Privacy

Employee Engagement: What’s the ROI

Clock is ticking for Small Businesses to leverage Social Media. Can they speed up time.

Clock is ticking for Small Businesses to leverage Social Media.
Can they speed up time.

A few years ago, I was called into my supervisor’s office because of her “concern” about my commitment to the company. When I asked what triggered this concern, she said I did not have any “pictures of my family or plants” in my cubical. Instead of telling her that she was looking at me an old-school corporate  lens different than her own (my last two years at Intuit, I worked out of a locker and didn’t even have an office), I uploaded some pictures of people from Google Images and put them on my iPad, which I displayed by my desk. Ironically, that seemed to do the trick.

When it comes to engaging employees, the biggest ROI is to think of your staff just like you would a customer: seek to understand their interests, their rituals, and their ways of communicating as well as how they want to be treated.

Your employees are key stakeholders in your company’s success. Several studies show that an engaged and happy worker can reduce a company’s overall health insurance costs and take less vacation time (not sure that’s a good thing). There’s an even more important impact, though. As a recent Tempkin Employee Engagement Study showed, high employee engagement impacts the bottom line:

  • Companies with strong financial results report employees to be engaged 75% of the time —compared to organizations with weak financial results, which report an employee engagement rate of 47%.
  • Engaged employees are more than twice as likely to go the “extra mile” at work. These folks stay late, collaborate with colleagues, and recommend organizational improvements.
  • 96% of engaged employees responded that they “always or almost always” try their hardest on the job (while 79% of non-engaged workers responded similarly).
  • 75% of employees at companies who report better-than-average customer experience levels are highly or moderately engaged, while only 34% of employees in companies with lesser customer experience levels are highly or moderately engaged.

Last year, I was hired by a major software company to help them use social media in their recruitment of college graduates. Like a good consultant, I convinced the company to expand its focus and concentrate on understanding their potential employees as a unique tribe (audience) and to reconsider how the company treated them. I pointed out that even if we did great job-recruiting candidates, the biggest challenge is engaging them in their work (a Gallup poll reports that 70% of first year employees do not feel invested/engaged at work).

Based on my recommendation, the company realized that to achieve a higher level of employee engagement, it needed to think of its staff as a human beings or ‘tribes’ of humans, who have specific and diverse needs, desires, and wants.  The company understood that employee engagement starts during the recruiting process, continues through training, on board, and even after the employee leaves the company. Yes, there is even a possible ‘reincarnation’ phase when an employee returns for a second tour of duty. Schwab calls these “Boomerangers.”

Besides looking at the employee through a realistic life cycle lens, there are several factors that improve employee engagement, a few of which I learned during my tenure at Intuit:

  • Create a Learning Environment. Today, when older employees have to reinvent themselves and learn new skills and younger employees have a desire to absorb information and learn new technology, it’s important to give employees the room to do this. Intuit had a great approach called “Learn-Teach-Learn.” It was a modified version of Noel Tichy’s virtuous teaching cycle. While Tichy and others focus on management playing this role, Intuit was able to bring this philosophy to the front line workers, meeting one of the key needs of its employees.
  • Believe in Voice of the Employee: After working with more than 10 Fortune 1000 companies in the last two years, it’s clear that very few of them allow their employees to have a voice at the table. Although corporate business decision-making is not always a democratic process, it’s important to let every group be heard, otherwise, you could find yourself in the middle of an Arab Spring. (OK, maybe that’s a slight exaggeration : )
  • Create a creative environment: Employees from any department at Intuit, for example, could sign up for ad-hoc problem-solving pow-wows called “Idea Jams” that lasted a couple of hours. This “unstructured time” ultimately proved productive, enabling workers to apply their brainpower to any challenge that interests them.
  • Reward does always require money : While everyone loves to make an extra buck, sometimes symbols and rituals can go a long way. Intuit created custom imprinted poker chips that were small, easy to carry, and colorful, with each one highlighting one of its 10 company “core values.” When employees witnessed a co-worker living an intuit core value, they awarded them a poker chip. According to Brand Alliance , employee engagement scores increased 10% after their introduction.
  • Identify their personal goals. First time employees on my teams are always shocked when I ask them: “What are your career goals, and what skills sets do you want to learn for a future job at our company or somewhere else?” Google attempts this with their 20% time, but I try to get the employee to be more specific about what skill sets they want to acquire.
  • Allow Social Media participation. Years ago, I presented a How-To-Blog workshop at Dell to a large group of employees. Afterwards, the VP of Marketing stood up and reminded everyone that they could blog “only if corporate reviewed their content first.” When I heard that I felt sorry for Dell’s staff, especially because I came from a corporate culture that encouraged employees to participate in social networks. It is important to trust your employees (after all, why did you hire them in the first place?) and to know that whether you like it or not, they, like everyone else, are social media ambassadors for the company. For better or worse, many people spend a great part of their day expressing their views on social networks. So instead of constraining them, provide guidelines, guardrails, and guidance so they know the implications of posting online.

