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Employee Engagement Conference
                                                                    Symposium Events
                                                                  London UK April 2013




    Employee Engagement
      in Organisations:
    The first        days for ambitious HR
                     functions
                                                           ‘Think
Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI      HR.
CEO, VaLUENTiS Ltd & Dean, International                    Think
School of Human Capital Management (‘ISHCM’)
                                                           Human
                                                          Capital.’
                                                            Tour
                                                           2013
Video version available through WTG on-demand service.

All rights reserved. No part of this presentation may be reproduced, translated, stored in a
retrieval system or transmitted in any form or by any means, electronic, mechanical,
photocopying, microfilming recording or otherwise without the express permission of the
author.

Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction/
organisational distribution.

© 2013
‘Celebrating ten years
      2003-13’
‘A selection of previous relevant presentations…’
Part I
Baselines…




             5
1. Which famous experiments took place
    at Western Electric Co in the 20th
              Century…?
Hawthorne Experiments (1924-1933)
                                                  Illumination Studies (1924-27)
                                                  • Inter-relationship of social and physical factors in
                                                    determining productivity
                                                  • Unintended consequences on artefacts of experimental
                                                    setting


                                                                                               Relay Assembly Test Room (1927-32)
                                                                                               •   Impact of supervision on worker behaviour
                                                                                               •   Employee participation
                                                                                               •   Development of group cohesiveness
                                                                                               •   Matching worker expectations and job characteristics
     Second relay assembly (1928)                                                              •   Worker sentiments and values
     •   Different wage incentives cannot account                                              •   Spill-over of non-work experiences into work life
         for all of test room productivity increases                                           •   Informal leadership
                                                                                               •   Worker attitudes and productivity
                                                                                               •   Multidimensional view of work motivation

         MICA Splitting Test Room (1929)
         •   Autonomous work groups
         •   Limits to wage incentive

                                                                                                                Bank Wiring Observation
             Interview Programme (1928-30)                                                                      Room (1931-32)
             •   Employee feedback                                                                              •   Informal system
             •   Non-directive counselling                                                                      •   Group social strata
             •   Status distinction and interpersonal perception                                                •   Anti-management group norms
             •   Supervisor training                                                                            •   Coercive impact of group norms
                                                                                                                •   Physical proximity and attitudes

Source: Adapted from Shedding Light on the Hawthorne Studies, Sonnenfeld J.A. 1985
Photographs: Harvard Baker Library
2. Which US company is most associated
   with employee surveys and causal
   studies linking to performance …?
A look back at The original Sears E-C-P Chain…
(an early forerunner of ‘employee engagement’ with causal performance link)


                                                                                            A compelling
     A compelling place to work            A compelling place to shop
                                                                                           place to invest

                                                                        Customer
 Attitude                               Service                     recommendations
about the
                                      Helpfulness
   job
                                                                                             Return on assets
                          Employee                                       Customer
                                                                                             Operating margin
                          Behavior                                      Impression
                                                                                             Revenue growth
 Attitude                             Merchandise
about the
                                         Value
company
                          Employee                                      Customer
                          retention                                     retention

        5 unit increase                              13 unit increase
                                                                                             0.5% increase in
         in employee                                   in customer
                                                                                             revenue growth
           attitude                                     impression


                                                 The Employee-Customer-Profit chain at Sears
                                                 By Anthony J. Rucci , Stephen P. Kirn and Richard T. Quinn
                                                 Harvard Business Review Jan-Feb 1998
3. Which author, with an article
published in 1990, is attributed as being
  the first to use the term ‘employee
             engagement’…?
Psychological Conditions of Personal
Engagement and Disengagement at Work
William A. Kahn
Academy of Management Journal 1990




“Personal Engagement is the simultaneous employment and
expression of a person’s ‘preferred self’ in task behaviors that
promote connections to work and to others, personal presence
(physical, cognitive and emotional), and active, full role
performance.”




                                                                   11
poorly
communicated
reorganisation                       perceived
                    short-staffed reward inequity
                                                                       interpersonal
                                                         planned       conflict
                                                          training
                                                        cancelled

                                                                uncaring new            incentive
                                                                    boss               misalignment

enlarged   Well-received
role       performance
           appraisal       hit personal
                           targets/        hit team
                           objectives      targets/
                                           objectives

 “A further, more up to                                       salary                              enrolled on MD
 date interpretation…”                                     increase                               programme



Employee engagement as a sum of constant work
‘forces’ (VaLUENTIS EESoF model) illustrative vectors
4. What is ‘acknowledged’ as the single
    biggest factor in an individual’s
        engagement at work…?
Illustrating the management influence using VaLUENTiS
           5D Employee Engagement Framework

                            Line-of-Sight                              Work Environment

              Objectives awareness                                                 Cultural elements
              Behaviour alignment                                                    Team dynamics
              Role ‘fit’                                                             Communication
              Performance management          Organisation operating                      Resources
                                                     culture
              Feedback                                                            Local management
              Capability                                                        Physical environment
                                                Organisation design
                                                Performance/talent
                                                   management
              Remuneration equity             ‘Corporate’ Leadership             Career progression
                                                  Communication
              Bonus/incentives                    Decision rights                     Competencies
              Benefits                              Work values                 Succession planning
                                                       Trust
              Role equity                                                      Job/ Role architecture
              Recognition                                                         Training/ Learning
              Promotional aspects                                               Coaching/ Mentoring

                            Reward (equity)                              Development



              © VaLUENTiS Ltd 2002-13


 A manager has influence in many areas of engagement, some more than others…
The concept of Employee Engagement:
      A synthesis of antecedent theories and empirical evidence with human capital
    management practice related to organisation performance – 100 years in the making

