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http://www.wtg-ondemand.com/detail_webinar.asp?spcomp=359




                                          Nicholas J Higgins
                CEO, VaLUENTiS & Dean, Int’l School of HCM
                   DrHCMI MSc Fin (LBS) MBA (OBS) MCMI
                           WTG HR Webinar 17 May 2012




                                                                        1
A full audio version of this webinar can be downloaded for free from:
http://www.wtg-ondemand.com/detail_webinar.asp?spcomp=359

All rights reserved. No part of this presentation may be reproduced, translated, stored in a
retrieval system or transmitted in any form or by any means, electronic, mechanical,
photocopying, microfilming recording or otherwise without the express permission of the
author.

Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction.

© 2012




                                                                                               2
3
@   £9,000 per annum (see end)




                                 4
Models/Frameworks/Concepts used in the presentation
   1. The ‘Six Pillars’ for successful    9. The ‘Management Pathfinder’
      employee engagement                     (HCM15)
   2. The ‘EE100’                         10. The ‘esE’ model (2 x 2)
   3. An outcome based ‘EE definition’    11. Question-Statement (QS) typology
      (ACP)                                   design (or ‘how not to design’)
   4. The ‘P12’ (modes of productivity)   12. The ‘Sears model’ (1994)
   5. The ‘EESoF’ concept                 13. The VaLUENTiS EE-scenario model
   6. The ‘A-C’ Matrix (3 x 3)                example (2008)
      (a.k.a. ‘αβγ’ matrix)               14. The ‘EE playbook’
   7. The VaLUENTiS 5D EE model           15. The ‘Broken Windows Hypothesis’
   8. The ‘POP’ system model                  reapplied
                                          16. The ‘4-ball’ Organisation Practice
                                              model

                         (‘Deal with the Real’)




                                                                                   5
Employee Engagement ‘Starters for 10’
(to be or not…)
1. The term ‘employee engagement’ is used too broadly and inappropriately in too many
    cases (BE WARY)
2. Optimising employee engagement (as defined) is a continual, relentless challenge
    (BE READY)
3. There’s no ‘silver bullet’, ‘wave of the magic wand’, nor, for that matter, a ‘silver magic
    wand-bullet’ to improving employee engagement (BE REAL)
4. With employee engagement, measurement/evaluation is fundamental (BE SMART)
5. The responsibility for employee engagement lies with everybody in the organisation
    (BE MINDFUL)
6. Organisations can only achieve high levels of employee engagement by doing the ‘basics’
    constantly (and well) (BE RESILIENT)
7. The people expertise (‘the right stuff’) of line management is the single biggest factor
    (BE IN NO DOUBT)
8. The relationship between employee engagement and organisation performance is NOT
    linear, nor is it straightforward (BE OPEN-MINDED)
9. Most organisations have a disjointed or incomplete approach to employee engagement
    (BE ADVISED)
10. There are very few reported (if it all) cases of successful organisations with high employee
    engagement and high organisation performance over a period of time (in evidence-based
    terms) (BE CRITICAL)
                                                                                               6
                                                                                               6
‘Six pillars’ for successful employee engagement

                        • Grounded understanding of EE

                        • Working definition of EE

                        • Measurement wisdom

                        • Actioning infrastructure

          EE PLAYBOOK
                        • Dynamic EE-Performance ‘playbook’


       DELETE
                        • Competent leadership/management
                                                                                                 7
                                                                                                 7
© The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming
I
Grounded
understanding of
employee
engagement




                       8
“Question: Employee Engagement - Where do
you start?”




“Answer: At the beginning”
                                            9
Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003




                                                               10
                                                               10
3

                                                           1
                                                          “Organisations were
                                                          looking for a quick-win
                                                          means of improving
                                                          performance”

                                                                              2
                                                                             “Organisations were
                                                                             looking for a means
                                                                             to differentiate for
                                                                             hiring talent in PR
                                                                             terms”




Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003                                        11
                                                                                                    11
•   Embed an optimised people-productivity culture
              •   Attempt to mitigate against operational employment risk
              •   Means to collectively ‘evaluate’ line management
                  ‘competence’ /organisational HCM
              •   Provide benchmark data on the ‘soft’ area of operations
                  (quasi-audit)
              •   Provide rationale and objective focus for management
                  development programmes
              •   Means of providing intelligence and/or empirical evidence
                  used in conjunction with other organisation performance
                  data




   Second order
    (derivative)
rationale/spin-offs                     Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003   12
                                                                                                       12
1a Primary rationale
‘say/do/evidence’ exercise




                             13
1b Secondary rationale
‘say/do/evidence’ exercise




                             14
WEBINAR POLL 1
With regard to employee engagement, my organisation           (select one
                                                                 only)
is looking…
…for a means of improving performance                            

…for a means to differentiate hiring talent in PR terms          

…to embed an optimised people-productivity culture               

…to mitigate against operational employment risk                 
…for a means to collectively ‘evaluate’ line management
‘competence’
                                                                 

…to provide benchmark data on the ‘soft’ area of operations      
                                                                            15
Source: Follow-on question posed in VaLUENTiS ‘skunkworks’ 2003




                                                                  16
                                                                  16
“There is nothing
              so practical as a
                 good theory.”


Kurt Lewin




                                  17
                                  17
The concept of Employee Engagement:
      A synthesis of antecedent theories and empirical evidence with human capital
    management practice related to organisation performance – 100 years in the making

                                     •Leadership theory             •Decision-making theory
                        •Organisational ‘fit’ theory                       •Conflict theory                                           •Organisation performance &
                                                                                                                                        measurement*
                    •Commitment theory                                           •Trust theory
                                                                                                                                          •High performance work systems
    •Goal setting and task theory                                •Teams theory                 •Group theory                               Human Capital Management practice/systems:
         •Expectancy theory                                                                                                                   •Talent management
 •Equity (justice) theory                                                                                                                        •Performance management
  •Motivation theory                                                                                                                                  •Reward & recognition
    •Job satisfaction                                                                                                                                   •Employer brand
                                        Individual                    Immediate                       Wider                Organisation                    •Human capital retention
      •Needs theory
                                                                          Team                        Group                                             •Resourcing & selection
         •Trait theory
      •Social cognitive/                                                                                                                              •Training & Development
      self efficacy theory                                                                                                                        •Workforce diversity
  •Psychological contract                                                                                                                      •Leadership
        •Organisation Citizenship Behaviour                                                                                                 •Organisation design
                                                                   •Taylor - Scientific management
               •Emotional Intelligence                                                                                                    •Organisation communication
                                                                           •Munsterberg - Industrial psychology
                      •Behaviourism                                                                                                    •Organisation culture
                                                                                  •Fayol - Principles of management
                                •Cognitive dissonance
                                                                                          •Follett - Management relations/integration
                                           •Learning theory
                                                                                                      •Mayo/Hawthorne studies
                                                       •Wellbeing/Burnout
                                                                                                            •Lewin (MIT) - group dynamics/behaviour
                                                               •Other I/O psychology
                                                                                                                  •Likert – Management system/measurement scale
                                                                contributions
                                                                                                                        •Tavistock – Socio-technical systems
                                                                                                                              •McGregor Theory X/Y
                                                                                                                                     •Hertzberg – Two factor theory
                                                                                                                                             •Drucker – Practice of management
                                                                                                                                                                                        18
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                                                    •Kahn – Personal engagement
19
19
II
Working
definition of
employee
engagement