High employee engagement scores will reduce the potential employees’ misbehavior in social networks. After all, you don’t want your staff bad mouthing you on Facebook or Twitter. Imagine how a happy and engaged employee might represent the company on social networks. At Intuit, we provided an opt-in training program for employees that focused on how to participate in the latest and greatest social network as well as information on the legal and privacy implications of their online activities.

I hope old-school managers, like the one I referred into the first paragraph, reads this blog post, and realizes they need to wake up to the needs of today’s employee.

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Future of Work Interview: Robert Brownstone, Technology, eDiscovery and Computer Forensics, Fenwick and West LLP

This interview was written up while drinking a Soy Latte at the Swank Bar in San Francisco’s Pacific Heights neighborhood.

A “Make Your Own Major” Type of Job

For the last 18 months, I have become interested in the emerging fields of Digital Risk, Crisis Management and Cyber Security. So, I decided to reach out to Robert Brownstone (@ediscoveryguru) from Fenwick and West, LLP. I know Robert from when I sought his advice on the Internet and the Law. Normally, we share stories and exchange ideas while eating Chinese food on Castro Street in downtown, Mountain View.  Our meetings remind me of George Costanza and Jerry Seinfeld, engaged in this intense conversations at Monk’s Cafe. Today, however, I telephoned him from the Human 1.0 office in Cambridge, MA, where there is only one restaurant (Italian, not Chinese) within walking distance.

Brownstone started his career on Wall Street as a white-collar crime litigator in fraud cases. He then became law school professor and program director while working as a part-time lawyer. For the last thirteen years, Brownstone has been working out of Fenwick’s Silicon Valley office where he has his hand on the pulse of legal and technical issues impacting, some which impact of the most innovative companies in America.

Bill Fenwick, the firm’s founder, originally hired Brownstone as his “experiment” and gave him the title Knowledge Manager.  He wanted to take a law teacher and litigator, and as Brownstone describes it, “pump my head with as much computer knowledge as possible in hopes that I would continue to spark some new developments and opportunities for the firm.” Fenwick asked Brownstone to focus on electronic discovery, IT, Data Security, and Legal issues with the intention of sharing these learnings in two ways: “in house” with Fenwick attorneys and “out-house” (really called “outsiders”) with Fenwick clients.

Brownstone characterizes his role at Fenwick as a “make your own major type of job,” where he has often finds himself immersed in issues such as intellectual property, the protection of trade secrets, data security strategies, and employer-employee disputes over data. To make all this new information useful, he says, “the secret sauce is understanding  (our) clients’ business and how their internal information systems work.”

Digital Law: Riding the River

In representing many high-tech and life science companies, Brownstone has found that his main challenge is in the area of Digital Law, which is in flux right now with the Courts wrestling with some major issues, such as:

  • How to protect data secrets and information and what to do when their use is in dispute
  • How to handle electronic information over a lifetime –from creation to usage to destruction
  • How to handle electronic information issues when a company gets sued or when there’s an electronic discovery (e-discovery) request 

Clog That Drain: Prevent Data Leakage and Cut Your Losses 

According to Brownstone, there are essentially three ways information can leak from a company:

  1. An employee or some other insider is intentionally trying to harm the company and puts information in front of the public (sometimes via the Internet). The most highly publicized examples would be from the Wikileaks site. Basically, someone is trying to harm an organization through disclosure or an accusation.
  2. An intentional disclosure becomes unintentionally harmful.  An employee, executive, or other insider posts something (i.e. a photo or a tweet) but he or she does not know the FTC prohibits specific kinds of disclosures under certain circumstances. [Having managed online communities and social networks since my AOL days in the mid-1990s, I would say this happens at lease once or twice a year for many companies.]
  3. An unintentional disclosure. Confidential Information gets out via a smart phone, laptop, device, or paper when the item is stolen, hacked or lost. There is no malice or intent on the part of the employee or client, but the information still gets leaked.

