Presentatie Cees van Riel; Het Communicatie Congres 2012

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Presentatie Cees van Riel; Het Communicatie Congres 2012

  1. 1. The Alignment Factor, Leveraging Total Stakeholder Support, Routlege, 2012Prof.dr Cees B.M. van Riel RSM/Erasmus University Rotterdam
  2. 2. Alignment:“A mutual rewarding relationship between a company and its key stakeholders, which enables the firm to meet its objectives and realize its purpose.”This book focuses on internal and external alignment
  3. 3. Key Points Illustrated in THE ALIGNMENT FACTOR• 1 Alignment is the process of building and maintaining a mutually rewarding relationship (MRR) with stakeholders, resulting in a better reputation as a stepping stone in increasing (financial) performance: 10% increase in employee alignment, evokes, 2% higher financial performance!• 2 This implies a shift in attitude for most companies, respecting the necessity to balance its own interests with the demands of stakeholders that they depend upon• 3 Getting employees aligned and involved around strategy implies implementing four managerial efforts: • Gather relevant intelligence before launching the strategy • Reveal support and/or resistance among key stakeholders • Implement the strategy by balancing hard and soft wired intitiatives, incl. communications • Track progress by KPI’s assessing progress in building MRR with key stakeholders Phase I: Phase II: Phase IV: Revealing Phase III: Know Before You Go Action Plan Tracking Progress Support & Resistance
  4. 4. Phase II: Phase III: Phase IV: Phase I:Building aligned Organization Revealing Action Plan Tracking Progress Know Before You Go Support & Resistance Alignment with what? Tracking progress in supportive employee behavior Tracking progress in Hard wired and soft wired supportive employee initiatives behavior Who needs to be aligned? Introducing KPIs targets Inventory of bottlenecks and opportunities in Communication support achieving aligned Desired behavior? behavior Linking Alignment KPI’s to performance Benefits employees? Increase performance
  5. 5. Alignment with what?• What is the core of the corporate strategy?• Which four building blocks matter most?• For Telefonica this implies:
  6. 6. Who needs to be aligned? • Who has to be aligned first? Everybody? Only the Top? One division specifically? • To be determined based on nature business problem: which employees matter most in solving the business challenge?
  7. 7. What is the desired behavior? Firm Perspective and Employee PerspectiveWhat does FedEx want couriers to do? What drives a courier?• What does the Access strategy mean for them? • Making every FedEx experience outstanding • I receive respect for what I am doing• How many packages a day? The purple promise from my firm • 10 instead of 12 if you have to spent • Customers love FedEx and that extra time“I justified by service FedEx experience outstanding” too will make every increases respect for me• What is acceptable when delivering extra service? • I have career opportunties within • Explaining mistakes, solving problems caused FedEx if I encourage customer by the firm, etc. satisfaction• What is not acceptable? • Reducing the amount of deliveries and still not providing added value in service
  8. 8. Desired behavior at a Utility company?• What are employees supposed to do? Be specific as a firm.• Plus, do take into consideration what will be beneficial for the employee.• The more you stress the added value of the new strategy for the employee in internal messaging, the more aligned they will be. A non-aligned mechanic: An aligned mechanic- Considers sustainability to be just - Believes in the Sustainability another catch phrase strategy- Is not willing to take any extra - Acknowledges that (s)he needs training training to keep up-to-date with the- Continuous working based on latest technologies and ensures demanded output by his manager his/her own future by doing so (e.g. number of customer visits per - Explains sustainable energy to day) customers - Is motivated by customer satisfaction
  9. 9. Step 1: Know Before You Go How to assess Alignment with Alignment with desired what? whom? behavior?
  10. 10. Step 2 Revealing Support & ResistanceIn general…. employees will show three types of reactions towards a new strategy…. 10% has a positive 20% has a negative 70% is indecisive whetherperception of the strategy, perception of the strategy, to support the strategy, they fully support the they will never support the they need to be persuaded strategy strategy
  11. 11. ….. however, you have to know who is in which group?So, measure the facts by using the RepTrak™ Alignment Monitor 1 - Intranet-based survey among a stratified sample in the firm. - Aimed at (1) revealing the degree of 2 employee support for the strategy. - Aimed at (2) showcasing what works and what doesn’t work regarding informing, motivating and capability development. 3
  12. 12. Step 3: ACTION PLANImplementing the right tools at the right moment Implementing Soft tools Implementing Hard tools Alignment Launching the Strategy Time
  13. 13. Step 3: Balancing hard and soft wired initiatives Assessing strategic options using the gathered intelligence Negotiation Confrontation Consulting Mirroring • Presentations and negotiations with Unions • Unavoidable exposure by internal messaging • Presentations and negotiations with Working • Using Corporate Adds to persuade internal Council(s) audiences • Allocating Coaches to key managers aimed at adjusting role behavior Consensus Power Play • Town Hall meetings • New organizational structures and decision • Management Meetings making procedures • Jam Sessions • Appointing new managers in key roles • Capability development in Internal Training Programs • New appraisal rules
  14. 14. Step 3: Who does what? Sell their vision it to the rest of the Top Management organization Communication & HR Marketing Who does Internal communication Expose employees to external what? campaigns Accounting Information TechnologyUse reporting & appraisals format forcing Facilitate vertical andalignment horizontal communication
  15. 15. Step 4: Key Performance Indicators Introducing KPI’s using RepTrak™Alignment Monitor Examination of historical performance, using RepTrak Alignment Monitor over 1 two to three years (past) Extrapolating key drivers of Extrapolating KPI’s on aligned 2 alignment for next years (future) 3 behavior for the next years (future) KPIs INFORMING Realized KPI EMPLOYEE ALIGNMENT Goal 2012 Goal 2013 Goal 2014 2012 2013 2014 2011 RealizedManager leads by example 55.3 56.9 58.5 60.0 Goal 2012 Goal 2013 Goal 2014 KPIs MOTIVATING 2011 Realized 2011 Goal 2012 Goal 2013 Goal 2014 Alignment 55.2 56.8 58.4 60.0Regular conversations manager 49.6 51.1 52.6 54.1 KPIs CAPABILITY DEVELOPMENT Realized 2012 2013 2014 Goal 2012 Goal 2013 Goal 2014 2011Sufficient authorization 51.3 52.9 54.5 56.1Sufficient recognition 55.3 56.9 58.5 60.1Sufficient rewarded 47.3 48.9 50.5 52.1
  16. 16. Wrap up • Aligned employees increase performance substantially • Building and maintaining an aligned workforce requires a four step approach: Phase I: Phase II: Phase III: Phase IV:Know Before You Go Revealing Action Plan Tracking Progress Support & Resistance

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