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.

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

2. HR leaders are shifting focus to driving growth and
operational efficiency
Improving 64
operational efficiency 44% %
Developing new 35%
product/service offerings 48%
Expanding into new 31%
markets/geographies 44%
Today Three years
“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
Source: IBM CHRO Study, 2010
How will you handle the shift back to growth?
© 2011 IBM Corporation

3. To drive growth and operational efficiency
HR leaders need to focus to social business initiatives
Importance of workforce challenges in the next 3 years vs. effectiveness
9
Relative effectiveness
Sourcing and
8 recruiting from “We are not as good
Managing outside the Retaining valued talent at innovation as
labor costs organization within the organization efficiency. The HR
7
function should help
Evaluating Enhancing workforce to build an
6 workforce productivity innovative culture,
performance create forums,
5 develop leaders and
Rapidly find ways to
4 developing measure and reward
Efficiently allocating workforce skills
the workforce and capabilities innovation.”
3
2 Developing Veronica Rörsgård,
Fostering collaboration SVP HR, Skanska
future leaders
and knowledge
1 sharing
1 2 3 4 5 6 7 8 9
Relative future importance
Source: IBM CHRO Study, 2010
© 2011 IBM Corporation

4. A Social Business embraces networks of people
to create business value
At its core, Engaged
a Social Transparent
Business is: Nimble
© 2011 IBM Corporation

5. A Social Business puts in place the ability to:
Engage Reach Discover Optimize
People in Everyone with the New insights – By learning
meaningful right experience, inside and from
collaboration to contribute outside the interactions
around the across enterprise – and applying
right content boundaries, to make better intelligence to
and expertise anytime & decisions the business
anywhere
© 2011 IBM Corporation

6. Social businesses are better positioned for growth
by capitalizing on informal social relationships
A Social Business
Understands employees' formal and
informal networks -- and optimizes
them to drive greater business
insights, increase employee
A Traditional Business 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.
(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]
© 2011 IBM Corporation (2) IBM 2010 CHRO Study

7. The risk: HR often tends towards too much caution
Perception(1): Reality(2):
Social Collaboration isn't critical Social Collaboration drives results
<¼ “...Companies that used Web 2.0
of CHROs use social
networking or collaborative to collaborate across organizational
technologies to preserve silos and to share information more
broadly also reported improved
critical knowledge
market shares.”
¼
use those tools to spread
innovation throughout their
organizations
(1) IBM 2010 CHRO Study
(2) McKinsey: “The rise of the networked enterprise: Web 2.0 finds its payday”
© 2011 IBM Corporation

8. The value of Social Business for HR and Workforce
Primary Goals Client ROI References*
Transformation is real
Realized benefit - median improvement %(1)
Increase speed of access to
internal knowledge Opportunities for ROI(2)
(realized by 77% of respondents)
• Faster on-boarding & M&A = 10%
lower cost
Increase speed of access to
• Reduced new employee training
internal experts costs 15%
(realized by 52% of respondents) • Compressed employee
communications time = $2M
• Virtual teamwork reduces travel
Reduce internal frees $8M
communications expense
(realized by 60%)
(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
© 2011 IBM Corporation

9. Consider the ROI from HR at UtilityCo
Background
• Large US electric utilities provider (14M customers)
• Business challenge: “Roll out new grid, while continuing to lower costs”
Return on Investment:
Business Initiatives Workforce Pain Points Social Business Benefits*
Build the organizational • Retiring expertise of maturing • Community-based programs collect the best
talent for Smart Grid workforce (>40% in 7 years) practices and facilitate professional
• High turnover (15%) of new talent relationships to spread knowledge and
focused on the strategic smart grid experiences
programs due to poor • Improved on-boarding and new employee
communication, mentoring, effectiveness by ≈ $2M.
Increase speed to • Antiquated work processes, • Real time messaging and conferencing for
bringing SmartGrid to connecting many locations, and meetings (vs. driving), integrated project
market command and control culture drove management with team interaction, and
high costs and slow response time. community development
• Rapidly bringing initial SmartGrid • Improved productivity by > $8M.
capabilities to market was critical.
(1) As projected by IBM Business Value Assessment client
© 2011 IBM Corporation

10. For Sogeti, becoming a social business means
rapidly developing and deploying skills
Goal: More closely TeamPark
align a spread out
workforce Driving 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
Campaign:
Sogeti TeamPark – a “People are finding each other, creating
collaborative platform new services. It could be an extremely
valuable part of our culture."
for employees
– Erik van Ommeren
© 2011 IBM Corporation

11. For CEMEX, becoming a social business means
developing a culture of knowledge and insight-sharing
Goal: to shift culture
Project Shift
towards more open Driving a measurable social transformation...
collaboration across a
global organization
• 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
Campaign: Project globally-branded ready-mix product
Shift - an internal
social network “It can make a big company look like a small company"
– Gilberto Garcia,
Director of Innovation
© 2011 IBM Corporation

12. For IBM, becoming a social business means
developing the next generation of creative leaders
Goal: Improve leadership Leadership
development from the
ground up
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
Campaign: IBM Leadership
self-driven networks
© 2011 IBM Corporation

13. For IBM, becoming a social business means
using social recruitment to attract the best and brightest
Goal: Attract top and Social Recruiting
diverse talent to IBM
• 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
Campaign: Multiple
collaborative platforms to
target different sources of
talent
© 2011 IBM Corporation

14. For IBM, becoming a social business means
using social learning for skills development, collaboration and innovation
Goal: Continuously Social Learning
develop a spread out • Informal Learning Exchange (ILX): identify,
workforce 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
Campaign: Multiple and secure communities for acquisitions and new
collaborative platforms to hires - accelerates time to performance, increases
support employee learning awareness and collaboration, enhances digital
presence, and decreases attrition.
© 2011 IBM Corporation

15. For IBM, becoming a social business means
using social recognition to highlight day-to-day contributions
Goal: Recognize the best Social Recognition
and brightest
• Blue Thx allows IBMers send virtual
thanks to colleague globally to recognize
contributions, building professional
reputation within the company
Campaign: Collaborative
platform to recognize high
performance
© 2011 IBM Corporation

16. What can a Social Business look like?
Let’s look at the specific impact on people and their work…
Ted,
VP of Simone,
Talent
First-line
Manager
Lucille,
Director of
Human
Resources
© 2011 IBM Corporation

17. Ted, VP of Talent, needs to nurture
the 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
© 2011 IBM Corporation

18. 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
© 2011 IBM Corporation

19. 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
© 2011 IBM Corporation

20. How can I get started?
Some IBM client examples
Engage Reach Discover Optimize
Key Social Mobility, Social content
Interaction & Social analytics
Capabilities accessibility & user & collective
collaboration & monitoring
experience intelligence
Social Onboarding Global Mobility Social learning, Workforce analytics
Example Social Recruiting Roles-based portals
training and Community analytics
education
Entry Engaged Alumni
(M&A)
Expertise Location
Points Leadership (M&A)
Communities
Crowdsource best
practices
© 2011 IBM Corporation

21. 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
© 2011 IBM Corporation

22. IBM.COM/SOCIAL
© 2011 IBM Corporation