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    EXECUTIVE GUIDANCE FOR 2013

    Breakthrough Performancein the New Work EnvironmentIdentiying and Enabling the New High Perormer

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    Companies Get More rom Employees

    Trends in Key Productivity Measures, 1993 to Present2

    Indexed to 1993

    Revenue per FTE

    2.0

    0.6

    1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

    0.8

    1.0

    1.2

    1.4

    1.6

    1.8

    CAGR = 3.23%

    CAGR = 0.16%

    CAGR = (0.61%)

    1 Based on median gures.

    2 Data includes 8,625 companies rom 93 countries with annual revenue greater than US$500 million.

    Driving corporate growth in a low-growth environment is a consistent theme

    in boardrooms today. As CEB research shows, many companies are (or

    should be) pursuing Intelligent Growthsimultaneous growth in top-line

    revenue and bottom-line protability. Companies that successully managethe costgrowth trade-o signicantly outperorm their peers and reward

    shareholders. Unortunately, achieving Intelligent Growth is hard and getting

    harderonly 3 out o 10 companies in the S&P 500 have been able to grow and

    keep costs at bay since the global nancial crisis.

    For many rms, managing the costgrowth trade-o comes down to increasing

    workorce productivity. To date, business perormance gains have come rom

    better labor eciency, and companies have been getting more and more romtheir investment in employees. Since 1993, revenue per ull-time equivalent

    (FTE) has grown at a 3.23% compound annual growth rate (CAGR) compared

    to no growth in revenue per cost o goods sold (COGS; CAGR = 0.16%) and a

    0.61% in revenue per invested capital.1

    Revenue per COGS Revenue per Invested Cap

    Source: Compustat; CEB, CEB Finance Leadership Council.

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    Needing Even More from Employees

    Simply put, the corporate bottom line depends on getting more eciency out

    o the workorceand signs suggest companies will continue to need more

    rom employees going orward. Companies are clearly striving or protable

    growth. The majority o executives surveyed by CEB believe their revenues

    will increase in the coming year (59%), but they also anticipate continued

    pressure to lower costs (67%). Protable growth will continue to put pressure

    on employees to be more ecientonly 32% o executives plan to increase

    head count despite optimism around revenue growth.

    Source: CEB, Business Barometer Quarterly Report; CEB, CEB Finance Leadership Council.

    The Challenge: Growth Without Sta Investments

    Percentage o Executive Expectations

    Q3 2012

    Increase Stay the Same Decrease

    Expected Revenue Cost Pressures Head Count

    26%

    15%

    59%

    16%

    17%

    67%

    35%

    33%

    32%

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    3

    Moreover, ambitious protable growth goals at many rms have executives

    demanding a discontinuous jump in workorce perormance and

    productivity. On average, global executives believe they will need a 20%

    improvement in perormance over and above current levels in order to meet

    their business objectives.

    Executives Need More rom Employees to Meet Current Goals

    Percentage o Improvement Needed to Achieve Business Goals

    n = 2,046.

    Source: CEB, CLC Human Resources High Perormance Survey.

    On average, global executivesbelieve they will need a 20%

    improvement in performance

    over and above current levels.

    0% 110% 1120% 2130% More Than30%

    5%

    39%

    27%

    15%14%

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    4

    Employees Are Working Harder and Longer

    Percentage o Employees Who Have Experienced an Increase in

    Workload in the Past Three Years

    n = 23,339.

    Are Productivity Expectations

    Unrealistic?

    Achieving a dramatic jump in workorce productivity may be harder than

    business leaders anticipate. CEB has been tracking employee eort and

    perormance levels since 1998, and the labor productivity gains realized over

    the past two decades may well be reaching their limit. The discretionary eort

    employees put into their work rebounded ater the global nancial crisis but

    has remained relatively fat over the past year and a hal.3

    Employees surveyed by CEB report that their jobs are getting harder, with

    more than two-thirds reporting more complexity and 80% seeing their

    workloads increase. Rapid shits in the global economy and availability o

    technology and inormation have resulted in dramatic changes to corporate

    organizational structures and the way work is done. Most observers agree

    that work has become much more global and more dependent on inormation

    and technology and requires more collaboration across a geographically

    dispersed workorce. Increasingly complex work is taking its toll: more than

    one-hal o surveyed employees indicate the stress o their jobs is on the rise.

