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Interaction Associates' Research Study on Trust in Business yields powerful insights about the link between trust, collaboration, and leadership --- and strong financial results.

Interaction Associates' Research Study on Trust in Business yields powerful insights about the link between trust, collaboration, and leadership --- and strong financial results.

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Trust in business 2012 webcast slides final Presentation Transcript

  • 1. Building Trustin Business How Organizational Trust Impacts Performance
  • 2. Today’s Featured GuestsLinda Stewart Andy Atkins President & CEO Chief Innovation OfficerInteraction Associates Interaction Associates @InteractionAsc Need assistance? Call Member Services (866) 538-1909 or email support@hci.org
  • 3. Why “Trust?” © Interaction Associates Inc. 3
  • 4. Poll Question Does your organization measure employee engagement now? 1. Yes 2. No 3. Don’t know © Interaction Associates Inc. 4
  • 5. Poll Question Are you satisfied with the engagement survey results you are getting? 1. Yes 2. No 3. Don’t know © Interaction Associates Inc. 5
  • 6. 2009-2011Survey Context © Interaction Associates Inc. 6
  • 7. 7
  • 8. 3.53.4 Collaboration Leadership3.3 Trust3.23.1 32.92.82.72.62.5 2009 2010 2011 8
  • 9. • Leaders got tactical• No peer-peer trust 9
  • 10. • Lack of leader transparency• Peer-peer trust improves 10
  • 11. TARGETTEST TALENT TRUST 11
  • 12. Poll QuestionWhat are the primary foundations fortrusting others in your organization?1. Past experience with the individual (TEST).2. Observation of capability and performance (TALENT).3. Shared purpose and goals (TARGET). © Interaction Associates Inc. 12
  • 13. Poll Question What of these describes the level of Trust in your organization? 1. Complete lack of trust. 2. More mistrust than trust. 3. Equal levels of trust and mistrust. 4. Fairly strong trust; little mistrust. 5. Extremely strong levels of trust. © Interaction Associates Inc. 13
  • 14. 2012 Trust in Business Survey © Interaction Associates Inc. 14
  • 15. Survey Objectives Most/Least important company goals or priorities Effectiveness achieving business outcomes Financial indicators Leadership, trust-building, and collaborative behaviors Level of trust What is the organization’s “culture” Environment for collaboration Bases of trust Factors contributing to collaborative effort failures 15
  • 16. 2012 Survey Respondents © Interaction Associates Inc. 16
  • 17. Number Employed in Industry Functional Area Organization Business Professional Services 16%Less than 1,000 39% Financial services/Real 12%1,000 - 4,999 21% estate/Insurance Healthcare 12%5,000 - 19,999 21% Public sector/Nonprofit 12%20,000 or more 18% Auto/Industrial/ Manufacturing 6%Dont know 1% Chemical/Energy/Utilities 6% Annual Gross Sales or Hardware/Software/Networking 5% Revenue Title Aerospace/Defense 3%$100 million or less 30% Other 28%$101 million - $4.9 billion 33%$5 billion - $14.9 billion 10%$15 billion or higher 13%Don’t know 14% © Interaction Associates Inc. 17
  • 18. 2012 Survey Conclusions © Interaction Associates Inc. 18
  • 19. Shift in Business Priorities © Interaction Associates Inc. 19
  • 20. Most Important Goals or Priorities Q1. TOP 10 BUSINESS GOALS OR PRIORITIES 2012 2009Top line/revenue growth 42% Cost reduction/becoming more efficient 46%Profit growth 38% Customer loyalty and retention 31%Improvements to productivity and Improvements to productivity and 29% 27%efficiency efficiencyCustomer loyalty and retention 26% Top line/revenue growth 27%Business agility (speed, flexibility, 26% Consistent execution of strategy 23%adaptability to change) Business agility (speed, flexibility,Cost reduction/becoming more efficient 24% 22% adaptability to change)Attraction, deployment and development 23% Competitive market position 22%of talentConsistent execution of strategy 19% Profit growth 21%Innovation, creativity and 17% Predictable business/financial results 17%entrepreneurshipExhibiting organizational behavior that is Innovation, creativity and 13% 15%consistent with company values/ethics entrepreneurship © Interaction Associates Inc. 20
  • 21. RESULTS 1. Top Line Revenue Growth 2. Profit Growth Dimensions of Success PROCESS RELATIONSHIP3. Improvements toproductivity andefficiency © Interaction Associates Inc. 21
  • 22. Retention & Attraction of talentis a priority for high-performing companies. © Interaction Associates Inc. 22
  • 23. Most Important Goals or Priorities Q1. TOP 10 BUSINESS GOALS OR PRIORITIES 2012 2009Top line/revenue growth 42% Cost reduction/becoming more efficient 46%Profit growth 38% Customer loyalty and retention 31%Improvements to productivity and Improvements to productivity and 29% 27%efficiency efficiencyCustomer loyalty and retention 26% Top line/revenue growth 27%Business agility (speed, flexibility, 26% Consistent execution of strategy 23%adaptability to change) Business agility (speed, flexibility,Cost reduction/becoming more efficient 24% 22% adaptability to change)Attraction, deployment and development 23% Competitive market position 22%of talentConsistent execution of strategy 19% Profit growth 21%Innovation, creativity and 17% Predictable business/financial results 17%entrepreneurshipExhibiting organizational behavior that is Innovation, creativity and 13% 15%consistent with company values/ethics entrepreneurship © Interaction Associates Inc. 23
  • 24. High Performing Companies © Interaction Associates Inc. 24
