employee experience - kennedyfitch · 3. building an ex-centric organization requires a complete...

Employee ExperienceHow to Build an EX-Centric Organization

Sections

1. Executive Summary 3 1.1 The Customer and Employee Experience 3 1.2 What is the Business Case 4 1.3 WhatisthedifferencebetweenEngagement&ExployeeExperience 4 1.4 HowtobuildanEX-CentricOrganization 6 1.5 Highlights 7 1.6 SampleofEXPioneerBusinessCases 8

2. Full Report - Results of our Global EX Study 11 2.1 Howwesetupourstudy 11 2.2 WhatcompaniestoldusaboutthecurrentandfutureimportanceofEX 11 2.3 WhatcompaniessayabouthowtheycreateEX-CentricOrganizations 12 2.4 HowcompaniesdefineEX 13 2.5 HowcompaniesaregatheringEXinsights 14 2.6 InsightsaboutbuildingEX 15 2.7 DigitalPeopleStrategy 15 2.8 ChangesfortheorganizationandHR 17 2.9 BusinessImpact 18

3. How to build an EX-Centric Organization & The EX Playbook 19 3.1 ShiftMindset 19 3.2 DeepListening 20 3.3 AnalyzeInsights 21 3.4 CreatetheEXEperience-ThePlaybook 21 3.5 Designthepeoplestrategyandcapabilities 25 3.6 PracticeandImplement 26

4. EX Pioneers tell their story 27 4.1 Airbnb 27 4.2 ING 29 4.3 Maxis 31 4.4 LearnVest 33 4.5 ABNAMRO 35 4.6 GE 37 4.7 IBM 39 4.8 WFP 41

5. Final Thoughts 43

How to Build an EX-Centric OrganizationOursurveyof250+companiesandresearchonEXPioneers,revealaclearbusinesscasetotransformingyourbusiness,designedaroundyourcustomersandworkforce.

IntroductionDisruptiveforcesintechnology,demographicsandsciencehavechangedthenatureofworkandshiftedthepowertoconsumersandemployees.OrganizationsthatsuccessfullytransformaroundtheUserExperience–forbothCustomers(CX)andEmployees(EX)-willseeabovemarketgrowth,agilityandinnovation.ThisreportisorganizedtohelpyoubuildanEX-Centricorganizationwhereyouwork.

• Exploreourinfographicresults• Watchourvideo• SeeourEX/CXResourcesPage&

registerforaworkshop• AskforhelpincreatingEXwhere

youwork

1. Executive Summary Business case and model for EX-Centric Organizations

1.1. The Customer and Employee Experience

Wehaveseenbreakthroughperformanceincompaniesinrecentyearsthathavere-builtontheconceptofCustomerExperience(CX).Analyticsandmobiletechnologyhaveprovidedorganizationswithdeeperinsightsintowhatdrivesbehavior–whatattractscustomers,whatmakesthemreturn,whatmakesthembuyhighermarginproducts,andmostimportantly,whatmakesthemwanttopromotethecompany’sproducts.

MultiplestudiesshowthatCX-Centriccompaniesseesignificantgrowthvs.thecompetition,includingresearchthatshowsorganizationswithhighNPSratingsgrowattwicetherateoftheirpeers.

IfthisCXdataistrue,doesthesameapplytoEmployeeExperience(EX)?Businessleadersshouldbeaskingthemselvesthreequestions:

• WhatisthecorrelationbetweenbusinessresultsandEmployeeExperience(EX)?• HowisEXdifferentfromEngagement(whichissteadilydeclining)?• WhatdoesittaketoweaveEXintothefabricofanorganization?Isthereacommon‘EXPlaybook’thatcanbe

successfullyappliedinavarietyofbusinesssituations?

Toanswerthesequestions,KennedyFitchlaunchedaglobalstudytounderstandhowcompaniesareapproachingtheEX.Over250companiesworldwiderespondedtoourrecentonlinesurvey.FouroutoffivesaidEXisveryimportantandnineoutof10saiditwouldbecomemoreimportantinthenext1-2years.Onlyonein10,however,felttheircompanyhadmadesignificantprogressdevelopingEX.AndmanyreportedthatlackofinternalEXexpertiseisabigproblem.

WeinterviewedanotherselectgroupofcompaniesthatarefurtheralongintheEXjourney,includingGEandAirbnb;werefertothemas“EXPioneers”throughoutthestudy.Wealsolookedatcurrentpublications–booksandinternetarticles–toseewhatexistingresearchcouldtellus.

Tostart,wefoundthefollowinganswerstothethreequestionsmentionedabove:

1. ThereisaclearbusinesscaseandacorrelationbetweenEXandbusinessresults.2. EngagementandEXcomefromtwodifferentworlds-theymeasurequitedifferentthings,comefromdifferent

sourcesandhavewidelydifferentapplications.3. BuildinganEX-CentricorganizationrequiresacompleteTransformationinthewayofthinkingandoperating.

MostcompaniesareintheearlystagesoflearningwhatEXisandfewunderstandwhatisrequiredforimplementation.

WhatwefoundinourresearchmakesusbelievethatthemovementtodesignCXandEXaspartofaDisruptiveBusinessTransformationisoneofthemostrevolutionaryandimpactfulactionsacompanycantake.Let’sdiveabitdeeperintoeachofthethreequestions.

1. Executive Summary

1.2. What is the EX Business Case?

Research1donerecentlybyJacobMorganfoundthefollowingcomparisonsofEXvs.non-EXcompanies:

• EXcompaniesare4.5xmorefrequentlylistedonMostInnovativeCompanieslistsbyFastCompany,BostonConsultingandForbes,thannon-EXcompanies

• 6xmorefrequentlylistedonGlassdoor’sBestPlacestoWork,Fortune’s100BestCompaniesforMillennialsandLinkedIn’sMostInDemandEmployers

• 3xmorefrequentlylistedonBrandZandForbes’“TopBrandValue”companies• 40xmorefrequentlyonthelistofExponentialOrganizations(companieswhoseimpactisdisproportionatelylarge

–10xlarger-vs.otherorganizations)• 4.4xAverageProfitvs.non-EXcompanies• 2.9xAverageRevenueperemployeevs.non-EXcompanies• 4.3xProfitabilityvs.non-EXcompanies

TheshifttoEXisrootedinasilentrevolutiontakingplaceinorganizationsacrosstheworldascompaniestransitionfromtreatinghumansasassetsor“capital”(Engagement)totreatingthemashumanbeings(EmployeeExperience);fromforcingthemtosubmittoandworkwithincertainprocessesandnorms(managingassets)tounderstandingthemandhowtheyworkbestanddesigningsolutionsaroundtheirneeds(individualization).

TomFriedman,inarecentarticlesuccinctlydescribeshowtechnologyismakingahugeimpactasworkisbeingdisconnectedfromjobs,andjobsandworkarebeingdisconnectedfromcompanies,whichareincreasinglybecomingplatforms(movingfrom“owning”employeesto“havingaccess”tocapabilities).Thismajorshiftfromthetraditionalideaof‘Weowntalent’,asreflectedintheconceptsof“HumanCapital”’and“TalentManagement”to:“Wecreateanattractiveplatformforyoutolearnanddoyourbestwork.”

EXandCXcompaniescreateplatformsforEmployeesandCustomerstoindividuallyexperiencetheirorganization.Theorganizationsthatsuccessfullydothiswillbethewinnersasthedisruptiveforceoftechnologycontinuestoshiftthebalanceofpowerfromcompaniestobothconsumersandemployees.

1.3. What is the difference between Engagement and EX?

EngagementandEXcomefromtwodifferentuniverses.Engagementsprangoutoftheeraoftop-down,commandandcontrolmanagementwhenmanagementwantedtoknowifemployeeswerecontentwithcurrentdecisionsandpractices.Engagementsurveysessentiallyask:“Here’swhatwe’vedecidedtodo,howhappyareyouwiththesedecisions?”

Engagementsurveyshaveoftenbeenlonglistsofthingsmanagementdecidedtoask,withaquantitativerating.Intheend,companieswere‘guessing’iftheywereaskingtherightquestions(whyelseask80-90questions?).Moreover,LeadershipTeamswouldonlyrunthesurveysevery1or2yearsatmost,andifitwasa‘BadYear’theywouldcancelthesurveybecause‘Wealreadyknowpeopleareupset.’Imagineaskingyourcustomersforinputonceeveryyearortwo,andonlywhenyouknowthey’rehappy.

Multiplestudiesfromleadingengagementresearchcompanies(Gallup,AonHewitt,Hay,Mercer,WillisTowersWatson,Bersin)allconfirmfallingengagementscoresoverseveraldecades.Soitseemsthatfocusingonengagementdoesnotdeliveranybusinessvalue.

1) “The Employee Experience Advantage: How to Win the War for Talent by Giving Employees the Workspace They Want, They Tools They Need and Culture They Can Celebrate”, Chapters 11 and 12, 2017.

EXandEngagementarebuiltdifferently.EXisbuiltonDesignThinking–whereorganizationswatchandobserveandcontinuallyaskemployeesopen-endedqualitativequestionse.g.“Whatmattersmosttoyou?”ratherthanguessing“DoesXmattermoreordoesY?”,whenitmightactuallybe“noneoftheabove”.EXPioneersbuildandtestprototypesofEmployeeJourneys.AndsimilartoCX,alsoEXputstheNetPromoterScoreinthemix.

Designthinkingplacestheissuesoftheemployeeatthecenteroftheproblem-solvingprocessandanalyzesissuesandsolutionsfromherpointofview,nottheorganization’s.EXPioneersthenbuildandtestprototypesofEmployeeJourneystoremovepainpointsandelevatetheexperience.Tomeasuretheirsuccess,EXPioneersusebusiness-centricmetricstomeasuretheirsuccess,suchasNetPromoterScore,EBIT,Profitability,Growth,andothers.Theyavoidcreatingmetricsthatarenottiedtobusinessoutcomes.

EXhasadifferentgoal.JacobMorganrelateshowEXis“reallyaboutbuildingthatconnectionandrelationshipwithyouremployeesand,inasense,givingthematypeofownershiptoshapetheorganizationtheyareworkingfor.”EXgetsinputonwhatmatterstoemployeesfromavarietyofsourcesoutsideofsurveysincludingface-to-faceinterviews,focusgroups,hackathons,instantfeedbackapps,andanalytics.Togetherthesepaintapictureofwhatemployeesfeelmoststronglyabout,withemotionbeingapowerfulwindowintobehavior.

Fig. 1 - Engagement and EX comparison

PaulDavies,HeadofEXatGEdefinesEXas“Enablingourpeopletodothebestworkoftheirlivesthroughmomentsthatmatter”.Cisco,DeloitteandLinkedInhavesimilardefinitions.GEleveragesconceptssuchaspersonas,designthinking,andstoryboardsasitcuratesEX.Paulsays,“Wedon’tgoanhourwithoutusingoneofthese.Weaskouremployees,ourpeopleleadersandourcandidateswhatmattersmosttothem,welistentotheirstories,listeningespeciallyforemotions.”

MarkLevy,HeadofEXatAirbnbsince2013,saystheyborrowedtheideafromDisneythat‘everyframematters’intellingemployeestories.CiscoholdsregularhackathonswhereemployeesgiveinputonPeopleprocesses.

Usingalltheseongoinginsights,EXinvolvesemployeesinthedesignandshapeofthecompany,helpsidentifyorganizationalstrengths,anddiscoversthesituationsinwhichpeoplelearnandperformbest.Theseinsightsarebeingusedtorestructure(removesilo’s,layersandtitles),trimprocesses,turnrulesintoemployeejudgment.Allofwhichhelpscompaniesunlocknewpathstofastergrowth,profitabilityandinnovation.

Context:

Foundations:

Format:

Frequency:

Results:

Engagement

“Here’swhatwedid,howhappyareyou?”(top-down)

1920’sindustrialdesign-“Whatworksbesteverywhere”

QuantitativeMultipleChoice,80-100questions,orsubsetinPulse

Onceevery1-2years,reporttoSeniorLeadershipTeam

Overallresultsfalling

Employee Experience

“Howcanyoudoyourbestwork&connectwithyourpurpose?”(bottom-up)

DesignThinkingAnalytics-“Whatworksbesthere?”

Qualitative,afewopen-endedquestions

Continuousfeedback,reporttolocalteam,team leader

Tiedtogrowth&performance

1.4. How to build an EX-Centric Organization?

OurstudyofexistingbooksandpublicationsdidnotyieldastandarddefinitionofEmployeeExperience.NordiditrevealanoutlineofthestepsfordesigningtheEmployeeExperience–aPlaybook.Mostimportantly,wedidn’tfindresearchthatmatchedthedepthoftheTransformationthatEXpioneerssayisrequiredtobecomean‘EX-CentricOrganization’.

Ourprimaryresearchthereforebecameaquestto1)findacommondefinition,2)discoveranEXPlaybook,and3)understandthekindofTransformationrequired.ThroughinterviewswithmoreexperiencedEXPioneers,wefoundthatwhiletherearesomecommonelementsindesigningEX,theparticularingredientsarerefreshinglyuniquetotheircompanies,becauseeverycultureandbusinesscontextisunique.InDesigningEX,itisnotthe“What”thatmatters(e.g.tickingtheboxesof17or21preciseEXelements),itisratherthe“How”.Youneedtolearntocook,butthebestchefsgobytaste,ratherthanbyrecipe.EXdesignisuniquetoeachorganization.

Thisisquitearadicaldeparturefromthepastwhenlargeconsultanciesscannedhundredsofcompaniestodistilltheexactingredientsof‘goodTalentManagement’or‘Leadership’,andsoldassessmentsandmaturitymodels.

UniqueEXdesignmeansalsothatthedefinitionofEXvariesfromcompanytocompany.MostorganizationslookholisticallyatWorkforce(FTE’saswellascontract,temporaryorAgileworkers).Theylookateveryonewhointeractswiththecompanyfromrecruitstoalumni.Mostdefinitionstalkaboutholisticend-to-endjourneysanddesigningthebestpossibleexperiencesforemployees.Themainpointisthatorganizationsaredesigningexperiencesaroundtheemployeeratherthanmakingemployeesfittotheorganization.

WeaskedcompaniesaboutthemotivesandchallengestheyhaveinbuildingEX.Our250+SurveyRespondentslistedtheirtopthreemostimportantreasonsforbuildingEX:

1. Businessgrowth2. Engagement3. Creatingcompetitiveadvantage

They listed their top four challenges as:

1. Transforming the Culture–Giventheradicalshifttoanoutside-in,bottom-upculturerequiredforsuccessfulEX,companiesrecognizetheneedforanequallyradicaltransformation.

2. Leadership mindset–EXpioneersemphasizedthattheCEOandleadersatalllevelmustbeonboardforEXtosucceed

3. Complex Organization–SimplificationisoneofthekeystomakingEXwork4. Lack of internal expertise in building the Employee Experience–giventhatmostcompanieshaveneverbuiltEX,

thisisnotasurprise.EXPioneersreportusingMarketing,Design,Facilitiesexperts.

