employee experience - kennedyfitch · 3. building an ex-centric organization requires a complete...
TRANSCRIPT
Employee ExperienceHow to Build an EX-Centric Organization
2 2
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
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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.
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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.
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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.
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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?”).
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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
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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
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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?
1
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
2 43
Personalizeatscale
IBM'sdataanalyticsandpersonasguidemanagerstomakebetterdecisionsforemployees.
WorldFoodProgramseektounderstandvolunteers'motivationinordertomaximizeworld-wideimpact.
Startwithwhy
ThefollowingReportgivesyouaPlaybookforbuildinganEX-CentricOrganization,helpyouunderstandkeyconceptsandofferpracticalexamplesfrom8EXPioneers.
Employee Experience
How267companiesthinkaboutanduseEX
Fig. 4 – Highlights of our global EX Study
2. Full Report
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EmployeeExperienceHow267companiesthinkaboutanduseEX
250+
Wegatheredinsightsfrom
267companiesworld-
widetodiscoverhowthey
areutilizingEX.
EXaroundtheworld
37
15
22
25
85
71
0-500
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
CHRO
TalentCOE
Engagement
Org
development
Other
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.”
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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.
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• 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.”
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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.
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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
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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
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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.
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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
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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.
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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.
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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.
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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).
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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.“
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“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.
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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
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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.
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3. Transformation & The EX Playbook
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
CHRO
Talent C&B
HRBP’s
Recruiting Learning
EX
CX
IT
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.
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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.”
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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?”
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“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.’
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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.
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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.
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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.
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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.‘
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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
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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.”
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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)
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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.”
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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
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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.
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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
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5. Final Thoughts
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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.”
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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.