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MANAGING EMPLOYEE ENGAGEMENT DURING MAJOR ORGANIZATIONAL CHANGE Monthly Webinar Series September 24, 2015

Managing Employee Engagement through Organizational Change

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Page 1: Managing Employee Engagement through Organizational Change

MANAGING EMPLOYEE ENGAGEMENT DURING MAJOR ORGANIZATIONAL CHANGE

Monthly Webinar Series

September 24, 2015

Page 2: Managing Employee Engagement through Organizational Change

2Topic Agenda

Item Time (min)

Introduction/Why the Topic? 5

What Happens to Engagement During (poorly managed) Organizational Change?

10

Why do so few get it right? 10

Some Key Success Factors 10

Q&A 5

Norm Baillie-David SVP Engagement - TalentMap

Monica HelgothVP Engagement - Western Region

Agenda

Page 3: Managing Employee Engagement through Organizational Change

3

15 years in business7,000+ employee engagement surveys since inception1,000,000+ employees surveyed500+ employee engagement surveys annually

Only 1 Focus

TalentMap by the Numbers

Page 4: Managing Employee Engagement through Organizational Change

4Sample Clients & Benchmark

Award Programs Technology & Engineering Not-for-Profit & Association

Financial Services

Health Sciences

Other

Page 5: Managing Employee Engagement through Organizational Change

Why the Topic?

Page 6: Managing Employee Engagement through Organizational Change

“You know, I need to give you some context here. We’re probably a different case, because we (insert one of these)

• have just gone through• are going through• are going to go through

a significant (insert here):• Restructuring• Transformation• Change

So, we’re probably (insert one):• Not like your other clients• Different• A special case

and engagement will be a challenge” (or something like it)

A Typical TalentMap Client

My Favorite Client Quote:

6

Page 7: Managing Employee Engagement through Organizational Change

7

Page 8: Managing Employee Engagement through Organizational Change

What Happens to Engagement During (poorly managed) Organizational Change?

Page 9: Managing Employee Engagement through Organizational Change

ENGAGEMENT SCORES GO DOWN, OF COURSE! 9

+/- CLIENT2013*

+/- TM Benchmark

Data is rounded to the nearest whole number

* Number indicates % Favourable score

-12 -9

+2 -7

-12 -23

+1 -4

+2 -4

+1 -6

-4 -14

Overall Engagement

I am proud to tell others I work for my organization.

I am optimistic about the future of my organization.

My organization inspires me to do my best work.

I would recommend my organization to a friend as a great place to work.

My job provides me with a sense of personal accomplishment.

I can see a clear link between my work and my organization's long-term objectives.

0% 20% 40% 60% 80% 100%

16

10

22

13

15

13

21

25

19

30

25

23

21

32

60

72

48

62

63

66

48

Unfavourable Neutral Favourable

% Frequency

Note: I am optimistic about the future of my organization is compared to the 2013 statement I am hopeful about the future of my organization

Engagement sinks, and is often below benchmark/average

Page 10: Managing Employee Engagement through Organizational Change

ENGAGEMENT SCORES GO DOWN, OF COURSE! 10

+/- CLIENT2013*

+/- TM Benchmark

Data is rounded to the nearest whole number

* Number indicates % Favourable score

-12 -9

+2 -7

-12 -23

+1 -4

+2 -4

+1 -6

-4 -14

Overall Engagement

I am proud to tell others I work for my organization.

I am optimistic about the future of my organization.

My organization inspires me to do my best work.

I would recommend my organization to a friend as a great place to work.

My job provides me with a sense of personal accomplishment.

I can see a clear link between my work and my organization's long-term objectives.

0% 20% 40% 60% 80% 100%

16

10

22

13

15

13

21

25

19

30

25

23

21

32

60

72

48

62

63

66

48

Unfavourable Neutral Favourable

% Frequency

Note: I am optimistic about the future of my organization is compared to the 2013 statement I am hopeful about the future of my organization

Optimism in the future decreases dramatically

Page 11: Managing Employee Engagement through Organizational Change

ENGAGEMENT SCORES GO DOWN, OF COURSE! 11

+/- CLIENT2013*

+/- TM Benchmark

Data is rounded to the nearest whole number

* Number indicates % Favourable score

-12 -9

+2 -7

-12 -23

+1 -4

+2 -4

+1 -6

-4 -14

Overall Engagement

I am proud to tell others I work for my organization.