EX Pioneers cite the top four keys to success

1. Top leadership and CEO support–EXtouchessomanypartsoftheorganization,itneedssponsorshipandcomplete support at the top

2. The goal is to become a Disruptor–EXPioneersareconvincedEXisawaytobecomedisruptiveandgaincompetitiveadvantage

3. EX is the centerpiece of Cultural Transformation –EXrequiresacompletetransformationinthewayofthinkingandworking

4. Involve many functions outside HR–EXisneveranHR-onlyeffort.EXPioneerstypicallycombineHRwithMarketing,IT,Facilities,etc.

Fig. 2 – Key elements cited by EX Pioneers in building EX-Centric Organizations

1.5. Highlights

HereareafewhighlightsofwhatwelearnedfromourinterviewswithEXPioneers:

• EXPioneers,e.g.ING,ABNAMRO,oftenstartwithCX.CustomersareagoodplacetoengagetheCEOandseniorleadership,whothenpivotmorenaturallytoseeingemployeesascustomers(abigmindsetchange!),understandingwhatismeantby‘Experience’,andlookingmoreholisticallyat‘Workforce’

• EXPioneersbuildabroadcoalitionofeveryonewhotouchesemployeesandcultureandwhomayhaveCXexpertisee.g.Marketing,Branding,Analytics,RealEstate,IT,Design,etc.ThiscoalitionensuresEXandCXarealignedandthatEXisnotanHR-onlyfocus(AirBnB,ING,GE,ABNAmroareexamples).

• EXPioneersmakeCXandEXthecenterpieceoftheirCulturalTransformationastheydesigneverythingaroundcustomerandemployeedrivers.Thishashugeimpactonredesignofeverythingfromworkspace(Maxis,GE,Samsung,SchneiderElectricandmanyothers),todigitalspace(customappsatGE,ABNAMRO,Maxis,ING,etc.),andtofindingswaystosimplify/improveprocessesandgivejudgmentanddecision-makingbacktoemployees,(hackathonsatCisco,LinkedIn,andFacebook).

• CEO’sofEXPioneersoftenhaveastatedgoaltobecomeDisruptersasthetargetoutcomeoftheirTransformation.RalphHamersatINGandMortenLundalatMaxisaretwoCEO’swhomade‘disruption’theirobjective.

• CEO’softhemoreprogressiveandsuccessfulEXPioneers,e.g.AdobeandAirbnb,promoteEXandCXbecauseofthepotentialforstrongbusinessoutcomes.EXPioneersemphasizethatitisanon-starteriftheCEOisn’tintheleadanddrivingkeychanges.CompaniesweinterviewedwhostruggledtoimplementEXandCXdidsobecausetheylackedCEOsupportandsponsorship.

• SuccessfulEXcompaniesdesignaroundcustomerandworkforce,andtransformtoout-sidein,bottom-upthinking.Theybecomemoreagileandinnovative.Theyadaptandsimplifyprocessesanddecision-makinginresponsetonewcustomerandemployeeinsights.EXandCXPioneersbecomeflatter,lesshierarchical.

• EXpioneerse.g.Google,LinkedIn,INGandIntelborrowheavilyfromDesignThinking.Theybeginbylisteningonmultiplechannels:observing,interviewing,usingfeedbacktoolsandhackathons.Then,theyidentifyholisticjourneyswiththehelpofemployees,listeningforfeelingsandemotion,developingpersonas,anddesigningexperiences.Everydevelopmentisvetted,testedandprototyped,andultimatelyitisfoldedintoaDigitalPeopleStrategy(seeFigure9).

• EX(justlikeCX)isdesignedaroundaseriesofquestionstogetatfeelingsandbehaviorsthatbuildonpredictivedata(e.g.“Whydoourtopperformersjoinorleave?Whydoourexpatsleave?Whydosometeamsoutperformtherest?”).

How can my company be successful?

• EXPioneersareconstantlytestingwhattheyrolloutandarequicktoimplementfeedback.Justlikeanyinnovation,thenewappsorprogramsarerigorouslyredesignedmanytimes.

• EXandCXcompaniesare“insanely”data-driven;theyborrow,buyorbuildanalyticscapabilitiestocollectandinterpretdata.Theybuildseamlessandborderlessconnectionsbetweendifferentdata-intensivepartsofthecompany,andtheyseektointegrateandconnectawidevarietyofdatapoints

• Hotnewrole-ManyEXPioneershavecreatedanewrole,the‘HeadofEX’.Thereareonlyabout100HeadsofEXtoday,andnewHeadofEXpositionsarebeingcreatedallthetime.Somereportintonon-HRrolese.g.DigitalTransformation(Schneider-Electric,ING).SomeareEngagementmanagerswithanewtitleandre-purposedjobdescription.Insomecases,likeAirbnbandAdobe,theCHROroleisbeingreplacedbytheHeadofEmployeeExperience.Webelievethatthisisthewayofthefuture.

• ThelinesdisappearbetweenHRandMarketingastheystartsharingacommonresponsibilityforboththeirinternalandexternalbrand(AdobeandothershaveonepersonwhoisHeadofEXandCX,replacingtheCHRO).Butitdoesn’tstopthere–EXPioneershaveMarketing,Design,FacilitiesManagementandAnalyticsrolesintheirEXTeams.

• Talent,Learning,Recruiting,etc.realigntoreflectholisticjourneys.Keyprocessesalsoareradicallyredesignede.g.PerformanceManagement(moreongoingdevelopmentfocus),Learning(bite-sized,Just-in-time),etc.

1.6. Sample of EX Pioneer Business cases

InourinterviewswithEXPioneers,wediscoveredthatcompanieshavemanydifferentbusinesscasesforinvestingintheEmployeeExperience.Hereareafewprimeexamplesfromcompaniesweinterviewed:

• ScalingCultureforgrowth-AirbnbCEOBrianCheskywasadamantaboutscalingtheirCulture.In2016,whennewEXHeadMarkLevybroughttogetherthegroupstouchingCulture(Recruiting,Events,Facilities,RealEstate,Design,etc.)tocreateanEnd-to-Endjourneyforemployeesastheyhaddoneforcustomers,Brianwasecstaticbecause‘itwasn’tHR!’AirbnbhasusedEXtochangethewaytheyinterview,tojudgewhethersomeoneisjoiningfortherightreason,assessinghowtheyfitwithAirbnbvalues,andtheirapproachtolifeandwork.

• RegainMarketShareandCompetitiveAdvantage-Maxiswasthelargest,mostsuccessfulTelecomcompanyinMalaysiabutwasindangeroflosingtheirmarketpositiontodisruptivestartupswithleaner,betterbusinessmodels.TheyusedEXasaprimarywaytoaccelerategrowthandbuildtheirwaybacktocompetitiveadvantage.Alongtheway,Maxisflattenedfrom51jobgradesto4,removingtitlesalongtheway.Maxisnotonlyrestructuredtheorgchart,itrestructuredtheofficespace:

• Integrate2distinctCultures-StartupLearnVest,adisruptorinthefinancialplanningspace,helpsthousandsofhouseholdstakecontroloftheirmoneybyjoiningpowerfultechnologywithaffordable,accessibleandunbiasedfinancialadvice.Itwasboughtby140yearoldNorthwesternMutualin2015,whosawtheEXconceptinLearnVestasthekeydifferentiatorforgrowingandtransformingtheirbusiness..

• DigitalStrategy–INGbegantheirjourneywithCEORalphHamersdeclaringtohisbusinessleaders:“BecomeDisruptersbeforesomeonedisruptsyou”.INGdevelopedaclearDigitalStrategyfortheirCXandsawtheneedtodothesamewiththeirEmployeestocompletetheirTransformation.EXgreworganicallywithMarketingandProductManagementandstillsitsindifferentpartsofthebusinessoutsideHR.

• RaiseProductivity-GErecognizedthatEXwasapathwaytoimprovingproductivityandgettingthebestoutoftheirpeople.PaulDavies,GE’sHeadofEX,spenthisfirst100daysvisitingothercompaniese.g.Airbnb,Disney,DeloitteandBrooklynNavyYards,andsawthateveryoneisdoingEXdifferently,accordingtowhatmakessenseforthem.AtGE,theyfocusedondesigningthedigitalandphysicalspaceaswellastheCulture,putting

theemployeesatthecenterofwhatthecompanydoes.PaulhasasmallteamandleveragesteamsfromDigitalTechnologyandWorkplaceSolutionsaswellasateamofdatascientists.

• Restructureundernewbusinessmodel–ABNAMRO’sHeadofEX,FrankvandenBrinksaysEXandDigitalHRarekeystosuccessintheir4‘MustWinBattles’.FrankandhisteamhaveusedinsightsfromEXandCXtodoawaywithtraditionalHRandbuildanewoperatingmodel,basedonthefivepersonasandtheEmployeeJourneystheydesigned.

• PersonalizationatScale–TomStachuraisIBM’sHeadofTalentSolutionsandPeopleAnalytics.Forthepasttwoyears,Tomhasshapedastrategywhichusesamixofadvancedanalytics,talent,designandfunctionalprofessionals’expertisetohelpbuildinsightsaroundthreemainpersonas(IBMer,ManagerandUplineLeader)todrive‘PersonalizationatScale’.Thisstrategyevolvedfromonequestion,‘HowdowegivethousandsofmanagersvisibilityintoinsightsthatwillleadtobetterteamoutcomesandalignwithIBM’senterprisePeopleStrategy?

• StartwithWhy–TheWorldFoodProgramistheUN’sagencyseekingtorelievehungerfortensofmillionofpeople.AsCHRO,PreranaIssarworkswiththousandsofworkers,manyofthemsinglemothers,wholeavehomeformonthsatatimetogointowarzones.Wherevershegoes,shemakesitapointtoask“WhydidyoujointheWFP?”Preranaemphasizesthatitistheroleofthemanagertohelpre-connectpeopletotheirpurposeandamplifythegoodreasonswhytheycometowork.

Fig. 3 – Sample of EX business cases from our interviews

1. Executive Summary1. Executive Summary

WhybuildEX?

CEOofAirbnbinsistedonscalingculture,buildingEXenabledthemtodoit.

explaybookplaybook

Scaleculture

Regainmarketshare&buildacompetitiveadvantage

3yearsagoMaxis'marketsharewasindecline,afterrestructuringtheirorganizationaroundEXtheyareout-performingallcompetitors.

Buildadigitalstrategy

INGfirstdevelopedtheirDSforcustomersandthenextendedittoemployees.

GErecognizedthatEXisthebestwaytoenablealltodothebestworkoftheirlives.

Increaseproductivity

ABNAmrousesinsightsfromEXandCXtoradicallychangetheirstructureandprocessesandbecomemoreresponsivetothemarket.

TransformHR

Start-upLearnVestutilizedEXtointegrateitsandNorthwesternMutual'sculturesduringitsacquisition.

Integrate2distinctcultures

whatarethestepstobuildEX?

usemulti-

channel

listening

IDholistic

journeys

listenfor

emotion

create

personas

design

experiences

testand

prototype

launchdigital

peoplestrategy

Howcanmycompanybesuccessful?

leadershipsupport

culturaltransformation

becomeadisruptor

involvemarketing,

IT,analytics

howdoesEXimpactthebusiness?

leverage

organizational

strengths

gaincompetitive

advantage

integrated

CXandEX

cohesivedigital

strategy

Whatjourneysaremostfrequentlydesigned?

recruiting on-boarding development leaving promotion mobilityandex-pat

howwillmycompanychangewithEX?

MoreintegratedMoreintegratedFlatterFlatter MoreagilityMoreagilityCHROCHROorganization,

andless

hierarchical

HR,facilities,design,

IT,andmarketing

departments

amongteam

formationand

reformation

roletransfers

intoHeadof

EXrole

Personalizeatscale

IBM'sdataanalyticsandpersonasguidemanagerstomakebetterdecisionsforemployees.

WorldFoodProgramseektounderstandvolunteers'motivationinordertomaximizeworld-wideimpact.

Startwithwhy

ThefollowingReportgivesyouaPlaybookforbuildinganEX-CentricOrganization,helpyouunderstandkeyconceptsandofferpracticalexamplesfrom8EXPioneers.

Employee Experience

How267companiesthinkaboutanduseEX

Fig. 4 – Highlights of our global EX Study

2. Full Report

EmployeeExperienceHow267companiesthinkaboutanduseEX

Wegatheredinsightsfrom

267companiesworld-

widetodiscoverhowthey

areutilizingEX.

EXaroundtheworld

501-1000

1001-5000

5001-10000

10001-50000

50000+

0 50 100

Wespokewithcompaniesofallsizes.

Whatdidtheysay?

78%respondedthatbuildingEXis

important,veryimportant,or

extremelyimportantfortheir

organization.

89%reportedthatEXwillincreasein

importancewithintheirorganization

inthenext1-2years.

Businessgrowth

Competitiveadvantage

The3highestratedreasonswhyEX

iscriticaltotheirorganizationsare:Only14%

statedthattheirdigitalpeople

strategyandEXarefullyintegrated.

dataofferingsarefeedbackapps

(24%),feedbackappswithAI

(6%),andSaaStools(18%).

Mostpopular

reportsto

TalentCOE

Engagement

development

0 50 100

EXLeadershipOrg

#ofemployees

Engagement

2. Full ReportResults of our Global EX Study

Detailedfindingsfromoursurveyof250+companiesandinterviewswithEXPioneers.

2.1. How we set up our study

BecausetheconceptandpracticeofEXaresonew,wedividedourresearchtargetaudienceinto2groups:1)allcompanies,regardlessofwhethertheyhavebegunthejourneytobuildEX,and2)“EXPioneers”whoarefurtheralongandcantellusmoreof‘howtheydidit’andwhatbusinessproblemsEXdesignhelpedtosolve.

Group1–HRleadersof257globalcompaniesrespondedtoouronlinesurvey,acrossallgeographiesandacrossindustries.WeaskedthisgrouptoindicatehowimportantEXisandwhetheritsimportanceisincreasing.WeaskedthemtogiveusanideaofhowtheythinkaboutEXchallenges,waysofgatheringfeedback,andtheimpactonDigitalPeopleStrategyandorganizatione.g.newHRroles.

Group2–asmallsetofcompaniesofvarioussizesandindustrieswherewefoundthetitle‘HeadofEmployeeExperience’orsimilar.Wefeltthistitleindicatedthatthecompanyhadevolvedtoamoreadvancedstageofcommitment,thinking,anddesigncomparedtomostcompanies.Ofthisgroup,weselectedafewwithcompellingstoriestoshareinthisreport.WewereinterestedtounderstandwhytheyembarkedonthisjourneyofdevelopingEX,whatbusinessproblemstheysolved,howtheydidit(thekindofTransformationinvolvedandthestepstheyfollowed),whattheyfoundmostimpactful,andwhatadvicetheywouldgivetoothers.

EXPioneerswechosetofeatureinourresearchresultsare:

AirbnbINGMaxisLearnVestABNAMROGEIBMWFP

2.2. What companies told us about the current and future importance of EX

OurfirstsetofsurveyquestionssoughttounderstandhowimportantEmployeeExperienceistocompaniestoday.

