Monetizing Employee Engagement


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Monetizing Employee Engagement

  1. 1. M o n e t iz in gE ng a g e me nt Stanley Labovitz, CEO 1-866-616-5552 All rights reserved, 2012 1
  2. 2. “ If y o u r e n g a g e m e n t s u r v e y p r o c e s s d o e s n ’ t m o v e yo u r o r g a n iz a t io n t o w a r d p o s it iv e c h a n g e , t h e n s o m e w h e r e a lo n gt h e w a y y o u h a v e m is s e d a s t e p ”P O S IT IV E C H A N G E H A P P E N S W IT H E NGA GE M E NT 2
  3. 3. E ng a g e me nt a nd the B o t t o m lin e A 5 0 % s p r e a d in o b s e r v e d p e rfo rm a n c eC o m p a n ie s w it h h ig h le v e ls o f P e o p le e n g a g e m e n t im p r o v e d 19 . 2 %C o m p a n ie s w it h lo w le v e ls o f P e o p le e n g a g e m e n t d e c lin e d 3 2 .7 % Towers Watson 3
  4. 4. E ng a g e me nt a nd theB o t t o m lin e G r o w t h /C o m p e t i t i v e n e s s Th e g r o w th r a te o fo r g a n iz a t io n s w it he ng a g e me nt s c ore sin t h e t o p q u a r t ilew a s 2 . 6 t im e sg re a te r tha no r g a n iz a t io n s w it hb e lo w a v e r a g es c ore s . 4
  5. 5. E ng a g e me nt a nd t h e B o t t o m lin eP r o d u c t iv it yE n g a g e d p e o p lea r e c o n s is t e n t lym o r e p r o d u c t iv e ,p r o f it a b le , s a f e r ,h e a lt h ie r , a n d87% le s s lik e lyt o le a v e t h e ire m p lo y e r .Corporate Leadership Council 5
  6. 6. Wa n t M o r e ? HEALDSBURG, CA, May 16, 2012 Reporting from the 2012 ASTD Conference (American Society for Training & Development): Annual losses in lost productivity from ‘actively disengaged’ employees have risen to $328 billion.The study compared the attitudes of ‘engaged employees’ – those who work with passion and feel connected to thecompany; ‘not-engaged employees’ – unhappy employees who put time, but not energy or passion into their work; and ‘actively disengaged employees’ – employees who are not just unhappy, but are actively acting out their unhappiness. 6
  7. 7. S t ill N o t C o n v in c e d ?• Businesses with more engaged employees have 51% higher productivity (Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2)• Businesses with higher engagement have 9% higher shareholder returns (Towers Watson, 2009)• Companies with the most effective employee communication have 47% higher shareholder returns over the last five years (Towers Watson, 2010)• Engaged employees outperform disengaged employees by 20-28% (The Conference Board)• Organizations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in companies with disengaged employees (Towers Perrin, 2008) 7
  8. 8. How about now?• Employer understanding of the business strategy and how their work contributes to company performance is one of the top drivers of engagement (The Conference Board, 2006)• Almost 2/3 of all employees are 33% as productive as they could be because they don’t understand what they are being asked to do (The Conference Board, 2006)• 80% of employees with a high degree of trust in management are committed to the organization, compared with 25% of employees with a low degree of trust (Center for Creative Leadership)• In organizations with highly engaged employees the share prices rose by an average of 16%compared with an industry average of 6% (Serota Consulting, 2005)• Highly engaged employees have less absence days – in average 3 to 5 days 8
  9. 9. Engagement is one of those key Building blocks to profitability; a prerequisite to aligning your Organization to your customer D r . G e o r g e L a b o v i t z , P o w e r o f A l i g n m e n t , W i l e y 19 9 8 9
  10. 10. W h y In t e r t w in e E ng a g e me nt a nd A lig n m e n t ? Sustained Growth & Profit are achievedby creating consistent alignment between “engaged” people, A N D “the business drivers” of customers, strategy and process. D r . G e o r g e L a b o v it z , P o w e r o f A lig n m e n t 10
  11. 11. S t e p s t o Im p le m e n t E ng a g e me nt a n d A lig n m e n t o n g a ti t in o r m a f re nsC a T r
  12. 12. is Ali e nt gn m ge Is b me gaE n ur e us nt ine cu lt ss Implementation Is hard ManP rofit are age rsi s at h and key 12
  13. 13. “Organizations themselves need to break the gridlock of an existing culture cycle and re- energize the people to move forward in the right direction!” 13
  14. 14. Im p le m e n t a t io n N e e d s 14
  15. 15. M a n a g e r s /S u p e r v i s o r sM a n a g e r s C o n t r o l t h e Im p le m e n t a t io n 15
  16. 16. P e o p leM a n a g e r s E n e r g iz e 16
  17. 17. L e a d e r s h ipIm p a c t o n t h e o r g a n iz a t io n 17