    80% 78%

    56%

    YourWorkload

    Your TeamsWorkload

    Hours Workedper Week

    Source: CEB, CLC Human Resources High Perormance Survey.

    3 CEB, CLC Human Resources, Quarterly Global Workorce Insight Report, Q3 2012.

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    Employees Struggle to Handle the Stress o Their Jobs

    Percentage o Employees Agreeing with the Statement,

    I Cannot Handle the Stress o My Job or Much Longer

    n = 23,339.

    Source: CEB, CLC Human Resources High Perormance Survey.

    55%

    Agree

    45%

    Neutral

    or Disagree

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    Most Executives Think Employees Could Substantially Improve

    Percentage o Executives

    n = 641.

    Herein lies the problem: employee trends suggest employees are reaching

    a limit to their workload, but executives need a 20% lit in workorce

    productivity. Many business leaders believe employees can be more

    productive. On average, executives think that only about 29% o their

    employees are operating at peak productivity. Moreover, or every executive

    that believes his or her sta is ully productive, seven believe their sta could

    substantially improve.

    SubstantialRoom to Improve

    Substantial Room to

    Improve = 1 to 33%

    o workorce perorming

    at highest possible level

    Moderate Room to

    Improve = 34 to 66% o

    workorce perorming at

    highest possible level

    Little to No Room to

    Improve = 67 to 100% o

    workorce perorming at

    highest possible level

    ModerateRoom to Improve

    Little to NoRoom to Improve

    68%

    20%

    12%

    Source: CEB, 2012 CEB Senior Executive Survey.

    Note: HR executives answered or the entire workorce, while other executives answered or theirunction or department.

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    Understand the New Work

    Environment and Its Implications

    It is a well-known act that the economy and underlying work environment

    are changing. The press and business literature are replete with mega trends

    and micro trends all believed to be driving more fuidity and complexity in

    the business environment. The global economy is less stable, technology is

    evolving at breakneck pace, and inormation and communication channels

    have become ubiquitous. But which o these trends really matter, and what

    are the important subsequent changes within corporations?

    Through a survey o more than 1,500 senior executives, CEB identied

    10 important trends that all into three broad, but distinct, categories:

    Frequent organizational change

    More interdependent work

    An increase in knowledge work

    These trends meaningully impact how work is structured, managed, andconducted, and they reveal new realities in the workplace that undamentally

    change how work gets done and what drives employee perormance.

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    KNOWLEDGE WORK

    31%

    18%

    16%

    14%

    27%

    21%

    15%

    27%

    17%

    15%

    Frequent Change, More Interdependence, and Knowledge Work Dene

    the New Work Environment

    Percentage o Executives Indicating Trend in Their Top Three4

    n = 1,630.

    Cross-Function or Departmental Work Groups

    Matrixed Reporting Relationships

    More Frequent Organizational Change

    Greater Financial Uncertainty

    Geographically Dispersed Workorce

    Organizational Downsizing

    Team-Based Work

    New Inormation Technology

    More Nonroutine Work

    Greater Inormation Availability

    INTERDEPENDENT WORK

    Source: CEB, 2012 CEB Senior Executive Survey.

    4 HR executives answered or the entire workorce, while other executives answered or their unction

    CHANGE (ECONOMIC AND ORGANIZATIONAL)

    or department.

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    A persistent and common aspect o the new work environment is requent,

    signicant organizational change, both broadly dened (e.g., strategic

    objectives, markets) and narrowly dened (e.g., work teams, reporting

    relationships). Shiting economic power, regulatory uncertainty, and rapid

    technological changes cause requent adjustment in business objectives and

    strategies and lead to real changes in organizational structures, reporting

    relationships, and work teams and processes. Over the past three years,

    63% o employees report experiencing requent changes in organizational

    objectives. Structural changes in the work environment are just as common

    and persistent. In 2009, 81% o employees experienced a signicant

    organizational change, and every year since, more than 50% o employees

    have reported signicant changes.