Wefoundthat78%ofHRleadersbelievethatEXisimportantorveryimportanttotheirorganizationandthat89%believethatEXwillbecomemoreimportantinthenext1-2years.Theseresponsesareindependentofcompanysize–whethertheyhave500or50,000+employees.NocorrelationexistsbetweenlocationheadquartersandperceivedEXimportanceinthenext1-2years,evidencedbyap-valueof.92.Similarly,nocorrelationexistsbetweencompanysizeandEXimportanceinthenextonetotwoyears.Thisdisprovesassumptionsthat“onlybigcompaniescareaboutEX”or“onlyNorthAmericancompaniesarethinkingaboutEX.”

2. Full Report

WhilemanycompaniesstatetheimportanceofEX,relativelyfewhaveestablishedEXpractices.Only6%reported‘significantprogress’andonly15%haveadefinitionofEXfortheircompany.Manycompanieswehaveinterviewedinthepast3monthshavecitedEXashighontheir2018prioritiesandarediscussingplansforbuildingEXintheirglobalHRmeetings.

RespondentsrankedthemostimportantreasonsforbuildingEXasfollows:1. Businessgrowth2. Engagement3. Creatingcompetitiveadvantage4. Productivity5. Profitability6. SuccessfulBusinessTransformation7. BuildingaCustomer-centricHR

2.3. What companies say about how they create EX-Centric organizations

CompanieswhohavecreatedEX-CentricOrganizationssaythatcreatingEX/CXhasopenedupnewpathwaystoperformanceandthatthisisradicallydifferentfromanythingthey’veseeninthepast.ThemovetoEX/CXrepresentsthecomingtogetherofseveralkeyemergingelements:Digitalization,Analytics,DesignThinkingandBehavioralScience.InourresearchandinterviewswithEXleaders,herearethemostcommonkeyelementsofEX: • It starts with people: AllCX/EXdesignisconcernedwithpeopleashumanbeings,notasassetsorcapital.It

beginswithasking:Whatinsightscanwecreateaboutthesituationswherewedoourbestwork,howwelearn,howweinnovateandsolveproblems,howourworkbalanceswithourlifeoutsidework,etc.

• Complete Transformation: AllEXPioneersspeakofaradicalTransformationwherethereisacompletelynewmindsetandwayofdoingthings,shiftingtooutside-inthinking,andorganizationsdesignedaroundtheEmployee,mirroringwhatisbeingdoneforcustomers.

• Broad Target Audience:EXPioneersexploretheexperiencespeoplehavebothinsideandoutsidethecompany – boththosethatarehiredandthosethatarenot,thosethatarefulltimeemployeesand‘agiletalent’e.g.contractorpart-time,aswellasconsultants.Alumniarealsoincluded.

• Pay attention to journeys, not just touch points: EXlikeitstwin,CX,takesamoreholisticviewofalltheinteractionsor‘journeys’anemployeeorcustomerhaswithacompanyorbrand.Thesejourneysincludebutarenotlimitedto‘Momentsthatmatter’.Researchshowsthatcustomersmayscoretheoveralljourneysomewhatlowerthanindividualtouchpoints.

• Unique EX definition: EveryEXPioneerwespokewithhadtheirownuniquedefinitionforEmployeeExperience.GE’sHeadofEX,PaulDavies,definesitas“enablingourpeopletodothebestworkoftheirlivesthroughmomentsthatmatter”.Airbnb’sMarkLevydefinesEXas“understandingtheendtoendemployeejourney’.AsampleofotherEXdefinitionsisfoundbelow.

• Broad awareness:EXcompaniesrecognizethatpeople“bringtheirworkhomeandtheirhometowork”,thatemployeesarehavingbabies,aregrievinglostfamilymembers,andgoingthroughotherlifeexperienceswhiletheyexperiencework.Thisisleadingtonew,morehumanepoliciesandwaysofworking.

• Stages to design: Ratherthanaspecificrecipeorchecklist,EXPioneerswentthroughseveralstages,basedon DesignThinking,tobuildEX-CentricOrganizations,typically1)Multi-channellistening,2)Identifyholisticjourneys,3)Listenforemotion,4)Createpersonas,5)Designexperiences,6)Testandprototype,and7)CreateandlaunchDigitalPeopleStrategy.

2. Full Report

• Emotional Insights:Companieshistoricallygatheredquantitativedataonemployeesandcustomers.BothEXandCXseektounderstandthefeelingsoremotionsthatemployeesandcustomersexperienceintheirjourneys.Theseemotionsgivefarmoreinsightintobehaviorandperformancethantypicalquantitativeengagementmeasures.

• 3 key new Capabilities: ToeffectivelydesignEX-CentricOrganizations,peopleneedtohaveanunderstandingofandtheabilitytoapply1)DesignThinking,2)Cognitive and AdvancedAnalytics,and3)BehaviorScience–specifically,what intrinsically motivatespeople.

• New organization structure: EXPioneersAirbnb,Maxis,INGandABNAMROhavecompletelychangedthe orgstructureandworkingrelationshipforHRandotherfunctions.HRnowworkscloselywithorincludesDesign,Facilities,Branding,Digital/IT,Analytics,andcoordinateswithCX.TheclassicUlrichCoEmodelhasbeenreplaced.AtAdobe,AirbnbandABNAMRO,HRitselfhasbeenreplacedbyEXandallroleshavebeenreshapedandrepurposedaroundEXactivities

• Simplification and re-design of process and policy:EXPioneersshiftfromthinkinglike‘parents’totreatingemployeeslikeadults.Theysimplifyprocesses,letpeopleexercisejudgment,andradicallyre-designPerformanceManagement,Learning,etc.

• Physical/Virtual Space + Culture: SomeEXPioneersfollowthefindingsofJacobMorganwhosaysthatEXisthephysical/virtualspaceandtheculturewedesignaroundemployees.Whilethesemayhavesomeimportance,considerNGO’sandnon-profitfirmsthatareextremelypurpose-driven,oftenhaveverybasicspaceandlittleornotechnology(e.g.infieldoffices),yettheirpeoplecanbeveryinternallymotivatedandwillsaytheyhaveanamazingexperience.

• New KPI’s: MostoftheEXleadersweinterviewedstillwatchthedirectionofEngagementscores,butmosthavedevelopednewmeasuresdirectlylinkedtoEX,andmostpreferusingexistingbusinessperformanceindicators,suchasrevenue,EBIT,andmarketshare.

2.4. How companies define EX

Withinthe15%ofrespondentswhodohaveanEXdefinition,therearemanydefinitionsinuseandnotwoareexactlyalike.However,webelievetherearesomesimilarities.

Mostdefinitionsinvolvescalingdesignoftheorganizationaroundtheemployeetoensurethebestpossibleexperience.Someaddtothis,thattheirpurposeisto‘enablebestworkpossible’.Theyalsomentionedholisticjourneys,andprovidingexperiencesthatwouldincreaseinnovation,development,performanceandimprovethecustomerexperience.

HereisasampleofEXdefinitionscompaniessharedwithusinourstudy:

“Create a culture that attracts talent and retains highly engaged employees, which in return offer an extraordinary customer experience to our high end and highly demanding customers.”

“How the associate lives things in and outside the company.”

“In all we do, we start with people. Each moment that matters in an individual’s relation with the Group, from recruitment all the way to the exit dialog, is designed around our people – employees, managers and HR professionals – with ‘simplicity’ and ‘user-friendly’ as guiding stars.”

“A person’s feelings and responses based on their interactions with our organization during the entire journey.”“The way our people relate, connect, identify and interact with the organization leading to optimal engagement, collaboration, free flow of energy & ideas, high wellbeing, and a sense of purpose.”

“Creating a platform for personal development and creative self-expression.”

2. Full Report

Someofthethingswenotedarethatthedefinitionshavetodowithfeelings–howsomeoneconnectsemotionallywiththeiremployer.Theytalkaboutemployeesthewayyouwouldhopetohearthemtalkaboutcustomers,andthethoughtsarequalitativeratherthannumerical.Thisissignificantasunderstandingemotionalresponsesiskeytopredictingbehavior.

2.5. How companies are gathering EX insights

DataanalyticsandfeedbacktoolsarebecomingincreasinglypopularwithintheHRtechnologyspace.Despitethetechnologicaladvanceshowever,itisinterestingtonotethatmanycompaniesrelyontraditionalmethodsoffeedbacksuchassurveysandone-on-oneconversations.Whenaskedabouthowcompaniesgetinputtounderstandtheemployeeexperience,theylistedthefollowingfeedbackmethods:1. Surveys2. Face-to-faceinterviews3. FocusGroups4. Feedbackapps5. Hackathons

Althoughsomecompaniesreportedinnovativewaystogatherfeedback,suchashostinghackathonsorbreakathons,thefirstthreeresponsesarefourtofivetimesmorecommonthanthelasttwo.InourinterviewswithEXpioneers,wefoundthatallofthemusemultiplechannelsormorethanoneofthepreviouslymentionedmeansoffeedback.

EXPioneerswespoketoalsoinvesttimeobservingpeoplefirsthandandinterviewingthemindifferentjourneyse.g.,interviewingcandidatesabouttheirrecruitingexperience,talkingwithrecenthiresabouton-boarding,andaskingexperiencedemployeesaboutlearning,development,andtheiremployee-managerrelationships.

LeadingEXcompanieshaveintegratednewstrategiestogatheremployeefeedback.Someofmethodstheyreportedusingincluded:1. Designthinkingmethodology2. Valuestreammappings3. Kaizensessions4. Yammerandotheronlinecommunicationtools5. Glassdoor6. Custom-madeonlinetools Thefirstthreemethodsstillrelyonhumanvs.digitalinteraction.Yet,everyiteminthelistabovehasonethingincommon:theyrelyoncontinuouscollectionofdatasoleaderscanmakesmall,continuousimprovements.Thisway,leadersarealwaysconnectedtoemployees,andcanbetterrespondtotheirpainpoints.

WhenweaskedhowcompaniesmeasurethesuccessofEX,76%ofrespondentssaytheyuse‘engagement’asakeyindicator.Only26%useNetPromoterScore.OftheEXPioneersweinterviewed,mostuseengagementasanindicatorbuttheypreferotherKPI’ssuchasNPSandretentionoftoptalent,EBIT,netprofit,ormarketshare.ThissuggeststhatEXisemergingasastrategytoachievebusinessoutcomesinmorematurecompanies.

2. Full Report

2.6. Insights about building EX

WeaskedcompaniesinoursurveyabouttheinsightstheyhadgainedaboutbuildingEX.Herearesomeoftheviewstheyshared:

“Put the employee at the center of your design thinking.”

“Changing the mindset driven by company culture is the biggest challenge.”

“The ‘War’ for talent starts with employee experience creation. Technological, environmental, and cultural changes need to be addressed with a consistent value proposition for employees and candidates.”

“The fact that happy employees make happy customers.”

“It’s not just about driving engagement through short-term initiatives.”

“We realized that without a structured employee experience evaluation we lack the conditions to ensure our employees ‘ success.”

“Technology cannot substitute the human touch. No matter how digital we become, the human element is still vital.”

SurveyrespondentstoldushowtheyrankthemostchallengingissuestheyfacewhilebuildingEX:

1. TransformingtheCulture–giventheradicalshifttoanoutside-in,bottom-upculturerequiredforsuccessfulEX,companieswillneedanequallyradicaltransformation.

2. Leadershipmindset–EXpioneersemphasizedthattheCEOandleadersatalllevelsmustbeonboardforEXtosucceed

3. ComplexOrganization–simplificationisoneofthekeystomakingEXwork4. LackofinternalexpertiseinbuildingtheEmployeeExperience–giventhatmostcompanieshaveneverbuiltEX,

thisisnotasurprise.EXPioneersreportbuildingcoalitionsandworkingwithinternalMarketing,Design,andFacilitiesexperts,oftenmakingthempermanentteammembers.

5. LimitedBudget–WeencourageorganizationswhowanttomoveforwardtopilotandtestEXonasmallerscaleandtolookatthenumerousexamplesbothhereinthisreport,andinthemarket,forhowtodoEXonalimitedbudget.

6. Other–Mostcommentsreflectedthesamethoughtsofthefirstfivechallenges.Onementionedthe‘difficultyinconvincingtopmanagementthatemployeesareasimportantascustomers’.

ThesechallengesmatchcloselythetopissuesweheardfromtheEXpioneersweinterviewed.EachonediscussedhowcriticalundertakingaculturaltransformationistobuildEX.Mostorganizationsarehierarchical,top-down,andone-wayincommunicationsanddecision-making,whichdoesnotfosterastrongEXimplementationandrequiresimmenseefforttochange.

2.7. Digital People Strategy

Thereisalotofconfusionovertheterms‘Digitization’and‘Digitalization’.DigitizationistheactoftakingsomethinganalogandcreatinganE-versionthatisnotnecessarilyinteractive.Itisuploadingyourpaperrecordstoanonlinesystem,oftenforcompliancereasonsortomanagecompensation,headcount,etc.HRITsittingonSaaSisDigitization.

Digitalizationontheotherhandisacompletelynewbusinessmodelbuiltondigitalinteraction–Friedman’s‘Platform’forwork.Anditiscompletelymobile.Withthecurrentpercentof‘Agile’(nonFTE)workforceat30-40% and expected

2. Full Report

torise,companieswillhaveevenmorereasontobuildaDigitalPeopleStrategytoprovideadigitalplatformforEX.

Inourstudy,wefoundthatEXandCXarecentraltoacompany’sDigitalStrategysincetheyessentiallydefinewhattheneworganizationlookslikeandinformhowitoperates.INGisagoodexampleofacompanythatembarkedoncreatingaDigitalStrategyandthenplacedCXandEXatthecenterofwhattheyimplemented.

WeaskedHRleadersinourstudyhowEXfitswithintheirDigitalPeopleStrategy.OnlyasmallpercentagehaveEXthatisfullintegratedwiththeirDigitalPeopleStrategy.Hereishowsurveyparticipantsrespondedtothequestion‘HowdoesEXfitwithinyourDigitalPeopleStrategy?:

• 29%‘WedonothaveaDigitalPeopleStrategy’• 26%‘Itisnotyetintegrated’• 25%‘Wearestilldetermininghowitfits’• 13%‘ItisfullyintegratedandcentraltoourDigitalPeopleStrategy’• 7%‘Notatall’

RespondentsratedtheimpactandinfluenceofEXontheiroverallorganizationandpeoplestrategy.45%ratedtheimpactas‘High’or‘Veryhigh.’Thatpercentroseto87%,whenmatchedwiththosewhohaveEXthatis‘fullyintegratedandcentraltoourDigitalPeopleStrategy’.

WeaskedrespondentstotellusabouttheDigitalofferingstheyhavebuiltoracquiredtosupportEXintheirorganization.Digitaltoolsprovidepowerfulinsightintoanemployee’sexperiencewhenproperlyutilized.Thebestdigitaltoolscreateastrongconnectionbetweenemployeesandleaders,developgreaterunderstanding,andofferfast,tailoredemployeesolutions.Thetoolscanbecategorizedin4ways,withthemostcommonanswerslistedunderneath:

Fig. 5 – Digital Tools

2. Full Report

Feedback Apps

• Yammer• CultureAmp• Pulsesurvey• PEARLapp• Recognitionand

rewardapp

Feedback Apps with AI

• Netguru• Feedme• Impraise• TINYPulse• Perkfec• Custom

Feedback other

• Workday• Globofirze• CEB• Successfactor• Concludis• ServiceNow• CSOD

Feedback

• FacebookatWork• Bedderx• Company-specific

conversationwall

Mostofusfeelsomekindofdreadaswegofromsleek,easytouseconsumer-gradeappstothetoolsweuseintheworkplace.EXPioneerse.g.GE,Maxis,LearnVest,ABNAMRO,IBM,havedevelopedtheirownapps.Themajorityoftheseappsfallinto2categories:1)toolsthatprovideinformationtohelppeopleconnectwithothersandlearnaboutthecompanyastheyonboard,and2)toolsthatgivepeoplefrequentandongoingfeedbackondevelopmentandperformance,withanemphasisonhowtoimprovethenexttime,asopposedtoonlylookingbackward.

