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Engaging Employees Impacting Employees to Stay, Perform, Influence and Recommend Kelly Groehler, APR “Who’s Line Is It Anyway?” 2 “If you are going to treat customers first, you must treat employees more first.” Employees More First? 83% of workers plan to look for a new job when economy heats up 35% of “top performing” employees are at “high risk” of leaving their jobs 60% of workers feel pressure to work too much 83% of employees want more time with their families 56% of workers are either somewhat or completely dissatisfied with their jobs Source: 12/2003, “CNN/Money”, based on data from Society for Human Resource Professionals, Sibson Consulting, Gallup, Monster.com 3 Learning Objectives 4 Strengthen the value of employees Discover the prevalence of communication opportunities Understand how effective communication strategies build engagement and achieve outcomes Today’s Environment Presents Significant Challenges… Performance-driven everything… “what have you done for me today?” – Relentless pressure for profitable results – – – Products & services Talent Investment capital Battered institutional trust, credibility and reputation Ultra access to information (or misinformation) – – – 5 Performance-based environments and systems (e.g. compensation) Increasingly intense competition – RIFs Higher compliance costs Escalating health care costs Everybody is a communicator Altered lifestyles Intense mind-share competition …In Which Communication Opportunities Are Prevalent “Top 10 Barriers to Effective Supply Chain Management” 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Inadequate information-sharing Poor/conflicting measurement Inconsistent operating goals Organizational culture Resistance to change - lack of trust Poor alliance management practices Lack of supply chain vision/understanding Lack of managerial commitment Constrained resources No employee passion/empowerment “Achieving World-Class Supply Chain Alignment” Center for Advanced Purchasing Studies 6 Effective Communication Builds Engagement, Achieves Outcomes INFORM & EDUCATE Awareness Understanding BELIEVE & DO Acceptance Engagement Engaged employees significantly more likely to achieve desired outcomes 7 Why Engagement Matters! 38% higher customer satisfaction 22% higher productivity 27% higher profits Attitudes of U.S. Workforce 100 million employees Engaged Employees Main Source of Profit Increase Cost of Retaining Actively Disengaged = $300 billion 55% 26% ENGAGED 19% "FENCE SITTERS" ACTIVELY DISENGAGED Source: Gallup Organization 8 Effective Communication Builds Engagement, Achieves Outcomes Perform Stay Engagement Influence Recommend 9 Communication Framework to Drive Employee Engagement Performance effectiveness is maximized when all five information needs are successfully communicated HOW CAN I CONTRIBUTE/HELP? •Engagement •Actions •Results Source: Roger D’Aprix Organizational Individual 10 WHERE ARE WE GOING? •Strategic direction •Local •BU/group •Company WHAT’S MY JOB? •Job clarity (across roles/units/groups) •Aligned objectives •Skills development HOW ARE WE DOING? •Financial results •Market results •Operational results HOW AM I DOING? •Skills assessment •Performance review DOES ANYBODY CARE? •Reward & recognition •Total compensation •Career development •Affiliation/loyalty •Satisfaction Engagement Factors Impacted by Communication Effectiveness Effectiveness of Supervisor Open, two-way Communication Integrity/ Trust Communication Priority Understanding Business Strategy Attitude Toward Job, Company Teamwork & Collaboration Commitment// Personal Action Reward & Recognition Source: Padilla Speer Beardsley 11 Key Performance Metrics Driven by an Engaged Workforce Stay 12 Retention Affiliation Recruiting Internal job movements Performance ratings Employee satisfaction Perform Growth Profitability Productivity Service levels Quality Speed Innovation Customer satisfaction Influence Organization achievement and momentum – – – – – – – – Growth Profitability Productivity Service levels Quality Speed Innovation Customer satisfaction Recommend Prospective customers and partners Prospective employees Prospective investors Public opinion Effective Communication and Engaged Employees Accelerate Adoption 34.0% 34.0% 16.0% 13.5% 2.5% Innovator Early Adopter Early Majority Late Majority Laggard Source: Everett Rodgers 13 Application - Case Studies Case Study Disclaimers Learn from failures and successes Be careful about “trying this