Case StudyJonathan Hall: CEO. The Virtual Works

Web 2.0 systems to engage employees

• Content

– Intro– Context– Business case– Deloitte case study

• Web 2.0 for business [to business]. [Business and Industry value chain.]

– Strategy | Systems |services• Technology Top 100 accredited.• Innovator of the year: Finalist.• Operate interactive business networks for the IT Industry, Wellness

Industry, Finance sector, Fashion Industry and Construction.• Clients include Liberty Life, Deloitte, Plascon, Ceramic Industries, Otis, PG

Glass, PPC, PG Bison, Cobra, Grohe and Mazista.

Strategic context

Strategic context. [Threat | Opportunity]

• Thanks to the connective and interactive power of the latest generation of the internet [Web 2.0] and information technology:• Customers can source products from anywhere.• Competitors can imitate products and services quickly.

• Conventional sources of competitive advantage are closing down.• Now it’s not what you do but how you do it that will give your

business a sustainable competitive advantage.• An organisations DNA, rather than products, is now key to a

differentiation proposition. [5th ‘P’]

= the source of competitive: People.

Alignment, motivation and retention of talent to deliver a superior experience to customers.

Business case

Engagement and recognition

• Engagement: Continuous, meaningful and collaborative involvement of people in the business of the business.

• Recognition: Authentic recognition, credible acknowledgement and appreciation of the contributions of people.

The objective of employee engagement.

Employee Commitment

Em

ploy

ee E

ngag

emen

t

70% of an average firms staff are not engaged or committed.

Source: Enterprise IG. 2004.

Engaged but not

committed

Committed and engaged

Neither committe

d nor engaged

Not engaged

but committed

4% 29%

30%37%

Employee Commitment

Em

ploy

ee E

ngag

emen

t

12 factors that motivate employeesSource: The Gallup poll -10 million workplace interviews across industries across the world.

1. Knowing what’s expected.2. Materials and equipment.3. Opportunity to do what I do best.4. Recognition and praise5. Care for me as a person.6. Encouragement of my development.7. My opinions seem to count.8. A connection with the mission of the company.9. Co-workers doing quality work.10. Best friend at work.11. Talking about progress.12. Opportunities to learn and grow.

Barriers.• Unlike machinery, humans choose to invest varying levels of:

• Commitment• Knowledge• Energy• Creativity

...depending on their state of mind each day!

• And unlike machinery, these vital assets leave after 8 hours without guarantee that they’ll return in the same state the following day:

The business case for employee engagement

Source: Towers Perrin Workforce Study - 2005

1. The share price of firms that engage their employees significantly outperform rivals that do not actively involve employees. . Source: Gallup Organisation 2006.

2. Engaged employees are far more committed, productive, efficient, effective and innovative than disengaged employees.

3. Because employee engagement is difficult to imitate – competitive advantage is usually sustainable in the long-term.

The Challenge:

• Nearly 6000 employees in many roles – at many levels.

• Spread in hundreds of business units over Southern Africa.

• Frequently out of the office.• Disengaged by line leadership style• Most staff highly computer literate.

Web 2.0: The latest generation of internet tools.

InterconnectCommunicateShareCollaborate

Solution

Web 2.0 and mobile system to interact with employees about strategy and strategy implementation.

Managing strategic conversations

Strategic roleFe

edba

ck

Employee Engagement: Programme Design Framework

• Objectives: Why do we want to engage our employees? [Business case for investing time and money in an employee engagement programme?]

• Purpose: What do employees want to be involved in – and why? [What will cause our employees to engage? [What’s in it for employees?]

• Relevance: How do we ensure our goals and roles are relevant to all our employees. [segmentation.]

• Method: What is the most effective and efficient way to collaborate with employees?

• Roles: Who will engage our employees?• Timing: When will we engage our employees?

Framework: What do employees want to be involved in? [Organisation wide survey]

• Context: What’s the firm trying to do – and why?• Role: How do I fit in to the plan - what does the firm need me to do?• Input: I have ideas and opinions to share to:

– improve my contribution– Identify opportunities and threats.– Credibly recognise my co-workers

• Feedback: How are we doing – how am I doing? • Value: Is my contribution valued and appreciated – does the enterprise

care about me?

The building blocks of employee engagement

Connect Relevant role

CollaborateShare

information

InteractFeedback

Relevant role: Enterprise segmentation to create relevant communities.

Function

Service lineRegion

Like people, employees are different – To be relevant, create relevant communities and engage meaningfully/differently.

Kwa Zulu

Western Cape

Gauteng

Deloitte Community Segment matrixVertical and horizontal communities = relevance

Client service

Professional

Enablement

SupportAudit

Tax

Consulting

Risk

Web 2.0 SystemFunctionality requirements

Tools to collaborate with employees about strategy

Connect every employee to

relevant business communities and

community conversations

Distribute a personal role and

practical behaviour

guidelines to every employee

Provide the tools for employees to

share feedback on implementation

progress

Enable the employee

community to identify

colleagues deserving of

recognition and appreciation

Facilitate interactive, high speed, precise and relevant

conversation up, down and around the organisation

Personal dashboard: Quick tour

CEO

Div

Reg

Team

Emp

Hierarchical structure and paths of hives.

Community

Feedback

Heat Map

Conversations

Messaging

Nomination

Hi Sue. You have recognised for customer service by Jen Wilson. Nice work!

Validation

MeasurementOrdinary Impact Moderate impact High impact Extra ordinary impact

Select impact ranking

20%Transformed Business

320%

12 points

Appreciation

Key success factors Engagement; Shift to conversational leadership style. Commitment; Ensure leadership commitment is visible.

Response; Respond to feedback and nominations.

Authenticity; Recognise authentic contributions.

Appreciate ; Meaningfully appreciate commitment.

Results

• Efficiency: 1 person manages it.• 2000 recognitions per month.• 70% of employees interact each month.• Desired culture shift unfolding.• Business results = ROI.• Competitor imitation appearing

Thanks for your valuable time and courteous attention.

www.virtualworks.co.za