UNLOCKING VALUE IN THE TECH/HUMAN RELATIONSHIP

A New Framework for Multiplying Productivity through Technology

By Nick Wilkinson, CEO, Vitalyst

October, 2015

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Enterprise technology is advancing at an unprecedented rate. But as computing power and IT investments continue to increase, the impact on end-user productivity is diminishing. To solve this, CIOs and other IT leaders must shift from a “tech-centric” approach to a “human-centric” model that puts a greater focus on the end-user. This is best achieved through a framework that considers connecting with users on four key value drivers.

Moore’s Law and the Explosion of Computer Processing Power

In 1965, Intel cofounder Gordon Moore made a prediction that ultimately became the golden rule in the tech world. Based on trend data and his own research, he theorized that the number of transistors that can be packed into a given unit of computing space will roughly double every two years. Although many experts dismissed it as pure tech optimism, his prediction held true. In a 2015 interview with the New York Times, Moore pointed out that Intel’s latest chip costs 60,000 less than its fi rst generation microchip.

Although not technically a “law,” this steady drum beat of tech progress has opened the door for everything from the tiny sound chips found in bir thday cards to the vast computerization and ubiquitous connection of our knowledge-based economy.

Solving the U.S. Productivity Paradox

But as Moore’s pace of technology innovation grows at 50 percent annually, its impact on worker productivity lags at a disappointing 3 percent. This disconnect highlights the important role of humans in the overall tech/human relationship.

According to government fi gures, worker productivity in the United States began increasing at an annual rate of 1 percent to 1.5 percent around the early 1970s just as computers entered the picture (Bureau of Labor Statistics, 2011). The initial rise of the Internet led to a slight uptick to 2.9 percent (Bureau of Labor Statistics, 2003) – and recent fi gures from mid-2015 have the year-to-year rate holding steady at 0.7 percent growth (Bureau of Labor Statistics, 2015) – but nothing close to the explosion seen in tech innovation. This is often rationalized by the IT knowledge disparity between the developers and IT innovators that thrive on the bleeding edge. Yet, the average worker is often two or three systems behind.

The Exponential Growth of Computing Power

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Unlocking Value in the Tech/Human Relationship: A New Framework for Multiplying Productivity through Technology

Source: Grossman, 2011

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Often referred to as the Productivity Paradox or the Solow Paradox (after American economist Robert Solow), this idea was explained in detail by MIT’s Erik Brynjolfsson, now a world-renowned IT Productivity expert, in his famed 1993 Communications of the ACM piece titled, “The Productivity Paradox of Information Technology.” He explains that shortfalls in productivity across all sectors have led to pervasive disappointment in IT despite no true way to measure that productivity and the impact of said IT on it.

The biggest issue with IT and productivity began in the 1970s, when the rate of productivity growth began to slow. Initially, economists and researchers found this residual drop difficult to explain. Eventually, the most startling correlation they found was that this productivity dip generally coincided with the increased use of IT among businesses worldwide (Byrnjolfsson, 1993).

There have been rebounds in productivity since that initial, counter-intuitive drop more than 40 years ago. Technology—or more accurately employee proficiency with technology—today has an even greater impact upon economy-wide productivity than it did back then. And of course, technology’s importance to the workplace will likely continue to grow well into the future.

Only by understanding the causes of this so-called “productivity paradox” can enterprises learn how to identify and remove the obstacles to higher productivity growth.

The principal victims of this disparity in technology efficiency and productivity continue to be today’s enterprises. The pace of technological change is outpacing the speed at which workers can absorb these new capabilities while continuing to complete their daily work. While upgrading technology for newer, better, faster models works great on paper, humans aren’t as easily upgradable as the computers they use.

As tablets, smartphones, applications and other advanced technologies become more integral to the way today’s businesses operate, it is becoming increasingly critical that employees at all levels of an enterprise become not only proficient in technology but experts in the software they use on a daily basis.

Tracking the Elusive Worker Productivity Data

At its base level, productivity is not difficult to define— it is the ratio of outputs and inputs. But as businesses have moved away from traditional brick and mortar models to more digitally supported models, the ability to measure productivity has become significantly more challenging. It includes more factors, variables and issues than ever before.

