Employee Engagement: Research Report


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Employee Engagement: Research Report

  1. 1. How secure is the future of your organization in these rapidly changing times? Top threats facing business managers today – get your people engaged or face the costly consequences
  2. 2. Areas Covered <ul><li>The world is changing at an exponential rate </li></ul><ul><li>As a result, business is also changing & facing serious threats </li></ul><ul><li>One of the biggest changes for business is the new workforce – people do not want the same things from their jobs & careers as they once did </li></ul><ul><li>Employee engagement is seen as one of the most important concepts for business today – how committed are employees to their jobs and the companies they work for? </li></ul><ul><li>Keeping people happy will bring about more organizational productivity and profit than nearly any other business issue </li></ul><ul><li>Business managers and HR departments must act proactively to come up with programs and strategies to engage employees and customers </li></ul><ul><li>The old management methods are no longer effective & business needs to learn how to use coaching as a management style for the future </li></ul><ul><li>Bringing in performance coaches can help organizations to help themselves, by devising peak performance plans for both individual employees and business managers alike </li></ul>
  3. 3. Explosive change at a breath-taking pace <ul><li>We’re entering an age of acceleration. Because of the explosive power of exponential growth, the 21 st century will progress & change like never before thought possible </li></ul><ul><li>Legal, scientific, technological, cultural and social innovation are taking place at a breath-taking pace </li></ul><ul><li>The accelerating rate of change makes it difficult to stay innovative, especially because processes that worked in the past are becoming less and less effective </li></ul><ul><li>Business will need to integrate new technologies and develop new strategies & structures for a changing workforce in order to survive the information economy </li></ul>Source: Understanding the Accelerating Rate of Change, Kurzweil, Ray, 2005 (KurzweilAI.net)
  4. 4. Future shock – worried & fearful <ul><li>Rapid change has some negative effects, one of the most common being “future shock” - anxiety and insecurity </li></ul><ul><li>Many people fear job losses, spurred on by cases of business corruption, abuse of power or professional misconduct </li></ul><ul><li>People fear they might not have the kind of life or retirement they had hoped for </li></ul><ul><li>Jobs that once motivated people are no longer enough – people want more out of life and more out of their jobs </li></ul>Source: Alvin Toffler (1970)
  5. 5. Business is being challenged at every turn <ul><li>No where is the change more dramatic than in business </li></ul><ul><li>The information economy set in motion forces that challenge the design of many organizations and institutions </li></ul><ul><li>Quicker & more accurate dissemination of information to the lowest levels disrupts and erodes traditional hierarchies around which institutions are normally designed </li></ul><ul><li>This calls for flexibility, challenging traditional command & control frameworks by eroding middle tier management control </li></ul><ul><li>It diffuses and redistributes power & responsibility </li></ul><ul><li>Knowledge management becomes a critical success factor </li></ul>
  6. 6. Challenges facing all businesses today <ul><li>Obtaining new customers & retaining the old ones </li></ul><ul><li>Working too many hours </li></ul><ul><li>80% of time spent re-actively </li></ul><ul><li>Hiring people </li></ul><ul><li>Finding great salespeople </li></ul><ul><li>BTB: how to get to top decision makers </li></ul><ul><li>BTC: how to get to the best buyers </li></ul><ul><li>Finding competitive advantage </li></ul><ul><li>Working on the business instead of in the business </li></ul>Source: Chet Holmes, 2004; Department of Business Statistics, US Bureau of Economics, 2005
  7. 7. Professional/Organizational Challenges <ul><li>Workload, deadlines – inability to reach goals </li></ul><ul><li>Insufficient time and resources </li></ul><ul><li>Financial survival </li></ul><ul><li>Low trust </li></ul><ul><li>Disempowerment </li></ul><ul><li>Change and uncertainty </li></ul><ul><li>Staying current with technology </li></ul><ul><li>Confusion – lack of shared vision and values </li></ul><ul><li>Job satisfaction – don’t enjoy work </li></ul><ul><li>Lack of integrity in boss/top management </li></ul>Source: Stephen Covey, 2004
  8. 8. It’s a difficult road <ul><li>Only 13% of companies generate sustained profitable growth for a ten-year period </li></ul><ul><li>Only 9% of companies managed to outperform the equity market averages for a decade or more </li></ul><ul><li>Only 16% of companies managed to remain in existence over a thirty-year period </li></ul><ul><li>Only 5% of the Fortune 50 successfully sustained their growth </li></ul>Source: U.S. Department of Economic Analysis, 2005; EconSTATS 2005
  9. 9. Will your company be successful? <ul><li>The new economy has serious consequences for companies </li></ul><ul><li>The success or failure of businesses will be decided to a larger extent by their ability to encourage, adapt to and benefit from the new conditions </li></ul><ul><li>A clear focus on threats & opportunities inherent in the new situation will be required by executives and managers at all levels </li></ul><ul><li>This will call for bold approaches in business, including new diagnostic systems and new metrics to support success and protect against unnecessary failures </li></ul>
  10. 10. New sciences & technologies <ul><li>The new economy is a high-tech economy </li></ul><ul><li>Biotechnology, nano-physics, new energy, new materials, composites, new thinking (such as chaos theories) and new priorities of time are just a few examples of science & technology forces that impact society at large, broad segments of the economy and ultimately, individual companies </li></ul>
