social business for hr and workforce transformation

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© 2011 IBM Corporation Social Business For HR and Workforce Transformation Executives Jacques Pavlenyi Market Segment Manager – IBM Collaboration Solutions @mediamutt linkedin.com/in/jjpavlenyi

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Social networks and enterprise 2.0 technologies are rapidly forcing an evolution not just in consumer behavior, but workplace behavior as well. How are these technology and cultural changes affecting the role of the Human Resources executive? What are the implications for transforming the workforce to one that is more able to respond to rapidly changing business conditions? In this presentation, we look at the specific effects Enterprise 2.0 has on workforce transformation and the role of HR in a social business.

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Page 1: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Social BusinessFor HR and Workforce Transformation Executives

Jacques PavlenyiMarket Segment Manager – IBM Collaboration Solutions @mediamutt linkedin.com/in/jjpavlenyi

Page 2: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Source: IBM CHRO Study, 2010

Improvingoperational efficiency

Expanding into new markets/geographies

Developing new product/service offerings

Today Three years

44%64%

31%44%

35%48%

“Our current stance is defensive to protect our profits under difficult economic circumstances; however, over the medium and long term, our agenda is geared toward global growth.”

Director of Operations, United Kingdom

How will you handle the shift back to growth?How will you handle the shift back to growth?

HR leaders are shifting focus to driving growth and operational efficiency

Page 3: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

To drive growth and operational efficiency HR leaders need to focus to social business initiatives

Source: IBM CHRO Study, 2010

Relative future importance

9

8

7

6

5

4

3

2

1

987654321

Sourcing and recruiting from outside the organization

Evaluating workforce performance

Efficiently allocating the workforce

Managing labor costs

Fostering collaboration and knowledge sharing

Rapidly developing workforce skills and capabilities

Enhancing workforce productivity

Retaining valued talent within the organization

Developing future leaders

Rel

ativ

e ef

fect

iven

ess

Importance of workforce challenges in the next 3 years vs. effectiveness

“We are not as good at innovation as efficiency. The HR function should help to build an innovative culture, create forums, develop leaders and find ways to measure and reward innovation.”

Veronica Rörsgård,SVP HR, Skanska

Page 4: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

EngagedAt its core,a Social Business is:

Transparent Nimble

A Social Business embraces networks of peopleto create business value

Page 5: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

People in meaningful collaboration around the right content and expertise

Everyone with the right experience, to contribute across boundaries, anytime & anywhere

New insights – inside and outside the enterprise – to make better decisions

By learning from interactions and applying intelligence to the business

Engage Reach Discover Optimize

A Social Business puts in place the ability to:

Page 6: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Social businesses are better positioned for growthby capitalizing on informal social relationships

(1) Cross, R., Parker, A., Prusak, L. & Borgatti, S.P. 2001. Knowing What We Know: Supporting Knowledge Creation and Sharing in Social Networks. Organizational Dynamics 30(2): 100-120. [pdf]

(2) IBM 2010 CHRO Study

A Traditional Business

A Social Business

Understands employees' formal and informal networks -- and optimizes

them to drive greater business insights, increase employee

effectiveness, and improve outcomes.

Relies on outdated means of interaction, treats employees in a

one-size-fits-all manner, and allows organizational silos to

limit knowledge sharing.

Page 7: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

The risk: HR often tends towards too much caution

(1) IBM 2010 CHRO Study(2) McKinsey: “The rise of the networked enterprise: Web 2.0 finds its payday”

“...Companies that used Web 2.0 to collaborate across organizational silos and to share information more broadly also reported improved market shares.”

< ¼of CHROs use social

networking or collaborative technologies to preserve

critical knowledge

¼use those tools to spread

innovation throughout their organizations

Perception(1):Social Collaboration isn't critical

Reality(2):Social Collaboration drives results

Page 8: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Realized benefit - median improvement %(1)

(1) “The rise of the networked enterprise. Web 2.0 finds its payday” – McKinsey Global Survey Results, 2010

(2) Projected from IBM Business Value Assessment workshops

8

Client ROI References*Primary GoalsThe value of Social Business for HR and Workforce Transformation is real

Increase speed of access to internal knowledge(realized by 77% of respondents)

Reduce internal communications expense(realized by 60%)

Increase speed of access to internal experts(realized by 52% of respondents)

• Faster on-boarding & M&A = 10% lower cost

• Reduced new employee training costs 15%

• Compressed employee communications time = $2M

• Virtual teamwork reduces travel frees $8M

Opportunities for ROI(2)

Page 9: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Background• Large US electric utilities provider (14M customers)• Business challenge: “Roll out new grid, while continuing to lower costs”

Return on Investment:

(1) As projected by IBM Business Value Assessment client

Consider the ROI from HR at UtilityCo

Business Initiatives Workforce Pain Points Social Business Benefits*

Build the organizational talent for Smart Grid

• Retiring expertise of maturing workforce (>40% in 7 years)

• High turnover (15%) of new talent focused on the strategic smart grid programs due to poor communication, mentoring,

• Community-based programs collect the best practices and facilitate professional relationships to spread knowledge and experiences

• Improved on-boarding and new employee effectiveness by ≈ $2M.

Increase speed to bringing SmartGrid to market

• Antiquated work processes, connecting many locations, and command and control culture drove high costs and slow response time.

• Rapidly bringing initial SmartGrid capabilities to market was critical.