at home” #1: Culture Change #2: Critical Issues #3: Operational Efficiency 14 Case Study #1: Culture Change Outcomes (metrics): Financial services industry – Specialized segment Top 5 player, competing against industry heavyweight Initially family-owned, now led by new team of “outsiders” Strong employee ownership history Profitable on ongoing basis, led by diversification strategy Downsized operations Revenue growth (with future product mix) Profitability (re-allocate resources to new product lines) Employee sat, Customer sat (define new culture; adapt to change) Key Engagement Factors: Understanding Business Strategy Attitude Toward Job, Company 15 Empowerment/ Line of Sight Case Study #1: Culture Change Communication Strategies: Assess employee engagement factors on regular basis – – Ongoing counsel with senior leadership – – Determine degree of internal and external change, both in business operations and culture Identify and execute their leadership communication roles Dialogue-based teaching with employees and customers – – 16 Work with leadership development group participants to analyze and build roadmap Correlate (systemic) with customer satisfaction data “New” business strategy: What it is? Why this is our path now? Culture reset: What stays? What is new? How will we cross this bridge? Case Study #2: Critical Issues Goals (& metrics): Municipal service New $100 million-plus central library – – Recommended branch closings, subject to approval vote – 17 Improve efficiencies and cost-savings Approved by voter referendum in 2000 Maintain service quality (customer sat, quality) Move ahead with new central library, consolidate facilities and services (productivity, “profitability,” et al) Expand services (customer sat, recruiting/retention) Key Engagement Factors: Driven by loss of state-funded revenue “Save our library” vs. “Save our library system” New director with public policy background, no library background Organizational Trust Communication Priority Understanding of Business Strategy Case Study #2: Critical Issues Communication Strategies: Involved all employees in change process, with regular updates and input roles in the planning process – Extensive outreach to key external constituencies (patrons, elected officials, media), again involving employees – What services are most critical and beneficial Leverage the “fresh” perspective and public policy experience of new library director – – 18 Developed facilitated scenario planning (with employees and Library Board) Internally significant visibility, empathy, demonstrated ability Externally key spokesperson Case Study #3: Operational Efficiency Goals (& metrics): Food and beverage industry Top 10 player, competing against industry heavyweights Industry being globalized and consolidated Opportunity to improve efficiency, thereby making company stronger Ongoing focus of continuous improvement Decrease production costs (productivity, profitability) Improve quality and safety (customer sat, safety) Be a Top 5 player (market position) Key Engagement Factors: Communication Effectiveness of Supervisor Attitude Toward Job, Company Teamwork & Collaboration Reward & Recognition 19 Case Study #3: Operational Efficiency Communication Strategies: Messaging to be “simple, relevant and redundant” – – Develop influencing and teaching skills of key implementers and enablers – – To build process change, there’s need to drive behavior change Transfer lessons learned and success stories Build on culture of relationships and recognition – – 20 Build the “burning platform” and avoid “program of the month” language Reach (access and understanding) everyone in the organization Openly discuss setbacks; celebrate early wins Focus on pride and respect of workforce in contributing to significant organizational effort Summary Strengthen the value of employees (more first!) Discover (and act on) the prevalence of communication opportunities Focus on outcomes (not outputs!) Make consistency more important than “volume” Be genuine & real Courageously advocate for discomfort regarding communication “The basic problem with communication is the illusion it’s completed.”- George Bernard Shaw 21 Suggested Readings 22 “The Leadership Solution” (Jim Shaffer) Absolute Honesty (Larry Johnson, Bob Phillips) “Execution” (Larry Bossidy and Ram Charan) “Fish!” (Stephen Lundin, Harry Paul, John Christensen) Amusing Ourselves to Death (Neil Postman) You’re In Charge – Now What? (Thomas Neff, James Citrin) Questions? Thank you! 23