                                     •Leadership theory             •Decision-making theory
                        •Organisational ‘fit’ theory                       •Conflict theory                                           •Organisation performance &
                                                                                                                                        measurement*
                    •Commitment theory                                           •Trust theory
                                                                                                                                          •High performance work systems
    •Goal setting and task theory                                •Teams theory                 •Group theory                               Human Capital Management practice/systems:
         •Expectancy theory                                                                                                                   •Talent management
 •Equity (justice) theory                                                                                                                        •Performance management
  •Motivation theory                                                                                                                                  •Reward & recognition
    •Job satisfaction                                                                                                                                   •Employer brand
                                        Individual                    Immediate                       Wider                Organisation                    •Human capital retention
      •Needs theory
                                                                          Team                        Group                                             •Resourcing & selection
         •Trait theory
      •Social cognitive/                                                                                                                              •Training & Development
      self efficacy theory                                                                                                                        •Workforce diversity
  •Psychological contract                                                                                                                      •Leadership
        •Organisation Citizenship Behaviour                                                                                                 •Organisation design
                                                                   •Taylor - Scientific management
               •Emotional Intelligence                                                                                                    •Organisation communication
                                                                           •Munsterberg - Industrial psychology
                      •Behaviourism                                                                                                    •Organisation culture
                                                                                  •Fayol - Principles of management
                                •Cognitive dissonance
                                                                                          •Follett - Management relations/integration
                                           •Learning theory
                                                                                                      •Mayo/Hawthorne studies
                                                       •Wellbeing/Burnout
                                                                                                            •Lewin (MIT) - group dynamics/behaviour
                                                               •Other I/O psychology
                                                                                                                  •Likert – Management system/measurement scale
                                                                contributions
                                                                                                                        •Tavistock – Socio-technical systems
                                                                                                                              •McGregor Theory X/Y
                                                                                                                                     •Hertzberg – Two factor theory
                                                                                                                                             •Drucker – Practice of management
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                                                    •Kahn – Personal engagement
VaLUENTiS 5D Employee Engagement:
Core empirical theories that combine to form the root structure of the VaLUENTiS model

                                     •Leadership theory             •Decision-making theory
                        •Organisational ‘fit’ theory                       •Conflict theory                                           •Organisation performance &
                                                                                                                                        measurement*
                    •Commitment theory                                           •Trust theory
                                                                                                                                          •High performance work systems
    •Goal setting and task theory                                •Teams theory                 •Group theory                               Human Capital Management practice/systems:
         •Expectancy theory                                                                                                                   •Talent management
 •Equity (justice) theory                                                                                                                        •Performance management
  •Motivation theory                                                                                                                                  •Reward & recognition
    •Job satisfaction                                                                                                                                   •Employer brand
                                        Individual                    Immediate                       Wider                Organisation                    •Human capital retention
      •Needs theory
                                                                          Team                        Group                                             •Resourcing & selection
         •Trait theory
      •Social cognitive/                                                                                                                              •Training & Development
      self efficacy theory                                                                                                                        •Workforce diversity
  •Psychological contract                                                                                                                      •Leadership
        •Organisation Citizenship Behaviour                                                                                                 •Organisation design
                                                                   •Taylor - Scientific management
               •Emotional Intelligence                                                                                                    •Organisation communication
                                                                           •Munsterberg - Industrial psychology
                      •Behaviourism                                                                                                    •Organisation culture
                                                                                  •Fayol - Principles of management
                                •Cognitive dissonance
                                                                                          •Follett - Management relations/integration
                                           •Learning theory
                                                                                                      •Mayo/Hawthorne studies
                                                       •Wellbeing/Burnout
                                                                                                            •Lewin (MIT) - group dynamics/behaviour
                                                               •Other I/O psychology
                                                                                                                  •Likert – Management system/measurement scale
                                                                contributions
                                                                                                                        •Tavistock – Socio-technical systems
                                                                                                                              •McGregor Theory X/Y

“But all the others have a part to play…”                                                                                            •Hertzberg – Two factor theory
                                                                                                                                             •Drucker – Practice of management
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                                                    •Kahn – Personal engagement
5. What is the connection between job
 satisfaction and job performance…?
6. Complete this ‘well-known phrase’:
  “If employee engagement was the
    answer, …………………………......?”
Observation 101

Absenteeism, turnover, ill-discipline, manager
resistance, communication and/or trust issues
etc are all, to a great degree, manifestations
of poor employee engagement in some
form.

“Many case studies and indeed academic comment, however,
seem to ignore this fact. Thus, we’re seemingly praising ourselves
for putting a fire out – the very one we started as an
organisation! What happened to the ‘Why’ in the first instance?

As an industry practitioner question - What’s going on here?”

                                                                     19
Part II
The first 100 days…




                      20
Back to the ‘Six Pillars’…

              1. Grounded understanding of Employee Engagement


              2. Working definition of Employee Engagement

              3. Measurement wisdom

              4. Actioning infrastructure

EE PLAYBOOK
              5. Dynamic EE-Performance ‘playbook’


DELETE
              6. Competent leadership/management
Organisations and employee engagement:
The ‘4-ball’ practice model   ‘We don’t...’

                                   ‘It’s all about PR…’                Play down

                                                          Play act
             ‘At least we audit/
             benchmark...’
                                   Play safe

    ‘We do it…’
                  Play make
                                                          The four progressive states
                                                           of employee engagement
                                                                   embeddedness in
                                                                       organisations
The ‘4-ball’ Employee Engagement reality matrix
Pillar                            ‘PLAY DOWN’                        ‘PLAY ACT’                     ‘PLAY SAFE’                   ‘PLAY MAKE’

         Grounded
  I
                                                                                                    Exists in pockets with       Good working knowledge
         understanding of                                                 Limited.
                                            Little.                                                    variation in line            embedded across
         employee engagement                                     Mostly ephemeral in nature.
                                                                                                        management.                   organisation.

                                                                                                    Maybe borrowed with
 II      Working definition of                                      Most likely borrowed                                         Distributed ‘ownership’,
                                                                                                  internalisation or adapted
         employee engagement         No definition in use.       without any real ownership,                                    whether borrowed, adapted
                                                                                                  after some organisational
                                                                     or ‘false’ ownership.                                              or created.
                                                                                                             focus.
                                                                    Probably undertaking         Will do measurement basics,       People management
III
                                   Limited to absenteeism
         Measurement wisdom                                       surveys but with no valid          even to the extent of       evaluation/measurement
                                  metrics, employee surveys
                                                                 construct; response rate/PR       engagement index etc.        seen as ‘core’ on a par with
                                 seen as event driven if done.
                                                                         main focus.                Tick box is main focus.         CRM , finance etc.
                                                                 Probably in the form of basic      Will have a number of       Will have necessary ‘toolkit’
IV
                                 Probably in the form of basic
         Actioning                                                management courses. Most       actioning elements in place       to hand with ongoing
                                    training/management
         Infrastructure                                          likely carry out some form of    but not necessarily joined         programmes to suit
                                           courses.
                                                                     branded programme.                      up.                     organisation focus.
                                                                     May have something            Playbook in the form of       Easy access in different e-
 V       EE-Performance
         Playbook
                                        Does not exist.
                                                                  articulated on ‘strategies’.
                                                                   Most likely collection of
                                                                                                 ‘manager manual’ or on-line
                                                                                                 knowledge-share. Still being
                                                                                                                                    /physical formats at
                                                                                                                                  different levels. Signals
                                                                   irrelevant case studies.              developed.                 ‘embedded’ intent.
                                   Will have varied mix of         Will have varied mix of          Will have varied mix of        Cohort of well-trained
VI       Competent leadership/
         management
                                  skilled people managers.
                                  Existing good performers
                                                                  skilled people managers.
                                                                  Existing good performers
                                                                                                 skilled people managers but
                                                                                                 level of competency higher
                                                                                                                                people managers exists with
                                                                                                                                    talent pools. Regular
                                     more through luck.              more through luck.          than Play-Act organisations.    evaluation/reinforcement.
Human capital management practice and
employee engagement contributing to improved
  organisational performance (‘POP’ system)

