Decoding Organizational DNA: Trust, Data and Unlocking Value in the Digital Workplace
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PUTTING TRUST TO WORK Decoding Organizational DNA: Trust, Data and Unlocking Value in the Digital Workplace
CONTENTS
04 TRUST PAYS DIVIDENDS 35 ELEVATE PEOPLE. USE TECHNOLOGY
RESPONSIBLY.
09 Gain Value by Growing Trust
36 Open Opportunities. Don’t Constrain Them.
15 GIVE CONTROL. GAIN TRUST.
38 Reduce Bias—Everywhere
17 Give to Get
40 Grow People. Don’t Penalize Them.
19 Co-own Data with Employees
43 Next Steps
22 Protect Privacy—Together
46 THE ROAD TO RESPONSIBILITY:
25 Next Steps DECODING ORGANIZATIONAL DNA
26 SHARE RESPONSIBILITY. SHARE BENEFITS. 49 PPENDIX:
A
UNLOCKING THE VALUE OF WORKPLACE DATA
27 Create a System of Checks and Balances
52 ABOUT THE RESEARCH
31 Co-create Systems with Employees
57 ACKNOWLEDGMENTS
34 Next Steps
59 SOURCES
64 CONTACT THE AUTHORS
Authors Ellyn Shook Mark Knickrehm Eva Sage-Gavin Chief Leadership & Human Resources Group Chief Executive, Senior Managing Director, Talent and Officer, Accenture Accenture Strategy Organization, Accenture Ellyn is responsible for helping the Mark leads teams that focus on solving Eva leads teams that help the company’s company’s 469,000 people succeed both clients’ most pressing challenges at the clients harness digital technologies and professionally and personally. Her global intersection of business, technology and evolve their workforces to innovate, unlock team of HR leaders and experts is operations—helping C-suite executives new sources of value and “lead in the reimagining leadership and talent develop strategies to transform their new.” Eva plays a pivotal role in shaping practices to create the most truly human organizations. His recent work examines the practice’s market strategy, including work environment in the digital age. She the role of trust in the digital age and its offerings and investments. frequently advises clients who seek to impact on business performance. learn from the large-scale talent transformation she’s led within Accenture. 3 DECODING ORGANIZATIONAL DNA
Trust Pays Dividends
Companies are waking up to an untapped source of Absolutely. If businesses don’t use this data responsibly,
business growth: vast amounts of new data on they risk losing the trust of their employees and, as a result,
work and the workforce that can unlock the more than 6 percent of future revenue growth. But if they
potential of their people. This data—now available adopt responsible strategies, the trust dividend would be
through a range of digital innovations—is both a worth more than a 6 percent increase in future revenue
goldmine and a minefield. growth. Ultimately, up to 12.5 percent of revenue growth is
at stake.1 Is there a clear path through this rough terrain?
On one hand, value as far as the eye can see:
employees who are more motivated, engaged and Here we present an approach to help leaders use this data
highly productive. On the other, the potential for to “decode organizational DNA” responsibly—driving value
misuse of data: individual rights ignored, while earning the trust of employees, investors and society
employment wrongfully terminated and employees’ as a whole.
skills underutilized. Yet another CEO issue?
4 DECODING ORGANIZATIONAL DNA
As people and intelligent technologies increasingly interact,
they leave an ever-expanding digital trail of work—such as
the algorithms that judge the quality of a software
developer’s code; the distance a driver has covered and her
What is Decoding
route; how many products a worker has assembled; and
how people are spending their time, and with whom.
Organizational DNA?
This newly available data flows in real time, helping a With the advent of new This data about people and their
company grow the business, become more agile and technologies, leaders have work help reveal the DNA of the
efficient and unlock employees’ full potential. unprecedented visibility into people organization, enabling its leaders to
and their work. Data can now be better understand how and why it
Leaders Say New Sources of Workplace Data Can Help… mined from a variety of new works and what makes it tick.
sources—including employee work Untapped organizational data covers
applications like email, calendars or work processes, the performance of
social collaboration tools; smart people and, increasingly, the way
77% 76%
sensors embedded in the workplace; they collaborate with intelligent
video or voice recordings; or machines. It has the power to
employer-provided devices like improve everything from innovation
wearables, cell phones or to agility to cybersecurity to
Grow the Business Transform the Business
computers—and then converted into employee performance and
for Agility and Efficiency
insights, decisions or automated engagement. As with the human
actions by applying analytics, genome, companies must learn to
artificial intelligence or human decode it, and then to use it for the
74%
judgment. benefit of companies, their
employees and society as a whole.
See Appendix: Unlocking the Value of Workplace Data, page 49 for
Unlock the Full Potential
more detail.
of People
5 DECODING ORGANIZATIONAL DNA
Leaders see the opportunity. Employees understand the power
62%
and potential as well. Almost
91 percent of the 1,400 C-level
60 percent of the 10,000
business leaders we surveyed in
employees we surveyed say they
13 major economies recognize
believe workforce data will
that new technologies and
improve their lives and of businesses are using new technologies and
sources of workplace data can be
performance, with employees in sources of workforce data today
used to unlock value that is
India, China and Brazil expecting
currently “trapped” in the
30%
more improvement than those in
enterprise. (See Appendix:
European countries. (See Sidebar:
Unlocking the Value of Workplace
Attitudes Toward New Sources of
Data, page 49).
Workplace Data Vary by Country, but only
And the majority of organizations page 22).
of all business leaders are very confident that
(62 percent) are already using new
Employee openness to the use of they are using new sources of workforce data in a
sources of workplace data to a
workforce data comes with a highly responsible way.
large or significant extent.
caveat, however: 92 percent said
The problem? they would be willing to let their
92%
employers collect and use data
Only 30 percent of leaders are
on them and their work, but only
very confident that their
if they benefited in some way.
organization uses workplace data
This belief does not vary much
responsibly.
by country.2 of employees are open to the collection of data
about them and their work, but only if it improves
their performance or wellbeing or provides other
personal benefits.