    In a high-change environment, established work processes become less

    relevant and valuable as objectives and organizations change. Moreover,

    process and structure changes disrupt, or even disband, long-standing

    employee networks. CEB analysis estimates that a high-change environment

    can reduce overall employee perormance by as much as 10%.5

    Frequent Organizational Change

    Is the New Normal

    Implication:Change and ambiguity will derail productivity unless

    managers help employees better anticipate, contextualize, prioritize, and

    respond to requent change at all levelsultimately making them more

    agile and accepting o change.

    5 CEB, Communications Executive Council Agility Survey 2011.

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    81%

    56%53%

    56%

    High-Level Objectives Are Changing Frequently

    Amount o Change in Organizational Objectives in the Past Three

    Years, by Percentage o Employees

    n = 23,339.

    3%

    Decreased

    34%

    Stayed the Same 63%

    Increased

    Source: CEB, CLC Human Resources High Perormance Survey.

    Most Employees Experience Persistent Change

    Percentage o Organizations That Experienced Signicant Changes

    in the Previous 12 Months

    2009 2010 2011 2012

    Source: CEB, CLC Human Resources Quarterly Global Labor Market Survey.

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    As organizations have become more matrixed, employees across theorganization share ormal responsibilities, authority, and accountability or

    more work outcomes. While inormal working relationships and networks have

    always been important, getting work done today requires more collaboration

    among a broader and more diverse set o people who are perorming new

    tasks and working across more geographic locations. Collaborating today is

    harder than it was yesterday:

    Sixty-seven percent o employees report an increase in work requiring

    active collaboration.

    One-hal o all employees indicate a signicant increase in stakeholders

    needed to make a decision.

    Fity-seven percent report an increase in the number o coworkers they

    work with in other geographic locations.

    Sixty percent o employees report working with 10 or more people on a

    day-to-day basis (and one-hal o these employees report needing to work

    with more than 20).6

    Sixty-ve percent o employees indicate they must manage external

    stakeholders (i.e., outside their company) to perorm their work.7

    The new work environment requires collaboration, yet the pace o workplace

    change complicates working with and through others. As previously noted,

    organizational changes disrupt employee networks and work processes, making

    connections hard to build and even harder to maintain. Employees must navigate

    across dierent structures, cultures, and processes to perorm, but they struggle

    to understand whom to work with and how to work with them.

    Work Is More Interdependent

    Implication: Collaboration will not occur unless organizations enable

    and encourage broader employee networksconnecting employees as

    needed and providing clear direction, aligned incentives, integrated

    workfow, and better technology.

    6, 7 CEB, CLC Human Resources High Perormance Survey.

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    The introduction o big data to the workplace has coincided with

    exponential growth in computing power, prolieration o business

    applications, more process automation, and increased outsourcing o routine

    work. As a result, most work processes are highly automated, and work in

    general has become more data and inormation intensive, less routine, and

    more exceptions based. Working with data and inormation has become

    core to most employees jobs, with 76% o employees reporting a signicant

    increase in time spent working with data and inormation. While denitions

    vary, more and more employees are knowledge workersanyone who

    collects, manages, uses, analyzes, and makes decisions using inormation as

    a primary part o his or her day-to-day job. Almost three out o our executives

    report that more than one-hal o their sta are now knowledge workers.8

    Unortunately, not all employees have achieved prociency in being able

    to nd inormation, analyze it, and use sound business judgment to make

    decisions. CEBs Insight IQ index measures an employees decision-

    making maturity. Employees with the highest Insight IQthose with the

    ability to eectively analyze inormation to make sound decisionsare called

    Inormed Skeptics. On average, less than 40% o employees are Inormed

    Skeptics.9 The best decision makers are ound at the executive level, and the

    number o employees with the right balance o skills declines rapidly at lower

    levels in the organization.

    Almost Everyone Is a Knowledge

    Worker

    Implication: Since knowledge work requires both ready access to the

    right inormation and eective decision making with that inormation,

    organizations need to ensure that employees have the right skills and

    abilities to use advanced inormation technology eectively in their jobs.

    9 CEB, Inormation Technology Insight IQ Diagnostic.

    8

    CEB, CLC Human Resources High Perormance Survey.

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    Employees Are Doing More Knowledge Work

    Change in Time Spent Finding and Reviewing Data and Inormation in

    the Past Three Years, by Percentage o Employees

    n = 23,339.