LinaStern,theHeadofEmployeeExperienceatLearnVestdesignedanewonboardingprogramthatsitsinSlackwithvideoandlinks.Thecontentis100%crowd-sourcedfrompeoplewhorecentlyjoinedthecompany.Virtualrealityisincluded.NewemployeesaresetupwithaproductionmanagertocreatetheirownonboardingYouTubevideo.Useracceptanceisveryhigh-newcomersandexistingemployeesuseitalotandsayitcontributeswelltotheirdevelopment.Weaskedrespondentstotelluswhattheyarelearningabouttheiruseofdigitaltools–whatworksparticularlywell.Typicalresponsesincluded:

• AppsthatcanbeonaSmartphone• Capabilitytoprovideimmediatefeedback• Adaptabilitytodifferentusersegments• Simpleuserinterface,easytouse,integrateswithdailywork• Easy,intuitive,simple,funandworkslikeaconsumerapp• Easy,multilingual,moreicons/fewerpictures,willa12-year-oldwanttouseit?

2.8. Changes for the organization and HR

CompaniesweinterviewedreportedthefollowingmainchangestotheirorganizationandtotheirHRfunction,astheybecameEX-Centric:

1. Flatter,lesshierarchical–EXPioneersandothersinthejourneytobuildEXreducedlayersandattemptedtoshortenthedistancebetweenseniormanagementandthecustomer.

2. CHROrolebecomesHeadofEX–theHeadofEXatAirbnb,Adobe,andotherEXPioneerstookovertheCHROrole.AtAdobe,DonnaMorrisisEVPofEmployeeandCustomerExperience.

3. Teamsbecomemoreagileacrossseveralfunctions–HR,ITandMarketingteamsfinditeasiertoworkacrossfunctionalboundariesondifferentEXprojectse.g.creatingDigitalstrategyatING,CulturebuildingeventsatAirbnb.

4. HRismoreintegratedwithotherfunctions,especiallyMarketing,IT,DesignandFacilitiesdepartments.AirbnbandGEreportworkingwiththeseotherfunctionseveniftheydon’thaveasolidlinereportingrelationship.

HereiswhereourrespondentstoldustheEXrolesitsintheorganization:• 20%ReportstotheCHRO(e.g.GE,IBM,Qualcomm)• 19%PartoftheTalentCoE• 12%PartofOrganizationDevelopment• 11%PartofEmployeeEngagement WefoundthatEXPioneersformnewteamsaccordingtoneedwithclustersofnewkindsofexpertise.IBMhasateamofcognitiveandadvancedanalyticsprofessionalswhoworkdirectlywithtalentexecutives,functionalexpertsanddesignerstocreateintegratedsolutionsaimedatenablingkeypersonas.IBMmeasuresNetPromoterScore(NPS)onthesesolutionswhilealsotrackingROI.Theyhavebeenabletotrackhundredsofmillionsinauditablebenefitstothecompany.

2. Full Report

OtherEXPioneersreporttheyarepartneringwithIT,Design,YouTubeproductionteams,FacilitiesandBranding.CoEleadersarebeingrebrandedasProductManagers(ABNAMRO).InmanyEXPioneerorganizations,HRthinksandoperatesmorelikeMarketing.Thekeyfeatureislesscentrallydriven,top-downprogramsandmuchmoreinputandfeedbackthatisanalyzed,fedback,testedandcustomizedforuse.

EXPioneerssaybite-sizedLearningisanoutgrowthofthisnewthinking.Theyaredoingless‘sheepdip’learningwhereeveryonegoesthroughaprogram,infavoroflearningthatismoretargetedandofferedonlineinsmallsegments,tobeaccessedwhileworkingonthejob.Organizationsarehelpingexemplaryteams,leadersandtechnicalexpertsproducetheirownYouTubevideoson‘Whatworkshere’,ratherthanrelyingonoutsidetrainerswithlittleknowledgeoftheculture.

PerformanceManagementandCareerDevelopmentareothertargetsforre-design.EXPioneersreporttheyhaveshiftedtheemphasisfrompasttofuture,fromperformancetodevelopment.Thesupportandtrainingtheyofferisongivingfrequentfeedbackthatinvolvesmorequestions,helpingtheemployeedeveloptheirowninsightsandhelpingevaluate‘whatworks’andwhattheywanttododifferently,withagreateremphasisondevelopmentandlearningonthejob.

SurveyrespondentsrecordedinsightstheygainedthroughouttheirEXimplementationprocess.Herearesomeofthemostprevalentcomments:• “WeneedtoworktogetherwithotherdepartmentstohaveasuccessfulEXstrategyandimplementation.”• “It’snotjustaboutdrivingengagementthroughshortterminitiatives;itneedstobeattheheartofyour

organization.”• “Puttheemployeeatthecenterofyourdesignthinking.”• “Complexorganizationsaretooslow,toohardtonavigate,anddonotprovideenoughemployeerecognition.We

needtobemoreagiletobebetterforcustomersandemployees.”

2.9. Business Impact

The250+companiesinoursurveytoldusthattheyexperience4mainresultsastheytransformaroundCXandEX:1. Theyleverageorganizationalstrengths2. Theygaincompetitiveadvantage3. TheyhadsawamoreintegratedCXandEX4. Theydevelopedacohesivedigitalstrategy

3. Transformation & The EX Playbook

Fig. 6 - What a Transformation looks like to build an EX-Centric Organization

Inthissection,wewillshareinsightsfromEXPioneersintohowtheydesignedandimplementedEXintheirorganizations.FromourEXresearch,wehavefoundthatthekeytosuccessistodesignEXaspartofaradicalTransformationtobecomeanEX-CentricOrganization(seefig.9).EXandCXwillbothnotworkunlesstheorganization,andespeciallyleadership,changemindsetandwayofworkingtoabottom-up,outside-inapproach.ThegoalofEXistodesigntheCultureoftheorganizationaroundhowindividualsandteamsperformbest,ratherthanthetraditionalapproachofmakingpeopleadapttotheorganization.

BeforeyougetstartedwiththeEXPlaybook,itwillbeimportanttofirstgothroughthreeimportantstepsinwhatwecallthe‘TransformationtoCreateanEX-CentricOrganization’:

1. ShiftMindset2. ListenDeeply3. AnalyzeInsights.

3.1. Shift Mindset

BecauseBuildinganEX-CentricOrganizationissocriticaltoyourcompany’sbusinesssuccess,andbecausetheTransformationimpactspotentiallytheentirebusiness,youwillwanttomakesureyouaddresstheLeadershipMindsetinyourorganization.ThiswasoneofthemostfrequentlymentionedissuesbyEXPioneersandwashighontheissuesrankedinoursurvey.

EXPioneerswhohaveseenthegreatestsuccesssometimesstartedwithanontraditionalapproachtosolvingproblemsthatdidn’tnecessarilyinvolveHR.Insomecaseswestudied,HRwasn’tinvolvedatallinthebeginning.Thishelpedthoseinvolvedtofreethemselvesfrombiasesandoldthinking.

Usemulti-channel listening

IDholisticjourneys

Listenforemotion

Createpersonas

Designexperiences

Test andprototype

LaunchdigitalPeoplestrategy

1 2 3 4 5 6 7

MarkLevyofAirbnb,wasoneofthefirsttobuildEX.Hisgoal(fromhisCEO)wasto‘notscrewuptheculture’,sohegatheredtogetheracoalitionofthosewhohadanyinfluenceoncultureandpeople,includingMarketing,RealEstate,Facilities,Design,CulturalEvents,CulturalEventsandRecruiting(whowerereportingintobusinessleaders)andmadethempartofhisteam(withoutformalreportingrelationships).HisCEOlikeditbecauseit‘wasn’tHR.’

Theactofbuildingacoalitionacrossfunctionshasseveralimportanteffects:ithelpsensurethatEXisanOrganizationalTransformationandnotanHR-onlyfocus.Acoalitionhelpscreatebroaderbusinessbuy-in.Italsobringscriticalfreshthinking(especiallywhenitisCX-centered)intohowanorganizationisdesignedarounditspeopleascustomers.ThesecoalitionsguidetheTransformationandstayontoleadCXandEXlongafterwards.

AnotherwhodiditthiswaywasNinaMaldonadowhowaspartoftheDigitalTransformationatING.Sheputtogetherateamofnon-HRpeopletocreatefirstCXandthenEX.EXcameundertheDigitalTransformationandnotHR.

SuccessfulEXPioneerstypicallyhaveaCEOandleadershipteamthatarealreadypredisposedtomoreradicalchange,typicallyinrelationtoaDigitalTransformationorbuildingCX.Theyseethedisruptionintheirindustriesandarewillingtotakeaction.SomeCEO’sseethedangersinthemarketandwillwanttomaketheshifttooutside-inthinking.INGCEORalphHamerchallengedhisleadershipto:“Disrupt,beforesomeonedisruptsyou.”BuildingaCXandEX-CentricOrganizationwascoretoING’sTransformationasaDisrupter.’

BecauseCXandEXaresonew,mostleadersarenotfullyawareofthedrasticdifferenceinbusinessmodel.TheyneedexposuretohowthisworksinEXPioneercompanies.Itisourhopethattheexamplesandcasesinthisreportcanhelpleadersunderstandhowdisruptivethisshiftreallyis.Aswithmostbigchanges,exposuretonewwaysofthinkingiscrucial.WestronglyencouragefirsthandcontactwithotherEX-CentricorganizationsandbusinessleaderstolearnmoreaboutthenewmindsetassociatedwithEX.

ButwhatifyourCEOisn’tcallingforaTransformationanddoesn’tyetseehowEXiskey?HereareseveralsuggestionsfromEXPioneers:

1. StartwithCX-BusinessleadersmorereadilyunderstandtheROIofimprovingtheCustomerExperience.ING,ABNAMROandothersstartedwithCustomersandthenbegantonaturallymovetowardsandaskaboutEmployees.

2. PilotEX–Startsomewhereinthebusinesswhereyouknowyouwillhavebestsupportandsponsorship.YouwillhavetohavebusinesssupportwhereveryouattempttobuildEX.

3. GoRogue-BuildabroadbasedteamoutsideofHR.Airbnb,INGandLearnVestallstartedoutsideHRtobuildEX.Theydidn’twanttobehostagetooldthinking.SomePioneerbusinessleadersdidn’ttrustHRtoknowhowtobuildEXordoitcorrectly.TypicallyEXteamsincludeHR,Marketing,IT,Facilities,Design,Communications.Getbusinessleadersasyoursponsors.

4. StartbuildingaBusinesscase–Identifyausecasethatalignswithaknownandcostlypainpoint.Onewayofdoingthatistodevelopsimpledatamodelsthathelpleadersmakeinformeddecisionsabouttheirpeople.IBM’sTomStachuratalksaboutthe‘amountofgoodwillthatwasearned’byprovidingmanagerswithsimpledatapicturesaboutwhichpeoplewereatriskforleaving.

3.2. Deep Listening

BeforemostEXPioneersdesignedEX,theytalkedtopeopleallovertheirorganizationandaskedthemabouttheirexperienceworkingforthecompany,whatworkedandwhatdidn’tworkandwhy.PreranaIssar,CHROoftheWorldFoodProgramme,anorganizationthatprovidesfoodtothehungryinconflictzonesaroundtheworld,makesitapointwherevershegoestoaskemployeeswhytheyjoinedtheWFP.Simplyaskingthequestionandlisteningintentlyhelpsthemreconnectwiththeirpurpose.

EXPioneersgatherinsightsanddataeverywherefromeveryone.Theyspeakwithhundredsandthousandsofrejectedandacceptedcandidatesinone-on-oneinterviews.Theyaskemployeeswhytheyleaveandaskcandidateswhytheydidn’tacceptoffers.Theyanalyzedataonpeopleatriskforleaving.Theyconnectwithemployeesintrainingprograms.EXPioneersexaminewhatdrivesNPSandtheyanalyzetextcommentsfromsurveys.EXPioneerscontinuetogatherdataastheydevelopTheseactionsalsohelpEXPioneersgetasenseofwheretheyhavegreatestopportunitytochangeandwhatkindsofchallengesexist.TheseconversationsinformlaterstepsinbuildingEX.

EXPioneersalsosaidtheygathereddatainsightsinthisphase.Theycollectedinformationonpeopleatriskforleaving,andthosethatdon’tjointhecompany.TheylookatwhatdriveshighNPSandanalyzetextcommentsonsurveys.

3.3. Analyze Insights

EXPioneerssaythemainpurposeofthisstageistounderstandwhereyouwanttogobeforeyoubeginyourjourneyandwhereyouaremostlikelytohavesuccess.Theylookatdatafrombothqualitativeinterviewsandquantitativeanalytics.Someorganizationsdeterminefromtheiranalysisofleadershipsupportandbuy-inthattheywanttopilotEXinbusinessesthatperformwellandhaveleaderswithatrackrecordofbeingresponsivetoemployeeneeds.

GElookedatdatafromtheirAnalyticsteamtodeterminewhatkindsofactivitiescorrelatedwithhighestproductivity.INGdidsomethingsimilarfortheirCXprocesswhentheycreatedanInnovationCenterwith250innovators,spreadacrosstheglobe.Ideaswereindependentlyassessedandrankedandpassedontobefurtherdeveloped.

MostEXPioneerswespokewith,identifiedkeybusinessproblemstobesolvedandthenporedoverdataandlookedforareaswheretheycouldimpactthebusiness.IBMtalkedaboutgivingtimebacktocandidatesandemployeesandidentifyingwheretheywerelosingtoptalent.Datainsightshelpedthemtolatercreateprofilesofpersonasandidentifypeoplemostatriskforleaving.

3.4. The EX Playbook

Fig. 7 – Steps in the EX Playbook

Multichannel listening

DesigninganEX-CentricOrganizationstartswithlisteningtoandobservingemployees.EXPioneersusesurveys,focusgroups,Hackathons,andinterviews,aswellasahostofDigitaltools.Andtheseareoftenbeingusedsimultaneously.