6 DECODING ORGANIZATIONAL DNA
But employees harbor serious but most have yet to pay equal
concerns about fairness, ethics, attention to the ethical and
personal privacy and the impact responsibility issues arising from
on society. (See Figure 1). workplace data and technologies.
For example: Unless they earn the trust of
employees, employers won’t have Responsible leadership and two-way trust
Will employers use the data the between leaders and their people go hand
as much data to mine.
right way?
If employees believe their
in hand. When this foundation is laid, you
Will employers “spy” on their can unlock the value of the massive amount
organization is not responsibly
every move? of data that is lying dormant and untapped
using new technologies and
Will the data collected about them workplace data in a way that in organizations today. By leveraging this
accurately represent their builds trust, 63 percent would data, we can provide employees with a
performance—or turn them into a refuse to give permission for their more efficient and safer working
commodity or a mere number? data to be collected on
themselves or their work.
environment to drive greater agility, growth
Will algorithms in the workplace and innovation.”
perpetuate bias? As these concerns mount, leaders
must work proactively to Isabelle Kocher, Chief Executive Officer, Engie
These concerns should come as
overcome them. The way to do
no surprise to leaders in the wake
that: Earn the trust of your people.
of recent data scandals.
Most companies now recognize
the need for greater responsibility
when it comes to the use of
customer data and technology,
7 DECODING ORGANIZATIONAL DNA
Figure 1: Employees Are Concerned About the Use of Data in the Workplace
Recent scandals I am worried that
about the misuse the use of
of consumer data workforce data
have made me will help my I am worried my
concerned that I am worried organization treat employer will use
my employee data that my me more as a unit newly collected
could be misused sensitive data of production data on me or my I am worried
may be prone than as an work as a form of my employer
to cyberattacks individual human punishment (e.g. will use I am worried
letting me go, not technology that new
rewarding me, to spy on my technologies
etc.) every move will perpetuate
bias
64% 61% 59% 55% 55% 50%
8 DECODING ORGANIZATIONAL DNA
Gain Value by Growing Trust
As companies build trust, they will create Implications for Financial Performance
value—for the business and for Value at
employees. Accenture identified the stake,
factors that employees say most influence $bn
their level of trust in how organizations
collect and use workplace data. We have 3129 1391 08 54 343 312 279 521 312 346 191 251 273
10
modeled these to reveal the financial
Percentage points to revenue growth
impact of failing to decode organizational 5
DNA responsibly. If businesses use 8.4 8.3 7.8 7.7 7.7
6.4 6.9 6.5 6.4
workplace data irresponsibly, employee 0
5.7 5.5 5.3 5.1
trust is eroded and they risk losing more
than 6 percent of future revenue growth. -5
-6.1
-7.9 -7.9 -7.4 -7.3 -7.4 -6.6 -6.1 -5.9 -5.4 -5.3 -5.1 -5.0
(See Figure 2). But if they adopt
responsible strategies, the trust dividend -10
could be worth more than a 6 percent Global Health Travel Software
&
Consumer
Goods &
BankingC gComms &
Media
Retail Insurance Energy Utilities Automotive High Tech
increase in future revenue growth. Platforms Services
That amounts to a 12.5 percent difference
Potential gain Potential loss
in future revenue growth. For the 6,000
largest publicly listed global companies in
our research sample, this could equate to Figure 2: The Trapped Value of Trust: Three Trillion Dollars at Stake
more than US$3 trillion. (see Appendix:
About the Research). Note: The potential gain is the additional percentage points to annual revenue growth for an average company when using data responsibly in a way that creates employee trust.
The potential loss is the percentage points lost from annual revenue growth for an average company when using an irresponsible data strategy in a way that diminishes employee
trust. See appendix for the number of companies in the sample.
Source: Accenture Research analysis based on the C-suite and employee surveys conducted for this report, and S&P Capital IQ
9 DECODING ORGANIZATIONAL DNA
How Hitachi Decodes Organizational DNA
to Unleash High Performance
Hitachi is a pioneer in using results of human ingenuity when employees safer and more
new sources of workplace data employees tried new and creative efficient while also improving
to unleash higher levels of approaches to continuous quality.4 And many Hitachi
performance, unlocking improvement, or “kaizen.” AI now employees also now wear smart
trapped value in the business automatically captures the details badges loaded with sensors that
and improving the lives of and outcomes of these new collect behavioral data on them
employees. Faced with approaches—as well as real-time 50 times a second; AI then uses
inflexible business systems changes in work conditions and this data to suggest ways to
operating on a single set of fluctuations in demand—to create improve their happiness (e.g. how
pre-programmed instructions self-adapting, flexible work orders. to best structure their day).5 In one
in logistics, Hitachi turned to As a result, it achieved an test, those sales divisions that
new sources of data to elevate 8 percent boost in productivity.3 strongly adopted the technology
both agility and productivity. not only showed improved levels
In manufacturing, employees wear
By mining the digital trail of of happiness, but generated
special glasses and armbands to
people’s routines and actions 27 percent more order volume
track their eye and hand
as they work with technology, than those divisions that used the
movements. AI then uses this data
Hitachi was able to capture the technology far less.6
to improve operations—making
10 DECODING ORGANIZATIONAL DNAIf I learned a company wasn’t responsibly handling
workplace data, I would...
