The Psychology of High Performance and the Case for Better Technology David K. Johnson, Principal Analyst

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2 The Psychology of High Performance and the Case for Better Technology David K. Johnson, Principal Analyst April 6, 2016

3 Agenda Context: How Profit, Customer Experience, And Employee Motivation Are Linked How Technology Affects Motivation And Performance At Work Why Changing Employee Workstyles Demand More Flexibility What it Means for Workforce Technology 2016 Forrester Research, Inc. Reproduction Prohibited 3

4 What we studied What science knows about the links between motivation, human performance and business outcomes 250+ scientific papers 30+ related books 25+ interviews with organizational psychology experts Alignment between science, tech management and business practices at perennially successful companies 50+ executive interviews CX Index analysis Examples of operational excellence, past and present Toyota, Southwest Airlines, Ericsson, etc Forrester Research, Inc. Reproduction Prohibited 4

5 Employee Well-Being, CX and Profit are Linked Source: Forrester Research and Watermark Consulting 2015 Forrester Research, Inc. Reproduction Prohibited 5

6 What is customer satisfaction? 1. Makes me feel valued 2. Customer service representatives have the authority to solve my problems 3. Resolves problems/issues quickly 4. Makes it easy to find the product/service that best fits my needs 5. Ensures products/services are of high quality 6. Has knowledgeable customer service agents 7. Is reliable (i.e., completes tasks in the timeframe promised) 8. Repairs or replaces broken/faulty products 9. Makes it easy to change my service 10.Offers convenient access to customer service (e.g., by phone, , or chat) 2016 Forrester Research, Inc. Reproduction Prohibited 6

7 Employee-facing tech investment results: Citibank achieved +12 on CXi by Redesigning core knowledge management tool for bankers and phone reps, shortening the time to get information Re-platforming effort to give all customer-facing employees a 360 view of each customer Provising an internal social platform for employees to share what s preventing them from providing great CX 2015 Forrester Research, Inc. Reproduction Prohibited 7

8 Customers Employees

9 Employee experience is the other half of customer experience 2015 Forrester Research, Inc. Reproduction Prohibited 9

10 Examples of emotions impacting employees 2016 Forrester Research, Inc. Reproduction Prohibited 10

11 Companies with happy employees enjoy: 81% Higher Customer Satisfaction 50% Lower Employee Turnover Each standard deviation increase in turnover = 40% reduction in productivity and 28% reduction in profit.

12 Agenda (Managers) Context: How Profit, Customer Experience, And Employee Motivation Are Linked How Technology Affects Motivation And Performance At Work Why Changing Employee Workstyles Demand More Flexibility What it Means for Workforce Technology 2016 Forrester Research, Inc. Reproduction Prohibited 12

13 2016 Forrester Research, Inc. Reproduction Prohibited 13

14 Facts about our brains at work We start each day with a limited amount of cognitive fuel (glucose) We can only keep 6-7 things in our conscious mind at any given time Our conscious mind burns (System 2) many times the energy of our automatic mind (System 1) Things that waste cognitive fuel: Context switching - attending a meeting when your brain is still thinking about something else Multi-tasking trying to do more than one thing at the same time Doing first thing in the morning Recovering from interruptions and distractions Keeping things in your head instead of writing them down in a task management system you trust Sources: David Rock, Your Brain at Work and Daniel Kahneman, Thinking Fast and Slow 2016 Forrester Research, Inc. Reproduction Prohibited 14

15 Fact - What makes us happiest at work is: Getting things done When workers sense they re making headway, their drive to succeed is at its peak. Source: Amabile, Teresa M., Harvard Business Review, The HBR List: Breakthrough Ideas for Forrester Research, Inc. Reproduction Prohibited 15

16 Getting things done builds on itself

17 The Secret to High Performance Productivity is Flow Data Source: Source: John E. Hunter, Frank L. Schmidt, and Michael K. Judiesch, "Individual differences in output variability as a function of job complexity," Journal of Applied Psychology, February Graphic Source: Forrester Research, A Crisis Of Attention: Technology, Productivity, And Flow, July 2014.

18 A typical work day for most of us 2016 Forrester Research, Inc. Reproduction Prohibited 18

19 Anyone recognize this?

20 Unfortunately, we are usually our own worst enemy 62% say they have been distracted from completing work by checking s, browsing the web, and engaging with social media. 59% admitted that the reduction in productivity caused them dissatisfaction and unhappiness 36% said checking s and social media cost them more than an hour a day in productivity. 16% claimed they lost more than an hour a day. Source: Webtrate, 3000 US employees 2016 Forrester Research, Inc. Reproduction Prohibited 20

21 Try to create as much time for flow as you can 2016 Forrester Research, Inc. Reproduction Prohibited 21

22 Flow requires intrinsic motivation Source: John E. Hunter, Frank L. Schmidt, and Michael K. Judiesch (1990), Individual Differences in Output Variability as a Function of Job Complexity, Journal of Applied Psychology, Volume 75, Vol. 1 (p.36)