Even if the law does not require it, companies can reduce their risk and exposure when it comes to data leakage. Two ways to reduce a company’s risk exposure are:

  1. Role-Based Access Control or what IT folks call RBAC, which essentially means that not everything within the virtual or physical world is open to everyone in the company. For example, different permissions granted to folks who need to access databases, etc. Brownstone calls this approach “narrowing the risk of leakage.”
  2. Encryption, particularly for company-issued devices (laptops, phones, etc.) to the extent the data can be encrypted. Two purposes are served. One: companies can prevent someone who steals or finds a lost laptop “from sucking out, bit by bit, the data on that drive and booting it up in another machine.”  This measure is important.  First, companies want to protect their employees and their data. Second, companies will not have to take a hit financially or in the court of public opinion by having to announcing a data breach. (Note: some States handle this differently and for customer-relations reasons, many companies choose to voluntarily disclose breaches to their users).

The Mobile Horse Has Already Left the Barn

The ubiquitous usage of mobile devices makes controlling a company’s data even more complicated and gives Information Technology (IT) leaders multiple headaches. Brownstone advises companies to consider issuing a second phone and to officially notify, educate, and remind employees that “Anything which involves your company device” is the company’s property.

Brownstone states “this is the cleanest way under the law to handle data on a mobile device – it is a clean way to deal with a complex issue.” He points out, however, “It gets tricky because most organizations, especially hi-tech companies, are in the mode of not wanting to stifle employees from being able to hook as much as possible into the network at any time wirelessly or otherwise” and from their devices of choice.” 

Leaving employees to (literally) their own (mobile) devices exposes the company to multiple security issues. If a company decides to follow this route, it can be difficult to change how employees operate. Brownstone points out though “If the horse is already out of the barn in a data security situation, then it is a lot trickier in advance to establish good practices.” In most cases, employees are already using their own phones for work so it’s a challenge for a company to regain control. 

Warning: You Have The Whole World In Your Hands

Other significant mobile-related considerations involve location services:

  1. Due to GPS technology, employers can potentially track where their staff is and has been and has been at all times.
  2. The frictionless sharing of Facebook, for example, means that employees download an app and opt in to sharing, or when they log-in to a site that uses Facebook credentials, their personal information gets shared.
  3. The Fourth Amendment has not prevented courts from allowing law enforcement to seize an individual’s mobile device.  In some instances, officers practice computer forensics and carry a tool that can do bit-by-bit capture of certain types of data off of a mobile device, e.g. employee data, and by logical extension, employer data. This significant information becomes not just mobile, but able to be seized by law enforcement.
  4. Remember: Not everything stored on a mobile device is encrypted!

Potential Disasters and Detours

I ask Brownstone about some of the more organizational challenges his clients face. He mentions:

  1. Sales people negotiate and close business deals by sending instant messages. If there were ever a dispute about a contract, one General Counsel feared she might not have an actual copy of the final terms of the contract. She asked Brownstone to write her a new policy, forbidding negotiations over IM.
  2. General Counsel and the CIOs/CTOs are not alwasy on the same page (or even in the same meeting). Brownstone illustrates this concern with a story about how he witnessed an IT leader telling his executive team that he had thought he was following Legal Department orders when he had captured, stored, and logged all employees’ instant messages for the prior three years. This turned General Counsel red in the face and feared all of the information would be available if the company were ever subpoenaed and had to collect, process and review all the information. The discovery process alone could cost more than any lawsuit.
  3. Brownstone cites an article that says “Lawyers are from Mars and ITs are from Venus, so you need a translator.” Both groups are infamous for their acronyms and jargon. Getting them to work together during discovery can mean interplanetary mayhem. (You can find the article here as well as some material Brownstone-co-authored on that theme).
  4. Anticipate all the potential data leaks and make a prioritized list. Brownstone recommends working through them over time. Don’t try and conquer the law in one day.

Your Employees’ Own Personal Pages 

Since I am conducting a social media-training program for a Fortune 500 company, I ask about employee-owned Facebook and LinkedIn pages. Brownstone states that it’s more challenging to establish rules for company-sponsored pages than address what employees might be doing with their own pages on their own time:

“The law is really unsettled…and there are some issues that cut across both arenas of company-sponsored and individual pages. For a company of a substantial size, if someone anonymously posts praise or an endorsement of (that) product, the FTC calls it a testimonial, and if they don’t disclose that they work at the company or are a spouse of someone that works at the company that actually runs afoul of the long-standing FTC guidelines for online product endorsements“. [Disclosure: I worked with the FTC on this in an advisory capacity while serving on the board of the Word of Mouth Marketing Association in 2008.]

