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IBM Smarter Workforce Summit Toronto 2015: Calfrac's Journey to Improved Engagement
1. Our Story:
Calfrac’s Journey to Improved Engagement
1
IBM Smarter Workforce Summit
Toronto, ON | April 30, 2015
Rob Kearley
Director Human Resources International Operations
5. Our Story – Where We Operate
5
Canada Fleet:
17 Fracturing Spreads
394,000 Horsepower
17 Coiled Tubing Crews
U.S. Fleet:
15 Fracturing Spreads
699,000 Horsepower
18 Cementing Crews
5 Coiled Tubing Crews
Latin America Fleet:
91,000 Horsepower
13 Cementing Crews
7 Coiled Tubing Crews
Russia Fleet:
7 Fracturing Spreads
70,000 Horsepower
7 Coiled Tubing Crews
FACTS Founded
1999
Employees
+4,000
Countries
5
Headquarters
Calgary
Horsepower
1.3 Million
As at December 31, 2014
6. 2006
+ First multi-stage
fracturing treatment
of a horizontal well
is completed
2003
+ Calfrac implements the
Quintuplex Nitrogen
Pumper into operations
Our Story – A Brief History
6
1999
+ Calfrac begins operations
in Calgary, Alberta
2000
+ New equipment
transforms
business
2001
+ Customer-focused Lunch
& Learn sessions launched
2002
+ Calfrac enters the
US market with the
opening of a district
office in Colorado
2004
+ Calfrac becomes
a publicly traded
company on the
TSX
2005
+ Calfrac enters the Russia
market with two long-term
contracts
2007
+ Calfrac enters the
Latin America market
2008
+ Latin America
operations expand
with entry into
Argentina
2009
+ Calfrac wins Encana’s Safety &
Environmental Stewardship Award
2010
+ Calfrac wins
Shell’s Supplier
of the Year
Award
2011
+ Operations continue to expand
in the US and Latin America
2012
+ Calfrac starts
certification
process for
API Q2
2013
+ CERT, Calfrac’s online and
experiential training program for field
operators, is launched
2014
+ Calfrac launches The 15 Days of
Giving, a program focused on
volunteering time to local not-for-profits
2015
+ Calfrac’s journey
continues
7. The Key Drivers & Goals
Choosing Engagement Over Satisfaction
8. Survey Goals
• Global Participation
– Survey championed by CEO
– All Calfrac employees could participate
– Exceed 2010 Satisfaction Survey
participation rate (~50%)
• Data Quality and Reliability
– Results must be reliable and actionable
– Data had to be benchmarked (historically,
internally and vs. industry norm)
• Survey Results
– To managers: Develop a hierarchy that will
allow the survey results to be reported by
country; region; district; manager;
supervisor
– To employees: Provide timely, meaningful
feedback to all employees
Why an engagement survey?
• Company in transition
– Global company headquartered in
Canada
• Exponential growth
– Revenue, asset base, number of
employees and locations
• Culture change
– Global consistency, local flexibility
• Change in Leadership
– CEO, other executives and senior
managers
• Turnover and Attrition
– Understand how turnover and attrition
might be limiting growth
The Key Drivers
8
10. Conducting The Survey: The Challenge
10
Geography
Language(s)
Connectivity
Survey History
• 6 Countries
• 3 Continents
• 27 District and Regional Offices
• English
• Spanish (Mexico and Argentina)
• Russian
• 60% of employees without company email or in remote locations
• 90% of employees are field employees
• 40% of Canadian field employees are rotational
• 1st Company Wide Survey to reach all employees
• History of previous surveys
12. Key Findings
• Engagement ranks above industry
norm and is driven by:
– Confidence in the company’s future
– Trust in senior leadership
• Higher levels of engagement correlate
to lower annual turnover levels
• Employees extremely satisfied
with the level of customer orientation
• Nearly 9 out of 10 employees are confident in our HSE
commitment
• Managers are held in high regard, due in part to their support of
employee growth and development
12
And The Survey Says…
Highlights
• 80% participation
• Direct correlation to four
organizational KPIs
• Excellent results:
– Engagement 77% favourable
– Enablement Index 77%
– Manager Effectiveness 71%
13. ► Confidence in the future of Calfrac stands as the greatest driver of engagement
13
Themes: Future, Trust & Recognition
Future Vision Calfrac Diff vs. Norm
I believe Calfrac has an outstanding future. 85% +16*
I can see a clear link between my work and Calfrac's vision. 74% +4
Senior leadership has communicated a vision of the future that motivates me. 63% +8
*10 points or more above/below the IBM Norm is shaded
► Trust in senior leadership ranks well above the norm, propelled by a strong sense of confidence
in the future of the organization
Trust Calfrac Diff vs. Norm