  11. 11. New concepts of time <ul><li>New concepts of time have influenced thinking and practice since Einstein </li></ul><ul><li>In the new economy, the time factor has been eliminated from many processes, undertaken in “real time” </li></ul><ul><li>Time is often a more critical resource than capital, resulting in management approaches like time to market and the need to stay ahead of competition </li></ul><ul><li>For companies, being a step ahead of competition is more important than it ever was </li></ul>
  12. 12. Cross-national awareness <ul><li>The new economy builds a previously unknown combination of advances in transportation & communications, which in some cases, has all but eliminated distance as a decision factor </li></ul><ul><li>The globalization of our economy has created a borderless world </li></ul><ul><li>Today, more and more businesses and people are working in a WWW environment (world without walls) </li></ul>
  13. 13. Innovation <ul><li>With competition at an all-time high due to globalization & technological advancements, companies will need to be increasingly innovative </li></ul><ul><li>With the pace of innovation heating up, any enterprise that fails to replace 10% of its revenue stream annually is likely to be out of business within five years </li></ul><ul><li>Innovation is one of the most important contributors to growth </li></ul><ul><li>Innovation depends on creative individuals who dream up new ideas and turn them into reality </li></ul>Source: The Economist, 2004
  14. 14. A new base for wealth creation <ul><li>In the new economy, economic growth is fuelled primarily by “minds in interaction”, not as it traditionally was by physical resources or capital </li></ul><ul><li>Unlike physical assets, the human mind is not a fixed, limited resource – it has the potential for unlimited growth, provided the mind-based resources are supported and developed through education and free exchange </li></ul><ul><li>This affects many old political and business priorities and practices </li></ul>
  15. 15. Multiculturalism <ul><li>The new economy favors variety, diversity, and multiculturalism since interaction between different minds is a stronger force in generating new solutions than interaction between identical or similar minds </li></ul><ul><li>Cultural relevance is a key success factor in a global business </li></ul><ul><li>Diversity, linked to the concept of “minds in interaction”, is a distinctive potential source of wealth creation and productivity enhancement for businesses all over the world </li></ul>
  16. 16. The war for talent <ul><li>Key employees are a major cost and value building factor in most companies in the 21 st century </li></ul><ul><li>In both service & product companies, key employees are an increasingly immediate source of sales, revenues & earnings </li></ul><ul><li>A company’s ability to attract, keep and develop good employees is a distinct success factor </li></ul><ul><li>Key employees add to productivity and innovation like no other segment within the organization </li></ul>Source: Michaels, Ed. The War for Talent , McKinsey & Company, 2001
  17. 17. Without them, productivity & innovation are impossible <ul><li>The competence and professional skills of employees, their enthusiasm, motivation & loyalty, the spirit with which they interact between themselves, and with clients & customers, their willingness to endorse and work by corporate mission and standards, the empowerment they get from management, the corporate culture – are all crucial to productivity, innovation and other company growth and earning factors </li></ul>
  18. 18. A new workforce <ul><li>The workforce has changed along with the changes in the new economy </li></ul><ul><li>Employees want more time to spend with their families and for hobbies, sports & cultural events </li></ul><ul><li>Employees want to commute less, although they will re-locate almost anywhere in the world for the right job </li></ul><ul><li>Employees want more respect and recognition. They are often as educated as their supervisors, and they want the respect and challenges that go with it and recognition for their suggestions & ideas </li></ul><ul><li>Employees want more than a great salary. They are interested in having a more fulfilled life, less stress, and more decision-making authority within their jobs </li></ul>
  19. 19. Human Resources is a critical factor <ul><li>The new century is taking up where the old one left off – with the struggle to recruit and retain a trained, satisfied workforce </li></ul><ul><li>Recruiting will continue as a key issue </li></ul><ul><li>The search for people with the proper experience is making HR a primary, critical factor in a company’s competitive position </li></ul><ul><li>HR must use best practices to create an environment that attracts people and makes them want to stay – tailoring to softer benefits (instead of stock programs, employees want later start times, so they can see their children off to school, for example) </li></ul>Source: Challenger, John. Interview with John Challenger with Challenger, Gray & Christmas , Human Resources Management News, 2004
  20. 20. You are going to lose – (your employees) <ul><li>Workers seek new employment when the economy improves or when they are not getting the most out of their jobs and careers </li></ul><ul><li>When the workforce shifts, it bogs down productivity, as companies, in essence, trade key players </li></ul><ul><li>Additional time will be necessary and additional expenses will be required to bring new individuals onboard, train them and get them up to effective operating speed – all just to maintain the status-quo </li></ul>
  21. 21. The potential for turnover in smaller businesses <ul><li>While the challenges are shared by both large and small businesses, the impact on small businesses is much more significant because they have less money & limited resources </li></ul><ul><li>Further, HR professionals in smaller organizations are underestimating the potential for turnover in their companies </li></ul>
  22. 22. Finding the right balance <ul><li>HR’s job will be to put together programs that help employees find the right balance between home & work </li></ul><ul><li>This is especially important for baby boomers, who are turning their attention away from their children and towards their elderly parents </li></ul><ul><li>Increased use of telecommuting can help maintain a proper balance – allowing employees to work at home and avoid lengthy commutes </li></ul><ul><li>However, telecommuting also creates its own potential problems – how do you create teamwork, morale, synergy and a connection amongst employees in isolation? </li></ul>