    More effective
    human capital
     management




                                       Higher
                       Higher
                                    organisation
                     productivity
                                    performance



       Higher
      employee
     engagement
VaLUENTiS Management Pathfinder®:
Client example (extended version)
                                                         LEARNING &
                                                                         DIVERSITY
                                                        DEVELOPMENT
                                         TALENT                                            EMPLOYEE
                                    MANAGEMENT
                                                                         813               CENTRICITY



                                                                                                        EMPLOYER
                            REWARD                                                                      BRAND
                                                                                674
                                                           599 416
                                               657
                                                                                615
                                                                                                           HR
                       RETENTION                                                                           GOVERNANCE
                                     742                                             431

                                                     684                             487
                                                                                                               HR
                       RESOURCING
                                                                               642
                                                                                                           OPERATIONAL
                                                  603        594                                           EXCELLENCE
                                                                         628
  ‘Out-performing’
  (world class)
  ‘Out-performing’          PERFORMANCE                                                          LEADERSHIP
  (peer)                     ORIENTATION
  ‘Comparable’
                                                                   796
  (peer)
                                           ORGANISATION                              ORGANISATION
  ‘Under-performing’                       DESIGN                                        CLIMATE
  (peer)                                                      ORGANISATION
                                                            COMMUNICATIONS
Employee Engagement - Actioning Infrastructure


                             1
           4




                                  2

               3
Actioning Employee Engagement Infrastructure
(Purpose: ‘to embed’)
                                                                 ‘Live’ Employee
                                                                 Engagement
                                                                 adapted QFD
                           Defined ‘how to’                      (‘House of
                           strategies around                     Quality’)
                                                                                                     People Manager
                           engagement
                                                                                                          evaluation/
                           elements
                                                                                                            appraisal
                                                                   Supportive top                             (regular
                                                                   leadership and                     ‘practice runs’)
                          Organisation
Links into wider          event logs
organisation                                                       ‘signalling’…
intelligence                                                                                                         EE related
analytics                                                                                                         development/
                                               Multi-survey                                                             learning
                                               mapping and                                                         programmes
                                                                                                                   & workshops
                   ‘Interactive’ people          planning
                   management evaluation          overlay
                   process
                   map
                                                                 Nominated                  Wider
                                                            People Manager         communications/
                                                            Engagement line              branding
                                                                 champions
                                              Dedicated
                                  internal focus team or
                                   nominated ‘on-point’
                                                  person
                                                                           “Spinning plates cogs…”
Performance/                             Management
productivity/                             education,
engagement                              assessment &
‘holes’                                 reinforcement
                           Employee
                            survey                          ‘Game
           People
                        information &                     management’
            data
                             other
         availability
                          evaluations   Management
          & quality
                                         ‘positional
                                          mapping’




                                                        Boiling it down…
Performance/ productivity/engagement
              ‘holes’…
Organisation Performance
(as defined by organisation/unit scorecard measures and derivative metrics)




Examples of organisation performance areas:


 Sales              Service                   Patient
                    delivery                                          Operational          Organisation
         Revenue                Customer       care                      risk
                               satisfaction             Procurement               Product    support             Quality
                                                                                development             Safety
                                                                                                                           Cost…
‘P12 modes of productivity’
                                                                         More likely to
                           More likely to          More likely to        produce higher
                          achieve goals set        embrace set          grade/quality of
                                                     values             work (less errors)

  More likely to be      More likely to give
     flexible to         discretionary effort    More likely to ‘own’    More inclined to       More inclined to
organisation needs (if   above contractual       their development       input into ideas/      share knowledge
     equitable)              obligations                                    innovation


                                                                        Less likely to suffer
                         Less inclined to take   Less likely to move            stress
                                days off              employer          (but more likely to
                                                                         suffer burn-out)




     Applied across all job roles in the context of the role
  specificity and environment which impact on individual and
                     collective performance
Impaired Employee Engagement:
Impact on individual and team productivity/performance


Sub-optimal performance,
i.e. less than achievable

Or
Sub-optimal costs,
i.e. higher than necessary



Or
Both
                                                         32
People data availability & quality…
Employee Engagement triangulation
           “Squaring the circle…”
                             New (re)hire data

        Customer/client/                         Performance
        patient/citizen                          appraisal data
        data



   Social media
   data                                                  Employee/management
                                                         survey data




Critical                                                    Case data
incident data




           Organisation                           Other internal
           event log data                         survey/assessment
                                                  data

                            Exit data
“To this - The Engagement-Performance Matrix”



                                                         Performance area
New (re)hire data

Performance
appraisal data

Employee/manage
                           “There is
ment survey data          much that
Case data                organisations
                          can do for
Other internal survey/
assessment data          themselves”
Exit data

Organisation event                       ‘Hawthorne’
log data
                                          for the 21st
Critical incident
data
                                            Century
                                         organisation”
Social media data

Customer/client/
patient/citizen data
Employee survey information & other
           evaluations…
The employee survey expertise model
HIGH
HCM subject matter expertise




                                        Myopic                                   20/20 Foresight
                                            Result:                               Result: organisation has
                                   misleading or erroneous                       sufficient in-depth, robust
                                        interpretation                             knowledge to act upon




                                          Blind                                     Unfocused
                               Result: end up with ‘garbage in-            Limited insight due to limitations
                                   garbage out’ syndrome                          of HCM knowledge




                                Survey instrument design & measurement expertise
LOW                                                                                                             HIGH

                                                                  © ISHCM 2006
Staff engagement: The challenge for organisations
                (The A-C Matrix)

 Fully congruent
  ‘Doing the right things
    the right way for the
           right reasons’        Knows what to
                                  do/achieve          Could do                  Fully                       “Only one box in
                                 but unlikely to       more                  productive
                                   achieve it                                                               nine reflects the
                                                                                                            constant ‘high bar’
                                                                              Less than                     challenge for
Individual’s                      More likely to                              optimally                     organisations in
 degree of                            have             Job gets
                                  performance/
                                                                             productive -                   optimising
 Alignment                       capability issues
                                                         done                 Could do
                                                                             more ‘well’                    engagement across
                                                                                                            the workforce on a
                                  Likely to have
                                  performance,
                                                      More likely to
                                                                             High probability               daily basis”
      ‘Doing the wrong                                have objective
                                    attitudinal                                 of wasted
    things/ wrong way/                                    and/or
                                      and/or                                     effort/
        wrong reasons’                                  ‘potential’
                                   behavioural                                 frustration
                                                          issues
     Incongruent                      issues


