The Networked Organization - The New Foundation for High-Performance

The New Foundation for High-performance

The NetworkedOrganization:

Polly Pearson VP Employment Brand & Strategy Engagement

EMC Corp

‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99

‘00 ‘01 ‘02

’03$

B‘04 ‘05 ‘06

.2B $9

.7B $1

’10e

A Bit about EMC and Transformation

EMC in 2006What approach should we take?

Employeerecruitment

andengagement

Globalization,diversity

andinclusion

Internalproductivity,collaboration

and innovation

Externalproductivity,collaboration

and innovation

Mgmtstyle

CareerDev.

“Not hot in the hallways” “Buttoned-down, old-school”“ I don’t know the strategy of the VP in the office

next door.” “Are we Mass-based, or are we Global?”“I feel left out of the meeting.”

From: To:1. Silos2. Command &

control3. Single skill4. Meet the need5. Short-term

1. Cross-functional2. Connected3. Broad business

knowledge4. Scalable5. Balance of short- and

long-term“me” “WE”The second important skill for our successful leaders is to have the courage to change.We’re still changing as a company. This is the model we know we have to deploy to be considered in the upper echelon of vendors.Our customers want us to make everything work seamlessly for them. To be One EMC. To be strategically relevant.Now, as we go through such changes not everyone comes along —even with coaching, development, inclusion and restricted shares!Casualties are unfortunate but necessary. We must show our courage to change. 2006

The Transformation. Click icon to add picture

Backdrop: The Move Awayfrom the Industrial Era Model

“Command & Control”

“Leadership at Every Level”

“Connection & Collaboration”

To the Networked,Knowledge Era Model

Hierarchy of Employee Traitsfor the Creative Economy

PassionCreativityInitiative

IntellectDiligenceObedience

CannotCommand(won’t commoditize)

Commodities

Illustration: Gary Hamel

Hierarchical Connected & Collaborative

From Command to Connection

Assigned roles andresponsibilities

Applied, shared interestsand passions

PUREGOLD!

“. . . and those on the inside will know that this is the ultimate place to be.”

— Polly Pearson

— Dr. John Sullivan

For Smart Talent,“Work” is a B2C Proposition

Jump-starting the Journey to the High Performance,Connected Organization

EveryoneHas aVoice

Today: 170+ communities; >70% of the workforce registered and active

Internal, Voluntary 2.0 Network . . .perspective and behavior begin to shift

The Community Brings Genuine Brand Values to Life: Innovation

People Become More Connected with the Strategy, Culture, and One Another

People Begin To Share More

“Day in the Life”

Photo SharingEvent

Hundreds photos shared from employees in Russia, Japan, Utah, Boston, and more

“The Working Mother Experience” Book EMC.com; http://www.workingmotherexperience.com Personal Stories

from EMCWorking “Moms”

15 countries96 women1 man

And a living blog:www.workingmotherexperience.com

. . . and, Courageously, Even More

Today: Dozens of bloggers; hundreds of micro-bloggers

And thousands of employees who suddenly feelwelcomed to sharethat they care

Organic Brand Ambassadors Emerge:Home Grown, Enthusiastic, Expert Voices

Ambassadors Engage with Customers, Developers, and Partners

• Building relationships

• Honoring “rock stars”

• Developing products

• Increasing revenue• Improving service • Reducing support

costs • Providing

certification on products

• Building loyaltyFree.

“100 Job Search Tips” eBook

AmbassadorsEngage with Prospective Talent

Internal “reality TV”

Executives Catch On – Sharing with a Genuine, Human Voice

The real magic happens in the “Unofficial” Engagement

“Constructive ideas to save money?” 400 + ideas

30,000 + views

CFO reporting back

Ideas being put to use; employees feel heard

Company saving money

Connecting with the Bottom Line

Innovation Idea Contest“The Country Cup”

Grass Roots Global Peer voting

fosters connection with others, ideas

“Country Cup”competition adds spark

Connecting with Innovation

Connecting with Hope

Connecting with Future Employees:“Why I work at EMC”

Connecting with Customers

EVP of HR interviewing . . .new executive hire . . .on YouTube!

Connecting with the Story

Expanding Your Network to Millions

Blogs on EMC Culture & Careers

Facebook: EMC Careers

TWITTER: EMC Careers

Engagement Opportunities Become Like Viral Fly Paper Blogs

FacebookTwitterYouTube

$18,600more market value

per employee

$3,800more profits

per employee

$80,000–120,000additional revenue

per month

Higherprofitability

Highercustomer

loyalty

Recruitmentcosts 55%

Fortune 500 Companies withEngaged Employees Report:Growth in employee productivity

Source: Impact of Engaged Employees on Business Outcomes. Ongoing Employee Engagement Research, Hewitt Associates

Quiz: Commitment DriversWhich do you think are the top 5 satisfiers for employees today?

