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Social Business for HR and Workforce Transformation


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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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Social Business for HR and Workforce Transformation

  1. 1. Social BusinessFor HR and Workforce Transformation ExecutivesJacques PavlenyiMarket Segment Manager – IBM Collaboration Solutions @mediamutt © 2011 IBM Corporation
  2. 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. 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. 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. 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. 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. 7. The risk: HR often tends towards too much caution Perception(1): Reality(2): Social Collaboration isnt 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. 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. 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. 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. 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. 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. 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 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 social media activities Campaign: Multiple collaborative platforms to target different sources of talent© 2011 IBM Corporation
  14. 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. 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. 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. 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. 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. 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. 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. 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 ● “Its not about the tool – its 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. 22. IBM.COM/SOCIAL© 2011 IBM Corporation