Beyond the balance sheet: How Social Contributes Real Business Value

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Best practices and guidelines for social media programs that help enhance organizational performance.

1. How Social Contributes Real Business Value Beyond The Balance Sheet In collaboration with

2. 1 Content 2 Introduction 3 What is Your Social Quotient? 4 The Three Stages 16 How to Make Your Social Strategy Work 17 Case Studies

3. Cognizant partnered with INSEAD to examine the social quotient of enterprises 2 Findings show five potential business impacts of integrating social technology in the enterprise: Better information flow – sharing of skills and knowledge Better collaboration – greater interconnectedness, within and across teams Greater innovation – driving employee empowerment Increased co-creation – particularly by bringing customers and partners into internal processes Increased agility – the ability for organizations as a whole to refocus on new opportunities more quickly.

4. What’s your Social Quotient? 3 The combination of social m edia uses and company enablers impact business processes and deliver organizational benefits Drivers for organizational change

5. How Do You Get There? 4 Following a three stage process for planning and implementation of an enterprise social media will maximize benefits.

6. Identify activities that social technologies can enhance 5 Six basic activities of organizational operations Think: Strategy development and management Report: Finance and accounting Run: “Back office” functions like IT and HR Sell: Client management, marketing and sales Design: New product or service development Build: Production or service delivery Business Process Stage 1

7. Connect with customers for co-creation, with employees for collaboration and with other companies for innovation 6 Our survey made it clear that, regardless of industry or corporate strategy , it’s the sell activity involving client management, marketing communications and sales that can benefit most, particularly for companies in high-touch industries such as retail, consulting and banking. Uses of social media Sell Think Design Build Run Count Employees + + + Customers + Suppliers and service providers Other companies in the industry + + + + Field specialists Stage 1

8. Recommendations 7 Allow employees and customers to participate in the product development process. Make sure that social media is implemented with clear objectives . Gradually provide teams more participation in decision-making process. Stage 1

9. Identify Target Audience for Social Media 8 Adoption by target constituencies 24.6 % of companies surveyed use a hybrid approach Customers Employees Partners 8.4 % 5.4 % 11.3 % 24.6 % 14.3 % 20.7 % 15.3 % Stage 2

10. Choice of audience co-relates to benefits achieved 9 Organizations targeting both internal and external audiences achieve better results because they have invested more in maturing their social media competencies Percentage of companies that realized benefits from social media with each target constituency Better internal information flow Better Collaboration Greater internal innovation Increased co-creation Increased agility Employees only 52% 48% 35% 22% 26% Partners and customers 27% 21% 21% 30% 33% Partners, customers and employees 52% 52% 31% 28% 46% Stage 2

11. Success depends on engaging your users 10 The mark “+” indicates in which business processes the different uses of social media bring a meaningful improvement, based on the survey data evidence Think Design Build Sell Run Report Employees only Customer Other companies in industry Stage 2

12. Recommendations 11 Start with the challenge you want to overcome or area you want to improve. Experiment with a particular problem or department such as the helpdesk, for example, rather than starting a social media initiative without a mission in mind. Establish a social platform that allows you to aggregate all interactions between employees and interactions with customers, in one place. Stage 2

13. Improve the Organization’s Social Quotient 12 Integration of Social Media Technology with Company’s core information systems is a key step in achieving better information flow across functions. The Survey found that more organizational decentralization makes companies more likely to report benefits in terms of improved information flow, more collaboration and, most interestingly, more employee innovation. Stage 3

14. The best uses comes from users when social tools are tailored to specific business needs 13 Percentage of Companies Reporting Business Process Benefits by Type of Deployment Stage 3

15. A Top Down Approach is More Beneficial for Information Flow across Company whereas the Hybrid Approach brings in More Business Agility 14 Percentage of Companies Reporting Organizational Benefits By Type of Deployment Stage 3

