The document discusses EMC's transformation from a traditional "command and control" organizational structure to a more networked and collaborative model. It outlines how EMC empowered employees to engage with each other and customers through internal social networks and communities. This led to benefits like increased innovation, productivity and engagement. Employees began sharing ideas, expertise and stories which improved recruitment, customer relationships and the bottom line. The transformation showed that shifting to a connected, knowledge-sharing culture with engaged employees can drive business performance.

1. The NetworkedOrganization: The New Foundation for High-performance Polly PearsonVP Employment Brand & Strategy EngagementEMC Corp

2. $18B $14.8B $14B $13.2B $11.2B $9.7B $8.8B $8.2B $7.09B $6.7B $6.2B $5.44B $4.0B $2.9B $2.3B $1.9B $1.4B $780M $385M $260M $190M ‘04 ‘05 ‘06 ‘07 ‘00 ‘01 ‘02 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ’03 ‘08 ‘09 ’10e A Bit about EMC and Transformation

3. EMC in 2006 What approach should we take? Employeerecruitment and engagement Globalization, diversity and inclusion Internal productivity, collaboration and innovation External productivity, collaboration and innovation Mgmt style Career Dev. “Not hot in the hallways” “Buttoned-down, old-school” “ I don’t know the strategy of the VP in the office next door.” “Are we Mass-based, or are we Global?” “I feel left out of the meeting.”

4. From: To: Silos Command & control Single skill Meet the need Short-term Cross-functional Connected Broad business knowledge Scalable Balance of short- and long-term “me” “WE” The second important skill for our successful leaders is to have the courage to change. We’re still changing as a company. This is the model we know we have to deploy to be considered in the upper echelon of vendors. Our customers want us to make everything work seamlessly for them. To be One EMC. To be strategically relevant. Now, as we go through such changes not everyone comes along —even with coaching, development, inclusion and restricted shares! Casualties are unfortunate but necessary. We must show our courage to change. 2006

5. The Transformation.

6. Backdrop: The Move Awayfrom the Industrial Era Model “Command & Control”

7. “Connection & Collaboration” To the Networked,Knowledge Era Model Hierarchy of Employee Traitsfor the Creative Economy Passion Creativity Initiative CannotCommand(won’t commoditize) Intellect Diligence Obedience Commodities Illustration: Gary Hamel “Leadership at Every Level”

8. Hierarchical Connected & Collaborative From Command to Connection Assigned roles andresponsibilities Applied, shared interests and passions PURE GOLD!

10. Jump-starting the Journey to the High Performance,Connected Organization

11. Everyone Has a Voice Today: 170+ communities; >70% of the workforce registered and active Internal, Voluntary 2.0 Network . . .perspective and behavior begin to shift

12. The Community Brings Genuine Brand Values to Life: Innovation

13. Free. People Become More Connected with the Strategy, Culture, and One Another

14. People Begin To Share More “Day in the Life” Photo Sharing Event Hundreds photos shared from employees in Russia, Japan, Utah, Boston, and more Free.

15. Personal Stories from EMCWorking “Moms” 15 countries 96 women 1 man And a living blog: www.workingmotherexperience.com “The Working Mother Experience” BookEMC.com; http://www.workingmotherexperience.com . . . and, Courageously, Even More

16. Today: Dozens of bloggers; hundreds of micro-bloggers And thousands of employees who suddenly feel welcomed to share that they care Free. Organic Brand Ambassadors Emerge:Home Grown, Enthusiastic, Expert Voices

17. Ambassadors Engage with Customers, Developers, and Partners Building relationships Honoring “rock stars” Developing products Increasing revenue Improving service Reducing support costs Providing certification on products Building loyalty Free.

18. “100 Job Search Tips” eBook Free. AmbassadorsEngage with Prospective Talent

19. Internal “reality TV” Free. Executives Catch On – Sharing with a Genuine, Human Voice

20. © Copyright 2010 EMC Corporation. All rights reserved. 20 The real magic happens in the “Unofficial” Engagement

22. 30,000 + views

23. CFO reporting back

24. Ideas being put to use; employees feel heard

25. Company saving moneyFree. Connecting with the BottomLine

27. “Country Cup”competition adds sparkFree. Connecting with Innovation

28. Free. Connecting with Hope

29. Free. Connecting with FutureEmployees:“Why I work at EMC”

30. Free. 25 Connecting with Customers

31. EVP of HR interviewing . . . new executive hire . . . on YouTube! Connecting with the Story Free.

32. Free. Expanding Your Network to Millions

33. Facebook: EMC Careers TWITTER: EMC Careers Blogs Facebook Twitter YouTube Blogs on EMC Culture & Careers Free. Engagement Opportunities Become Like Viral Fly Paper

