEE ENGAGEMENT», 2012 54
  55.  Solution Concept: getting Design, Quality, Usability, … right 55
  56. Intranets & Design: 3 «worlds» Putting your Brand on the Intranet Branding your Intranet Your Intranet supports «living» your Brand 56
  57. Putting your Brand on the Intranet Source: Digital Workplace 24 (2013) 57
  58. Branding your Intranet 58
  59. Using your Intranet to support «living» your Brand • Imagine something … – that acts exactly in the way of the values your brand stands for – directly ingrained into employees task and activity – is visible and can be experienced during the whole workday 59
  60. Some examples Brand Value Intranet Accurate, up-to-date content Always on Trusted Participatory elements well moderated Everything links to people 60
  61. Some examples Brand Value Intranet High Findability Customer Satisfaction User-centered design process Feedback mechanisms All in one place 61
  62. Areas of Action – an Overview Basics Culture • Design • Usability • Readability • Findability • Management leads by example • Fostering entrepreneurship • Involve people 62
  63.  System Evaluation: it’s not just about features anymore … 63
  64. Choosing a System is a different Game now Intranet Digital Workplace low high singular & isolated multi-dimensional & integrated Power-Users few all Stakeholders few all Investment on top of Licences Low high ok Low Front-end Functionality & Interaction Design Scope Market Maturity 64
  65. 65
  66.  Adaption Support: engage users in a way that drives change & acceptance 66
  67. Change by Engagement @ Scale What ? «Engagament @ Scale» is a concept introduced by the Dachis Group to extend the reach of an organisation in Social Marketing (beyond the «Social Media Team»). It is based on mobilising a large number of constituents (employess, partners, advocates, …) that scales more or less indefinitely. Why? • Every employee is a customer – limited reach of the Intranet Team • People have very heterogenous requirements and use cases • An expert-view might cover the facts, but doesn’t create engagement • Most techniques used to involve employees have low engagement (e.g. surveys, top-down communication, …) 67
  68. Change by Engagement @ Scale How? 1. Real-time involvement through an open, collaborative project platform (discuss, jointly work on wireframes, …) 2. Don’t stop user involvement after gathering requirements, but include them in discussing the solution approaches 3. Pilot during the project, if possible with Senior Management to demonstrate both the will for change and the future solution 4. Iterative product design instead of big-bang projects Explore & Envision Prepare & Design Build & Implement Use & Sustain 1 2 3 4 68
  69.  TO SUM UP 69
  70. Source: 70
  71. Questions ? 71