Are You Ready Sosmed KPMG

SECTORS AND THEMES people AND change
Are you ready? Additional information in Univers

45 Light 12pt on 16pt leading Organizational readiness for social mediaintegration kpmg.com kpmg.com
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Credits and authors in Univers 45 Light 12pt on 16pt leading
2012 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International.
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Abstract
Many companies that use social media struggle to successfully integrate it into their daily business routines. The challenge is frequently found within the creation, execution, and enforcement of social media policies. Manycompanies do not establish policies to govern social media usage or can find their policy difficult to enforce due to lack of employee engagement and training on the topic. Add to the mix the complexities associated with talent management of a multigenerational global workforce while taking into consideration the culture, laws, and regulations of different countries, this can seem like a daunting task. Given these challenges, it is not surprising that many executives prefer to avoid the topic by saying that they have no need for social media or policies to manage it. However, as companies begin to realize the true value to be gained by social media adoption, consideration of workforce risk is essential for avoidance of loss of employee goodwill, information breaches, and reputational damage. There is good news. Clients are demonstrating how social media innovation, which incorporates enhanced governance, facilitated through the application of change management tools to increase employee engagement can greatly increase the benefits realization of social media adoption. In this white paper, we will provide recommendations for mitigating the risks and optimizing the rewards of integrating social media in todays business environment. We will also lay out recommended methodologies that clients have successfully used to train employees surrounding the utilization of social media.
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Introduction
It is virtually impossible to avoid the buzz about Web 3.0 and how it can help your business succeed. Social media is changing the way companies enable the business, enhance brand value, engage the enterprise, and recruit and retain top talent. Thereare risks associated with using social media, for example, stories about employees posting inappropriate or confidential information online. Although these risks can be intimidating, once your organization learns how to mitigate them, it can more fully enjoy the potential benefits and opportunities that social media provides such as collaboration, brand awareness, innovation, and gateways to hiddentalentcommunities. So, how to begin a social media journey? Here are a few recommendations. First, we will discuss how you can mitigate the risks of social media through a robust social media governance program. This includes considering internal and external guidelines that help to govern your workforces use of social media. Internal guidelines should address social media use both on and off your organizations networks. External guidelines govern how the voice of the organization is managed through sanctioned use of social media for marketing and communications across all sponsored social media channels. Second, we will discuss the impact of social media on your talent management program and ways to prepare your organization to embrace social media. Third, we will discuss approaches to training and communications that will support sustainable adoption and integration of social media. Finally, we will discusshow social media is changing the business landscape through collaboration and innovation. Questions to ask to determine your organizations readiness for an integrated social media business platform: How can social media support our organizations vision, mission, and strategy? Do we have a social media policy in place and is our workforce aware of it? Is our organizations culture ready to embrace social media? Do we have leadership buy-in and are they fully engaged? How do we monitor the use of social media and measure its effectiveness/impact on our organization? Do we provide our social media team as well as our employees with continuous training? Do our management practices and reward system support and encourage the integration of social media as part of our core business strategy?
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Are you ready for a social media policy that works for your organization?
Social media integration
Social media provides great benefits. Organizations are progressing to the next level of adoption but are still struggling with the question, how do we best manage our social media programs? These same organizations are challenged with fully adopting social media and capitalizing on all of its potential benefits. In order to progress, organizations should address a number of questions. Where should guidelines for the use and management of social media be established within the organization? What areas of the organization are/will be affected? How does the organization control an environment that is rapidly evolving and will continue to do so at a greater pace? How can we implement a solution when there are no standard platforms or operating models? How can we develop a policy that is all encompassing and applicable to everyone yet specific enough to be effective?
internal risks
Employees inadvertently or deliberately leaking privileged information that belongs to the organization The creation of public, and therefore discoverable, public record related to internal employment issues Ownership issues regarding public forums/networks where employees might engage with customers to discuss business issues
external risks
The potential for viral growth of negative sentiment either in response to organization communications or simply a market discussion on products or services Inappropriate or inaccurate commentary on organization financial performance Misrepresentation of organizations position on publicissues
Potential risks
Social media presents the enterprise with two unique sets of risks. They are either internal to the organization or external. The internal risks stem from employee use of social media to discuss their work while either on or off the organizations network. External risks present themselves when organizations begin to utilize social media for marketing or communications activities. These activities can include public discussions related to products, services, or organization performance that can positively or negatively affect brand image. Therefore, we recommend that you consider addressing the following scenarios as you create your social media policy:
Given the unique nature of organizations, creating a set of policies to address social media utilization that mitigates the potential exposure to both internal and external risks requires careful consideration. However, the effort can be of considerable benefit to the organization. For example, it will allow you to tap into the multitasking and collaborative nature of the emerging millennial workforce, and you can gain market insights through carefully engaging the customers you seek toserve.
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Are you ready for a social media policy that works for your organization? (continued) Deliver real value
Many of KPMG firms clients have successfully delivered real value through formally engaging their workforce with enhanced social media policy. When a social media engagement model is defined and communicated to employees, a new set of evangelists are created. They can aid the organization in carrying positive messages to the marketplace regarding the quality of their products and services as well as the nature of the workplace itself being a collaborative environment where creativity and expression of new ideas is both welcomed and encouraged. Addressing a number of common issues such as considerations for the global nature of social media and the impact of international laws and customs on creation and enforcement can help to produce a realistic set of guidelines for your organization. The rapid evolution of social media and diversity of related applications creates a highly challenging legal environment that will need to be continually monitored. Each country in which an enterprise operates will inevitably hold their own position on employment issues related to social media. While the United States of America appears to be leading in terms of establishing case law guidance in this area, other geographic regions such as the European Union are beginning to apply their own vision to areas such as data and privacy protection on behalf of the employee. Organizations must consider workers rights in each unique geography as social media policies are customized. The ultimate goal should be to provide guidance that does not contravene legal frameworks.
The multigenerational workforce