                             ‘Having to stay’   ‘Feeling of ought to stay’        ‘Wanting to stay’
                            Continuance               Degree of                                 Affective
                                                                                                             © VaLUENTiS Ltd 2002-13
                                                     Commitment
Staff engagement: The challenge for organisations
                (The A-C Matrix)

 Fully congruent
  ‘Doing the right things
    the right way for the
           right reasons’        Knows what to
                                  do/achieve          Could do                   Fully
                                      5%
                                 but unlikely to       15%
                                                       more                    15%
                                                                             productive
                                   achieve it


                                                                              Less than                        “Typical
Individual’s                      More likely to                              optimally
 degree of                            have             Job gets                                             organisational
                                    10%
                                  performance/          25%
                                                         done                   10%
                                                                             productive -
                                                                                                                split”
 Alignment                       capability issues                            Could do
                                                                             more ‘well’
                                  Likely to have
                                                      More likely to
                                  performance,                               High probability
      ‘Doing the wrong                                have objective
                                    attitudinal                                 of wasted
    things/ wrong way/              10%
                                      and/or              5%
                                                          and/or
                                                        ‘potential’
                                                                                 5%
                                                                                 effort/
        wrong reasons’             behavioural                                 frustration
                                                          issues
     Incongruent                      issues


                             ‘Having to stay’   ‘Feeling of ought to stay’        ‘Wanting to stay’
                            Continuance               Degree of                                 Affective
                                                     Commitment                                             © VaLUENTiS Ltd 2002-13
Management ‘positional mapping’…
Embedding good employee engagement practice:
      ‘Mapping the management reality’


                                                Let it happen   Help it happen   Make it happen
                           Against embedding
                                                (Ambivalent/      (qualified        (Actively
                             (Status quo OK)
                                               non-committal)    supportive)      championing)

Individual Board members

Senior managers

Middle managers

Line managers

Supervisors/Team leaders


                  Remember ‘actions speak louder than words…’
910
 ‘Line Management’
 engagement score by                                                               860

 percentile                                                          813

                                                     790

                                        760




                                              “Often overlooked:
                                              Impaired manager engagement…
                                              And its impact…”

                                                                Management client cadre sample 2010-11
                                              Sample size: 1400 managers representing 20,000 employees
Source: VaLUENTiS Engagement database                                             Score range 200-1000
‘Line Management’ engagement scores ‘bell curve’

“Same data as previous slide – different   Management client cadre sample 2010-11
graphic format…                                      Sample size: 1400 managers
Looking outside ‘norms’ that’s one in              (employee population: 20,000)
seven line managers posing serious                           Score range 200-1000
concern…”




            14.5% below one                                13.9% above one
           standard deviation                             standard deviation

   200                                     738                                      1000

                                                                   “And so…”
Source: VaLUENTiS Engagement database
Management
               education,
             assessment &
             reinforcement




Management education, assessment &
        reinforcement…
The common default mental model for senior
    managers and OD/HR practitioners…
                 ‘Challenged’    ‘Good’
                    People       People
                   Manager      Manager




    ‘Good’
   Operating
   Manager




  ‘Challenged’
   Operating
    Manager
Should be…




 ‘Good’
Manager
 Awareness of objectives/goals               27    35   15   12       8    3         Local management/leadership role model         28   25    24   11   12   1

 Individual’s behaviour aligned              30    31   11   15      10    3         Intra-team relations/cohesiveness              15   28    13   23   18   3

 Individual ‘fit’ with assigned roles        28    44   12    9       5    2         Have resources to carry out job                21   32    7    33   13   4

 Performance management effectiveness        21    29   7    19      22    2         Team effectiveness/trust                       18   31    9    23   15   4

 People receiving timely feedback/acted on 24      25   14   22      12    3         Physical environment/facilities                24   37    19   12   7    1

 Know capabilities for promotion             14    25   6    20      27    8         Work-life balance                              9    22    10   32   22   5

 SMART targeting/goals                       24    33   11   24       6    2         Sense of accomplishment                        22   33    5    18   17   5

 Values alignment                            20    21   9    21      25    4         Team diversity                                 21   20    19   17   17   6




Line of                                             Operating culture                                                                Work
                                            Inter-team relations/cohesiveness         11     18    15     26     22   8

Sight                                       Organisation decision rights
                                            Performance/talent management
                                                                                       13

                                                                                       15
                                                                                              24

                                                                                              28
                                                                                                    18

                                                                                                    10
                                                                                                           19

                                                                                                           23
                                                                                                                  16

                                                                                                                  15
                                                                                                                       10

                                                                                                                       9
                                                                                                                              Environment
 OVERALL                                   ‘Corporate’ leadership                     8     21    14     26     26   5
                                                                                                                            OVERALL             OVERALL         
                                            Pride with organisation                   24     31    14     17     11   3         
 OVERALL                                   Effective decision-making                 11     17    13     29     26   4                        OVERALL         
Reward &                                    Work values
                                                                    Learning &
                                                                                       18     29    11     25     14   3

                                            Organisational trust & openness            9     20    14     30     21   6

  This is an example where front-line client projects meet management learning.
Recognition                                                     Development ‘5D’ Employee Engagement case study
                                                                            diagnostic sheet © 2004-12


      VaLUENTiS has customised Harvard/ECCH case studies by adding employee 5 21
 Reward equity intra-organisation       22 31  6  21 17  3    Individuals possess requisite competencies 23 42                                           6    3
      engagement profiles along with32 24 2 capital data and analytics to create a7 far
 Reward equity extra-organisation       13 20  9   human  Utilisation of individual skills               17 29 24                                        17   6

 Benefits package component balanced practical learning experience for managers/practitioners.7
      more enriched and 19 29 7 25 15 5                        Pro-active training/ learning              18 25 26                                        19   5

 Performance-reward link                     20    20   10   26      21    3         Opportunities for personal development         14   22    12   29   20   3

 Recognition for contribution                        Structured coaching/mentoring
        It’s also unique and cheap to 8deliver (and also effectively on-demand).
                               14 21     31  21  5                                   12                                                    25    8    25   22   8

 Promotion for contribution/performance      19    29   15   21      12    4         Job/role architecture                          14   32    15   20   13   6

 Incentives encourage correct behaviour       7    24   10   29      21    9         Career progression paths                       19   33    7    21   17   3