  23. 23. Communication – you’ve got to start a dialogue! <ul><li>Communication plays a signification role in whether employees understand and like their jobs </li></ul><ul><li>Good communication is a cornerstone to harnessing and improving commitment and motivation </li></ul><ul><li>Business leaders need to be talking to their top talent now </li></ul><ul><li>Identify critical staff and begin to think about succession & development plans for key individuals </li></ul><ul><li>Be active in determining their career needs & goals </li></ul><ul><li>Encourage feedback and involvement in the direction of the business to create a shared ownership of outcomes </li></ul>
  24. 24. The importance of communication from managers <ul><li>The importance of communication from managers is especially important when comparing it against communication from the broader organization </li></ul><ul><li>Highlighted in a survey conducted by Mercer Human Resource Consulting in Australia in 2003, it was clear that many employees considered looking for a new job within the next 12 months where senior management did not do a good job of presenting a clear vision of the future direction of the organization, did not set clear priorities and did not establish clear objectives </li></ul>Source: Sussman, Marsha. Communication: the key to retaining your workforce , citing from the Mercer Human Resource Consulting High Impact People Strategies survey completed in 2003. March 2, 2005
  25. 25. How to keep good people - commitment <ul><li>Business needs commitment from its good employees </li></ul><ul><li>It is the common theme that enables companies to realize the potential of people </li></ul><ul><li>There are 2 major reasons why commitment is so important: </li></ul><ul><li>1) because it is becoming so hard to replace key people, </li></ul><ul><li>2) commitment is perceived as a business necessity </li></ul>Source: O’Malley, Michael. Creating Commitment: How to attract and retain talented employees by building relationships that last . 2004
  26. 26. What motivates employees today? <ul><li>There is a connection between commitment and employee motivation </li></ul><ul><li>For motivation to exist, an employee must be committed, have the requisite abilities to act, and understand what must be done </li></ul><ul><li>Employees with high levels of motivation are 150% more productive than those with medium levels of motivation & 244% more productive than those with low motivation </li></ul><ul><li>Commitment is one factor that senior management has the best ability to influence </li></ul><ul><li>Employee motivation is also a significant indicator of customer satisfaction </li></ul>Source: Cox & Rock, 2004
  27. 27. What are the sources of motivation? <ul><li>A recent survey asked employees what factors influenced their commitment and motivation </li></ul><ul><li>The results are: </li></ul><ul><li>1. Being treated with respect 85% </li></ul><ul><li>2. Work/life balance 79% </li></ul><ul><li>3. Providing good service to </li></ul><ul><li>others 74% </li></ul><ul><li>4. Quality of work colleagues 74% </li></ul><ul><li>5. Type of work 73% </li></ul><ul><li>6. Flexible working arrangements 70% </li></ul><ul><li>7. Base pay 65% </li></ul><ul><li>8. Variable pay 34% </li></ul>Source: Mercer Human Resource Consulting High Impact People Strategies; What’s Working Survey , 2004
  28. 28. Employee engagement – it’s vital to your organization <ul><li>Employee well-being is a broad category that encompasses a number of workplace factors </li></ul><ul><li>Employee engagement is a combination of cognitive and emotional variables in the workplace that generate a higher frequency of job satisfaction, commitment, joy, fulfillment, interest & caring </li></ul><ul><li>Employee engagement has a positive affect on the efficient application of work, employee retention, creativity and ultimately, business outcomes </li></ul>Source: The Gallup Organization, 1999
  29. 29. The elements of employee engagement <ul><li>If the employee is “engaged” at work (has a sense of well-being), he or she is far more likely to do a good job </li></ul><ul><li>The elements of employee engagement include: </li></ul><ul><li>1) the employees know what is expected of them and know what materials are being provided </li></ul><ul><li>2) the employees feel they are contributing to the organization </li></ul><ul><li>3) the employees must feel that their opinions are important and are being heard </li></ul><ul><li>4) the employees have the opportunity to discuss their progress </li></ul>Source: Gallup Management Journal, 3/12/05
  30. 30. The Gallup Organization: a feedback system for the analysis of employee engagement <ul><li>The Gallup organization coined the term “employee engagement” after conducting thousands of surveys and performing research on the reasons people like or dislike their jobs </li></ul><ul><li>Workers are “engaged” if they like their jobs, receive recognition & praise and feel important </li></ul><ul><li>Currently, Gallup states that 55% of all employees are unengaged, 19% are actively disengaged and only 26% are engaged </li></ul>Source: EntecCorp, Employee Satisfaction , 12/30/04
  31. 31. Are your employees bored or stressed out? <ul><li>Two lines of research characterize the study of the effects of organizational environment on workers’ quality of life and performance </li></ul><ul><li>The first line originates with the study of stress and health and is best represented by the theory of person-environment fit </li></ul><ul><li>Proponents of the stress perspective argue that worker performance and quality of life are hindered by strain (too much challenge) or boredom (too little challenge) </li></ul><ul><li>From the stress perspective, a healthy work force means the absence of strain or boredom </li></ul>Source: Harter, JK. (2002) Well-being in the workplace and its relationship to business outcomes: A review of the Gallup studies