23 The factors that boost motivation the most Autonomy How much say employees have in how their work gets done Competence That employees feel like they re getting better at their work Purpose That employees know their work is important Relatedness That employees feel like they belong and are part of an inclusive group 2016 Forrester Research, Inc. Reproduction Prohibited 23

24 Telecommuters are more productive in creative work Source: Dutcher, E. Glenn, The effects of telecommuting on productivity: An experimental examination. The role of dull and creative tasks, The Journal of Economic Behavior & Organization, Vol. 84, April 23, Forrester Research, Inc. Reproduction Prohibited 24

25 but not in mundane work Source: Dutcher, E. Glenn, The effects of telecommuting on productivity: An experimental examination. The role of dull and creative tasks, The Journal of Economic Behavior & Organization, Vol. 84, April 23, Forrester Research, Inc. Reproduction Prohibited 25

26 Feeling good at work, defined 2016 Forrester Research, Inc. Reproduction Prohibited 26

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28 Agenda Context: How Profit, Customer Experience, And Employee Motivation Are Linked How Technology Affects Motivation And Performance At Work Why Changing Employee Workstyles Demand More Flexibility What it Means for Workforce Technology 2016 Forrester Research, Inc. Reproduction Prohibited 28

29 Where employees work continues to shift 2016 Forrester Research, Inc. Reproduction Prohibited 29

30 Nearly half of all workers use technology they own Which of the following activities, if any, have you done in the past year in your job? Use my own personal computer or personal smartphone to help me do my job 45% Bought something with my own money to help me do my job 30% Installed unsupported software that will help me do my job Use a website or Internet-based service that my company doesn't support to help me do my job 20% 19% Base: 4018 Information workers; Source: Business Technographics Global Telecom and Mobility Workforce Survey, Q Forrester Research, Inc. Reproduction Prohibited 30

31 Consumerization Fuels Productivity, Customer Service What do you feel are the benefits of using a personal device or application you ve downloaded, chosen, or paid for on your own for work? (Select all that apply) Makes me personally more efficient and productive 59% Higher job satisfaction Makes it easier for me to solve business problems Allows for a better work/life balance 42% 42% 46% Allows me to better serve our customers 38% Base: 4018 Information workers; Source: Business Technographics Global Telecom and Mobility Workforce Survey, Q Forrester Research, Inc. Reproduction Prohibited 31

32 The More Career-Focused Employees Are, The More Freedom They Seek 2016 Forrester Research, Inc. Reproduction Prohibited 32

33 Agenda Context: How Profit, Customer Experience, And Employee Motivation Are Linked How Technology Affects Motivation And Performance At Work Why Changing Employee Workstyles Demand More Flexibility What it Means for Workforce Technology 2016 Forrester Research, Inc. Reproduction Prohibited 33

34 What it means for workforce technology Performance and user experience are paramount High performance computing can enhance employee performance Deep learning will deliver insights for better decisions, faster GPUs will power cloud workspace platforms Virtual reality and wearables will transform product design, field service and healthcare AI will drive the next era of workforce productivity gains 2016 Forrester Research, Inc. Reproduction Prohibited 34

35 Summary 1. Technology, motivation, customer experience and profits are linked 2. When employees can reach flow regularly, they will be happier especially in knowledge work 3. The highest role of technology is to help employees reach and sustain flow 4. High performance computing (AI) will usher in the next era of human productivity gains 2016 Forrester Research, Inc. Reproduction Prohibited 35

36 Call to Action 1. Learn about how the brain works and what drives high performance 2. Orient your technology strategy to foster flow and helping employees get things done 3. Use customer experience and psychological research to bolster your business case 4. Get in early with AI for generating insights employees can use 2016 Forrester Research, Inc. Reproduction Prohibited 36

37 Thank you David K. Johnson LinkedIn: d-johnson/3/720/610 forrester.com

38 Keystone Habit: Daily Planning Before you do anything else, plan your most important task for the day. What will the benefits of doing it extremely well be for: Our customers Our organization as a whole Each group dependent on this task, and the people in each group My manager and my colleagues My employees Myself and my long term goals What do I want the people who know I did it to think about me? What do I want to think about myself when I ve completed it? Source: Stefan Falk, Expert Performance and Flow 2016 Forrester Research, Inc. Reproduction Prohibited 38

39 If you re a manager, the best things you can do are: Help employees reach and sustain Flow in their work Provide meaningful goals, resources, and encouragement Avoid changing goals autocratically, being indecisive, or withholding resources Give your people autonomy and help them feel connected to their colleagues Protect your people from irrelevant demands and help them manage their workloads Mitigate the effects of setbacks and negative events Celebrate progress - even incremental Think carefully about how decisions will affect their enjoyment of the work Source: Teresa Amabile, The Progress Principle, Harvard University Press 2016 Forrester Research, Inc. Reproduction Prohibited 39