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March 1, 2017Digital Strategy andthe EmployeeExperienceMIMI BROOKS, CEO#tcbtalentmgmt 2017 CONFIDENTIAL& PROPRIETARY2017 CONFIDENTIAL& PROPRIETARY2

Agenda Making sense of digital transformation How digital affects the organization HR’s role in this digital context Implications for talent The employee experience 2017 CONFIDENTIAL & PROPRIETARY

DigitalTransformationis a HumanPhenomenondigital technology is the catalyst 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY4

Digital transformation is not aboutdigital technology as tools it’s about technologyand human behaviorbecoming deeply andinextricably comingled –each shaping the other. 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY5

The 4th IndustrialRevolution is upon usThis revolution, however,has particularcharacteristics notexperienced before.World Economic ForumAs is true at the start ofeach revolution, economicand social disruption istremendous andunpredictable.Now 2017 CONFIDENTIAL & PROPRIETARY6

This revolution is explosive and fast moving –rich in new and disruptive capabilitiesQuantumcomputingAccess Systems erScope, velocity and impactis unparalleled Prospect of billions of People,powered, with accessMachinethinkingroboticsxMultiplied by emergingtechnology breakthroughs 2017 CONFIDENTIAL & PROPRIETARY7

n thinkingPeople as inputs (labor)People as a creative nexusClosed partnering; point solutionsCapital, as the criticalfactor of productionKnowledge sequesteringDiscipline silosDigital ischanging thefundamentalnature ofbusinessBusiness ecosystemsTalent, as the criticalfactor of productionMassive open sharingMulti-disciplinary 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL& PROPRIETARY8

Digital enables dramaticallynew business models New value propositions (e.g., services insupport of products) New forms of products, services and servicedelivery, often custom to situations A shift to provisioning “needed to play”capabilities from outside the organization (e.g.,cloud services, service partnerships) New mechanisms for knowledge sharing andinnovation (e.g., cross-business unit, outside ofthe enterprise) A different view regarding human capital andtalent (e.g., definition of “employee”) New forms of work interaction (i.e., moreinterpersonal and less formally structured).Business leadership is critical 2017 CONFIDENTIAL & PROPRIETARY9

Yet, leaders are hesitantSlow returns on productivity / performance gains; organizational change is hardWhat is happening?Why? Still adapting organizationally, often by way of Short-term focus dominates (e.g., next 2old organizational models Redesigning organizational structures andnew work, re-training for new skills, etc. aretaking significant time Focus on efficiency and effectiveness, ratherthan on wholesale organ. / cultural change Going digital at the edges Grafting digital businesses onto establishedyears) Relevant business pain points today are notviewed in the context of digital strategy Digital is evolutionary for many – incrementalchange viewed as sustainable Lack of clarity regarding the path forward Lack of leadership consensus; operating insilos.business operations Creating digital native units as skunkworksand placed at arms length from the old order. 2017 CONFIDENTIAL & PROPRIETARY10

Business casesare not clear Technology-centric focus (bottom up) is an establishedapproach for digital investments Cost of organizational transformation cannot be assigned tospecific cost centers New revenues lag – getting to “BAU” early is not likely. 2017 CONFIDENTIAL & PROPRIETARY11

Design thinkingis important butinsufficientBusiness design provides afoundation for the digital enterprise;design thinking is a tool.“Design ThinkingDesign thinking can be described as a discipline thatuses the designer’s sensibility and methods to matchpeople’s needs with what is technologically feasible andwhat a viable business strategy can convert intocustomer value and market opportunity.Business Design A comprehensive approach foraligning the organization arounda new strategy and its associatedorganizational capabilities Involves planful work design Factors in human behavior Is analytic - involves both newand established tools andorganizational concepts.(Tim Brown, CEO, IDEO) 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY12

DigitalTransformationis OrganizationalTransformation 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY13

A company cannot “be digital” without“being digital”Any business strategy deployingdigital technological capabilities forcompetitive advantage requires theenablement of associated businesscapabilities steeped in digitalbehaviors and work practices. 2017 CONFIDENTIAL & PROPRIETARY14

Emerging organizationalcapabilities, needed now Customer experience managementProduct and service designDigital asset managementBusiness model agilityInnovative cultureDigital-first leadershipCollaborationKnowledge identification, creation & sharingRisk and sustainability management.Sources: Gartner Group, LDS 2017 CONFIDENTIAL & PROPRIETARY15

Digital transformation shiftsthe organizational emphasisto work practices and cultureBusiness StrategyDecomposed intoOrganizational CapabilitiesDecomposed intoRelatively speaking, formallydefined structures andprocesses are less central. 2017 CONFIDENTIAL & PROPRIETARY2017 CONFIDENTIAL & PROPRIETARYOrganizational Levers16

Digital transformation shiftsthe organizational emphasisto work practices and cultureBusiness StrategyDecomposed intoOrganizational CapabilitiesDecomposed intoWork practices – the way that work is usually done ina particular company or organization. Observable, distributed actions or activities done byindividuals Shaped by formal processes, procedures, and structure Tied to culture, employee relationships, and humaninteractions. 2017 CONFIDENTIAL & PROPRIETARY2017 CONFIDENTIAL & PROPRIETARYOrganizational Levers17