There is a significant challenge to developing social media policies and procedures that is being posed by, leaders who are charged with creating social media policies who are often not typical social media users. Policy-making executives should start with learning more about social media tools and how both the organization and its employees are using them. Thisknowledge gap can be a considerable challenge to overcome, but in many cases, is addressable through third-party courses or the use of management consulting services. Once leaders are better informed on the nature of social media utilization in their organization, they can prepare a strategy to leverage social media as a tool that aligns with the overall vision, mission, and strategy of the organization. Careful consideration should also be given to the means by which the generational divide creates a break between management and staff when social media tools are employed by the members of the workforce. Managers should also now consider how tools such as LinkedIn and Facebook are being employed by their employees to build professional networks and how performance in these areas can be quantified and used for performance evaluations.
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Social media policy

While social media policy creation has challenges, it is not so different from previous challenges such as the adoption of corporate-wide e-mail in the 1990s. Many organizations already have the framework of a policy that governs communications, and this framework can provide an excellent foundation to consider where social media might impact the business. Therefore, a good place to start is to create a governance body of key stakeholders. Stakeholders can be defined as any person/group of individuals, internal or external to the organization who will be affected by the proposed changes, or who could have an impact on the success of theadoption. Traditionally this would include a cross-functional representation of IT, Legal, HR, Compliance, Marketing, and Risk Management that reviews current and planned use of social media against current communications-related policies. It is important to have HR and Legal involved in this discussion to make sure the emerging policies strike an appropriate balance between workplace and personal use while maintaining some level of corporate oversight. As mentioned above, for those organizations operating with a global workforce, whether directly employed or through outsourcing partnerships, it will be critical to utilize experts in local laws and customs who also have an appreciation for the factthat not all social media platforms are represented in each geographical area. Forexample,while Facebook is ubiquitous across the western world, RenRen is the current equivalent application in China. Above all, the forums created to consider social media use in the workplace must strive to provide policies that are enforceable while being absolutely clear on what is mandatory and what the consequences are for noncompliance. These policies should result in guidelines that easily create awareness and understanding of your organizations position on social media adoption. Your unique framework can be considered successful when it can demonstrate that it has been effective in building organizational knowledge of the benefits and risk of social media, and is supported through ongoing tailored communication and training.
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Are you ready to integrate social media into your talent management strategy?
Managing social media and your workforce
Organizations need to be aware of the potential risks, challenges, and benefits faced when implementing or revising social media policies and procedures while effectively managing its use in a multigenerational workforce. Proactively managing and executing a social media strategy and policy not only mitigates a number of complex risks, but can also lead to competitive gain and performance growth. Many corporations today use at least one form of social media technology, yet many of those companies are just learning about the critical requirement to clearly define the purpose of their social media strategy and accompanying policy. Implementing a successful social media policy requires alignment to business strategy, leadership buy-in, change management, and a well thought-out communications plan.
Business strategy & leadership alignment