  32. 32. Do your employees have a sense of well-being? <ul><li>A second line of research on worker quality of life and performance originates with the behavioral, cognitive and health benefits of positive feelings and positive perceptions </li></ul><ul><li>A healthy work force means the presence of positive feelings in the worker that make them happier and more productive </li></ul><ul><li>The presence of positive workplace feelings are associated with higher customer loyalty, higher profitability, higher productivity, and lower rates of turnover </li></ul>Source: Harter, JK. (2002) Well-being in the workplace and its relationship to business outcomes: A review of the Gallup studies
  33. 33. Depression is depressing! <ul><li>6.6% of Americans experienced an episode of major depression in the past year and 16.2% will become depressed sometime in their lifetime </li></ul><ul><li>Depression results in more days in bed than many other ailments (such as ulcers, diabetes, high blood pressure and arthritis) according to a recent large-scale study published by the Rand Corporation </li></ul><ul><li>In an article (2003. JAMA), by Stewart et al., the labor costs, per depression, were calculated and defined as Lost Productive Work Time (LPT). The total figure was determined to be $44 billion per year  </li></ul><ul><li>The average lost time, per week, was estimated at 5.6 hours </li></ul><ul><li>On average, an employee suffering from depression costs the company $3,000 per year </li></ul>Source: Oregon Business, 7/2000; The Journal of the American Medical Association, June 18, 2003; Depression , 7/1/2005 South Mountain Community College Dept of Health
  34. 34. Companies need to figure out how to create value for their people – OR LOSE THEM! <ul><li>Take care of the talent that are critical to your organization and beware that they may be at risk of looking for greener fields </li></ul><ul><li>Invest in helping managers improve their relationships with their teams </li></ul><ul><li>Be visible, talk and listen to your people </li></ul><ul><li>Measure your HR programs and provide your employees with work-life initiatives (programs that help them figure out how to make the most of the little time they have balancing work and life) </li></ul>
  35. 35. Organizations are running at less than 30% of their human potential! <ul><li>Only 20% of employees get the chance to do what they do best at work every day </li></ul><ul><li>The key to highest individual performance lies in the unbeatable combination of experience, training and talent </li></ul><ul><li>One of every ten managers (and only one in every two employees) unleashes human potential intuitively </li></ul>Source: Gallup Organization, 2004
  36. 36. Costs of active disengagement <ul><li>Loss in productivity cost: $ 3,400 for every $10,000 in salary (e.g. $50,000 salary equals $ 17,000 lost productivity) </li></ul><ul><li>19% of the employees are actively disengaged </li></ul><ul><li>Savings generated through a zero-disengagement policy are more substantial than all other cost reduction efforts combined </li></ul><ul><li>Costs to U.S. Economy: $254 - $363 billion annually </li></ul>Source: The Gallup Organization, 2004
  37. 37. ROI of employee engagement: Get on the Gallup Path <ul><li>Take a look at the “Gallup Path” – by tackling each of these business concerns, sustainable growth & profitability are possible </li></ul><ul><li>The results include: </li></ul><ul><li>1) 56% higher success rate on customer metrics (loyalty) </li></ul><ul><li>2) 44% higher success rate on employee retention </li></ul><ul><li>3) 50% higher success rate on productivity </li></ul><ul><li>4) 33% higher success rate on profitability </li></ul><ul><li>5) 50% higher success rate on safety </li></ul>Source: The Gallup Organization, 2004; www.workforce.com 12 Questions To Measure Employee Engagement , 2005
  38. 38. A link between employee retention & customer retention <ul><li>A 2000 study in 6 different industries found a “significant” link between employee retention and the retention of customers </li></ul><ul><li>60% of the 3,000 customers interviewed were dissatisfied with the service they received </li></ul><ul><li>Twice as many blamed personnel over product or price </li></ul><ul><li>Many felt turnover was a “crucial” factor and said that lack of employee continuity and training are impeding their ability to get high-quality service </li></ul><ul><li>Only 20% thought that their service-provider would be a good company to work for </li></ul>Source: Roper Starch Worldwide & Unifi Network, a division of Pricewaterhouse Coopers, 2000
  39. 39. Your customers might take their business elsewhere <ul><li>As consumers, we all experience the annoyance of dealing with new employees and if we get aggravated, we take our business elsewhere </li></ul><ul><li>To calculate the average value of customers: Divide total annual sales by the average # of active customers or clients </li></ul><ul><li>Turnover in key personnel can negatively impact customer retention </li></ul><ul><li>In some industries, it takes a new sales person 2 to 3 years to reach the same level of sales as the worker’s predecessor </li></ul>Source: Reichheld, Frederick. “The Loyalty Effect”, Cambridge. 1996
  40. 40. Shareholder reaction <ul><li>There are so many problems related to employee disengagement, poor shareholder reaction can’t help but follow </li></ul><ul><li>When companies have motivated and committed people, shareholder value is enhanced </li></ul><ul><li>The Watson Wyatt Worldwide Work USA 2000 Survey found that companies with highly committed employees had a 112% return to shareholders over 3 years, compared with a 75% return for companies with low employee commitment </li></ul>Source: Arthur, M.M. (2003). Work-family initiatives and share price reaction: An institutional perspective . Academy of Management Journal, 46 , 497-505
  41. 41. Employee engagement significantly impacts the ability to achieve profitable growth <ul><li>All problems relating to engagement are directly associated with talent that is either underutilized or ignored </li></ul><ul><li>Underutilized talent creates stress </li></ul><ul><li>Talent drives performance </li></ul><ul><li>People utilize a very small part of their potential </li></ul><ul><li>Disengagement is expensive </li></ul><ul><li>Engagement is profitable </li></ul><ul><li>Engaged employees are your most productive people </li></ul><ul><li>Engaged customers always come back for more </li></ul>Source: Harter, James. Well-being In The Workplace and Its Relationship to Business Outcomes, A Review of the Gallup Studies . 2003
