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Rethinking employee engagement from the perspective of psychological development final

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This presentation looks at employee engagement from a psychological perspective. It provides an overview of the seven stages of psychological development and describes the needs at each stage.

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Rethinking employee engagement from the perspective of psychological development final

  1. 1. Rethinking Employee Engagement from the Perspective of Psychological Development Richard Barrett
  2. 2. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 2 What is Employee Engagement? Engaged employees are enthusiastic about their work and care about the success of the organisation. A workplace approach designed to encourage the commitment of employees to the organisation’s goals and values.
  3. 3. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 3 Why is Employee Engagement Important? Engaged employees bring more of their discretionary energy to their work. Organisation’s with high levels of employee engagement outperform organisations with low employee engagement by a significant margin.
  4. 4. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 4 Employee Engagement and Performance  Organisations with highly engaged employees have 3.9 the earnings per share growth rate compared with organisation with low employee engagement—Gallup  Organisations with high employee engagement are 78% more productive and 40% more profitable that those with low employee engagement—AON Hewitt
  5. 5. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 5 S&P 500 Average Annualized Return 16.39% Average Annualized Return 4.12% BCWF The Best Companies to Work For engender high levels of employee engagement and commitment, because the leaders of these organisations focus on meeting their employee’s needs. The Top 40 Best Companies to Work For (USA)
  6. 6. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 6 What’s the Difference? Caring creates happier customers, who buy more and refer more often, which drives sales, resulting in increased income. Engaged employees care about their organisations, are more productive, give better service, and stay in their organisations longer.
  7. 7. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 7 Employee Engagement and Cultural Entropy Employee engagement is highly correlated with cultural entropy. Cultural Entropy: A measure of the conflict, friction and frustration that people experience in their day-to-day activities that prevents an organisation from achieving peak performance.
  8. 8. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 8 25% 35% 45% 55% 65% 75% 85% 0% 5% 10% 15% 20% 25% 30% Cultural Entropy EmployeeEngagement Research carried out in 163 organisations in Australia by Hewitt Associates and the Barrett Values Centre in 2008. Low Entropy = High Engagement High Entropy = Low Engagement Employee Engagement vs. Cultural Entropy
  9. 9. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 9 Entropy and Engagement Cultural Entropy Most employees are …. 10% or less Highly Engaged 11% to 20% Engaged 21% to 30% Becoming Disengaged 31% to 40% Disengaged 41% or more Highly Disengaged
  10. 10. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 10 Cultural entropy is a function of the personal entropy of the current leaders and institutional legacy of past leaders as embedded in the structures, systems, policies and procedures of an organisation. Where Does Cultural Entropy Come From? Personal entropy is the amount of fear-driven energy that a person expresses in his or her day-to-day interactions with other people.
  11. 11. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 11 What is Personal Entropy? Personal entropy shows up in potentially limiting values such as: blame, jealousy, power- seeking, status-seeking, arrogance, demanding, internal politics, etc.
  12. 12. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 12 What is Institutional Legacy? The institutional legacy contribution to cultural entropy shows up as bureaucratic procedures, hierarchical structures, silo functioning, etc.
  13. 13. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 13 The values that are most important to us are a reflection of the needs of the stage of psychological development we are at and the unmet needs of the stages of psychological development we have passed through but have not yet mastered. A Values-Based Approach to Identifying Employee Needs Our needs (what we value) have always been, and always will be the principal drivers of our behaviors and actions.
  14. 14. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 14 Richard Barrett has made extraordinary contributions to our understanding of organisational values and culture. His frame-works for measuring culture and enabling whole system change are elegant. His reservoir of know-ledge is vast and his connection to timeless wisdom is profound. Raj Sisodia Co-founder and co-chairman of Conscious Capitalism Inc. and Professor of Marketing at Bentley University Everything I am talking about is in this book
  15. 15. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 15 Stages of Psychological Development Stages Primary Motivations Serving Integrating Self-actualising Individuating Differentiating Conforming Surviving EvolutionofPersonalConsciousness Satisfying your physiological and nutritional needs. Satisfying your need for love, and belonging. Satisfying your need for respect and recognition. Satisfying your need for freedom and autonomy. Satisfying your need to find meaning and purpose in life. Satisfying your need to make a difference in the world. Satisfying your need to lead a life of service to others.
