Why happiness at work is a serious business - Nic Marks speaking at NixonMcinnes, Nov '13

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On the first Friday of every month we ask a speaker to join us for our team meeting. We drink beer, we eat crisps and we invite in new ideas, new people and new possibilities.

In December we were delighted to be joined by TED speaker, well-being researcher and creator of The Happy Planet Index - Nic Marks from Happiness Works.

Nic's company provide science-based online tools that instantly give organisations of any shape or size the power to change into happier and more productive workplaces. He'll spoke to us about the science behind the serious business of happiness.

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Why happiness at work is a serious business - Nic Marks speaking at NixonMcinnes, Nov '13

  1. 1. Happiness at Work
 
 Nic Marks
 Happiness Works 
 " @happiness_works
  2. 2. Watt’s Perfect Engine
  3. 3. Watt’s Governor – beautifully simple
  4. 4. We are emotional beings
  5. 5.   Barbara  Fredrickson’s   theory  of  the  evolu7onary   role  of  posi7ve  emo7ons   1.  Posi7ve  emo7ons  BROADEN  our  thoughts   &  ac7ons:  paying  more  a,en-on,  being  more  crea-ve   &  playful,  open  to  rela-onships,  and  flexible.   2.  Posi7ve  emo7ons  BUILD  psychological   resources:  resilience,  coping,  physical  abili-es,   emo-onal  intelligence,  social  skills  and  self  mastery.  
  6. 6. emotions are contagious
  7. 7. emotions are contagious we co-ordinate them
  8. 8. emotions are contagious and communicate with them
  9. 9. emotions are contagious we share them Photo by Annika Bischof
  10. 10. " ED : CT NE ON C " tworks e social n es f ower o e our liv " p " 9 mazing hey shap ea er; 200 l Th how t es Fow m and is & Ja k Christa icholas N
  11. 11. =2,000+  
  12. 12. •  Emo7ons  help  us  regulate  our   behavior   •  They  are  also  highly   contagious   •  “Nega7ve”  emo7ons  help  us   deal  with  threats   •  “Posi7ve”  emo7ons  help  us   deal  with  (and  create)   opportuni7es    
  13. 13. 3   great  pieces  of  research     about     happiness  at  work  
  14. 14. 1   the  role  of  posi7ve  emo7ons  in   team  performance    
  15. 15. Role of Emotions at Work" Fredrickson and Losado: Positive teams at work" " Study of 60 Strategic Business Unit teams, each of eight people, all from within the same organisation." " The SBUs performance categorised in terms of:" –  Profitability (SBU profit & loss accounts)" –  Customer satisfaction (surveys & interviews)" Each “utterance” in meeting was coded in terms of:" –  Positivity (support, encouragement, appreciation)" –  Negativity (disapproval, sarcasm, cynicism) "  
  16. 16. Role of Emotions at Work" Fredrickson and Losado: Positive teams at work"     Team Performance   HIGH (15) MEDIUM (26) LOW (19)
  17. 17. Role of Emotions at Work" Fredrickson and Losado: Positive teams at work"     Team Performance   HIGH (15) MEDIUM (26) LOW (19) Positivity / Negativity ratio
  18. 18. Role of Emotions at Work" Fredrickson and Losado: Positive teams at work"     Team Performance   Positivity / Negativity ratio HIGH (15) 5.61 MEDIUM (26) 1.86 LOW (19) 0.36
  19. 19. Role  of  Emo7ons  at  Work   Fredrickson  and  Losado:  Posi7ve  teams  at  work   Magic  Ra7o  of     Posi%ve  :  Nega%ve   3  :  1  to    8  :  1     BUT – they do NOT show causality
  20. 20. Happiness  at  Work   •  So  does  Happiness  come  from   HIGH  performance?     •  Or  does  Happiness  lead  to   HIGH  performance?   •  Or  both!  
  21. 21. 2   the  rela7onship  between   happiness  and  performance   through  7me  
  22. 22. Happiness  at  Work   Happiness  T1   Happiness  T2   Performance  T1   Performance  T2   11  organisa7ons;  2,000+  teams;  140,000+  respondents  
  23. 23. Happiness  at  Work   Happiness  T1   Happiness  T2   Performance  T1   Performance  T2   11  organisa7ons;  2,000+  teams;  140,000+  respondents  
  24. 24. Happiness  at  Work   Happiness  T1   Happiness  T2   Performance  T1   Performance  T2   11  organisa7ons;  2,000+  teams;  140,000+  respondents  
  25. 25. Happiness  at  Work   Happiness  T1   Happiness  T2   Performance  T1   Performance  T2   11  organisa7ons;  2,000+  teams;  140,000+  respondents  
