Chris Gomez Ted Marusarz BEANZ by TK1yo0V0

VIEWS: 3 PAGES: 33

									     Culture & Engagement Synergies -
     Creating a High Performance Workforce


     Chris Gomez – Barrett Values Centre
     Ted Marusarz – Hewitt Associates




  www.valuescentre.com
www.valuescentre.com                         0
      Today’s Topics


Combining Engagement & Culture for Greater Insight
     • What is Engagement?
     • Best Employer Research Collaboration

Examples of Learnings
     • Leadership in Best and Bottom Organisations
     • Segmenting Employees based on Current Culture
     • Bottom Line – Business & Financial Performance




www.valuescentre.com                                    1
      What is Engagement?



  – Emotional and intellectual
    commitment in a group or
    organisation — the extent
    to which an organisation
    has captured the ‘hearts
    and minds’ of its people

  – Centered on helping
    organisations understand
    how to best manage their
    people in order to build and
    sustain strong business
    performance




www.valuescentre.com               2
                                                    Engagement is…about Results

  Higher



                                                                                      Business Results
     Positive Correlation to Business Performance




                                                                                                 The extent to which people will
                                                                             Engagement          act and intervene to improve
                                                                                                 business results




                                                                  Commitment          The extent to which people want to
                                                                                      contribute to business success




                                                        Satisfaction     The extent of people’s approval of
                                                                         their employer
   Lower

                                                                       Hewitt’s Employee Research Over Time

www.valuescentre.com                                                                                                               3
      Engagement Framework
      —What Influences Engagement Behaviors



       Drivers                                                                Engagement
       People                                   Work
           Leadership                               Work Tasks
           Manager                                  Sense of Accomplishment      SAY
           Co-Workers                               Resources
           People Focus                             Work Process
           Customer             Engagement

 Total Rewards                                    Opportunities
                                                       Career Opportunities
    Pay                                                                          STAY
    Benefits                                           Career Aspirations

    Recognition                                        Learning and
                                                       Development
               Company Practices
                  People/ HR Practices
                  Managing Performance       Quality of Life
                  Brand                         Work Life Balance               STRIVE
                  Company Reputation            Corporate
                                                Responsibility
                  Customer Focus
                  Diversity
                                         Employee Perceptions                 Behaviours

www.valuescentre.com                                                                       4
        Global Engage-O-Meter
        – Engagement Drives Business Results

                                                           TSR = 1% Above Average



                                                40%                              65%
                                                           Indifferent Range
                           30%
                                  Serious Range

                                                                            High Performance/
                                                                                                *
                                                                               Hewitt Best
                       Destructive Range                                     Employer Range


             0%                                        Benchmark Averages*                          100%


                                      Global Average (54%)
                                                                     *   Best Employers (79%)




   *Source: Hewitt Associates Employee Research Database



www.valuescentre.com                                                                                       5
  Best Employer Research

www.valuescentre.com       6
      Why did we collaborate in this study?



                       To make the world a better place to work




                       To support leaders in building
                       values-driven organisations



                       What makes a Best Employer organisation?
Research               What impact does that have on the people?
Questions:
                       What impact does that have on the results?


www.valuescentre.com                                                7
         Best Employer Experience


Region                   # Markets        # Participants
Asia-Pacific                13                 2,700
Europe                      18                 1,300
Latin America               19                 1,000
North America                1                 1,000
Total                       51                 6,000


        • Engagement and Best Employers studies
        • 80 markets, 60 industries, and 40+
        languages
        • Represents > 12MM employees globally




  www.valuescentre.com                                     8
      2008 Best Employer Australia New Zealand
      (BEANZ)


                                                  2
                                                       Analysis and
                                                         Judging
                         Employee                       Process—
     CEO
                                         Audit
                        Engagement                     Independent
  Perspective                           Process       Judges, ‘Blind
                         (Employee
     (CEO                                                  data’
                       Opinion Survey
 Questionnaire)
                           [EOS])
                  1
             People Practices                     3
            (People Practices
            Inventory™ [PPI])                         Best Employers
                                                         Announced,
                                                       further analysis
                                                      into what makes
                                                           the Best
                                                      Employers, best



www.valuescentre.com                                                      9
             What the Best Employers Have in Common?



