5/16/2017 Deloitte Consulting LLP Jennifer Rome David Dye 1 Employees as Customers The Power of Employee Experience and Engagement Today s Goals: Understand the different types of customers that exist in organizations Understand the powerful connection between customer and employee experience and how treating employees as customers is a driver of mission performance Identify where CX-EX is working in the public and private sectors Start using EX and engagement strategies in your organization 2 1
JENNIFER ROME Senior Manager Human Capital, Deloitte Consulting LLP DAVID DYE Managing Director, Deloitte Consulting LLP Jennifer is a Senior Manager with Deloitte Consulting LLP focusing on organizational transformations that align and equip the workforce to deliver on business strategy. She specializes in improving employee experience through talent interventions to drive customer experience. She has over 15 years of experience collaborating with public and private organizations to drive strategic change. Dr. David Dye is a Managing Director with Deloitte Consulting LLP with over 30 years of leadership and management consulting experience across the public and commercial sectors. As a Director in Deloitte s Human Capital Practice, he is a leader in helping organizations drive engagement across all levels. His areas of specialization span the human capital lifecycle for attracting, developing, and retaining talent. Dr. Dye has presented internationally and has been published in various professional journals, including the Deloitte University Press article, Employees as Customers: How design thinking and customer experience tools 3 can help attract and engage public servants. The Multilayered Customer Ecosystem The enterprise and internal functions serve different internal and external customer groups Sample Customer ecosystem within an organization External Customers (Internal) Business Partners Service Partners Employees Execs External Customers: People who directly engage with organizations for products, services, and/or interact with front-line employees Internal Customers: Internal recipients of internal (e.g. IT, HR) products or shared services Employees as Customers: All employees in departments that provide, or support the delivery of, products or services to internal customers throughout the organization It s actually the interactions between employees and customers that are the most important drivers of customer experience. -Rick Parish, Principal Government Customer Experience Analyst, Forrester Research 4 2
The Evolving Customer Experience (CX) Movement In the past decade, many companies have shifted from a narrow focus on customer satisfaction to embracing the entire customer experience Customer Satisfaction (A measure of how pleased customers are with a product or service) Customer Experience (The sum of all experiences a customer has with a company) The CX focus helps drive value for companies: Customers are 5.2X more likely to purchase from companies with a great customer experience 2 86% of customers are willing to pay more for an upgraded experience (think air travel and hospitality) 3 72% of consumers will tell 6+ people about a positive customer experience 4 Integrated customer journeys provide a competitive advantage, in some cases doubling sales year over year 5 1 http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/ 2 https://experiencematters.blog/2015/10/06/the-ultimate-customer-experience-infographic-2015/ 3 http://estebankolsky.com/2015/09/want-real-success-destroy-the-company-centric-customer-experience/ 4 http://estebankolsky.com/2015/09/want-real-success-destroy-the-company-centric-customer-experience/ 5 5 https://hbr.org/2015/11/competing-on-customer-journeys The New Employee Experience (EX) Focus Employee experience is the sum of all experiences an employee has with a company 1 Components of EX: Cultural Environment the vibe of a workplace; its values, practices, leadership style, and employees sense of purpose Physical Environment the design of a workspace; what we can see, touch, and smell, and even the demographics of employees Technological Environment the tools employees use to get their jobs done (e.g. apps, software, and an organization s internal social network) Company Highlight Employee Satisfaction Point in time employee satisfaction survey Employee Experience Cultural: Recognition programs Physical: Lounge and Homeroom Technological: Apps to find seating and colleagues 6 1 https://www.forbes.com/sites/jacobmorgan/2015/12/15/the-three-environments-that-create-everyemployee-experience/#1b913e8c66c6 3