34. 29

35. Growth in employee productivity $80,000–120,000additional revenue per month Recruitmentcosts 55% lower $3,800more profitsper employee $18,600more market valueper employee Highercustomer loyalty Higherprofitability Fortune 500 Companies withEngaged Employees Report: Source: Impact of Engaged Employees on Business Outcomes. Ongoing Employee Engagement Research, Hewitt Associates

36. Quiz: Commitment Drivers Which do you think are the top 5 satisfiers for employees today? ____ High pay ____ Good benefits ____ Social, environmentalresponsibility ____ Product quality ____ Collegial work environment ____ The right people get recognized and promoted ____ “Great employer” recognition ____ Ethics and integrity ____ Empowerment; ability to innovate ____ Recognition ____ Skill and career development ____ Treated with respect;people management ____ Interesting work;job/skills alignment Source: EMC Corp; Corp Exec Board

37. Quiz: Commitment Drivers Which do you think are the top 5 satisfiers for employees today? ____ High pay ____ Good benefits ____ Social, environmentalresponsibility ____ Product quality ____ Collegial work environment ____ The right people get recognized and promoted ____ “Great employer” recognition ____ Ethics and integrity ____ Empowerment; ability to innovate ____ Recognition ____ Skill and career development ____ Treated with respect;people management ____ Interesting work;job/skills alignment Source: EMC Corp; Corp Exec Board

38. 33 Results: Snapshot

39. Additional revenue Better RecruitmentVolume and Speed Higher Employee Engagement Additional Innovation Highercustomer engagement Additional profit More Market Value per Employee More + More Favorable Media Coverage EMC’s ROI

40. 95% 93% 92% Personal Satisfaction Enjoy Co-workers Manager Integrity *Based on 30,827 responses from 92% of employees Employee Survey Results*

41. RECORD Employee Satisfaction and Motivation Ratings Customer Satisfaction Ratings Revenue Cash Flow Innovation and Market Share Best Place To Work Awards RESULTS EMC’s 2009 Score Card

42. Key Elements “Lessons” in Our Journey (so far) Inside out Get good behind the firewall, then go outside A “coalition of the willing” Cross-functional, global – and at all levels of the organization Clearly defined “corporate champions” All initiatives need a “face” and a “voice” The “3 Es” – Enablement, Empowerment and Encouragement avoid corporate mandates Lightweight governance Use it sparingly, (e.g., “guidelines” vs. “policies”) Celebrate and promote successes Increases the velocity of change in the organization Have patience It takes time for perceptions and behaviors to change

43. Your Photo Goes Here. What the journey could look like.

44. 2010 2011 2012 2013 Something in the Air Reverse Mentorsfor BOD& Top Execs BOD & CEOAir Cover Explore & Listen BOD Share Notes Big Gun Champion Assigned“CommandComm” Marketing, HR + IT Connect “WorkforceProficiency” InternalEnthusiasts Internal Network “launch” Rolling purchase of software seats Lunch & Learns Viral evangelism: WIIFY, Peer mentoring Communities grow Trust Builds “Rock stars” discovered Employees Go External “Blog Corps Groomed” Investment Idea “Flow” 2.0 Behavior among managers & execs Flattened Escalation;Heightened Decision Making Ability Lowered Cost Structure Connected Workforce Connected Supply Chain Connected with Customers Destination for top talent – “cool”

45. New Tricks Lead with Trust100% of your employees are adults; 99.9% do not want to be fired Listen to the conversations and tone of web 2.0 behaviorSupportive, collaborative, peer-to-peer mentoring, idea rich Shareinformation openly internally; question why not share this? Why not ask the company community help with this? . . . and watch people be inspired, while they help you!

46. Some Observations: The Big Border Disappearing Act Employees Customers,Prospects, Communities Ideas Innovation Success HierarchiesGeographiesAgeRaceDegrees Leadership & Action We are at a rare inflection point in business,similar to the dawn of the industrial era.

47. STAY IN TOUCH. BLOG: http://www.pollypearson.com EMAIL: pearson_polly@emc.com

48. Appendix EMC’s Timeline

49. 2006 2007 2008 2009 Something in the Air Research: Tools & Culture InternalEnthusiasts Marketing, HR + IT Connect “WorkforceProficiency” EMC| ONE “soft launch” Rolling purchase of software seats Lunch & Learns Viral evangelism: WIIFY, Peer mentoring Communities grow “Rock stars” discovered Employees Go External “Blog Corps” Record Employee Engagement, Profit, and Revenue 2.0 Behavior among managers & execs EMCers Top Industry Blog Ranks EMC Ranked World Most Admired Company + Top Social Brand EMC|ONE: 50%+ of employee population active, 160+ communities Facebook & Twitterrecognized as a business tool