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Rebalancing The Matrix: How
Empowerment Affects Every Group

Ted Schadler, Vice President & Principal Analyst
Coauthor of Empowered


June 7, 2011




1   © 2010 Forrester Research, Inc. Reproduction Prohibited
      2009
Source: Sogeti
2   © 2010 Forrester Research, Inc. Reproduction Prohibited
This analysis resonates with Forrester’s data


 Employees are not all the same – they segment into groups
 The requirements and opportunities in each group vary
 But in general, these things are true for every employee:
      – Empowerment matters – it drives problem-solving
      – Consumerization matters – it drives groundswell innovation
      – Collaboration matters – it improves productivity and outcomes




3   © 2010 Forrester Research, Inc. Reproduction Prohibited
4   © 2010 Forrester Research, Inc. Reproduction Prohibited
Four groundswell technologies empower customers
  and employees alike

       Smartphones                                                                    Cloud computing
35% use smartphones                                                               Startups use the cloud
14% use one for work                                                              18% use SaaS for work


                                                                                 Cloud
                                                                               computing
                                                Smart                           services
                                               mobile
                                               devices                    Pervasive
                                                                Social      video
                                                             technology
     Social technology                                                                 Pervasive video
500 million on Facebook                                                           124 million Skype users*
26% use social for work                                                           37% use it for business*
       Source: Forrsights Workforce Employee Survey, Q3 2010 (Base: European information workers)
      * Source: Skype S1 filing
 5     © 2010 Forrester Research, Inc. Reproduction Prohibited
Only an empowered employee
                          can serve the needs of an
                            empowered customer.




    Source: Flickr (http://www.flickr.com/photos/sepblog/3555130776/)
6   © 2010 Forrester Research, Inc. Reproduction Prohibited
HERO                  highly empowered and resourceful operative




7   © 2010 Forrester Research, Inc. Reproduction Prohibited
HEROes are the natural
                        inhabitants of The Commons.


             They innovate, advocate, and lead.


                They also use technology to do it.


8   © 2010 Forrester Research, Inc. Reproduction Prohibited
Employees agree: they have better technology at
home than at work
                       “The technology I have at home is better than the
                                 technology I have at work”*

                67%
                                                        58%
                                                                                   47%
                                                                                               41%




     Gen Y (18-30)                           Gen X (31-44)               Younger Boomers Older Boomers +
                                                                             (45-54)      Seniors (55+)
                                                          Base: 5,519 information workers
                                                                                            *6 to 10 responses on a
                                                                                             scale of 1 to 10, where
                                                                                                 10 = “Describes me
    Source: Forrsights Workforce Employee Survey, Q3 2010                                                completely”
9   © 2010 Forrester Research, Inc. Reproduction Prohibited
What percentage of information workers . . .

. . . do at least one
of those things?
                                                                                                 30%
. . . regularly use unsanctioned,
login-required Web sites for work?
                                                                                           18%
                                                                                     14%
. . . download and regularly use
applications on a work computer?                                           8%


. . . pay for a smartphone
used for work?
                                              Base: 2,287 European information workers

     Source: Forrsights Workforce Employee Survey, Q1 2011
10   © 2010 Forrester Research, Inc. Reproduction Prohibited
Why do employees harness do-it-yourself technology?


               It is better than what
               I’m provided at work                            27%




 I needed it, and my company
   didn’t provide an alternative                               37%




It is something I use at home
      and want to use for work                                 46%



                                                  Base: 2,287 European information worker HEROes


     Source: Forrsights Workforce Employee Survey, Q1 2011
11   © 2010 Forrester Research, Inc. Reproduction Prohibited
Employees master technology at
         home then see ways to use it to solve
           customer and business problems.