  42. 42. Summing it up <ul><li>In summary, it is clear that business is being challenged by change </li></ul><ul><li>One of the biggest challenges is the changing workforce – employees want more out of their careers, are demanding more work-life balance, and the employees’ attitudes have a huge financial affect on the productivity and profitability of the companies they work for </li></ul><ul><li>Active disengagement is costly to the organization. Disengagement causes employees to leave their jobs, do less quality work, become ill and depressed - - all of which cost organizations billions of dollars in hard and soft costs yearly </li></ul><ul><li>In addition, the “engagement” of the employee influences the “engagement” of the customer, accounting for competitive advantage in a highly competitive global economy. Here again, the organization has the potential of losing significant profit if it loses its customers </li></ul>
  43. 43. What should management do? <ul><li>To achieve real productivity and profit, management needs to adopt methods of connecting the personal development of its employees with the organizational growth of the company </li></ul><ul><li>This “connection” is possible when employees are truly engaged </li></ul><ul><li>This level of engagement comes about when: </li></ul><ul><li>1) employees have a strong emotional connection with their colleagues, their company & their clients </li></ul><ul><li>2) employees are allowed to self manage </li></ul>
  44. 44. A strong emotional connection brings about balanced development <ul><li>Business will achieve positive, sustainable changes if it connects personal and organizational development </li></ul><ul><li>Managers and employees are allowed to fulfill their own needs in a way that also supports the needs of the organization </li></ul><ul><li>Improved financial results and customer/employee satisfaction will occur as managers and employees become proud of and enjoy their work, are proactive, take initiatives and perceive changes as a standard way of doing business </li></ul>Source: M. Keyes, Flourishing: The Positive Person and The Good Life . 2003
  45. 45. Old management techniques won’t work <ul><li>The traditional management role – command & control – is obsolete </li></ul><ul><li>Today, employees have systems (communications, IT) at their disposal and they can manage these systems themselves </li></ul><ul><li>Management needs to be available as a “helper,” to provide guidance, not to control employees by barking out commands that must be followed </li></ul><ul><li>Coaching should be the new management technique </li></ul>Source: Corporate Therapy . The Economist, 11/13/2003
  46. 46. Trends in Management <ul><li>In the last few years, there has been a sharp increase in the search for effective management tools to increase the performance of organizations </li></ul><ul><li>This chart shows which tools are considered the most important by executives from 960 international companies </li></ul>Source: Bain & Company, 2004; AMR Research, 2004; The Cart pulling the horse?, The Economist, April 9, 2005
  47. 47. Management Tools & Business Outcomes <ul><li>Strategic planning and coaching scored highest as tools management sees as important for the future </li></ul><ul><li>However, most businesses need help in these areas </li></ul><ul><li>What is strategic planning and how do we implement it? </li></ul><ul><li>How does coaching work and what aspects of coaching are maintainable on an ongoing basis? </li></ul>
  48. 48. Strategic planning: how will it help you? <ul><li>Develop policies & strategies that will help answer the following questions: </li></ul><ul><li>1. As an employer, how can I meet my staff’s needs to balance their work & personal lives? Are there good models to follow? What will it cost? </li></ul><ul><li>2. As an employer, how can I respond to the increasing diversity in the workforce? How will migration affect the workplace of the future? </li></ul><ul><li>3. Will technology put people out of work? How can we prevent this? </li></ul><ul><li>4. How does the changing demographic affect our workforce as more & more people head towards retirement? Are they prepared and how can we help them? </li></ul><ul><li>6. Can our in-house HR department deal with all these problems or do we need to retain an independent company to help us help ourselves? </li></ul>
  49. 49. Coaching – what is it? <ul><li>Executive and business coaching is a process that allows the coach and client to directly focus on effectiveness, performance and satisfaction all at the same time </li></ul><ul><li>Coaching helps individuals gain clarity, remove self-imposed restrictions, and develop a plan for action </li></ul><ul><li>Coaching is a formal system that quickly and effectively brings about positive change – and sustains it! </li></ul>
  50. 50. Top reasons coaching works <ul><li>Coaching: </li></ul><ul><li>Sharpens the leadership skills of high-potential individuals by 77% !! </li></ul><ul><li>Corrects management behavior problems such as poor communication skills, failure to develop subordinates, or indecisiveness </li></ul><ul><li>Ensures the success, or decreases the failure rate, of newly promoted managers </li></ul><ul><li>Corrects employee relations problems such as poor interpersonal skills, disorganization, demeaning or arrogant behavior </li></ul><ul><li>Provides the required management and leadership skills to technically oriented employees </li></ul>Source: Adams, Clive. The Top 10 Most Important Things A Coach Can Do To Help A Client. Coaching Tools & Skills 11/18/96
  51. 51. Coaching – proven ROI <ul><li>With competitive pressures increasing, companies see coaching as a high ROI way to help valued employees develop swiftly in the changing business environment </li></ul><ul><li>A recent survey conducted in the UK revealed the following views on the benefits of coaching: </li></ul><ul><li>99% agree coaching can deliver tangible benefits to both individuals & organizations </li></ul><ul><li>96% agree coaching is an effective way to promote learning in organizations </li></ul><ul><li>93% agree coaching and mentoring are key mechanisms for transferring learning from training courses back to the workplace </li></ul><ul><li>92% agree when coaching is managed effectively, it can have a positive impact on an organization’s bottom line </li></ul>Source: The Chartered Institute of Personnel & Development, United Kingdom, 2005
