Winning Support For Your Intranet / Intranet 2.0 Initiatives June 2009

Intranet value

Intranets and corporate portals are widely valued for:

Streamlining business processes

Driving operational efficiencies

Enhancing communications and collaboration

Reducing the cost of internal business functions

And virtually every line of business and department within an organization can benefit from the power, flexibility and bottom-line value of an intranet.

Intranet 2.0 Promise

52% of organizations using Web 2.0 achieved Best-in-Class performance (5% didn’t) (Aberdeen Group) ‏

Companies using Web 2.0 tools achieved 18% increase in engagement (Aberdeen Group) ‏

Sabre has already attributed $500k in savings to their employee social networking tool (Sabre) ‏

Cisco attributes $millions in savings to their wikis (Cisco) ‏

Understand

Need

Perceived need

SodexhoNet Dashboard

Business case: example

“ Look at your business. ”

Angelo Ioffreda, VP, Internal Communications, Sodexo

Add value to dispersed workforce

Productivity

Effective and efficient communications: reduce print

Enable people to find one another

Add applications that enhance business value

SuperSleuth Benefits

Has increased leads by more than 100% and net client sales by US $90 million.

One easy-to-access company-wide program.

Promotes lead exchange across business segments / breaks down silos.

Reduces administrative effort, leads get to sales executives more quickly for action.

Works well in our decentralized organization.

Your take-aways

Understand intranet/intranet 2.0 value

Understand your company’s business drivers

Link value to drivers

Bring data, not opinion

Business case: example

VP Communications, multi-national, 20K+ employees

Broad understanding that rogue sites (+100) was ineffective: rigorous standards and guidelines

Danger: virtually impossible to get and share accurate information

Support culture and collaboration

No one place to start and end day

Lesson: “Get through your strategy and implementation plan quickly so executives have confidence that you can execute your roadmap.”

Strategy

“ Without a strategy and plan we would not have had executive buy in (and funding)” says Karen Allen, Manager of Employee Communications and the Xerox weboard,” We needed to prove to our leaders how useful and valuable the intranet is.”

“ In God we trust, all others bring data,” Charles Demming

Intranet sources of value

Corporate effectiveness

Efficiency/productivity

Employee engagement

Time to productivity/recruitment

Enable “One Company”

“ No consistency across the sites. Aren’t we all supposed to be one company.” Business Requirement Interviewee

Common, consistent intranet for all employees

All geographies and GBU/SBUs deliver consistent experience/information

IBM: improved communications

Proving intranet value: IBM

80% IBM employees visit w3 at least once per day

Productivity savings estimate of $80.6 million

68% view the intranet as crucial to their jobs

Employee retention: 52% are more satisfied to be an IBM employee because of information obtained on w3

Finding information

30% of information workers’ time is spent finding information

At a cost of $18K each year per employee in lost productivity

Collectively, the time spent looking for info translates to an estimated 5.4 billion lost hours per year (US corporations) ‏

Source: Center for Media Research

Efficiency examples

Empower Line Managers

42% of managers said they accidentally use the wrong information at least once a week. (Source: Accenture, 2007 Study)

57% of respondents said that having to go to numerous sources to compile information is a difficult aspect of managing information for their jobs. (Source: Accenture, 2007 Study)

Increase efficiency

“ On average, focus group participants spend between one and two hours a day tracking down the information they need to perform their role.” Prescient focus group report .

Increase efficiency by enhancing ease of finding information

Reduce unproductive activity

E.g. HR reps fielding calls because employees cannot find accurate HR information

IT fielding help desk calls

Efficiency examples

A prominent financial services firm with 30,000 employees reduced their IT Help Desk call volume by 30% and saved more than $300,000 annually by providing better self-service information on their intranet. (Source: Prescient client, 2003)

Efficiency examples

Save time by finding and managing information

One prominent investment company (800 employees) performed a content audit and eliminated 70% of the content (7000 pages) on their new intranet which reduced content migration, maintenance, and storage costs by tens-of-thousands of dollars per year. (Source: Prescient Digital Media client, 2004)

Engagement

Employee engagement delivers

Improved morale

Higher collaboration

Organization loyalty

Faith in management

Improved productivity

Higher recruitment & retention

Best Buy: BlueShirtNation (BSN) ‏

Encouraged employees to participate in a video contest that promoted their 401k plans

BSN helped increase the number of employees signing up for 401(k) accounts by 30%

Also increased employee retention

Reports 1/10 th increase in employee engagement will increase single store sales $100k

HR

I’m having a baby.

I’ve just been hired.

I’m getting divorced

Admin

I need business cards.

I am changing job locations.

I am becoming a home-based employee.

Employee Recruitment/Retention

39 per cent of 18 to 24 year-olds would consider leaving if they were not allowed to access applications like Facebook and YouTube.

A further 21 per cent indicated that they would feel ‘annoyed’ by such a ban.

The problem is less acute with 25 to 65 year-olds, of whom just 16 per cent would consider leaving and 13 per cent would be annoyed

Source: Telindus

Intranet 2.0 satisfaction levels

Only 29% of organizations rate the tool functionality as good or very good; 24% rate them as poor or very poor

Satisfaction rates with executives is dangerously low: only 23% of executives rate the 2.0 tools as good or very good; 38%% rate them as poor or very poor

Your take-aways