12   © 2010 Forrester Research, Inc. Reproduction Prohibited
We call it the empowered workforce




                             http://www.forrester.com/empowered
13   © 2010 Forrester Research, Inc. Reproduction Prohibited
HEROes are different because they:


  Innovate
       – 33% of HERO employees have improved a work process in the last year
       – Only 13% of disenfranchised employees have

  Advocate
       – HERO employees net advocacy score is +32%
       – Disenfranchised employees net advocacy score is only -20%

  Lead
       – 28% of HERO employees lead teams
       – Only 16% of disenfranchised employees lead teams




14   © 2010 Forrester Research, Inc. Reproduction Prohibited
There are three reasons that
                      you must empower employees.
                                     (Besides the fact that they will
                                   inevitably empower themselves.)




15   © 2010 Forrester Research, Inc. Reproduction Prohibited
Reason No. 1: engagement

                          Only an empowered employee
                           can serve the needs of an
                             empowered customer.




     Source: Flickr (http://www.flickr.com/photos/sepblog/3555130776/)
16   © 2010 Forrester Research, Inc. Reproduction Prohibited
Empower employees, so they can engage to solve
 customer and business problems




                                                                HERO
                                                               compact




17   © 2010 Forrester Research, Inc. Reproduction Prohibited
Reason No. 2: innovation

                               Employees harness
                           technology to find new and
                         better ways to get things done.




     Source: Britannica (http://www.britannica.com/) and WCM Associates LLC (http://www.wcmfg.com/KaizenSupplies.htm)
18   © 2010 Forrester Research, Inc. Reproduction Prohibited
Deloitte Australia: Yammer spread virally




19   © 2010 Forrester Research, Inc. Reproduction Prohibited
Reason No. 3: listening

                                 To know what’s going on,
                                employees need the same
                                tools that customers have.




     Source: Twitter (http://search.twitter.com/search?q=toyota)
20   © 2010 Forrester Research, Inc. Reproduction Prohibited
Your customers drive the empowered agenda

                                                    Technology empowers
                                                    people: mobile, social,
                                                        video, cloud




            Empowered                                           Listen         Empowered
            employees                                          Engage           customers

                                         What is IT’s role? What is your role?
       What is the role of marketing? Sales? Customer service? Products?
                                                         What has to change?

21   © 2010 Forrester Research, Inc. Reproduction Prohibited
Who moves to the new commons?
                           Who stays where they are?




22   © 2010 Forrester Research, Inc. Reproduction Prohibited
Three things to analyze for each quadrant


  Which quadrants grow over time? Which ones shrink?
  How important is consumerization for people in this quadrant?
  How important is empowerment for people in this quadrant?




                                                               Grow or shrink?
                                                               Consumerization?
                                                                Empowerment?




23   © 2010 Forrester Research, Inc. Reproduction Prohibited
Grow or shrink?                                         Grow or shrink?
     Consumerization?                                          Consumerization?
       Empowerment?                                             Empowerment?




       Grow or shrink?                                         Grow or shrink?
     Consumerization?                                          Consumerization?
       Empowerment?                                             Empowerment?

                                                                      Source: Sogeti
24   © 2010 Forrester Research, Inc. Reproduction Prohibited
Thank you

Ted Schadler
+1 617.613.5975
tschadler@forrester.com
Twitter: @tedschadler
http://blogs.forrester.com/ted_schadler

www.forrester.com



                                   www.forrester.com/empowered
  © 2009 Forrester Research, Inc. Reproduction Prohibited