    Source: CEB, Inormation Technology Insight IQ Diagnostic.

    Good Decision Makers Are Rare Lower in the Organization

    Percentage o Inormed Skeptics (Mature Decision Makers), by Level

    n = 4,941 knowledge workers.

    Executive Leadership

    Senior Managers

    Mid-Level Managers

    Individual Contributors

    18%

    Stayed the Same

    6%

    Decreased

    76%

    Increased

    69%

    50%

    41%

    32%

    Source: CEB, CLC Human Resources High Perormance Survey.

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    The work environment has changed dramatically, and work is now

    done through a web o collaborating knowledge workers. Employees

    in this environment have more ambiguous objectives, and their work is

    interconnected with a growing, more dispersed network. Employees are

    making more business decisions much lower in the organization. They need

    more high-quality inormation and tools to make those decisions. But most o

    all, they need the experience and skills to apply sound judgment in decision

    making. Bottom lineorganizations will need a dierent kind o employee,

    one that is immune to the paralyzing complexities o change, willing to

    collaborate with a broad range o individuals, and able to apply judgment in

    an increasingly knowledge-based role.

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    Who are the high-perorming employees in this new work environment?

    What skills and behaviors will dierentiate the most productive employees?

    Most managers and perormance management models assume that strong

    business acumen, task and process mastery, and technical know-how explain

    the majority o an employees job perormance. Unortunately, the prevalence

    o outdated assumptions about the most valuable skills and abilities leads

    to the misidentication (or under-identication) o the organizations next

    generation o high perormers. Using existing methods, organizations will

    likely ail to identiy 65% o their new high perormers.10

    Building the next generation o employees requires ocusing on a new set

    o skills. CEB analyzed the drivers o perormance or more than 23,000

    managers and employees across more than 40 organizations globally and

    ound the 10 employee competencies that dierentiate those best able to

    perorm in the new work environment:

    1. Prioritization

    2. Teamwork

    3. Organizational awareness

    4. Problem solving

    5. Sel-awareness

    6. Proactivity

    7. Infuence

    8. Decision making

    9. Learning agility

    10. Technical expertise

    Identify and Build New Skills

    10 CEB, CLC Human Resources High Perormance Survey.

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    Based on these dierentiating competencies, the new high perormer

    is someone who can:

    Adapt to ChangeHigh perormers use their knowledge o the

    organization and their role to quickly adjust to work environment

    changes. Adaptive employees are also proactive; they are not paralyzed

    by change, and they are willing to take action and move projects and

    priorities orward.

    Work CollaborativelyHigh perormers are good collaborators,

    working well with and through others. They have the teamwork skills

    necessary to work with a wide range o people across the organization.

    They use their technical expertise to infuence stakeholders and

    contribute to collaborative projects.

    Apply JudgmentHigh perormers use strong analytic skills to

    prioritize their work, assess problems, and make decisions. They rely on

    their expertise, experience, and knowledge o the organization to apply

    judgment to their decisions and in their work.

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    The New High Perormer Adapts to Change, Works Collaboratively,

    and Applies Judgment

    Top 10 Out o 32 Competencies Driving Employee Perormance

    n = 23,339.

    Organizational Awareness

    Teamwork

    Proactivity

    Technical Expertise

    Problem Solving

    Sel-Awareness

    Inuence

    Learning Agility

    Prioritization

    Decision Making

    Adapt to

    Change

    Work

    Collaboratively

    Apply

    Judgment

    Source: CEB, CLC Human Resources High Perormance Survey.

    11%

    9%

    9%

    7%

    12%

    9%

    7%

    13%

    11%

    9%

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    New High-Perormer Skill Sets Are Rare

    Presence o Key Competencies, by Industry Sector Globally

    Percentage of Population

    Unortunately, employees with the right combination o skillsthose who

    adapt to change, work collaboratively, and apply judgmentare relatively

    rare. SHL, a global leader in talent measurement and a CEB subsidiary,

    tracks a global benchmark constructed rom competencies core to the newhigh-perormer prole. On average, about 5% o assessed employees have

    a strong combination o the core skills and competencies essential to high

    perormance in the new work environment; in addition, some industries

    have more new high perormers than others. While technology (6.4%) and

    proessional services (6.2%) sectors have relatively more capable employees

    than the travel and leisure (4.1%), oil and gas (4.2%), engineering (4.2%), and

    utilities (4.3%) sectors, the new high perormer is in a clear minority.

