Enabling the Digital Organization. Michael Gretczko, Principal, Deloitte Consulting LLP

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2 Enabling the Digital Organization Michael Gretczko, Principal, Deloitte Consulting LLP

Technology Rate of change Individuals Businesses Public policy 1970s 1980s

8 HR Reinvented for the Cognitive Era Diane Gherson, IBM CHRO

9 One size does not fit all IBM HR Reinvented for the Cognitive Era

10 Transforming HR To what extent are you transforming HR? We see change coming. We are actively planning major changes in HR. We have already started reshaping the HR of the future. Already there - We have a fully digitized, cognitive, agile HR function. IBM HR Reinvented for the Cognitive Era

11 Our Strategy Our Expertise Our Structure Our Systems Our Leaders Our Culture Strategic Shift New Skills Simpler Organization New Ways of Working New Ways of Leading Agility and Innovation IBM s transformation journey IBM HR Reinvented for the Cognitive Era

12 IBM HR Reinvented for the Cognitive Era

13 IBM HR Reinvented for the Cognitive Era

14 IBM HR s transformation journey: > $750M net benefits Develop Grow Deploy Attract Retain Engage Your Learning Skills Inference Feedback App Predictive Leadership Watson Career Coach IBM Expertise Proactive Retention Cognitive Talent Alerts Cognitive Onboarding Tool Watson Right Fit Sentiment Analysis Cognitive Chatbot CogniPay IBM HR Reinvented for the Cognitive Era

15 IBM HR Reinvented for the Cognitive Era

16 IBM HR Reinvented for the Cognitive Era

17 IBM HR Reinvented for the Cognitive Era

18 IBM HR Reinvented for the Cognitive Era

Design Thinking Listen Prototype Playback

200,000 views 17,000 votes #1 Checkpoint

19 Design Thinking Listen Prototype Playback Iterate Playback Iterate Design Thinking Workshop Invitation to Co-create Deliberation Forums Polling Questions Prototype Experience Refined Experience Announce and name program Co-creation with 380K IBMers: New Performance Management Program 50 participants 100 active sponsor users 2,000 comments 75,000 views 5,000 comments 88,000 views 1,400 comments 24,000 responses 19,000 testers 600 name ideas 700 comments 200,000 views 17,000 votes #1 Checkpoint Timeline July August September October IBM HR Reinvented for the Cognitive Era

20 CHATTER VOLUME April 7, 2015 April 8, 2015 April 9, 2015 IBM HR Reinvented for the Cognitive Era

21 IBM policy reversed CHATTER VOLUME Employee sentiment returned to normal Social sentiment pick-up Negative chatter begins April 7, 2015 April 8, 2015 April 9, 2015 IBM HR Reinvented for the Cognitive Era April 10, 2015 April 11, 2015

22 The new mindset % Promoters - % Detractors Detractors Passives Promoters Net Promoter Score Excellent 41 to Above Average 26 to 40 Average 9 to 25 Below Average -26 to 8 Failing -100 to -27 IBM HR Reinvented for the Cognitive Era

23 New expectations of HR Trust me Intuitive Grounded in best practices Roll-out programs Flawless process Show me Predictive Grounded in data Agile offering releases High-impact outcome IBM HR Reinvented for the Cognitive Era

24 Our path to even higher value Even Higher Value Co-creation Authenticity Agile as a culture AI for better decisions Reinvention of HR Consumer-grade experience Transparency Agile methods AI for higher productivity Better HR IBM HR Reinvented for the Cognitive Era

25 HR Reinvented for the Cognitive Era Q&A

About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure.

This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of

26 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2017 Deloitte Development LLC. All rights reserved.