In order to successfully implement and cultivate social media usage in the workplace, leadership may want to initially consider reviewing the level of alignment between the organizations business strategy, existing people management and communication policies, and the magnitude of the change caused by a possible social media policy adoption or revision. By aligning social media with the business strategy, collaboration effectiveness can increase by 25percent,1 while an uncoordinated or reactive method toward social media can result in failure to reach the larger organization, thus significantly reducing the effectiveness of social media and increasing risk exposure. One way for leadership to potentially increase the effectiveness of a social media policy implementation is through the aid of an influential business case framework. Creation of such a framework would entail analysis of the organizational risk and cultural readiness of an organization while concurrently laying the foundation for a compelling vision and executable change strategy going forward, as tailored to the unique context and needs of your organization. This better focuses stakeholders on the change effort, in this case, the social media policy integration, through building momentum across the enterprise while building support for change and reducing employees resistance. To help ensure managers are not just engaged but make true commitments to take action, leadership action plans and diagnostics allow managers to reflect on their previous experiences, strengths, and concerns with social media to build a realistic and committed plan that they can actually deliver on, which in turn will motivate others around them. It will also help managers to understand their strengths and how they can leverage these strengths to best support the policy and procedural changes being implemented in the organization.
1 Corporate Leadership Council: Aligning Social Media with Business Objectives, 2011
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As previously mentioned, many of todays leaders are still unfamiliar with social media and are characteristically not social media users, thus clouding individual stakeholder understanding of social media benefits and risks. Lack of understanding or identification with social media can ultimatelyreduce leadership buy-in and acceptance of the evolving trend, further immobilizing the imperative change effort. It is critically important for leaders to understand socialmedia, its challenges, risks, and its countlessbenefits. The role of leaders in this process is vital, as it is demonstrable that employees will not change their behaviors unless they have visible role models, demonstrating the behaviors and offeringencouragement and support. Through properly diagnosing leadership, they may more easily understand andreflect on their own behaviors, what they are able to offerto support the change, and what they may need to changeindividually.
The degree of change

When adopting a new or revising an existing social media policy, its important to keep in mind the significance this change may have on the organization its employees, processes, procedures, leadership, etc. The degree of change and its impact need to be recognized so that the implementation can be properly managed, executed, and built for sustainability. Companies should match their strategic approach to their needed level of control and coordination. Essentially, companies need to determine how extensively and for what outcome they want to become involved with social media activities. Once the required control and oversight level have been determined, leadership needs to explore how ready their organization is to accept these potentially significant, procedural changes. Assessing change readiness helps gauge the organizational tolerance or capacity for the proposed social media policy implementation. This encourages companies leaders to develop the right solution while also creating a roadmap to move the organization and impacted stakeholders through the policy change to deliver sustainable value. The key benefit here is to understand, within the situational context, what unique risks the organization is facing and how to deal with and encourage others to appreciate thoserisks.
Figure 1
Business case development Questions to ask and answer
Why do we need to create and implement a social media policy, what are the desired benefits, and how does it impact me? How do I help ensure that I have galvanized leadership consensus for the change and how do I mobilize them to manage their stakeholders? As a leader, what can I do to best understand the change, why its needed, and how can I support my workforce through the adjustment? How do I manage stakeholders through social media implementation with a particular emphasis on proactively mitigating behavioral resistance?
Alignment to existing management practices