While there are a multitude of factors to consider when measuring productivity, there are some recurring themes. A recent report commissioned by ServiceNow found that 9 in10 managers say employees’ productivity depends on efficiency of routine processes such as IT support, and 4 in 5 managers say these routine processes cause significant delays (ServiceNow, 2015). It is employees’ most basic tasks that are sucking away what little time they have from being truly productive to solve the problems of technology illiteracy.

“You can see the computer

age everywhere but in the

productivity statistics.”

— Robert Solow, father of the Solow computer paradox, 1987

“[Organizations] need to

reexamine how information

workers spend their time

and look for ways to shift a

greater percentage of it to

real value creation.”

—IDC, 2012

Only by understanding the causes of

this so-called “productivity paradox”

can enterprises learn how to identify

and remove the obstacles to higher

productivity growth.

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Productivity Breakdowns and Barriers

According to IDC, the most common causes of the information worker productivity gap are not with complex technology issues but rather simple document management. Specifi cally, today’s information workers are lacking the proper tools and resources necessary to make them more productive when: creating and managing documents, collaborating around documents and working with forms, and working with documents on mobile devices. The study also found that signifi cant gaps remain in what information workers are looking for and what IT departments feel they need ( Source: IDC).

Most IT departments are not fully aware of the biggest issues that plague information workers on a daily and monthly basis. Rather, they are mostly conscious of glitches with technology itself that, while critical to repair, do not impact productivity over the long term as considerably as users’ lack of technology profi ciency.

Instead, most information workers will turn to a non-IT colleague to solve a technology or software issue. This not only disrupts the productivity of the original information worker, but hinders the productivity of the individual tasked with assisting on the project.

And for those IT departments who actually are tasked with solving common technology usage and awareness questions, they are falling victim to their own productivity disturbances when time could be better spent focusing on innovation.

Delivering a positive return-on-investment is an ongoing challenge for IT leaders and CIOs. Since early humans began using the fi rst technology—fi re and hand tools—individuals and groups unable to use technology profi ciently get left behind.

For an enterprise with employees who are not profi cient in the technology they use every day, the company as a whole suffers as a result of the technology pitfalls.

The 5 Personalities of Tech-Frustrated Employees

Turning frustrations around, increasing employee profi ciency and, eventually, enterprise-wide productivity is a challenge. These fi ve distinct personality types of tech-frustrated employees have been identifi ed so that IT leaders can recognize them, understand them, and adjust their approaches accordingly. But until an enterprise asks for help, these types of people will always hurt productivity…

The Apologizer Submits and sends documents with a callout apologizing for low-quality work, refusing to ask for help, not taking advantage of technology investment, and painting technology as the scapegoat.

The Interrupter Disrupts concentration by asking others to accomplish routine technology tasks,interrupting other employees’ workfl ow, constantly triaging with members of the IT service desk, and spending more time fi guring out small tech issues than on substantive work solutions.

The Delegator Pawns off work on co-workers, asking them to complete the task instead. Wastes two employees’ time at once by refusing to learn new technology and frustrating those around them.

The Quitter Gives up completion of critical tasks because of tech complaints, creating ineffi ciencies, dropping the ball, viewing technology as non-essential, and causing others to follow suit.

The Exploder Views technology as the enemy, throwing tech temper tantrums through furious key-typing, laptop computer-slamming, violent phone-shaking, and forceful button-pressing.

There will always be disparate personality types within all industries, but as technology becomes more and more essential to productivity, managers need to be aware of their employees’ frustrations, the ways they manifest themselves, and use a human-centric model to prevent them.

Since early humans began using the fi rst technology—fi re and hand tools—individuals and groups unable to use technology profi ciently get left behind.

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Migration MishapsOften, the worst sources of these pitfalls come during software migrations. Enterprises spend large percentages of their IT budgets on installing and implementing new software to make the company operate more effectively and efficiently. Many hours are spent envisioning, planning, building testing, piloting, and deploying this new technology, but once it has been implemented, the most critical component of the migration’s success—the employees who will be using it—is often ignored.