• Real time messaging and conferencing for meetings (vs. driving), integrated project management with team interaction, and community development

• Improved productivity by > $8M.

Page 10: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For Sogeti, becoming a social business means rapidly developing and deploying skills

Goal: More closely align a spread out workforce

Campaign: Sogeti TeamPark – a collaborative platform for employees

TeamParkDriving real business results… • Knits a single corporate culture = unites

200 locations in 14 countries

• Speeds market responsiveness = reduces search time for finding staff expertise, speeds the formation of consulting teams, and enter new markets more quickly

“People are finding each other, creating new services. It could be an extremely valuable part of our culture."

– Erik van Ommeren

Page 11: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For CEMEX, becoming a social business meansdeveloping a culture of knowledge and insight-sharing

Goal: to shift culture towards more open collaboration across a global organization

Campaign: Project Shift - an internal social network “It can make a big company look like a small company"

– Gilberto Garcia, Director of Innovation

Project ShiftDriving a measurable social transformation...

• Rapid organic adoption = 17000 employees connected in the first year, 400 new communities, innovation initiatives increased from 5 to 9

• Bring new products to market faster = 600 participants across several countries develop CEMEX' first globally-branded ready-mix product

Page 12: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For IBM, becoming a social business meansdeveloping the next generation of creative leaders

Goal: Improve leadership development from the ground up

Campaign: IBM Leadership self-driven networks

Leadership Networking Group

• Rapid, organic growth of community= over 1,200 members share information, collaborate and network about what it means to be an IBM leader

• Insights for innovation and market growth = Learn from others' best practices

Page 13: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For IBM, becoming a social business meansusing social recruitment to attract the best and brightest

Goal: Attract top and diverse talent to IBM

Campaign: Multiple collaborative platforms to target different sources of talent

Social Recruiting• University Students: engaged through ibm.com

Communities, Facebook, Twitter, LinkedIn and YouTube

• Experienced hires: targeted through and engaged via IBM and public social media

• Potential Interns and Co-Ops: engaged through LinkedIn, Facebook, Twitter, YouTube and other "local" social media to Brand IBM, driving them to ibm.com social media activities

Page 14: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For IBM, becoming a social business meansusing social learning for skills development, collaboration and innovation

Goal: Continuously develop a spread out workforce

Campaign: Multiple collaborative platforms to support employee learning

Social Learning• Informal Learning Exchange (ILX): identify,

harvest, and share dispersed informal learning content

• W3 Communities: accelerate skills development, build expertise, collaborate, innovate

• Virtual Social Worlds: 3D immersive technologies create highly interactive on-line experiences that engage the learner in an immediate and personal manner with content and peers.

• Accelerated Acquisition Onboarding - integrated and secure communities for acquisitions and new hires - accelerates time to performance, increases awareness and collaboration, enhances digital presence, and decreases attrition.

Page 15: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

For IBM, becoming a social business meansusing social recognition to highlight day-to-day contributions

Goal: Recognize the best and brightest

Campaign: Collaborative platform to recognize high performance

Social Recognition

• Blue Thx allows IBMers send virtual thanks to colleague globally to recognize contributions, building professional reputation within the company

Page 16: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

What can a Social Business look like? Let’s look at the specific impact on people and their work…

Lucille, Director of

Human Resources

Simone, First-line Manager

Ted, VP of Talent

Page 17: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Ted, VP of Talent, needs to nurturethe next generation of social, creative leaders

Ted needs to: • Foster creativity and borderless thinking• Radically rethink leadership development• Integrate leadership development with emerging business opportunities

In a social business, Ted can:• Create leadership development communities• Flatten top-down communications

Page 18: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Lucille, Director of HR, needs to rapidly develop and deploy skills

Lucille needs to: • Capitalizing on collective intelligence• Encourage multiple generations of employees to actively engage with one another• Explore, reward and integrate diverse and unconventional points of view

In a social business, Lucille can: • Develop a culture of eminence • Surface your experts • Crowdsource best practices

Page 19: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

Simone, a first-line manager, needs to mobilize her team to be more responsive and flexible

Simone needs to: • Share knowledge and insights across boundaries

In a social business, Simone can:• Provide self-service, comprehensive HR portals

Deliver self-service project and on-boarding repositories

increase virtual serendipity

Page 20: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

How can I get started? Some IBM client examples

Key Social Capabilities

Example Entry Points

Workforce analyticsCommunity analytics (M&A)

Social learning, training and educationExpertise Location (M&A)Crowdsource best practices

Social OnboardingSocial RecruitingEngaged AlumniLeadership Communities

Global MobilityRoles-based portals

Social analytics & monitoring

Social content & collective intelligence

Interaction & collaboration

Mobility, accessibility & user

experience

OptimizeDiscoverEngage Reach

Page 21: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

How can I get started today?

1) Set the Strategy● “Culture eats strategy for lunch”● What are my organizations' goals?● What cultural issues will impact reaching those goals?

2) Model the business value● “It's not about the tool – it's about the task”● Look for quick hit tasks for immediate improvement● Define longer-term transformational projects

3) Prove the concept● “Walk before you run”● Prepare Day-in-the-Life scenarios● Roll out to small group of dedicated users● Use results to develop ROI and rapid iteration plans

Page 22: Social Business for HR and Workforce Transformation

© 2011 IBM Corporation

IBM.COM/SOCIAL