Refuse to give
permission for data to
Organizations are sitting on a wealth be mined (as an 63%
of data that, if harnessed, can help employee)
them unlock the vast potential of Not buy stock
their people and business. A key (as an investor) 56%
element is establishing a track
record of trust built on ethical, Not apply for a job
(as a candidate) 55%
responsible behavior as part of an
organization’s people strategy.
Organizations that have invested in Be less engaged
(as an employee) 53%
laying this critical foundation have
the opportunity to tap into this data, Stop buying from the
in turn accelerating innovation and company (as a 52%
customer)
creating a workplace that benefits
all people.” Consider leaving
(as an employee) 51%
Diana McKenzie, Chief Information
Officer, Workday 0% 10% 20% 30% 40% 50% 60% 70%
Figure 3: Employees Have the Power to Damage a Company’s Performance
If Data Trust Erodes
11 DECODING ORGANIZATIONAL DNAHow does trust impact a while those that move too slowly
company’s performance? risk their competitive position.
For one thing, it’s highly related to
remaining attractive to top talent.
Only about half of senior
executives think that existing
The Bottom Line
51 percent of employees would
legislation can adequately steer
them to act responsibly.
on Trust
consider leaving the company if
leaders did not responsibly use Faced with a lack of regulatory
new technologies and workplace guidance, 49 percent would use The Accenture Strategy Competitive Agility Index
data and, for those outside new technologies and sources of assesses competitiveness by measuring growth,
looking in, 55 percent would workplace data as they see fit, profitability, and sustainability and trust.
refuse to apply for a job at such without taking any additional Sustainability and trust combined comprise a third
an organization. measures for responsibility. of a company’s Competitive Agility Index score.
Our research also reveals that That means companies could 54 percent of the 7,000+ companies on the 2018
56 percent of people would even lose employees’ trust. Accenture Strategy Competitive Agility Index
refuse to buy company stock as experienced a material drop in trust8 in the
The recently published Accenture
individuals. (See Figure 3). previous two and half years. For a US$30 billion
Strategy Competitive Agility
Most organizations have yet to Index shows that losing any retail company, for example, such a drop could
put in place the right frameworks, stakeholder’s trust has a result in US$4 billion loss in future revenues.
policies and systems to ensure disproportionate impact on Employees are one of six stakeholder groups whose
they use workplace data in a competitiveness.7 (See Box: The real or perceived change in trust is measured by
responsible and ethical way that Bottom Line on Trust). the Index.
benefits employees. We have
But at the other end of the
found that companies that move
spectrum are companies that are
too fast take risks that are
doing very little with new sources
dangerous for their company,
of workplace data.
12 DECODING ORGANIZATIONAL DNAAlmost a third of companies
(31 percent) are holding back from
31% 49%
investing more out of concern for
what their employees think.
These organizations are
potentially leaving a great deal of
value on the table, and risk falling of business leaders say employee say they would use new
behind competitors in the race to concerns are holding them back technologies and workplace data
use digital technologies to from investing in technologies as they see fit, without taking
improve performance. that collect data on people and additional measures for
their work. responsibility.
13 DECODING ORGANIZATIONAL DNASo how should companies respond in a responsible and ethical way? They should place trust at the heart of their business
strategy, on an equal footing with growth and profitability. Trust matters. How a company does things is as important as
what it does. Trust is the currency of the digital age, and transparency builds trust. The path forward? Our research points
to a framework of three key actions leaders can take:
Give Control. Share Responsibility. Elevate People.
Gain Trust. Share Benefits. Use Tech Responsibly.
Companies must learn to give Business leaders must create a Organizations must use technology in
more control to employees. In coalition in which leaders share responsible new ways to elevate
doing so, they will gain the trust responsibility and accountability people and fix its own unintended
they need. for new workplace data and consequences.
technologies, while seeking input
from their people and ultimately
sharing the benefits with them.
14 DECODING ORGANIZATIONAL DNAGIVE CONTROL. GAIN TRUST. 15 DECODING ORGANIZATIONAL DNA
First, protections of people’s This is far from surprising: In the
work-related data are still years U.S., only two states—Delaware
People are more conscious behind that of consumer-related and Connecticut—require
than ever of how personal data data. By placing proactive companies to tell their workers
is used and misused. In attention on responsible use of they are collecting data on them
workplace data now, savvy with new technologies.9 But
response to growing pressure, leaders can potentially avoid companies don’t operate in
laws and regulations are many of the issues that have single states, which creates
evolving to give the consumer recently put some companies complexity. Similar requirements
more control over their data: under a harsh spotlight. from the General Data Protection
Regulation (GDPR) at least cover
They can opt in, opt out, Second, despite employees’
the entirety of the European
cancel their service and even optimism, the governance of
Union10 and are inspiring many
workforce data skews heavily
pursue legal action when a toward the corporation.
global companies to adopt
company violates the terms of similar practices.
a contract. Only 32 percent of the
How can companies navigate a
employees we surveyed said they
variable legal landscape and gain
Yet this isn’t the case in the are aware of how their company
the confidence of their employees?
workplace. is extracting and using their
workplace data today, and
actually consented to it. And
55 percent of business leaders
say their companies don’t ask for
consent.
