What does CEO stand for? Customers, Employees, Owners...three critical stakeholders for organizational success. Which one is the most important? Think of your employees as your most valuable asset. What are the best techniques to effectively communicate to your employees, raise morale and foster attraction and retention of the best and the brightest?

1. Kevin Brett
J410
May 9, 2013

2.  Customers: “Customer Satisfaction”
 Employees: ?
 Owners: Shareholder
Value

3.  Wal-Mart: 2.2 million
 FedEx: 228,866
 Starbucks: 160,000
 Amazon: 88,400
 Whole Foods: 64,127
 Nordstrom: 58,140
 Microsoft: 55,455
 Intel: 48,350
 Nike: 44,000
 Cisco: 35,336
 Google: 34,311
 REI: 10,757

4.  High unemployment;
High underemployment
 Sense that employees
are trapped
 Fungible commodity
 Depreciating asset
 Customer satisfaction;
Shareholder value are higher priorities

5.  Talent (engineers, architects, auditors, analysts,
lawyers, PR/marketing pros…)
 Customer/partner/supplier/shareholder relations
 Word-of-mouth advertisers
 All great organizations
have valuable employee
contributors

6. 2012 2013
 Academic/expert, 68% 69%
 Tech Expert, 66% 67%
 Financial/industry analyst, 46% 51%
 Person Like Myself, 65% 61%
 NGO Representative, 50% 51%
 Regular Employee, 50% 50%
 CEO, 38% 43%
64% trust companies that treat their employees well

7.  C-Level listening tours, webcast
 Two-way corporate Intranets
 Employee magazines via Web
 Employee videos via Web
 Quarterly conference calls
 Three Intranet stories per week to inform and
build morale

8.  LSI Logic Employee Communications
Preferences/Quantitative Survey of 400
Employees
1. Management Town Hall Meetings, 93%
2. Company Intranet Portal (Planet LSI), 73%
3. Logically Speaking (Qtr. Magazine), 29%
4. LSI World (Qtr. Video), 29%
Result: Shut down magazine and video;
emphasized management meetings and intranet;
saved $250,000 annually

9.  Companies acquire companies to gain new technology and talent
 Approximately 70% of deals fail (e.g., Time-Warner/AOL)
 Acquiring companies blow integration
 Acquired employees head for the exits
 Need to welcome acquired employees make them part of the team

11.  Organization’s most valuable asset
 Goes home at night; will they return in a.m.?
 Retention becoming a big issue
 Treating employees well is a winner
 Use digital tools to communicate
 Rely on credible communicators
 Motivate your best and your brightest

12.  Google – Search engine
 SAS – Privately held software developer
 CHG HealthCare Services – Healthcare staffing
 Boston Consulting Group – Management techniques
 Wegmans – Supermarkets
 NetApp – Data storage
 Hilcorp Energy – Energy Provider
 Edward Jones – Financial services
 Ultimate Software – Software Provider
 Camden Property Trust – Apartment developer

13.  The recession/lousy
economy will eventually end
 The siren call of the
“cherry picker” is in the air
 “Retention” will become a big issue
 High costs of replacing workers (~$60k)
 Employees are shareholders too
(ESPP, stock options)/Increasing CSR Interest

14. Why layoffs?
• Insufficient revenue to meet payroll
• Need to restructure company – eliminate businesses
• Need to eliminate redundancies after acquisitions or
mergers
• Survival

15. Survivors
Impacted employees
Customers
Media, especially local media
Financial and market analysts