The Customer and Employee Experience Connection Studies show that employee interactions impact customer experience metrics across organizations and drive tremendous business value Highlight of Key Business Metrics Retention Engaged employees are 4X more likely to stay in their jobs 2 Customer Satisfaction Increased employee engagement was accompanied by a 12% increase in customer satisfaction 3 Profitability Companies with highly engaged workforces outperform their peers by 147% in earnings per share and 6% higher net profit margins 4 Productivity Highly engaged workforces are 22% more productive than their less engaged peers 5 1 The Truth about CX, Harvard Business Review (2013) 2 Corporate Leadership Council Employee Engagement Survey 3 Social Knows: Employee Engagement Statistics (2011) 4 Gallup's 2016 Q12 Meta-Analysis 5 Employee Engagement Does More than Boost Productivity, Harvard Business Review (2011) 7 CX-EX Tools and Approaches The tools that marketers use to understand and design for the customer experience can be applied to research and design for the employees experience Tools and Approaches Description Benefits Segmentation Divides customers or employees into groups by attitudes, behaviors, and/or interactions with an organization Highlights meaningful differences that go beyond seemingly monolithic demographic groups Ethnographic Research The study of customers or employees in their day-today environment Combines observations and one-on-one interviews Rich detail about an employee or customer experience Ability to uncover hidden or less-obvious drivers of behavior Persona Development A representation of a cluster of customers or employees that exhibit similar behaviors, attitudes, and motivations Allows designers to put themselves in the users shoes Journey Mapping Shows the emotional journey of an employee or customer through a process and at various touchpoints with an organization Identifies Moments of Truth critical inflection points that drive behaviors and perceptions Rapid Prototyping Rapid creation and testing of solutions based on design principles uncovered through research and analysis Allows designers to quickly and cheaply test solutions and make modifications based on user feedback 8 4
Pulse Check! According to Deloitte s global human capital trends report, what percentage of survey responders felt they were NOT ready to address the employee experience challenge? A. 59% B. 32% C. 14% 1 Deloitte Global Human Capital Trends, https://dupress.deloitte.com/dup-us-en/focus/humancapital-trends/2017/improving-the-employee-experience-culture-engagement.html (2017) 9 Pulse Check! According to Deloitte s global human capital trends report, what percentage of survey responders felt they were NOT ready to address the employee experience challenge? A. 59% B. 32% C. 14% 1 Deloitte Global Human Capital Trends, https://dupress.deloitte.com/dup-us-en/focus/humancapital-trends/2017/improving-the-employee-experience-culture-engagement.html (2017) 10 5
Employee Experience Emerging across the Global Marketplace Both public and private organizations consider a positive employee experience critical to their success and many are taking a holistic approach to understand and help improve this experience. Market Trends EX is A Universal Priority Nearly 80% of executives rate employee experience either important or very important 1 Talent Disruptions Talent trends, such as the gig economy, workplace virtualization, and a Millennial workforce may require organizations to redesign the employee experience to remain competitive EX in the C-Suite Companies like Airbnb, GE Digital, IBM, and Forrester are creating Chief Employee Experience Officers and EX roles within HR 2 Importance in the Federal Market Given that the new Administration tends to view government through a business lens, the importance of customer experience as a way to drive measurable returns is likely to increase 1 2017 Deloitte Human Capital Trends, Deloitte University Press (2017) 1 The Workplace As An Experience: Three New HR Roles Emerge, Forbes (2017) 11 Employee Experience Emerging in the Market How are some of the highest-performing organizations leading the EX trend? Embracing digital tools and mobile apps Incorporating design thinking Revamping performance management and rewards/retention programs Innovating work space to be a flexible and collaborative environment Crowdsourcing for employee ideas Slack Virgin Pulse Google DWP Digital Academy Telstra IBM Adjusting talent strategy to appeal to a new demographic and workforce Facebook Starbucks Coffee 10 6
Case Study: Ford Motor Company embraces CX-EX 1 Business Goal: Expand business model to transform core automotive business while growing in the areas of electrification, autonomy, and mobility. Strategy: Drive innovation by improving the work experiences of nearly 200,000 employees. This includes delivering high-impact HR and workforce solutions. Approach: Conducted a global listening tour to better understand the employee experience Implemented a 3-week global people strategy lab for HR leaders Deployed a companywide polling process to let employee contribute ideas and rank HR products Segmented the workforce and developed moments that matter for each segment Results: Produced a new people strategy, HR vision, integrated plan, and business case Created a new global HR operating model and technology platform with digital HR apps Developed HR products and services that are more integrated and focused on the employee experience Ford s people strategy and the HR transformation are now considered integral to the company s focus on innovation and a new way of doing business. Our mission is to make employees lives better by changing the way we think about work, feel about work, and the way we do our work differently. - Felicia Fields, Group Vice President, HR and Corporate Services 1 Deloitte Global Human Capital Trends, https://dupress.deloitte.com/dup-us-en/focus/human-capital-trends/2017/improving-the-employee-experience-culture-engagement.html (2017) 11 USPS embraces the link between Customer and Employee Experience From the big picture to the front lines USPS launched a CX Council and EX roadmap dedicated to defining and supporting front line employees. USPS uses ethnographic research and journey maps to understand, and design for, their customers AND their employees 12 7