                     20
“Vision without
                   execution is
                 hallucination.”

Thomas Edison




                                   21
                                   21
“Employee engagement is an ‘outcome-
based’ concept.
It is the term used to describe the
degree to which employees can be
ascribed as ‘aligned’ and ‘committed’ to
an organisation such that they are at
their most productive.”
VaLUENTiS International School of HCM
2005




                                           22
‘Most productive’ meaning individuals are…
                                                                           More likely to
                             More likely to          More likely to        produce higher
                            achieve goals set        embrace set          grade/quality of
                                                       values             work (less errors)

  More likely to be        More likely to give
     flexible to           discretionary effort    More likely to ‘own’    More inclined to       More inclined to
organisation needs (if     above contractual       their development       input into ideas/      share knowledge
     equitable)                obligations                                    innovation


                                                                          Less likely to suffer
                           Less inclined to take   Less likely to move            stress            Less likely to
                                  days off              employer          (but more likely to         commit
                                                                           suffer burn-out)       fraud/sabotage




                         Known as the ‘P12 modes of productivity’…

                                                                                                                     23
                                                                                                                     23
poorly
communicated
reorganisation                       perceived
                    short-staffed reward inequity
                                                                       interpersonal
                                                         planned       conflict
                                                          training
                                                        cancelled

                                                                uncaring new            incentive
                                                                    boss               misalignment

enlarged role
           Well-received
          performance
          appraisal        hit personal
                           targets/        hit team
                           objectives      targets/
                                           objectives


                                                              salary                              enrolled on MD
                                                           increase                               programme



      Employee engagement as a sum of constant work
         ‘forces’ (EESoF model) illustrative vectors                                                           24
                                                                                                               24
Staff engagement: The challenge for organisations
               (The A-C Matrix)

          Fully
     congruent     Knows what to
                    do/achieve            Could do             Fully
                   but unlikely to         more             productive
                     achieve it                                                 “Only one box in
                                                                                nine reflects the
                                                                                constant ‘high bar’
                                                              Less than         challenge for
                    More likely to
 Individual’s                                                 optimally
                        have
                                       Job gets done         productive -       organisations in
  degree of         performance/
                                                            Could do more       optimising
  Alignment        capability issues
                                                                ‘well’          engagement across
                                                                                the workforce on a
                    Likely to have
                    performance,         More likely to                         daily basis”
                                                          High probability of
                      attitudinal       have objective
                                                            wasted effort/
                        and/or         and/or ‘potential’
                                                              frustration
                     behavioural            issues
  Incongruent           issues

                  Continuance           Degree of                  Affective
                                       Commitment                                © VaLUENTiS Ltd 2002-12   25
                                                                                                           25
Staff engagement: The challenge for organisations
               (The A-C Matrix)

          Fully
     congruent     Knows what to
                    do/achieve            Could do              Fully
                        5%
                   but unlikely to         15%
                                           more               15%
                                                            productive
                     achieve it


                                                              Less than
                    More likely to
 Individual’s                                                 optimally
                        have                                                    “Typical split”
  degree of            10%
                    performance/
                                       Job 25%
                                           gets done           10%
                                                             productive -
                                                            Could do more
  Alignment        capability issues
                                                                ‘well’

                    Likely to have
                    performance,         More likely to
                                                          High probability of
                      attitudinal       have objective
                       10%
                        and/or               5%
                                       and/or ‘potential’        5%
                                                            wasted effort/
                                                              frustration
                     behavioural            issues
  Incongruent           issues

                  Continuance           Degree of                  Affective
                                       Commitment                               © VaLUENTiS Ltd 2002-12   26
                                                                                                          26
© VaLUENTiS Ltd
                  27
                  27
Using a construct like the 5D (expanded)
    VaLUENTiS 5D Employee Engagement Framework

                 Line-of-Sight                            Work Environment


    Objectives awareness                                           Cultural elements
    Behaviour alignment                                              Team dynamics
    Role ‘fit’                                                       Communication
                                 Organisation operating
    Performance management              culture                           Resources
    Feedback                                                     Local management
    Capability                                                 Physical environment
                                   Organisation design
                                   Performance/talent
                                      management
    Remuneration equity          ‘Corporate’ Leadership          Career progression

    Bonus/incentives                 Communication                    Competencies
                                     Decision rights
    Benefits                           Work values              Succession planning

    Role equity                           Trust                Job/ Role architecture

    Recognition                                                   Training/ Learning

    Promotional aspects                                         Coaching/ Mentoring


             Reward (equity)                                Development


       © VaLUENTiS Ltd 2002-12
                                                                                        28
                                                                                        28
Think back to the EE box with the
‘underground map’ at the beginning…..




The five domains plus the connected
organisation performance aspect can be
thought of as six sides of the cube with their
connections resembling that similar to an
underground map                                  29
2 Organisation approach to defining
employee engagement exercise




                                      30
WEBINAR POLL 2
With regard to defining/adopting employee                                          (select one
                                                                                      only)
engagement, in my organisation…
…We researched a selection of empirical theories and distilled the essence
into our definition through a structured process                                      
…We based our definition/understanding on one base theory but no
structured process followed                                                           
…We adopted a definition ‘off- the-shelf’ that fits our view having gone
through a structured process                                                          
…We adopted a definition ‘off- the-shelf’ that fits our view but have not used a
structured process                                                                    

…Not sure what process we followed                                                    

…Don’t know/Haven’t done an exercise yet                                              
                                                                                                 31
III

Measurement
wisdom




                    32
“If you cannot
              measure it, you cannot
                  improve it.”