Source: EMC Corp; Corp Exec Board

____ High pay

____ Good benefits

____ Social, environmentalresponsibility

____ Product quality

____ Collegial work environment

____ The right people get recognized and promoted

____ “Great employer” recognition

____ Ethics and integrity

____ Empowerment; ability to innovate

____ Recognition

____ Skill and career development

____ Treated with respect;people management

____ Interesting work;job/skills alignment

Quiz: Commitment DriversWhich do you think are the top 5 satisfiers for employees today?

Source: EMC Corp; Corp Exec Board

____ High pay

____ Good benefits

____ Social, environmentalresponsibility

____ Product quality

____ Collegial work environment

____ The right people get recognized and promoted

____ “Great employer” recognition

____ Ethics and integrity

____ Empowerment; ability to innovate

____ Recognition

____ Skill and career development

____ Treated with respect;people management

____ Interesting work;job/skills alignment

Results: Snapshot

Additional revenue

Highercustomer

engagement

Additional Innovation

More MarketValue perEmployee

Better Recruitme

ntVolume

and Speed

More +More FavorableMedia Coverage

HigherEmployee

Engagement

Additional profit

EMC’s ROI

Personal Satisfaction

Enjoy Co-workers

95% 92%93%

Manager Integrity

*Based on 30,827 responses from 92% of employees

Employee Survey Results*

RESULTS

EmployeeSatisfaction

andMotivation

Ratings

CustomerSatisfaction

RatingsRevenue Cash Flow

Innovationand

Market Share

Best PlaceTo WorkAwards

RECORD

EMC’s 2009 Score Card

Key Elements “Lessons” in Our Journey (so far)

• Inside out– Get good behind the firewall, then go outside

• A “coalition of the willing”– Cross-functional, global – and at all levels of the organization

• Clearly defined “corporate champions”– All initiatives need a “face” and a “voice”

• The “3 Es” – Enablement, Empowerment and Encouragement– avoid corporate mandates

• Lightweight governance– Use it sparingly, (e.g., “guidelines” vs. “policies”)

• Celebrate and promote successes– Increases the velocity of change in the organization

• Have patience– It takes time for perceptions and behaviors to change

Your Photo Goes Here.

What the journey could look like.

2010 2011

Something in the Air

Reverse Mentorsfor BOD& Top Execs

BOD & CEOAir Cover

Explore & Listen

BOD Share Notes

Big Gun Champion Assigned

“CommandComm”

Marketing, HR + IT Connect

“WorkforceProficiency”

InternalEnthusiasts

Internal Network “launch”

Rolling purchase of software seats

Lunch & Learns

Viral evangelism: WIIFY, Peer mentoring

Communities grow

Trust Builds

“Rock stars” discovered

Employees Go External

“Blog Corps Groomed”

Investment Idea “Flow”

2.0 Behavior among managers & execs

Flattened Escalation;Heightened Decision Making Ability

Lowered Cost Structure

Connected Workforce

Connected Supply Chain

Connected with Customers

Destination for top talent – “cool”

New Tricks

1.Lead with Trust 100% of your employees are adults; 99.9% do not want to be fired

2.Listen to the conversations and tone of web 2.0 behaviorSupportive, collaborative, peer-to-peer mentoring, idea rich

3.Share information openly internally; question why not share this? Why not ask the company community help with this?

. . . and watch people be inspired, while they help you!

Some Observations: The Big Border Disappearing Act

Employees

Customers,Prospects, Communities

We are at a rare inflection point in business,similar to the dawn of the industrial era.

Ideas Innovation Success

HierarchiesGeographies

AgeRace

Degrees

Leadership & Action

BLOG: http://www.pollypearson.com

EMAIL: pearson_polly@emc.com

STAY IN TOUCH.

Appendix

EMC’s Timeline

2006 2007

Something

in the Air

Research: Tools & Culture

InternalEnthusiasts

Marketing, HR + IT Connect

“WorkforceProficiency”

EMC| ONE “soft launch”

Rolling purchase of software seats

Lunch & Learns

Viral evangelism: WIIFY, Peer mentoring

Communities grow

“Rock stars” discovered

Employees Go External

“Blog Corps”

Record Employee Engagement, Profit, and Revenue

2.0 Behavior among managers & execs

EMCers Top Industry Blog Ranks

EMC Ranked World Most Admired Company + Top Social Brand

EMC|ONE: 50%+ of employee population active, 160+ communities

Facebook & Twitterrecognized as a business tool

The Networked Organization - The New Foundation for High-Performance

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