THE FUTURE OF BUSINESS PRODUCTIVITY
From finance to strategy… It’s all about engaging your people
Movie MavenAccountant Stereotypes in Movies Distributed in North America in the Twentieth Century
AOS, JBE and RD
• 1954 movie with the stars of the day• Battle between the CFO and the
Director of R&D for the control and the soul of a company
Last year, production and sales contributed less than a quarter of the profits we gained from one new tax accounting procedure I got the government to approve.
You’ve got to innovate or you die…The people who work in a company have to have pride in what they do…A company has to give to society what society needs.
Innovation.Motivation.
Contribution to Society.
Cost control.Taxes.
Financial reporting.
Strategy Finance
How can you reconcile Strategy and Finance?
Back to Finance 101
• Projects with positive NPV increase shareholder value.
• The value of a company is the sum of the PVs of the expected cash flows from all the company's projects.
Where does positive NPV come from?
The link between Finance and Strategy
What is the NPV of any investment in a perfectly competitive environment?
The best Board question!
© Tony Dimnik, 2006
Technology
Process
Product
Brand name
Legal and political
Capital
People and How People Work Together
Sustainable Competitive Advantage
An Investment Checklist ‐WWWD?What Would Warren Do?
• Is it a real business?What are the prospects of future cash flows?
• What is the competitive advantage?Can anyone do it?
• Who are the people and how do they work together?Is there a sustainable competitive advantage?
How would you describe a culture of sustainable competitive advantage?
• Involved• Committed• Motivated• Engaged
Source: Towers Perrin Global Workforce Study
Engaged Full discretionary effort on all three components of engagementEnrolled Partly engaged ‐ know what to do and tend to get the work done but not connected emotionallyDisenchanted Partly disengaged ‐ significantly lower on all three components of engagement, but dramatically lower on the emotional connectionDisengagedCompletely disconnected rationally, motivationally and emotionally
Think – Rational I believe strongly in the goals and objectives of my organization.
Feel – Emotional My organization inspires me to do my best work.
Act – Motivational I am willing to put in a great deal of extra effort to help my organization succeed.
Sustainable competitive advantage = engaged employees
• Knew the objectives of their organization• Were committed to the objectives• Had the information to achieve the objectives
Tone‐at‐the‐top and information
One of the CFO’s key responsibilities is to promote engagement.
The Four Area of Responsibility for a CFO
Strategic
Operational
Internal External
Decision makingManagement controlInformation systems
GAAP reportingFinancing decisions
Managing thefinance department
RegulationCompliance
?
Questions for you and your staff
• How much time do you spend on the future and how much time do you spend on the past?
• How much time do you spend on people and how much time do you spend on numbers?
• How much time do you spend on business issues and how much time do you spend on compliance and regulatory issues?
CFO initiatives that promote engagement
• DecentralizeEmpower employees to be financial managers.
• Open the books (content and form)Provide employees with critical numbers.
• Improve monitoringProvide systems that anticipate problems.
• Raise moraleRemove the barriers to productivity.
The Big But
These initiatives require investment in technology.We don’t have the resources to do this.
Three Responses to the Big But
• You can’t attract and retain the best people unless you engage them.– Attracting– Engaging– Retaining
• Technological initiatives can create resources.• You already have the technology.
Creating resources by eliminating unproductive work
IDC study, Hidden Costs of Information Work
Business User Experience
Business Collaboration Platform
Data Infrastructure & BI Platform
The technological resources are already in place
The technology is there but not used
• Functional fixation ‐ turning off the features• Investing some time ‐ spend time to save time
Spend a few minutes to save many hours
With the help of some technology……
Strategic
Operational
Internal External
Decision makingManagement controlInformation systems
GAAP reportingFinancing decisions
Managing thefinance department
RegulationCompliance
Break out the bubbly honey! The board just elected me President. They
loved my plan to engage our employees.
Our Panel• John Atwater, Intranet Manager Digital Communications,
BC HydroResponsible for strategy, planning and implementation of the BC Hydro employee portal, including news and communications, collaboration sites, search, social media and publishing
• Brian Edwards, Collaboration Practice Leader, Habañero Consulting GroupAs Practice Leader, Collaboration, oversees the marketing, sales, and delivery of all collaboration projects including portals, content management solutions, business process automations, and MS Office solutions
• Raj Cheema, Business Intelligence Solution Specialist, Microsoft Canada Inc.Leads Microsoft's Performance Management & Business Intelligence team in Western Canada and focuses on technologies that help information workers make more insightful decisions with tools that they are already familiar with, leading to increased productivity and better outcomes
Can you give us some examples of how technology has been used to promote employee engagement?
• John Atwater, Intranet Manager Digital Communications, BC Hydro
• Brian Edwards, Collaboration Practice Leader, Habañero Consulting Group
• Raj Cheema, Business Intelligence Solution Specialist, Microsoft Canada Inc.
How have CFOs been involved in these technology initiatives?
• John Atwater, Intranet Manager Digital Communications, BC Hydro
• Brian Edwards, Collaboration Practice Leader, Habañero Consulting Group
• Raj Cheema, Business Intelligence Solution Specialist, Microsoft Canada Inc.
Let’s talk about measurement. Have you actually measured improvements to employee engagement?
• John Atwater, Intranet Manager Digital Communications, BC Hydro
• Brian Edwards, Collaboration Practice Leader, Habañero Consulting Group
• Raj Cheema, Business Intelligence Solution Specialist, Microsoft Canada Inc.
It’s always difficult to assign dollar values to the benefits of technology investments. Do you have any examples of where this was done?
• John Atwater, Intranet Manager Digital Communications, BC Hydro
• Brian Edwards, Collaboration Practice Leader, Habañero Consulting Group
• Raj Cheema, Business Intelligence Solution Specialist, Microsoft Canada Inc.
Brian, Habañero is ranked as one of the Top 50 Best Small & Medium Employers in Canada. You seem to practice what you preach.
How have you engaged your employees and how has this changed your company?
John, what’s next for you at BC Hydro?
Raj, what can CFOs do to find out more about engaging people in their organizations?
Questions
What Steps Can I Take Next?
• Stay for a demo immediately after these proceedings.
• Sign up your team for a risk‐free hands‐on simulation and brainstorm on how to best apply productivity solutions in your organization.
• Arrange for a full day with a Productivity Specialist to discuss, examine and guide you through an implementation plan and to share best practices.
• Arrange a “tips and tricks” session for your organization’s end users to get them excited and trained on Microsoft Office 2010 system or Microsoft Office SharePoint 2010 Server.
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