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Engagement as a Business Strategy: Driving Meaningful and Lasting Change October, 2006

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The Welch Way <ul><li>If you had to pick, which three measurements give the best sense of a company's health? -- Anonymous, Orlando </li></ul><ul><ul><li>Employee engagement first. It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it. That's why you need to take the measure of employee engagement at least once a year through anonymous surveys in which people feel completely safe to speak their minds. </li></ul></ul><ul><ul><li>But watch out. Don't fall into the common trap of letting these surveys devolve into questionnaires about the little stuff, such as the tastiness of the food in the company cafeteria or the availability of spaces in the parking lot. The most meaningful surveys probe how employees feel about the strategic direction of the company and the quality of their career opportunities. They ask questions such as these: Do you believe the company has goals that people fully grasp, accept, and support? Do you feel the company cares about you and that you have been given the opportunity to grow? Do you think that your everyday work is connected to what company leaders say in speeches and in the annual report? The best employee surveys are getting at one question: Are we all on the same team here? </li></ul></ul>

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Engagement as a Business Strategy <ul><li>What is an engagement business strategy? </li></ul><ul><li>What is the linkage of engagement to business outcomes? </li></ul><ul><li>What influence does (or should) having an engagement strategy have on leaders in the organization? </li></ul><ul><li>What about employees? </li></ul><ul><li>How does that get translated into day to day operations? </li></ul>

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Engagement Philosophy <ul><li>Engagement is a combination of perceptions and a willingness to be an advocate of the organization that has a consistent and predictable impact on behavior including satisfaction, commitment, pride, loyalty and a strong sense of personal responsibility. </li></ul><ul><li>Though the more traditional concept of “ employee satisfaction” is important, it is not as critical to organizational effectiveness as is engagement. </li></ul><ul><li>When individual employees are truly engaged, they can tolerate limited periods of lower work satisfaction and stay highly committed. </li></ul><ul><li>When employees are fully engaged, they are more productive, committed, and conscientious. </li></ul>

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Engagement Model Common Drivers of Engagement Open, Two-way Communication Trust & Confidence in leadership Empowerment Service Quality Future Vision Rewards & Recognition Growth & Development Teamwork, Involvement & Belonging Areas for Consideration Diversity / Inclusion Safety Policy & Procedure Work-life Balance Resource Availability Employee Alignment

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Engagement Model <ul><li>Kenexa’s Engagement Index = the aggregate score of: </li></ul><ul><ul><ul><li>Extreme Satisfaction Item </li></ul></ul></ul><ul><ul><ul><li>Referral Item </li></ul></ul></ul><ul><ul><ul><li>Retention Item </li></ul></ul></ul><ul><li>The Engagement Index will provide an overall diagnosis of organizational health, but it is not prescriptive; the 3 index items are not actionable. </li></ul><ul><li>The balance of the items on the survey are actionable. Advanced statistical analyses (correlation & regression) are used to reveal which drivers most strongly relate to overall engagement across the organization, and within specific departments. </li></ul><ul><li>Kenexa focuses on the drivers that have the biggest impact on employee engagement – issues that mean the most to your employees at this point in time. </li></ul>

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Sample Employee Engagement Items <ul><li>Summary Items (Employee Engagement, Manager Effectiveness) </li></ul><ul><li>Overall, I am extremely satisfied with this company as a place to work. </li></ul><ul><li>My manager is an outstanding leader. </li></ul><ul><li>Communication </li></ul><ul><li>In this company there is open and honest two-way communication. </li></ul><ul><li>My manager is an effective listener. </li></ul>

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Sample Employee Engagement Items <ul><li>Recognition and Rewards </li></ul><ul><li>This company values my contribution. </li></ul><ul><li>This company recognizes productive people. </li></ul><ul><li>I regularly receive praise or recognition when I do good work. </li></ul><ul><li>Involvement and Belonging </li></ul><ul><li>I feel that I am part of a team. </li></ul><ul><li>My manager really cares about my well-being. </li></ul><ul><li>I am involved in decisions that affect my work. </li></ul><ul><li>Growth and Development </li></ul><ul><li>This company provides me with opportunities to learn and grow. </li></ul><ul><li>Someone in this company has made a personal investment in my growth and development. </li></ul>

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Sample Employee Engagement Items <ul><li>Future/Vision </li></ul><ul><li>I believe this company has an outstanding future. </li></ul><ul><li>I trust the leadership of this company . </li></ul><ul><li>Quality </li></ul><ul><li>As a customer of this company I would be extremely satisfied with the quality of the products and services I receive. </li></ul><ul><li>The people I work with do their very best for this company . </li></ul><ul><li>Diversity </li></ul><ul><li>This company is committed to providing equal opportunities for all employees. </li></ul><ul><li>I feel free to discuss diversity issues at work. </li></ul>

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Employee Engagement and Business Strategy <ul><li>Engagement data and Strategic Plan </li></ul><ul><ul><li>Integrated and considered together </li></ul></ul><ul><li>Engagement Driver Analysis </li></ul><ul><ul><li>Prioritizes Issues for Leaders and Managers </li></ul></ul><ul><ul><ul><li>Survey Question </li></ul></ul></ul><ul><ul><ul><li>Score </li></ul></ul></ul><ul><ul><ul><li>Strategic Gap </li></ul></ul></ul><ul><li>Action Strategy </li></ul><ul><ul><li>Strategic Priorities </li></ul></ul><ul><ul><li>Action Plans </li></ul></ul><ul><ul><ul><li>Design </li></ul></ul></ul><ul><ul><ul><li>Execute </li></ul></ul></ul>