 Incentives encourage achievement            17    28   16   18      16    5         Succession planning                            13   24    6    29   21   7
‘Game management’…
Game Management
EE playbook example content

      Contents




                                                             Strategies
      1.    Engagement strategies
      2.    Engagement operating ‘system’ models and
            analytics templates
      3.    Question-statement selection and construct




                                                             Models
            design
      4.    Measurement index construction,
            maintenance and reporting
      5.    Engagement Driver Factor (EDF) analysis




                                                              Implementation
      6.    Engagement ‘forcefield’ analysis
      7.    EE project management methodology and
            flowcharts
      8.    Engagement ‘issue work-through’ tools
      9.    Management learning programme design and
            evaluative criteria




                                                             Learning
      10.   Engagement Transformation Programme (ETP)
            methodology
      11.   Core applied theory summary capsules
      12.   Human Capital Management framework




                             4                 EE playbook
Performance/                            Management
productivity                             education,
‘holes’                                assessment &
                                       reinforcement
                          Employee
                           survey                         ‘Game
          People
                       information &                    management’
           data
                            other
        availability
                         evaluations   Management
         & quality
                                        ‘positional
                                         mapping’




                                                       100 day plan…
100 Day plan (simplified)
                            5   10 15 20   25 30 35 40   45 50 55 60   65 70 75 80   85 90 95 100
1. Performance/
   productivity/
   engagement ‘holes’



2. People data
   availability & quality


3. Employee survey
   information & other
   evaluations


4. Management
   ‘positional mapping’


5. Management education,
   assessment &
   EE PLAYBOOK

   reinforcement


6. ‘Game management’
The ‘4-ball’ Employee Engagement reality matrix
Pillar                              ‘PLAY DOWN’                        ‘PLAY ACT’                     ‘PLAY SAFE’                   ‘PLAY MAKE’

           Grounded
  I
                                                                                                      Exists in pockets with       Good working knowledge
           understanding of                                                 Limited.
                                              Little.                                                    variation in line            embedded across
           employee engagement                                     Mostly ephemeral in nature.
                                                                                                          management.                   organisation.

                                                                                                      Maybe borrowed with
 II        Working definition of                                      Most likely borrowed                                         Distributed ‘ownership’,
                                                                                                    internalisation or adapted
           employee engagement         No definition in use.       without any real ownership,                                    whether borrowed, adapted
                                                                                                    after some organisational
                                                                       or ‘false’ ownership.                                              or created.
                                                                                                               focus.
                                                                      Probably undertaking         Will do measurement basics,       People management
III
                                     Limited to absenteeism
           Measurement wisdom                                       surveys but with no valid          even to the extent of       evaluation/measurement
                                    metrics, employee surveys
                                                                   construct; response rate/PR       engagement index etc.        seen as ‘core’ on a par with
                                   seen as event driven if done.
                                                                           main focus.                Tick box is main focus.         CRM , finance etc.
                                                                   Probably in the form of basic      Will have a number of       Will have necessary ‘toolkit’
IV
                                   Probably in the form of basic
           Actioning                                                management courses. Most       actioning elements in place       to hand with ongoing
                                      training/management
           Infrastructure                                          likely carry out some form of    but not necessarily joined         programmes to suit
                                             courses.
                                                                       branded programme.                      up.                     organisation focus.
                                                                       May have something            Playbook in the form of       Easy access in different e-
 V         EE-Performance
           Playbook
                                          Does not exist.
                                                                    articulated on ‘strategies’.
                                                                     Most likely collection of
                                                                                                   ‘manager manual’ or on-line
                                                                                                   knowledge-share. Still being
                                                                                                                                      /physical formats at
                                                                                                                                    different levels. Signals
                                                                     irrelevant case studies.              developed.                 ‘embedded’ intent.
                                     Will have varied mix of         Will have varied mix of          Will have varied mix of        Cohort of well-trained
VI         Competent leadership/
           management
                                    skilled people managers.
                                    Existing good performers
                                                                    skilled people managers.
                                                                    Existing good performers
                                                                                                   skilled people managers but
                                                                                                   level of competency higher
                                                                                                                                  people managers exists with
                                                                                                                                      talent pools. Regular
                                       more through luck.              more through luck.          than Play-Act organisations.    evaluation/reinforcement.


Overall value to organisation
performance/competitive                 NEGATIVE                        NEGATIVE                        NEUTRAL                        POSITIVE
advantage
                                                                                                                                                             52
Something to ponder..

“For a successful technology, reality must take
precedence over public relations, for nature cannot be
fooled.

Richard Feynman, Appendix F on the Challenger Disaster Enquiry




Thus with respect to employee engagement:
“For a successful (human) technology, reality must
take precedence over public relations, for (human)
nature cannot be fooled.”
                                                                 53
Three phrases we constantly use…



 ‘Get with the programme.’

       ‘Join them dots.’

‘Watch out for the tank traps.’


                                    54
‘Your mission should you
  choose to accept it…’

                            ‘Think
                              HR.
   THANK YOU.                Think
                            Human
                           Capital.’
                             Tour
                            2013
Nicholas J Higgins
nicholas.higgins@valuentis.com
VaLUENTiS Ltd, 2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
HO: +44 (0)207 887 6108
M: +44 (0)7811 404713

www.valuentis.com
www.ISHCM.com
www.NicholasJHiggins.com
www.HCglobal.blogspot.com
Employee Engagement Solutions
                                                                                                             Evidenced based definition,
                                                                                                           understanding and application
                                              Global
What we bring…                                reach




                                                                                                                                   Measurement wisdom
               Senior management                                                                                                          and expertise
               feedback sessions
                                                                                            Performance
                                                                                                    link
                                                                Line of
                                                                sight


                                                                                                             Reward
                                                                                                             (equity)
              ‘License to
              manage’                                  Work                                                                                         On-line tools
              programmes                               environment
                                                                                                                                                    and analytics



                                                                                                     Development
                                                                          Operating
                                                                          culture
                         Frontline
                         blended                                                                                                             Survey design
                         learning                                                                                                                expertise




                                          Actioning
VaLUENTiS Ltd,
2nd Floor, Berkeley Square House,    strategies and
                                                                                                                                  Project
Berkeley Square, London W1J 6BD              tactics                                     THE
                                                                                          EE                                 management
HO: +44 (0)207 887 6108/21                                                            PLAYBOOK
                                                                                                                                expertise             ‘Ten years of
www.valuentis.com                                                                                                                                     innovation…’
www.ISHCM.com
M
anagement



P   athfinder®

       Think Human
          Capital.
Smart. Smarter. Smartest...