Lord Kelvin




                                       33
                                       33
The traditional view of employee engagement
   contributing to improved organisational
                 performance...



      Higher                         Higher
                     Higher
     employee                     organisation
                   productivity
    engagement                    performance




                                                 34
                                                 34
Human capital management practice and
employee engagement contributing to improved
  organisational performance (‘POP’ system)

    More effective
    human capital
     management




                                       Higher
                       Higher
                                    organisation
                     productivity
                                    performance



       Higher
      employee
     engagement



                                                   35
                                                   35
However, remember the converse.....


More ineffective
human capital
 management




                                     Lower
                      Lower
                                  organisation
                   productivity
                                  performance



    Lower
  employee
 engagement



                                                 36
                                                 36
Using a construct like the 5D (expanded)
    VaLUENTiS 5D Employee Engagement Framework

                 Line-of-Sight                            Work Environment


    Objectives awareness                                           Cultural elements
    Behaviour alignment                                              Team dynamics
    Role ‘fit’                                                       Communication
                                 Organisation operating
    Performance management              culture                           Resources
    Feedback                                                     Local management
    Capability                                                 Physical environment
                                   Organisation design
                                   Performance/talent
                                      management
    Remuneration equity          ‘Corporate’ Leadership          Career progression

    Bonus/incentives                 Communication                    Competencies
                                     Decision rights
    Benefits                           Work values              Succession planning

    Role equity                           Trust                Job/ Role architecture

    Recognition                                                   Training/ Learning

    Promotional aspects                                         Coaching/ Mentoring


             Reward (equity)                                Development


       © VaLUENTiS Ltd 2002-12
                                                                                        37
The concept of Employee Engagement:
      A synthesis of antecedent theories and empirical evidence with human capital
    management practice related to organisation performance – 100 years in the making

                                     •Leadership theory             •Decision-making theory
                        •Organisational ‘fit’ theory                       •Conflict theory                                           •Organisation performance &
                                                                                                                                        measurement*
                    •Commitment theory                                           •Trust theory
                                                                                                                                          •High performance work systems
    •Goal setting and task theory                                •Teams theory                 •Group theory                               Human Capital Management practice/systems:
         •Expectancy theory                                                                                                                   •Talent management
 •Equity (justice) theory                                                                                                                        •Performance management
  •Motivation theory                                                                                                                                  •Reward & recognition
    •Job satisfaction                                                                                                                                   •Employer brand
                                        Individual                    Immediate                       Wider                Organisation                    •Human capital retention
      •Needs theory
                                                                          Team                        Group                                             •Resourcing & selection
         •Trait theory
      •Social cognitive/                                                                                                                              •Training & Development
      self efficacy theory                                                                                                                        •Workforce diversity
  •Psychological contract                                                                                                                      •Leadership
        •Organisation Citizenship Behaviour                                                                                                 •Organisation design
                                                                   •Taylor - Scientific management
               •Emotional Intelligence                                                                                                    •Organisation communication
                                                                           •Munsterberg - Industrial psychology
                      •Behaviourism                                                                                                    •Organisation culture
                                                                                  •Fayol - Principles of management
                                •Cognitive dissonance
                                                                                          •Follett - Management relations/integration
                                           •Learning theory
                                                                                                      •Mayo/Hawthorne studies
                                                       •Wellbeing/Burnout
                                                                                                            •Lewin (MIT) - group dynamics/behaviour
                                                               •Other I/O psychology
                                                                                                                  •Likert – Management system/measurement scale
                                                                contributions
                                                                                                                        •Tavistock – Socio-technical systems
                                                                                                                              •McGregor Theory X/Y
                                                                                                                                     •Hertzberg – Two factor theory
                                                                                                                                             •Drucker – Practice of management
                                                                                                                                                                                        38
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                                                    •Kahn – Personal engagement
VaLUENTiS VB-HR Rating Level 2:
Management Pathfinder
                                                         TRAINING &
                                                                         DIVERSITY
                                                        DEVELOPMENT
                                         TALENT                                            EMPLOYEE
                                    MANAGEMENT
                                                                         813               CENTRICITY



                                                                                                        EMPLOYER
                            REWARD                                                                      BRAND
                                                                                674
                                                           599 416
                                               657
                                                                                615
                                                                                                           HR
                       RETENTION                                                                           GOVERNANCE
                                     742                                             431

                                                     684                             487
                                                                                                               HR
                       RESOURCING
                                                                               642
                                                                                                           OPERATIONAL
                                                  603        594                                           EXCELLENCE
                                                                         628
  ‘Out-performing’
  (world class)
  ‘Out-performing’          PERFORMANCE                                                          LEADERSHIP
  (peer)                     ORIENTATION
  ‘Comparable’
                                                                   796
  (peer)
                                           ORGANISATION                              ORGANISATION
  ‘Under-performing’                       DESIGN                                        CLIMATE
  (peer)                                                      ORGANISATION                                               39
                                                                                                                         39
                                                            COMMUNICATIONS
The employee survey expertise model
HIGH
HCM subject matter expertise




                                        Myopic                                   20/20 Foresight
                                            Result:                               Result: organisation has
                                   misleading or erroneous                       sufficient in-depth, robust
                                        interpretation                             knowledge to act upon




                                          Blind                                     Unfocused
                               Result: end up with ‘garbage in-            Limited insight due to limitations
                                   garbage out’ syndrome                          of HCM knowledge




                                Survey instrument design & measurement expertise
LOW                                                                                                             HIGH   40
                                                                  © ISHCM 2006                                         40
The employee survey expertise model
                                 (‘reality at the front’)
HIGH
 HCM subject matter expertise




                                                     Myopic                                                20/20 Foresight
                                                            16%                                                                 8%



                                                        Blind                                                      Unfocused
                                                          51%                                                                25%


                                        Survey instrument design & measurement expertise
LOW                                                                                                                                                      HIGH   41
                                                                                                                                                                41
                                Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7
X-axis: (part example) Q-S design error
typology for reference purposes
 I.      Leading questions
 II.     Double barrelled/multiple questions
 III.    Knowledge or projection (proxy)
 IV.     Response extremity
 V.      Responses open to social desirability/prestige
 VI.     Responses implying causality
 VII.    Questions that impose unwarranted assumptions
 VIII.   Questions that include hidden contingencies
 IX.     Questions that include ambiguous time periods
 X.      Questions containing concepts that are open to differing interpretation
 XI.     Question that duplicates another or is a reverse of another
 XII.    Questions requiring a tendency to acquiesce and/or imply ‘psychological threat or
         hostility
 XIII.   Questions that are exclusively positively or exclusively negatively clustered
 XIV.    Questions which are culturally loaded and or overly long

                                                                                             42
                                                                                             42
 Source: VaLUENTiS QS methodology 2003
43
43
3 Parameter ‘say/do/evidence’ exercise




                                         44
4 Employee Engagement construct
parameters exercise




                                  45
Before we move on….…
• Consider an organisation that prepares its
  accounts but doesn’t know how to measure its
  profit (or loss)….
• Would you consider this organisation to be
    a. Competent?
    b. Incompetent?

