Kevin BrettJ410

May 9, 2013

Customers: “Customer Satisfaction”

Employees: ?

Owners: Shareholder Value

Wal-Mart: 2.2 million FedEx: 228,866 Starbucks: 160,000 Amazon: 88,400 Whole Foods: 64,127 Nordstrom: 58,140 Microsoft: 55,455 Intel: 48,350 Nike: 44,000 Cisco: 35,336 Google: 34,311 REI: 10,757

High unemployment; High underemployment

Sense that employees are trapped

Fungible commodity

Depreciating asset

Customer satisfaction; Shareholder value are higher priorities

Talent (engineers, architects, auditors, analysts, lawyers, PR/marketing pros…)

Customer/partner/supplier/shareholder relations

Word-of-mouth advertisers

All great organizations have valuable employee contributors

2012 2013 Academic/expert, 68% 69% Tech Expert, 66% 67% Financial/industry analyst, 46% 51%

Person Like Myself, 65% 61% NGO Representative, 50% 51% Regular Employee, 50% 50% CEO, 38% 43%

64% trust companies that treat their employees well

C-Level listening tours, webcast

Two-way corporate Intranets

Employee magazines via Web

Employee videos via Web

Quarterly conference calls

Three Intranet stories per week to inform and build morale

LSI Logic Employee Communications Preferences/Quantitative Survey of 400 Employees

1. Management Town Hall Meetings, 93%2. Company Intranet Portal (Planet LSI), 73%3. Logically Speaking (Qtr. Magazine), 29%4. LSI World (Qtr. Video), 29%

Result: Shut down magazine and video; emphasized management meetings and intranet;saved $250,000 annually

Companies acquire companies to gain new technology and talent

Approximately 70% of deals fail (e.g., Time-Warner/AOL)

Acquiring companies blow integration

Acquired employees head for the exits

Need to welcome acquired employees make them part of the team

Organization’s most valuable asset

Goes home at night; will they return in a.m.?

Retention becoming a big issue

Treating employees well is a winner

Use digital tools to communicate

Rely on credible communicators

Motivate your best and your brightest

Google – Search engine SAS – Privately held software developer CHG HealthCare Services – Healthcare staffing Boston Consulting Group – Management techniques Wegmans – Supermarkets NetApp – Data storage Hilcorp Energy – Energy Provider Edward Jones – Financial services Ultimate Software – Software Provider Camden Property Trust – Apartment developer

The recession/lousy economy will eventually end

The siren call of the “cherry picker” is in the air

“Retention” will become a big issue

High costs of replacing workers (~$60k)

Employees are shareholders too (ESPP, stock options)/Increasing CSR Interest

Why layoffs?• Insufficient revenue to meet payroll

• Need to restructure company – eliminate businesses

• Need to eliminate redundancies after acquisitions or mergers

• Survival

Survivors

Impacted employees

Customers

Media, especially local media

Financial and market analysts