Despite initial onboarding seminars, webinars, and educational opportunities the company provides, the disparate learning styles of today’s information workers and the hiring of new employees will always leave individuals behind, creating a user adoption cliff where the value of the technology is reduced significantly over time. Without access to continuous software coaching and tools, enterprises will be operating below full or even half efficiency, forfeiting significant amounts of productivity due to employees who lack the skills and/or training to competently use their software.

The Hard and Soft Costs of Low Productivity

Though it is universally agreed that issues with IT and software cost enterprises opportunities for productivity, and CIOs across the globe have made it a focus to help their businesses increase productivity through technology, calculating the true dollar value lost when productivity is wasted can be challenging due to the many unique factors involved.

According to the results of one survey conducted by IDC, the actual number is quite disturbing. Using a mix of information workers (employees who are connected to the Internet and use a computer to work with

documents on a weekly basis as part of his/her job) making an average yearly salary of $75,000 per year, the study found that enterprises lose $19,732 per information worker, per year on wasting time with IT issues. This amounts to a loss of 21.3 percent of the organization’s overall productivity. For an organization with 1,000 employees, covering these loses would be equal to hiring 213 new employees (Source: IDC).

While this is a shocking statistic, worse still is the opportunity cost enterprises surrender when their employees are not using their technology effectively. Average worker career growth is reduced, business goals are missed and creativity is lost. IT worker innovation is sacrificed because time is spent solving menial issues instead of developing new solutions. And overall growth of the company is hindered because of these inefficiencies.

The dollar costs of IT productivity breakdowns

$19,732

lost per information worker, per year on IT breakdowns.

21.3% loss in overall organizational productivity

Source: Webster, 2012

IT SUPPORT• LOW AWARENESS• LOW RETENTION• BUGS

USER-ADOPTION CLIFFVALU

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ENVISION PLAN BUILD TEST PILOT DEPLOYMENT POST-DEPLOYMENT ADOPTION ONGOING PRODUCTIVITY

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THE MIGRATION JOURNEY

TRADITIONAL IT SUPPORT

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New Framework for Multiplying Productivity through Technology

Delivering a positive return on investment is an ongoing challenge for IT leaders and CIOs. Research has shown that when employees are more profi cient with the tools they use daily, it leads to overall enterprise productivity.

To solve these issues, there is a framework enterprises can use to drive the value of their IT investments and multiply the productivity of their employees. Enterprise productivity is waiting to be tapped into, yet it is trapped in the information worker’s ability to use the technology available to them to its full potential.

CIOs and other IT leaders must shift from a “tech-centric” approach to a “human-centric” model that puts greater focus on the end-user, eliminates frustrations with technology and shifts worker personalities from technophobia to technophilia. The four vital value drivers to follow have been identifi ed to increase end-user profi ciency and enterprise productivity to help solve those IT challenges.

To solve these issues CIOs and other IT leaders must shift from a “tech-centric” approach to a “human-centric” model.

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Human-Centric Awareness and Usage

The fi rst value driver is awareness and usage. IT leaders must begin treating end-user

technology awareness and usage not as an after thought, but as a fundamental guiding principal

and need-to-have in creating successful enterprise productivity. Even the smallest efforts to track,

monitor and improve usage delivers powerful increases in worker and enterprise productivity.

A C T I O N S T E P S

COMMUNICATE REASONINGEnterprises must be upfront with their employees in explaining the necessity of being able to fully operate all software available to them without issue. Employees who are profi cient in their technology usage deliver better results and increased productivity and are more satisfi ed in their work (Amabile and Kramer, 2011).

INCENTIVIZE END-USERSSolving an issue for an end-user once without providing them with the tools and skills they need to complete the task in the future is a time waste. Providing information workers with incentives to self-suffi ciently use the technology available to them will make them more likely to retain information and seek out more opportunities to grow in the future.

TRACK AND MONITOR USAGEWorkers tend to use only a small fraction of the workplace technology available to them. Even the smallest efforts to track, monitor and improve awareness and usage of this technology can deliver powerful boosts to individual and, eventually, enterprise productivity.

Enterprise ResultsMaking information workers aware of and able to profi ciently use the technology available to them can help enterprises realize up to 10-25% in productivity gains.