  52. 52. What objectives are organizations trying to accomplish with coaching? <ul><li>78% improving individual performance </li></ul><ul><li>30% dealing with underperformance </li></ul><ul><li>28% improving productivity </li></ul><ul><li>27% career planning/personal development </li></ul><ul><li>26% growing future senior staff </li></ul><ul><li>24% fostering a culture of learning and development </li></ul><ul><li>21% motivating staff </li></ul>Source: The Chartered Institute of Personnel & Development, United Kingdom, 2005
  53. 53. Bosses are hard-wired to solve problems, but inspiring others to fully engage requires different competencies <ul><li>To become more effective, managers need additional coaching and mentoring. It's what brings out their executive and leadership qualities before (and then after) they get promoted into the executive ranks. It sharpens their leadership potential </li></ul><ul><li>But many managers are basically professional problem-solvers. So many (most?) of their bosses simply enroll them in the latest &quot;How to Be a Better Manager&quot; seminar and hope for the best…hardly ideal because no one is really coaching management </li></ul>
  54. 54. Why coaching and mentoring is ideal for managers and management personnel <ul><li>“ People are our greatest assets.” You've heard this before. You may even say it. But how many of your executives continue to complain that their managers’ management, communications, and leadership skills are not effective enough?  </li></ul><ul><li>Simply putting something into a performance appraisal or performance evaluation isn't an example of the boss handling things all that effectively. And your business strategy is much too important to just let that go </li></ul><ul><li>Isn't it time that you considered outsourced coaching and mentoring by a performance coach? Isn't it time you meaningfully addressed these secrets of success - or failure? </li></ul>
  55. 55. What the press is saying about coaching <ul><li>“ In a recent study, training alone improved leadership skills by 22%. When combined with Executive Coaching, improvement jumps to 77%.&quot; Fortune Magazine, 2004 </li></ul><ul><li>“ The goal of coaching is the goal of good management— to make the most of an organization’s valuable resources.” The Harvard Business Review, 2005 </li></ul><ul><li>“ Coaching is an action-oriented partnership that, unlike psychotherapy, which delves into patterns of the past, concentrates on where you are today and how to reach your goals.” Time Magazine, 2004 </li></ul><ul><li>A coach is part advisor, part sounding board, part cheerleader, part manager, and part strategist … The coach prods the client to keep to the action plan.” The Business Journal, 2005 </li></ul>
  56. 56. Tangible benefits of coaching Source: The Manchester Review, Vol 6, #1, 2001 <ul><li>In a recent survey where 2000 international businesses were polled, over 50% of the companies showed an increase in productivity after coaching was used as a management tool </li></ul>% of Companies Polled
  57. 57. Case Studies (Booz Allen Hamilton) <ul><li>In 2000, consulting firm Booz Allen Hamilton, Inc., implemented executive coaching programs in an attempt to improve productivity </li></ul><ul><li>Booz Allen Hamilton also hired a company to study the ROI of its coaching program </li></ul><ul><li>The study found that all of the leaders applied what they learned to improve their own development, while 53% went beyond that to make significant improvements in their relationships with teams and peer members </li></ul><ul><li>The benefits were $3.3 million in the year 2003, while the cost was $414,310 </li></ul><ul><li>A return on investment of 689% - far and away exceeding their expectations </li></ul>Source: Joyce, Amy. Washingtonpost.com, August 8, 2004
  58. 58. Case Studies (Union Energy in Canada) <ul><ul><li>Challenge: How does a leading energy company shift to a customer focused culture and differentiate themselves in a competitive industry? </li></ul></ul><ul><ul><li>Solution: Performance coaching trained company executives to use coaching as a management style </li></ul></ul><ul><ul><li>Outcome: Morale improved, communications were enhanced, and there was increased teamwork. Managers forged closer connections with front line employees helping to achieve the &quot;great customer service&quot; outcome the company sought </li></ul></ul>Source: The Gallup Organization, 2005
  59. 59. Is your company already using a coach? <ul><li>You may be saying to yourself: “Yes, I understand that coaching is effective. In fact, our company already employs outside coaches. We’ve had some success but frankly, we haven’t experienced the ROI we envisioned.” </li></ul><ul><li>There is an answer to this dilemma: </li></ul><ul><li>Coaching works best when it is part of an overall program – part of the strategic plans of the organization </li></ul><ul><li>If your coach doesn’t suggest an overall program, and doesn’t help you figure out how to implement it, you need to look elsewhere </li></ul>
  60. 60. Coaching continuity <ul><li>You need to think of coaching in 2 ways: </li></ul><ul><li>An outside coach comes into your organization to help accomplish those objectives on slide 52 and, </li></ul><ul><li>The coach trains your managers in the use of coaching as an ongoing management style </li></ul><ul><li>In this way you’ve gotten the continuity you need to make COACHING a truly effective tool </li></ul>
  61. 61. Concerns of HR buyers of coaching services: <ul><li>81% agree there is a great deal of confusion around what is meant by the term coaching </li></ul><ul><li>49% agree finding and selecting high-quality external coaches is a difficult task </li></ul><ul><li>41% agree the lack of regulation and accreditation in the coaching industry is very worrying </li></ul><ul><li>THEREFORE: </li></ul><ul><li>You need to do your homework! </li></ul><ul><li>You need to find a high-quality coach who is certified, who integrates coaching as part of an overall plan, who trains your people on coaching to obtain continuity and who has a reputation for excellence </li></ul>Source: The Chartered Institute of Personnel & Development, United Kingdom, 2005
