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
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…?
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
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
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
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
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
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
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
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
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
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