For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou Zhang Mian, Mao Chuanjiang Version Date: 2019-5-30 Product No.: TU0119 Play@Work at Yonyou: A Warm Cultural Empowerment Tool Play@Work is a mobile internet-based tool for managing corporate culture. On April 7, 2018, Cheng Caohong, Founder of the Play@Work Project of Yonyou Network Technology Co Ltd, was invited to present the idea to a class of the Tsinghua SEM MBA Program: “Every year Yonyou’s presidents used to give hongbao to employees through WeChat groups as an incentive to encourage hard-working teams, successful projects, and examples of dedication. However, the motivation of those responsible for distributing the hongbao could be affected by various factors, while genuinely committed employees would not necessarily receive one. We wanted to keep the donors motivated, and make sure worthy employees were recipients. This required a product like Play@Work that could serve as both an emotional and material incentive. Yonyou employees might be dispatched on project implementations to client locations in other areas for as much as two to three weeks without returning home, and would have to stay there, burning the midnight oil, before the system went online. Nobody would be aware of this unless they spoke out; they might even fall sick due to the heavy workload, and they would receive no proper reward for their contribution. Following the introduction of Play@Work, project managers or colleagues could award them honorary medals such as ‘for dedicated work’, which could serve as an incentive to the recipient, make more people aware of their contribution, and give them immediate recognition.” Cheng Caohong’s presentation aroused great interest among the students, who raised some problems that might be encountered during the introduction of Play@Work. The employees were accustomed to a culture of direct appraisal – how difficult would it be to introduce a non-appraisal This case was prepared by Zhang Mian and Mao Chuanjiang of Tsinghua University School of Economics and Management as the basis for class discussion rather than to illustrate either effective or ineffective of an administrative situation. Copyright © Tsinghua University School of Economics and Management. No part of this publication may be duplicated, transmitted or used in any form or by any means without the permission of Tsinghua University School of Economics and Management. This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou tool like Play@Work? What should be the criteria for the award of medals? Would there be cheating behavior of “click farming” – awarding each other medals for flattering? Would it increase the burden on communication? Would it be suitable for older employees? Cheng Caohong gave careful consideration to each of these questions. Creation of Play@Work Cheng Caohong joined China’s leading business cloud service platform, Yonyou Network, on graduating from university in 2004. In 2013 he joined Alibaba, the leader in China’s e-commerce industry, and later returned to Yonyou in 2016. The two companies have very different cultures, and this gave Cheng Caohong a profound understanding of the impact of culture on business development: “A picture and a heart are two things of the greatest importance to an enterprise. The ‘picture’ is the strategy, and the ‘heart’ is the mission. A business must have a clear mission and a unique culture that supports the mission, but typically enterprises lack effective means to implement their culture.” Cheng took the view that service providers and enterprise applications usually focused on solving business management issues. They provided substantial software applications and cloud services to facilitate a company’s business transformation, but there were no products dealing with values and implanting culture. The core positioning of Yonyou Cloud was empowering Chinese enterprises, 1 and cultural empowerment could naturally become an important component of this. Cheng wanted to take organizational culture as the starting point, and help organizations implement their values and manage their culture through gamified fun approaches. Cheng returned to Yonyou in October 2016, and one of his tasks was to build an efficient, safe and intelligent cloud platform. He put together a project team in March 2017 to design a new product for cultural empowerment. The project team identified some tricky issues in building corporate culture: insufficient tools for the implementation of great ideas, less creative cultural activities that consumed excessive human and material resources, difficulties in digital presentation of culture-building results achieved, single basis for promotion, demotivated employees, difficulties in team management, inability to give incentives to the right persons, time and energyconsuming process for customized welfare plans. The project team asked itself: how can we help enterprises manage their culture? How can we be genuinely people-oriented? How can we build organizations that are warm and flat? How can we make employees see their jobs as a game? With these issues in mind and after five months of effort, the project team introduced Play@Work, a culture-focused new organizational product in 1 Yonyou Cloud: a leading business cloud service platform with high customer value formed by Yonyou based on new cloud computing and mobile internet model, which aggregates all customer, application and service resources into a core, and gathered substantial third-party services and other resources to the greatest extent. -2This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou August of the same year. It was based on the latest cloud computing, big data and AI technologies. An open and transparent mobile software designed to help enterprises manage their employees in terms of values, it was integrated into the system of You Space. 