  62. 62. How to conquer the threats facing employers today <ul><li>Did you reach your full potential last year? </li></ul><ul><li>If the answer is NO, you need to hire a performance coach who can help by keeping you focused on your goals and actions </li></ul><ul><li>A good coach can help by offering you simple processes to ensure that you achieve these goals and can be there as a confidant, advisor and sometimes mentor to help you succeed </li></ul>
  63. 63. What should we do? <ul><li>Begin to think & act proactively </li></ul><ul><li>Improve employee morale by creating a great place to work </li></ul><ul><li>Bring in a performance coach to help you get your employees and customers engaged </li></ul><ul><li>Develop strategic plans to help your company overcome the threats and changes affecting business & individuals in the 21 st century </li></ul><ul><li>Make sure your executives set meaningful priorities </li></ul>
  64. 64. PROACTIVE: Acting in advance to deal with an unexpected difficulty <ul><li>Studies have shown that being proactive is always better than being reactive </li></ul><ul><li>In a recent survey, companies that identify key employee issues and address them are more likely to attract and retain the best employees </li></ul><ul><li>Being proactive can protect the company from costly turnover expenses </li></ul><ul><li>Strategic planning & coaching programs cannot be “shelf” policies, they need active implementation </li></ul>Source: Norris, McLaughlin & Marcus, PA, 2005
  65. 65. A company has been located <ul><li>The ProPer Way is a group of performance coaches that can help your organization: </li></ul><ul><li>1) develop strategies to connect the personal development of employees with organizational growth </li></ul><ul><li>2) provide workshops and coaching sessions for management & employees to help them discover their unique value & enhance communication skills </li></ul><ul><li>3) help the management team develop a new, more effective management style - “coaching” </li></ul><ul><li>4) achieve peak performance </li></ul>
  66. 66. Achieving peak performance Peak Performance Intellectual Quotient (IQ) Emotional Quotient (EQ) Spiritual Quotient (SQ) Meaningful Noble goals Common purpose Clear accountabilities Smooth process Define results Caring Trusting Ego-less Peak performance falls into 3 broad categories Balanced Manager Series, Office of HR, Maryland Dept of Health, May 5, 2005 ; HR Career Management Program, John Hopkins University, 2005
  67. 67. A noble intention <ul><li>The ProPer Way’s intention is to facilitate insights in individuals that will help people and organizations achieve peak performance more easily and more often </li></ul><ul><li>The ProPer Way can help with many different problems, some of which are: </li></ul><ul><li>1) not enough innovation/ideas </li></ul><ul><li>2) resistance to change </li></ul><ul><li>3) difficulty in recruiting talent </li></ul><ul><li>4) low retention </li></ul><ul><li>5) excessive competition </li></ul><ul><li>6) very fast growth </li></ul><ul><li>7) inability to think “out of the box” </li></ul>
  68. 68. A holistic approach <ul><li>The ProPer Way was developed and is led by Arnold Beekes – a successful international performance coach with a 20-year background in business, operations, management & employee engagement and 30 years coaching in business & sports </li></ul><ul><li>Mr. Beekes’ book, The Proper Organization , was nominated as Book of the Year by business consultants in The Netherlands </li></ul><ul><li>The Proper Organization demonstrates the building of an integral model for professional and personal cooperation (hence the “pro” and “per”) </li></ul>
  69. 69. Arnold Beekes – innovation & communication <ul><li>Throughout his career, Arnold Beekes has been dealing with innovation – setting up new products, departments, companies </li></ul><ul><li>From years of communicating with the people on the front line of business, Mr. Beekes understands how employee engagement affects overall performance & productivity </li></ul><ul><li>He teaches coaching as a management style, to help business communicate more effectively with employees </li></ul>
  70. 70. Keep in mind that engagement is a 2 way street <ul><li>The organization cares about its people </li></ul><ul><li>AND </li></ul><ul><li>The people care about the organization </li></ul><ul><li>People don't care about how much you know, until they know how much you care </li></ul><ul><li>Thus…any sustainable growth is going to require attention to 2 things within your organization: </li></ul><ul><li>1) Your employees </li></ul><ul><li>2) Your management </li></ul>
  71. 71. The ProPer System: A plan for your employees and your management <ul><li>The ProPer Way has developed an extremely successful coaching system. The ProPer System optimizes employee engagement and stimulates peak performance </li></ul><ul><li>Through a holistic approach, they look at the 6 “C”s of engagement: </li></ul><ul><li>Core – To establish a high level of trust & to align missions, visions & values of employees and the organization </li></ul><ul><li>Coaching – To teach managers how to fully use the potential of their employees with a high sense of wellbeing </li></ul>
  72. 72. The ProPer System (continued) <ul><li>Communication – To have top-down as well as bottom-up communication focused on successes and possibilities </li></ul><ul><li>Creativity – To stimulate ideas from the frontline to improve products/services and customer interaction </li></ul><ul><li>Customers – To engage customers throughout the lifetime of your relationship </li></ul><ul><li>Continuous improvement – To have an ongoing focus on the improvement of the processes within the organization </li></ul>
