Employee Engagement through Strategic Shift. Yvette White

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Employee Engagement through Strategic Shift Yvette White

About Microsoft Our Mission Empower every person and every organization on the planet to achieve more Our Strategy Build best-in-class platforms and productivity services for a mobile-first, cloud-first world Our Ambitions Reinvent productivity & business processes, build the intelligent cloud platform, create more personal computing Location Employees Our Workforce Roles Percent Worldwide 112,388 Engineering 45% USA 61,030 Sales & Marketing 48% Washington State 42,970 Finance, HR & Legal 5% Business Functions 2%

Fun Facts 80% of the Fortune 500 companies are on the Microsoft Cloud. More than 200 million devices are running Windows 10 in 192 countries across the world. (That s nearly every country on the planet.) Our goal is to reach 1 billion Windows 10 devices by 2018. Office is used by 1.1 billion people and has been downloaded 340 million times on iphones, ipads and Android devices. Skype users make up to 3 billion minutes of calls each day. Microsoft donates an average of $2.6 million in software each day to more than 86,000 nonprofits around the world.

Employee Engagement Discussion How to keep employees engaged through major strategic changes How employees shift company cultures and maintain focus Way to measure employee engagement Tools to guide employee focus

Employee Engagement definition Emotional connection an employee feels toward his or her employment organization, which tends to influence his or her behaviors and level of effort in work related activities. Business Directory.com Employee engagement is the emotional commitment the employee has to the organization and its goals. - Forbes Employee engagement IS the art of getting people to believe

Case Study: Acquisition of Nokia

Case Study - Acquisition of Nokia Phone Business Value Drivers place focus on creating value and growing productivity Continue to accelerate share growth in smart and mobile phones Leverage Nokia s world class manufacturing and supply chain capability and skill in managing hardware margins Create synergy to speed execution and opportunity to unlock value from best in class business operations Benefit from preserving Microsoft s and Nokia s Devices and Services talent Guiding Principles direct actions and decision making Build a single company comprised of the best people, tools, processes and cultural attributes Where strategy is open, plan for optionality Reduce barriers between groups and define and leverage the right shared resources Make decisions based on data and use metrics to measure success Be as transparent as possible with information

Working as One Microsoft to innovate, execute, and compete to win. Nimble Communicative Collaborative Decisive Motivated

We believe technology should make us more human. That s why we are connecting people with great mobile products that sense the world. In all that we do, our values guide us: Make it great for the customer Challenge and innovate Achieve together Act with empathy and integrity Our promise is to create technology that makes us more human.

Engagement Survey

Engagement Survey Measurement over the integration to ensure momentum and inform engagement plan Employees answered on leadership, culture and strategy elements. 5 point scale and open ended comments Metrics tracked quarterly for 18 months

Example Index Scores 100% Employee Experience Index: Subset of MS Poll items designed to attain a pulse on workplace climate 13 items Acquisition Process Index: Items that measure satisfaction with various aspects of the acquisition process (e.g., IT, communication) 12 items in July 2014; 10 items in Oct. 2014 Integration Effectiveness Index: 16% 80% 9% 20% 18% 17% 19% 25% 21% 60% 40% 66% 74% 56% 61% 20% 20% 27% 52% 16% 26% 58% 15% 14% 14% 22% 21% 20% 64% 66% 66% 0% Items that measure the current levels of satisfaction with various aspects of the integration process (e.g., integration plan, product/technology roadmap, collaboration) 38 items Change Readiness Index: Items that measure the current levels of individual and organizational change Favorable 12 Neutral Unfavorable Note that Change Readiness Index results are a combination of Microsoft and Nokia employees ratings ** Change Readiness Index with new items included ***Employee Experience Index with consistent items comparable to July 2014 16% 25% 59%