2 According to Cheng Caohong’s analysis, “As a business develops, its management needs to deal with all kinds of crises in a complicated, rapidly changing and dynamic environment. But crises in organizational culture tend to be neglected and can cause catastrophic damage. Even though some companies are aware of the importance of organizational culture, they have a limited approach to managing their culture. In terms of traditional human resource management, areas such as Key Performance Indicators, Objectives and Key Results, 3 talent review, promotion, salary adjustment, selection for excellence, candidate interviewing, and employee development all tend to follow top-down management-oriented approaches, which inevitably rely on subjective judgment on the part of managers. Employees lack high-quality interactions, and the organizational structure can be extremely rigid and lacking in agility. It’ is very hard for this kind of record-focused and over-rigid management style to do its intended job in an environment populated by the post-90s generation which advocates freedom and equality. It is precisely this common pain point for culture management that calls for an internet-based tool, and this is why we have introduced the cultural empowerment tool Play@Work”. As the post-90s generation gradually constitutes the main mass of employees, businesses develop a common perception that ‘It’s hard to manage the post-90s’. Cheng Caohong took the view that solving this issue represented both a difficulty and an opportunity for Play@Work. He found that the post-90s had relatively strong self-awareness and were inclined to be independent in personality. They valued equality and respect, did things matching their hobbies, and expected to grow based on their interest. Play@Work used company culture to empower employees and let them work in an ‘warm’ environment, and its approach was of particular interest to post-90s employees. Play@Work integrated performance and cultural ideas into daily interactions between superiors and subordinates or colleagues at the same level, to compensate for the fact that performance measurement and instilling cultural ideas seemed too formal a process to younger employees. The question of how to make work interesting became the top priority in Play@Work’s 2 You Space: the unified application gateway of Yonyou Clould and the social OA platform created for MLEs and organizations, which provides enterprises with OA, communication, collaboration and other core values as well as improves management and work efficiency. 3 Key Performance Indicators: (KPIs) are a set of objective-oriented quantitative management indicators used to measure process performance through setting, sampling, calculation and analysis of key parameters at input and output terminals of organizations’ internal processes, and are the bases of business performance management. Objectives and Key Results (OKRs) are a set of management tools and methods used to identify and track objectives and achievements. -3This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou product design. They focused on how to stimulate employees’ independent judgment, encourage ideas on business, and explore employees’ inner drive. The project team believed that unless these issues were resolved, a company could not guide and manage employees’ values, motivate them, and their growth and that of the business. Content and Functions Positioned to help enterprises manage corporate culture and designed to motivate staff, reduce labor costs, and improve employee efficiency, Play@Work provided integrated online and offline services that focused on managing the culture, inspiring the organization, empowering talent, managing teams, organizing activities, and corporate welfare. According to Cheng Caohong, “We can help personnel inside an organization form shared values and basic underlying assumptions, and gradually develop a uniquely competitive and attractive organizational culture through substantial SBI (Situation – Behavior – Impact) techniques. Play@Work means finishing work in a relaxed atmosphere. It helps to realize a flat, flexible and warm management style by means of real-time, 360° and gamified rewards and punishments. We allow organizational culture to motivate and regulate each member’s actions in a subtle way, and manage the culture through an honorary medal system and establishing emotional connections. During this process, employees can clearly perceive who appreciates them, encourages them and inspires them.” Managing the Culture and Inspiring the Organization Play@Work allowed an enterprise to customize a series of honorary medals system, each of which represented one of their core values. For example, Yonyou created ‘for dedicated work,’ ‘innovation and breakthrough,’ ‘the mission must succeed’ among others (See Exhibit 1). When an employee demonstrated the values of the organizational culture, their superiors and colleagues might award them medals representing these values as a form of real-time motivation and recognition. The medals received were made public within the organization, and everyone was able to see other people’s value-related performance. Managers could use classified rankings of medals awarded based both to stimulate the employees’ sense of honor, and to serve as a reference for personnel appraisal. At the same time, ‘golden beans’ could be distributed along with the medals, which could be used as virtual money to purchase benefits and real gifts of business partners in a points mall. For instance, employees could purchase a cup of coffee from a machine in the company lobby, or enjoy a workout massage chair by using golden beans. If employees worked overtime, their superior could use golden beans to send them home in a personal limousine. If employees worked overtime for several days in a row and their superior awarded them several ‘for dedicated work’ medals, this would be apparent to the HR Department in real-time in the system, and time off in lieu could be arranged accordingly. In addition to positive honors, the system could also be used to highlight shortcomings and encourage corrective action. The system also offered the -4This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou function of organizational culture circle, which allowed employees to share their posts. Talent Empowerment With data collected over a certain period (such as a year), the value-related performance of an employee could be evaluated in a clear, quantitative way. Play@Work could construct an objective employee work profile based on honors acquired, which could be used by the company for precise job-oriented training, skills development and exhibition of cultural achievements. Play@Work also provided for ‘cultural ranks,’ and employees in possession of the appropriate number of medals might apply for a rank appraisal. Yonyou established nine cultural ranks – corporal, sergeant, staff sergeant, second lieutenant, lieutenant, captain, major general, lieutenant general and general. As employees moved through the ranks they would be eligible for benefits such as project resources, working-time autonomy, and innovation incubation support. Employees in the higher ranks were given priority in accessing the company’s innovation and entrepreneurship projects, and were allowed to hold roadshows and recruit other employees from inside the company to their teams. If they developed promising new products, the company would establish new business divisions or subsidiaries, and the employees initiating those projects would be eligible for promotions in the new units. Employees in the higher cultural ranks had the autonomy of arranging their work time. Yonyou referred to the 15% - 20% of working hours allocated working-time autonomy as ‘closed-door periods.’ When employees in the higher cultural ranks tagged themselves as in a ‘closed-door period’ in the system, their superiors and colleagues would not interrupt them other than in exceptional circumstances. Levels based on employees’ daily data reflected the quality of an employee’s work and their commitment to the company’s values, and this could be used as a basis for talent review, comprehensive appraisal and promotion. The Business Division of Yonyou Cloud Platform had a wall display of cultural models with the names and photos of outstanding employees. The category and number of medals obtained by each employee of the Business Division were visible in the Play@Work system in a transparent manner and in real-time. It was no longer necessary for Yonyou to assign specific human and material resources to comprehensive appraisal, as the system had already recorded employees’ daily data, and the role model would be there naturally. Other Functions Play@Work supported team management and provided team behavior records in Play@Work groups, which could help managers manage individual members of the group. The manager could set phased group objectives or project objectives for thorough implementation of KPIs, update and display project progress and results in real-time, and issue real-time commendations and incentives. The group would get an honor ranking list that reflected others’ recognition of each individual’s contribution and represented each person’s achievement of medals in digital form. Various auxiliary tools could meet the group’s needs in areas such as working, learning, and recreation. -5This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou Play@Work provided ‘learning’ (study), ‘guessing’ (riddles), ‘ride’ (free ride), ‘meeting invitation’ and other daily training tools. Play@Work also offered a lottery, giving out golden beans, and other daily activity tools applicable to business activities, year-end parties, and team building. Play@Work provided various welfare and other benefits which could be used for building the social side of the company (birthday activities, employee care and club activities), business activities (annual meetings, product release conferences, marketing campaigns and summer camps), and departmental rewards (outward bound activities, trips and gatherings). Yonyou set up agreements with JD, NetEase Yanxuan, Ubox and other e-commerce platforms, and more than a hundred global suppliers, selecting over ten thousand items as employee welfare and benefits, covering physical devices, lifestyle services, e-commerce products and others. Design Ideas In Cheng Caohong’s opinion, Play@Work was neither an appraisal tool (KPI) nor management by objects tool (OKR), but a communication tool using company values as the core. It took design ideas from the following: The first idea was cultural empowerment. Play@Work applied cultural empowerment to encourage the completion of tasks and improvement of quality. The basic concept was that a medal was equivalent to a cultural credit score, which was not directly related to salary, bonus or promotion. Instead of offering all employees job autonomy, Play@Work adopted a selective empowerment mechanism. The more self-motivated an employee was, the higher their cultural credit score and their cultural rank, which would give them more job autonomy. The second idea involved timely recognition and feedback. Positive cooperation would earn recognition and feedback, which could be recorded in real-time. The third idea involved the use of big data. Play@Work could reflect the individual characteristics of each employee when it accumulated enough data. Each individual would earn different medals and attain different scores and ranks, portraying them as individuals. When an employee obtained a significant number of medals and beans and received substantial feedback, their strengths and value-orientation could be assessed through the data. Application Scenarios Play@Work could address some common pain points. Team