In addition to aligning social media policies with business strategies, they should also be aligned with people management and HR activities such as performance management, training and development, and job design. Thisalignment encourages employees to appropriately usesocial media, and also to use it as a means to add value tothe organization. From a performance management perspective, employees who violate the organizations social media policies should be disciplined. At the same time, those who promote the proper use of social media and realize benefits for the organization through its use should be recognized.
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Are you ready to integrate social media into your talent management strategy? (continued)
An example of how this can be achieved is by setting clear performance objectives in performance scorecards that reinforce competencies such as collaboration and teamwork, within the context of improving operational efficiencies, customer experience, and personal learning and growth. Another interesting trend is the shift to a mobile/remote workforce, which can potentially offer significant benefits to the organization in the form of increased customer and employee engagement, and lower costs. Organizations that wish to capitalize on this opportunity using social media may need to revisit job design. Thingsto consider in this review would be to identify roles that are suitable for mobile or remote work, and identify the competencies and skills that these employees need to possess to leverage the use of social media in order to remain connected with the organization and customer. These are just a few facets of alignment to think about as they relate to social media. The change readiness assessment exercise is a very important tool that may provide additional insight into where additional alignments may be required.
The complexities of our multigenerational workforce

As if aligning intricate business strategy to social media objectives, evaluating leadership and employee change readiness, and guiding the often resistant workforce through a change isnt enough, add on yet another layer of complexity our multigenerational workforce. Four generations make up todays workplace demographics for the first time in recent history. Traditionalists working alongside millennials their working styles couldnt be more different, and their understanding of each other, not more incongruent. This is clearly evident in workplace adoption of social media. With these intricacies of an ever-so-different workforce in mind, it becomes especially central for social media strategy creation and the user adoption process to consider the perspectives and needs of all affected stakeholders. While a Generation Y employee may have no issues being asked to suddenly use certain social media tools, a baby boomer may feel overwhelmed and frustrated by such a request. Traditionalists and baby boomers alike prefer face-to-face meetings or phone calls, while Generation X and Y dont necessarily need, or want, face-to-face encounters. Relationship building for this group often occurs through simply pinging their social media networks (see figure 2 for more examples). With such stark distinction in workplace preferences, implementation of a policy or procedure centered on social media can prove to be challenging. One way to better understand how a social media policy change may affect the broader organization is through assessing how each stakeholder group may be affected by the change. Such analysis helps to zero in on high-priority impacts and highlights key stakeholder requirements such as the necessity for training due to the need for employees to gain new knowledge, skills, and abilities essential to effectively adapting to the policy/proceduralchanges. Age is often not the basis for the issue; its more the acceptance, readiness, and adaption to change. In fact, research has shown that the fastest growing demographic for Facebook and other social media tools are those aged 50 and above.2
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Are you ready to integrate social media into your talent management strategy? (continued)
Baby boomers and traditionalists are able to quickly learn and use new devices. However, introducing a new piece of technology to this population will be different than introducing it to those who have grown up with technology from their early years. As adoption of social media tools, both for internal and external communications, readily grows, it becomes important to clearly define and articulate your social media policy. While baby boomers and traditionalists may be more resistant to initially using social media and accepting social media policy, Generation X and Y will almost positively grow frustrated if an organization does not use social media or fails to properly manage or recognize its use. Contrary to popular belief, if controlled appropriately,social media has shown to increase productivity and employeeengagement, and foster innovation through collaboration. As a result, morethanhalfof the organizations using social media technology have achieved best-in-class performance.3 When implementing social media or creating new policies, developing a strategy that focuses on such multigenerational differences becomes a fundamental building block for success and sustainability. Demographic differences can affect everything from communications, to training, to resistance to change, to user adoption, and other components. Organizationsshould focus on how social media may specifically affect each generation through effective stakeholder assessment and management, while executing a communication plan that seeks to accommodate individual differences and will not only positively affect the change effort, but it will also result in lastingchange.
Essentials for success: communication