  16. 16. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 16 Stages of Psychological Development Surviving
  17. 17. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 17 Stages of Psychological Development INFANCY 0-2 Years Old Staying alive! Satisfying physiological and nutritional needs Surviving Stage Motivation
  18. 18. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 18 Stages of Psychological Development Conforming
  19. 19. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 19 Stages of Psychological Development Conforming Stage Motivation CHILDHOOD 3-7 Years Old Keeping safe and secure! Satisfying need for love, and belonging.
  20. 20. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 20 Stages of Psychological Development Differentiating
  21. 21. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 21 Stages of Psychological Development Differentiating Stage Motivation TEENAGER 8-19 Years Old Distinguishing yourself Satisfying need for respect and recognition.
  22. 22. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 22 Stages of Psychological Development Individuating
  23. 23. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 23 Stages of Psychological Development Individuating Stage Motivation YOUNG ADULT 20-39 Years Old Releasing your fears! Satisfying need for freedom and autonomy.
  24. 24. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 24 Stages of Psychological Development Self-actualising
  25. 25. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 25 Stages of Psychological Development Self-actualising Stage Motivation ADULTHOOD 40-49 Years Old Becoming who you are! Satisfying need to find meaning and purpose.
  26. 26. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 26 Stages of Psychological Development Integrating
  27. 27. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 27 Stages of Psychological Development Integrating Stage Motivation MATURE ADULT 50-59 Years Old Aligning with others! Satisfying need to make a difference in the world.
  28. 28. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 28 Stages of Psychological Development Serving
  29. 29. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 29 Stages of Psychological Development Serving Stage Motivation SENIOR 60+ Years Old Finding fulfilment! Satisfying your need to serve the greater good.
  30. 30. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 30 Stages, Levels and World Views  We grow in stages of psychological development  We operate at levels of consciousness  We live inside (are embedded in) cultural world views
  31. 31. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 31 Levels of Consciousness All things being normal, the level of consciousness we operate from will correspond to the stage of psychological development we have reached.
  32. 32. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 32 Stages and Levels Stages Levels of Consciousness Serving SERVICE Integrating MAKING A DIFFERENCE Self-actualising INTERNAL COHESION Individuating TRANSFORMATION Differentiating SELF-ESTEEM Conforming RELATIONSHIP Surviving SURVIVAL EvolutionofPersonalConsciousness
  33. 33. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 33 What Employees Value A safe working environment and pay and ben- efits that are sufficient to take care of family Opportunities to work in a congenial atmos- phere where people care and respect each other Opportunities to grow professionally with support, feedback and coaching Opportunities and challenges by being made accountable for projects and processes Opportunities for personal growth and develop- ment to support you in living your life purpose Opportunities to leverage your contribution by collaborating with other like-minded individuals Opportunities to serve others and care for the well-being of the Earth’s life support systems Surviving Relationship Self-esteem Transformation Internal cohesion Making a difference Service Levels of Consciousness
  34. 34. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 34 Robert Kegan’s Types of Mind Socialized Mind Self-Authoring Mind Self-Transforming Mind Surviving Relationship Self-esteem Transformation Internal cohesion Making a difference Service Levels of Consciousness
  35. 35. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 35 Robert Kegan’s Types of Mind Socialized Mind Focused on meeting deficiency needs. Work is a job—a way of earning a living and caring for family. They may enjoy their work and colleagues, but are never passionate about what they do.Surviving Relationship Self-esteem Levels of Consciousness
  36. 36. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 36 Robert Kegan’s Types of Mind Self-Authoring Mind Focused on achievement and ambition. People operating with a self- authoring mind seek opportunities for advancement. They think of their work as career— a pathway to a better future. Transformation Internal cohesion Levels of Consciousness
  37. 37. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 37 Robert Kegan’s Types of Mind Self-Transforming Mind Focused on leading a values and purpose- driven life. People operating with a self- transforming mind see their work as a vocation. They want to leave a legacy and be of service to the world. Making a difference Service Levels of Consciousness
  38. 38. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 38 Building a Values-driven Organisation
  39. 39. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 39 Building a Values-driven Organisation Start with a Values-Survey PERSONAL VALUES Which of the following values and behaviours most reflect who you are? Pick ten. CURRENT CULTURE Which of the following values/behaviours most reflect how your organisation currently operates? Pick ten. DESIRED CULTURE Which of the following values/behaviours most reflect how you would like your organisation to operate? Pick ten.