   Professional Services
   www.valuentis.com

‘The leading human capital
 management specialists’
                                                                         ‘PEOPLE SCIENCE®’



                                         Organisation Intelligence
                                                  to
                                         improve organisation performance
                                                 •   Human Capital Management Evaluation
                                                 •   Employee Engagement
                                                 •   Talent Management
                                                 •   Workforce Productivity & Performance
                                                 •   Predictive Analytics
                                                 •   HC Forensics & Risk
                                                 •   HR Function ROI Analysis
                                                 •   Organisation Measurement
                                                 •   Management Education
                                                 •   Organisation Strategy


                             SOLUTIONS
2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
Tel: +44 (0)207 887 6121
                                                                                  …+
Fax: +44 (0)207 887 6100
enquiries@ISHCM.com
www.ISHCM.com




  Think HR. Think Human Capital.™



       Human Capital
  Only one place to learn



  Management.                       Being human is unique. Attaining an M Sc in HCM is even more so.

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VaLUENTiS Employee Engagement EE Summit pres 160413 final dist copy

  • 1. Employee Engagement Conference Symposium Events London UK April 2013 Employee Engagement in Organisations: The first days for ambitious HR functions ‘Think Nicholas J Higgins, DrHCMI MSc Fin (LBS) MBA (OBS) MCMI HR. CEO, VaLUENTiS Ltd & Dean, International Think School of Human Capital Management (‘ISHCM’) Human Capital.’ Tour 2013
  • 2. Video version available through WTG on-demand service. All rights reserved. No part of this presentation may be reproduced, translated, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming recording or otherwise without the express permission of the author. Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction/ organisational distribution. © 2013
  • 4. ‘A selection of previous relevant presentations…’
  • 6. 1. Which famous experiments took place at Western Electric Co in the 20th Century…?
  • 7. Hawthorne Experiments (1924-1933) Illumination Studies (1924-27) • Inter-relationship of social and physical factors in determining productivity • Unintended consequences on artefacts of experimental setting Relay Assembly Test Room (1927-32) • Impact of supervision on worker behaviour • Employee participation • Development of group cohesiveness • Matching worker expectations and job characteristics Second relay assembly (1928) • Worker sentiments and values • Different wage incentives cannot account • Spill-over of non-work experiences into work life for all of test room productivity increases • Informal leadership • Worker attitudes and productivity • Multidimensional view of work motivation MICA Splitting Test Room (1929) • Autonomous work groups • Limits to wage incentive Bank Wiring Observation Interview Programme (1928-30) Room (1931-32) • Employee feedback • Informal system • Non-directive counselling • Group social strata • Status distinction and interpersonal perception • Anti-management group norms • Supervisor training • Coercive impact of group norms • Physical proximity and attitudes Source: Adapted from Shedding Light on the Hawthorne Studies, Sonnenfeld J.A. 1985 Photographs: Harvard Baker Library
  • 8. 2. Which US company is most associated with employee surveys and causal studies linking to performance …?
  • 9. A look back at The original Sears E-C-P Chain… (an early forerunner of ‘employee engagement’ with causal performance link) A compelling A compelling place to work A compelling place to shop place to invest Customer Attitude Service recommendations about the Helpfulness job Return on assets Employee Customer Operating margin Behavior Impression Revenue growth Attitude Merchandise about the Value company Employee Customer retention retention 5 unit increase 13 unit increase 0.5% increase in in employee in customer revenue growth attitude impression The Employee-Customer-Profit chain at Sears By Anthony J. Rucci , Stephen P. Kirn and Richard T. Quinn Harvard Business Review Jan-Feb 1998
  • 10. 3. Which author, with an article published in 1990, is attributed as being the first to use the term ‘employee engagement’…?
  • 11. Psychological Conditions of Personal Engagement and Disengagement at Work William A. Kahn Academy of Management Journal 1990 “Personal Engagement is the simultaneous employment and expression of a person’s ‘preferred self’ in task behaviors that promote connections to work and to others, personal presence (physical, cognitive and emotional), and active, full role performance.” 11
  • 12. poorly communicated reorganisation perceived short-staffed reward inequity interpersonal planned conflict training cancelled uncaring new incentive boss misalignment enlarged Well-received role performance appraisal hit personal targets/ hit team objectives targets/ objectives “A further, more up to salary enrolled on MD date interpretation…” increase programme Employee engagement as a sum of constant work ‘forces’ (VaLUENTIS EESoF model) illustrative vectors
  • 13. 4. What is ‘acknowledged’ as the single biggest factor in an individual’s engagement at work…?
  • 14. Illustrating the management influence using VaLUENTiS 5D Employee Engagement Framework Line-of-Sight Work Environment Objectives awareness Cultural elements Behaviour alignment Team dynamics Role ‘fit’ Communication Performance management Organisation operating Resources culture Feedback Local management Capability Physical environment Organisation design Performance/talent management Remuneration equity ‘Corporate’ Leadership Career progression Communication Bonus/incentives Decision rights Competencies Benefits Work values Succession planning Trust Role equity Job/ Role architecture Recognition Training/ Learning Promotional aspects Coaching/ Mentoring Reward (equity) Development © VaLUENTiS Ltd 2002-13 A manager has influence in many areas of engagement, some more than others…
  • 15. The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital management practice related to organisation performance – 100 years in the making •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y •Hertzberg – Two factor theory •Drucker – Practice of management Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
  • 16. VaLUENTiS 5D Employee Engagement: Core empirical theories that combine to form the root structure of the VaLUENTiS model •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y “But all the others have a part to play…” •Hertzberg – Two factor theory •Drucker – Practice of management Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
  • 17. 5. What is the connection between job satisfaction and job performance…?
  • 18. 6. Complete this ‘well-known phrase’: “If employee engagement was the answer, …………………………......?”
