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
Alignment not just about excellent communications, but implies organisational change in many cases.
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.
Spencer fox employee alignment presentation
A new book from the Reputation InstituteDr. Cees B.M. van Riel, Co-founder & Vice Chairman Reputation Institute
Key Points Illustrated in THE ALIGNMENT FACTOR1. What is Alignment?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 upon3. Getting employees aligned and involved around strategy requires implementing four managerial efforts: Phase II: Phase I: Phase III: Phase IV: Revealing Know Before You Go Action Plan Tracking Progress Support & Resistance
Phase II: Phase III: Phase IV: Phase I:Building aligned Organisation Revealing Action Plan Tracking Progress Know Before You Go Support & Resistance Alignment with what? Tracking progress in supportive employee behavior Tracking progress in Hard wired and soft wired supportive employee initiatives Who needs to be behaviour aligned? Introducing KPIs targets Inventory of bottlenecks and opportunities in Communication support achieving aligned Desired behaviour? behaviour Linking Alignment KPI’s to performance Benefits employees? Increase performance Increase performance
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 versus Employee PerspectiveWhat does FedEx want couriers to do? What drives a courier?•What does the Access strategy mean for them? •I receive respect for what I am doing from my • Making every FedEx experience outstanding firm•How many packages a day? The purple promise •Customers love FedEx and that increases “I will make every FedEx experienceme too • 10 instead of 12 if you have to spent respect for outstanding” extra time justified by service •I have career opportunties within FedEx if I•What is acceptable when delivering extra service? encourage customer satisfaction • 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
Desired behaviour at a Utility company (example) A non-aligned mechanic: An aligned mechanic-Considers sustainability to be just -Believes in the Sustainability strategyanother catch phrase -Acknowledges that (s)he needs-Is not willing to take any extra training training to keep up-to-date with the-Continuous working based on latest technologies and ensuresdemanded output by his manager (e.g. his/her own future by doing sonumber of customer visits per day) -Explains sustainable energy to customers -Is motivated by customer satisfaction
Step 2: Revealing Support & Resistance In general…. employees will have three types of reactions towards a new strategy… 10% has a positive 20% has a negative 70% is indecisive whetherperception of the strategy, perception of the strategy, to support the strategy, they fully support the they will never support the they need to be persuaded strategy strategy
... however, you have to know who is in which group.So, measure the facts by using the RepTrak™ Alignment Monitor 11 - Intranet-based survey among a stratified sample in the firm. - Aimed at (1) revealing the degree of 22 employee support for the strategy. - Aimed at (2) showcasing what works and what doesn’t work regarding informing, motivating and capability development. 33
Aligned Behaviour can be expressed on a scale from 0 to 100. Firms scoring above 65 are already winners, while companies that score below 50 are in serious problems12
The alignment number is impacted by three communicationefforts: informing, motivating and capability development11 Are the strategy and/or core values sufficiently communicated by internal media? There should be consistency in the content of messages (themed messages). Are the strategy and/or core values sufficiently cascaded through all hierarchical layers? Core messages should be trickled down using hierarchical layers, e.g. through cascade meetings.22 Does management engage in dialogue about the strategy and/or the values? There should be explicit attention for cross-division dialogue. Are employees recognized for contributing to the strategy and/or living up to the values? The strategy should be integrated into individual appraisal & reward systems.33 Are employees provided with the right capabilities for contributing to the strategy and/or living up to the values? Employees should be empowered to do what they need to do.