Usemulti-channel listening

IDholisticjourneys

Listenforemotion

Createpersonas

Designexperiences

Test andprototype

LaunchdigitalPeoplestrategy

1 2 3 4 5 6 7

KeythingswelearnedaboutMulti-channelListening:

Startwithaproblemtosolve-ManyoftheEXPioneerswespokewithstartedwithaparticularbusinessproblemforaparticulartargetgroup.ForING,itwashowtogetthetalenttheyneededfortheirInnovationHub,atopleader-sponsoredprojectfor3to6months.Theylearnedfromtalkingtoprojectparticipantsthattheyweredoingapoorjobintermsofdevelopmentandsupportingpeopletobeintheseprojects.Theyinterviewedpeopleintheirsecondorthirdjobrotation,tounderstandpainpoints,hurdles,andwhatagoodsolutionlookslike.IBM,usesAnalyticstodiscovertheconditionsthatencouragetoptalenttostayorleave,becomemotivatedortolosemotivation,tobeproductiveornotproductive. F2F-AlthoughDigitalfeedbacktoolsareexplodinginnumber,alltheEXPioneercompanieswespokewithinourcasesstillrelymostheavilyonface-to-faceinterviews,focusgroups,townhallmeetingsandpersonalobservation.Interviewsareusedallacrossthemainjourneyswherecompanieswantinsights:recruiting(interviewingcandidatesthatdon’tgethiredtoo),on-boarding,inlearning,on-the-jobdevelopmentsituations,inpromotionsandleavingthecompany.EveryEXPioneerweinterviewedtalkedaboutinterviewsasakeytooltofirstmapjourneysandwhatmattersmosttopeople.Digitaltoolssuchaspulsesurveyswereusedoftentosurfaceissues,whichcouldthenbeprobedmoredeeplyinface-to-faceinterventions.

ObserveEXPioneersspendtimelisteningandobservingwhatemployeesdoandhowtheydoit,mappingtheiractivitiesandinteractionswiththeorganizationandeachother,andaskingopen-endedqualitativequestionsaboutwhatmotivatesthem,wheretheworkexperiencecouldbeimproved,etc.EXPioneersatINGandLearnVestweretrainedinDesignThinkingandreportedlearningalotabouthowtoreallyobserveanddevelopEmpathy.

Hackathons&BreakathonsThisformofcreativeproblemsolvinghasbeenusedbyCiscoandLinkedInandmanyotherstoinnovateandfindnewideasfororganizationsatgrassrootslevelinafasttimeframe.Cisco’sBreakathoninvolved820employeesacross120teamsof4to8employeesacrosstheglobein139cities.Theycameupwith105newideasin24hours,andpanelsgroupedtheminto4groups:“Bestroadintothefuture,”“Bestideawecanimplementsoon,”the“Way-coolidea”andthe“BestideatobringOurPeopleDealtolife.”.

Hackathonsareagreatwaytoinvolvebroadnumbersofemployeesacrossanorganizationandcomeupwithnewappsandotherideasthatreflecthowemployeeswanttowork.Thekeyistoinvolvepeopleacrossfunctionsandgeographies,andnotjustfromHR.

Surveys-manyEXPioneersusesurveystoprovidemoredatapointstoworkfrom.Butanincreasingnumberusequalitativeopenquestionse.g..whatarekeytouchpoints,ratedassatisfiersordissatisfiersvs.lengthyquantitativequestionswhichmaymissthekeyissues.

NotjustHR-SuccessfulEXcompaniesrarelymadethisan‘HRexercise’.ABNAMRO’sHeadofEXhadhis2CXcounterpartspresentinmostoftheirdesignstages.MostofthemoreadvancedEXPioneersinvolvedMarketing,Branding,InternalCommunications,Design,andotherrolesinthedatagathering.Thiswaskeytothembuildingbroaderconsensusforactionlateron.

ID holistic journeys

ParticipantsintheMultichannellisteningexercisesareoftengatheredintofocusgroupsthatusedatainsightsandinformationfromobservingandtalkingtoemployeestoconstructholisticjourneyswithdefinedstages,keytouchpointsandanindicationofimportance,aswellasdesiredoutcomes(fromtheEmployeeperspective).

Theseareoftenpresentedinone-sheet‘FactSummaries’withkeydatae.g.forRecruitingandOn-boarding,keystatisticsonVacancies,ScreeningandOn-boarding,andsomevisualizationoftheimportanceand/oruseageofthatparticular touch point.

Fig. 8 – Most frequently mentioned Journeys

ABNAMROlooksat5mainjourneys:

1. Beststart(recruitingandonboarding)2. Letmehelpyou(interactionswithcompanyandHR)3. MeaningfulGrowth(performancefeedback,learning,developmentandinternalmobility)4. Ioweyou(salary,benefits,leave)5. GreatAmbassadors(pensionandoff-boarding)

MaxisbasestheirEmployeePromiseonthreemainjourneys:

1. IKnow–Knowhowyou’reperforming,howyou’reperceived2. IGrow–Maxiswillalwaysgiveyoutheopportunitytolearn,grow,youshouldtaketheopportunitytogrow,take

risks3. IEngage-Beengaged.Maxiscreatedanumberofprogramsforemployeestointeract,includingPilates,Mandarin

classes,cookinglessons.Activitiesthatarefunfortheemployeestojoin.Peoplegettomeetothersindifferentdepartments,whichmakesitmucheasiertocollaborate

GEcurrentlyhas4experiencesitfocuseson:

1. Candidate–bestexperienceforthe45,000whosuccessfullyapplyeachyearandtheroughly2millionwhoareunsuccessful

2. On-boarding–focuson1styear‘PathtoSuccess’3. Development–help317,000employeeshavetherightcapabilitiessotheyaremarketcompetitive4. LifeEvents–celebratingpositivelifeeventssuchasbirths,marriagesandbirthdays,andsupportingemployees

throughtoughtimeslikedivorce,illnessanddeath

Listen for emotion

GE’sHeadofEX,PaulDaviessays,“Welistentoouremployeesandcreatejourneymapswiththem.Welistenforthosemomentsthatmattersoweunderstandthecriticalpartsofthejourney.Weaskforinputonwhatismostfrustratinganddifficult,andwheretheyseethegreatestpotentialforimprovement.Overall,wearetryingtounderstandtheemotionsourpeoplegothroughastheynavigateourexperiencesandwetrytoremovefriction,reduceanxiety,andbuildanticipationandcreateexcitementwhereeverwecan.“

“Wewentbackandaskedourcandidateswhatmatteredmosttothem,welistenedtotheirstories,andlistenedespeciallyfortheiremotionsalongtheirjourney.Doourorganizationalstructurescreatesilos&frictionforourcandidates?Thewaywerecruitoncampusisdifferenttohowwerecruitmid-careerhires.Wehavetobecomfortablewiththoseexperiencesbeingdifferentbasedonthepersonaswearetryingtosolvefor.” ABNAMROaskstheiremployeestorankintermsofimportanceallofthetouchpointsalongtheirEmployeeJourneys,andstatewhethertheyaresatisfiedordissatisfied.Thisgivesmoreopportunitytoprobetounderstandwhatdrivesthesefeelingsandtheirimpact.

Create personas

PersonashavebeenusedforyearsbyMarketingtohelporganizationsthinkmorespecificallyaboutthewayspeopleexperience a company.

IBMcreated3mainpersonas–1)IBMer,2)Manager,and3)UplineorExecutiveleadersandthenconsideredcriticalmomentsoftruththatdefinedtheemployeeexperience.Tomsaysfurther,that“Understandingthesepersonasinthecontextoftheworktheyaredoingordecisionstheyaremaking,helpscrystalizetheessenceofvalueforthatpersona.Thatthenbecomeswhatwesolutionfor.”

ABNAMROcreated5personas.FrankvandenBrinksays:“Toensureagreatonboardingexperiencewefocusonnewhires.AlotofourHRproductsandprocessesareemployeecentric,butsomearealsofocusedonourleadership.Bycreatingaspecificpersonaaroundthem,weareabletofocusontheirprioritiesandsupportthemtoenableameaningfulgrowthforouremployees.”

ABNAMROPersonas:

• RegularEmployee:thekeypersona-wewantthemtotakeownershipoftheircareer• NewHire:toensureagreatonboardingexperience• Manager:tosupportthemandenableameaningfulgrowthforouremployees• ExternalEmployee:sothatallemployeeshelpusachievethesamegoal:transitionourbusinessmodel• InternationalHREmployee:asglobalizationrequiresabroaderfocustoattractandengagetalent.

Frankcontinues:“Weacknowledgethatallpersonasaretreateddifferentlyandhavedifferentneeds.Byfocusingontheirpriorities,dissatisfiersandmomentsthatmatterweareabletoimprovetheexperienceandengagement.”

EXPioneersidentifykeystatisticsanddriversforthepersonas,companyandHRservices,andotherdatathathelptheorganizationunderstandthatprofile.Validateinfocusgroupsandinterviewswithemployees.Itishelpfultoalsobringinqualitativedatae.g.quotesfrominterviews,focusgroupsandsurveysforeachofthetouchpointsforeachpersonatogiveadditionaldepthtotheinsights.

Design Experiences

Usingthepersonas,EXPioneersdesigntheidealexperiencesthatcorrespondtothetouchpointsandMomentsthatMatteralongtheholisticjourneys.Airbnbtalksabout‘EveryFramematters’.TheirCEOwasinfatuatedwithDisneyandtheirattentiontostory.SoMarkLevyandhisteamconstructedStoryBoardstoillustratetheEmployeeExperienceinspecificjourneys.PaulDaviesatGEalsotalksofcreatingStoryBoardsandsays‘Wedon’tgoanhourwithoutreferringtooneofthese.’EXPioneersidentifykeyneedsanddesignallthestagesofeachfutureholisticjourney,withemployeesandEX/CXteammembers,identifyingkeysuccessfactors.

SomecreateaCurrentStateAssessmentwithmainphasesandactivities,witharatingofhowthesearebeingperceivedandkeycomments.Asetofrecommendations,detailedactions,KPI’sandbenefitsareoftencreatedaswell.EXPioneersoftencreatebothdigitalandhumanpointsofinteractionandidentifyhopedforoutcomes.GE,AirbnbandotherEXPioneersoftenworkwithFacilitiesandDesigntocreatenewworkspaceaspartofEX.

Test & Prototype

Dependingontheleadershipsupportandsponsorshipyouidentifiedearlierinthistransformation,youmaywanttopilotEXinsomepartofthebusinesswhereyouaremostlikelytobesuccessful.

IBMstartedwithidentifyingemployeeswhowereatriskofleavingIBMandsharedkeyinformationwithmanagers,includingprescribedretentionactions.TomStachurasays,“Atfirst,itwassimplyhelpingmanagersmakesenseofdatatheyalreadyhadaccesstoandthencitingobservationsandrecommendations.Wesawahugeamountofgoodwillthatwasearned.Managerssaid,‘Youcombedthroughmyworldandcameupwithinsightfulrecommendations.’Thatprovidedaplatformforustogetmoresophisticated.TomrecommendsthatEXleadersshowvalueintheeyeofthetargetgroupofthepersona–adesignthinkingprinciple–and,whereverpossible,ROI.”

Regardlessofyoursituation,youwillwanttotestyourprototypeEXjourneys,andgetmorefeedbackonhowwellyouhavecapturedtheemotionsandMomentsthatMatter.

Launch Digital People strategy

PaulDaviesatGEtalksaboutdesigningEXaspartoftheongoingculturetransformationwhichincludesbothphysicalworkspaceanddesignaswellastheandtoolsandtechnologiesGEprovidesitspeopletoenablethemtobeproductive.NinaMaldonadohelpedcreateEXatINGwhileshewasontheDigitalTransformationteam(notanHRrole).Shefocusedonculturechange,newleadershipbehavior,andhowtosupportinnovation.

OneofthecharacteristicswesawinmanyEXPioneersisthattheyleveragedCXandEXaskeypartsoftheirDigitalTransformation.Indeed,weseeCXandEXascoretoaDigitalStrategy.

EXPioneerscreateastrategythatintegratesdigitaltoolswithhumaninteraction.ThegoalofanyDigitalstrategyistoimprovetheEmployeeExperience.WehaveadaptedhereThomasFriedman’s‘6thingsyourDigitalstrategyshouldbeabletodo’:analyze(revealpreviouslyhiddenpatternsofbehaviors/drivers);optimize(tellhowateamcanworkmosteffectively);prophesize(tellyouwhenyouremployeesaremostlikelytoperformattheirbest);customize(tailoranyproductorserviceforaparticularsegment);anddigitalizeandautomatizemoreandmoreproductsandservices

3.5. Design the People Strategy and Capabilities

TheEXPioneersweinterviewedhaveseensignificantchangesinthewaytheystructureandoperate.Themostprevalentchangeisthebuildingofacoalitionwithotherteamse.g.DesignandFacilities,IT,Events,Branding(GE,Airbnb,LearnVest,ABNAMRO).SomeofthesecreatedEXteamsthatdidn’tsitundertheofficialHROrgChartbutoperatedasthoughtheydid,breakingtraditionalsilo’sandCoEstructures.

Wealsoobservedthatmanyoftheseorganizationsbecameflatter,muchlesshierarchical,reducedVPtitles(Maxis,ABNAMRO)andbecamemuchmoreagileinhowtheyformandreformteams.Lastly,inmanyEXPioneercompanies,includingsomeratherlargeones,weseetheheadofEXassumestheCHROrole(Adobe,Airbnb).Insomecases,headsofEXcomefromoutsideHRandbringwiththemamuchbroaderknowledgeofcustomerinsightsandtechnology(LearnVest,ING).WeseeEXPioneersbuildingneworganizationalcapabilitiese.g.DesignThinking,AnalyticscombinedwithOrganizationDesignandOrganizationBehaviorroles,andagrowingemphasisonbuildingLearningcapabilityvs.technicalexpertise.

Fig. 9 – Steps in creating an EX-Centric Organization

3.6. Practice and Implement

EXisnotlikeotherpastprogramswhereyouputsomethinginplaceandthenleaveit.EXisaliving,ever-changingwayofworkingthatbuildsonconstant,ongoingfeedbackandimprovement.GEtalksaboutnotgoingadaywithoutreferringtotheirstoryboards.FrankvandenBrinkatABNAMROmeetsregularlywithhisCXcounterpartstodiscusswhatisworkingwellandwhy.TheyhaveacontinuouslearningandfeedbackloopbuiltintotheirEXdesign.

EXPioneerswespokewitharestilllearninghowthisallworksandneverstoplisteningandinterviewing,runningnewhackathons,andgatheringinsightsfromdigitaltools.

ThecoalitionsthatEXPioneerscreatedinthebeginningoftheirtransformationdiscusswhattheyarelearningandidentifymoreeffectivewaysofworking.ThisisalsoaplacewheresomeciteuseofcoachingandODsupport.TheyuseAnalyticstoidentifypracticesthatpredictsuccessinbusinessresults,theymeasurewhatisenablingbestworkanddrivinggreatestgrowthandcontinuetobuildcorecapabilitiesaroundCX/EXforcompetitiveadvantage.

