Creating A Smarter Workforce

IBM Smarter Workforce
Creating a
Smarter
Workforce
© 2013 IBM Corporation

““I believe the real difference

between success and failure in a
corporation can very often be traced
to the question of how well the
organization brings out the great
energies and talents of its people. ”
Thomas Watson, Jr.

Former CEO of IBM

3 | Confidential – POV September 2013 © 2013 IBM Corporation


At IBM, we’ve always worked to invent

solutions that solve big problems.
So then, what could be bigger
than helping organizations
reinvent work itself?

The problems with work today

Employee challenges
• Can’t find the perfect job or in some cases, any job
• Don’t understand the skills they have or need
• Take jobs they aren’t ideally suited for
• Plateau at their jobs when they have more to give
• Are not engaged enough to bring out their full potential
Employer challenges
• Can’t often fill specific positions
• Don’t often create the best working environments
• Struggle to provide mechanisms for effective performance
• Struggle to retain talent especially their best talent
• Don’t know how to get the best from their people

A look at work itself…

Looking at what “Work” means to us individually
Sustenance
Sustenance +
Sustenance + Satisfaction
Satisfaction +
Identity
The need to The realization that When the work you

survive and provide work can provide do and who you do
for the basic needs dignity and status it for proudly
of your family defines you
And all this added complexity is putting greater

pressure on business to engage the individual.
Looking at how business looks at “Work”

First, the workforce is more informed and empowered than ever
before. Technology has changed the way, and the speed ,
at which people communicate and connect—and social media plays
a huge role in this. This shift has dynamically changed the market,
and it’s about to change business.

Second, the insight on human behavior is greater than it

has ever been—we have reached a point where we know what
makes people good at what they do, individually and as a group.
And we understand the dynamics of talent and the science of human
behavior like never before.

Finally, the combination of these two things has produced mounds of

big data around human behavior and tendencies that we can
analyze to literally predict behavior, identify talent like never
before, match capabilities to market needs, retain the best and act
on proven insight to drive business outcomes.


Looking at “Work”
globally
Over the past 15 years, the same

social, political, economic and
technological forces have continued to
shape work, but in new ways. In
particular, advances in technology—the
Internet, processing power, software
and mobile devices—have lowered the
barriers to information. With greater
availability and access to information
about people and employers, we have
new opportunities to re-think, re-design
and re-make the world of work.

And, the management of “Work” has changed
PAST
Now, it’s about

It was often
leveraging our
about
collective
top-down
intelligence
management
FUTURE
So, what’s driving this

change in work?

1. The rise of social in the

workplace
We are connecting with each other more
quickly than ever before, and we’re doing it in
new ways.
25% Productivity
increase
Bottom Up
Top Down
Source: McKinsey Global Institute, July 2012 - "The Social Economy: Unlocking
Value and Productivity Through Social Technologies."
2. The rise of big data and

analytics
Decisions once made based on limited information and
gut feelings are now being made based on insights
extracted from the exabytes of information that people
and employers publish every day.
See it as a
63% competitive
Bottom Up
Top Down
advantage
Source: IBM Institute for Business Value, October 2012 - “Analytics: The real-world
use of big data, How innovative enterprises extract value from uncertain data”
3. The rise of mobile

technology
Now, with almost 75% of the world’s population
with a mobile device4, that information is not
only accessible, but available at your fingertips.
75% Have a mobile

device today
Bottom Up
Top Down
Source: Mashable study, July 2012 – “75% of World Has Access to Mobile Phones”

4. The rise of the

independent worker
More people are striking out on their own and as human
capital becomes the leading source of sustained
economic value, employers are looking for better ways
to partner with independent and non-traditional workers.
Bottom up
Consider themselves
30%
Top Down
not, white or blue
Bottom Up
Top Down
collar but no collar
employees
Source: Deloitte, 2012 – “Brawn from Brains: Talent, Policy and the Future of
American Competitiveness”
All these intertwined dynamics require

a comprehensive point of view
SOCIAL INDEPENDENT
BUSINESS WORKER
BIG DATA MOBILE

AND TECHNOLOGY
ANALYTICS

Our Point of View. We can reinvent work through….
1 Enhancing the power of human judgment by using both

mathematical and behavioral science analytics.
2 Eliminating hierarchies by implementing tools that empower

the collective intelligence of an organization
3 Forming a true labor market built from long term needs

and the career desires of the individual
4 Creating radical transparency across organizations by

using social networks to create constant collaboration
5 Causing career paths and ‘best fit roles’ to be

predicted for people and businesses.
6 Creating the new supply chain for the 21st Century of

workers and the work needing to be done.