Incentive Teams need mutual encouragement to go all out for objectives. There is often a lack of highquality communication, and younger team members need new working methods. Yang Jiabo, the Executive Chef of Waterside Resort, underwent training on Play@Work in -6This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou August 2017. He was convinced that after a month of use, Play@Work could really help him with his kitchen team of over 30 people. He turned job and dish requirements into Play@Work targets, and created honorary medals for those meeting the requirements. Those who failed to meet the requirements would be criticized with constructive comments. Yang believed the gamified process would give him an effective and flexible tool to manage his team of young chefs, and bring him closer to his younger employees. Professional Training Organizing good-quality training is hard and very costly. Many instructors struggle to engage with trainees, and trainees are often passive about training and have a low engagement. Ye Jiaming, an expert from Business Division of Yonyou Cloud Platform, delivered a training session on the topic of service quality in September 2017. During the session, he captured the interest of the trainees and created a positive atmosphere by awarding the attendees with honorary medals and golden beans for registering by code-scanning, answering each other’s questions, trying actively to learn, and guessing the answers to riddles. In response, a number of trainees awarded medals to the instructor on completion of the training session. Moreover, impressed by the reaction of the attendees, some employees actively requested to attend the next training session, and asked the organizer to share training videos. Project Operation Communication is a cumbersome process for project teams. There are often no mechanisms for synchronization of different parties’ progress, and employees who work in other areas receive less attention. A seminar on the overall framework of Yonyou Cloud Platform was held in September 2017. The seminar stimulated the attendees’ enthusiasm for project communication by issuing medals and golden beans to team members who registered by code-scanning, played an active part in discussion, were interactive and preemptive in answering questions, learned well, and guessed the answers to riddles. After the seminar, many project team members commented on this new approach and how effective it had been in arousing their interest. The good ideas discussed in the seminar were recorded in memo of a project group and guided later implementation. The synchronization of project progress was realized by the Play@Work as a channel for subsequent project communications. As the person in charge of the project, the project manager gave real-time incentives to project team members based on their contributions, and those working in other areas received the same attention. Marketing At major marketing events, there is often no unified communication channel for attendees on arrival. Interaction on site is often poor, and there is no structured mechanism for retaining potential -7This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou customers. The 2017 Internet Conference was held in Wuzhen in August 2017. Yonyou gathered more than 300 customers to a sub-forum through Play@Work during the afternoon. All interactions during this sub-forum were conducted via Play@Work, which created a warm atmosphere that impressed the customers. Play@Work groups established at the site became channels for potential customer mining and created opportunities for product promotion. Innovation Incubation Rewards for innovation are often given retrospectively. There are limited numbers of disruptive innovations. Most innovations result from routine work plans, and there is a lack of incubation mechanisms that can make great ideas thrive. Yonyou 2017 Product and Technological Innovation Competition adopted a brand new appraisal model, employed Play@Work as a mechanism, and was more effective in making breakthroughs than other similar competitions. These included: a transition from post-facto motivation to ex-ante motivation plus in-process incubation; adoption of a rapid iteration and multiround clearance mechanism for recognizing innovative talent; the provision of comprehensive funding support, platform support, product integration, and mentors for outstanding projects. Employee Care In its daily work, Yonyou provided real-time psychological and material incentives by rewarding specific actions with honorary medals, offering employees working overtime and late into the night with benefits such as limousine taxis services, and providing free trips for the whole family of employees. High-potential employees were incentivized with internal job rotation opportunities. As for creative elites, Yonyou empowered them to mobilize resources of the company. Application Feedback Play@Work was applied throughout Yonyou; it redefined many working practices and yielded good results. According to Ju Xiaoyan, COO of Play@Work, “In 2017 we promoted the use of Play@Work in our company. Medals and golden beans were first introduced to the employees during the music festival in April, where we chose some people to give medals to colleagues who had done a good job. We had been looking for opportunities promoting Play@Work such as attending as many activities as possible, and helping others in integrating honors into their activities, which gradually helped them learn how to use such honors. After 2018 we focused less on internal promotion since everyone had become accustomed to thinking about using Play@Work in their work. For instance, if an employee’s innovative idea was -8This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou recognized by others, he or she would be naturally given a medal as a reward.” Zhu Junbin from Overall Design Department