    Source: SHL, The SHL Talent Report: Big Data Insight and Analysis o the Global Workorce.

    1Technology

    6.4%

    2Proessional

    Services

    6.2%

    3Food, Beverage,

    and Tobacco

    5.9%

    5Consumer

    Goods (Heavy

    Goods)

    5.8%

    8Public

    Sector

    5.4%

    9Consumer

    Goods

    (Personal and

    Leisure)

    5.3%

    10Business

    Services

    4.9%

    11Health Care

    4.8%

    12Banking

    4.6%

    12Telecoms

    4.6%

    14Utilities

    4.3%

    15Engineering

    4.2%

    15Oil and Gas

    4.2%

    17Travel

    and Leisure4.1%

    6Mining

    5.6%

    3Retail

    5.9%

    6Insurance

    and Financial

    Services

    5.6%

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    How can organizations quickly develop the new skills required or high

    perormance? It is too easy (and incorrect) to assume that current employees

    are incapable o developing the new competencies required. While hiring

    new sta with stronger aptitude in the new core skills will help over time,there is no substitute or experience. The competencies essential to strong

    perormance in the new work environment are best developed through

    on-the-job experience with a single company over time. As an employee

    gains organizational experience, his or her ability to adapt to change, work

    collaboratively, and apply judgment in his or her job rises steadily.

    Perormance Improves with Experience

    Maximum Impact on Perormance o Tenure at Organization

    n = 23,339.

    8%

    4%

    0%

    0 5 20 251510

    Tenure in Years

    Source: CEB, CLC Human Resources High Perormance Survey.

    As employees gain experienceeven early

    in their careerthey are:

    More likely to serve as a critical resource

    to others and

    More likely to contribute to new ideas

    for products or services.

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    Leadership teams can no longer rely on old management assumptions and

    paradigms. Generating the next level o breakthrough perormance and

    productivity will require building essential skills, better managing new

    work processes, and nding ways to enable higher productivity. To do this,

    executives should do the ollowing:

    1. Accelerate Skill Development Through Guided Stretch Roles

    2. Adjust Employee Roles to the Demand and Supply Sides

    of Collaboration

    3. Reorient Managers to Guide and Empower Knowledge

    Workers

    4. Target Technology Investments to the Evolving Needs

    of Knowledge Work and Collaborative Teams

    Adjust Management Approaches

    and Target Technology Investments

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    Use connectors to transer network building and collaboration

    skills. Identiy your best collaborators and use them to teach others

    how to network, build relationships, infuence decisions, and manage

    collaborative projects. Your best connectors should also document key

    relationships and help transer network knowledge rom project to

    project.

    Use Inormed Skeptics to teach how to apply judgment in work.Identiy employees with the strongest decision-making skillsthose who

    bring a critical eye to analytic tasks, analyze data, use their intuition,

    and apply judgment. Use these Inormed Skeptics to model the correct

    approaches to decision making on the job. Task them specically with

    coaching less capable team members and rotate them across key projects.

    Manage both learning and work activities on key projects. Learning

    needs to be intentional and built into projects. Managers, mentors, and

    coaches must emphasize learning alongside the projects core activities.

    Hold managers accountable or ensuring that the ollowing steps are

    taken: 1) identiy learning opportunities and goals beore a project begins,

    2) assess learning during a project, and 3) refect on skill development

    and next steps at the projects completion.

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    Redening employee roles and managing them toward greater enterprise

    contribution leads to stronger business perormance. CEBs analysis shows

    that those organizations able to move beyond maximizing individual

    perormance to achieve higher levels o enterprise contribution signicantly

    outperorm their peers. Firms that were able to move more employees to high

    levels o enterprise perormance realized a 10% improvement in protability,

    compared to a 5% improvement or those who emphasized and achieved highlevels o individual perormance alone.

    Managing to Enterprise Contribution Increases Perormance

    Percentile Change in Prot, by Percentage o Enterprise Contributors

    in Business Unit

    n = 23,339.