16 DECODING ORGANIZATIONAL DNAGive to Get
Employees Are Willing to Share Their Data in Exchange for
Benefits (top 5 benefits)
100%
If leaders want access to valuable value proposition. 92 percent of
data, they will need to forge a new employees would be amenable to 80%
“give to get” relationship with the use of workforce data if they Customized Customized learning
work and growth
Improved
productivity and
Safety Fairer pay and
performance
employees, and share more control got something in return. And the experience opportunities performance appraisals
with them over their own data. more customized the benefits, the 60%
70 percent of employees say that in better. (See Figure 4). The problem
return for their permission to collect is, less than a quarter (23 percent)
data, they expect employers to give of companies are following the
them more control over their own “give to get” principle every time 40%
data. Transparency builds trust data is collected. 62% 61% 56% 54% 54%
too; nearly the same proportion
An exception is digital operations
(71 percent) of employees say
company BMC Software, which 20%
that they will only be willing to let
mines employees’ work
their employer collect data on
applications—including email and
them if their employer
calendar data—to track 0%
transparently communicates how
productivity, but only on an opt-in
their data will be used and the
basis. Employees get personalized Figure 4: Employees Expect Benefits in Exchange for Their Data
benefits they will receive.
feedback on how to improve their
By designing in benefits for time management in exchange for
employees when technology is sharing their data. The company
used to collect data on them, benefits by receiving anonymous
leaders can earn the trust of their and aggregated data on the time
people by offering them a bold new spent for each project and task,
17 DECODING ORGANIZATIONAL DNArelieving workflow bottlenecks and to prevent employee misconduct. blockchain to let people see what data has been
signs of overwork and burnout.11 But obtaining genuine consent collected about them, how it is being used and where
whenever possible—although more it has gone. Using the technology, organizations could
Properly securing consent
complex to manage—can pay high also let people specify who can (or cannot) have
whenever possible is the best way
dividends when it comes to access to their data.
to engender employees’ trust, and
elevating the trust of employees.
the first step in the “give to get”
process. But it can’t just be Companies should also create a
“uniform consent”—a blanket single place for employees to see,
document filled with legal jargon manage and even delete the data
buried in the employees’ contract their employer has collected about
and likely long-forgotten. them. Telstra, Australia’s largest
telecommunications company, As humans and smart machines increasingly
When Health Care Service
Corporation (HCSC) asked for
maintains an internal site called interact, they create a digital trail of their work,
MyCareer that allows workers to capabilities, learning and achievements.
consent to monitor employees with
keep and update their own career
Fitbits and remote sensors in an Properly managed and shared, this is a
data, and even challenge any
effort to ensure wellness and
incorrect or incomplete inputs. potential goldmine for leaders and workers—
improve collaboration, for example, helping to enhance decisions about people
it asked each employee and his or “As an employer, we should allow
and work. It has the potential to unlock higher
her manager to opt in by signing a employees to be able to manage
clearly worded memorandum of aspects of their data and for it to be levels of productivity, agility, performance,
understanding. This encouraged a joint exercise,” says Telstra’s David transparency and empowerment.”
conversation and outlined the Burns, Global Business Services
benefits of participation. Group Executive. John Boudreau, Professor and Research Director at the
Companies cannot always ask for To encourage greater transparency University of Southern California’s Marshall School of
consent, however. Most financial regarding the collection and use of Business and Center for Effective Organizations
services companies, for instance, data, organizations can use new
are required by law to track emails advances in technology like
18 DECODING ORGANIZATIONAL DNACo-own Data with Employees
With the emergence of new Some leaders in the business
73%
technologies, leaders are faced community are now advocating
with an entirely new set of that employees should be able to
questions. They must decide own some of their data by using
whether to use new capabilities blockchain, thereby making data
enabled by blockchain, for portable. of workers want to own their personal work-
example, to let employees own related data and take it with them when they
With blockchain platforms like leave.
some of their work-related
Jobeum and Aworker, for example,
personal data—allowing them to
a salesperson can now own some
share relevant and verified
56%
of her own data—and can provide
information with employers
a prospective employer with
quickly and at their discretion.
verified, accurate data on her
Almost three quarters (73 percent) work experiences, sales figures,
of employees want to own their and even results from internal
personal work-related data and skills assessments. In the past, this of business leaders are open to the idea.
take it with them when they leave data might have been owned and
an organization, but few controlled solely by her employer.
organizations allow it today. But with the advancement of new
technologies, she can own part of
Yet it’s encouraging that
this data—and control what she
56 percent of business leaders we
shares, and with whom.
surveyed are open to the idea.
19 DECODING ORGANIZATIONAL DNACompanies can still decide what optimal opportunities. In the
they let employees own and future with blockchain, employees
share, however. could also create a “personal data
file” that could be plugged into
Consider how Airbus is letting
personal people analytics
pilots use their own training
solutions (e.g. for career advice) or
certificate data. With air traffic
even sold to providers who are
Most legislation is built for the 20th
set to double in the next 20
looking to analyze and use Century, and we are still living with that set
years, the aviation industry must of regulations. It is time to update it to
longitudinal people data.
train more than 500,000 pilots to
Already, people can sell their
protect workers’ rights in the digital age—
meet the demand.
personal career profiles to including data ownership, privacy and the
Currently, there’s no universal right to consent.”
recruiters, monetizing their
system in which every pilot’s data
own data.
and qualifications are accessible Thomas Kochan, George M. Bunker Professor at
and verifiable by every airline. Advocates also argue that as data the MIT Sloan School of Management and Co-
is no longer lost when people director of the Institute for Work and Employment
So, Airbus has developed a proof
leave an organization, employers Research
of concept to use the blockchain
benefit, too, from access to far
to enable pilots to share their own
more complete, verified and
verified pilot-training certificates.12
trustworthy information about a
Those who advocate for data new candidate’s training, skills-
portability argue that for assessment, promotions and
employees, the ability to own productivity.
some of their work-related data
In turn, this creates a more
and share it through blockchain
transparent and efficient
creates a kind of value passport,
labor market.
enabling them to be hired more
quickly and be better matched to
20 DECODING ORGANIZATIONAL DNAThe Human Blockchain at Work
Like millions of people worldwide, many employees at the Accenture Delivery Center in
Bangalore use rideshare services to commute to and from work. With flexible shifts, these trips
often take place late in the evening. This elevated safety concerns, particularly for women.