      What Makes a Best Employer?             Outcomes of Being a Best Employer

                  Compelling
                  promise to
                  employees




                  Connection
Leadership          to the         Aligned                               Exceptional
                                               Engaged       Satisfied    business
commitme           company         people
                                              employees     customers    performanc
    nt               and          practices
                   strategy                                                   e




                  Differentiate
                        d                                   Measure
                      high-                                the impact
                  performance                              and refine
                     culture




  www.valuescentre.com                                                           10
      2008 Australia New Zealand Emerging Findings


  Best Employers Build Cultures That Increase Productivity
       –   Create strong alignment between the current culture and the desired culture
           required for success

       –   Hold employees accountable to high standards

       –   Four times more effective at focusing employee energy on productive work

  Best Employers Create Organisation Alignment
       –   Alignment between different organisation layers – from the CEO and others
           in the C-suite to team leaders and all employees

  Best Employers develop talent through effective and committed
    leadership
       –   Invest time in recruiting and developing talent

       –   Manage entire workforce  all employees can see their future career path,
           and are equipped and supported with information and career development
           processes for ongoing learning and grow




www.valuescentre.com                                                                     11
      Success Through Focus On People and Values



                  “Try not to become a man of success but rather
                               become a man of value.”
                                                   ~ Albert Einstein




                                      “Profit” does not appear as
                                      a top current culture focus
                                           in any of the Best
                                                Employers




www.valuescentre.com                                                   12
      Culture & Engagement
      Working Together

www.valuescentre.com         13
      Relationship Between Engagement and Entropy




www.valuescentre.com                                14
                           2008 Engagement and Culture dashboard

                            Employee Engagement:                                62%                                                                                           Culture
                                                               Global Market                                                    Healthy                                                                      Entropy               CTT
                                                                  Sector                                                                                      2007                         10%
                                                                2007 (60%) ABC 2007 (61%)                                       Careful monitoring
                                        40%                           60%            ABC 2008 (62%)                             Requiring attention           2008                 6%
                                                    TSR =                                                                       Crisis situation
                     25%                       3% Below Average                                                                                                      0%       5%        10%       15%      20%       25%          30%
                                                                                                                                High risk of failure
                                                  Indifferent            High                       Hewitt Best                                                      Percentage of culture values selected that potentially limit
                                  Serious                                                           Employers                                                                     productivity and performance
                                   Zone             Zone             Performance/                  2006/07 (79%)
                             TSR =                                      Hewitt
                                                                                                                             Matches
                        18% Below Average                           Best Employer
                                                                                                                             (Alignment)           2008 Personal vs Current                                   2
                    Destructive                                          Zone
                                                                                                                                                   2007 Personal vs Current                  1
                      Zone                                                TSR =
                                                                                                                                                    2008 Current vs Desired                                   2
      0%                                                             24% Above Average                    100%
                                                                                                                                                    2007 Current vs Desired                                                    3
• High Performance Zone—With the majority of employees fully engaged, organisations in this zone are well positioned to
  achieve superior business performance                                                               This is sample data
• Indifferent Zone—With one in two employees engaged, organisations in this zone are likely to achieve only average levels                                      2008 Culture Values                                                CTT
  of business performance                                                                                                                 Current Culture                                            Desired Culture
• Serious and Destructive Zones—With the majority of employees disengaged, organisations in this zone are at risk of well
  below average levels of business performance                                                                                                             …............….. 7. Societal…….…..…....
  *For more details about 'Zones' and 'TSR' (Total Shareholder Return) refer to appendix five
                                                                                                                                                         …….....…... 6. Collaboration……….....….
                                   Engagement Behaviours                                                                                               ….......……..….. 5. Cohesion….......……...…..
                                                                                                                                                       ……..........…... 4. Transformation …..........…...
                                                                                                         Hewitt Best
                                                                                 ABC           ABC       Employers                                      ………....…... 3. Best Practice……..…..…...
                                                                                 2008          2007       2006/07                                          ……...…...2. Relationships……….…..
                   • Given the opportunity, I tell others
                     great things about working here                                                                                                           …....….…..1. Viability……....…...
                                                                                  77%          74%           78%
                   • I would not hesitate to recommend                                                                                    1. employee safety (403) (1)                             1. customer focus (297) (6)
      Say            this                                                                                                                 2. results orientation (344) (3)                         2. accountability (288) (4)
                                                                                  80%          65%           85%
                     organisation to a friend seeking                                                                                     3. customer focus (313) (6)                              3. leadership excellence (262) (6)
                     employment                                                                                                           4. cost reduction (296) (1)                              4. staff engagement (254) (5)
                   • It would take a lot to get me to leave                                                                               5. brand image (287) (3)                                 5. customer satisfaction (249) (2)
                                                                                  81%          81%           73%                          6. community involvement (270) (6)                       6. continuous improvement (241) (4)
                     this organisation
                                                                                                                                          7. shareholder value (266) (1)                           7. balance (home/work) (240) (4)
      Stay
                   • I rarely think about leaving this                            72%          70%           69%                          8. organisational growth (244) (1)                       8. best practice (232) (3)
                     organisation to work somewhere else                                                                                  9. accountability (238) (4)                              9. teamwork (199) (4)
                                                                                                                                          10. achievement (220) (4)                                10. open communication (190) (2)
                   • This organisation inspires me to do
                     my best work every day                                       65%          70%           77%
    Strive         • This organisation motivates me to                                                                       'Underlined words are matches between current and desired culture. The matches indicate alignment.
                     contribute more than is normally                             54%          50%           76%             High performing organisations have high levels of alignment with 6 to 7 word matches between current
                     required to complete my work                                                                                                                    and desired culture.'