16. There is more than one way to implement 15 Differentiate in the market by educating and empowering employees to use social technologies in specific ways. Plan awareness campaigns to inform employees how social technologies brings value to their daily activities. Embrace bottom-up social initiatives taken by individual teams and units only if the company has company-wide processes for information sharing to avoid creating organizational silos. Balance empowerment (encouraging individual creativity ) and accountability. Establish an individual recognition system . Stage 3

17. 16 How to Make Your Social Strategy Work Be clear about your motives Start by asking yourself why you want to adopt social technologies Experiment to find your perfect fit Test the viability of social platforms and needs they should address Engage with users and respond to their feedback It is not enough to simply deliver – constantly review and adapt. Get senior management involved Employees respond to change better when their business leaders are onboard Give users freedom Users need guidelines but they also need freedom to express themselves

18. 17 Case Studies

19. 18 Turning disruption into productivity Business Challenge Managing change resulting from decentralization of organizational structure of a large Food Processing Company How was this addressed? An enterprise wide social platform of 30,000 members across 400 communities was developed The platform allowed distributed global teams to share best practices and avoid duplication of effort Key Success Factors The launch was decentralized so it could be adapted to global needs. Training assets are widely available to raise awareness and encourage uptake. All users are treated equally to invite collaboration

20. 19 Supporting employee well-being Business Challenge Responding to social need by extending social platform internally to improve employee well being by a Global Telecommunications Provider How was this addressed? Developed communities with both business focus and employee interest resulting in 35,000 members in 38 countries Increase in information sharing in communities helped strengthened “collective intelligence” within wider team and improve staff morale Key Success Factors Focus on social rather than economic performance measures to drive adoption. Promote personal connections as much as professional ones.

21. 20 Valuing everyone’s contribution to innovation Business Challenge Promoting information sharing of technical and commercial information and improving collaboration by an Energy Services Company How was this addressed? Company wide platform was deployed to encourage knowledge sharing on key business topics resulting in 3,000 members across 65 communities Business is more agile as a result of improved access to specific expertise and knowledge sharing among international teams Key Success Factors Adopt a bottom-up approach to implementation to increase participation. Focus on the needs of the employees so that the network benefits regular users. Find a sponsor in senior management to ensure project receives full support

22. 21 Building a platform for self expression Business Challenge Employees wanted a way to share best practices and promote innovation across multiple business units within the Global DIY Retailer company. How was this addressed? The company adopted social technologies to increase employee well being, drive collaboration and improve innovation. Social platform helped break down internal silos between teams across group companies and fostered a spirit of collaboration and promotes sense of “one team” on a global scale. Key Success Factors A corporate culture that supports collaboration helped promote widespread adoption. Delivering training that focuses on the benefits of using the tool. Reassuring employees rather than trying to control them.

23. 22 Harnessing employee insight to solve business challenges Business Challenge To enhance global communication by engaging externally with customers as well as internally with employees in a Financial Services Company How was this addressed? Employees are encouraged to actively contribute to internal blogs, forum discussions and ‘idea incubator’ for problem solving and idea sharing The company benefitted from combined knowledge in the workforce, culture of innovation and helping monitor employee engagement on key initiatives Key Success Factors Focus on social rather than economic performance measures to drive adoption. Promote personal connections as much as professional ones. Keep Governance light

24. 23 Unifying operations for equality Business Challenge Supporting the corporate brand and mitigating communication challenges between business units as a result of company’s growth through acquisitions in an International Bank How was this addressed? HR team communities were launched with access to 3,200 HR employees for creating corporate content and information exchange was enabled through forums and wikis All members of HR community have direct access to international co-workers and working practices and access corporate resources from a central platform. Key Success Factors Don’t be afraid to experiment to find the best solution. Develop the platform in response to user feedback to improve adoption rates. Make sure platform is user-friendly and easy for non-technical people to use.

25. If you would like to discuss this study further, contact Cognizant at [email protected] Thank you