Therefore, if we could harness the power of big

data and analytics with human insight, human
behavior and workforce solutions, along with
social and mobile technologies, we could bring
people and employers together to do more
meaningful and valuable work to drive business.
We call it Smarter Workforce

BRINGING THE IDEA

OF A SMARTER WORKFORCE TO LIFE

A Smarter Workforce is
actually smarter when:
• Behavioral science identifies what makes
people good at what they do and
organizations thrive because of it
• Technology just doesn’t drive efficiency,
it fuels collective innovation
• Analytics is both a predictive and
management tool critical for driving
continual improvement

A Smarter Workforce Makes Smarter Business
Leading companies are seizing these opportunities to create real

business value.
• Analyzing human capital to better understand talent
• Increasing innovation through shared expertise
• Using social platforms to bring the workforce closer
together
• Rethinking business models
• Creating infrastructures that grow and scale with
needs
• Making business more flexible to market changes
• Sharing information real-time
• Using data to predict performance
• Attracting not recruiting talent

When “work” is
reinvented…

People Will…
• Be better educated about careers and
their skills
• Have the tools to connect, organize and
collaborate socially—getting constant
opportunity to tap into expertise and
creative ideas at their fingertips.
• Become culturally aware and
understand the type of culture they will
thrive in
• Develop leadership skills to lead in flat
organizations and empower real-time
development opportunities
• Define work through talent and not jobs
or roles

Employers will…
• Become experts at using analytics to find the right

people
• Have the capabilities to leverage skills quickly and
in a virtual work environment
• Assess, recognize and reward people continuously
using social tools
• Help employees learn continuously and socially
• Use mobile devices as the predominant work tools
• Think of the social network as the 21st Century
supply chain
• Predict performance, engagement and business
outcomes
• Use the knowledge of their culture to engage their
people more to create stakeholder value.

In the end…
In a New Era of Computing, when enterprise value is coming from the
extension of IT beyond the enterprise, we will…
• Shape the way work is done and value is created, as a work

partner and thought leader.
• Enhance the productivity of clients through enabling them to
create a Smarter Workforce.
• Deliver solutions to empower the Chief Human Resource Officer
of the future

A Smarter Workforce makes

Smarter Business
Because what’s good for people is good for organizations
and together, they can change the world.


Looking at the Solutions

of a Smarter Workforce

For internal use only
Smarter Workforce is an evolution from compliance-oriented to a

strategic growth lever
Evolution Progression
Solution Level 1 Level 2 Level 3 Level 4
Category Sub-Category Table stakes Market today Smarter Workforce
 Attraction / Employment Branding Integrated Social
e.g., Put science,
 Recruitment / Sourcing (internal, external) and Mobile
Talent data and precision
 Selection / Assessment e.g., competencies e.g., dashboard Workforce Platform
Acquisition into recruitment for a
 Onboarding
better hire-to-fit ratio
 Strategic Workforce Planning Powered by
Interconnected
 Succession planning / Leadership Appointment State-of-the-Art
Talent e.g., acting on e.g., linking
 Leadership Development / Coaching Analytics
Leadership e.g., engagement employee feedback employee
 Employee Engagement
& survey to improve engagement to
 Culture Leveraging Big
Engagement engagement organization results
 Diversity & Inclusion Data and
 Learning & Development (individual, team, career, e.g., Watson Career Behavioral Science
e.g., traditional for Prescriptive
coaching, mentoring) Advisor; social
Talent learning e.g., social Analytics
 Performance Management reputation; social
Optimization management collaboration
 Knowledge Sharing & Collaboration performance
system Accessible
 Best Fit Expertise management / TOS
Anytime, Anywhere
 Compensation e.g., compensation e.g., planning and e.g. compensation with an Irresistible
Talent
 Recognition planning benchmarking optimization, social User Interface
Recognition
 Incentive Planning e.g., awards e.g., peer-to-peer recognition, sales
& Rewards
 Awards planning recognition platform force analytics
“Advanced”
 Big Data, Advanced Analytics Descriptive, Predictive,
Talent Descriptive,
 Visualization e.g., product- e.g., predictive
Analytics e.g., Integrated
 Workforce Science specific reporting retention analytics
reporting
Strategic, Holistic,
Tactical Interconnected
Point solutions Fully harnessing
Description & Business Value
Compliance-driven the workforce to
Risk mitigation drive business
results