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Empowered

  • 1. Rebalancing The Matrix: How Empowerment Affects Every Group Ted Schadler, Vice President & Principal Analyst Coauthor of Empowered June 7, 2011 1 © 2010 Forrester Research, Inc. Reproduction Prohibited 2009
  • 2. Source: Sogeti 2 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 3. This analysis resonates with Forrester’s data  Employees are not all the same – they segment into groups  The requirements and opportunities in each group vary  But in general, these things are true for every employee: – Empowerment matters – it drives problem-solving – Consumerization matters – it drives groundswell innovation – Collaboration matters – it improves productivity and outcomes 3 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 4. 4 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 5. Four groundswell technologies empower customers and employees alike Smartphones Cloud computing 35% use smartphones Startups use the cloud 14% use one for work 18% use SaaS for work Cloud computing Smart services mobile devices Pervasive Social video technology Social technology Pervasive video 500 million on Facebook 124 million Skype users* 26% use social for work 37% use it for business* Source: Forrsights Workforce Employee Survey, Q3 2010 (Base: European information workers) * Source: Skype S1 filing 5 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 6. Only an empowered employee can serve the needs of an empowered customer. Source: Flickr (http://www.flickr.com/photos/sepblog/3555130776/) 6 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 7. HERO highly empowered and resourceful operative 7 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 8. HEROes are the natural inhabitants of The Commons. They innovate, advocate, and lead. They also use technology to do it. 8 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 9. Employees agree: they have better technology at home than at work “The technology I have at home is better than the technology I have at work”* 67% 58% 47% 41% Gen Y (18-30) Gen X (31-44) Younger Boomers Older Boomers + (45-54) Seniors (55+) Base: 5,519 information workers *6 to 10 responses on a scale of 1 to 10, where 10 = “Describes me Source: Forrsights Workforce Employee Survey, Q3 2010 completely” 9 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 10. What percentage of information workers . . . . . . do at least one of those things? 30% . . . regularly use unsanctioned, login-required Web sites for work? 18% 14% . . . download and regularly use applications on a work computer? 8% . . . pay for a smartphone used for work? Base: 2,287 European information workers Source: Forrsights Workforce Employee Survey, Q1 2011 10 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 11. Why do employees harness do-it-yourself technology? It is better than what I’m provided at work 27% I needed it, and my company didn’t provide an alternative 37% It is something I use at home and want to use for work 46% Base: 2,287 European information worker HEROes Source: Forrsights Workforce Employee Survey, Q1 2011 11 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 12. Employees master technology at home then see ways to use it to solve customer and business problems. 12 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 13. We call it the empowered workforce http://www.forrester.com/empowered 13 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 14. HEROes are different because they:  Innovate – 33% of HERO employees have improved a work process in the last year – Only 13% of disenfranchised employees have  Advocate – HERO employees net advocacy score is +32% – Disenfranchised employees net advocacy score is only -20%  Lead – 28% of HERO employees lead teams – Only 16% of disenfranchised employees lead teams 14 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 15. There are three reasons that you must empower employees. (Besides the fact that they will inevitably empower themselves.) 15 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 16. Reason No. 1: engagement Only an empowered employee can serve the needs of an empowered customer. Source: Flickr (http://www.flickr.com/photos/sepblog/3555130776/) 16 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 17. Empower employees, so they can engage to solve customer and business problems HERO compact 17 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 18. Reason No. 2: innovation Employees harness technology to find new and better ways to get things done. Source: Britannica (http://www.britannica.com/) and WCM Associates LLC (http://www.wcmfg.com/KaizenSupplies.htm) 18 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 19. Deloitte Australia: Yammer spread virally 19 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 20. Reason No. 3: listening To know what’s going on, employees need the same tools that customers have. Source: Twitter (http://search.twitter.com/search?q=toyota) 20 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 21. Your customers drive the empowered agenda Technology empowers people: mobile, social, video, cloud Empowered Listen Empowered employees Engage customers What is IT’s role? What is your role? What is the role of marketing? Sales? Customer service? Products? What has to change? 21 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 22. Who moves to the new commons? Who stays where they are? 22 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 23. Three things to analyze for each quadrant  Which quadrants grow over time? Which ones shrink?  How important is consumerization for people in this quadrant?  How important is empowerment for people in this quadrant? Grow or shrink? Consumerization? Empowerment? 23 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 24. Grow or shrink? Grow or shrink? Consumerization? Consumerization? Empowerment? Empowerment? Grow or shrink? Grow or shrink? Consumerization? Consumerization? Empowerment? Empowerment? Source: Sogeti 24 © 2010 Forrester Research, Inc. Reproduction Prohibited
  • 25. Thank you Ted Schadler +1 617.613.5975 tschadler@forrester.com Twitter: @tedschadler http://blogs.forrester.com/ted_schadler www.forrester.com www.forrester.com/empowered © 2009 Forrester Research, Inc. Reproduction Prohibited