         www.valuescentre.com                                                                                                                                                                                                      15
    Leadership in Best &
    Bottom Organisations

www.valuescentre.com       16
                Commonalities Among Top and Bottom Employers

          Personal                     Personal                Desired Culture             Desired Culture
           Values                       Values                     Values                      Values
            Best                        Bottom                      Best                       Bottom
           6%                           6%                              5%                          5%
 7                            7                                7                           7

           7%                           7%                                   13%                          13%
 6                            6                                6                           6

                      27%                          25%                         19%                          18%
 5                            5                                5                           5

                  21%                             22%                              26%                          27%
 4                            4                                4                           4

                 18%                          19%                              20%                          18%
 3     1%                     3    1%                          3    0%                     3    1%


                13%                         12%                          10%                              12%
 2        2%
                              2        2%
                                                               2    0%
                                                                                           2    0%


        5%                           6%                              5%                              5%
 1     1%
                              1    1%
                                                               1    1%
                                                                                           1        2%


     0%         20%     40%       0%         20%         40%       0%        20%     40%       0%         20%     40%

CTS = 40-21-39 CTS = 38-22-40                                  CTS = 37-26-37              CTS = 36-27-37
 Entropy = 4%   Entropy = 4%                                    Entropy = 1%                Entropy = 3%

     www.valuescentre.com                                                                                             17
      So What is Happening?
                   Current Culture                  Current Culture
                       Values                           Values
                        Best                            Bottom
                            5%                               4%
                   7                                7

                                 12%                          8%
                   6                                6

                                   18%                         10%
                   5                                5

                                        24%                          21%
                   4                                4

                                       20%                           19%
                   3        2%
                                                    3             12%


                                 10%                          6%
                   2    1%
                                                    2        3%


                             6%                                10%
                   1        2%
                                                    1         7%


                       0%         20%         40%       0%         20%     40%

                   CTS = 35-24-41                   CTS = 21-21-58
                    Entropy = 5%                    Entropy = 22%

www.valuescentre.com                                                             18
      Potentially Limiting Values

                Best                          Bottom
Value                  Ranking   Value             Ranking
job security           #39       bureaucracy       #3

long hours             #53       hierarchy         #10

control                #62       long hours        #11

bureaucracy            #65       confusion         #12

                                 control           #16

                                 blame             #18



www.valuescentre.com                                         19
      Leadership Entropy




                         Best         Bottom
                       Employers   Organisations
Senior                     2%          18%
Managers
Reporting to               4%          25%
Senior
Managers
Rest of Staff              6%          23%



www.valuescentre.com                               20
             Impact on Engagement of Staff


                                       Engagement by Level in Organisation
                 100



                  90



                  80
    Engagement




                  70



                  60                                                                                        Best
                                                                                                            Bottom
                  50



                  40



                  30



                  20
                         Senior     Report to Sr   Middle Mgmt   Team Leader   Professional   Team Member
                       Management      Mgmt




www.valuescentre.com                                                                                                 21
      Impact on Employee View of Leadership


Positive Perceptions                    Best        Bottom
                                        Employers   Organisations
Leadership                              80%         32%

Manager                                 80%         56%

Helps me understand organisation        79%         46%
goals
Holds employees accountable to set      76%         41%
aggressive goals
Addresses issues of poor performance    73%         44%

Inspires higher levels of performance   72%         41%




www.valuescentre.com                                                22
      Values Jumps



          Value          Best Employers   Bottom Employers

  Employee fulfillment        51%              622%


  Employee recognition        (1)%             298%


  Coaching/mentoring          16%              164%


Leadership development        44%              109%


 Balance (home/work)          3%                70%




www.valuescentre.com                                         23
      What are Best leaders doing?