Solutions map to business questions to enable strategic workforce

conversations with C-suite executives
Example Business Questions Solution Portfolios Solution Components
 Attraction / Employment Branding
“How can I attract and hire more people just like my top
 Recruitment / Sourcing (internal, external)
performers?
 Selection / Assessment
Talent Acquisition  Onboarding
How can I bring people into the organization so they’re
 Best Fit Expertise
productive from Day 1?”
 Strategic Workforce Planning
 Culture
How do I develop the next generation of leaders for a
 Leadership Assessment / Succession Planning
more global, flexible, and diverse workforce?
Talent Leadership &  Leadership Development / Coaching
Engagement  Employee Engagement
“How do I gain continuous insight into what my
 Diversity & Inclusion
employees’ think of the organization?”
 360 Surveys / Leadership Outliers
“How can I rapidly develop, deploy and optimize skills  Learning & Development (individual, team, career,
and capabilities to match emerging opportunities?” coaching, mentoring)
Talent Optimization  Performance Management
“How do I foster knowledge sharing and collaboration to  Knowledge Sharing & Collaboration
drive more innovation?”  Best Fit Expertise
“How do I know if I’m recognizing and rewarding my

 Compensation
employees optimally?”
Talent Recognition &  Recognition
Rewards  Incentive Planning
"How do I know salary planning is aligned with our
 Awards
business strategy?”
“How can I predict what different segments of my
employees need and what actions I should take to  Big Data
optimize business outcomes?”  Advanced Analytics
Talent Analytics  Visualization
“How do I find real-time, hidden, game-changing insights  Workforce Science
from the data available inside and outside my  Workforce Metrics/P&L/Dashboard
organization?”
Talent Acquisition:
Attract the right candidates to the right roles through precision and science, and using
social tools to make them productive more quickly
 Ensure employees are productive and up to
speed faster, while fostering collaboration and
 Industry leading improved innovation across the enterprise,
recruitment technology directly impacting new hire satisfaction and
simplifies and retention.
improves the
efficiency of attracting,
assessing, and tracking
talented candidates as
they move through the
hiring process.
 Predictive and prescriptive

 Employ a analytics allow skills forecasting
science based and risk assessment enabling
approach to truly strategic workforce
clearly articulate planning.
and reflect your
organizational
culture ensures
candidates will
fit and thrive.
 Align candidate and employee

skills and abilities to each
opportunity, capitalizing on
the collective knowledge of
the enterprise.
 Fully-integrated, highly predictive assessments improve the quality and efficiency of

selection, while allowing better hiring decisions and ensuring organizational fit.
31 © 2013 IBM Corporation
Talent Leadership & Engagement:

Connect the power of a highly engaged and fully enabled workforce with
leaders aligned with critical roles to optimize organizational performance
 Gain continuous insight into  Employ an analytics-based
the sentiment of the approach to selecting and
workforce, key drivers of measuring leadership
engagement and competencies, skills, and
enablement, and leadership preferences to directly inform
capabilities to directly impact leadership potential and ensure
organizational performance alignment of succession
planning
 Provide a precise alignment

between individual’s
 Actively and cohesively leadership skills, their
manage and utilize personal development
organizational culture in opportunities, and the
maintaining a strong EVP, specific competencies
directly providing meaning required at the present as
for the work employees do well as in the future
 Capitalize on and directly

 Reap the multitude of act upon the wealth of
benefits from a truly diverse information gained through a
workplace, where the holistic assessment of
organizational culture engagement – as more
enables everyone to engaged employees are
contribute to their full better workers, family
potential members and citizens.

Talent Optimization:
Rapidly develop, deploy, and optimize workforce skills and capabilities while
capitalizing on an interconnected, social, and collaborative workforce
 Ensure a precise alignment between individual and team
skills, development opportunities, and the specific
competencies required in current as well as subsequent roles
DEVELOP
Provide an ongoing stream of
GROW LEARN performance data delivering
continuous feedback to
enable individualized
development actions to
improve performance
BE RECOGNIZED
COLLABORATE
 Enable increased collaboration
within and across teams, experts,
mentors, and communities through Deliver recognition in a
social solutions ENGAGE dynamic, flexible, and
social manner,
improving engagement
and return on talent
Employ cognitive technology to match relevant,

high-value, peer/expert recommended
development content to participant’s interests
Talent Recognition & Rewards:

Optimize the way employees are recognized and rewarded across the
enterprise to attract, retain, and stimulate top performance
 Ensure incentives are aligned and deployed
 Industry leading compensation technology appropriately to maximize goal attainment
simplifies and improves the efficiency of and performance
$$
managing, reviewing and making changes
to your compensation programs
 Optimize organizational
compensation investment to align
compensation practices with business
goals  Enable quantifiable, on-ongoing,
real-time recognition across
organizational levels and communities
 Enable strategic and optimized

hiring, attraction, and retention
based on insight-driven
compensation practices and
industry leading comparison
data.
 Allocate awards based on comprehensive

and relevant performance metrics,
customized to individual preferences for
optimal impact

Talent Analytics:
Transform the way decisions are made through descriptive, predictive, and prescriptive analytics –
enabling data-driven insights
Advanced analytics
capitalizes on data-integration
and advanced research 3
assets (including cognitive
computing) to allow insight Advanced
into future trends, and to Analytics
guide users to make the best
possible decisions.
2
Integrated
Reporting /
Descriptive reporting and Incremental
analytics provides direct Predictive
insight to structured or
unstructured data (survey,
social, other) for individual Integrated reporting and
incremental predictive
elements within a portfolio or 1 analytics enables messaging
solution.
across elements within a
Descriptive solution to provide a holistic
(by product) view of human capital
management topics, and
predictive models within
functional areas.

Customers who have

already embarked upon
building a Smarter
Workforce

Attract the right people through employment branding to appeal to the right
candidates and win the war for talent
$2 MILLION
savings in recruiting costs

Empower employees to perform with relevant, real-time solutions

that leverage a company’s collective intelligence
40%
increase in sales for
new construction

Motivate employees to make a difference by defining a culture that

leads to business success
9.3% higher sales

per labor
hour
AMONG TOP PERFORMERS

Empower teams with powerful tools that replace manual processes
100% increase
IN RESPONSE EFFICIENCY

Empower sales and marketing teams to share information,

increasing customer satisfaction
Improved sales
opportunities

Motivate employees to develop creative solutions to big problems
Brought a new product

to market in
ONE-THIRD
the time

Motivate employees to pool together knowledge and deliver high quality

products
Leveraged the expertise of
12,000
to create new products

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IBM Smarter Workforce

© 2013 IBM Corporation

““I believe the real difference

Thomas Watson, Jr.

© 2013 IBM Corporation

3 | Confidential – POV September 2013 © 2013 IBM Corporation

© 2013 IBM Corporation

At IBM, we’ve always worked to invent

© 2013 IBM Corporation

The problems with work today

© 2013 IBM Corporation

A look at work itself…

© 2013 IBM Corporation

Looking at what “Work” means to us individually

The need to The realization that When the work you

And all this added complexity is putting greater

Looking at how business looks at “Work”

Second, the insight on human behavior is greater than it

Finally, the combination of these two things has produced mounds of

© 2013 IBM Corporation

Over the past 15 years, the same

© 2013 IBM Corporation

And, the management of “Work” has changed

Now, it’s about

So, what’s driving this

© 2013 IBM Corporation

1. The rise of social in the

2. The rise of big data and

3. The rise of mobile

75% Have a mobile

© 2013 IBM Corporation

4. The rise of the

All these intertwined dynamics require

BIG DATA MOBILE

© 2013 IBM Corporation

Our Point of View. We can reinvent work through….

1 Enhancing the power of human judgment by using both

2 Eliminating hierarchies by implementing tools that empower

3 Forming a true labor market built from long term needs

4 Creating radical transparency across organizations by

5 Causing career paths and ‘best fit roles’ to be

6 Creating the new supply chain for the 21st Century of

© 2013 IBM Corporation

Therefore, if we could harness the power of big

We call it Smarter Workforce

© 2013 IBM Corporation

BRINGING THE IDEA

© 2013 IBM Corporation

© 2013 IBM Corporation

A Smarter Workforce Makes Smarter Business

Leading companies are seizing these opportunities to create real

© 2013 IBM Corporation

© 2013 IBM Corporation

© 2013 IBM Corporation

• Become experts at using analytics to find the right

© 2013 IBM Corporation

• Shape the way work is done and value is created, as a work

© 2013 IBM Corporation

A Smarter Workforce makes

© 2013 IBM Corporation

Looking at the Solutions

© 2013 IBM Corporation

Smarter Workforce is an evolution from compliance-oriented to a