• I know of no case studies detailing such a chronic failure.

• Now consider organisations who conduct employee
  surveys but have no idea of what they’re actually
  measuring, particularly ‘engagement’….
• Would you consider these organisations to be
    a. Competent?
    b. Incompetent?

• I have witnessed many cases.
                                                                46
A look back at The original Sears ‘system’
                           model…



                            Employee                                                      Revenue
                            Retention                                                      Growth

Internal      Employee                     External      Customer      Customer
service      Satisfaction                  Service      Satisfaction    Loyalty
 quality                                    Value
                             Employee                                                    Profitability
                            Productivity




                                           Putting the Service-Profit chain to work
                                           Heskett, Jones, Loveman, Sasser Jr & Schlesinger
                                           Harvard Business Review Mar-Apr 1994




                                                                                                         47
Moving on from the Sears model…the EE
           scenario analytic models

                                                    Example ‘Macro’ model NHS version 1.20




   Leadership
    Leadership                                                                                                                         Trust
                                                                                                                                    Shareholder
                   Employer
                    Employer
        &&                                                                                                                         performance
                                                                                                                                        value
                     brand
                      brand
   governance
    governance


     Human
      Human       Work values                                                 Safety
                  Work values                                             Portfolio mix
     Capital
      Capital                                                                                  External
                  Line - of -sight                                       Clinicalselling        External      Patient
                                                                                                               Customer      Quality of
                                                                                                                              Revenue
    Practices
     Practices     Line - of -sight                                           X - treatment
                                                                                                             Satisfaction
                                                                                                              Satisfaction   services
                                                                                                                               Growth
                  Development           Staff
                                         Employee         Individual/      Patient focus
                   Development                             Individual/       Service             Value
                                      Engagement
                                       Engagement            team                                 Value
                      Reward
                       Reward                                 team        Prompt service
                                                                          Portfolio mix
                                                         Productivity
                                                          Productivity                        Proposition      Patient
                  Work environment
                   Work environment                                        Environment         Proposition     Customer      Use of Resources
                                                                            X - selling                      experience          Profitability
                                                                                                                Loyalty
                                                                            Community
                                                                              Service

                                       Staff
                                        Employee
                                       Retention
                                        Retention
                                                                         Compliance
                                                                          Compliance
       ‘Local’
        ‘Local’
     Management
     Management                                                          Cost control
                                                                          Cost control



© VaLUENTiS VBM Analytics methodology 2008-12                                                                                                     48
Moving on from the Sears model…
The EE operational model ‘data cube’




                                       49
The EE organisational model ‘data
          megacube’




                                    50
IV

Actioning
Infrastructure




                      51
“Face reality as it is,
                    not as it was,
                 or as you wish it
                            to be.”

Jack Welch




                                       52
                                       52
Employee Engagement - Actioning Infrastructure


                             1
           4




                                  2

               3




                                             53
Actioning Infrastructure
 (Purpose: ‘to embed’)

1. Supportive top leadership and ‘signalling’
2. ‘Interactive’ People management evaluation process map
3. Multi-survey mapping and planning overlay (x-connect)
4. EE related development /learning programmes & workshops
5. People Manager evaluation/appraisal (regular ‘practice runs’)
6. Defined ‘how to’ strategies around engagement elements
7. ‘Live’ Employee Engagement adapted QFD (‘House of Quality’)
8. Dedicated internal focus team or nominated ‘on-point’ person
9. Nominated People Manager Engagement champions
10.Organisation event logs
11.Links into wider organisation intelligence analytics
12.Wider communications/branding
                                                               54
Example from the field:
Continuous NHS staff and patient survey process (The PULSAR® design)
                                             Sample for                                                                                                                                                           Sample for
                                             macro DoH                                                                                                                                                            macro DoH
                                              research                                                                                                                                                             research




                                                                         Normally conducted in 2-week windows against selected samples

      Annual staff survey                                 Quarterly                                             Quarterly                      Quarterly                     Annual staff survey
                                                           ‘pulse’                                               ‘pulse’                        ‘pulse’
        across full Trust                                  sample                                                sample                         sample
                                                                                                                                                                              across full Trust                         ......
      population (census)                                  surveys                                               surveys                        surveys                         population
              Multivariate phase analysis




                                                           Multivariate phase analysis




                                                                                                                 Multivariate phase analysis




                                                                                                                                               Multivariate phase analysis




                                                                                                                                                                                   Multivariate phase analysis
                                            Synchronous phase reporting to assist in improving care/embedding engagement in Trusts linking
                                            to clinical, quality, management and financial outcomes - see VaLUENTiS NHS Floodlight System™
                                                                                       for example




             Quarterly                                    Quarterly                                             Quarterly                      Quarterly                          Quarterly
              patient                                      patient                                               patient                        patient                            patient
              ‘pulse’                                      ‘pulse’                                               ‘pulse’                        ‘pulse’                            ‘pulse’                              ......
             reporting                                    reporting                                             reporting                      reporting                          reporting


                                                          Continuous collection of patient feedback reported in quarterly ‘pulses’




                                            Sample for                                                                                                                                                           Sample for
                                            macro DoH                                    *Can be selected at any nominated point                                                                                 macro DoH
                                            feedback *                                                                                                                                                            feedback


                                                                                                                                                                                                                               55
 Source: Conducting staff and patient surveys in the NHS: A world class solution, VaLUENTiS white paper
V
Dynamic EE-
Performance
‘playbook’