As part of its commitment to the wellbeing of its workforce, Accenture is piloting Safedrive to
ensure the safety of Accenture employees. Leveraging our work in digital identity, blockchain
and biometrics, we collaborated with Betterplace, a local company providing comprehensive
background checks for contract drivers that authenticates the driver’s identity and background
clearance before passengers enter the car. When picking up an employee, the driver takes a
photo of themselves, which is verified through facial-recognition software and matched with
their validated background data.
The driver owns their data and can download it into a “digital identity wallet.” The driver can then
share it with Accenture or other potential employers using a “key” that unlocks data stored in the
individual’s wallet, or in the Betterplace database. This potentially negates the need for duplicate
background checks with future employers or other third parties. To ensure background checks
are up-to-date, the key must be renewed every six months.
This example shows how blockchain is enabling employees to co-own and co-manage their own
identity data and build a strong history of trust. All sides and the wider ecosystem benefit.
21 DECODING ORGANIZATIONAL DNAProtect Privacy—Together
According to our research,
preventing security breaches of
employee data is one of the most Attitudes Toward New Sources of
Workplace Data Vary by Country
important factors that builds
people’s trust in their employers.
But it’s also crucial to keep
employee data private within an
organization. 58 percent of Our research found that people’s Globally, Baby Boomers are far more
employees we surveyed said they openness and attitudes toward using sensitive about data privacy than
would refuse data-collection technology to collect data on people and Generation Z.
activities if their personal data work vary significantly by country.
was not kept private when the And then there are outliers, like Japan.
expectation was for the company People from European countries, for Japanese employees are less sensitive to
to do so. That’s why leaders example, are far less concerned about privacy issues, perhaps because their
should involve employees in data misuse than people from the U.S., leaders report that they are far more
creating privacy rules, letting India, Brazil and China—perhaps reflecting confident that they are using workforce
them have a say in determining that GDPR is working as intended. data responsibly.
who sees what, when, where, and Employees in India, Brazil and China are far
in what context. And leaders more convinced of the value of workforce
should also pay attention to how data collection.
sensitivities to privacy can vary
by country. (See Sidebar).
22 DECODING ORGANIZATIONAL DNAEmployers should maximize the anonymize it. This is far from a
opportunity for individuals to compromise. Company-wide
access data about themselves on blasts of aggregated data sets
a “for your eyes only” basis. can help everyone understand
(See Figure 5). key metrics—from engagement
to productivity to collaboration—
When it comes to sharing an
and help people collectively The more efficient we can become, the
employee’s individual data with more we can invest in the future of our
decide which key actions they
the employee’s manager, team, or
can take to improve performance. business. Workplace analytics helps us do
the entire organization, however,
leaders should be careful. While For example, Freddie Mac that through analyzing how we use our
employees are open to sharing provides only aggregated data workforce.”
data about their skills with others back to managers about their
throughout the organization, they team members regarding how
Jim Mackey, Executive Vice President and Chief
are far less open to sharing data they spend their time, and with
Financial Officer, Freddie Mac14
about their emotions or any kind whom—collected by mining
of data based on their physical e-mail and calendar data. The
movements, location, or insights help managers improve
information inferred from their the way they coach their teams.
physical bodies. As a result, Freddie Mac has
driven cultural change with
That’s why as a general principle,
managers while improving
leaders planning to share
employee engagement and
employee data with the entire
retention.13
organization or even a team
manager, should aggregate and
23 DECODING ORGANIZATIONAL DNAEmployees Say Their Performance, Engagement and Satisfaction at Work Would Improve with
Data-Based Feedback About Themselves with Suggestions for Improvement from New
Technologies
My work processes and products, with suggestions for
how to improve them 83%
Technology and trust are not sufficient to Where I’m spending most of my time against priorities,
79%
with suggestions on how to optimize my time
protect people and their data. We need to
develop systems and guarantees allowing My physical wellbeing and safety, with suggestions for 79%
people to make reasoned, consensual how to improve them
choices about how their personal data is My behaviors compared to high performers in my role,
78%
used, while also ensuring that advantage is with suggestions for development and improvement
not taken of the digital footprints they leave
My relationships and communications with others,
behind inside or outside of work.” with suggestions for how to improve them
77%
Tina George, Global Co-Lead, Delivery Systems, My energy and concentration, with suggestions for