  18. 18. How do you MEASUREengagement? 18
  19. 19. In f o T o o l’ s M e a s u r e m e n t S ys te m ENGAGEMENT A L IG N M E N T •Communications Trust and Integrity •Organizational pride Growth Opportunity •Innovation Pride in the organization •Process Relationship with Leader •Performance Management Line of Sight •Customer Focus Nature of work •Leadership Development •Loyalty Co Worker Relationship •Visionary Leadership Personal Development •Technology •Great Place to Work 19
  20. 20. T h e E n g a g e m e n t /A l i g n m e n t S u r v e y 8 Engagement Measures12 AlignmentMeasures 20
  21. 21. S u r v e y a s k e d : O v e r a ll, I f e e l w e h a v eu n d e r g o n e a p o s it iv e c h a n g e t h a t h a s im p r o v e d m y w o r k c o n d it io n s : 3 s e le c t io n s : A G r e a t D e a l, M a y b e , N o t R e a lly A GREAT DEAL: “Great Place to work” High Score 88 Overall Engagement-75 21
  22. 22. O v e r a ll, I f e e l w e h a v e u n d e r g o n e a p o s it iv e c h a n g e t h a t h a s im p r o v e d m y w o r k c o n d it io n s NOT REALLY “ A G re a t P la c e t o W o r k ” -L o w S c ore of 6 1 Ov e r a l l E n g a g e me n t - 4 8 22
  23. 23. InfoTool Survey Engine Amazingly Insightful See Actions for Each Workgroup 23
  24. 24. Infotool’s Engagement &Alignment Analysis• Strength and Weakness reports for every manager, department and job function• Performance variations• Birdseye view of culture• Action planning by importance measures• Unlimited demographic slicing• Aggregate and intersect demographic groups 24
  25. 25. Who We Are – InfoTool’s Team George Labovitz: Expert in Organization Dynamics Dr. Labovitz is the Founder and CEO of Organizational Dynamics, Inc. (ODI). He counsels corporate executives on organizational alignment and integration strategies and quality management. He is also professor of management and organizational behavior at Boston Universitys School of Management. He has published or contributed to management articles in Fortune, the Wall Street Journal, Quality Progress, and Quality Management in Healthcare. He is also co-author of Making Quality Work (Harper Business, 1993) andSnapshot: The Power of Alignment (John Wiley & Sons, Inc. 1997). ODI was chosen by the United States Postal Service as the Quality Supplier Award Winner in the• Pioneer in OD small service company category from among 60,000 suppliers. ODIs healthcare division provides Total Quality Management services to over 240 medical centers in the U.S. and Europe.• Dr. Labovitz has presented keynote George has been a Distinguished Visiting Lecturer at the Naval, Air Force and Army War addresses to Colleges. He holds a BS from Boston University, an MBA from Boston College, and a Ph.D. from diverse audiences Ohio State University. throughout the world, including the American George will assist in the interpretation of Results in the Reporting stages as required. Hospital Association, the American College of Healthcare Executive and The Healthcare Forum. 25
  26. 26. Who We Are – InfoTool’s Team Stan Labovitz: Technology and Engagement Consultant Stanley Labovitz, the architect and CEO of the InfoTool Organizational Analysis Tool, and was an active OD consultant for 15 years with Organizational Dynamics, Inc (ODI). In 2002, Labovitz founded InfoTool with a vision of providing leadership the tools to effective manage the journey to alignment. InfoTool has represented fortune 1000 companies, worldwide, with locations in five countries and has become recognized as an expert in Change Management. Stan has employed InfoTool with Fortune 100 companies, including the Agriculture Department and the Business Transformation Agency of the DOD, Staples, Genzyme Corporation, and many Snapshot: others. Throughout the world, much of his work has been related to employee engagement, customer focused change behaviours, leadership and alignment including those for energy • Architect of the companies such as Pengrowth Oil, Projex and EPRI. He is considered as an expert by his peers InfoTool in survey design, analysis and culture change. • Extensive Sted Marketing Research has obtained a license to use InfoTool under its Dynamifx name, and experience in all has crafted a set of employment engagement questions, accompanied by a codified approach to aspects of analysis and reporting. employment engagement studies Stan will serve as the Program’s Technology and Training Consultant, at both the Survey • Consulted to client Process and Execution and Results Reporting stages. end-users on the tool’s execution, analytics and implementation 26