  • 19. Observation 101 Absenteeism, turnover, ill-discipline, manager resistance, communication and/or trust issues etc are all, to a great degree, manifestations of poor employee engagement in some form. “Many case studies and indeed academic comment, however, seem to ignore this fact. Thus, we’re seemingly praising ourselves for putting a fire out – the very one we started as an organisation! What happened to the ‘Why’ in the first instance? As an industry practitioner question - What’s going on here?” 19
  • 20. Part II The first 100 days… 20
  • 21. Back to the ‘Six Pillars’… 1. Grounded understanding of Employee Engagement 2. Working definition of Employee Engagement 3. Measurement wisdom 4. Actioning infrastructure EE PLAYBOOK 5. Dynamic EE-Performance ‘playbook’ DELETE 6. Competent leadership/management
  • 22. Organisations and employee engagement: The ‘4-ball’ practice model ‘We don’t...’ ‘It’s all about PR…’ Play down Play act ‘At least we audit/ benchmark...’ Play safe ‘We do it…’ Play make The four progressive states of employee engagement embeddedness in organisations
  • 23. The ‘4-ball’ Employee Engagement reality matrix Pillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People management III Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’ IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trained VI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement.
  • 24. Human capital management practice and employee engagement contributing to improved organisational performance (‘POP’ system) More effective human capital management Higher Higher organisation productivity performance Higher employee engagement
  • 25. VaLUENTiS Management Pathfinder®: Client example (extended version) LEARNING & DIVERSITY DEVELOPMENT TALENT EMPLOYEE MANAGEMENT 813 CENTRICITY EMPLOYER REWARD BRAND 674 599 416 657 615 HR RETENTION GOVERNANCE 742 431 684 487 HR RESOURCING 642 OPERATIONAL 603 594 EXCELLENCE 628 ‘Out-performing’ (world class) ‘Out-performing’ PERFORMANCE LEADERSHIP (peer) ORIENTATION ‘Comparable’ 796 (peer) ORGANISATION ORGANISATION ‘Under-performing’ DESIGN CLIMATE (peer) ORGANISATION COMMUNICATIONS
  • 26. Employee Engagement - Actioning Infrastructure 1 4 2 3
  • 27. Actioning Employee Engagement Infrastructure (Purpose: ‘to embed’) ‘Live’ Employee Engagement adapted QFD Defined ‘how to’ (‘House of strategies around Quality’) People Manager engagement evaluation/ elements appraisal Supportive top (regular leadership and ‘practice runs’) Organisation Links into wider event logs organisation ‘signalling’… intelligence EE related analytics development/ Multi-survey learning mapping and programmes & workshops ‘Interactive’ people planning management evaluation overlay process map Nominated Wider People Manager communications/ Engagement line branding champions Dedicated internal focus team or nominated ‘on-point’ person “Spinning plates cogs…”
  • 28. Performance/ Management productivity/ education, engagement assessment & ‘holes’ reinforcement Employee survey ‘Game People information & management’ data other availability evaluations Management & quality ‘positional mapping’ Boiling it down…
  • 30. Organisation Performance (as defined by organisation/unit scorecard measures and derivative metrics) Examples of organisation performance areas: Sales Service Patient delivery Operational Organisation Revenue Customer care risk satisfaction Procurement Product support Quality development Safety Cost…
  • 31. ‘P12 modes of productivity’ More likely to More likely to More likely to produce higher achieve goals set embrace set grade/quality of values work (less errors) More likely to be More likely to give flexible to discretionary effort More likely to ‘own’ More inclined to More inclined to organisation needs (if above contractual their development input into ideas/ share knowledge equitable) obligations innovation Less likely to suffer Less inclined to take Less likely to move stress days off employer (but more likely to suffer burn-out) Applied across all job roles in the context of the role specificity and environment which impact on individual and collective performance
  • 32. Impaired Employee Engagement: Impact on individual and team productivity/performance Sub-optimal performance, i.e. less than achievable Or Sub-optimal costs, i.e. higher than necessary Or Both 32
  • 33. People data availability & quality…
  • 34. Employee Engagement triangulation “Squaring the circle…” New (re)hire data Customer/client/ Performance patient/citizen appraisal data data Social media data Employee/management survey data Critical Case data incident data Organisation Other internal event log data survey/assessment data Exit data
  • 35. “To this - The Engagement-Performance Matrix” Performance area New (re)hire data Performance appraisal data Employee/manage “There is ment survey data much that Case data organisations can do for Other internal survey/ assessment data themselves” Exit data Organisation event ‘Hawthorne’ log data for the 21st Critical incident data Century organisation” Social media data Customer/client/ patient/citizen data
  • 36. Employee survey information & other evaluations…
  • 37. The employee survey expertise model HIGH HCM subject matter expertise Myopic 20/20 Foresight Result: Result: organisation has misleading or erroneous sufficient in-depth, robust interpretation knowledge to act upon Blind Unfocused Result: end up with ‘garbage in- Limited insight due to limitations garbage out’ syndrome of HCM knowledge Survey instrument design & measurement expertise LOW HIGH © ISHCM 2006
  • 38. Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent ‘Doing the right things the right way for the right reasons’ Knows what to do/achieve Could do Fully “Only one box in but unlikely to more productive achieve it nine reflects the constant ‘high bar’ Less than challenge for Individual’s More likely to optimally organisations in degree of have Job gets performance/ productive - optimising Alignment capability issues done Could do more ‘well’ engagement across the workforce on a Likely to have performance, More likely to High probability daily basis” ‘Doing the wrong have objective attitudinal of wasted things/ wrong way/ and/or and/or effort/ wrong reasons’ ‘potential’ behavioural frustration issues Incongruent issues ‘Having to stay’ ‘Feeling of ought to stay’ ‘Wanting to stay’ Continuance Degree of Affective © VaLUENTiS Ltd 2002-13 Commitment
  • 39. Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent ‘Doing the right things the right way for the right reasons’ Knows what to do/achieve Could do Fully 5% but unlikely to 15% more 15% productive achieve it Less than “Typical Individual’s More likely to optimally degree of have Job gets organisational 10% performance/ 25% done 10% productive - split” Alignment capability issues Could do more ‘well’ Likely to have More likely to performance, High probability ‘Doing the wrong have objective attitudinal of wasted things/ wrong way/ 10% and/or 5% and/or ‘potential’ 5% effort/ wrong reasons’ behavioural frustration issues Incongruent issues ‘Having to stay’ ‘Feeling of ought to stay’ ‘Wanting to stay’ Continuance Degree of Affective Commitment © VaLUENTiS Ltd 2002-13
  • 41. Embedding good employee engagement practice: ‘Mapping the management reality’ Let it happen Help it happen Make it happen Against embedding (Ambivalent/ (qualified (Actively (Status quo OK) non-committal) supportive) championing) Individual Board members Senior managers Middle managers Line managers Supervisors/Team leaders Remember ‘actions speak louder than words…’