    Note: CEB used a two-stage least squares regression to estimate the causal relationship betweenbusiness unit prot change and percentage o employees achieving individual task and network

    outcomes. The efects are modeled using a variety o multivariate regressions with appropriatecontrol variables.

    Source: CEB, CLC Human Resources High Perormance Survey.

    Percentage o Employees

    15th

    10th

    5th

    0

    0% 25% 100%75%50%

    High Enterprise Contribution

    (High Individual Task and

    Network Performance)

    High Individual Task

    Performance Alone

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    Unortunately, 64% o employees do not eel their current role truly refects

    how they do, or should, work with others to get their jobs done.12 To improve

    their employees enterprise contribution, managers need to embrace

    collaboration as a key element o the new work environment and take specic

    steps to help employees be more productive in new, expanded roles:

    Add the Three Cs o strong enterprise contribution to employee

    roles. Focus employees on the importance o sub-roles that are key to

    driving network perormance by setting expectations that each employee

    must act as a:

    ConnectorEectively enranchising essential coworkers, peers,

    and others in ormal and inormal collaboration projects, specically

    including others who are jointly responsible and accountable or

    work outcomes and those who should be consulted and inormed.

    ContributorWillingly providing input and support to the work o

    others, both ormally and inormally, as required.

    ConsumerActively seeking out ideas and input rom others in

    the organization and incorporating them into ormal and inormal

    collaboration projects as required to get work done.

    Manage collaboration over discrete work tasks. Unortunately, only

    40% (two in ve) o employees report their manager is able to connectthem eectively with their coworkers.13 As a result, many employees

    are uncertain about whom to work with and how to do it eectively.

    Managers must actively encourage their employees to collaborate more

    eectivelyproviding support rom connectors, coaches, and peers.

    12, 13 CEB, CLC Human Resources High Perormance Survey.

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    Invest time in building complementary teams, and keep the ones

    that work. On a limited number o high-impact or critical projects,

    take the added step o ormally creating the initial working teams.

    Evaluate the core sta available or key projects on extended teams, and

    create connections that complement strengths and weaknesses. Avoid

    disrupting eective teams, ensure team stability, and keep key elements

    o collaborative teams intact rom project to project.

    Emphasize network management alongside knowledge

    management. In addition to documenting key work processes and

    activities, executives should map and document key relationships within

    and between working teams. Actively refecting on and documenting

    connections essential to collaborative projects will help in transerring

    network knowledge over time.

    Encourage and enable collaboration with external partners.

    With more outsourcing, critical supplier relationships, and strategic

    partnerships, it is more important than ever to establish strong working

    relationships with sta in external organizations. Create opportunities

    or joint work, and encourage inormal communication between sta and

    vendors, partners, proessional associations, and alumni networks. Use

    simple rules to guide these interactions and to protect strategic projects

    and proprietary inormation.

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    While leaders can take specic steps to shit roles and expectations to improve

    collaboration, they must also help employees perorm better at undamentally

    dierent work. The challenge o managing in the new work environment is

    compounded by the act that work is less supervised and, by extension, more

    autonomous; there are ewer managers to do the managing since the average

    span o control has grown rom 6 to 12 direct reports between 2002 and 2012.14

    How can senior leaders and managers at all levels modiy their traditional

    approaches to management to overcome this challenge? Even in a more

    collaborative work environment, hierarchical, manager-led control serves

    as a valuable check and, more importantly, a ocused means o directing

    work to the best organizational outcomes. Work is undamentally more

    complex and will remain so going orward. A managers role is not to ght

    the trend by trying to simpliy complex work or jobs but rather to remove the

    complications arising in a less routine, more ambiguous, and collaborativework environment.

    3Reorient Managers to Guide and

    Empower Knowledge Workers

    Help Employees Do Complex JobsDontSimpliy Them

    Maximum Impact on Employee Perormance, by Type o Manager

    Strategy

    n = 23,339.

    Source: CEB, CLC Human Resources High Perormance Survey.

    1%

    11%

    Managers Help EmployeesSimpliy Their Roles

    < 1%

    Managers Help EmployeesNavigate Complex Roles

    14 CEB, CLC Learning and Development High Perormance Survey, 2012; CEB, CLC 2002 PerormanceManagement Survey; CEB, CLC 2008 Organizational Redesign Survey.