of Yonyou Cloud said that “The honor system is the core of Play@Work, and its best feature is that it measures top-down, bottom-up and parallel recognition in a human way. I used to be in charge of the technical training of Yonyou. I found the classroom atmosphere tedious because the training was monotonous and trainees had little interest in interacting with their instructors. When we introduced Play@Work, classes became much more interactive. Trainees’ group was established first, and cases could be sent to the group with corresponding ‘honorary’ medal system, which included medals for the most active participant in the class, the trainee with the highest score, and a star for sharing. There was also an honor ranking list which was used as the basis for recognizing excellent trainees on graduation. Trainees also included advisors of subsidiaries, partners and clients. The records in Play@Work during training sessions would be considered as criteria for their future sharing of benefits with Yonyou or undertaking of Yonyou’s projects. Excellent records mean greater possibilities of contracting with Yonyou, a better discount from Yonyou, and a better profit-sharing policy.” Yang Chenchen, a new employee, said “My boss awarded me the medal of ‘courage to act’ during my internship, which gave me a strong sense of belonging. During the formal induction of new employees, others gave us gold beans as welcome gifts. I finished revising the official website the other day, and the department manager gave me the medal of ‘focus on detail.’ He said it was recognition that I had taken my job seriously and completed it on time, even though my home was a long distance from the company. I had earned it by my hard work, as he knew the situation and the contribution of every employee. Colleagues would give honorary medals to each other, and I would give others honorary medals and golden beans for answering my questions.” According to Xie Zhengnan who worked as the Manager of Quality Testing in Yonyou for many years, “It’s very common to award medals and golden beans via Play@Work in our team. Giving employees cash in recognition of their behavior is inappropriate, but awarding honors is different – it’s much more motivating. Awarding honors reflects people’s trust, and formally recording this trust turns into a management style. There are lots of advantages. For instance, golden beans could be used to buy massage chair time or coffee – people could relax and communicate while recovering from the stress of their daily routine.” -9This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou Cheng Caohong believed that Play@Work had transformed human resource management. He emphasized: “Current technologies could realize complete connections between people and people, people and machine, and people and external partners. We have made many products, which give us a deep feeling of the trend of people connection. However, there is a lack of the soft power of culture management implementation, which could facilitate people to reach consensus and share results. We expect Play@Work to be used by more organizations and individuals, and to penetrate areas such as smart working, team empowerment, the Play@Work idea of warm working, and the peofessional work in Yonyou. We hope Play@Work ideas will run through the whole process of business social interaction and collaboration, and truly lead professional work, which is the goal we strive for.” Challenges and Thoughts Cheng Caohong saw Play@Work as an innovative approach to managing company culture. Play@Work accumulated substantial experiences during the design and promotion process. It created formed products, and had professional operation teams and strategic partners that provided consulting and support services. However, since it was a new and innovative product, it needed more testing in practice, to achieve continuous improvement and optimization based on user feedback. Students responded to Cheng Caohong’s presentation on Play@Work with many questions. Some typical ones were: (1) The employees are accustomed to a culture of task performance appraisal – how difficult will it be to introduce a non-appraisal tool like Play@Work? (2) What should be the criteria for the award of medals? (3) Would employees engage in ‘click farming’? How could you prevent employees from simply awarding each other medals for flattering? (4) Would the product increase the communication burden? For instance, our company has prohibited the use of mobile phones during working hours to prevent interruptions. Should we prescribe the time for using Play@Work? (5) It might be easy for our company’s younger employees to adapt to this approach, but older employees might find it hard to accept such a gamified and seemingly informal approach. Would Play@Work suit older staff? After responding to these questions, Cheng Caohong asked the students another question: Would you introduce and promote Play@Work in your company or team as a manager? - 10 This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022. For the exclusive use of F. Amoah, 2022. Play@Work at Yonyou Exhibit 1: Yonyou’s ‘Honorary’ Medals The honorary medals of Yonyou’s culture were as follows: Attitude: for dedicated work, strong support, early bird Innovation: embrace change, top innovation, innovation and breakthrough Integrity: immediate response, dare to tell the truth, transpositional consideration Service: Open Sharers, customer delight, efficient service Execution: the mission must succeed, map out a strategy, total devotion Result: contract signing expert, breakthrough in performance, solution expert Professionalism: courage to act, keep improving, the expert Source: Yonyou Network Technology Co., Ltd. - 11 This document is authorized for use only by Fionna Amoah in Schutte551 taught by Kelli Schutte, University of Illinois - Springfield from Apr 2022 to Sep 2022.