I am optimistic about the future of my organization.

My organization inspires me to do my best work.

I would recommend my organization to a friend as a great place to work.

My job provides me with a sense of personal accomplishment.

I can see a clear link between my work and my organization's long-term objectives.

0% 20% 40% 60% 80% 100%

16

10

22

13

15

13

21

25

19

30

25

23

21

32

60

72

48

62

63

66

48

Unfavourable Neutral Favourable

% Frequency

Note: I am optimistic about the future of my organization is compared to the 2013 statement I am hopeful about the future of my organization

Most of all, employees lose their “sense of place”, because they don’t know what the change will bring. UNCERTAINTY!

Page 12: Managing Employee Engagement through Organizational Change

12

CLIENT 2013

CLIENT 2015

Benchmark

0% 20% 40% 60% 80% 100%

39%

48%

24%

% Frequency

Are you looking for or thinking of accepting a job with another employer (% Yes)?

(THREAT OF ) ATTRITION CAN REACH DANGEROUS LEVELS

!

Page 13: Managing Employee Engagement through Organizational Change

MANAGING THE CHANGE ITSELF DRIVES ENGAGEMENT

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Hypothesized Drivers

CompensationWork Environment

Performance FeedbackProfessional GrowthWork/Life Balance

Information and Communication

TeamworkInnovation

Customer FocusImmediate Manager

Senior Leadership

Canadian Leadership Team

Organizational Vision

Change Management

Diversity

#2 Change Management

Change Management

#1 Professional Growth

Professional Growth

#3 Organizational Vision

Diversity

EmployeeEngagementMultiple

Linear Regression

Previous period drivers highlighted in grey.

Page 14: Managing Employee Engagement through Organizational Change

Why do so few get it right?

14

Page 15: Managing Employee Engagement through Organizational Change

+/- CLIENT Canada2012*

+/- TM Benchmark

Overall Change Management

I understand why change is needed at the CLIENT.

I am convinced the change we are undergoing at the CLIENT is necessary to achieve the desired goals.

I am confident that the CLIENT can execute change successfully to achieve the desired goals.

I feel motivated to adapt the way I work to support change in the CLIENT.

I am provided with the coaching, tools and training necessary to meet the requirements of change.

0% 20% 40% 60% 80% 100%

12

3

11

14

8

25

22

9

20

31

19

33

65

88

69

55

73

42

Unfavourable Neutral Favourable

% Frequency

Data is rounded to the nearest whole number

* Number indicates % Favourable score

-13 n/a

-4 n/a

-16 n/a

-20 n/a

-11 n/a

-13 n/a

Change Management (Key Driver #2) 15

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The “Inside” Perspective “Recognizing that we all cannot be privy to all decisions, I would like to feel

that change is not always something I have to accept, but rather something I can also input to.”

“Communicate change and reasons for change well before the change is made. For example - dissolving field services without telling area offices.”

“Opportunity to have training and coaching one particular areas once the implementation plans are communicate and we have a better sense of our upcoming role.”

“There needs to be some clear direction on where the company is going so that I can better understand my place in it.”

“With two layoffs in 2014, it's hard to trust in the senior leadership. Even if the top people have changed, a lot of the upper management is still the same, and these are the people who got us into the current non-profitable state that we find ourselves in.”

Page 17: Managing Employee Engagement through Organizational Change

Unwilling to “lose face” by communicating uncertainty (i.e. not knowing all the answers).

• Result: if we can’t say everything, say nothing.

Thrill of being “in the know” Fear of the rumour mill

Many execs assume that the reasons for change are self-evident, so they focus communications on what is changing, as opposed to “why it’s changing”.

Most Execs/Leadership Teams Manage Change through Secrecy

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Page 18: Managing Employee Engagement through Organizational Change

Unfortunately, we don’t see enough Bill Richardsons

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Page 19: Managing Employee Engagement through Organizational Change

Do you or your leaders: spend more time in

meetings with each other than with their teams?

tend to be less and less visible or accessible?

avoid answering questions about impending restructuring, layoffs, strategy shifts, or worse, use talking points?