  Leaders at the best organisations
       – Meet at least four times more often with their
         leadership team
       – Take time to recruit and develop next round of
         leaders
       – Review leadership quality and depth
       – Identify twice the number of high potentials
       – Provide more development for high potentials
         including developmental assignments and special
         project teams.
       – Have a well defined succession planning process
       – Succession planning reaches deeper (to Team Leader)
         into the organisation



www.valuescentre.com                                           24
      Segmenting Employees by
      Current Culture

www.valuescentre.com            25
      Culture Segments


                                   % of responses in each cluster; black =
                                   positive values; red = limiting values
                       Cluster 1      Cluster 2      Cluster 3    Cluster 4
  Sustainability          1              6              2             5
  Collaboration           3              12             7             7
    Cohesion              2              17             8             8
 Transformation           9              26             21            20

  Best Practice        11 / 15         22 / 1         24 / 9        20 / 8

  Relationship           2/9            9/0            8/2           6/3

     Viability         15 / 32          6/1           13 / 5       13 / 12

  Engagement              12             77             48            38

     Entropy              56             2              16            23
Hi-Performance           2%            10%             7%            5%


www.valuescentre.com                                                          26
                       Personal & Desired Values
                                            Cluster 1         Cluster 2        Cluster 3        Cluster 4

                       Personal Values   Achievement      Commitment       Commitment       Commitment
                                         Commitment       Achievement      Balance          Achievement
                                         Accountability   Balance          Achievement      Balance
Green = Identical DV
Blue = CV/DV Match




                                         Honesty          Honesty          Honesty          Accountability
Red = identical PV




                                         Balance          Accountability   Accountability   Honesty
                                         Adaptability     Caring           Efficiency       Adaptability
                                         Efficiency       Enthusiasm       Family           Efficiency
                                         Reliability      Adaptability     Adaptability     Caring


                       Current Values    Bureaucracy      C-Satisfaction   Brand Image      Cost Reduction
                                         Cost Reduction   Brand Image      Profit           Bureaucracy
                                         Confusion        Achievement      C-Satisfaction   Brand Image
                                         Blame            Improvement      Cost Reduction   Profit
                                         Hierarchy        Being the Best   Achievement      C-Satisfaction
                                         Profit           Accountability   Being the Best   Control
                                         Long Hours       Teamwork         Accountability   Accountability
                                         Control          Balance          Long Hours       Goal Orientation
                       Desired Values    Accountability   C-Satisfaction   C-Satisfaction   C-Satisfaction
                                         Recognition      Improvement      C-Improvement    Accountability
                                         Improvement      Accountability   Accountability   C-Improvement
                                         C-Satisfaction   Brand Image      Recognition      Recognition
                                         Balance          Achievement      Brand Image      Balance
                                         Fulfillment      Teamwork         Balance          Coaching
                                         Coaching         Coaching         Coaching         Fulfillment
                                         Teamwork         Recognition      Fulfillment      Teamwork


            www.valuescentre.com                                                                        27
        Current Culture Segments                                 cont’d…



                             Cluster 1               Cluster 2            Cluster 3         Cluster 4

 Positive Perceptions   • Colleagues            • Create cross- dept   •Colleagues      • Colleagues
                        • Customer                teams                •Customer        • Customer
                          relationships         • Learning &           relationships      relationships
                        • Sense of                Development          •Sense of        • Sense of
                          Accomplishment        • Manager support      Accomplishment     Accomplishment


Negative Perceptions    •Rewards &              •Non/slight            • Recognition    • Work
                        Recognition                                    • Performance      Processes
                        •Retaining strong                                assessment     • Create cross-
                        performers                                     • Pay              dept teams
                        •Leaders fill me with                                           • Recognition
                        excitement                                                      • Leaders
                        •Valuing People                                                   demonstrate
                                                                                          org values




www.valuescentre.com                                                                                       28
      Does it really matter?
      Business & Financial
      Impact
www.valuescentre.com           29
                          Impact of Entropy & Engagement
                          on Revenue Growth

                    35                              35
                    30                              30
% Revenue Growth




                    25                    <10 %     25
                    20                    10-19 %   20
                                                                      <40%
                    15                              15                40-64%
                                          20-29 %
                                                                      65% +
                    10                              10
                                          30% +
                      5                             5
                      0                             0
                              Entropy                    Engagement
                                                            Level

                   www.valuescentre.com                                 30
      Engagement + Culture Alignment

     Creates higher revenue that either alone

                              40
                              35
                              30
           % Revenue Growth




                              25
                                                    Engagement +
                              20                    Culture
                                                    Engagement or
                              15                    Culture
                                                    Neither
                              10
                              5
                              0
                                   Engagement &
                                    Culture Level
www.valuescentre.com                                                31
      What’s next?


  1. Increase collaboration
            • Provide multi-dimensional view of organisations
              and interventions
            • Additional white papers
  2. Additional research
            • Tie culture and engagement drivers to understand
              synergies and levers for increasing alignment and
              engagement
            • Understand which programs impact employees
              with different values and view of current
              organisation



www.valuescentre.com                                              32

								
To top