  • 25. High Performing Company Profile"High Performing Organizations" had robust REVENUE growth. Growth Rate of Revenue Among High "High Performing Performing Organizations Organizations" areMore than 10% above last year 48% organizations whose5-10% above last year 35% net profit grew moreUp to 5% above last year 13% than 5% over theFlat (unchanged from last year) 3% last year.Negative (below last year) 1%Revenue and Profit Growth was above target for many High Performing Organizations Revenue Growth Rate Net ProfitAbove target 49% 54%On target 40% 38%Below target 11% 8% © Interaction Associates Inc. 25
  • 26. Low Performing Companies © Interaction Associates Inc. 26
  • 27. Low Performing Company Profile“Low Performing Organizations" had stagnant REVENUE growth. Growth Rate of Revenue Among High Performing Organizations “Low PerformingMore than 10% above last year 3% Organizations" are5-10% above last year 9% organizations whose net profit shrank orUp to 5% above last year 34% grew less than 5%Flat (unchanged from last year) 31% over the last year.Negative (below last year) 23%Revenue and Profit Growth was below target for many Low Performing Organizations Revenue Growth Rate Net ProfitAbove target 13% 10%On target 43% 45%Below target 44% 45% © Interaction Associates Inc. 27
  • 28. High Performing Orgs vs. Low Performing Orgs High PG Low/No PG GapQ3_4 Customer loyalty and retention 66% 50% 16%Q3_8 Competitive market position 59% 34% 25%Q3_1 Top line/revenue growth 59% 28% 31%Q3_2 Profit growth 57% 21% 36%Q3_10 Predictable business/financial results 48% 34% 14% © Interaction Associates Inc. 28
  • 29. High Performing Orgs vs. Low Performing Orgs COLLABORATION • Being better practitioners of “people” or so- called “soft” skills is the key differentiator for High-Performing Orgs. • These organizations have more of a shared responsibility environment, and employees say they have the skills needed to collaborate successfully. • Employees in High-Performing Orgs are open to ideas of others. 29
  • 30. High Performing Orgs vs. Low Performing Orgs LEADERSHIP • Leaders in High Performing Orgs are realistically optimistic and confident about the future. • Leaders have specific and measurable goals linked to the organization’s strategy. • Leaders effectively communicate the mission, vision and strategy of the organization 30
  • 31. High Performing Orgs vs. Low Performing Orgs TRUST • People feel safe communicating ideas and opinions • People within the organization have a sense of shared commitment and responsibility • Individuals are not assigned "impossible" tasks that are outside the scope of their knowledge/training • Everyone is treated fairly, regardless of position or rank 31
  • 32. Organizational Cultural ContinuumQ11. Which of the following statements best describes your organization? 15% of HPO Employees are Involved; 25% are Engaged 70% of LPO Employees are Disengaged or merely Satisfied Disengaged Involved Our employees view Our employees are Our employees are In addition to being highly their jobs as a means satisfied with the highly engaged and engaged, our employees are actively involved and to a paycheck; if company; they see it are committed to their share responsibility for the another opportunity as a good place to profession and jobs; organization’s success; came along, they work. Few would be employees willingly managers provide would take it. motivated to seek expend discretionary meaningful opportunities another job. effort to achieve for employees to give results. input and/or participate in decisions that affect them. © Interaction Associates Inc. 32
  • 33. Degradation of TrustCompared to previous survey years, the levels of trust have deteriorated, with sharedcommitment and responsibility and consistent efforts and actions decreasing significantly. 2012 2009 GapQ9_2 People feel safe communicating their ideas and opinions 52% 56% -4%with colleagues/peersQ9_12 People within the organization have a sense of shared 45% 56% -11%commitment and responsibilityQ9_9 Individuals are not assigned “impossible” tasks that are 43% 52% -9%outside the scope of their knowledge/trainingQ9_10 Everyone is treated fairly regardless of position or rank 43% 47% -4%Q9_6 My peers are consistent and predictable in their efforts 41% 51% -10%and actionsQ9_4 The culture promotes and rewards honesty 40% 50% -10% © Interaction Associates Inc. 33
  • 34. Degradation of Trust Biggest drop in Trust 2012 2009 GapQ9_7 The organization encourages transparency and shared 38% 46% -8%understanding of key processes for decisions and initiativesQ9_11 People are acknowledged and rewarded for their work 38% 48% -10%Q9_8 People in the organization share the rationale for their 34% 43% -9%opinionsQ9_1 People feel safe communicating their ideas and opinions 27% 37% -10%with leadershipQ9_5 Leadership is consistent, predictable and transparent in 23% 37% -14%their decisions and actionsQ9_3 People and teams can take risks (i.e. people are “allowed 21% 29% -8%to fail” and learn from their mistakes) © Interaction Associates Inc. 34
  • 35. Levels of Involvement® Delegate with Constraints ConsensusLevel of Ownership Gather Input from Group & Decide Gather Input from Individuals & Decide Decide and Announce * Fallback can be to any other level Level of Involvement © Interaction Associates Inc. 35
  • 36. Questions?Linda Stewart Andy Atkins President & CEO Chief Innovation OfficerInteraction Associates Interaction Associates @InteractionAsc Need assistance? Call Member Services (866) 538-1909 or email support@hci.org
  • 37. Full Report Available May 14 © Interaction Associates Inc. 37
  • 38. Thank you! www.hci.orgHuman Capital Institute (HCI) @human_capital