Social Protection and Jobs Global Practice, The how to improve them 77%
World Bank
My emotions, with suggestions on how to be happier
and less stressed 74%
68% 70% 72% 74% 76% 78% 80% 82% 82% 84% 88%
Figure 5: Employees Welcome Auto-Analytics—But for Their Eyes Only
24 DECODING ORGANIZATIONAL DNAGive Control. Gain Trust.
Next Steps
Give to Get Co-own Data with Protect Privacy
Employees
Design in benefits for Decide whether to let employees Co-create fair privacy
employees own and share some of their data guidelines with employees
Secure consent Evaluate the risks and benefits of Embrace auto-analytics
data sharing and ownership
Put data management tools Aggregate and anonymize data
in employees’ hands
25 DECODING ORGANIZATIONAL DNASHARE RESPONSIBILITY. SHARE BENEFITS.
Create a System of Checks
and Balances
It’s one thing to earn
employee trust. It’s
Building a governance system to customer and employee data. In
another to maintain it ensure responsible use of many cases, that might be the
over time. This requires workplace data and technologies General Counsel or Chief
should start at the top, ideally with Compliance Officer. Some
sharing responsibility one accountable C-level executive organizations are even creating
across the C-suite and and an executive coalition. Today new roles such as a Chief Ethics
that’s rare. Only 19 percent of Officer or Chief Data Officer, to
even beyond the leaders we surveyed say a C-level ensure that data used to train
organization—as well as executive is accountable for machine-learning algorithms is
ensuring that workplace data and both truthful and diverse. At ING,
involving employees in technologies are used in a for example, the Chief Data Officer
the design of the responsible and ethical way, has four key objectives: data
although a further 48 percent say availability, data transparency, data
systems themselves. they are planning to make a C-level quality and data control. Direct
executive accountable soon. reports specialize in a variety of
A proper framework of checks and areas—including data ethics and
balances has several components. metadata (data that describes
First, one C-level executive should other data such as email and
be charged with oversight of both calendar entries).15
27 DECODING ORGANIZATIONAL DNABut because the issues are so
complex, the appointed leader
must be supported by an executive-
level coalition. This group would
represent different areas across the
The opportunity, as well as the unintended C-suite and should involve others in Technology is changing so
the external ecosystem who might
consequences, that new tech brings can be fast and can have so many
have access to employee data
so complex that there needs to be a through “as a service” agreements unintended consequences
broader coalition—across the C-suite and (e.g. software-as-a-service). that we need to take the
including ecosystem partners that access time to educate the C-suite
Telstra shows how a coalition could
the data—to provide an ‘ethical reset.’ work in practice. It uses algorithms and the board on the issues,
Together we need to look beyond the to direct technicians driving to possibilities and risks.”
traditional legal issues and focus on the big customer homes.
picture of how tech and data impacts It was particularly important to build Alex Badenoch, Group Executive,
employees, the business and society in a out the “true value proposition and Transformation and People,
responsible way.” risks for all stakeholders,” says Alex Telstra
Badenoch, Telstra Group Executive
for Transformation and People.
Chad Jerdee, General Counsel and Chief
Compliance Officer, Accenture The company built a coalition
comprising her role, which brings
an employee-relations perspective,
the General Counsel, who handles
compliance, and the Chief Financial
Officer, who oversees risk.
28 DECODING ORGANIZATIONAL DNAJPMorgan Chase employs a checks workplace practices. The number of
and balances strategy and has company proxies sharing human
multiple groups in place to guide capital information, for example, is
responsible use of technology and steadily increasing.16
data in the workplace. At the
Also, new frameworks need to be
C-suite level, Human Resources,
developed to help board directors AI is developing so fast that putting in place
Risk and the General Counsel
ensure management is responding to legislation now means it could become
partner together in a “three-legged
the strategic opportunities of both quickly outdated. Rather, we need to
stool” approach.
workplace and customer data,
analytics and AI, as well as its ethical
provide space for exploration as businesses
Explains Robin Leopold, Chief
Human Resources Officer, “Multiple risks. This goes beyond risk, audit, are only beginning to discover how to make
leaders from across these disciplines governance and ethics oversight and use of AI. What Singapore is doing is co-
come together to thoughtfully should also include culture, operating creating a living responsibility framework
consider how we balance data model and competitive strategy. together with all stakeholders—policy
insights for business benefit and makers, industry leaders, technology
Business leaders should also
respect for individuals’ privacy—
consider creating an ethics review providers, companies who use AI and
looking through the lens of strategic
board that could not only harness representatives who can speak on behalf of
business resiliency, risk and the
the coalition’s diverse insights, but people’s needs.”
ability to elevate our people.”
also collaborate with external
JPMorgan Chase has also created experts, ethicists and other
two councils focused on the use of specialists to proactively address Zee Kin Yeong, Deputy Commissioner at Personal
employee data and HR data any unintended consequences. Data Protection Commission of Singapore
protection.
A full 72 percent of leaders believe
Leaders must also go beyond the that ethicists need to be employed
C-suite and involve the board of to evaluate the impact of workplace
directors. First, investors are technology and data on employees
demanding greater transparency and society, yet only 15 percent
regarding human capital and have them.
29 DECODING ORGANIZATIONAL DNAJust Because You Can Doesn’t Mean You Should
Technologies now allow So, what’s more important: These are difficult decisions that
corporations to track everything improving customer every leader must make. When
from keystrokes to email satisfaction or potentially the data is highly intimate—like
exchanges to hand movements. infringing on employees’ right data pertaining to employees’
Some companies have even to privacy? bodies, their brain waves, or their
gone so far as to offer to embed emotions—leaders may decide
Or, consider how each year,
microchips under people’s skin, that the best course is to tread
2.78 million lives are lost due to
or monitor their brain waves. But carefully, only collecting this type
work-related stress, accidents
just because you can, should of data if employees embrace it,
or diseases.17 Technology could
you? The answer is often a if the data can be aggregated,
detect and prevent some of
difficult trade-off between the and if the greater good far
these. But is it ethical to use
greater good and individual outweighs the infringement on
wearables to monitor the stress
rights to privacy. people’s privacy. Others,
levels of workers, and to then
however, may decide to err on
For instance, some retailers are step in before a breakdown
the side of caution and decide
considering creating a system occurs? In response to both of
that the right to privacy is far
of video or audio sensors to these scenarios, about a third
more important than the value
monitor workers’ activities and of leaders feel the initiatives
that can be achieved from
interactions. Aggregated data are acceptable, a third believe
sharing it, or that some types of
patterns help employees learn they aren’t and a third believe
data are more acceptable to
how to best serve customers. there is no clear answer.
collect than others.
30 DECODING ORGANIZATIONAL DNACo-create Systems with Employees
To many employees, the design of AI or other Including employees from the
technology systems that collect and use workplace beginning would have likely
29%
data can seem like a top-down, outside-in exercise, helped it to decide which data
where human concern and opinion rank behind was appropriate to collect
mathematical formula. In fact, the human viewpoint and why. Only
is crucial to ensuring the systems offer benefits to Second, businesses can design
employees and avoid bias and unfairness in the of businesses co-create policies
employee benefits into the
design and use of technology. on workforce data that give voice
processes, increasing the
to individuals and society.