To effectively implement and cultivate the appropriate usage of social media in our multigenerational workforce, it is critical for organizations to develop effective communication plans that allow for ongoing dialogue and feedback. Communication serves as a strategic change lever to proactively manage the organizational and individual resistance to the successful integration of social media. Effective communication helps put into practice the internal and external guidelines required to govern its use. This is realized by increasing the awareness, understanding, acceptance, and ownership of a multigenerational workforce toward the proposed new ways of working. A carefully planned communication strategy often starts with a communication assessment, focusing on three components: a communication channel/vehicle analysis, an audience analysis, and a communication culture analysis. The key objective of a channel/vehicle analysis is to identify the opportunities to leverage existing communication vehicles (such as e-mail, letters, Webcasts, Twitter, Facebook, blogs, etc.) and to explore the possibility of new channels for an ongoing dialogue and feedback.
2 PewInternet: Older Adults and Social Media, 2010 3 See Ref: 1
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An audience analysis is typically used to identify and segment the affected stakeholders and their needs, with respect to effective execution of social media guidelines. Lastly,a culture analysis helps to identify the most preferred channels/vehicles of communication for the multifaceted stakeholder groups. In practice, creating such a communication plan may involve analyzing current communications around social media policy and adjusting those based on the new requirements and identified stakeholder groups, while developing a communications implementation strategy that includes a variety of the preferred communication means.
While communication assessment acts as a foundation for creating a tightly aligned communication strategy, the communication strategy facilitates the transition from awareness to the actual ownership and adoption of social media guidelines. Effective communication enables consistent messaging across the organization, engages stakeholders, optimizes awareness and ownership, and mitigates resistance to successful integration of social media policy. Within the following sections, we will dive deeper into communicationsplanning.
Figure 24
What do we think about social media Generation Y (16-30 years) I like to ping my social media network or just send a quick text. Itsall about efficiency and speed. I think Facebook, Twitter, blogs, etc. are great ways to foster collaboration and innovation in mycompany. I dont need to see my peers to build a strong relationship with them. Baby boomers (47-65 years) Business is most effectively conducted in face-to-face meetings or at least over the phone. Face-to-face interactions build better rapport and stronger relationships. I have started experimenting with Facebook and Twitter, but I honestly dont understand what all the hype is about. Generation X (31-46 years) I prefer to do business over e-mail. Ifind it more effective. Face-to-face meetings are needed occasionally but in reality, things can be done via e-mail. I dont have a problem adjusting to Facebook and the other social media sites, but I dont have to use it.
Traditionalists (66-86 years) I have only conducted business through face-to-face meetings. Thatis just how it works best. What even is Facebook? I dont see the value of social media as a workplace tool. It lowers productivity. Why do I have to share everything I know with the younger workforce? I have worked long and hard to gain the knowledge I have today.
4 Adrienne Fox, Society of Human Resource Management, May 2011