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    Organizations eective at achieving higher perormance and more enterprise

    contribution rom their employees expect their management teams to do the

    ollowing:

    Focusand communicateon big-picture objectives over process.

    A consistent understanding o organizational objectives is essential

    to employee ocus and perormance in a high-change environment.Regularly restate and conrm organizational objectives to provide

    a strategic context or employees work and decision making.

    Empowerand embracedecisions deeper in the organization.

    Employees need greater autonomy to make decisions and manage their

    work activities. Embrace this shit in decision making and enable it by

    setting clearer objectives, providing access to more inormation, and

    supporting more agile resourcing or key projects.

    Connect employees to inormation sources rather than provide

    the inormation. Managers should provide direction to and establish

    context or critical inormation rather than mediate its fow to

    employees. Resetting connections can be as simple as creating links

    between employees and key stakeholders or as complex as changing

    reporting and permission rights on key sources.

    Pursue managed collaboration over broad idea generation.

    Too oten, collaboration is an unettered exercise in idea exchange ueled

    by online crowdsourcing and social media platorms. While the easy fow

    o inormation and ideas is important, ocus on limiting the number o

    approved projects and attaching them to enterprise-level goals with clear

    objectives, timelines, and expectations.

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    4Target Technology Investments to

    the Evolving Needs of Knowledge

    Work and Collaborative TeamsMaintaining and improving productivity levels will require organizations

    to retool the work environment to better support collaborative, knowledge-

    intensive work. While corporate IT organizations have done a very good job

    providing oundational, enterprise-level solutions to support standard work

    processes and needs, senior leaders should reevaluate their technology needs

    to ensure current platorms are accelerating perormance, not hindering it.

    While 99% o employees use some orm o technology on the job,15 less

    than 40% eel they have the technology needed to be productive. As work

    has become less routine and more exceptions based, standard enterprise

    solutions are simply not as eective. End-user surveys show that employees

    want easy-to-use technology that will help them collaborate, make decisions,

    and get their work done. Unless organizations can better link technology

    to the work needs o employees, inadequate or misapplied technology will

    likely be a major barrier to knowledge worker productivity, not to mentionbottom-line protability.

    Employees Lack Sufcient Technology to Work Eectively

    Percentage o Respondents, by Level o Enablement on CEBs

    Technology-Enabled Productivity Barometer

    n = 983.

    Source: CEB, CEB Technology-Enabled Productivity Survey.

    15 CEB, Help Desk Benchmark Database, IT Perormance Benchmarking.

    61%

    Not Technology Enabled

    39%

    Technology Enabled

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    Employees Want Easy-to-Use Technology to Get Work Done

    Preerence Ranking o Technology Attributes at Work

    n = 9,900 global employees.

    Source: CEB, Inrastructure Executive Council Employee Technology Value Survey 2011.

    Device and ApplicationsShould Be as Easy to Use and

    Intuitive as Possible

    Inormation Should Be Seamless,Meaning I Can Access and Use ItAcross Applications and Devices

    Technical Support and TrainingShould Be Available by Request

    with Minimal Delay

    I Need to Be Able to CustomizeDevices and Applications to My

    Individual Needs

    Least Important Most Important

    (7%) 38%

    (9%) 16%

    (9%) 16%

    (20%) 5%

    (33%) 7%

    7%

    9%

    9%

    20%

    33%

    I Need to Be Able to Accomplish

    Both Personal and Work-RelatedTasks with the Same Devices and

    Applications

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    How can executives ensure employees have easy-to-use technology that will

    help them make decisions, collaborate, and complete their work? Firms that

    get more enterprise contribution rom their employees invest in improving

    mobility, data usability, collaboration platorms, and customized applications

    by doing the ollowing:

    Build back rom employee needs, not just broad business needs.

    Do not over-standardize technology and tools at the enterprise or

    divisional level. Encourage corporate IT to move beyond legacy needs

    assessment methods to processes that are more customer riendly, that

    is, ocused on observing end users in specic workfows (e.g., work

    groups and major collaboration projects) rather than broad business or

    unctional groups.

    Identiy and use prosumers to redefne technology needs.

