The New role of HR leaders in Energy Industry Human Resources Thought Leadership Series Zinnov November 2009 This report is solely for the use of Zinnov client s, Zinnov prospects and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Zinnov The automotive industry today has incurred steep losses and this has been preceded by several years of loss of goodwill Big auto companies face critical challenges due to .. 6 2005 2008 2005 ... loss of goodwill among their external stakeholders 2008 External Stakeholders Goodwill 5 4 3 Suppliers Customers Have a higher impact 2 1 Government Community Owners Shareholders Operating Profit 0 0 -5 Managers -10 -15 -20 Internal Stakeholders -25 in $ millions This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov Source: Annual reports, Google Finance, Zinnov Analysis Employees Energy industry should think leap years ahead to connect, build and preserve goodwill among multiple community circles using Social Networking Technologies Economic downturn coupled with increasing misconception Local Communities II Students Unemployed I Community Members Energy Companies Disabled People Retired people Working Mothers Social Networking Technologies Leveraging Social Networking Local Community Centers Benefits III Changed Brand Perception I Energy companies can engage multiple local communities Source: Zinnov II Creating social networking groups in local communities III Leading to community development report is solely for the use of Zinnov client and Zinnov personnel. and This creating jobs No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov Knowledge Sharing Enables Community Development Drives Profits Companies have a unique opportunity here to connect to communities in a radically different manner through innovative ideas – example gas stations as knowledge sharing hubs… Transforming Communities Through Knowledge Sharing Hubs Initiative Energy companies such as Shell can use their local presence to engage surrounding communities at ground level Advantages Enhancing scalability of the model, providing insights about the energy industry, increasing public confidence Using local gas stations to engage communities Using network of local gas stations as knowledge hubs Educating local communities through workshops such as – “The Benefits of Renewable Energy” 3 Engagement 2 a 1 b Retail Shops Energy Companies HR professionals to lead initiatives Changing Perception Benefits Source: Zinnov Adding Value to Shell and community 4 Driving Sales This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov Providing consulting optimization view of energy sector HR leaders in energy companies should play a pivotal role in redefining benefits in this new economy Impact on Society New Role of HR Leaders Increase Social Networking Capabilities Enhanced Diversity Multiple Layers of Benefits Building Block 4 Building Block 3 Building Block 2 Direct and Clear Communication Drive Corporate Social Responsibility Initiatives Building Block 1 This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov Source: Zinnov • Will actively bring younger people together • Faster and wider reach at lower cost • Balances gender/ethnic diversity in workforce • Ability to hire disabled people 4 3 • Increases transparency and brings corporate accountability 2 • Cleaner and safer environment • Enhances rural community development 1 Thank You ! @zinnov Zinnov Contact www.zinnov.com info@zinnov.com 69 "Prathiba Complex", 4th 'A' Cross, Koramangala Ind. Layout, 5th Block, Koramangala Bangalore – 560095 575 N. Pastoria Ave Suite J Sunnyvale CA – 94085 21, Waterway Ave, Suite 300 The Woodlands TX – 77380 Phone: +91-80-41127925/6 Phone: +1-408-716-8432 Phone: +1-281-362-2773