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Deloitte Consulting LLPJennifer Rome

David Dye

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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

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JENNIFER ROMESenior Manager – Human Capital, Deloitte Consulting LLP

DAVIDManaging Director, Deloitte Consulting LLP

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 can help attract and engage public servants.”

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.

DYE

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External Customers

(Internal) Business Partners

Service Partners

Employees

Execs

“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

Employees as Customers: All employees in departments that provide, or support the delivery of, products or services to internal customers throughout the organization

Internal Customers: Internal recipients of internal (e.g. IT, HR) products or shared services

External Customers: People who directly engage with organizations for products, services, and/or interact with front-line employees

Sample Customer ecosystem within an organization

The enterprise and internal functions serve different internal and external customer groups

The Multilayered Customer Ecosystem

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The Evolving Customer Experience (CX) Movement

The CX focus helps drive value for companies: Customers are 5.2X more likely to purchase from companies with a great customer experience2

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 experience4

Integrated customer journeys provide a competitive advantage, in some cases doubling sales year over year5

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)

1http://blogs.gartner.com/jake-sorofman/gartner-surveys-confirm-customer-experience-new-battlefield/2https://experiencematters.blog/2015/10/06/the-ultimate-customer-experience-infographic-2015/3http://estebankolsky.com/2015/09/want-real-success-destroy-the-company-centric-customer-experience/4http://estebankolsky.com/2015/09/want-real-success-destroy-the-company-centric-customer-experience/5https://hbr.org/2015/11/competing-on-customer-journeys

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Employee experience is the sum of all experiences an employee has with a company1

Company Highlight

1 https://www.forbes.com/sites/jacobmorgan/2015/12/15/the-three-environments-that-create-every-employee-experience/#1b913e8c66c6

Employee Satisfaction

Point in time employee satisfaction survey

Employee ExperienceCultural: Recognition programs

Physical: Lounge and “Homeroom”Technological: Apps to find seating and

colleagues

The New Employee Experience (EX) Focus

• 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)

Components of EX:

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Studies show that employee interactions impact customer experience metrics across organizations and drive tremendous business value

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)

Engaged employees are 4X more likely to stay in their jobs2Retention

Increased employee engagement was accompanied by a 12% increase in customer satisfaction3

Customer Satisfaction

Companies with highly engaged workforces outperform their peers by 147% in earnings per share and 6% higher net profit margins4Profitability

Highly engaged workforces are 22% more productive than their less engaged peers5Productivity

Highlight of Key Business Metrics

The Customer and Employee Experience Connection

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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-to-day 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

CX-EX Tools and Approaches

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Pulse Check!

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)

A. 59%B. 32%C. 14%

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?

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Pulse Check!

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)

A. 59%B. 32%C. 14%

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?

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Employee Experience Emerging across the Global Marketplace

Importance in the Federal MarketGiven 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

Market Trends

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.

EX in the C-SuiteCompanies like Airbnb, GE Digital, IBM, and Forrester are creating Chief Employee Experience Officersand EX roles within HR2

Talent DisruptionsTalent trends, such as the gig economy, workplace virtualization, and a Millennial workforce mayrequire organizations to redesign the employee experience to remain competitive

EX is A Universal PriorityNearly 80% of executives rate employee experience either important or very important1

1 2017 Deloitte Human Capital Trends, Deloitte University Press (2017)1 The Workplace As An Experience: Three New HR Roles Emerge, Forbes (2017)

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

Adjusting talent strategy to appeal to a new demographic and workforce

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Slack

Virgin Pulse Telstra

DWP Digital Academy

Google

Facebook

IBM

Starbucks Coffee

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Case Study: Ford Motor Company embraces CX-EX1

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.

Business Goal:Expand business model to transform core automotive business while growing in the areas of electrification, autonomy, and mobility.

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

Strategy: Drive innovation by improving the work experiences of nearly 200,000 employees. This includes delivering high-impact HR and workforce solutions.

“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

“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

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Pulse Check!

1 The Employee Experience Advantage, Jacob Morgan, Wiley (2017)

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A.1.5XB.4XC.6X

How many times MORE profitable are companies that invest in employee experience?

Pulse Check!

1 The Employee Experience Advantage, Jacob Morgan, Wiley (2017)13

A.1.5XB.4XC.6X

How many times MORE profitable are companies that invest in employee experience?

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Employee experience defined by annualengagement surveys

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

Employee Experience: Old Way vs New Way

Employee experience defined as a holistic view of life at work, requiring constant feedback

Companies use tools and behaviors to measure, align, and improve culture during change, M&A, and other major activities

Companies have roles responsible for thecomplete employee experience, focused on employee journeys, engagement, and culture

Rewards also include nonfinancial rewards:meals, leaves, vacation policy, fitness, andwellness programs

The employee experience platform is designed, mobile, and includes digital apps, solutionsbased on employee journeys, and ongoing communications

OLD WAY NEW WAY

Call to Action: Measuring Engagement and Experience

OrganizationEmployee engagement is rooted in the organization’s culture. The organization provides the programs and policies that enable engagement to thrive.

LeadersLeaders 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 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.

EmployeesOrganizations 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.

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Call to Action: What can employees begin doing now?

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Call to Action: What can leaders begin doing now?

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21Max 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/.

Focus on experience even before employees are on board

Recruitment

Call to Action: What can the organization begin doing now?

Go beyond satisfaction surveys to be able to understand what employees are really thinking

Performance Engagement

Integrate training in the employee journey at critical moments

Learning & Development

Identify sub-groups in your talent pool by behaviors

Career Management1 2 3 4

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Recap: Start Here

EMPLOYEE EXPERIENCE

TIPS1

Look outside

Consider experiences for

the entire workforce

Embrace designthinking

Designate a senior leader or team to own in

Elevate the Employee

Experience and make it a priority

Consider the impact of

geography

Enlist C-Suite and team leader

support

Measure it

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)

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Final Pulse Check!

1 Tiny Pulse Engagement IQ, https://www.tinypulse.com/blog/whats-your-employee-engagement-iq-quiz (2016)

A. Pay and benefitsB. Leaders C. Recognition

What accounts for up to 70% of variance in engagement scores?

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Final Pulse Check!

1 Tiny Pulse Engagement IQ, https://www.tinypulse.com/blog/whats-your-employee-engagement-iq-quiz (2016)

A. Pay and benefitsB.Leaders C. Recognition

What accounts for up to 70% of variance in engagement scores?

LeadersLeaders 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.

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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

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Appendix

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Walk in their shoes Work it together

Show up Suspend self-interest

Tailor it Own it

Change the lens Say what no one else will

Bring a point of view Up their game

Success Starts with Leaders Who Make Moments Matter

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