Common challenges

• No awareness of technology’s availability

• No usage of available technology

• Problems and frustrations with applications

• Regular disruptions to workfl ow

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Common challenges

• Problems and frustrations with applications

• Disruptions to workfl ow

• Little to no continuous improvement

• Stagnant technology innovation

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The second value driver is problem solving. IT leaders must recognize that end-users’

frustrations with technology are not just problems or hiccups in the process—they are actually

“pain-portunities.” They provide IT leaders a chance to connect with end-users, not only solving

their technology issues but teaching them how to get the most out of that technology based on

their goals. Creating connection points through pain points can often lead to lasting relationships

when handled with patient conversations and human-driven solutions.

A C T I O N S T E P S

CUSTOMIZED TO LEARNING STYLESIndividuals learn skills at different speeds, in different ways and through different processes.

Helping information workers solve problems in a way that is customized to their personal

learning style leads to longer-term solutions and employees who feel at ease knowing they

will not be overwhelmed by the introduction of new technology. Resources will be there to

help them in a way they can understand.

SOLVING PROBLEMS, NOT ENDING CALLSToo often customer service calls today are focused on getting the caller off the phone as

quickly as humanly possible. This may solve a singular issue once, but fails to deliver long-term

productivity gains because the user is getting one answer and not a range of solutions.

It’s shortsighted and self-serving.

GETTING TO THE ROOT OF THE ISSUETechnology problem solving should always be approached with end goals in mind. To solve a

problem over the long term, IT must fi rst get to the root of the user’s issue. What is the overall

objective the caller is trying to achieve? What information are they trying to convey? Who do

they want to infl uence with this information? When IT understands the real challenge, they can

help the individual do more than solve a short-term problem, by getting them to think more

broadly, leading to future skill enhancement.

Enterprise Results

Providing problem solving solutions to end-users that reduce the issues they have with the software technology they use on a daily basis can help enterprises realize up to 25-50% in productivity gains.

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Human-Centric Skill Building

The third value driver is skill building. IT leaders need to recognize that end-users’

computer skills must be continuously developed as technology evolves. The standard

for end-user profi ciency should be set higher than “we don’t have problems anymore.”

The idea is to set goals for end-users and incentivize them to develop and hone their skills.

A C T I O N S T E P S

THE SYSTEMATIC APPROACHBy creating a systematized, skill-building approach that balances worker profi ciency with

business goals, end-user productivity will keep pace with technology advancements. When

end-users are building skills on a regular basis, the enterprise will feel the results through

more effective collateral, quicker project turnaround and increased opportunities for

growth and innovation.

PROVIDING TOOLSAs mentioned at the problem solving step, users learn in different ways through different

methods of teaching. Providing information workers with a variety of learning tools,

including one-on-one skill building, videos, webinars, and in-person seminars, helps

employees increase their productivity potential on the software they use daily.

CONTINUOUS LEARNINGProviding skill building opportunities solely around software migrations or other one-

time events leaves behind new employees, absent employees and those whose learning

styles may or may not align with typical training methods. By making available ongoing skill

building avenues, enterprises are ensuring every employee continually has the resources

he or she needs to grow and develop into a more profi cient user of technology and a

more productive contributor.

Enterprise ResultsProviding ongoing skill-building opportunities for end-users helps them become more effi cient, productive employees and in turn can help enterprises realize up to 50-75% in productivity gains.

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Common challenges

• Disruptions to workfl ow

• Sporadic improvement in tech profi ciency

• Stagnant technology innovation

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Human-Centric Technology Innovation

The highest value driver of the new framework is tech innovation. It is critical that benchmarks are put in place before, during and after any digital investment to measure the success of a project and determine where adjustments or reallocation of resources need to be made. Despite this, only 56 percent of organizations create a business case for digital initiatives, and only 36 percent of fi nance executives agree that the metrics they use to assess technology investments are commonly understood across the company (Colas, 2004). Without knowing where the return on investment lies or why the investment should be made in the fi rst place, executives will miss out on the most critical component of any technology implementation’s success—the humans operating it.

Only when IT leaders recognize that the human element of the tech/human relationship is just as important as advancements in technology can enterprises achieve the next level of technology innovation. This clarifi ed view of human and enterprise productivity creates a more effective framework for not only increasing productivity, but multiplying it.