  40. 40. Placement of Values by Level (100 employees) Top Ten Values 1. tradition (L) (59) 2. diversity (54) 3. control (L) (53) 4. goals orientation (46) 5. knowledge (43) 6. creativity (42) 7. productivity (37) 8. image (L) (36) 9. profit (36) 10. open communication (31) 10 42 5 7 9 6 8 3 110 Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  41. 41. 11% 1 2 3 4 5 6 7 Cultural Entropy Placement of Values by Level (100 employees) Current Culture Service Makingadifference Internal Cohesion Transformation Self-esteem Relationship Survival
  42. 42. Highly Aligned Team of 16 People commitment 12 5(I) continuous improvement 10 4(O) employee fulfilment 10 6(O) balance (home/work) 9 4(O) customer satisfaction 9 2(O) making a difference 9 6(S) financial stability 8 1(O) humour/ fun 8 5(O) teamwork 8 4(R) accountability 9 4(R) commitment 8 5(I) continuous improvement 8 4(O) employee fulfilment 8 6(O) humour/ fun 8 5(O) shared vision 8 5(O) customer collaboration 7 6(O) customer satisfaction 6 2(O) financial stability 6 1(O) teamwork 6 4(R) Values Plot August 6, 2012Copyright 2012 Barrett Values Centre I = Individual R = Relationship Black Underline = PV & CC Orange = PV, CC & DC Orange = CC & DC Blue = PV & DC P = Positive L = Potentially Limiting (white circle) O = Organisational S = Societal Matches PV - CC 4 CC - DC 7 PV - DC 1 Health Index (PL) PV - 9-0 CC - 9-0 DC-10-0 making a difference 10 6(S) family 9 2(R) commitment 8 5(I) humour/ fun 8 5(I) balance (home/work) 6 4(I) continuous learning 6 4(I) integrity 6 5(I) accountability 5 4(R) creativity 5 5(I) Level Personal Values (PV) Current Culture Values (CC) Desired Culture Values (DC) 7 6 5 4 3 2 1 IRS (P)=6-2-1 IRS (L)=0-0-0 IROS (P)=1-1-6-1 IROS (L)=0-0-0-0 IROS (P)=1-2-7-0 IROS (L)=0-0-0-0
  43. 43. Highly Aligned Team of 16 People CTS = 53-22-25 Entropy = 0% CTS = 50-26-24 Entropy = 2% Personal Values CTS = 51-29-20 Entropy = 0% Current Culture Values Desired Culture Values C T S 2 1 3 4 5 6 7 0% 0% 0% 6% 12% 7% 22% 32% 13% 8% 0% 20% 40% 60% 1 2 3 4 5 6 7 0% 1% 1% 6% 8% 8% 26% 28% 19% 3% 0% 20% 40% 60% 1 2 3 4 5 6 7 0% 0% 0% 5% 5% 10% 29% 27% 22% 2% 0% 20% 40% 60% 1 2 3 4 5 6 7 21% 54% 25% 22% 54% 24% 24% 56% 20% Notice how evenly matched the distributions are Entropy Level = Highly Engaged
  44. 44. Banking Sector Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0 Matches PV - CC 2 CC - DC 6 PV - DC 4 Health Index (PL) PV: 10-0 CC: 10-0 DC: 10-0 1. accountability 8576 4(R) 2. honesty 6133 5(I) 3. commitment 5221 5(I) 4. respect 4420 2(R) 5. family 4057 2(R) 6. integrity 4023 5(I) 7. caring 3568 2(R) 8. balance (home/work) 3526 4(I) 9. responsibility 3279 4(I) 10. efficiency 3085 3(I) 1. accountability 5464 4(R) 2. client-driven 4571 6(O) 3. client satisfaction 3486 2(O) 4. brand reputation 2740 3(O) 