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Are you ready to train and communicate with your workforce on social media?
Why social media training?
Social media is such a new tool that many organizations do not yet know how to conduct training around the topic. Training employees on social media policy can enable organizations to mitigate risk and realize its full benefits. The way an organization approaches the training and communication strategy dictates how effectively the tools will be used and the overall success of the program. Throughout the training process, it is critical to understand that communications and training are interlinked. As mentioned in the previous section, an effective communication strategy is multifaceted and recognizes that every generation interacts with social media differently, and thus, the training approach needs to be tailored to those unique experiences and needs. Failing to acknowledge these factors may lead to the development of training that is neither fit for purpose nor successful in its application. Employees should be aware of their organizations social media policy before, during, and after the training. It is not realistic to expect employees to understand policies and effectively use social media tools after participating in just one training session. Further, when designing training content and communication strategies around social media policy, it is important to recognize the differing needs of our multigenerational workforce. These different delivery methods are extremely important as they will have a great impact on the implementation process. We will discuss different methods as we move forward. Managers need to understand how social media can support their business, how to help appropriately regulate and monitor their staffs activities, how to manage issues, and how to access utilizations and effectiveness reports and statistics. Theyneed to be trained how to respond to social media activity regardless of whether they have a formal strategy to leverage social media in their marketing andadvertising. Employees need to understand the benefits, potential risks, and issues related to their social media activities. They should be shown how to manage their activities effectively by understanding the tools available and how these tools can be best applied to realize full benefits. To effectively mitigate social media risks, employees may need to be trained how to deal with negative or aggressive comments that may be posted about the organization or how to appropriately respond if comments are misinterpreted and create unexpected, or potentially damaging, results. When thinking about training delivery, here are a few factors to consider: Large classroom-style training may be effective in teaching employees the technical aspects of using social media tools, but they are generally not sufficient in the long term, particularly in helping to understand the why of using the tools and the how in effectively helping employees achieve their communication goals. One-on-one coaching methods (like mentoring) actually achieve better results: this way the training can be tailored to best suit the needs of the individual and can initially be targeted towards employees who have a genuine interest. The organization can support early adopters to set a positive example of effective social media usage, and to promote the benefits, as demonstrated in Case Study X. Bear in mind that the skills required to be effective with social media cannot be taught in a single lesson. They require practice, patience, and time.
Making the best training and communication choices

The extent to which your organization wants to leverage social media tools directly dictates the training content and accompanying communication methods. Marketing the benefits for the effective use of social media, as well as the availability of training around the topic are important steps in creating an effective policy and collaborative environment.
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Case study: Australian R&D firm

In this case study, the organization chose to implement an integrated approach to training. This included an early awareness campaign, using video and in-house newsletter articles. This was followed up by face-to-face and WebEx presentations providing a more detailed overview of the what, why, and how. The presentations were wellreceived but failed to achieve any true change in behavior or effective user adoption of the media. Instructor-led training sessions were then provided to explain the tools being used, providing a hands-on approach, while demonstrating their application to the organization. An in-house sandpit environment was established allowing participants to gain confidence, with a live help desk community. The greatest value, however, was gained by one-on-one follow-up sessions where the social media expert provided coaching and support in the execution ofa social media campaign with individuals.
A three-phase approach is recommended: 1. Raise awareness of the tools and their purpose by conducting high-level education/information sessions and providing a safe demonstration environment where people can experiment with the tools. 2. Provide one-on-one coaching through a network of early adopters. Supplement this with online resources. 3. Reinforce the messages through an ongoing communication program, reinforcing the organizations policies and promoting success stories. Create an online user community where participants can share questions, suggestions, and best practices. Workshop techniques can be used to support the awarenessraising phase, in particular, to highlight the importance of social media channels and the need to properly plan and monitor social media activity.
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Case study: Simulation to demonstrate why social media is an important tool to monitor Australian government agency
The participants in a workshophad a variety of experience and understanding of social mediaand represented a mixof generations. They were taken through a scenario involving the establishment of an imaginary government body. This body had created a Facebook page announcing the release of a new policy involving live animaltransportation. Participants were selected to represent this imaginary government body. The remaining participants were divided into other stakeholder groups, including those for and against the government, for example, meat & livestock traders, agriculturists, animal rights/advocacy organizations, concerned citizens, etc. Thestakeholders were encouraged to comment on the policy through a variety of channels including Facebook, YouTubeTM and Twitter. The result was pandemonium for the government body representatives as they tried to deal with a persistent barrage of comments. Many conversations began to occur on theofficial government body Facebooksite and the team had to quickly learn tomonitor other activity. The participants learned the value of constant monitoring, preparing advance responses, and responding appropriately (including no response) tocomments.
Social media training betterpractices:

