EEA Networking - Sue Oliver Katana Partners
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EEA Networking - Sue Oliver Katana Partners

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Sue Oliver, President of Katana Partners - presentation given at the EEA Networking Event June 2010 on employee engagement.

Sue Oliver, President of Katana Partners - presentation given at the EEA Networking Event June 2010 on employee engagement.

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  • Only 11–17% of employees are highly engaged An equal or greater number of employees are actively disengaged (10-20%) Disengagement costs are staggering U.K. — $64.8 billion/yr JAPAN — $232 billion/yr U.S. — $350 billion/yr
  • Only 11–17% of employees are highly engaged An equal or greater number of employees are actively disengaged (10-20%) Disengagement costs are staggering U.K. — $64.8 billion/yr JAPAN — $232 billion/yr U.S. — $350 billion/yr
  • Segments finds groups of employees who answer a questionnaires in highly similar ways. The technical way to describe that is birds of a feather flock together. They do it in email, the group together at lunch and they do it behind closed doors when decisions are made. And all of this interaction forms into groups – sort of like High School right? Take a look at the mean scores of these two groups. Same mean, different realities. But instead of two groups, we typically find five. Yes five. Two positive groups, a small middle group and two distinctly different negative groups. By the way, there are three types of Republicans, two segments of Independents and four segments of Democrats so, having five employee segments is very manageable So let’s meet them.
  • Segments Tell the Story... Building Blocks to Engagement All companies have attitude segments which form a workforce profile Employees’ attitudes or perspectives about their company/job determine their segment Employees’ attitudes affect their behavior and job performance Targeting improvement in segment profiles increases engagement and company performance
  • Segment profiles show percentage of employees and managers in each of the segments, ranging from most supportive to least supportive. Segment data shows percentage of “engaged” employees and managers within segments and extent above or below the engagement line. Segment data highlights key issues driving negative attitudes. Segment data provides a roadmap of engagement plan improvement opportunities.

EEA Networking - Sue Oliver Katana Partners EEA Networking - Sue Oliver Katana Partners Presentation Transcript

  • Enterprise Engagement Alliance Making Engagement Pay
  • Business Is Failing to Deliver
    • Costs of Disengagement are Staggering:
  • The Problem: Employees Aren’t Treated Like Customers
    • Perceptions of Employee Engagement
      • Not balance sheet opportunity
      • Analytical rigor not required
      • Not business critical
      • Not possible
      • Actions to increase engagement are ineffective or temporary
  • The Answer: Different Thinking and Focus
    • Treat employees like customers
    • Apply rigorous analytics to understanding employee perspectives
    • Elevate engagement to an enterprise-wide business strategy
    • Use employees as activators:
      • Drive customer loyalty and brand
      • Deliver on business strategies and ROI
  • Business Drivers for Engagement
    • American Airlines
      • History of difficult labor-management relations
      • Union organizing among agent workforce
      • Lack of data on workforce attitudes/issues
      • Highly competitive industry environment
    • Walmart
      • High turnover
      • Union campaigns
      • Customer experience
      • Associate experience
  • People’s Thinking is Shaped by their Perspective Understanding different perspectives is key to understanding Engagement Drivers and your Workforce Profile
  • An Effective Engagement Strategy Requires “Perspective”
    • Segments Tell the Story...
      • Building Blocks to Engagement
        • All companies have attitude segments which form a workforce profile
        • Employees’ attitudes or perspectives about their company/job determine their segment
        • Employees’ attitudes affect their behavior and job performance
        • Targeting improvement in segment profiles increases engagement and company performance
  • A New Way of Understanding People Typical Segments
    • Positive segments typically perform better on financial, customer and operational criteria
    • Negative segments typically have costly behaviors, turnover, “abusive” sick days, absenteeism, low productivity, high shrinkage, low quality products, etc.
    • Segment Profiles reflect your internal brand, how employees perceive they are treated. Negative segments typically will not deliver your external brand promise to customers.
    Why Segment Data is Important…
  • Delivering Employee ROI is a Systematic, Continuous Improvement Process Employee ROI Analyze employee attitudes and behavior patterns Identify segments and performance improvement strategies Execute strategies to increase engagement and performance Calculate goal potential from performance improvements
  • Analytics to Action - Strategy
    • Executive leadership
      • Set engagement strategy as part of enterprise-wide business plan
      • Base the engagement strategy on a 3-yr horizon
      • Provide variations based on key group segment and issues data
      • Collaborate with HR, Finance, Marketing and Communications
        • Set measurable performance improvement goals
        • Create coordinated external and internal communications campaigns
        • Address people leadership skills of management
  • Analytics to Action - Tactics
    • Management Team – 9 Steps to Success
      • Set and execute performance improvement plans
      • Intervene in high risk groups
      • Leverage issues driving negative/positive attitudes
      • Manage performance
      • Ensure communication tools are available
      • Structure management schedules to enable access
      • Use involvement to develop solutions
      • Communicate successes
      • Measure progress and set new goals
  • The Answer Is … Improving Segment Profiles to Drive Performance Savings : Several million annually in less sick days used. CHEERLEADERS CASUAL FANS NAYSAYERS TUNED OUT
  • The Answer Is … Creating Strategies to Shift Attitude Segments Over a 3 year horizon, segment profile improvements raised engagement levels 19% and provided benchmark advance to high performing company ranking. Engagement % Increase
  • Lessons Learned
    • Workforce analytics were a critical success factor
      • Increased executive leadership appreciation for diversity of workgroup attitudes and values
      • Improved issue resolution
      • Created a focus on open communications and people leadership skills
      • Fostered a partnership among HR, Finance, Communications and Marketing
      • Enabled success in organizing campaigns
      • Improved productivity
      • Enhanced working relationships
  • Ongoing Challenges
    • Alignment of priorities among HR, Finance, Communications and Marketing
    • Ensuring structures, processes and systems reinforce new behaviors
    • Positive role modeling
    • Skills and competencies to behave in the new way
  • Enterprise Engagement and ROI…the Ultimate End Goal