Leaders must first ask themselves: Who is in the willingness of people to share
room when these new technologies are created their data. Imagine if an algorithm
33%
and decisions are made about what data will be directing drivers’ routes for
collected and how it will be used? Too few maximum efficiency could also
companies have employees in the room; only accommodate scheduling
29 percent of leaders say they currently co-create preferences—letting a driver stop A further
workplace data and AI systems with employees. at a favorite lunch spot along the plan to do so.
way, for example. Any
Co-creating with employees is important for two compromise in efficiency would
primary reasons. First, it can avoid unintended be compensated by higher levels
behavioral changes. One insurance firm that of employee motivation.
monitored production quantity, for example, soon
found that the quality of work plummeted.18
31 DECODING ORGANIZATIONAL DNAWho else should be in the room Once the systems are deployed,
when the solutions are being employees should be
designed? While we traditionally encouraged to question, or even
Skilling-up for an AI-powered world involves relied on engineers with STEM override, algorithms. They will
more than science, technology, engineering skills to develop new also need ways to report
and math. As computers behave more like technologies, this new era of AI problems or unfair treatment to a
demands people with “HEAT” manager, the engineering team
humans, the social sciences and humanities skills (humanities, engineering, or even an internal Ethics Review
will become even more important. If AI is to arts and technology) who can Board. Imagine if an employee
reach its potential in serving humans, then offer both technical and creative received a speeding ticket as she
every engineer will need to learn more about qualities, and who can bring a raced to meet an algorithm’s
the liberal arts and every liberal arts major human, ethical perspective to the efficiency targets. Ideally, the
will need to learn more about engineering.” 19 technologies they create. And technology itself would have a
teams should be made of people built-in employee feedback loop
Brad Smith, President and Chief Legal Officer, of different genders, races and to help the algorithm learn and
Microsoft and Harry Shum, Executive Vice backgrounds to ensure that one improve over time.
President of Microsoft’s AI and Research group worldview isn’t reflected in the
system itself.
32 DECODING ORGANIZATIONAL DNAWhen we began our journey in Vodafone Business Operations,
we already had an idea of how disruptive technology like AI
would change the way we work. It’s clear that AI is changing
the way we work, including providing data that can improve
business results and benefit our people—helping them be
more creative and to serve our customers better. People
continue to be at the center of our business, leading change
responsibly and actively influencing our ability to drive
positive outcomes for all stakeholders.”
Gary Adey, Group Commercial and Operations Director,
Vodafone Business
33 DECODING ORGANIZATIONAL DNAShare Responsibility. Share Benefits.
Next Steps
Create a System of Checks Co-create Systems with
and Balances Employees
Make one C-level executive accountable, Co-create data and AI initiatives with
supported by an executive coalition employees
Enlist the board of directors Build in employee feedback loops with
opportunities to voice concerns
Create an ethics review board
Shift from STEM skills to HEAT skills when
building solutions
34 DECODING ORGANIZATIONAL DNAELEVATE PEOPLE. USE TECHNOLOGY RESPONSIBLY.
Open Opportunities.
Don’t Constrain Them.
With the right use of technology,
companies can unlock the
potential of their people,
opening up more opportunities
and pre-empting a kind of Today, technology is often used to collaborate, for example. And used
“digital determinism”—the idea screen people out of jobs by relying creatively, technology can also
that tech will determine social on a narrow list of skills, experiences identify latent and adjacent skills,
structures, cultural values and and education—limiting opening up whole new horizons
one’s own experiences. opportunities for those without a for people.
gilt-edged résumé or who want to
68 percent of business leaders try something new. But a body of AXA, a French multinational
insurance firm, has recently
told us that, collectively, they research has found that experience
and education aren’t especially developed a virtual career assistant,
have a responsibility to address for example, that uses AI algorithms
the ethical and societal predictive of performance,20 and
the half-life of skills is diminishing so to mine skills and interests of
challenge of using AI to fast that screening people on employees to determine what jobs
unintentionally manipulate specific ones isn’t very useful either. they could be suited to and where
people’s behavior and choices. they could use more training to
Leaders can now use intelligent pursue new opportunities. It works
To uphold this responsibility, technology to mine far more by aiming to answer questions
companies need to get creative. accurate predictors of performance, employees have about their
identify hidden skills and match careers, including: “Will a robot do
people to jobs they never imagined my job?,” “What other job options
they could do. They can collect data are there for me?” and “What’s the
on people’s core capabilities, like best training for me?”
the ability to learn, analyze or
36 DECODING ORGANIZATIONAL DNAAXA is now working on an While crunching numbers on skills can take on short-term stretch assignments or longer-
extension that will match a person’s and interests can be beneficial, term rotational assignments aligned to their interests
values and traits with corporate such scrutiny has left many and passions. The Talent Cloud also delivers on Cisco’s
culture to ensure employees are not employees (59 percent) concerned promise to its employees to create “one size fits one”
only able to perform in a job, but that employers will use workforce experiences that are differentiated and personalized—
will also like the work environment.21 data to turn them into and to use new technologies in the workplace to
commodities—an undifferentiated realize greater revenue, productivity and
This practice is particularly
mass. In fact, 75 percent of engagement.22
important in sectors that are most
executives themselves fear this
vulnerable to technological
development. Data-based decision
disruption. 94 percent of business
making can easily overlook
leaders say that using technology
qualitative and uniquely human
to identify people’s hidden and
factors, making it too easy to
adjacent skills will help them quickly
replace and exchange “human
reskill and retain workers at risk of
assets.” Any technology that makes workers feel
displacement.