                  56
The ‘Definitive EE’ Playbook




                                                          P
                                                          E
                                                          R
    Leadership
                 Goal alignment                           F
                                       Team development
                                                          O
                                                          R
                                                          M
                         Work environment                 A
                                                          N
Performance                                               C
appraisal     Managing                     Incentives     E
              conflict       Role design


                                                              57
                                                              57
EE playbook content

  Contents




                                                         Strategies
  1.    Engagement strategies
  2.    Engagement operating ‘system’ models and
        analytics templates
  3.    Question-statement selection and construct




                                                         Models
        design
  4.    Measurement index construction,
        maintenance and reporting
  5.    Engagement Driver Factor (EDF) analysis




                                                          Implementation
  6.    Engagement ‘forcefield’ analysis
  7.    EE project management methodology and
        flowcharts
  8.    Engagement ‘issue work-through’ tools
  9.    Management learning programme design and
        evaluative criteria




                                                         Learning
  10.   Engagement Transformation Programme (ETP)
        methodology
  11.   Core applied theory summary capsules
  12.   Human Capital Management framework




                         4                 EE playbook




                                                                           58
                                                                           58
5 Employee Engagement: Organisation
reality exercise




                                      59
VI
Competent
leadership/
management




                   60
“Management is doing
      things right. Leadership is
                  doing the right
                          things”

Peter Drucker




                                    61
                                    61
Engagement responses:
    Scoring high
                                                                             ‘The Good The OK and
      •Work and sense of personal accomplishment
      •Pride in working for the organisation
      •Opportunity to utilise skills
                                                                                         The Ugly’
      •Adequate training to perform the job
      •Personal values/company values aligned
      •Honesty and integrity in business activities
      •Accurate evaluation of performance in last appraisal


                                                                     Scoring midrange
                             •Physical working environment
                             •Adequate resources to work effectively
                             •Company values visible in the day-to-day activities of my team
                             •Receiving recognition for doing a good job
                             •Understanding how to get promoted
                             •Equity of being paid compared with others in organisation


                                            Scoring low
                                             •Company doing a good job in providing opportunities for advancement
                                             •Well-being of employees when management make important decisions
                                             •Senior management in touch with everyday issues
                                             •Equity of being paid compared with others in other companies who hold similar jobs
                                             •Clear communication of rationale behind promotion and career development


Source: VaLUENTiS Engagement database, collated since 2004
                                                                                                                                   62
                                                                                                                                   62
Please note: Actual Question-statements paraphrased for the purposes of this slide
Management – just how many have a ‘license’ to
                         manage....?

•      Managers are significantly under-qualified compared to other professional occupations: 41%
       of managers hold below a Level 2 qualification…….

•      …..Just 38.5% of managers and senior officials are qualified at level 4 and above, compared
       to 80.9% of those in other professional occupations.”

•      “It is estimated that the proportion of managers with management-related qualifications
       will not get much above 20 per cent in the longer term at the current rate of
       achievement……..

•      ….. The literature review revealed that there is a growing body of evidence showing the
       impact of not only management skills but management qualifications on productivity.”




    Source: The Value of Management Qualifications, Chartered Management Institute 2007          63
                                                                                                 63
Leadership & Management ‘reality gap’ – hot off the
        press....(confirming what is already known)

•      “According to the CIPD’s research1, 72% of employers report a deficit of leadership and
       management skills. However, the CIPD’s quarterly Employee Outlook survey of 2,000
       employees, released today, also suggests that one problem in tackling this skills deficit is
       that many managers don’t know how bad they are at managing people.”

•      “Eight out of ten managers say they think their staff are satisfied or very satisfied with them
       as a manager whereas just 58% of employees report this is the case. This ‘reality gap’
       matters as the survey finds a very clear link between employees who say they are satisfied
       or very satisfied with their manager and those that are engaged – i.e. willing to go the extra
       mile for their employer.”




    Source: Press release, Chartered Institute of Personnel & Development May 2012
    1CIPD/Cornerstone ‘Learning & Talent Development Survey 2012’
                                                                                                      64
                                                                                                      64
910
 ‘Line Management’
 engagement score by                                                               860

 percentile                                                          813

                                                     790

                                        760




                                                                    Management cadre sample 2010-11
                                              Sample size: 1400 managers representing 20,000 employees   65
                                                                                                         65
Source: VaLUENTiS Engagement database                                            Score range 200-1000
‘Line Management’ engagement scores ‘bell curve’

                                              Management cadre sample 2010-11
                                                    Sample size: 1400 managers
                                                  (employee population: 20,000)
                                                         Score range 200-1000




          14.5% below 1sd                              13.9% above 1sd

   200                                  738                                       1000

                                                                                    66
                                                                                    66
Source: VaLUENTiS Engagement database
The ‘Broken Windows’ hypothesis

The theory states that monitoring and maintaining urban
environments in a well-ordered condition may stop further
vandalism as well as an escalation into more serious crime.




                    Applied to engagement…

                     The theory states that monitoring and maintaining work
                     environments in a well-ordered management condition may stop
                     further engagement erosion as well as an escalation into more
                     serious disengagement issues.

                                                                                67
                                                                                67
Employee Engagement:
      Good people managers versus average managers......
...Good managers                                         ...Average/poor managers
    High probability of:                                     High probability/tendency of:
1. Being self-aware (score well on EI)                   1. Limited self-awareness
2. Treating staff as the organisation’s ,not their own   2. Treating staff as their own resource rather than
    ‘little army’                                            organisation’s
3. Being pro-active, forward looking and confident no    3. Being reactive, backward-looking and/or display
    matter the situation                                     uncertainty on too many occasions
4. Being knowledgeable of (successful) people-           4. Being limited in their understanding of people
    management approaches                                    management
5. Understanding the importance of clear one-to-one      5. Their communication too often being seen as vague or
    communication and being consistent                       inconsistent when interacting with staff
6. Getting results but not at the expense (or over-      6. Get results but tend to have higher absenteeism or
    reliance on good performers)                             turnover of staff
7. Making tough calls when required for the benefit of   7. Deferring tough calls, preferring to political expediency
    the team                                                 even at the expense of others
8. Don’t postpone/move important events such as          8. History of postponing or procrastinating on individual
    individual reviews/appraisals etc                        events such as individual reviews/appraisals
9. Understanding that most managerial decision-making    9. Limited awareness of or disregard the equity principle
    is about equity in people situations/issues              when making managerial decisions
10. Taking a natural interest in people development      10. Show little interest in individual development save for
    above the mandatory level                                mandatory skill requirements
11. Challenging team performance in different ways       11. See team management as a ‘chore’
12. View management role as a ‘privilege’, not a right   12. View management role as a ‘right’, not a privilege      68
                                                                                                                     68
The ‘people competency’ of line management – the
                  organisation view......
...common problems                                       ...’fixes’
•    Lack of understanding across managers as to     •   Clear communicated framework of good people
     what good people management is and its              management practice together with learning
     impact                                              exposure