A C T I O N S T E P S

BALANCING PROFICIENCY WITH ENTERPRISE GOALSAt this level of the framework, employee profi ciency has been balanced to make it perfectly suited to help meet enterprise goals. Much like operating at a surplus, employees’ skill levels are at the point where innovation through IT, not reduction in productivity because of it, is possible.

EXPONENTIAL PROFICIENCY GROWTH ALLOWS FOR IT INNOVATIONWhen employees are aware of and use the technology available to them, have proper problem solving solutions in place to help them through issues, and have achieved mastery of the technology through skill building opportunities, enterprises can use these newfound skills and productivity to enhance the way they do business. Growth and innovation becomes less theoretical and more pragmatic.

MOVING A BUSINESS FORWARD WITH ITExecutives and IT departments become free to do the planning, research and execution necessary to make true corporate growth possible. Investing in newer, superior technologies that increase productivity fur ther becomes the norm. IT departments, freed from the burdens of aiding ailing employees from common technology issues, can focus on improving the future of the enterprise through IT, not saving the enterprise from the past because of IT.

Enterprise ResultsAllowing enterprises and end-users to reach levels of skill that enables them to innovate through technology can help enterprises as a whole realize up to 75—100% in productivity gains.

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Common challenges

• Institutionalize best practices with new recruits and business sector

• Continually look for new technology innovations

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Conclusion

To bridge the gap between individual profi ciency and enterprise productivity, companies need a systematic and

human-centered approach to achieving their business goals that identifi es, improves and measures four key value

drivers of productivity–from individual awareness and usage to enterprise-wide technology innovation.

By utilizing this approach, enterprises can move up the value chain and maximize their return on technology

investment. Taking this “human-centric” approach offers the best prospect of Moore’s Law for users, matching

their increasing profi ciency and productivity with the technological advances surrounding them.

Headquartered just outside Philadelphia, Vitalyst also has an offi ce in Cleveland, Ohio. For more information, please visit www.vitalyst.com.

About the Author Nick Wilkinson, Chief Executive Offi cer

Nick is an experienced leader with an in-depth knowledge of the IT consulting and managed services industry.

His career has been built upon success in identifying and implementing

innovative solutions to complex technical/business problems in challenging,

high-profi le positions.

About Vitalyst

Vitalyst, the leader in employee software coaching and information technology services, provides unmatched

application expertise and customer service, helping clients maximize return on investment by increasing

employee profi ciency and enterprise-wide productivity. Clients rely on Vitalyst for insightful and practical

solutions about hundreds of applications, smooth migrations, Managed Help Desk Services and in-person

and web-based training programs—earning the company status as a Microsoft Certifi ed Gold Partner.

With a special focus on supporting productivity tools—including Microsoft—Vitalyst helps business users

avoid frustrating and time consuming interruptions while providing the best possible experience with their

applications, devices and corporate help desk in an end-to-end support stream that offers:

• Adoption and Productivity

• Business Impact

• Immediate Access

• Unmatched Service and Expertise

• Seamless Experience

References

Amabile, T., & Kramer, S. (2011, September 3). Do Happier People Work Harder? The New York Times.

Brynjolfsson, E. (1993). The Productivity Paradox of Information Technology. Communications of the ACM. Center for Coordination Science, MIT Sloan School of Management.

Bureau of Labor Statistics (2011), U.S. Department of Labor, The Economics Daily, The compensation-productivity gap on the Internet.

Bureau of Labor Statistics (2003), U.S. Department of Labor, Productivity Growth in 2003.

Bureau of Labor Statistics (2015), U.S. Department of Labor, Productivity and Costs Second Quarter 2015 Revised.

Colas, M. (2014). Measure for Measure: The Difficult Art of Quantifying Return on Digital Investments. Capgemini Consulting.

Grossman, L. (2011, February 10). 2045: The Year Man Becomes Immortal. TIME.

ServiceNow, Today’s State of Work: The Productivity Drain. (2015, April 1).

International Data Corporation. (2012, September 1). Bridging the Information Worker Productivity Gap: New Challenges and Opportunities for IT.

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