  26. 26. Both  models  fi_ed  the  data  …             Source:  Causal  impact  of  employee  percep7ons  on  the  bo_om  line  of   organisa7ons;  James  Harter  et  al;  Perspec7ves  on  psychological  science   5(4);    2010    
  27. 27. Both  models  fi_ed  the  data  …   but  Model  1  was  much  be_er     “these  data  suggest  that  the  impact  of  …  [happiness   at  work]  on  …  performance  is  twice  as  large  as  from   performance  to  …  [happiness  at  work]”       Source:  Causal  impact  of  employee  percep7ons  on  the  bo_om  line  of   organisa7ons;  James  Harter  et  al;  Perspec7ves  on  psychological  science   5(4);    2010    
  28. 28. Happiness  works!     It  is  a  serious  business  …     But  somehow  it  is  not  being   taken  seriously    
  29. 29. 3   the  stock  market  performance  of   great  places  to  work  
  30. 30. “The  management   are  focused  on   employees  to  the   detriment  of   shareholders.       Why  would  I  want   to  buy  a  stock  like   that?”   Equity  analyst  quoted  in   Business  Week  
  31. 31. “I  happen  to  believe  that  in  order  to  reward   the  shareholder  in  the  long  term,  you  have  to   please  your  customers  and  employees.”   Jim  Sinegal,  Costco’s  CEO,  quoted  in  the  Wall  Street  Journal      
  32. 32. Companies  listed  in  the  top  100  “great  places   to  work”  have  outperformed  the  market   every  year  between  1985–2011  by  2.3  –  3.8%.   Source:  “The  link  between  Job  Sa7sfac7on  and  Firm  Value”  Alex  Edmans;  Academy  of   Management  Perspec7ves  2012  
  33. 33. 350%   300%   250%   200%   150%   100%   50%   0%   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   CRSP  Value  weighted  index  of  US  stocks     Fortune  Magazine's  100  Best  Places  to  Work   Source:  “The  link  between  Job  Sa7sfac7on  and  Firm  Value”  Alex  Edmans;  Academy  of   Management  Perspec7ves  2012  
  34. 34. 350%   300%   250%   200%   150%   100%   50%   0%   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   CRSP  Value  weighted  index  of  US  stocks     Fortune  Magazine's  100  Best  Places  to  Work   Source:  “The  link  between  Job  Sa7sfac7on  and  Firm  Value”  Alex  Edmans;  Academy  of   Management  Perspec7ves  2012  
  35. 35. Companies  listed  in  the  top  100  “great  places   to  work”  have  outperformed  the  market   every  year  between  1985–2011  by  2.3  –  3.8%.   Source:  “The  link  between  Job  Sa7sfac7on  and  Firm  Value”  Alex  Edmans;  Academy  of   Management  Perspec7ves  2012  
  36. 36. 2.5x   ROI   Companies  listed  in  the  top  100  “great  places   to  work”  have  outperformed  the  market   every  year  between  1985–2011  by  2.3  –  3.8%.   Source:  “The  link  between  Job  Sa7sfac7on  and  Firm  Value”  Alex  Edmans;  Academy  of   Management  Perspec7ves  2012  
  37. 37. •  Posi7ve  teams  are   characterized  by  be_er   performance   •  Happiness  at  work  predicts   performance  (a  leading   indicator)   •  Happier  companies   outperform  their  compe7tors   on  the  stock  market  
  38. 38. What  could  it  mean  for   your  company?  
  39. 39. 49
  40. 40. Benefits  of  Happiness  at  Work   Gallup   data   Absenteesim   Staff  Turnover   Produc7vity   Customer   Sa7sfac7on   Modest   es%mate   Benefit  
  41. 41. Benefits  of  Happiness  at  Work   Gallup   data   Absenteesim   -­‐38%   Staff  Turnover   down   25-­‐65%   Produc7vity   up  21%   Customer   Sa7sfac7on   up10%   Modest   es%mate   Benefit  
  42. 42. Benefits  of  Happiness  at  Work   Gallup   data   Absenteesim   Modest   es%mate   -­‐38%   -­‐10%   Staff  Turnover   down   25-­‐65%   -­‐10%   Produc7vity   up  21%   +5%   Customer   Sa7sfac7on   up10%   +10%   Benefit  
  43. 43. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   down   25-­‐65%   -­‐10%   Produc7vity   up     21%   +5%   Customer   Sa7sfac7on   up     10%   +10%   Staff  Turnover   TOTAL      
  44. 44. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   down   25-­‐65%   -­‐10%   Produc7vity   up     21%   +5%   Customer   Sa7sfac7on   up     10%   +10%   Staff  Turnover   TOTAL       £16,667  
  45. 45. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   £16,667   down   25-­‐65%   -­‐10%   £15,680   Produc7vity   up     21%   +5%   Customer   Sa7sfac7on   up     10%   +10%   Staff  Turnover   TOTAL      