I trust the senior leadership of Calfrac. 72% +13*
Calfrac shows a commitment to ethical business decisions and conduct. 79% +1
► Non-rotational employees more in agreement that their contribution is valued when compared to
their rotational counterparts (66% vs. 47%)
Recognition Calfrac Diff vs. Norm
Calfrac values my contribution. 64% +5
Calfrac recognizes outstanding performance. 61% +12*
14. ► Managers should provide frequent recognition to those who take on difficult workloads/shifts, in an
effort to further boost their satisfaction with their work/life balance
Work/Life Balance Calfrac Diff vs. Norm
This organization supports my efforts to balance work and personal responsibilities. 74% +5
► Communication emerged as a theme requiring attention
14
Themes: Balance & Communication
Communication Calfrac Diff vs. Norm
There is open and honest two-way communication at Calfrac. 58% +4
My ideas and suggestions count. 62% -1
*10 points or more above/below the IBM Norm is shaded
15. Engagement & Enablement
15
ADVOCACY
Willing to recommend
their company
COMMITMENT
Committed, rarely
thinking about leaving
PRIDE
Proud to work for
their company
SATISFACTION
Extremely satisfied with
their company
Employee Engagement
Measures how willing employees are to apply discretionary effort
Performance Enablement
Measures the extent to which employees can contribute to the firm
TEAMWORK
Employees cooperate to
drive results
QUALITY
Leaders focus on quality and
set performance standards
CUSTOMER
ACTIVATION
The company uses customer
feedback to improve
SKILL
DEVELOPMENT
Employees have the
training to perform
IBM Graphic
16. EMPLOYEE ENGAGEMENT
Analyzing the Results
16
The extent to which employees
are motivated to contribute to
organizational success and are
willing to apply discretionary
effort to accomplishing tasks
important to the achievement of
organizational goals
17. • Calfrac’s engagement level ranks well above the norm, acting
as a strong starting point
17
Compared to Industry Norm
70%
77%
19%
16%
11%
7%
IBM Norm
Calfrac
Favourable Neutral Unfavourable
18. Approach to segmenting the population is made during survey planning
– Calfrac wanted to see results by Division, District and Employee Type
– We further segmented by Team, Tenure and Job Status
18
Granularity of Results: Division & Employee Type
77%
88% 87% 86% 86%
74% 69% 63%
Overall (N=3,514) Div 1 Div 2 Div 3 Div 4 Div 5 Div 6 Div 7
77% 78%
63%
78%
90%
55%
Overall Regular Rotational (Canada) Rotational (Russia) Expat Temporary
Engagement By Division
Engagement By Employee Type
Key Finding: Correlation between most
engaged divisions and those that have
higher customer orientation scores
Key Finding: Non-Rotational employees are
more engaged than rotational employees
19. Data results can be analyzed in various ways
– Based on some of the decisions made during planning, we were able to correlate some survey
results to tenure and job status
19
Granularity of Results: Tenure & Job Status
77% 79% 79% 74% 78% 71% 71%
Overall >1 year 1-2 years 2-5 years 5-10 years 10-15 years 15-20 years
77% 77% 79% 73% 79%
Overall Full Time Part Time Hourly Salary
Engagement By Tenure
Engagement By Job Status
Key Finding: New employees among the most
engaged and engagement remains steady and
strong beyond initial year of service
Key Finding: Salaried employees somewhat more
engaged than hourly, due in part to their added
satisfaction with how their performance is recognized
20. Granularity of Results: By Team
20
IBM Norm < Average Average – < Top 25% Top 25% – < Top 10% > Top 10%
2014 Work
Teams N (%)
24 (20%) 8 (7%) 13 (11%) 74 (62%)
1% 1%
3%
1%
6%
8%
7%
13%
11%
13%
6%
18%
12%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
PercentageofWorkTeams
Work Team Engagement Percent Favorable Scores
IBM: Average = 70%
IBM: Top 25% = 74%
IBM: Top 10% = 79%
21. PERFORMANCE ENABLEMENT
Analyzing the Results
21
The extent to which an
organization is strongly
committed to high levels of
customer service and product
quality and relies upon
continuous improvement
practices to achieve superior
organizational results
22. Results show strong levels of performance enablement
– confidence in how customer feedback is used and how customer
problems are resolved (above the 90th percentile)
22
Performance Enablement Index
Calfrac Diff vs. IBM Norm
Overall Performance Enablement Index 77% +7
The people I work with cooperate to get the job done. 89% +8
I am appropriately involved in decisions that affect my work. 72% +7
I have the training I need to do my job effectively. 76% +7
Where I work, we set clear performance standards for product/service
quality.