An awareness campaign is an excellent method to engage a large group of employees. Establish a burning platform, or buzz, that circulates throughout the environment and becomes a viral topic of conversation. Establish an Online/Social Media Council to run this effort. This is an important component of how communication integrates with training. Use real examples and be descriptive to help employees understand potential consequences of failing to comply with social media policies. Making employees aware of possible consequences will help to make the training more effective and the employees will be more likely to comply with the policies. Using scenario-based training in which employees are asked to put themselves in specific situations can help employees internalize consequences. Make all training material available to employees before and after training, especially afterwards. This will allow employees to have material readily available when unsure of a specific policy. Do not expect employees to take everything away from a single training session.
Commit to continue improvement efforts by keeping a record of additional training needs on social media. Social media is constantly evolving and so will your training needs. Conduct focus groups with employees and managers to gain insights into areas where additional training may be required. In some instances, updates to your organizations social media policy may also be necessary. Establishing such feedback loops will allow your organization to be proactive rather than reactive on social media compliance.
Social media training avoid:

Do not bringing too much attention to generational differences, especially through the overuse of examples that call attention to the differences in social media usage between different generations. Its beneficial to understand that they exist, but consider ways to acknowledge the diverse experiences, expectations, and learning styles without calling direct attention to these differences. Do not segment employees by generation. However, it is important to account for all generational learning styles. Whilesegmenting employees based on function or role can be useful, segmenting employees based on their generations is not useful and can be counterproductive. Do not communicate policies to employees in a manner in which they feel micromanaged and not trusted. Social media fosters innovation and creativity and if used properly can do wonders for your business. However, it is critical that you do not present it in a manner in which employees believe that you do not encourage or see the value in social media. Do not punishing employees for unintended consequences of social media usage unless the employee should have been aware of possible implications based on the organizations policy.
Test employees, digital IQ to determine their understanding of social media using a questionnaire or survey and then assign them a score (e.g., level 100-400). Thenusethese scores to determine the level of training that employees should receive. Individuals with more knowledge may be able to receive an advancedtraining curriculum. Thiswill help to establish a baselineof employee knowledge tohelp customize training, as wellas measure training effectiveness.
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Are you ready for open innovation?