  73. 73. Let The ProPer Way give you the tools you need to be successful <ul><li>The ProPer Way will take the following steps: </li></ul><ul><li>Analyze the organization : Through interviews & a questionnaire, you and The ProPer Way expert will determine the most important areas that need improvement to increase employee & customer engagement </li></ul><ul><li>Develop a plan : The plan will describe each of the 6 “C”s and the most urgent priorities that need to be addressed </li></ul><ul><li>Implement the plan : Your executives will be coached to continuously improve employee and customer engagement. Your managers will be coached on implementing the priority programs </li></ul><ul><li>Follow up and sustainability : There will be a quarterly review of the progress & results. Further action will depend on the reviews </li></ul>
  74. 74. Smooth changes, sustainable results <ul><li>The ProPer Way is more than consulting. With consulting, a problem is identified and the consultant proposes a solution. Coaching is more about the facilitation of a process so that the client can develop and sustain improved performance </li></ul><ul><li>The ProPer Way is not a piecemeal approach. They will integrate all aspects of the same problem in order to arrive at a solution that resolves all of the issues identified </li></ul><ul><li>If you’ve ever been dissatisfied with a consultant, it was probably because you paid a lot of money for very little in return. A junior-level associate was sent to tell you what you already knew, and without any suggestions or resolutions </li></ul><ul><li>The ProPer Way will be a facilitator, helping you to create sustainable changes, and will support this process for as long as they are needed </li></ul>
  75. 75. A Unique Company with a Unique Margin of Difference <ul><li>The ProPer Way is a unique company, offering very specific solutions in the area of employee engagement & problem-solving </li></ul><ul><li>Their programs clearly show they have a keen eye on current problems and issues employers and employees are facing today </li></ul><ul><li>Not only will they help you devise a plan based on your greatest needs, they’ll help you implement and maintain the plan for true success </li></ul><ul><li>The ProPer Way is a member of and certified by the International Coaching Federation (ICF), the highest accreditation a professional coach can achieve </li></ul>
  76. 76. Low cost program with real ROI <ul><li>Your return on investment expectations will be met and exceeded because of the following factors: </li></ul><ul><ul><li>Increased employee retention </li></ul></ul><ul><ul><li>Improved employee productivity </li></ul></ul><ul><ul><li>Improved employee loyalty </li></ul></ul><ul><ul><li>Lower absenteeism </li></ul></ul><ul><ul><li>Less stress, fear, tardiness </li></ul></ul><ul><ul><li>Improved shareholder trust & investment </li></ul></ul><ul><ul><li>Increased customer retention & loyalty </li></ul></ul><ul><ul><li>Increased business innovation leading to more successful products & services with less competition </li></ul></ul>
  77. 77. Success stories <ul><li>Below are a sampling of companies who put The ProPer Way’s 6 C’s of engagement into practice: </li></ul><ul><li>CORE: A company was having serious problems introducing variable compensation for the sales force. The ProPer Way engaged all parties, built trust through coaching and implemented a new approach. Within ½ year, the total implementation was finalized and the parties cooperated. Digital Equipment Corporation </li></ul><ul><li>COACHING: “Through Arnold’s coaching, I was able to see and cope with all my personal as well as professional challenges in a non-judgmental way. As a consequence, I could react much more effectively.” M.T. , Senior Executive, KLM Royal Dutch Airlines </li></ul>
  78. 78. More success stories <ul><li>CREATIVITY: The ProPer Way designed innovative systems to deliver services to indigenous communities by engaging local community representatives in consultation. Royal Society for the Blind, South Australia </li></ul><ul><li>COMMUNICATION: Initial stakeholder response was extremely negative and opposed to redevelopment. The ProPer Way conducted consultations, and by involving the stakeholders, they contributed and took ownership of the process. City of Melbourne </li></ul><ul><li>CONTINUOUS IMPROVEMENT: The ProPer Way facilitated teams leading to total organization quality accreditation. They engaged all employees in policy and procedure development, implementation and ownership of improved systems. Representatives from all departments were brought together to work on the project, despite the fact they had diverse functions & worked in satellite locations. Inner East Community Health Service </li></ul>
  79. 79. Summary <ul><li>Organizations must deal with many threats in the changing world environment </li></ul><ul><li>For sustained growth and productivity, organizations must find new ways to deal effectively with a changing workforce </li></ul><ul><li>When employees fail to feel valuable and fail to do their best, they are not engaged, and the organization suffers </li></ul><ul><li>Organizations must be proactive, they need to bring in coaches who can help the employees discover their true value and teach management new management techniques in order to increase employee and customer engagement </li></ul><ul><li>A program of coaching will exceed ROI expectations if a good, qualified performance coach is found and utilized </li></ul><ul><li>The ProPer Way is a respected company with a performance coaching specialty. With a 20-year background in business, marketing & engagement, Arnold Beekes and his associates can help your organization develop the all-important connection between the personal and professional sides, in order to build a strong and secure future. The ProPer Way : Your Partner In Peak Performance! </li></ul>
  80. 80. Schedule an appointment with The ProPer Way today <ul><li>Schedule an appointment with The ProPer Way and let them show you how much you have to gain from their strategies and guidance </li></ul><ul><li>Your ROI for this program will meet & exceed your expectations </li></ul><ul><li>Contact info: </li></ul><ul><li>The ProPer Way </li></ul><ul><li>Arnold Beekes </li></ul><ul><li>Donsvlinder 26, 3822 ZM  </li></ul><ul><li>Amersfoort, The Netherlands, </li></ul><ul><li>tel +31 33 4757656, </li></ul><ul><li>[email_address] </li></ul><ul><li>web: www.theproperway.com </li></ul>