5. achievement 2491 3(I) 6. teamwork 2408 4(R) 7. environmental awareness 2372 6(S) 8. commitment 2263 5(I) 9. being the best 2218 3(O) 10. cost-consciousness 2187 3(O) 1. accountability 6987 4(R) 2. balance (home/work) 4183 4(O) 3. client-driven 3864 6(O) 4. client satisfaction 3742 2(O) 5. employee recognition 3297 2(R) 6. honesty 3053 5(I) 7. commitment 2953 5(I) 8. achievement 2809 3(I) 9. teamwork 2744 4(R) 10. employee satisfaction 2687 2(O) Values Plot Copyright 2011 Barrett Values Centre April 2011 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal Banking Sector Organisation with 27,000 Employees
  45. 45. 1% 0% 1% 5% 16% 16% 26% 4% 7% 24% 0% 20% 40% 1 2 3 4 5 6 7 3% 3% 5% 5% 11% 20% 13% 14% 6% 20% 0% 20% 40% 1 2 3 4 5 6 7 1% 0% 0% 5% 15% 16% 21% 12% 5% 25% 0% 20% 40% 1 2 3 4 5 6 7 Banking Sector Values Distribution Copyright 2011 Barrett Values Centre April 2011 CTS = 37-24-39 Entropy = 2% CTS = 33-20-47 Entropy = 11% CTS = 38-25-37 Entropy = 1% Personal Values Current Culture Values Desired Culture Values 11% 50% 39% 20% 33% 47% 17% 46% 37% C T S Entropy Level = Engaged Banking Sector Organisation with 27,000 Employees Less evenly matched distributions Shift in culture towards personal consciousness
  46. 46. Small Company Personal Values Large Company Personal Values Family Respect Family Caring Efficiency Commitment Integrity Humour/fun Creativity Accountability Balance (home/work) Continuous learning Making a difference Integrity Honesty Commitment Accountability Balance (home/work) Responsibility Different Personal Values 0% 0% 0% 6% 12% 7% 22% 32% 13% 8% 0% 20% 40% 60% 1 2 3 4 5 6 7 21% 54% 25% 1% 0% 1% 5% 16% 16% 26% 4% 7% 24% 0% 20% 40% 1 2 3 4 5 6 7 11% 50% 39%
  47. 47. Small Company Desired Culture Values 0% 0% 0% 5% 5% 10% 29% 27% 22% 2% 0% 20% 40% 60% 1 2 3 4 5 6 7 24% 56% 20% 1% 0% 0% 5% 15% 16% 21% 12% 5% 25% 0% 20% 40% 1 2 3 4 5 6 7 17% 46% 37% Large Company Desired Culture Values Client satisfaction Employee satisfaction Employee recognition Achievement Customer satisfaction Financial stability Accountability Balance (home/work Honesty Commitment Teamwork Client-driven Customer collaboration Employee fulfilment Accountability Commitment Continuous improvement Humour/fun Shared vision Teamwork Different Desired Cultures
  48. 48. Banking Sector Level 7 Level 6 Level 5 Level 4 Level 3 Level 2 Level 1 Personal Values Current Culture Values Desired Culture Values IRS (P)= 6-4-0 | IRS (L)= 0-0-0 IROS (P)= 2-2-5-1 | IROS (L)= 0-0-0-0 IROS (P)= 3-3-4-0 | IROS (L)= 0-0-0-0 Matches PV - CC 2 CC - DC 6 PV - DC 4 Health Index (PL) PV: 10-0 CC: 10-0 DC: 10-0 1. accountability 8576 4(R) 2. honesty 6133 5(I) 3. commitment 5221 5(I) 4. respect 4420 2(R) 5. family 4057 2(R) 6. integrity 4023 5(I) 7. caring 3568 2(R) 8. balance (home/work) 3526 4(I) 