Social media tools have blurred the boundaries between departments, geographies, and even companies. More organizations are using these tools to unlock the power of innovation
Innovation is one of those terms that everyone is aware of, but few can truly define. Traditional innovation within companies historically came out of R&D or Marketing departments, and certainly never in conjunction with each other. That started to change as companies, whether by design or by accident, realized that when R&D and Marketing regularly communicate with each other, innovation ensues. Because of this phenomenon, many organizations have changed their approach to innovation from closed to open. With the boundaries between the organization and the external environment becoming more permeable, open innovation is fast emerging as a new order. Open innovation goes beyond the boundaries of individual people, functions, and sometimes even organizations. To achieve true open innovation, an organization must take some calculated risks because it requires integration of numerous groups including but not limited to customers, external experts from academic institutions, and cross-functional staff from all levels within the organization. Ideation, concept development, and implementation are no longer the sole development of an organizations internal resources as multiplegroups, internal and external to the organization, contribute to innovation. within the organization. At the same time, social media is fast emerging as a potent tool to bring together all key stakeholders on an integrated platform to meet a desired result. Thus, social media has huge potential to help foster open innovation. There are numerous examples around the globe where innovation is being impacted by social media. Theemergence of innovation in online communities (e.g., iPhone developer program: Gemeinsam fr die Seltenen) the dawn of innovation contests (e.g., Google Lunar X Prize: http://www. led-emotionalize.com/); the creation of innovation toolkits (e.g., Lego factory: http://designbyme.lego.com/en-us/Default. aspx; Ponoko); and the growing innovation market-places (e.g., InnoCentive; Nine Sigma) are just a few. Using social media to bring innovation and sustainability together will also continue to be a growing trend. It can be leveraged to facilitate massive ideation, tap into a large number of users, make use of collective wisdom, foster high-speed interaction, help present a diverse and global perspective, and expand the organization memory. The organization needs to consider multiple dimensions before it starts leveraging social media to further its open innovation strategy. Here are some of the key considerations: 1. Do we have an organizational culture that is conducive to enabling innovation? 2. How do we plan on motivating our employees to engage them in our innovation initiatives? 3. Can our organization design support an integrated social media approach to innovation? If not, is it flexible and scalable enough to accommodate the required changes?
Making it happen
To achieve true open innovation, organizations may have to take some calculated risks to integrate multiple groups such as customers, vendors, external experts from academic institutions, and cross-functional staff from all levels from
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Authors
George Di Fede, U.S.A. H.John Hair, U.S.A. Bhrigu Joshi, India Samantha Lee, Canada Catherina OLeary, Australia Sarah Peacey, U.S.A. Viktoria Schneider, U.S.A. Jennifer Sharp, U.S.A.
Editorial Review
Karen Isaacson, U.S.A Faisal Osman, Saudi Arabia
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Conclusion
Social media has reached critical mass and organizations should not overlook its use across the workplace. It is to their advantage to embrace the technological change and understand how it affects their business and employees. Thereare numerous benefits including enhancing public image, improved interactions with clients, and promoting creativity within an organization. But it is not without internal and external risk. Therefore, it is necessary to create policies surrounding social media and in doing so there are many different aspects to consider. Two of the main topics that should be considered from the HR perspective are generational gaps and geographical location of employees in the organization. Today, there are four different generations in the workforce, working across the globe, each having different experience with social media. While constructing policies and training, it is imperative to remember how the different generations and cultures perceive social media. The way policy and training are communicated is also vital to successfully embracing social media. Employees need to hear about the policy before, during, and after the training. Thiswill deliver a consistent message, increase awareness, and help mitigate risk. Training can be conducted in many different ways. While a large classroom can be effective in teaching the technical aspects of social media, one-on-one mentoring is often more effective in the long term, as highlighted in the Australian R&D firm case study. This approach allows people to fully understand the methods and reasoning behind the policy and how social media is applicable to their jobs. Social media is redefining how companies innovate by connecting people and ideas in ways that have previously not been explored. Organizations now have the ability to utilize knowledge from external audiences around the globe that they could never reach before. It is changing the way we do business today. Are you ready?
Contact us George Di Fede +1 212 954 5996 gdifede@kpmg.com H.John Hair +1 312 665 3606 hhair@kpmg.com Bhrigu Joshi +91 22 3989 6000 bhrigu@kpmg.com Samantha Lee +1 416 777 3551 samlee@kpmg.com.ca Sarah Peacey +1 312 665 2047 speacy@kpmg.com Catherina OLeary +61 2 6248 1470 coleary1@kpmg.com.au Viktoria Schneider +1 415 963 7021 viktoriaschneider@kpmg.com Jennifer Sharp +1 703 286 6910 jesharp@kpmg.com kpmg.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. 2012 KPMG International Cooperative (KPMG International), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis--vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. Printed in U.S.A.. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International. MCGraphics | MC-000110 | May 2012

Are You Ready Sosmed KPMG

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Are You Ready Sosmed KPMG

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SECTORS AND THEMES people AND change

Are you ready? Additional information in Univers

Credits and authors in Univers 45 Light 12pt on 16pt leading

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2 | Are you ready?

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4 | Are you ready?

The multigenerational workforce

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Social media policy

6 | Are you ready?

Business strategy & leadership alignment

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The degree of change

Alignment to existing management practices

8 | Are you ready?

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The complexities of our multigenerational workforce

10 | Are you ready?

Essentials for success: communication

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4 Adrienne Fox, Society of Human Resource Management, May 2011

12 | Are you ready?

Making the best training and communication choices

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Case study: Australian R&D firm

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Social media training betterpractices:

Social media training avoid:

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Are you ready for open innovation?

16 | Are you ready?

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