  46. 46. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   £16,667   down   25-­‐65%   -­‐10%   £15,680   Produc7vity   up     21%   +5%   £122,500   Customer   Sa7sfac7on   up     10%   +10%   Staff  Turnover   TOTAL      
  47. 47. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   £16,667   down   25-­‐65%   -­‐10%   £15,680   Produc7vity   up     21%   +5%   £122,500   Customer   Sa7sfac7on   up     10%   +10%   ??     Staff  Turnover   TOTAL       (lower  cost  of  sales)  
  48. 48. Benefits  of  Happiness  at  Work   Gallup   Modest   Benefit   data   es%mate   Absenteesim   down   38%   -­‐10%   £16,667   down   25-­‐65%   -­‐10%   £15,680   Produc7vity   up     21%   +5%   £122,500   Customer   Sa7sfac7on   up     10%   +10%   ??     Staff  Turnover   TOTAL       (lower  cost  of  sales)   £154,847  
  49. 49. Happiness works" •  More innovation" •  Higher performance" •  Shareholder value" plus … lower absenteeism, less staff turnover, better customer service and increased word of mouth recommendations" " But “happiness at work” is not   mainstream … yet!"
  50. 50. Taking  happiness  mainstream  
  51. 51. Taking  happiness  mainstream   Pragmatists " Enthusiasts " Innovators " Conservatives " Skeptics " Source: “Crossing the Chasm” Geoffrey Moore; 1999 "
  52. 52. Mind  the  gap  …   Pragmatists " Enthusiasts " Innovators " Conservatives " Skeptics " Source: “Crossing the Chasm” Geoffrey Moore; 1999 "
  53. 53. Understanding  the  gap  …   Innovators & Enthusiasts" Creating the future" The GAP" Pragmatists" Dealing with the present" Enjoys being the first" Values experience" Likes new ideas" Likes what works " Inspired by the vision" Interested in details" “State of the art”" “Industry standard”"
  54. 54. Happiness  works  …   Innovators & Enthusiasts" Creating the future" Enjoys being the first" Likes new ideas" Inspired by the vision" “State of the art”" The GAP" ✔✔ ✔✔ ✔✔ Pragmatists" Dealing with the present" Values experience" Likes what works " Interested in details" “Industry standard”" www.happinessatworksurvey.com  
  55. 55. a  sta7s7cian’s  strategy  for   bridging  the  gap  
  56. 56. a  strategy  for  bridging  the  gap   • 50% of people have done one in last 3 years" • 80% of them think it made no difference to their working lives" •  Why?"
  57. 57. what’s  wrong  with  staff  surveys?   •  Wrong questions" •  Bad user experiences" •  No feedback to individuals and teams" •  6 weeks till a report" •  Statistics too complicated" •  Not enough consistent follow up and through from the organization"
  58. 58. Business Case:" 10 reasons why a happiness survey is better than engagement surveys" •  •  •  •  •  •  •  •  •  •  Happiness is more than engagement" Instant results" Team level results" Easy to use " Results easy to understand" Accurate reflection of the organisation" Encourages conversations and insights" Helps turn insights into actions" Measures changes over time" Based on state of the art measurement techniques" •  More cost effective" 68
  59. 59. “If  you  look  at  the  modern  workplace,  I  would  say   it's  one  of  the  most  feedback-­‐deprived  places  in   American  civiliza7on.”   “feedback  comes  in  the  form  of  a  once-­‐a-­‐year,   awkward,  45-­‐minute  conversa7on  with  your  boss.   It's  a  feedback  desert.”   Washington  Post,  9th  January  2011    
  60. 60. 71
  61. 61. 72
  62. 62. 73
  63. 63. www.happinessatworksurvey.com" 74
  64. 64. Mirrors and Windows" The happiness at work tool helps organizations and leaders to “lean” towards the future rather than just looking back at last years performance" " It acts like a mirror – helping the system become more aware of itself" " It also acts like a window – showing the possibility of a better way" " Leaning = Learning and Leading " 75
  65. 65. “the finger that points to the moon is not the moon”
    
  66. 66. The BIGGEST conversation"   The  tool  points  to  happiness  at  work  but  it  is  NOT   happiness  at  work!     It  will  only  be  useful  if  it  provokes  conversa7ons  and   insights  within  the  organiza7on     And  those  conversa7ons  and  insights  need  to  be   turned  into  posi7ve  ac7ons     77
  67. 67. Only  if   insights  are   generated   and  acted  on   will  change   happen      
  68. 68. Happiness  Insight  Engines?  
  69. 69. www.happinessworks.com  
  70. 70. www.happinessworks.com  

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