•    Varied mix of line managers with variation in   •   Utilise management competency platform with
     people practice and resulting issues                structured programme of learning and
                                                         assessments

•    No set bar to becoming line ‘people manager’,   •   Adopt ‘license to manage’ standard with
     i.e. no ‘license to manage’                         appropriate hurdles and gradings

•    Too many ‘B’-players in managerial positions    •   Instigate talent assessment where necessary,
     who limit employee engagement potential             with career option route-paths including exit

•    Too often, HR as ‘personnel function’           •   Assess if issue relates to cultural expectations,
     compensates for deficiencies                        vague HR role definition/value proposition or all
                                                         three, in conjunction with above actions
                                                                                                         69
                                                                                                         69
6 Management fix-implementation exercise




                                           70
WEBINAR POLL 3
In my organisation, there is…                                                    (select those
                                                                                 appropriate)

…a lack of understanding across managers as to what good people
management is and its impact                                                         
…a varied mix of line managers with variation in people practice and resulting
issues                                                                               

…No set bar to becoming line ‘people manager’, i.e. no ‘license to manage’           
…Too many ‘B’-players in managerial positions who limit employee
engagement potential                                                                 
…NO problem with people management expertise across our cohort of
managers                                                                             

…no comment due to lack of information/insight                                       
                                                                                                 71
Postscript




             72
“Things should be made as
                     simple as possible,
                        but no simpler.”



Albert Einstein




                                           73
                                           73
Organisations and employee engagement:
  The ‘4-ball’ practice model   ‘We don’t...’

                                                                                                 ‘It’s all about PR…’              Play down

                                                                                                                        Play act
                                                  ‘At least we audit/
                                                  benchmark...’
                                                                                                 Play safe

                        ‘We do it…’                                                                              The four progressive states of
                                                              Play make                                          employee engagement
                                                                                                                 embeddedness in organisations




© The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming                                                 74
                                                                                                                                               74
The ‘4-ball’ EE practice model matrix (expanded)
Pillar                              ‘PLAY DOWN’                        ‘PLAY ACT’                     ‘PLAY SAFE’                   ‘PLAY MAKE’

           Grounded
  I
                                                                                                      Exists in pockets with       Good working knowledge
           understanding of                                                 Limited.
                                              Little.                                                    variation in line            embedded across
           employee engagement                                     Mostly ephemeral in nature.
                                                                                                          management.                   organisation.

                                                                                                      Maybe borrowed with
 II        Working definition of                                      Most likely borrowed                                         Distributed ‘ownership’,
                                                                                                    internalisation or adapted
           employee engagement         No definition in use.       without any real ownership,                                    whether borrowed, adapted
                                                                                                    after some organisational
                                                                       or ‘false’ ownership.                                              or created.
                                                                                                               focus.
                                                                      Probably undertaking         Will do measurement basics,       People management
III
                                     Limited to absenteeism
           Measurement wisdom                                       surveys but with no valid          even to the extent of       evaluation/measurement
                                    metrics, employee surveys
                                                                   construct; response rate/PR       engagement index etc.        seen as ‘core’ on a par with
                                   seen as event driven if done.
                                                                           main focus.                Tick box is main focus.         CRM , finance etc.
                                                                   Probably in the form of basic      Will have a number of       Will have necessary ‘toolkit’
IV
                                   Probably in the form of basic
           Actioning                                                management courses. Most       actioning elements in place       to hand with ongoing
                                      training/management
           Infrastructure                                          likely carry out some form of    but not necessarily joined         programmes to suit
                                             courses.
                                                                       branded programme.                      up.                     organisation focus.
                                                                       May have something            Playbook in the form of       Easy access in different e-
 V         EE-Performance
           Playbook
                                          Does not exist.
                                                                    articulated on ‘strategies’.
                                                                     Most likely collection of
                                                                                                   ‘manager manual’ or on-line
                                                                                                   knowledge-share. Still being
                                                                                                                                      /physical formats at
                                                                                                                                    different levels. Signals
                                                                     irrelevant case studies.              developed.                 ‘embedded’ intent.
                                     Will have varied mix of         Will have varied mix of          Will have varied mix of        Cohort of well-trained
VI         Competent leadership/
           management
                                    skilled people managers.
                                    Existing good performers
                                                                    skilled people managers.
                                                                    Existing good performers
                                                                                                   skilled people managers but
                                                                                                   level of competency higher
                                                                                                                                  people managers exists with
                                                                                                                                      talent pools. Regular
                                       more through luck.              more through luck.          than Play-Act organisations.    evaluation/reinforcement.


Overall value to organisation
performance/competitive                 NEGATIVE                        NEGATIVE                        NEUTRAL                        POSITIVE
advantage
                                                                                                                                                                 75
WEBINAR POLL 4
Given the matrix definitions and attributes, I would say   (select one
                                                              only)
my organisation most resembles a…
…’PLAY-MAKER’                                                 

…’PLAY-SAFER’                                                 

…’PLAY-ACTOR’                                                 

…’PLAY-DOWNER’                                                




                                                                         76
‘Six pillars’ for successful employee engagement
  (to recap)

                        • Grounded understanding of EE

                        • Working definition of EE

                        • Measurement wisdom

                        • Actioning infrastructure

          EE PLAYBOOK
                        • Dynamic EE-Performance ‘playbook’


       DELETE
                        • Competent leadership/management
                                                                                                 77
                                                                                                 77
© The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming
@   £9,000 per annum




                       78
That’s what our clients, on average,
 save each year due to our focus on
outcome not over-focus on process!



                                       79
80
Nicholas J Higgins
nicholas.higgins@valuentis.com
VaLUENTiS Ltd, 2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
HO: +44 (0)207 887 6108
M: +44 (0)7811 404713

www.valuentis.com
www.ISHCM.com
www.HCglobal.blogspot.com




                                                   81
Smart. Smarter. Smartest...


   Professional Services
   www.valuentis.com

‘The leading human capital
 management specialists’
                                                                        ‘PEOPLE SCIENCE®’