Get a “thrill” by being “ in the know”?

The “Boardroom Bunker”

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The most common reasons for lower engagement during change are: Employees don’t understand the reasons for the

change (burning platform) Employees don’t understand the “end state”, i.e.

what will we look like after the change. Employees haven’t had/don’t have the opportunity

to influence the change, especially with regards to their expertise.

Leaders are less visible and less communicative precisely when employees crave communications the most.

In a phrase: Uncertainty kills engagement.

In Summary

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Page 21: Managing Employee Engagement through Organizational Change

Some Key Success Factors

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The Burning Platform: An extremely urgent or compelling business case to convey, in the strongest terms, the need for change

CLEARLY COMMUNICATE THE “BURNING PLATFORM” – THE “WHY”

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Page 23: Managing Employee Engagement through Organizational Change

Diversity

Immediate Manager

Work Environment

Organizational Vision

Senior Leadership (in your province)

Performance Feedback

Professional Growth

Teamwork

Change Management

Donor Focus

Innovation

Canadian Leadership Team

Work/Life Balance

Information and Communication

Compensation

0% 20% 40% 60% 80% 100%

68131012151516

12161616

313030

1110

1218

21171820

22222327

202122

8381

75726868676665626157

504948

Unfavourable Neutral Favourable

% Frequency

23

+2 n/a2 8-4 -21 12-5 +81 7-1 -2-2 9

-13 n/a6 -3-5 -4-11 -3-4 -6-9 -1-4 -5

Data is rounded to the nearest whole number

* Number indicates % Favourable score+/- CLIENT

Canada2012*

+/- TM Benchmark

Overall scores include standard TalentMap questions only.

MIDDLE MANAGERS ARE YOUR “ACE IN THE HOLE”

Get them onboard!Include them early!Get their input, especially on how to manage change in their areas!Most of all, BE TRANSPARENT with them

Page 24: Managing Employee Engagement through Organizational Change

“Employees watch their supervisors intently, skeptical of management’s commitment to change”

Middle managers operationalize change, while managing employees’ emotions (e.g. anxiety, defensiveness)

Grounded Change Model During of Organizational Schema EmpowermentG Labianca, B Gray, DJ BrassOrganization 11 (2), 235-257

RESEARCH SHOWS MIDDLE MANAGERS ARE THE KEY!

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Page 25: Managing Employee Engagement through Organizational Change

Employees need a clear picture of the desired, or end, state.

“What will we look like after the change?”

• It’s fiction. There is no “after” the change.

• It’s aspirational. Like the brass ring – we strive for but never will attain. But we strive anyway!

CLEARLY ARTICULATE AND RE-COMMUNICATE THE “END-STATE”

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Page 26: Managing Employee Engagement through Organizational Change

Leaders’ role: • Evangelize the change • Demonstrate, by walking the talk.• Be the first to live with the temporary

inconvenience• Share the vulnerability.• Include subordinates in continuous

improvement. Managers’ role:

• Operationalize.• Problem-solve.• Share the vulnerability (up and down)• Include subordinates in continuous

improvement.

LEADERS: GET OUT OF THE BUNKER!

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Employees’ role:• Embrace the idea, but question the modality.• Share ideas for continuous improvement• Have an open mind.• Don’t expect all the answers.

Page 27: Managing Employee Engagement through Organizational Change

Event Format Topic DateOMAA – Ontario Municipal Administrators’ Association, Kitchener

Conference Emerging Practices: The Economic Development Transformation

October 14

HR Technology Conference, Las Vegas

Conference The World’s Biggest and Best Conference on HR technology for HR Executives

October 18-21

People Analytics Canada Conference Drive People and Organizational Performance with HR Analytics

October 27-28

TalentMap Monthly Webinar Series

Live Webinar How To Improve Engagement Through Better Teamwork (and It’s Not Through “Team-building” Exercises)

October 29

Top Employer Summit, Toronto

Conference Canada’s Top 100 Employers with keynote speaker Bill Clinton

November 16-17

UPCOMING TALENTMAP LEARNING SESSIONS

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THANK YOU!QUESTIONS AND DISCUSSION

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Monica HelgothVP Engagement – TalentMap [email protected], x515

Norm Baillie-DavidSVP [email protected], x504