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Engaging Employees
Impacting Employees to Stay, Perform, Influence and
Recommend
Kelly Groehler, APR
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“Who’s Line Is It Anyway?”
“If you are going to treat customers first, you must treat employees more first.”
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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
4
Learning Objectives
Strengthen the value of employees
Discover the prevalence of communication opportunities
Understand how effective communication strategies build engagement and achieve outcomes
5
Today’s Environment Presents Significant Challenges…
Performance-driven everything… “what have you done for me today?”– Relentless pressure for profitable results
RIFs Higher compliance costs Escalating health care costs
– Performance-based environments and systems (e.g. compensation) Increasingly intense competition
– Products & services– Talent– Investment capital
Battered institutional trust, credibility and reputation Ultra access to information (or misinformation)
– Everybody is a communicator– Altered lifestyles– Intense mind-share competition
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1. Inadequate information-sharing2. Poor/conflicting measurement3. Inconsistent operating goals4. Organizational culture5. Resistance to change - lack of trust6. Poor alliance management practices7. Lack of supply chain vision/understanding8. Lack of managerial commitment9. Constrained resources10. No employee passion/empowerment
“Achieving World-Class Supply Chain Alignment”Center for Advanced Purchasing Studies
“Top 10 Barriers to Effective Supply Chain Management”
…In Which Communication Opportunities Are Prevalent
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Effective Communication Builds Engagement, Achieves Outcomes
Engaged employees significantlymore likely to achieve desired outcomes
Engaged employees significantlymore likely to achieve desired outcomes
INFORM & EDUCATE BELIEVE & DO
AwarenessAwareness UnderstandingUnderstanding AcceptanceAcceptance EngagementEngagement
8
Why Engagement Matters!
38% higher customer satisfaction
22% higher productivity
27% higher profits
26%
55%
19%
ENGAGED "FENCE SITTERS" ACTIVELYDISENGAGED
Engaged EmployeesMain Sourceof Profit Increase
Cost of RetainingActively Disengaged= $300 billion
Attitudes of U.S. Workforce100 million employees
Source: Gallup Organization
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Engagement
Perform
Influence
Recommend
Stay
Effective Communication Builds Engagement, Achieves Outcomes
10
Communication Framework to Drive Employee Engagement
•Job clarity (across roles/units/groups)•Aligned objectives•Skills development
HOW AM I DOING?•Skills assessment•Performance review
DOES ANYBODY CARE?•Reward & recognition•Total compensation•Career development•Affiliation/loyalty•Satisfaction
WHAT’S MY JOB?
Individual
WHERE ARE WE GOING?•Strategic direction
•Local•BU/group•Company
HOW ARE WE DOING?•Financial results•Market results•Operational results
Organizational
HOW CAN I CONTRIBUTE/HELP?•Engagement•Actions•Results
Performance effectiveness ismaximized when all five information needs are successfully communicatedSource: Roger D’Aprix
11
Engagement Factors Impacted by Communication Effectiveness
UnderstandingBusinessStrategy
Open, two-wayCommunication
Effectiveness ofSupervisor
CommunicationPriority
AttitudeToward
Job, Company
Commitment//Personal Action
Reward &Recognition
Integrity/Trust
Teamwork & Collaboration
Source: Padilla Speer Beardsley
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Key Performance Metrics Driven by an Engaged Workforce
Retention Affiliation Recruiting Internal job
movements Performance
ratings Employee
satisfaction
PerformPerformStayStay InfluenceInfluence RecommendRecommend
Growth Profitability Productivity Service levels Quality Speed Innovation Customer
satisfaction
Organization achievement and momentum
– Growth– Profitability– Productivity– Service levels– Quality– Speed– Innovation– Customer
satisfaction
Prospective customers and partners
Prospective employees
Prospective investors
Public opinion
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2.5%
13.5%
34.0% 34.0%
16.0%
Innovator EarlyAdopter
EarlyMajority
LateMajority
Laggard
Source: Everett Rodgers
Effective Communication and Engaged Employees Accelerate Adoption
14
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
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Case Study #1: Culture Change
Outcomes (metrics): 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:
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 Understanding
BusinessStrategy
AttitudeToward
Job, Company
Empowerment/Line of Sight
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Case Study #1: Culture Change
Communication Strategies: Assess employee engagement factors on regular basis
– Work with leadership development group participants to analyze and build roadmap
– Correlate (systemic) with customer satisfaction data 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
– “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?
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Case Study #2: Critical Issues
Goals (& metrics): 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:
Municipal service New $100 million-plus central library
– Improve efficiencies and cost-savings– Approved by voter referendum in 2000
Recommended branch closings, subject to approval vote
– Driven by loss of state-funded revenue “Save our library” vs. “Save our library
system” New director with public policy background,
no library backgroundOrganizational
Trust
CommunicationPriority
Understanding ofBusiness Strategy
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Case Study #2: Critical Issues
Communication Strategies: Involved all employees in change process, with regular updates and
input roles in the planning process– Developed facilitated scenario planning (with employees and Library
Board) 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
– Internally significant visibility, empathy, demonstrated ability– Externally key spokesperson
19
Case Study #3: Operational Efficiency
Goals (& metrics): Decrease production costs
(productivity, profitability) Improve quality and safety
(customer sat, safety) Be a Top 5 player (market position)
Key Engagement Factors:
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
Communication Effectiveness of
Supervisor
AttitudeToward
Job, Company
Teamwork &Collaboration
Reward &Recognition
20
Case Study #3: Operational Efficiency
Communication Strategies: Messaging to be “simple, relevant and redundant”
– Build the “burning platform” and avoid “program of the month” language– Reach (access and understanding) everyone in the organization
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– Openly discuss setbacks; celebrate early wins– Focus on pride and respect of workforce in contributing to significant
organizational effort
21
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
“The basic problem with communication is the illusion it’s completed.”- George Bernard Shaw
22
Suggested Readings
“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)