Pulse Check! How many times MORE profitable are companies that invest in employee experience? A.1.5X B.4X C.6X 1 The Employee Experience Advantage, Jacob Morgan, Wiley (2017) 13 Pulse Check! How many times MORE profitable are companies that invest in employee experience? A.1.5X B.4X C.6X 1 The Employee Experience Advantage, Jacob Morgan, Wiley (2017) 13 8
Employee Experience: Old Way vs New Way OLD WAY Employee experience defined by annual engagement surveys NEW WAY Employee experience defined as a holistic view of life at work, requiring constant feedback Culture is a topic on the company website, but not measured or defined through behavior Companies have a series of HR leaders across recruiting, learning, rewards, engagement, and other HR services Rewards are designed to cover salary, overtime, bonus, benefits, and stock options Employee self-service is viewed as a technology platform that makes it easy to complete HR transactions and report Companies use tools and behaviors to measure, align, and improve culture during change, M&A, and other major activities Companies have roles responsible for the complete employee experience, focused on employee journeys, engagement, and culture Rewards also include nonfinancial rewards: meals, leaves, vacation policy, fitness, and wellness programs The employee experience platform is designed, mobile, and includes digital apps, solutions based on employee journeys, and ongoing communications 17 Call to Action: Measuring Engagement and Experience Organizations should consider a more holistic view of the way they engage their workforce. Everyone plays a role in building and sustaining engagement, including the organization, leaders, managers, and employees. Leaders Leaders create the organizational culture and provide support for employees as they strive to engage in the workplace. Leaders at all levels have a critical role to play in creating an engaging environment. Employees Employees control their path to engaging at work. While the organization and leaders set the culture and provide the support and resources, employees can take steps to engage at work. Employees can also make a significant contribution to the engagement of their teams. Organization Employee engagement is rooted in the organization s culture. The organization provides the programs and policies that enable engagement to thrive. 16 9
Call to Action: What can employees begin doing now? 17 Call to Action: What can leaders begin doing now? 18 10
Call to Action: What can the organization begin doing now? 1 2 3 4 Performance Engagement Learning & Development Recruitment Focus on experience even before employees are on board Go beyond satisfaction surveys to be able to understand what employees are really thinking Integrate training in the employee journey at critical moments Career Management Identify sub-groups in your talent pool by behaviors Max Meyers, Hannah Roth, Eric Niu, and David A. Dye. Employees as customers: Reimaging the employee experience in government. Deloitte University Press, May 31, 2016. http://dupress.com/article/treating-employees-as-customers-in-government/. 21 Recap: Start Here Measure it Elevate the Employee Experience and make it a priority Designate a senior leader or team to own in Consider the impact of geography Enlist C-Suite and team leader support EMPLOYEE EXPERIENCE TIPS 1 Look outside Embrace design thinking Consider experiences for the entire workforce 1 Deloitte Global Human Capital Trends, https://dupress.deloitte.com/dup-us-en/focus/humancapital-trends/2017/improving-the-employee-experience-culture-engagement.html (2017) 22 11
5/16/2017 Final Pulse Check! What accounts for up to 70% of variance in engagement scores? A. Pay and benefits B. Leaders C. Recognition 1 Tiny Pulse Engagement IQ, https://www.tinypulse.com/blog/whats-your-employee-engagement-iq-quiz (2016) 23 Final Pulse Check! What accounts for up to 70% of variance in engagement scores? A. Pay and benefits B. Leaders C. Recognition 1 Leaders Leaders create the organizational culture and provide support for employees as they strive to engage in the workplace. Leaders at all levels have a critical role to play in creating an engaging environment. Tiny Pulse Engagement IQ, https://www.tinypulse.com/blog/whats-your-employee-engagement-iq-quiz (2016) 24 12
Today s Session Recap Discussed the link between CX and EX and the importance of creating customer-centric organizations Deconstructed the meaning of employee experience and how it is different from engagement Shared leading practices of CX and EX at Postal and in the Market Provided a call to action on ways to shift thinking and behaviors to treat employees as customers 25 Appendix 26 13
Success Starts with Leaders Who Make Moments Matter Walk in their shoes Work it together Change the lens Say what no one else will Show up Suspend self-interest Bring a point of view Up their game Tailor it Own it 27 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. 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. 28 14