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Employee Engagement and Business Strategy <ul><li>Culture : </li></ul><ul><li>The predominating attitudes and behavior that characterize the functioning of a group or organization. </li></ul><ul><li>Organization : </li></ul><ul><li>A structure through which individuals cooperate systematically to conduct business; The administrative personnel of such a structure. </li></ul><ul><li>Change : </li></ul><ul><li>To cause to be different; To give a completely different form or appearance to; To transform. </li></ul>

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Employee Engagement and Business Strategy <ul><li>Business Strategy </li></ul><ul><ul><li>Needed Organizational Capabilities </li></ul></ul><ul><ul><ul><li>Clear line of sight to larger goals and strategy </li></ul></ul></ul><ul><ul><ul><li>Known for technical and business leadership </li></ul></ul></ul><ul><ul><li>Needed Engagement Profile </li></ul></ul><ul><ul><ul><li>Team members understand their customers </li></ul></ul></ul><ul><ul><ul><li>Team members are confident in the strategy </li></ul></ul></ul>

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Engagement Linked to Outcomes <ul><li>Employees </li></ul><ul><li>Discretionary Effort </li></ul><ul><li>Intent to Stay </li></ul><ul><li>Business Outcomes </li></ul><ul><li>Customer Evaluation and Feedback </li></ul><ul><li>Customer Willingness to Recommend/ Refer </li></ul><ul><li>Customer Likely to Return </li></ul><ul><li>More Efficient and Effective Customer Care </li></ul><ul><li>Sales Lead Closing </li></ul><ul><li>Profit Growth </li></ul>

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Engagement Strategy and Leadership <ul><li>Change Agents </li></ul><ul><li>Must Be Active </li></ul><ul><ul><li>Focus Listening Questions (FLQs) </li></ul></ul><ul><ul><li>Strategic Action Steps/ Plans (SASs) </li></ul></ul><ul><li>Accountability </li></ul><ul><ul><li>Plan </li></ul></ul><ul><ul><li>Take Action </li></ul></ul><ul><ul><li>Monitor Action </li></ul></ul><ul><li>Change Over Time </li></ul>

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Leaders and the Change Continuation Process Implement Actions Plan Actions Feedback Results Change Continuation Administer Survey

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Sample FLQs <ul><li>Communication Item: </li></ul><ul><li>In this organization there is open and honest two-way communication. </li></ul><ul><ul><li>What can be done to create a more open and honest communication environment? </li></ul></ul><ul><ul><li>What are the obstacles to open communication? </li></ul></ul><ul><ul><li>What are the specific communication issues that we should be dealing with in a more open manner? </li></ul></ul><ul><li>Diversity Item: </li></ul><ul><li>All employees of this organization are treated as individuals regardless of age, race, gender, physical capabilities, etc. </li></ul><ul><ul><li>What might cause some people to feel that they are not being treated as individuals? </li></ul></ul><ul><ul><li>Do you think some people feel that they are treated in a biased manner? </li></ul></ul><ul><ul><li>What recourse do employees have if they feel that have been treated unfairly? </li></ul></ul><ul><ul><li>What actions need to happen for the company to show evidence of its commitment to treat people fairly and without regard of individuals' attributes (i.e., age, race, gender, etc.)? </li></ul></ul>

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Sample SASs <ul><li>Communication Item: </li></ul><ul><li>In this organization there is open and honest two-way communication. </li></ul><ul><li>Develop the habit of active listening. Listen with the intent of understanding your employees and patients and not just reacting to what they're saying. Let people know you understand them by paraphrasing the main points that they share with you. </li></ul><ul><li>Diversity Item: </li></ul><ul><li>All employees of this organization are treated as individuals regardless of age, race, gender, physical capabilities, etc. </li></ul><ul><li>Form a committee of diverse employees (in regards to age, race, gender, physical capabilities, etc.) to share their ideal organizational vision with respect to diversity. Empower these employees to monitor diversity and inclusion issues at the local level and to make practical suggestions on how to fulfill the organization's commitment to diversity values. </li></ul>

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Engagement Strategy and Employees <ul><li>Employee Input </li></ul><ul><li>Influence </li></ul><ul><ul><li>Survey Responses </li></ul></ul><ul><ul><li>FLQs </li></ul></ul><ul><ul><li>SASs </li></ul></ul><ul><li>Change Agents </li></ul>

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Engagement Strategy and Everyday <ul><li>Over-time Focus </li></ul><ul><li>Awareness of Employees and Need for Alignment </li></ul><ul><ul><li>Business Strategy Through Engagement </li></ul></ul><ul><li>Daily Practices and Engagement Antecedents </li></ul><ul><ul><li>Open, Two-way Communication </li></ul></ul><ul><ul><li>Trust & Confidence in leadership </li></ul></ul><ul><ul><li>Empowerment </li></ul></ul><ul><ul><li>Service Quality </li></ul></ul><ul><ul><li>Future Vision </li></ul></ul><ul><ul><li>Rewards & Recognition </li></ul></ul><ul><ul><li>Growth & Development </li></ul></ul><ul><ul><li>Teamwork, Involvement & Belonging </li></ul></ul><ul><li>Involve Employees </li></ul>

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<ul><li>The ultimate success of change efforts is directly related to the traits/characteristics of those who have to implement the change </li></ul><ul><li>As scientist practitioners, we need to look beyond ourselves to be our best </li></ul><ul><li>This is not an employee survey solution, this is a change management must </li></ul><ul><li>Engaging employees is an ongoing effort, not a point in time solution </li></ul><ul><li>In order for change to be sustainable, you need a strong process, simple and effective tools, and the right people leading the effort </li></ul>Key Take-Aways

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