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The Alignment Factor, Leveraging Total Stakeholder
Support, Routlege, 2012
Prof.dr Cees B.M. van Riel RSM/Erasmus University Rotterdam
Alignment:
“A mutual rewarding relationship between a company
and its key stakeholders, which enables the firm to
meet its objectives and realize its purpose.”
This book focuses on internal and external alignment
Key Points Illustrated in THE ALIGNMENT FACTOR
• 1 Alignment is the process of building and maintaining a mutually rewarding
relationship (MRR) with stakeholders, resulting in a better reputation as a stepping stone
in increasing (financial) performance: 10% increase in employee alignment, evokes, 2%
higher financial performance!
• 2 This implies a shift in attitude for most companies, respecting the necessity to balance
its own interests with the demands of stakeholders that they depend upon
• 3 Getting employees aligned and involved around strategy implies implementing four
managerial efforts:
• Gather relevant intelligence before launching the strategy
• Reveal support and/or resistance among key stakeholders
• Implement the strategy by balancing hard and soft wired intitiatives, incl. communications
• Track progress by KPI’s assessing progress in building MRR with key stakeholders
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan
Phase IV:
Tracking Progress
Alignment with what?
Who needs to be aligned?
Desired behavior?
Benefits employees?
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan
Tracking progress in
supportive employee
behavior
Inventory of bottlenecks
and opportunities in
achieving aligned
behavior
Phase IV:
Tracking Progress
Tracking progress in
supportive employee
behavior
Introducing KPIs targets
Increase performance
Bu
ildin
g
alig
ned
Org
an
iza
tio
n
Linking Alignment KPI’s to
performance
Hard wired and soft wired
initiatives
Communication support
Alignment with what?
• What is the core of the corporate strategy?
• Which four building blocks matter most?
• For Telefonica this implies:
Who needs to be aligned?
• Who has to be aligned first? Everybody? Only the Top? One division
specifically?
• To be determined based on nature business problem: which employees
matter most in solving the business challenge?
What is the desired behavior?
Firm Perspective and Employee Perspective
The purple promise
“I will make every FedEx experience outstanding”
What does FedEx want couriers to do? • What does the Access strategy mean for them?
• Making every FedEx experience outstanding
• How many packages a day?
• 10 instead of 12 if you have to spent
extra time justified by service
• What is acceptable when delivering extra service?
• Explaining mistakes, solving problems caused
by the firm, etc.
• What is not acceptable?
• Reducing the amount of deliveries and still
not providing added value in service
What drives a courier?
• I receive respect for what I am doing
from my firm
• Customers love FedEx and that
increases respect for me too
• I have career opportunties within
FedEx if I encourage customer
satisfaction
Desired behavior at a Utility company?
A non-aligned mechanic:
- Considers sustainability to be just
another catch phrase
- Is not willing to take any extra
training
- Continuous working based on
demanded output by his manager
(e.g. number of customer visits per
day)
An aligned mechanic
- Believes in the Sustainability
strategy
- Acknowledges that (s)he needs
training to keep up-to-date with the
latest technologies and ensures
his/her own future by doing so
- Explains sustainable energy to
customers
- Is motivated by customer
satisfaction
• What are employees supposed to do? Be specific as a firm.
• Plus, do take into consideration what will be beneficial for the employee.
• The more you stress the added value of the new strategy for the
employee in internal messaging, the more aligned they will be.
Step 1: Know Before You Go
Alignment with what?
Alignment with whom?
How to assess desired
behavior?
20% has a negative
perception of the strategy,
they will never support the
strategy
10% has a positive
perception of the strategy,
they fully support the
strategy
70% is indecisive whether
to support the strategy,
they need to be persuaded
Step 2 Revealing Support & Resistance
In general…. employees will show three types of
reactions towards a new strategy….
….. however, you have to know who is in which group?
So, measure the facts by using the RepTrak™ Alignment Monitor
- Intranet-based survey among a
stratified sample in the firm.
- Aimed at (1) revealing the degree of
employee support for the strategy.
- Aimed at (2) showcasing what works
and what doesn’t work regarding
informing, motivating and capability
development.
1
2
3
Time
Alig
nm
ent
Launching the
Strategy
Implementing
Hard tools
Implementing
Soft tools
Step 3: ACTION PLAN Implementing the right tools at the right moment
Assessing strategic options using the gathered intelligence
Negotiation Confrontation
Consulting
• Presentations and negotiations with Unions
• Presentations and negotiations with Working
Council(s)
Mirroring
• Unavoidable exposure by internal messaging
• Using Corporate Adds to persuade internal
audiences
• Allocating Coaches to key managers aimed at
adjusting role behavior
Consensus
• Town Hall meetings
• Management Meetings
• Jam Sessions
Power Play
• New organizational structures and decision
making procedures
• Appointing new managers in key roles
• Capability development in Internal Training
Programs
• New appraisal rules
Step 3: Balancing hard and soft wired initiatives
Step 3: Who does what?
Top Management
Sell their vision it to the rest of the
organization
Marketing
Expose employees to external
campaigns
Communication & HR
Internal communication Who does
what?
Facilitate vertical and
horizontal communication
Information Technology
Use reporting & appraisals format forcing
alignment
Accounting
Examination of historical performance,
using RepTrak Alignment Monitor over
two to three years (past)
1
2 3
2012 2013 2014
2012 2013 2014
Extrapolating KPI’s on aligned
behavior for the next years (future) Extrapolating key drivers of
alignment for next years (future)
Realized
2011Goal 2012 Goal 2013 Goal 2014
Manager leads by example 55.3 56.9 58.5 60.0
Realized
2011Goal 2012 Goal 2013 Goal 2014
Regular conversations manager 49.6 51.1 52.6 54.1
Realized
2011Goal 2012 Goal 2013 Goal 2014
Sufficient authorization 51.3 52.9 54.5 56.1
Sufficient recognition 55.3 56.9 58.5 60.1
Sufficient rewarded 47.3 48.9 50.5 52.1
KPIs INFORMING
KPIs CAPABILITY DEVELOPMENT
KPIs MOTIVATING
Realized
2011Goal 2012 Goal 2013 Goal 2014
Alignment 55.2 56.8 58.4 60.0
KPI EMPLOYEE ALIGNMENT
Step 4: Key Performance Indicators
Introducing KPI’s using RepTrak™Alignment Monitor
Wrap up
• Aligned employees increase performance substantially
• Building and maintaining an aligned workforce requires a four
step approach:
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan Phase IV:
Tracking Progress