Results Overall (an example) • Familiarity of the Business Priorities is high. • Alignment is highest for Increasing Sales, while employees are the least aligned to Individual Empowerment. • Media & Messaging and Recognition & Reward are both drivers that receive the lowest scores across all three Business Priorities. • Overall attitude is lowest towards Individual Empowerment. Increase sales Delivering Growth 2011 Trusted Trust Building Partner 2011 Empowerment Individual Empowerment 2011 Familiarity 95.8% Familiarity 86.6% Familiarity 90.6% Drivers of alignment Drivers of alignment Drivers of alignment Media & Messaging 49.9 Media & Messaging 42.2 Media & Messaging 39.7 Cascading 66.7 Cascading 55.9 Cascading 61.9 Dialogue 61.0 Dialogue 44.1 Dialogue 52.5 Capability Development 52.8 Capability Development 47.6 Capability Development 49.2 Recognition & Reward 43.2 Recognition & Reward 33.7 Recognition & Reward 38.0 Strategic alignment Strategic alignment Strategic alignment Aligned behavior Delivering growth 62.7 Aligned behavior Building Trust 58.2 Aligned behavior Individual 52.8 Empowerment Extra insights: Indicators alignment Extra insights: Indicators alignment Extra insights: Indicators alignment Attitude 62.5 Attitude 61.0 Attitude 53.1 Familiarity: Maintain (70) ≥ 70% of employees Room for improvement (50- ≤60% of employees 70) Immediate action (<50)Score differences ≥ 2.3 are significant at a 95% confidence level
………this tool will enable you to reveal support & resistanceat a nuanced level Are employees aligned Which employee groups are How can Philips improve How can Philips reach the with the major goals? aligned and which are not? alignment? employee groups? Goals Alignment Employee groups Focus of action Channels Low alignment Divisions: All low aligned Goal-specific dialogue except Corporate CenterVision 2010 Local manager Moderate awareness, Capability development understanding & attitude Job levels: All low aligned Division manager Divisions: Low aligned MS, Corporate media: IPS, Design, AT-I-PIC-R and Moderate alignment - Intranet division Other. Goal-specific dialogueBecoming - Intranet globalMarket-driven High awareness & - Town meetings Job levels: Low aligned at Capability development positive attitude - Internet Operation and at Professional/ Technical level
Step 3: ACTION PLANImplementing the right tools at the right moment Implementing Soft tools Implementing Hard tools Alignment Launching the Strategy Time
Step 3: Balancing hard and soft wired initiatives Assessing strategic options using the gathered intelligence Negotiation Confrontation Consulting Mirroring •Presentations and negotiations with Unions •Unavoidable exposure by internal messaging •Presentations and negotiations with Working •Using Corporate Ads to persuade internal Council(s) audiences •Allocating Coaches to key managers aimed at adjusting role behavior Consensus Power Play • Town Hall meetings •New organisational structures and decision making • Management Meetings procedures • Jam Sessions •Appointing new managers in key roles •Capability development in Internal Training Programmes •New appraisal rules
Step 3: Who does what? Sell their vision it to the rest of the Senior Management organisation Communication & HR Marketing Who does Internal communication Expose employees to external what? campaigns Accounting Information TechnologyUse reporting & appraisals format forcing Facilitate vertical andalignment horizontal communication
Step 4: Key Performance Indicators Introducing KPI’s using RepTrak™Alignment Monitor Examination of historical performance, using RepTrak Alignment Monitor over 1 two to three years (past) Extrapolating key drivers of Extrapolating KPI’s on aligned 2 alignment for next years (future) 3 behavior for the next years (future) KPIs INFORMING Realized Goal 2012 Goal 2013 Goal 2014 KPI EMPLOYEE ALIGNMENT 2012 2013 2014 2011 RealizedManager leads by example 55.3 56.9 58.5 60.0 Goal 2012 Goal 2013 Goal 2014 KPIs MOTIVATING 2011 Realized 2011 Goal 2012 Goal 2013 Goal 2014 Alignment 55.2 56.8 58.4 60.0Regular conversations manager 49.6 51.1 52.6 54.1 KPIs CAPABILITY DEVELOPMENT Realized 2012 2013 2014 Goal 2012 Goal 2013 Goal 2014 2011Sufficient authorization 51.3 52.9 54.5 56.1Sufficient recognition 55.3 56.9 58.5 60.1Sufficient rewarded 47.3 48.9 50.5 52.1
In summary 1. These projects are (mostly) led from internal comms/HR 2. Aligned employees increase performance substantially 3. The Alignment process provides ROI to your efforts – tied up to strategy. 4. Building and maintaining an aligned workforce requires a four step approach Phase II: Phase I: Phase III: Phase IV: Revealing Know Before You Go Action Plan Tracking Progress Support & Resistance