Howthingswere:• RigidCoE’s• HRfocused• Policy/Processdeliveryorientation• Silo’dinHR• Modelborrowedfromoutside• SheepDip• HRMetrics

EX-CentricOrgStructure:• Agileorgdesign• Userfocused• Designorientation• Boundaryless:e.g.workswithMarketing, IT,Design• Madefor‘whatworkshere’• Individualization atScale• What drivesbestwork&businessgrowth

Talent C&B

HRBP’s

Recruiting Learning

Facilities

Marketing

Analytics

ProductManager

Talent

Learning

Rewards

Recruiting

4. EX Pioneers tell their story

Ourstudyshowedthatwhilenearly90%ofcompaniesfeelthatEXwillbemoreimportantinthenext2years,only6%saytheyhavemadesignificantprogress.Weestimateonly80-100companieshavetherole‘HeadofEmployeeExperience’inaseniorrole(reportingintotheCHROorreplacingtheCHRO).Untilmorecompaniesmakesignificantchanges,webelieveagapwillcontinuetogrowbetweenEXcompanies,duetotheirabilitytobuildonthebestworkoftheirpeoplewhiletheyattractandretaintoptalent.

HerewehighlightedeightEXstories,whichallhaveauniquebusinesscase,sootherscanunderstandthekindofTransformationinvolvedinbecominganEX-Centricorganization.

4.1. Airbnb: Scaling Culture for Growth

What led Airbnb to become an EX-Centric organization?

MarkLevyisatrueEXPioneer.WhenMarkfirstjoinedAirbnbbackinDecember2013,CEOandco-founderBrianCheskyhadonemessageforthenewleader:“Don’tscrewuptheculture.”

Forthe6monthsleadinguptoMark’shiring,AirbnbwentwithoutanHRleader.Cheskywasn’tsureheneededoneandwaslookingoutsideoftraditionalHRtofillthevoid.CheskyadvocatedforawaytoscaleandpreserveAirbnb’sculture.ThisideabecamethedriverforhimandMarkastheycreatedandimplementedEX.

ThedesignofEXatAirbnbledMarktorealignvariousfunctions.WhenMarkjoined,areasrelatedtotheemployeeexperiencewerespreadthroughoutthecompany.RecruitersreportedtoBusinessLeaders.Anindependent,smallteamfocusedonbringingAirbnbCulturetolife,aswellasemployeecelebrationsandevents,reportedelsewhere.RealEstateandFacilitiesreportedintoFinance.Markdecidedtobringallthesegroupstogether–thinkingoftheend-to-endemployeejourneyliketheend-to-endcustomerjourneyandfocusingonwhatisEX.

Marksays:“ImadeitupandBrianlikedit–itwasn’tHR.”MarkaddedEnvironments/Design(attherecommendationofthefounders,whobothgraduatedfromRhodeIslandSchoolofDesign),andalsointroducedtheideaofCitizenship(EmployeeVolunteerism).MarkjokedthatpullingtogetherteamstocreateEXwas“abitofafiresale.”ThereareotherteamsthatdonotfallunderMarkontheorgchart,buttheypartnercloselytobringtheentireEXtolife.TheseincludeITX,EmployeeTravel,Payroll,andBusinessSystems.Now,4yearslater,MarkLevycan’tbelievehowthisconversationwithCheskyrevolutionizedthewaypeopleexperienceworkandlifeatAirbnbandhowitinfluencesthewaysmallandlargecompaniesareevolvingtheirHRfunctions.

How did Airbnb do their Transformation?

WhenaskedhowhebuiltEX,Markstated:“Westartedwithourcorevalues,andweensurethateveryonewhojoinsiscomingtoAirbnbbasedontheirbeliefinourmissionandwouldfurtherthebehaviorswehavedefinedforeachofourvalues.”

WiththeemployeeandAirbnb’scorevaluesatthecenter,MarkandhisteamhavedesignedvariousEXjourneys,Markworkedwiththeconvictionthat“everyframematters,”whichwasoneofthecompany’soriginalvalues.ThiscamefromDisney’straditionalanimationprocess,whichrequiresdrawingeachandeveryframe.Itemphasizes2things:1)justlikeamovie’sstoryline,theend-to-endexperiencemustbeholisticallycreated,and2)justlikeanindividual,hand-drawnframe,everytouchpointanemployee(oraprospectiveorpastemployee)haswiththecompanymatters.

Everycandidatehastheirfunctional/technicalinterviews,andthenhascorevaluesinterviewsbytwopeopleoutsideoftheirfunction.Theseinterviewershavenoknowledgeofcandidate’sCVorjob-relatedexperiences.Markexplains,“Wewanttounderstandwhetherthispersoniscomingfortherightreason,andhowshealignswithourvalues.ThisisoneofthesuccessesofourEmployeeExperience.You’rebroughtintoourecosystemandwewanttomakesureyou’reheretoensurethesuccessofthatecosystem,tohelpcreateacompanywhereyoubelong.”

MarkhasalsotransformedEXbyhighlyindividualizingworkandlife.Employeesaregivenwhattheyneedtoperformtheirbest.Withthatgoalinmind,Airbnbgivesemployeesthelasttwoweeksoftheyearoff,whichisunheardofinthehospitalitybusiness.Theyrecentlyannounceda20-daypaidleaveforbereavementofaspouseorchild,withagraduatednumberofpaiddaysoffbasedontherelationshiptotheemployee.

Markandhisteamcontinuetomakeneededandwantedchangeswithhelpfromitsdatascienceteam.Theypaycloseattentiontotheiremployees’feedback,somuchsothatAirBnBdecidedtonotparticipateinBestPlacestoWork,asit“placestoomuchfocusonwhatothersthinkisimportantandtakestoomuchtimeandresourcesthatcouldbedirectedtothepeople.”Eventhoughexternalrankingspromotetheirculture,Marksays“Wedecidedtogomorebywhatouremployeessayaboutus,whichresultedinourbeingnamed#1placetoworkonGlassdoor(basedonemployeeinput)in2016”.

What advice does Airbnb have for you?

MarkrecognizesthatmostcompanieswouldhavetogothroughasignificantculturaltransformationtogettowhereAirbnbistoday:“WehaditeasiersincewehadnospecializationorbiasaboutwhatEXcouldbe,wejustmadeitup.Airbnbdidn’tknowwhatHRlookedlike.Wedidwhatwecouldtobringouremployeesupthecommitmentcurve.Wesaidwewouldtreatthemlikebusinesspartners,theytoldustheywantedtobetreatedlikefounders.”However,headvisesthatcompaniesshoulddiscovertheactualemployeejourney,includingkeytouchpoints,andtheactivitiesrelatedtothosetouchpoints,andthendeterminethegroupsandsystemsyouneedtosupportthatjourney.Thepeopleandresourcesdon’tevenneedtonecessarilysitundertheEXfunction.”

4.4. ING:Disrupt Before Someone Disrupts You – A Digital Strategy for CX and EX

What led ING to become an EX organization?

RalphHamers,CEOofINGtrulybelievesininnovationandinempoweringpeople.Hismainmessagewithhisleadershasbeen“Disruptbeforesomeonedisruptsyou.”HeinitiatedatransformationledbythebusinessratherthanHR.Aspartofthattransformation,theChiefInnovationofficebeganbuildingastrategyforING’sCX.

NinaMaldonadowasmovedtoanewroletohelp.Sheexplains:“IwasresponsibleforEmployeeEngagementandmovedtobepartoftheInnovationTransformationteam.There,wefocusedondevelopinganewmindset,aninnovativeonewhereemployeesfeltempoweredtocomeupwithnewideasandactuallyworkonthoseideastoseeiftheycouldbeimplemented.”

“Wedefinedallthetouchpointsinthecustomerjourneyfromthemomentinwhichourcustomershavecontactwithustowhentheymoveonandcontinueintheirpersonaljourneys.WeintroducedDesignThinkingasoneofthemethodologiestobetterunderstandthemindsofourclients.Itmademerealizethatwecouldusethatsameapproachwithouremployees.”

“Wewentoutsideandtalkedtoourclients,thosewhoweremoreaheadintheirinnovationjourneyandwelearnedfromthem.WhenImovedintotheB2Barea,wehadtheopportunitytopartnerwithcompanieslikePhilips,Unilever,andHeinekeninco-creatingsolutionstotheirproblems.Wealsostartedgettingintotheheadsofourcounterpartstobetterunderstandthepeoplebehindthesecompanies.”

Ninametwithdifferentpeoplefromdiversepartsofthebusiness,tounderstandCustomerneeds.Sheexplains,“Westartedtolikewhatweweredoing,understandingthepsychologyofourclients.Thenweasked,“Ifwecandothisforourclients,whycan’twedothisforouremployees?”

How did ING do their transformation?

ThefirstthingINGdid,Ninaexplainsis,“WeworkedonLeadershipMindset.Wetalkedaboutacceptingmistakesandlearningfromthem.Thisconversationwasextremelydifficultaswewerejustcomingoutofthefinancialcrisis.Noteveryonewasonboard.Wedecided,however,thatwhatweneededtodowascreateacultureofExperimentation.”Therewasachangeinwordsthatmakeabigdifferenceintheapproach–wecouldopenmoredoorsatalllevels.”

“Second,INGstartedfocusingontheirseniorleaderssothattheycouldunderstandwhyinnovationandachangeinmindsetwereneeded.Thisledaswelltoachangeinthetypeofquestionstheyshouldhavetowardstheirteams.Mindsetwasthinkinginpredictabilityandconsistency.Wewantedtohaveanothertypeofdialog–howcouldyouchallenge,empowerandsponsorateam.Howwecouldbringtherightkindofdialog?”

“Third”,Ninasays,“wecreatedanInnovationCenterinwhichwewouldhostanykindofinitiativetomakethe‘INGoftheFuture’–targetingdisruptiveinnovation.Manycompaniesaredoingthisnowadays:empoweringtheiremployeestodesigntogetherthefutureofthecompany.Inthatcenter,ideascouldcomefromopeninnovation(i.e.,fromstartups),orfromouremployeesthroughourInnovationBootcamp,whereonceayearpeopleareinvitedtosharetheirideasoninitiativesfromtheboard.Itisasystemthatworkswellandgathershundredofideaseveryyeararound3or4challengesdefinedbytheBoard.

Ninaexplains:“Wehadaround250innovatorsglobally–earlyadopters–toassesstheidea.Seveninnovatorsexaminedeveryideaandindependentlyassessedandrankedthem.Thetop100ideaswerepassedontoDesignThinking,LeanStartupandAgiletobefurtherdevelopedandreceivedfullsupport.OutofthiswecreatedaCustomerJourneymap,tounderstandwhatproblemsweweretryingtosolveforourcustomersandworktodefineaMVP(Minimumviableproduct/service).”

“Next,webuiltaplatformforemployeeswherewecouldaskusersatanystageoftheircareer,whatskillstheyhadandwhattheiravailabilitywas.Ontheotherside,ithadopenroles.Thiswasforusasortofopenmarketoninnovationwhereyoucouldmeetdemandandoffer.ThisisnowverymuchembeddedacrossING,andmostemployeesfeelcomfortableinraisingtheirhandtojoinaninnovativenewideaforashortorlongertime.Sometimestheywillbeevencomfortableinjoiningateamworkingoninnovation,ontopoftheirjob.”

Fourth,Ninasoughtemployeeinsight:“Togetherwiththebusiness,westartedinterviewingemployees,askingaboutcommonpainpoints,hurdles,andpossiblesolutions.Withthatfeedback,wetestedanapptohelppeopledevelopintheircareerwhohaveashort-termassignment.Webeganmoreactivelypromotinganenvironmentwheremistakescanbetolerated.Wegaveemployeesthefreedomtodowhattheyneedtodoinordertogetthemostofthisopportunity.”

NinalearnedtheprocessforbuildingCXandEXattheDesignThinkersAcademyinTheNetherlands.Afterattendingseveralworkshopswiththemin-houseatING,shedecidedtogetherfacilitatorcertification.Likewise,mostofthefacilitatorsofinnovationatINGknowLeanStartup,DesignThinkingandAgile.Shesays,itisverywellembeddednowintheINGculture:“Youneedtogooutandinterviewcustomers(employees),brainstorm,developandtestyourprototypes.Practiceitafewtimes.Inseveralcountries,HRhasplayedakeyroleaswellinrethinkingthewayyouworkandbuildingamoreagileandfluidorganizationthatbettersuitsthebusinessstrategyandtheenvironmentwherepeoplecanthrive.”

What advice does ING have for you?

Ninashares:“Startsmall–getitgoing–justdoit–don’twaitalwaysforHR.Organicgrowthisimportant.OneofthebiggestassetswehadwassupportofourCEO.Findsomeonewhoisnearhim/herandgetthatseniorsponsorship.” Ninahasnowmovedtohernextchallenge,leavingING.INGrecentlywonanawardas‘BestBankintheWorld’andwascitedfor‘beingaheadofthecurveinadoptingdigitaltechnologyandacultureofinnovation.’

4.2. Maxis: Regain Market Share and Competitive Advantage

What led Maxis to become an EX organization?

Maxiswasthelargest,mostsuccessfulTelecomcompanyinMalaysia.However,itlostitsmomentumafterbeingnumberoneforseveralyears.Competitorswerecatchingupandin2013,itwasaquestionoftimebeforethenumberonespotwouldgotoanotherTelco.TheirCEO,MortenLundal,joinedinOctober2013toturntheshiparound.Mirroringthesemarketwoes,thecompanyin2013sawrecordlowengagementscores.MaxiswaslosingrevenueintraditionalareassuchascallsandSMS,whichalreadywerebeingdisruptedbythelikesofWhatsapp,FacebookMessengerandothertechnologies.Theleadershipknewthatsomeradicalchangeshadtotakeplace.

How did Maxis do their transformation?

ThefirstthingtheCEOdidwastofocusoncreatingacultureandmindsetthatfitwiththedirectionhewantedtomovethecompany.MonirAzzouzi,HeadofEmployeeExperienceatMaxis,shareshowMaxiscompletelyre-designedeveryaspectofemployeeinteractionwiththecompanyandtransformedthewaytheydo1)performance&talentmanagement,2)organizationaldevelopment,and3)digitalization(Culture&leaders).

Thegoalisthatateveryemployeetouch-pointtheytrytoliveuptothethreepillarsofthe“MaxisPeoplePromise”(akatheMaxisEmployeeExperience):

• IKnow:Employeesknowhowtheyareperforming,howtheyareperceived,policies,processesandeverythingelsetheyneedtoknowtodoagreatjob.Ingeneral,youhavealltheinformationyouneedtohaveahighperformance.

• IGrow:Maxiswillalwaysgiveopportunitiestolearn,grow,domoreandleadothers.Maxismakessureeveryonecanlearnanytime,anywhere.Inturn,employeesshouldtaketheopportunitytogrowandtakerisks.

• IEngage:Toengageemployees,offeringsincludePilates,teamactivities,Mandarinclasses,andcookinglessons.Joiningisfunandeasy,andmostimportantly,peoplegettomeetcolleaguesindifferentdepartments,whichleadstogreatercollaboration.Inotherwords,wemakesurepeopleworkwelltogetherandhavefun.

AtMaxis,theydesignedtheframeworkIGrowtoconvincepeoplethatgrowthisnotjustaboutpromotionbutaboutlearning,growing,andgainingnewcapabilities.Theyranseveralcampaignstosupportandimplementthechange.Theywilltellyouthatit’salongjourneytochangepeople’scareermindsetfromfocusingongrowthinsteadofpromotions.