NDS engagement 100% Sample comment: 0% The cultural difference should not be MS engagement is increasing, though some dips in Pulse 65% 72% 81% 76% 40% 20% ENGAGEMENT; 0 underestimated. Lots of things have been improved. ~NokiaS 78% ENGAGEMENT; 0 74% 80% 0.75 66% People in my work group go above and beyond their day-to-day work responsibilities to help Microsoft succeed.; Even if I 0 were offeredifai comparable wanted to provide position open withand similar candid pay feedback and benefits to the at another senior leader company, of my I would group,stay I would at Microsoft.; feel comfortable 0 doing so.; 0 0% M o st d a y s, I a m e x c it e d to c o m e to w o r k to d o m y jo b. P e o p le in m y w o rk g ro up g o ab o ve and b e yo nd the ir d ay- to -d ay w o rk re sp o nsib ilitie s to he lp M ic ro so ft suc c e e d. 94% 82% Wave 1 NDS 75% 65% 0.69 I s p e n d m o st o f m y t im e d o in g w o r k th a t I tr u ly e n jo y. Pulse Microsoft 80% 67% 86%0.66 Wave 2 NDS 0.78 75% 65% Wave 3 Microsoft 91% 87% 78% 0.57 0.68 65% 55% E v e n if I w e r e o ffe r e d a c o m p a r a b le p o sit io n w ith sim ila r p a y a n d b e n e fit s a t a n o t h e r c o m p a n y, I w o u ld st a y a t M ic r o so ft. E ve n if I w e re o ffe re d a c o m p arab le p o sition w ith sim ilar p ay and b e ne fits at ano the r c o m pany, I w o uld stay at M ic ro so ft. 13 Wave 3 NDS I w o uld re c o m m e nd M icro so ft as a g re at p lac e to w o rk. I fe e l p ro ud to w o rk fo r M ic ro so ft. I sp e nd m o st o f m y tim e d o ing w o rk that I truly e njo y. 87% 77% I w o u ld r e c o m m e n d M ic r o s o ft a s a g r e a t p la c e to w o r k. People in my work group Most days, go above I am and excited beyond I spend to come their mostto day-to-day ofwork my time to do doing work my job.; responsibilities work0 that I truly toenjoy.; help Microsoft 0 succeed.; 0 M o st d ays, I am e xcite d to c o m e to w o rk to d o m y jo b. Wave 1 Microsoft I fe e l p r o u d t o w o r k fo r M ic r o s o ft. 60% ENGAGEMENT 80% P e o p le in m y w o r k g r o u p g o a b o v e a n d b e y o n d th e ir d a y - to - d a y w o r k r e s p o n s ib ilitie s t o h e lp M ic r o so ft su c c e e d. is stabilizing EN GAGEM ENT Example: Engagement Over Time: Microsoft and Nokia 64% 55% If I w a n te d to p r o v id e o p e n a n d c a n d id fe e d b a c k to th e s e n io r le a d e r o f m y g r o u p, I w o u ldif Ifeweante l com b le g ns oand. c and id fe e d b ack to the se nio r le ad e r o f m y g ro up, I w o uld fe e l co m fo rtab le d o ing so. d fo to r pt aro viddeo oinpe 66% 65% 0.51 65% 0.55 If I wanted to provide open and candid feedback to the senior leader of my group, I would feel comfortable doing so.; 0% 70%

International World Tour What is the tangible engagement in the office: Are people coming in early and leaving late Is there energy in the break room and lively discussions Is there pride in office location Visited 15 office locations over the course of the a month to get a sense of engagement Held Town Hall meetings at each location to provide clarity and drive engagement. Focus on the New We

Our Cultural Messages The New WE Leadership and Mgmt Excellence Plan for Success, Mitigate Failure Great Partners Pick a Lane and Drive Through the Smoke Power of AND The How is as Important as The What Open, Honest and Transparent Set the Pace Be the Benchmark All In Passion, Commitment, & Dedication Truly Global We only exist to Serve our Partners and Customers Embrace Change Enjoy the Journey, Celebrate

Purpose Work Employees need to know what they are focusing on make an impact Organization exercise to elevate from a series of tasks to aligned, impactful work Each organization prepared a one pager of their purpose: Aggressively Mange Costs vs. Complete Monthly Financials Measured outcome in focus and pace

Summary Deeply understand what in the environment is driving employee engagement Focused leadership on connecting with employees by providing a tangible tool to guide Reinforce, reinforce, reinforce

2016 Microsoft Corporation. All rights reserved.