Brownstone points out that even in the age of disclosure and transparency, publicly traded companies need to be alert: “It is very dangerous for someone to post anonymously even if they are praising the company. In some instances this is called ‘sock puppeting.’ (Read the Wall Street Journal’s article about a famous example of this involving the CEO of Wholefoods)

Brownstone recommends that companies focus on “narrowing the risk” by:

  1. Providing training for employees
  2. Implementing a Rules Based Access Control approach
  3. Using encryption as much as possible (and don’t just depend on the Cloud)
  4. Communicating with your legal advisors as soon as possible so they can advise and reroute rather than react or put out a fire
  5. Cleaning all devices before and after international travel
  6. Having a clearly identified owner for company branded social media pages. 

Note: the law is more stringent overseas, e.g. a company cannot just say they can confiscate an employees device because it is presumed that personal information exists on it.

For More Information

Brownstone speaks at conferences often, offers webinars, and publishes quite a bit. He is also an avid online reader of law and technology items, especially of what lawyers used to call “Advance Sheets.” His favorites include Law Technology News, the New York Times (especially the Business and Technology sections), Compliance Week and beSpacific. He also relies on his mentors including:

  • Bill Fenwick, whom we discussed above
  • Matt Kesner, Fenwick’s CTO
  • Browning Marean of DLA Piper, a large business international firm
  • Kevin Moore, Fenwick’s IT Director
  • Patrick Premo, a Fenwick litigation partner championing efficiency and alternative fees
  • Delos Putz, Professor Emeritus of USF School of Law

(Brownstone provided a bibliography below about eDiscovery, Computer Forensics and Technology).

Brownstone loves eDiscovery and all things “e”.  As he explains, “My wife and friends of mine say it puts them to sleep when I start talking about eDiscovery. But, I have to say as a technologist, I have seen his passion first hand. Our one-hour scheduled Chinese food lunch hours often turn into a two and half hour discussion. Fortunately, he doesn’t bill me by the hour for these talks but freely exchanges ideas as he does in his many presentations around the hemisphere.

Thank you for visiting.

Big Data and Privacy

 

This weekend I had some down time and decided to read The Daily You by Josephy Turow, dean of Graduate Studies at the Annenberg Communications School at University of Pennsylyania.

And all I can say is that this book is a must read for anyone working in the digital space, especially advertisers. The book starts out with a nice history of web advertising and then goes on to discuss today’s customized advertising, discounts, news and entertainment , all of which are being tailored by newly powerful media agencies on the basis of data we don’t necessarily know they are collecting and individualized profiles we don’t know we have. Advertisers are placing individuals into what the author calls “reputation silos.” (These are really different psychographic type of segments)

For example, you might be categorized as a Caucasian living in New York City who only eats organic foods and watches Mad Men every week. Is that such a bad thing? It depends on what types of ads and offers are being served up to you based on this information.

The main message of the book is that although we love cool new web based technologies and platforms (Facebook, etc.), the consumer runs the risk of limiting our privacy and anonymity to advertisers.

Reading this book reminded me of my days at AOL, when I worked on their first commercial Internet properties, GNN and WebCrawler, creating advertising inventory. One day back in 1995 stands out for me. It was when Proctor and Gamble, the largest media buyer, wanted to advertise on several of our properties. My co-workers and I spent the rest of the month running around like chickens without our heads making sure everything went perfectly for P&G. It was a simple reminder that the advertiser rules when revenue is involved.

According to the author, we are just at the very beginning of an advertising or consumer behavior tracking revolution as advertisers aim to integrate consumer information across multiple platforms (the web, mobile, and TV). This is Holy Grail for marketers. Companies like Google will also use this information to serve up personalized search results, not just ads. Ironically, when people were asked how they’d feel if a search engine tracked what they searched for, 65% said it was a bad thing. 73% overall said they were “Not OK” with personalized search, since they felt it was an invasion of their privacy.

Although Turow doesn’t touch upon Facebook’s and Google’s recent and ever-changing advertising privacy policies in the book, he does provide some good commentary on this topic in a recent interview he did on NPR’s Fresh Air with Terry Gross.

So far, The Daily You has not gotten the press it deserves. So, take a chance, buy it and read about where media and advertising are going. And for those folks who are media buyers or work with major advertisers, it is important read because of it will provide some valuable insights into customers’ and viewers’ privacy concerns.

Companies can get more informed and responsible by becoming members of the Network Advertising Initiative (“NAI”) and adhering to the Digital Advertising Alliance’s Self-Regulatory Principles for Online Behavioral Advertising. If you’re an online user, you can find out more about online behavioral advertising and learn what choices you have and how to use browser controls and other measures to enhance your privacy.

Since online advertising is becoming more and more complex, what do you think both publishers and advertisers should do in the face of the increasing discussion about consumers’ privacy?