Benefits of social collaboration at Grundfos

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1 Enterprise Social and the Future of Work: Benefits of social collaboration at Grundfos Rasmussen Komulus, Vejle, March 2014 #worklikeanetwork

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3 The world has become a giant network. #worklikeanetwork

4 Work like a network. Listen to conversations that matter Adapt and make smarter decisions Grow your business #worklikeanetwork

5 In this presentation A few words about the company Global Working Culture & Social Empowerment Yammer How it all began in Grundfos Two big and two small success examples Important learnings What does the future hold?

6 Grundfos - The world s largest manufacturer of pumps

7 Grundfos Facts & Figures Founded in 1945 by Poul Due Jensen Main shareholder is the Poul Due Jensen foundation (87.6%) The world s largest manufacturer of pumps and pump systems. Annual production 16m units. Turnover of DKK 22.5 billion (EUR 3.03 bn) in 2012 More than 18,000 employees worldwide The Grundfos Purpose Grundfos is a global leader in advanced pump solutions and a trendsetter in water technology. We contribute to global sustainability by pioneering technologies that improve quality of life for people and care for the planet.

8 Global Working Culture in Grundfos The Global Working Culture initiative is born out of our CEO s intent of creating a global organisation where we are all working in a global human web of relations and shared working culture, as if we are sitting under the same roof. Grundfos Strategy (excerpt)

9 Global Working Culture Organisation HR Steering Committee PDJA IT

10 Examples Purpose and High-level Goals To drive business growth, innovation, and strategy execution, by making it normal to engage actively and openly in the globally connected Grundfos internally and externally with the dedicated purpose of leveraging opportunities and ideas, collaborating effectively, or reducing inefficiencies. Connectivity Cost efficiency Productivity Revenue ROX (Expertise) ROT (Time to problem resolution) Decision Making Quality Communication costs Meeting cost Travelling cost ROE (Effort) Faster product development cycles Shorter customer support cycles Improved global sales effectiveness Improved customer retention Improved marketing effectiveness use for problem solving can be reduced by 90 %. Increase in knowledge searchability and solution speed. The Value Time can be increased by % for many business critical job roles. Ideation and brainstorming in global teams will be produce better results without flying people together. Internal Events can be implemented at 50 % cost or less. The Output Value of Internal Events can be Improved by %.

11 Socially Empowered Organization x Opportunity The Organization in the Organization Public The 10 s The 100 s Community Manager Selected Thought Leaders and (some) Executives SME s, campaign resources, support people Social Business Manager The 1000 s Socially Empowered Employees Governance: Lead Node Network, Policy and Guidelines Source: pyramid adopted from the IBM Select model

12 How it all began: It was a beautiful and quiet spring day

13 We need something new! (Workshop in Copenhagen) How can we use social media to connect people before they meet physically in Copenhagen? The Approach 2 IT guys called in to help 4 Community managers appointed 40 Invitations sent out two weeks before the event. Hosts posted new content regularly to encourage feedback Secondary purpose: Yammer would allow users to involve people at home in the workshop.

14 2 Success Stories

15 Grundfos 365 Mail and Calendar change management The Challenge Create an efficient, open and honest communications channel to reduce reliance of and show new ways of working. The Approach Invite all appointed change agents to a Yammer group. All communication from the change management team to take place using Yammer. Open for volunteer participation, eg. people who had working experience with Outlook. The Result 360 participants, 170 conversations, 429 replies in 3 months. Less than 10 s from change agents to change management team Group has today developed into a peer-to-peer Q&A channel

16 MHD Community distance leadership The Challenge Creating a sense of belonging in a department of ~80 people all over the world. The Approach Invite people to Yammer group. Incentivize use my making Yammer use a part of manager s annual bonus targets. Provide extensive support to the local champion who also happens to be dept. director. The Result Yammer played key role in development of new department strategy and is now way of working An extremely committed champion in a part of the organisation that can benefit a lot from working virtually

17 Serendipitious discovery in action a Yammer thread disected Ask a specific question about a product or service where you need help Result Faster turnaround for service requests. Engaged people from US, DK, DE & NL Happier customers as a result of faster service. Point to possible starting points Clarify mistakes or missing information Opportunities Strengthened internal network among technicians A direct line to the people at the forefront of problem. First informed action based on discussion. Explain the background for the problem to create full transparency

18 Working Social or Surfing Social?

19 Meet Simon and the YamBites

20 Which Tool When? Grundfos vs. E&Y

21 5 Lessons learned in the first 1½ year

22 It s not about devices But Source: McKinsey - Organizing for change through social technologies, November 2013

23 Objection handling Normal vs. New Normal

24 Communicate Early Adopters CHASM Early Majority First Wave Second Wave Sources: Rogers (1962), Moore (1991), Sampson (2010)

25 Communicate, Communicate, Communicate Launch of Yammer Total Engaged % Official communication on intranet

26 The Participant inequality theory is real The number of people who create content on the Internet represents approximately 1% (or less) of the people actually viewing that content. For example, for every person who posts on a forum, generally about 99 other people are viewing that forum but not posting. (from Wikipedia)

27 and most importantly: It all starts with a purpose! Clear purpose = Positive reinforcement Positive reinforcement = Big results!

28 So what s next for Grundfos?

29 Intranet

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31 The Social Journey

32 Four Factors for a Successful Journey

33 Comments? Questions? Martin Risgaard Thank you!

34 Read more on about Grundfos Social Journey and how social business is taking root in a traditional company