                                         Organisation Intelligence
                                                  to
                                         improve organisation performance
                                                •   Human Capital Management Evaluation
                                                •   Employee Engagement
                                                •   Talent Management
                                                •   Workforce Productivity & Performance
                                                •   Predictive Analytics
                                                •   HC Forensics & Risk
                                                •   HR Function ROI Analysis
                                                •   Organisation Measurement
                                                •   Management Education
                                                •   Organisation Strategy


                             SOLUTIONS


                                                                                                       82

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Employee engagement and organisation performance pres final2 inc polls slideshare

  • 1. A full audio version of this webinar can be downloaded for free from: http://www.wtg-ondemand.com/detail_webinar.asp?spcomp=359 Nicholas J Higgins CEO, VaLUENTiS & Dean, Int’l School of HCM DrHCMI MSc Fin (LBS) MBA (OBS) MCMI WTG HR Webinar 17 May 2012 1
  • 2. A full audio version of this webinar can be downloaded for free from: http://www.wtg-ondemand.com/detail_webinar.asp?spcomp=359 All rights reserved. No part of this presentation may be reproduced, translated, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming recording or otherwise without the express permission of the author. Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction. © 2012 2
  • 3. 3
  • 4. @ £9,000 per annum (see end) 4
  • 5. Models/Frameworks/Concepts used in the presentation 1. The ‘Six Pillars’ for successful 9. The ‘Management Pathfinder’ employee engagement (HCM15) 2. The ‘EE100’ 10. The ‘esE’ model (2 x 2) 3. An outcome based ‘EE definition’ 11. Question-Statement (QS) typology (ACP) design (or ‘how not to design’) 4. The ‘P12’ (modes of productivity) 12. The ‘Sears model’ (1994) 5. The ‘EESoF’ concept 13. The VaLUENTiS EE-scenario model 6. The ‘A-C’ Matrix (3 x 3) example (2008) (a.k.a. ‘αβγ’ matrix) 14. The ‘EE playbook’ 7. The VaLUENTiS 5D EE model 15. The ‘Broken Windows Hypothesis’ 8. The ‘POP’ system model reapplied 16. The ‘4-ball’ Organisation Practice model (‘Deal with the Real’) 5
  • 6. Employee Engagement ‘Starters for 10’ (to be or not…) 1. The term ‘employee engagement’ is used too broadly and inappropriately in too many cases (BE WARY) 2. Optimising employee engagement (as defined) is a continual, relentless challenge (BE READY) 3. There’s no ‘silver bullet’, ‘wave of the magic wand’, nor, for that matter, a ‘silver magic wand-bullet’ to improving employee engagement (BE REAL) 4. With employee engagement, measurement/evaluation is fundamental (BE SMART) 5. The responsibility for employee engagement lies with everybody in the organisation (BE MINDFUL) 6. Organisations can only achieve high levels of employee engagement by doing the ‘basics’ constantly (and well) (BE RESILIENT) 7. The people expertise (‘the right stuff’) of line management is the single biggest factor (BE IN NO DOUBT) 8. The relationship between employee engagement and organisation performance is NOT linear, nor is it straightforward (BE OPEN-MINDED) 9. Most organisations have a disjointed or incomplete approach to employee engagement (BE ADVISED) 10. There are very few reported (if it all) cases of successful organisations with high employee engagement and high organisation performance over a period of time (in evidence-based terms) (BE CRITICAL) 6 6
  • 7. ‘Six pillars’ for successful employee engagement • Grounded understanding of EE • Working definition of EE • Measurement wisdom • Actioning infrastructure EE PLAYBOOK • Dynamic EE-Performance ‘playbook’ DELETE • Competent leadership/management 7 7 © The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming
  • 9. “Question: Employee Engagement - Where do you start?” “Answer: At the beginning” 9
  • 10. Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003 10 10
  • 11. 3 1 “Organisations were looking for a quick-win means of improving performance” 2 “Organisations were looking for a means to differentiate for hiring talent in PR terms” Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003 11 11
  • 12. Embed an optimised people-productivity culture • Attempt to mitigate against operational employment risk • Means to collectively ‘evaluate’ line management ‘competence’ /organisational HCM • Provide benchmark data on the ‘soft’ area of operations (quasi-audit) • Provide rationale and objective focus for management development programmes • Means of providing intelligence and/or empirical evidence used in conjunction with other organisation performance data Second order (derivative) rationale/spin-offs Source: Question posed in VaLUENTiS ‘skunkworks’ output 2003 12 12
  • 15. WEBINAR POLL 1 With regard to employee engagement, my organisation (select one only) is looking… …for a means of improving performance  …for a means to differentiate hiring talent in PR terms  …to embed an optimised people-productivity culture  …to mitigate against operational employment risk  …for a means to collectively ‘evaluate’ line management ‘competence’  …to provide benchmark data on the ‘soft’ area of operations  15
  • 16. Source: Follow-on question posed in VaLUENTiS ‘skunkworks’ 2003 16 16
  • 17. “There is nothing so practical as a good theory.” Kurt Lewin 17 17
  • 18. The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital management practice related to organisation performance – 100 years in the making •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y •Hertzberg – Two factor theory •Drucker – Practice of management 18 Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
  • 19. 19 19
  • 21. “Vision without execution is hallucination.” Thomas Edison 21 21
  • 22. “Employee engagement is an ‘outcome- based’ concept. It is the term used to describe the degree to which employees can be ascribed as ‘aligned’ and ‘committed’ to an organisation such that they are at their most productive.” VaLUENTiS International School of HCM 2005 22
  • 23. ‘Most productive’ meaning individuals are… More likely to More likely to More likely to produce higher achieve goals set embrace set grade/quality of values work (less errors) More likely to be More likely to give flexible to discretionary effort More likely to ‘own’ More inclined to More inclined to organisation needs (if above contractual their development input into ideas/ share knowledge equitable) obligations innovation Less likely to suffer Less inclined to take Less likely to move stress Less likely to days off employer (but more likely to commit suffer burn-out) fraud/sabotage Known as the ‘P12 modes of productivity’… 23 23