77% +5
Senior leadership is committed to providing high-quality products and
services to external customers.
80% +5
Customer problems are dealt with quickly. 80% +13
We regularly use customer feedback to improve our processes. 68% +10
CustomerOrientation
*10 points or more above/below the IBM Norm is shaded
23. Below Potential
Committed but Frustrated Maximizing Capability
Process-Driven
Variability Among Divisions
23
Illustration adapted from IBM materials
Organization is not leveraging
employee passion
ACTION:
Focus on process
and infrastructure
Organization understands and
leverages its strengths
ACTION:
Focus on teaching
and maintaining strengths
Organization is not engaged or
enabled and is underperforming
ACTION:
Focus on engagement priorities
and enablement inhibitors
Organization considers how to
retain top talent and engage
employees for new breakthroughs
ACTION:
Focus on engaging employees
Performance Enablement Index HighLow
EmployeeEngagementIndexHighLow
24. 50%
60%
70%
80%
90%
50% 60% 70% 80% 90%
EmployeeEngagementIndex
Performance Enablement Index
Average Norm
Below Potential
Committed but Frustrated Maximizing Capability
Process-Driven
AverageNorm
Calfrac Overall
Variability Among Divisions
24
25. Pairing Engagement with Enablement
25
Future Vision
Trust in
Leadership
Recognition
Customer
Focus
Quality
Teamwork
Skill
Development
Employee
Engagement
Performance
Enablement
Optimize
Results
CalfracFocusAreas
Safety
Quality
Efficiency
CalfracSelectedKPIs
Turnover
26. MANAGER EFFECTIVENESS
Analyzing the Results
26
Extent to which
leaders enhance the
performance of their teams by
enhancing the level of
communication, accountability
and execution
27. • Top quartile managers have teams that are far more
engaged than their bottom quartile counterparts
27
Impact of Managers on Engagement
66%
70%
81%
89%
1st Quartile 2nd Quartile 3rd Quartile 4th Quartile
28. • Managers initially skeptical of how results impact their
business, so….
– We ran additional analysis with other company data to show
the links between engagement and enablement to key
performance indicators
28
Linking Engagement to KPIs
29. Linking Engagement to KPIs (cont.)
29
Engagement and Operational Efficiency Engagement and Service Quality
Impact of Engagement on Workplace Safety Impact of Enablement on Workplace Safety
9%
39%
5x4x
30. • We compared engagement survey results to turnover statistics to
identify correlations
– Turnover is 2x lower in locations with higher levels of engagement
30
Linking Engagement to Turnover
32. Action Plan Under Development
32
Future Trust
Recognition
(Contribution) Communications
Work Life
Balance
Executive Team • Continue to
highlight a
motivating future
• Emphasize the
steps to be taken
to realize vision
• Recognize the
districts and
departments for
achieving superior
results
• Talk about the future
and what it takes to
realize our vision
• … action to
be
identified…
Senior Managers • … action to be
identified…
• Remove
obstacles to high
performance
• Articulate the role
districts and
departments play
in Company
success
• … action to be
identified…
• … action to
be
identified…
District & Department
Managers
• … action to be
identified…
• Solicit feedback
on how to
enhance the
customer
experience
• … action to be
identified…
• Hold regular meetings
to foster open
communication
• … action to
be
identified…
Employees • … action to be
identified…
• … action to be
identified…
• … action to be
identified…
• Provide ongoing
feedback to managers
• … action to
be
identified…
33. Next Steps
• Continue to build out the action plan
• Re-engage the operations groups
• Manager effectiveness score
– Integrated into career development
plan
– Criteria in identifying high potential
managers
• Develop and implement ongoing
education explaining total
compensation
• Particular focus on activities that may
not have been required in a strong
market
Key Learnings
• Engagement is journey
not a destination
– Continue to track and
measure engagement
and enablement
– Add engagement and
turnover KPIs as key
metrics in the 2015
Strategic Plan
Key learnings and Next Steps
33
34. Robert (Rob) Kearley
Director, Human Resources, International Operations
403-698-8596
rkearley@calfrac.com
www.calfrac.com
34