Maxisalsochangedtraditionalperformancemanagementtofurtherpromoteafeedbackandgrowthculture.Monthlyconversationswithemployees(called“PitStops”)facilitatedon-goingdiscussionsofpastmonth’sperformance,nextmonth’sexpectations,andpersonaldevelopment.ThetraditionalheavyyearlyappraisalwasreplacedwithasimpleboxtosummarizethePitStopsandarating.

OrganizationaldevelopmentMaxisalsoflattenedtheorganization,goingfrom51jobgradesto4.Leadersaredesignatedwiththesoletitle;“Head”,asopposedtothevariousjuniorandseniorlevelpositions.Itwasverychallengingtomakethistransition.Theytookaconventionalcompanythatreallycaredabouttitlesandflattenedit.Theywentsuddenlyfrompeoplethatwerestrugglingfortitlestowhereitdidn’tmatter.Byflatteningtheorgandthestructure,peopledon’tgetpromotedasoften.Nowthefocusisonpersonalandcareergrowth.

Tofurtherencourageanequitableculture,thephysicalofficespaceswerecompletelyredesigned.Theworkspacebecamemoreopen.NowinMaxisheadquarters,theydonothaveofficesforanyone.Whenyouwalkinthebuilding,youcan’ttellwheretheCEOissitting–hisworkspaceisbasicallythesameaseveryoneelse’s.Thisiscontrastwiththeirpast,whentheCEO,CFOandChairmanhadanentirefloortothemselves.

Aroundthesametime,Maxishadfallentonumberthreeinprepaidwithadecliningmarketshare.Theywerenotsureitwouldendwell.But,theCEOseeshimselfastheheadofcultureandtheybelievedthat‘Withtherightculture,everythingelsewillfollow.’Andtheywereright:Today,Maxisisnumberoneagainaftertwoyearsandoutperformingthecompetition.Engagementscoreshavegoneup21percent,evenaftertwoyearswhentheydidn’tpayanybonuses.

DigitalizationMaxisleadershiptookaholisticviewofwhatwasgoingonwiththeemployeejourney,focusingonhowpeopleexperienceMaxis,notonwhatmakespeoplemomentarilysatisfied.Theydiscussedhowtheywanttobeperceivedasanorganization.TheyknewthatEXhadtobedigitalbutalsohuman.

WelookedathowtheirEXdesignimpactstheirdigitalpeoplestrategy.Theirtargetwastocreatetherightbusinessresults.TheirdigitalstrategyisalignedwithEXandeveryprocessthatemployeesdealwithismobile–theirHRsystems,learningsystems,andinterviewprocess.WhenMaxispeoplewanttolearnordeveloptheycanaccesstheirBiteSizelearning,viaLyndaorSmartUp,andviewcontentwhilecommutingorfromhome.Everythingismobile-based.TheyuseddigitalizationasoneofthekeymeanstocreatetherightEXinMaxis. What advice does Maxis have for you?

WhatisthesecrettotheirsuccessimplementingEXandallthetransformationthatwentwithit?Itallstartswithtopleadershipwhowanttochangethecultureandthevalues.

What is the lesson learned from Maxis?

LinkEXtoyourvaluesandculture,andthenhaveplentyofcourageandresilience.Bewillingtofailandtakerisks.Andmostimportantly,you’vegottohavetopleadershipandyourCEOonboardfromthestart.

4.3. LearnVest: Integrate 2 distinct Cultures

What led LearnVest to become an EX organization?

StartupLearnVest,adisruptorinthefinancialplanningspacewasboughtin2015byNorthwesternMutual,whosawtheEXconceptinLearnVestasthekeydifferentiatorforgrowingandtransformingtheirbusiness.

How did LearnVest do their transformation?

LearnVestseesEXasthekeyto“becomingthedestinationofchoiceforinnovators-byattracting,engaging,andlearningtodothingsdifferently.”EXisatthecoreofhowLearnVestthinksaboutitsvaluesastheiremployeesaredrivenbytheirmissionandpurpose.LinaStern,HeadofEmployeeExperienceandOrganizationDesignatLearnVest,saysthat“EXstartswithemployeepropositionbranding.Employeesareourfirstcustomer.Ouremployeeshelpdefineourmissionandthisiswhathelpsdeliverourdistinctiveconsumerexperiencetoourusers.“

“Weengageinimmersiveexperiencestogettobreakthroughideas,”commentedLina.LearnVest’sfocusonexperiencesispayingoff.Forexample,LearnVestdoesnothaveacompany-mandatedon-boardingmanualorchecklist;employeesco-createon-boardingmaterialswiththeEXteamwhichareconsolidatedon-lineplatformswithbotsandteamdrivenexperiences.Theresultisaliving,breathingcollectionofon-boardingjourneys,frompersonalon-boardingtobecominganalumnusoftheorganization.Somethingthatisfullofinsightandillustrationswithreal,relatablehumanbeings.”

Thisyearalone,theon-boardingcontenthasbeenreviewedby200employees.Linaalsosharedthateveryemployeethatwantstobeinvolvedisinvolved,andtheyhaveaccesstoastorytellers,technologists,andproductionmanagerstomaketheirideasareality.LearnVestalsoinvestedinpeer-to-peerandsocialplatformstodrivesocialization,personalizetheirexperiencesandhelpthemreachouttoeachothertofindsolutionstheyneed.Regardinghowpeoplecollaborate,Linasaid,“WeuseSlacktocollaborateandareworkingonbuildingARandVRimmersiveexperiencestobringteamstogether.Forexample,wearecreatingawayforpeopletoexperienceatypicalroadmapmeetingsetupviavirtualrealityandpracticetheirproductdemosin3Dimmersivesessions.”

OneofthefirstthingsLinadidoncethisprocesswascompletewasconductaWellnessAssessmentofculture,strategy,andlearninganddevelopment.Armedwith10datasetsandanemaillanguageanalysis,Linaandherteamteasedoutwhatwasworkingandwhatwasn’t.Inaleadershipdebrief,afterherfindingswerepresented,leadersdecidedtodosomethingtheyhadneverdonebefore:scaletheirculturewhileintegrating.

FromtheinsightsLinaandherteamhadgathered,theydesigned6prototypesforEXjourneys:

1. EnrichedEnvironments2. RelevantTechandData3. ImmersiveExperiences4. AuthenticLeadership5. Transparent Communication6. Personalizedlearningjourneys

LinahiredateamtohelpherimplementthesejourneysusingDesignthinkingprinciples.Oncetheyhadtheprogramsinplace,theydidpost-eventsurveys,facilitatedface-to-facesessions,andconductedfocusgroups.Theyalsolookedatexistingdatasuchasfromexitinterviews.

Linashared:“Welookatdesigningthephysicalspacewhereouremployeescouldhave‘TogetherTime’,havealone‘ThinkingTime’,‘PlayTime’andalsoinvestedinwellnessprogramsfromyogaandmindfulnesstopassionprojectsandcreative‘GivemeaBreak’momentsatwork..Paralleltothephysicalspacetransformation,andthewellnessassessmentoftheculture,whichwasdesignedlikeayearlycheck-upwiththedoctor.Wealsocoveredstrategy,L&D,andculture.”

“Weendedupwithatotalof10datasets,alongwithaviewtosomeculturalelementslikethelanguagemostusedandincentivesthatmatter.Whatcameoutofthatwas‘What’sworkingandwhatneedstochange.’Weranaleadershipdebrief,explainedthefindingsandwhatwehopedtodo.Itwasthefirsttimetheorganizationhadscaledtheculturewhileintegrating.TheproducttheydesignediscompletelycustomizedtotheLearnVestexperience.”

What advice does LearnVest have for you?

“Buildateamwithbroadexpertise,suchaslearningtechnologists,front-enddevelopers,marketinganddesignprofessionalsandstory-tellerswithdiversepointofviews.’

‘Decidewhatwouldmakesenseforyourcurrentbusinessstrategyandalignyoureffortstothesestrategicpriorities.Deliverfastandleteveryoneseethevalue.Yourabilitytobuildthisfunctiondependsonyourcustomers.Iftheywantmoreandareusingyourproducts,yougotit.Getoutofyourofficeandgotalktothepeopleforwhomyouarebuilding.‘

4.5. ABN AMRO: HR Transformation

What led ABN AMRO to become an EX organization?

ABNAMRO’sheadofEXisFrankvandenBrink.ABNAMROwantedtodoawaywithtraditionalHRtogetclosertoemployees,radicallychangethebusinessstructureandprocesses,andanticipatemoredisruptivechangesintheindustry.

Franksays,“AtthisstageofEXimplementation,whattheywanttoachieveisnotprocessorproductbutanimprovedEXfortheir23,000employees.Tocreateasustainable,world-classCustomerExperience(CX),ourorganizationmustfirstcreateasustainableworld-classandmeaningfulEmployeeExperience(EX).EXisanewwayoflookingathowtodesignandengineerahighvalue,integratedandrelevantend-to-endEXforouremployeesandfuturenewhires.Thisincludeseverythingtocreatea‘BestStart’fornewhires,employeesstartinginnewpositionsand‘GreatAmbassadors’whenemployeesleaveourorganization.Webelievethat‘HappyPeople’willresultin‘HappyClients’andwewilltrytogotheextramileeverydaytorealisethebestEXpossible.”

How did ABN AMRO do their transformation?

Inthebeginningofthetransition(April2017),Frankandhisnewteamlookedathowtobemoreclient-oriented.Whattheydiscoveredthroughemployeefeedback,however,isthatHRwastooprocess-oriented.Asaresult,FrankdecidedtoalignwiththeCXdirectorsandmapacustomerjourney,feelingstronglythatthecustomercyclewasequaltotheemployeecycle.Hereasoned,“WeknowtherewilllikelybemorechangeswithrespecttonumbersofFTE’ssowebetterstartoptimizingtheexperienceandprocessesforpeoplejoiningandleaving;otherwise,peoplewillpotentiallytalkbadlyaboutABNAMROandinsteadhestartedtoputenergyinpeopleleavingABNAMROastrueambassadors”

TheyusedDesignThinkingtoobserveandideateopportunitiestobuildapositiveEXthroughvariousjourneys,whichwereprototypedandtestedincertainpartsofthebusinessthatenabledquickfeedback.Frankandhisteamcameupwiththefollowingjourneys:• Beststart–supportingcandidateattraction,recruitingandon-boarding• Letmehelpyou–thewayweareabletosupportandinteractwithouremployees• Meaningfulgrowth–howweenableemployeestoachievemeaningfulbusinessandpersonalgrowththrough

performance,learning,development• Ioweyou–thewaywerecognizetalentandperformancebyalsofocusingonwellbeing(vitally,mindfulness,

sabbaticals),preparationforretirementandrecognizinglongtimecontributions• Greatambassadors–buildingastrongalumniexperienceandbetterexternalreputation

FrankandhisteamalsodevelopedseveralmainEXcirclesofexpertise:1. TalentAttraction:HowtoimprovetheCandidateJourney,DesignandimplementaSourcingStrategyandcreatea

“LoveBrand”thatsitsnexttoABNAMRO’sMarketingbrand.2. Peopledevelopment:HowtoshiftPerformancemanagementfromrewardfocustoapeopledevelopmentfocus.

Performancemanagementhadbeenareward-andregulatory-drivenprocess,andtheywantedtochangethefocus

topeople’sdevelopmentandengagement.3. FocusonaTotalRewardstrategy.Ouremployeesgivetheirbestforclients.Weensuretheircontributionsare

recognized,notjustfinanciallywithacompetitivesalaryandgreatbenefits,butalsonon-financially,byfocusingonagreatplacetowork,flexibility,vitalityandsustainability.

4. HowtooptimizeLearningtocreatemorebusinessgrowth.Werecognizedthatallourpeoplewanttolearn,growandcontinuallyimproveintheirjobsaspartofwhotheyare.

Franksitswithhis2CXcounterpartsandtheyworkoncommonprocessesandcapabilitybuilding.TheCXleadershavemoreUXexperience.Franksays,“Theyhelpusonthesameprinciplesforclientcapability.It’ssimilartowhatwerewearedoing–wehaveaclientandemployeeapproach–whynotdoittogether?”

“LastbutnotleastiscapabilitybuildingwithinHRitself–theyaremovingmoreandmorenon-traditional,designingHRrolesaftermarketing,usinganalyticsoncontentrestructuring.ThegoalwastomakeHR‘future-fit.’”

Franksays,“AlotofcompaniesskipthatpartandjustdotheEXprojectwithoutnewcapabilitiesorredesignofrolesandorganizationalsetup.WehadnaturalmomentumwithanewCEOlastyear.Themanagementgroupwascompletelyreshuffled.Ourtop100leaderswereassessedandrestructured,40ManagingDirectorsleft,andwecreatednewportfolios.Inthatwholere-designwedidawaywithsilothinking.WepositionedEXnexttoCXontheorgchart.Whenpeopleseethegovernanceandthepositioningintheorganization,theyunderstandthatpeopleareasimportantasclients.”

What advice does ABN AMRO have for you?

FrankwarnedthatimplementingEXcan’tbedonejustonce;effortsmustbeon-goingandinnovative:“Ifwedoface-to-facefeedbackandget,say200questionsonpensions,thenwehavesomethingwrongwithourcontent.We’relookingformoreuseofAIinourservicedeliverymodel(e.g.,Chatbotsthatcanhelpyouwithquestions).Frankalsocommentedonhowimportantitistoinvolveeveryone:“WecoachalotofmanagerstomakethemresponsiblefortheirEXcircle.”

4.6. GE:Increase productivity by enabling employees to do their best work of their lives

What led GE to become an EX-Centric organization?

PaulDavieshasbeenHeadofEXatGEsince2016.Duringhisfirst100days,hewenttomanycompaniestolearnwhattheyaredoinginEX.PaulvisitedDisney,Airbnb,Deloitte,BrooklynNavyYards,andmanyothers.HediscoveredthateveryoneisdoingEXdifferently,tailoringittotheircontext.HeandhisteamstartedlisteningtoemployeesandlookingatwhatdatacamefromtheAnalyticsteam.TheywereinterestedinwhatdroveproductivityandcameupwiththedefinitionforEX:”Enablingourpeopletodothebestworkoftheirlivesthroughmomentsthatmatter.”

How did GE do their Transformation?

Paulhasasmallteam,andpartnerscloselywiththeGlobalFacilitiesorganizationandtheDigitalTechnologyteam.Paulleveragesanalyticsstaff&datascientiststomeasuretheimpactofimprovedexperiencesonoverallproductivity.

Paulandhisteamstartedwiththecandidateexperiencejourney.GEhadsome2millionapplicantslastyearwhoclickedthe‘apply’button,butGEfilledonly45,000rolesin2016.Paulrecognizesthatall1.95millionapplicantswhoweretold“no”haveanimpressionoftheGEbrand.Hewonders,“Didweupholdthebrand,didwerepresentwhoweare,wereweontime?Whatwasthecandidateexperience?Howcanwemakethemsupportiveofourbrand?”

Paulsays,“Weaskedcandidates:HowdidyoufirstlearnaboutGE?Wastheapplicationprocesseasy?Howwasitwhensomeonereachedout?Wewentbacktocandidatesurveysandaskedthemin1:1’storeflectonthemomentsthatmatter.Fromthere,weanalyzedandmadesurgicalimprovements,dependingonwhetheritisasiteormanagerissue.Wewantedtofindwaystoincreaseproductivityandgivetimebacktopeople.Weasked,“WhatdoIchangetodrivenumbersup?”