Digital transformation shiftsthe organizational emphasisto work practices and cultureBusiness StrategyDecomposed intoOrganizational CapabilitiesDecomposed intoCulture – a system of shared assumptions, values,and beliefs that governs how people behave inorganizations. Provides partial solutions to frequently encounteredproblems Comprises artifacts, espoused value of leaders, andbasic assumptions Driven formally by learning and messaging, andinformally by social interactions. 2017 CONFIDENTIAL & PROPRIETARY2017 CONFIDENTIAL & PROPRIETARYOrganizational Levers18

Work practicesare at the centerof work activity Work practices exist at theintersection of planned work designand actual people behaviors.New WorkDesignDesiredbehaviors Culture provides the glue that shapesbehaviors.WorkPractices 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY19

How can we move organizations along their digital evolution?Digitally-equippedDriven by n by the BusinessDriven by StrategyThe digital organization is upon us progress is essential 2017 CONFIDENTIAL & PROPRIETARY20

How can we move organizations along their digital n by TechnologyDigitally-modifiedDriven by the BusinessDriven by Strategy Digital tools and utilities Digital-first solutions Business ecologies where digital is pervasive Access/findability – usability focused Usefulness/Relevance – experience focused Zero-UI experiences Global common systems & platforms Global common capabilities System-to-system integration Content and transactional ExperiencesContextual integration of the businessecosystemGlobal teams, aligned in culture and purpose,fuel performance & innovation Business design defines “ways of work” in thebehavioral economy Technology augmented human experiences Consumer-grade, modernized Experience 2017 CONFIDENTIAL & PROPRIETARY21

HR is a natural(and essential)leader in digitallydriven organizationalchange 2017 CONFIDENTIAL & PROPRIETARY

Your organization’s most strategic talentand cultural programs should be the focusof your most important digital experiencesEVP and strategic goals drive digital programs. Helping workers to realize their Career Journeys Transitioning from knowledge worker to learner workerCAREERJOURNEYS Personalized programs designed for Work-Life balance Fostering a Culture of Health & ORKER TOLEARNERWORKERMANAGERIALCAPABILITY Building experiential opportunities Global Mobility Powering teams via applied Inclusion practices Social responsibility as a leadership developmentopportunity Building managerial capability and modeling goodoutcomes.CULTURE OFHEALTH &WELL-BEING 2017 CONFIDENTIAL & PROPRIETARYSOCIALRESPONSIBILITY 2017 CONFIDENTIAL & PROPRIETARYINCLUSION23

The employeeexperience modelsthe digitalorganization – andhelps future-proofpeople and thebusiness 2017 CONFIDENTIAL & PROPRIETARY24

The employeeexperienceenacts newwork practicesand makescultureactionableHelps me tofind my wayand purposehereMeets mychangingexpectations& challengesGuides,encouragesand rewardsmy activeparticipationMediates therelationship ofme to mydigitalcounterpartsBridgesmy homeand workEmployeeExperienceManagesmy time &attention 2017 CONFIDENTIAL & PROPRIETARY25

The EmployeeExperience Becomesa Primary Channeland Lever in theDigital Organization 2017 CONFIDENTIAL & PROPRIETARY

A holistic digital talent program is neededKnowledge as away of mentbehaviorsEverydaylearningpracticesDiversity inactionCulture as amarketplacedifferentiator 2017 CONFIDENTIAL & PROPRIETARY27

Empoweringtalent in newbehaviors 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY28

Empowering talent in new behaviorsSharing bestpractices andguiding peers 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY29

Empowering talent in new behaviorsLeveragingtalent throughcareer mobility 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY30

Empowering talent in new behaviorsEstablishingpersonal brandand sharingexpertise 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY31

Empowering talent in new behaviorsPromotingbold ideasand fuelinginnovation 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY32

Everydaylearning33 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY

Everyday learningFuture-proofingpeople throughgrowth &development34 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY

Everyday learningConnectingpeople toexperts &experiences35 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY

Everyday learningEmpoweringindividuals innew developmentbehaviors36 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY

Diversity as acompetitiveadvantage 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY37

Diversity as a competitive advantageGlobal teams –driven bydiversityof people &thought 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY38

Diversity as a competitive advantageAccessibleforums forindividualswith sharedinterests 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY39

Digital as acatalyst fortalent 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY40

Digital as a catalyst for talentProactivedelivery ofcontextualizedinformationand services 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY41

Digital as a catalyst for talentA holisticemployeeexperiencethat maximizestechnologyinvestments 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY42

Digital as a catalyst for talentBusinessintelligence todrive talentprograms andsupport decisionmaking 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY43

Digital as a catalyst for talentOmni-channelexperiences thatfeel seamlessand useful 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY44

Culture asa unifier 2017 CONFIDENTIAL & PROPRIETARY 2017 CONFIDENTIAL & PROPRIETARY45

Culture as a unifierRealizing theEVP to attract,retain, develop& reward talent46 2017 CONFIDENTIAL 2017 CONFIDENTIAL& PROPRIETARY& PROPRIETARY