Description of IBM's high-involvement strategies to achieve greater innovation by hooking into the general workforce -- not just R&D. CEO survey data makes the case for the workforce as the most frequently used innovation source. But there is nothing as discretionary as sharing an idea. Hence, employees need to be motivated to contribute. Employee survey data shows where the the baseline was, and how IBM innovated on the innovation process itself by creating the capability for employees to speak to peer innovators and innovate 'on the fly.' Result: 100s of millions of dollars in 'found' reveniue, and a more inspired workforce.

1. © 2012 IBM Corporation
Engaging Employees in Times
of Challenge and Change
Michael N. Bazigos, PhD

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One Minute the World is Your Oyster …

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… The Next Minute Everything’s Changing ...

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… And Suddenly It’s a Whole New World

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Organizations are Being Reshaped by Marketplace Realities
Globalization
Deregulation
Internet
Commoditization

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IBM began as a small company in a different era
Tabulating Machine Corporation
1893
International Business Machines
1924

7. © 2008 IBM Corporation7
Why is there so much focus on employee engagement now?
 Huge Opportunities

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CEOs seek collaborative innovation and external sources for
innovative ideas
Assoc’s, trade groups,
conference boards
051015202530354045%
Academia
Competitors
Consultants
Customers
Business partners
R&D (internal)
Employees
(general population)
Other
Think tanks
Internet, blogs,
bulletin boards
Sales or service units
0 5 10 15 20 25 30 35 40 45%
Source: The IBM Global CEO Study
Sources of Idea Generation
InternalExternal

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Why is there so much focus on employee engagement now?
 Huge Opportunities
 . . . And Huge Challenges

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First question
Considering everything, how satisfied are
you with your job?
1. Very satisfied
2. Satisfied
3. Neither satisfied nor dissatisfied
4. Dissatisfied
5. Very dissatisfied

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Second question
How would you rate this organization to
work for compared to other organizations?
1. One of the best
2. Above average
3. Average
4. Below average
5. One of the worst

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Third question
My work gives me a feeling of personal
accomplishment.
1. Strongly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly disagree

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Fourth question
Even if I were offered a comparable position
with similar pay and benefits at another
company, I would NOT leave this company.
1. Strongly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Strongly disagree

14. © 2008 IBM Corporation14
Benchmarks
QUESTION X-INDUSTRY AVG X-INDUSTRY BEST
Overall job sat 68 85
This company vs. others 58 79
Personal
accomplishment
72 84
Wouldn’t leave for
another company
54* 63*
* IT industry stats; all other benchmarks are cross-industry

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Employee commitment predicts organizational performance
Attitudes  Behaviors  Outcomes
(Leading Indicators) (Discretionary effort) (Lagging Indicators)
Employee
Satisfaction
and
Component
Drivers
• Revenue Growth (YTY)
• Customer Satisfaction
• Market Share
2007 2012
2012 2007

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IBM Workforce Commitment Model

17. © 2008 IBM Corporation17
Municipal Building, 1914Flatiron Building, 1902

18. © 2008 IBM Corporation18
Chrysler Building, 1930 Empire State Building, 1931

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“Sense-and-respond” strategy complements engagement
strategy
 Systematic surveys on employee commitment drivers and
values
– Employee Climate Survey
– Values Survey
– Exit Survey
 “Jams” – theme based electronic town hall meetings – on
topics that matter
 Proof points

20. © 2008 IBM Corporation20
WorldJam 2004
On the WorldJam 2004 homepage, users could
choose from a selection of six forums -- each
moderated by three senior leaders

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Overwhelming support for two ideas:
– Employee survey on people manager effectiveness
– Consolidate/align back-office sales support functions
26 of the top-rated ideas fell into three major categories:
– Lower center of gravity, improve cross-unit integration for client success
– Help my manager become a better manager
– Enable innovation and growth
Implementing 35 top-rated ideas

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IDEA FROM WORLD JAM
INVENTION

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Open, collaborative global forum
Combines best practices of jams,
online communities and
marketplaces
Surfaces innovative solutions to
specific challenges
More than 8,000 ideas submitted since launch
More than 350 ideas under review for implementation
Over 60 ideas in the pipeline ready to be implemented in the first
12 months, with potential to contribute tangible financial
benefits to the business
“Proof Point” from Jam:
ThinkPlace – sparking innovation across the enterprise

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Conclusion – A point of view
 Build an engagement framework tailored to you
 Build sense-and-respond capability
 Honest feedback is critical; so is action and
evaluation
 Lead from the top…
 … but involve the organization
 Don’t be afraid to challenge “received wisdom”

25. © 2012 IBM Corporation
Engaging Employees in Times of
Challenge and Change
Michael N. Bazigos, Ph.D.
mbazigos@gmail.com
Let’s connect on !
www.linkedin.com/in/bazigos