Paulsayssecondly,theydesignedjourneysforon-boardingandthechallengeof‘HowtomakesomeonewhoisjustjoiningGEsuccessful?“Howdowewelcomethemtothecompany,howarewewithassimilating,withgivingthemthetoolsandcontenttheyneedtodotheirjobs,dotheyhavetherightnetworks,andcantheyaccesstherightpeople?Wefocusontheir1styear,whatwecallThePathtoSuccess.”

Forcandidates,theytookthetimetoapplyfrom20-25minutesallthewaydownto3-5minutes.GEhasgivenmillionsofminutesbacktocandidates.Manyoftheiron-boardingconceptsaredrivenbyaconcepttheyborrowedfromGoogle–the‘Nudge’.

Third,theylookedatGE’sEmployeeDevelopmentExperience.PaulhassomeoneonhisteamwholooksaftertheDevelopmentExperience,with317,000peopletolookatdevelopment.GEwantstohavethemintherightexperiences.(makeaspace)

Thelastandbroadestareais‘LifeEvents’.Paulsays“EverydayGEpeoplehavebirths,deaths,marriages,divorces.Inthepast,wemayhaveexpectedourpeopletoleavetheirhomelifeathome,andleavetheirworklifeattheoffice.Realityis,wewantpeopletobetheirauthenticselvessoweexpectpeopletobringtheirhomelivestotheofficeandtakesomeoftheirworklifehome.Thelinebetweenworkandhomeisforeverblurred.”

“Wehavetomanagethemomentsthatmatterforthemandhelppeoplethroughthoseevents.GEemployeesintheUSalonegivebirthto7childrenaday.Wealsoconsiderhowwecancontinuetobepartofsomeone’slifeaftertheyleaveasGEalumni.Wearelearningtowalkintheshoesofouremployees.”

“Todesignthese,weusedPersonas,DesignThinking,StoryBoards.Wedon’tgoanhourwithoutusingoneofthese.Wewentbackandaskedourcandidateswhatmatteredtothem,listenedtotheirstories,listenedespeciallyforemotions.Doourorganizationalstructurescreatesilos&frictionforourcandidates?Thewaywerecruitoncampusisdifferenttothebulkofourmidcareerhires.WehavetobeOKthattheexperienceisdifferent.”

“Welearnedthat42%ofourcandidatesmakethedecisiontojoinGEduringtheirfirston-siteinterviewwiththehiringmanager.Becauseofthatdatapoint–howdowemakesuretheirexperienceisthebestitcanbe?Howcanwecuratethatexperience?

Wecreated4journeymaps,with10or11framesforeachjourney.Ourjourneymapismuchmorehuman,theroleofourpeopleleadersinhelpingcandidatesbesuccessfulissoimportant.HRdoesn’tappearinanyofthejourneymaps.We’rethecustodianandfacilitatorsoftheexperiencebutnoonesays–IneedtomeetHRorcanIhaveHRhelpintroduceme.Ourroleistohelpourpeoplebemoresuccessful.”

PaulandhisteamhavecreatedEXintheirphysicalanddigitalworkspaceandhaveworkedtochangetheGEculturetobeEX-Centric.Theyusetheirregularbusinessmetricsofgrowthandprofitabilitytotracktheirprogress.GEusestheir‘LeaderontheGo’(LoGo)apptodriveproductivityfortheir37,000peopleleadersaroundtheworld.Pushnotificationshelptheirpeopleleadersmakedecisionsonthegowhenthey’retraveling,atacustomersiteorathome.GEistestinganumberof‘nudges’viaitsLoGoapptocreateandsupport‘MomentsthatMatter’fortheiremployees.

What advice does GE have for you?

Paulsays,“Attheendoftheday,peoplejustwanttheirissuesfixed.Theyfeelhandoffsandtransitionsfromoneteamtoanother.Youhavetomaketransitionsseamless,removeunnecessaryfrictionandresolveissuesquicklytoensurepeoplefeelempowered.It’ssoimportanttowalkintheshoesofemployees.”

“Somefolksworkinsilosandforgetwhotheirtruecustomeris.It’scriticaltohaveacandidconversationaboutwhotheprimarypersonais,tomakesureyouaresolvingforthecustomer.”

PaulsaysthemostimportantthingtheirorganizationhaslearnedabouthowtobuildtheEmployeeExperienceisto“askpeoplewhattheywant,howtheyfeel,andwherethepainpointsare.Ifyoucandothatyou’realreadyonthewaytounderstandinghowyoucancreateagreatexperienceforyourpeople.”

Lastly,headvisestootherstakingthisjourneythatthey“Askyourselfwhatisimportanttoyouasanorganization.YouneedtomakesurethatyouremployeeexperiencestrategymakessenseinthecultureandthecontextofyourownorganizationratherthansimplyimplementingwhatotherslikeLinkedIn,AirBnBorGooglehavealreadydone.”

4.7. IBM

What led IBM to become an EX-Centric organization?

TomStachuraheadsIBM’sTalentSolutionsandPeopleAnalyticsfunction,since2015,wherehehelpsshapeIBM’senterprisePeopleStrategyfornearly400,000IBMersacross170countries.Heleadsaglobalorganizationcomprisedoftalentexecutives,functionalexperts,anddozensofcognitiveandadvancedanalyticsprofessionals–allwiththegoaltoelevateIBMerperformanceandachieveIBMbusinessresults.

IBMhasbeentransformingitsstrategyforthefutureofwork—requiringgreaterspeedandcollaboration,increasedpersonalization,andahighlyskilled,empoweredworkforce.Thecompanyiscommittedtodiversity,skillsdevelopment,andsuperiorworkexperience–keepingtheIBMerattheheartofthestrategy.

Tomsays,“ThisnotionofEX–usinganalyticsinlinewithanemployeeexperience-issomethingwe’reveryexcitedabout.It’swheretheexecutionhappensandwheretruevalueisdelivered.Wecallthis‘PersonalizationatScale.’We’reconsumedwithenhancingtheeffectivenessandtheexperienceforeachofourkeypersonas.Rightnowwe’reenablingindividualpersonasandwe’removingtowardenablingpersonagroups–multiplepersonasexecutinginconcert-todrivegreaterimpact.”

WhileNPS,ROIandspeedofexecutionaretheprimaryresultmetrics,measurableoutcomesareexpressedinarangeofkeymetricsincluding:improvementstoemployeeengagement,laborproductivity,skillsgapclosure,diversity,careervelocityandperformancemanagement.

How did IBM transform?

IBMcontinuestotransformtheenterprisebybringingcognitiveandcloud-basedsolutionstoitsclientsthroughanindustrylens.ThesesamecapabilitiesaredeployedinternallyandfueledbyAgileandDesignThinking.Forus,theprocessisaboutplacingapersonaatthecenteroftheframeandthenunderstandingtheessenceofvalueforthatpersonaatkeymomentsoftruth.Theprocesshelpsbreakdownorganizationalorfunctionalbarriersandfocustheeffortonspeedandvalue.

Wehavethreeprimarypersonas:theManager,theIBMer,andtheUplineleader(executive).“Eachpersonahasdifferentmomentsoftruthandexperiencesevensharedmomentsoftruthdifferently.Eachismakingdifferentdecisions,weighingtrade-offsdifferentlyandrelyingondataandpeersdifferently.OuraimistohelpeachofthembesuccessfulandhelptheirteamsbesuccessfulindeliveringtoIBMclients.

Atfirst,thecoreissuewasoneofscale.Specifically,howtoenablethousandsofIBMmanagerswith:1)rationalizeddatafrommultiplesources,2)insightfulobservationscuratedfromourPeopleStrategy,and3)prescribedactionsfor

theiruseindecision-making.Thesolutionisaconvergenceofbigdata,cognitivecapabilities(AI),Agilepractices,andDesignThinking.

Welearnedthatbydeliveringprescribedactionstomanagers‘inline’withtheirdecision-makingprocess,cognitiveloadisreduced,learningisenhancedandbetteroutcomesareachieved.Asaresult,themanagerexperienceimproves.

We’vebookedhundredsofmillionsinauditablebusinessbenefitsthroughoutthetransformationandinmanyrespectswe’rejustgettingstarted.

What advice does IBM have for you?

WhenitcomestoAgile,startsmallanditerate.Beintentionalwhenselectingtherightpersonaandmomentoftruthandlookforopportunitiestocapturemeasurablebusinessvalue.Usethevaluecaptured,andcredibilityearned,toexpandforbroaderimpact.Secondly,co-createwithpersonarepresentatives.Contemporarysocialtoolsandplatformsallowforincorporatinginputfromsmallandlargevolumesofrepresentativesthataregeographicallydispersed.

4.8. U.N. World Food Programme: Start with Why

What led the World Food Programme to become an EX-Centric organization?

Forourfinalcasestudy,wewantedtolookatEXinanon-traditionalenvironmentinthedevelopingworld.WeoftenassociateEXwithcreatingacertainkindofworkspacewithcouches,games,andfreelunchprogramsinasleekworkspacewiththelatesttechnology.WewantedtodiscoverifconceptsembodiedinEmployeeExperiencematterinonlycertainindustriesandsettings.

PreranaIssaristhedirectorofPublic-PrivatepartnershipsandfundraisingandformerCHROoftheWorldFoodProgramme.TheWorldFoodProgrammeistheworld’slargesthumanitarianorganizationwhichfeedsanaverageof70millionpeopleeachyearinover80countries,manyoftheseinconflictandwarzonessuchasSouthSudan,Chad,Iraq,andSyria.

Employeesareoftensinglemotherswithyoungchildrenwhoworkonshort-termcontracts,duetofundingAlthoughcontractsareoftenrenewed,manyemployeesdonotfeelsecureintheirpositions.40%ofmanagersarewomen.WhenPreranajoinedtheWFPafteryearsofseniorHRrolesatUnilever,shewassurprisedathowlittleWFPemployeestalkabouttheirworldandwork.Hersentimentwas,“Ifwewantpeopletojoin,weneedtotalkaboutwhy.”

Preranastates:“Thereisaspectrumacrossthehumanitariansector–frombanksononeend,tolifesavingworkthatalotofpeopledoindifficultcircumstancesontheother.Thekindofworkpeopledoandthereasontheydoitisanimportantissue.Themandateissoimportant.”

Preranacontinues:“PeoplejointheWFPthinkingofitasacalling.Theyneedtosupporttheirfamiliesbuttherearemanyeasierwaystodothatthanworkinginawarzone.Thequestionis:Whatcanwedotoamplifythegoodreasonspeoplecometowork?Itisanyleader’sjobtodothat.”

How did the World Food Program do their Transformation?

WFP’sTransformationisbasedonasimplebutverypowerfulquestion.Preranaasksthepeopleshemeetsintheseconflictzones:“Whydoyoucometoworkhereandnotinabankorsomeplaceelse?Shealsothinksabout,“WhatcanIdointhewayIstructureworksothatIcanamplifythosereasonsforworkinghere?”

WFPhassinglemomswhoregularlyvolunteertogotoemergencyoperations.Preranasaysshewantedtogetinsightwhytheyaredoingtheseextremejobs.

Sheaskedonesinglemom,“Whyareyoudoingthatworkinawarzone?Youdon’thaveto.”Theworkerresponded,“I’mfromacountryinAfricathathasseenalotofstrifeandIneedtodothis.”

Preranaadmits,“Oneofthechallengesofthemanageristhey’renottheonlyonestheemployeeisinteractingwith–they’regettingfeedbackfrommanysourcesandthosemessagesarenotalwaysconsistent.Yougetsomeonewho

5. Final Thoughts

ismotivatedbuttheygetothermessageswhichmayerodethatsenseofpurpose.Theyhaveadeficitandthenasamanager,youhavetoreconnectsomeonewiththeirpurpose.Asamanager,youmaybeansweringforsomethingyoudidn’tdo.”

“Allofusaspsychologicalbeingsfeelthatinteraction–youfeelyourcontributionisnotvalued.Andthenthemanagerwhohasthemnowhastogetthemoverthatmomentandreconnectthem.Iftheorganizationdoesn’tfollowthroughwiththecommitmentsbeingmade,itcreatesaproblem.”

What advice does the World Food Programme have for you?

Preranasays,“I’vemetmanyofourstaffinperson–Istartwiththisquestionof‘Whydidyoujoin?’andwhenI’mwithsmallergroupsIusepostcardswithpreviouscommentstostarttheconversation,leavingsomespaceforthemtosharetheirthoughts.Itprovidesachancetoreflectandshare–backtothemotivationandpurposethatgetsdilutedovertime.”

Whenaskedwhyemployeesjoin,theytypicallymentionthreethings:1. “Ihaven’tthoughtaboutthisforalongtime.”2. “Thisconversationhelpsmerecommit.”3. “Ididn’tknowmycolleaguesfeltthesamewayIdid.”

Preranastates,“Noonehadeverdoneanythingforthesewomenbefore.Itwasverymuchappreciated.Icontinuemymentoringefforts.Forthese4firstyearsIhadakeyplankforhowtoleavealegacyofmorewomenhumanitarianleadersfortheworld.”

5. Final Thoughts

WeinitiatedthisstudytocreateanobjectiveviewofEmployeeExperienceanddevelopgreaterunderstandingofsomecriticalbuildingblocksaswesawanefforttore-brandandre-purposeother,olderconceptse.g.EngagementasEX.EXissomethingdifferent,drivenbytechnologyandbasedonDesignThinking,whereorganizationsarecreatedaroundpeople,fromthebottomup.It’sabout‘Whatworkshere’vs.largeconsultingmodelsof‘Whatworkseverywhere’.It’sbiggerthanHRortheHRServiceModelwhileitcompletelyreshapesHRandbreaksdownfunctionalwalls.

EXiscenteredongreaterface-to-faceinteraction.Ithelpsorganizationsbecomemorehuman.Simultaneously,EXisthefoundationofaDigitalPeopleStrategy.

Intheend,wecanbecustomersandemployeesatthesametime.WebelieveEXisanimportantstepinajourneytowardscreatingtheHumanExperience‘HX’whereweseektounderstandallpeoplearoundanorganization.

About the authors

ElliottNelsonisapartneratKennedyFitch,aconsultingandsearchfirmpromotingandbuildingnetworksontheFutureofWork.HecoachesandadvisesleadersonDisruptiveTransformationsandbuildingEX-CentricOrganizations.HeisaformerglobalheadofTalent,LearningandOrganizationDevelopmentatPfizer,AzkzoNobel,Novartis,Fujitsu-SiemensComputersandCompaq.

HannahOlveraDomanisaResearchAssistantatKennedyFitch,specializinginstudyinghowcompaniesdesignandimplementtheEmployeeExperience.HannahisworkingtowardsaBachelors’DegreeinHRatBrighamYoungUniversity,wheresheisalsoaBoardMemberandwriterfortheMarriottStudentReview,andleaderinthelocalSHRMChapter.

KennedyFitchLimmatquai 2

8001 Zurich / Switzerland

Elliott Nelsonelliott.nelson@kennedyfitch.com

www.kennedyfitch.com

employee experience - kennedyfitch · 3. building an ex-centric organization requires a complete...

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