9. responsibility 3279 4(I) 10. efficiency 3085 3(I) 1. accountability 5464 4(R) 2. client-driven 4571 6(O) 3. client satisfaction 3486 2(O) 4. brand reputation 2740 3(O) 5. achievement 2491 3(I) 6. teamwork 2408 4(R) 7. environmental awareness 2372 6(S) 8. commitment 2263 5(I) 9. being the best 2218 3(O) 10. cost-consciousness 2187 3(O) 1. accountability 6987 4(R) 2. balance (home/work) 4183 4(O) 3. client-driven 3864 6(O) 4. client satisfaction 3742 2(O) 5. employee recognition 3297 2(R) 6. honesty 3053 5(I) 7. commitment 2953 5(I) 8. achievement 2809 3(I) 9. teamwork 2744 4(R) 10. employee satisfaction 2687 2(O) Values Plot Copyright 2011 Barrett Values Centre April 2011 Black Underline = PV & CC Orange = CC & DC P = Positive L = Potentially Limiting I = Individual O = Organizational Orange = PV, CC & DC Blue = PV & DC (white circle) R = Relationship S = Societal Banking Sector (18,000)
  49. 49. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 49 Cultural Entropy Evolution Cultural entropy reduction from 25% to 10% led to improved performance through increased employee engagement, increased revenues, improved productivity, and increase in share price. 25% 19% 17% 14% 13% 13% 11% 10% 0% 5% 10% 15% 20% 25% 30% 2005 2006 2007 2008 2009 2010 2011 2012 Cutlural Entropy
  50. 50. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 50 Evolution of Number of Survey Participants 8% 25% 38% 51% 67% 73% 77% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2005 2006 2007 2008 2009 2010 2011 2012 Percentage of employees voluntarily participating in the values assessment grew significantly each year as people realized that the leaders of the organisation were paying attention to the results of the assessment.
  51. 51. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 51 Revenue Evolution 0% 5% 10% 15% 20% 25% 30% 0 5000 10000 15000 20000 25000 30000 35000 2005 2006 2007 2008 2009 2010 2011 2012 Revenue Cultural Entropy Annual revenue increases as cultural entropy falls. Global Economic Meltdown
  52. 52. 0% 5% 10% 15% 20% 25% 30% 0 200 400 600 800 1000 1200 2005 2006 2007 2008 2009 2010 2011 2012 Revenue per Capita Cultural Entropy Revenue per capita increases as cultural entropy falls. Productivity Evolution Global Economic Meltdown
  53. 53. 0% 5% 10% 15% 20% 25% 30% 0 5000 10000 15000 20000 2005 2006 2007 2008 2009 2010 2011 2012 Share Price Cutlural Entropy Share price (cents) increases as cultural entropy falls. Share Price Evolution Global Economic Meltdown
  54. 54. Powerful metrics that enable leaders to measure and manage cultures. www.valuescentre.com 54 For More Information www.valuescentre.com www.richardbarrett.net To get a copy of this presentation go to: http://www.slideshare.net/BarrettValues

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