    Every group has its prosumers, the early adopters who discover, test,and adopt the most appropriate (i not always approved and supported)

    technologies to do their work. Use your prosumers to help establish team

    needs, identiy promising technologies, and drive utilization.

    Encourage and embrace mobile technology trial and error.

    Employees will use and adopt the technology they need to get their work

    done. More than 60% o employees use their own mobile devices at

    worknot or convenience, but because they are useul in getting work

    done.16 A simple, but big, step in many organizations is to embrace the use

    o personal devices by employees. Leaders should avoid zero tolerance,

    overly restrictive, or one-device-ts-all policies or mobile devices and

    customized applications.

    16 CEB, Inrastructure Executive Council Employee Technology Value Survey 2011.

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    Fix data accessibility and usability. While employees can access

    data readily, too much data is unusable or too hard to nd; more than

    50%o employees say inormation is in ormats they cannot use.17 As a

    result, two-thirds o employees report spending time on unproductive

    analyses.18 Business leaders and their IT organization need to conduct

    regular assessments o the companys core data needs and assets

    identiying causes o less usable data and creating a dened structure

    or collecting, dening, prioritizing, storing, and disseminating better

    inormation.

    Create collaboration platorms to make immediate, in-the-moment

    interactions easy. Unortunately, most collaboration platorms are

    centered on document sharing and project management when they

    should be supporting knowledge workallowing employees to work

    together quickly, seamlessly, and on demand. Organizations need to

    develop improved capabilities or broad idea sharing; concurrent, joint,and iterative work; and on-demand communication (including easy-to-

    use, low-cost messaging, web conerencing, and video/voice systems).

    Provide a wider array o analytic applications. New technologies

    and devices (tablets, smartphones, etc.) allow employees to readily

    access data in and outside the oce. The bigger challenge is providing

    employees access to the analytical applications necessary to be

    productive with enterprise inormation outside the oce; one in

    three employees are using applications they have ound themselves.19

    Managers should work with their IT group to identiy and innovate the

    applications employees nd most useul or work outside the oce.

    Avoid overly restrictive policies that limit the use o cloud-based apps or

    over-prioritizing scalable applications that are less customized to specic

    employee needs.

    1719 CEB, Inormation Technology Insight IQ Diagnostic.

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    Corporations today are ocused on growthnot at any cost but at less cost.

    Achieving simultaneous growth in top-line revenue and bottom-line

    protability has come, and likely will continue to come, through greater

    workorce productivity. While organizations have achieved impressive

    levels o workorce eciency in recent years, they require moreto stay

    competitive and grow, CEOs and leadership teams look or breakthrough

    perormance and productivity gains rom their employees. To achieve these

    gains, organizations need to understand the dramatic shits underway in

    the work environment and reocus on enabling higher levels o workorce

    perormance.

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    Todays work environment is in constant fux. Change is the new normal

    or employeeschanges in target markets, products, business objectives,

    organization structure, work location, work teams, job role, or manager

    alignments have become common. In part as a response to a more fuid

    business environment and a result o ubiquitous inormation and rapid

    technological advances, the predominant work o employees has become

    much more collaborative and knowledge based. While rms may be tempted

    to hire an all-new employeebetter able to perorm in a collaborative,

    knowledge-based work environmenttheir needs are much more immediate,

    and the new skills required are best developed through on-the-job experience.

    Improvingor simply maintainingworkorce productivity requires rms to

    accept the work environment has changed, and their underlying approaches

    to employee development, work roles, management, and technology must

    also change.

    Improving workorce perormance and sta productivity is a central ocus

    o CEB and SHL. In 2013, we will continue to rene our understanding o

    the changing work environment, evolving skills requirements, and talent

    management challenges essential to improving employee perormance and

    productivity. To learn more about how other organizations are improving

    employee productivity, to participate in our work, or to network with your

    peers, please visit us at www.executiveboard.com/executive-guidance.

    Members can reach their Executive Advisor at 1-866-913-2632 or contact

    CEB at [email protected].

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    ABOUT CEB

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    The pages herein are the property o The Corporate Executive Board

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    CEB is the leading member-based advisory company. By combining the best

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    This distinctive approach, pioneered by CEB, enables executives to harness

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    2012 The Corporate Executive Board Company.

    All Rights Reserved. CEB3113312SYQ4

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