  • 42. 910 ‘Line Management’ engagement score by 860 percentile 813 790 760 “Often overlooked: Impaired manager engagement… And its impact…” Management client cadre sample 2010-11 Sample size: 1400 managers representing 20,000 employees Source: VaLUENTiS Engagement database Score range 200-1000
  • 43. ‘Line Management’ engagement scores ‘bell curve’ “Same data as previous slide – different Management client cadre sample 2010-11 graphic format… Sample size: 1400 managers Looking outside ‘norms’ that’s one in (employee population: 20,000) seven line managers posing serious Score range 200-1000 concern…” 14.5% below one 13.9% above one standard deviation standard deviation 200 738 1000 “And so…” Source: VaLUENTiS Engagement database
  • 44. Management education, assessment & reinforcement Management education, assessment & reinforcement…
  • 45. The common default mental model for senior managers and OD/HR practitioners… ‘Challenged’ ‘Good’ People People Manager Manager ‘Good’ Operating Manager ‘Challenged’ Operating Manager
  • 47.  Awareness of objectives/goals 27 35 15 12 8 3  Local management/leadership role model 28 25 24 11 12 1  Individual’s behaviour aligned 30 31 11 15 10 3  Intra-team relations/cohesiveness 15 28 13 23 18 3  Individual ‘fit’ with assigned roles 28 44 12 9 5 2  Have resources to carry out job 21 32 7 33 13 4  Performance management effectiveness 21 29 7 19 22 2  Team effectiveness/trust 18 31 9 23 15 4  People receiving timely feedback/acted on 24 25 14 22 12 3  Physical environment/facilities 24 37 19 12 7 1  Know capabilities for promotion 14 25 6 20 27 8  Work-life balance 9 22 10 32 22 5  SMART targeting/goals 24 33 11 24 6 2  Sense of accomplishment 22 33 5 18 17 5  Values alignment 20 21 9 21 25 4  Team diversity 21 20 19 17 17 6 Line of Operating culture Work  Inter-team relations/cohesiveness 11 18 15 26 22 8 Sight  Organisation decision rights  Performance/talent management 13 15 24 28 18 10 19 23 16 15 10 9 Environment OVERALL   ‘Corporate’ leadership 8 21 14 26 26 5 OVERALL OVERALL   Pride with organisation 24 31 14 17 11 3  OVERALL   Effective decision-making 11 17 13 29 26 4 OVERALL  Reward &  Work values Learning & 18 29 11 25 14 3  Organisational trust & openness 9 20 14 30 21 6 This is an example where front-line client projects meet management learning. Recognition Development ‘5D’ Employee Engagement case study diagnostic sheet © 2004-12 VaLUENTiS has customised Harvard/ECCH case studies by adding employee 5 21  Reward equity intra-organisation 22 31 6 21 17 3  Individuals possess requisite competencies 23 42 6 3 engagement profiles along with32 24 2 capital data and analytics to create a7 far  Reward equity extra-organisation 13 20 9 human  Utilisation of individual skills 17 29 24 17 6  Benefits package component balanced practical learning experience for managers/practitioners.7 more enriched and 19 29 7 25 15 5  Pro-active training/ learning 18 25 26 19 5  Performance-reward link 20 20 10 26 21 3  Opportunities for personal development 14 22 12 29 20 3  Recognition for contribution  Structured coaching/mentoring It’s also unique and cheap to 8deliver (and also effectively on-demand). 14 21 31 21 5 12 25 8 25 22 8  Promotion for contribution/performance 19 29 15 21 12 4  Job/role architecture 14 32 15 20 13 6  Incentives encourage correct behaviour 7 24 10 29 21 9  Career progression paths 19 33 7 21 17 3  Incentives encourage achievement 17 28 16 18 16 5  Succession planning 13 24 6 29 21 7
  • 49. Game Management EE playbook example content Contents Strategies 1. Engagement strategies 2. Engagement operating ‘system’ models and analytics templates 3. Question-statement selection and construct Models design 4. Measurement index construction, maintenance and reporting 5. Engagement Driver Factor (EDF) analysis Implementation 6. Engagement ‘forcefield’ analysis 7. EE project management methodology and flowcharts 8. Engagement ‘issue work-through’ tools 9. Management learning programme design and evaluative criteria Learning 10. Engagement Transformation Programme (ETP) methodology 11. Core applied theory summary capsules 12. Human Capital Management framework 4 EE playbook
  • 50. Performance/ Management productivity education, ‘holes’ assessment & reinforcement Employee survey ‘Game People information & management’ data other availability evaluations Management & quality ‘positional mapping’ 100 day plan…
  • 51. 100 Day plan (simplified) 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 1. Performance/ productivity/ engagement ‘holes’ 2. People data availability & quality 3. Employee survey information & other evaluations 4. Management ‘positional mapping’ 5. Management education, assessment & EE PLAYBOOK reinforcement 6. ‘Game management’
  • 52. The ‘4-ball’ Employee Engagement reality matrix Pillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People management III Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’ IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trained VI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement. Overall value to organisation performance/competitive NEGATIVE NEGATIVE NEUTRAL POSITIVE advantage 52
  • 53. Something to ponder.. “For a successful technology, reality must take precedence over public relations, for nature cannot be fooled. Richard Feynman, Appendix F on the Challenger Disaster Enquiry Thus with respect to employee engagement: “For a successful (human) technology, reality must take precedence over public relations, for (human) nature cannot be fooled.” 53
  • 54. Three phrases we constantly use… ‘Get with the programme.’ ‘Join them dots.’ ‘Watch out for the tank traps.’ 54
  • 55. ‘Your mission should you choose to accept it…’ ‘Think HR. THANK YOU. Think Human Capital.’ Tour 2013
  • 56. Nicholas J Higgins nicholas.higgins@valuentis.com VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD HO: +44 (0)207 887 6108 M: +44 (0)7811 404713 www.valuentis.com www.ISHCM.com www.NicholasJHiggins.com www.HCglobal.blogspot.com
  • 57. Employee Engagement Solutions Evidenced based definition, understanding and application Global What we bring… reach Measurement wisdom Senior management and expertise feedback sessions Performance link Line of sight Reward (equity) ‘License to manage’ Work On-line tools programmes environment and analytics Development Operating culture Frontline blended Survey design learning expertise Actioning VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, strategies and Project Berkeley Square, London W1J 6BD tactics THE EE management HO: +44 (0)207 887 6108/21 PLAYBOOK expertise ‘Ten years of www.valuentis.com innovation…’ www.ISHCM.com
  • 58. M anagement P athfinder® Think Human Capital.
  • 59. Smart. Smarter. Smartest... Professional Services www.valuentis.com ‘The leading human capital management specialists’ ‘PEOPLE SCIENCE®’ Organisation Intelligence to improve organisation performance • Human Capital Management Evaluation • Employee Engagement • Talent Management • Workforce Productivity & Performance • Predictive Analytics • HC Forensics & Risk • HR Function ROI Analysis • Organisation Measurement • Management Education • Organisation Strategy SOLUTIONS
  • 60. 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD Tel: +44 (0)207 887 6121 …+ Fax: +44 (0)207 887 6100 enquiries@ISHCM.com www.ISHCM.com Think HR. Think Human Capital.™ Human Capital Only one place to learn Management. Being human is unique. Attaining an M Sc in HCM is even more so.