Collecting data that reflects more human—to understand themselves
people’s preferences, needs and better, have better relationships and have
desires is one way to factor more impact in the world—will be welcomed
94%
humanity into the math. Cisco, for by them. And any technology that makes
example, developed a technology them feel like ‘I’m a number’ or ‘a cog in the
called the “Talent Cloud” that
machine’ is what they’ll reject, reducing their
enables employees and leaders to
of business leaders say using AI to match employee passions, trust and good faith in their employer.”
identify hidden and adjacent skills strengths and skills to projects or
Gianpiero Petriglieri, Associate Professor of
will help them reskill their roles by leveraging data and
Organisational Behaviour at INSEAD
workforce and retain displaced reputation. It acts as an agile talent
workers. ecosystem that lives up to the
company’s promise of “one
company, many careers.” People
37 DECODING ORGANIZATIONAL DNAReduce Bias—Everywhere.
Algorithms are written by people, The good news: used creatively, It determines whether a specific statistic or trait fed
and sometimes those people can technology provides ample into an algorithm is being favored or disadvantaged
be biased, whether they’re opportunity to reduce bias. at a statistically significant, systematic rate, leading
conscious of it or not. to adverse impacts on people underrepresented in
AI startup Pymetrics developed a
the data set.
And one might assume that if you bias detection tool called Audit AI
remove the gender and race that detects bias in algorithms. Australian software company Atlassian uses an AI-
identifiers of someone’s data, it Originally developed to root out based tool called Textio to analyze the company’s
might eliminate bias from bias in its own algorithms—which job postings for signs of bias and suggest ways to
algorithms. But this is not are used to determine if a correct them—avoiding words like “coding ninja,”
necessarily true, as the data itself candidate is a good fit for a job— for example, that tend to suggest that these are less
could reflect a skewed talent pool Pymetrics recently open-sourced welcoming work environments for women staffers,
or predominant bias that is the tool to help others audit the discouraging them from applying. As a result, it saw
already present in the workplace output of virtually any machine an 80 percent increase in the hiring of women in
or society. learning technique. technical roles globally over a two-year period.23
38 DECODING ORGANIZATIONAL DNASmart machines can also lift the Data can also be used to identify data-based insights regarding their specific
cloud of subjectivity and the behaviors that drive behaviors (for their eyes only) and how likely they
unconscious bias, helping arm improved results. At Microsoft, are to drive customer satisfaction.24
managers with facts to ensure aggregated, de-identified data
that pay raises, jobs and from everyday use of email and
promotions go to those who calendar apps is combined with
80%
deserve them. organizational and customer
One multinational financial relationship management data
services company, for example, and then analyzed to identify
increased female applicants for collaboration patterns associated
financial roles by 150 percent, with sales success.
of employees say having newly available, factual
and female applicants for all Their finding? High levels of data would improve fairness in hiring decisions,
positions by 39 percent by using collaboration predict customer and
AI to gather science-based data satisfaction and greater sales
82%
predictive of performance. per account.
Candidates’ cognitive, social and Teams engaged with twice the
emotional traits, such as the number of customer contacts in
ability to quickly process higher growth accounts, and say it would improve fairness in pay, promotions
information, are measured as collaborated double the amount and performance appraisal decisions.
they play neuroscience-based of time with these customers as
games. By using the technology, compared to lower growth
the company also went from accounts. Personalized emails
screening 150 résumés to fill a now empower sales staff with
role to just 25.
39 DECODING ORGANIZATIONAL DNAGrow People. Don’t Penalize Them.
Companies have long tracked Some use the results as grounds More than twice as many employees are positive
the productivity of employees— for dismissing poorly performing about the impact of new technologies and
using stop watches, for workers, an approach that can sources of workplace data on employees than
example, in the early 20th raise worker stress, lower job those who are negative.
century to determine the one satisfaction and increase turnover.
With the right motives, tracking employees can
best way to perform a job.
But companies that use new be beneficial for employees.
But advances in technology can sources of workplace data to
At Florida Hospital Celebration Health, nurses
take this to radical new heights, help employees learn, grow or
and patient-care technicians wear badges
creating a kind of make their jobs easier can
embedded with sensors, which track where they
micromanagement that can outperform those that use the
go during their shift, showing how often they visit
make employees feel like their data primarily to monitor and
patients’ rooms or the nurses’ station.
every move is being watched penalize individual employees.
and that they could be penalized. “We’ve never used it for punitive reasons,” says
Employees are optimistic:
Patty Jo Toor, Chief Nursing Officer.
Many companies now track and 81 percent of them say new
share real-time results on workforce technologies will The smart sensors have helped improve supply-
scorecards or in a live improve their learning, growth stocking procedures and made nurses’ shifts
gaming format. and career development. more efficient and their jobs easier.25
40 DECODING ORGANIZATIONAL DNACompanies that use workforce Cybersecurity firm Tenable uses
As leaders, we must put the business aim
data solely as a productivity- AI tools to coach sales
ahead of the tools. The same technology that enhancing tool will miss out on employees, for instance. AI
tracks real-time productivity can be used to some of the best that data and analyzes videos of sales reps
help employees flourish, or can be used as AI have to offer: the ability to and scores them on emotions,
surveillance and a source for discipline. We help employees grow, learn and coverage of key topics and
have chosen the former—to help our unleash their full potential. personality.
employees grow and learn from the newly New sources of data can help Sales reps use the tool to coach
available data. To help them become their businesses better understand themselves. Managers, who can
best selves at work.” what motivates employees, find supplement the AI with their
and play to an individual’s own feedback, can harness the
David Cauble, Chief Financial Officer, Children’s strengths and help people gain data to offer personalized
Mercy satisfaction and meaning coaching and mentoring.26
from work.
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