  • 24. poorly communicated reorganisation perceived short-staffed reward inequity interpersonal planned conflict training cancelled uncaring new incentive boss misalignment enlarged role Well-received performance appraisal hit personal targets/ hit team objectives targets/ objectives salary enrolled on MD increase programme Employee engagement as a sum of constant work ‘forces’ (EESoF model) illustrative vectors 24 24
  • 25. Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent Knows what to do/achieve Could do Fully but unlikely to more productive achieve it “Only one box in nine reflects the constant ‘high bar’ Less than challenge for More likely to Individual’s optimally have Job gets done productive - organisations in degree of performance/ Could do more optimising Alignment capability issues ‘well’ engagement across the workforce on a Likely to have performance, More likely to daily basis” High probability of attitudinal have objective wasted effort/ and/or and/or ‘potential’ frustration behavioural issues Incongruent issues Continuance Degree of Affective Commitment © VaLUENTiS Ltd 2002-12 25 25
  • 26. Staff engagement: The challenge for organisations (The A-C Matrix) Fully congruent Knows what to do/achieve Could do Fully 5% but unlikely to 15% more 15% productive achieve it Less than More likely to Individual’s optimally have “Typical split” degree of 10% performance/ Job 25% gets done 10% productive - Could do more Alignment capability issues ‘well’ Likely to have performance, More likely to High probability of attitudinal have objective 10% and/or 5% and/or ‘potential’ 5% wasted effort/ frustration behavioural issues Incongruent issues Continuance Degree of Affective Commitment © VaLUENTiS Ltd 2002-12 26 26
  • 28. Using a construct like the 5D (expanded) VaLUENTiS 5D Employee Engagement Framework Line-of-Sight Work Environment Objectives awareness Cultural elements Behaviour alignment Team dynamics Role ‘fit’ Communication Organisation operating Performance management culture Resources Feedback Local management Capability Physical environment Organisation design Performance/talent management Remuneration equity ‘Corporate’ Leadership Career progression Bonus/incentives Communication Competencies Decision rights Benefits Work values Succession planning Role equity Trust Job/ Role architecture Recognition Training/ Learning Promotional aspects Coaching/ Mentoring Reward (equity) Development © VaLUENTiS Ltd 2002-12 28 28
  • 29. Think back to the EE box with the ‘underground map’ at the beginning….. The five domains plus the connected organisation performance aspect can be thought of as six sides of the cube with their connections resembling that similar to an underground map 29
  • 30. 2 Organisation approach to defining employee engagement exercise 30
  • 31. WEBINAR POLL 2 With regard to defining/adopting employee (select one only) engagement, in my organisation… …We researched a selection of empirical theories and distilled the essence into our definition through a structured process  …We based our definition/understanding on one base theory but no structured process followed  …We adopted a definition ‘off- the-shelf’ that fits our view having gone through a structured process  …We adopted a definition ‘off- the-shelf’ that fits our view but have not used a structured process  …Not sure what process we followed  …Don’t know/Haven’t done an exercise yet  31
  • 33. “If you cannot measure it, you cannot improve it.” Lord Kelvin 33 33
  • 34. The traditional view of employee engagement contributing to improved organisational performance... Higher Higher Higher employee organisation productivity engagement performance 34 34
  • 35. Human capital management practice and employee engagement contributing to improved organisational performance (‘POP’ system) More effective human capital management Higher Higher organisation productivity performance Higher employee engagement 35 35
  • 36. However, remember the converse..... More ineffective human capital management Lower Lower organisation productivity performance Lower employee engagement 36 36
  • 37. Using a construct like the 5D (expanded) VaLUENTiS 5D Employee Engagement Framework Line-of-Sight Work Environment Objectives awareness Cultural elements Behaviour alignment Team dynamics Role ‘fit’ Communication Organisation operating Performance management culture Resources Feedback Local management Capability Physical environment Organisation design Performance/talent management Remuneration equity ‘Corporate’ Leadership Career progression Bonus/incentives Communication Competencies Decision rights Benefits Work values Succession planning Role equity Trust Job/ Role architecture Recognition Training/ Learning Promotional aspects Coaching/ Mentoring Reward (equity) Development © VaLUENTiS Ltd 2002-12 37
  • 38. The concept of Employee Engagement: A synthesis of antecedent theories and empirical evidence with human capital management practice related to organisation performance – 100 years in the making •Leadership theory •Decision-making theory •Organisational ‘fit’ theory •Conflict theory •Organisation performance & measurement* •Commitment theory •Trust theory •High performance work systems •Goal setting and task theory •Teams theory •Group theory Human Capital Management practice/systems: •Expectancy theory •Talent management •Equity (justice) theory •Performance management •Motivation theory •Reward & recognition •Job satisfaction •Employer brand Individual Immediate Wider Organisation •Human capital retention •Needs theory Team Group •Resourcing & selection •Trait theory •Social cognitive/ •Training & Development self efficacy theory •Workforce diversity •Psychological contract •Leadership •Organisation Citizenship Behaviour •Organisation design •Taylor - Scientific management •Emotional Intelligence •Organisation communication •Munsterberg - Industrial psychology •Behaviourism •Organisation culture •Fayol - Principles of management •Cognitive dissonance •Follett - Management relations/integration •Learning theory •Mayo/Hawthorne studies •Wellbeing/Burnout •Lewin (MIT) - group dynamics/behaviour •Other I/O psychology •Likert – Management system/measurement scale contributions •Tavistock – Socio-technical systems •McGregor Theory X/Y •Hertzberg – Two factor theory •Drucker – Practice of management 38 Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
  • 39. VaLUENTiS VB-HR Rating Level 2: Management Pathfinder TRAINING & DIVERSITY DEVELOPMENT TALENT EMPLOYEE MANAGEMENT 813 CENTRICITY EMPLOYER REWARD BRAND 674 599 416 657 615 HR RETENTION GOVERNANCE 742 431 684 487 HR RESOURCING 642 OPERATIONAL 603 594 EXCELLENCE 628 ‘Out-performing’ (world class) ‘Out-performing’ PERFORMANCE LEADERSHIP (peer) ORIENTATION ‘Comparable’ 796 (peer) ORGANISATION ORGANISATION ‘Under-performing’ DESIGN CLIMATE (peer) ORGANISATION 39 39 COMMUNICATIONS
  • 40. The employee survey expertise model HIGH HCM subject matter expertise Myopic 20/20 Foresight Result: Result: organisation has misleading or erroneous sufficient in-depth, robust interpretation knowledge to act upon Blind Unfocused Result: end up with ‘garbage in- Limited insight due to limitations garbage out’ syndrome of HCM knowledge Survey instrument design & measurement expertise LOW HIGH 40 © ISHCM 2006 40
  • 41. The employee survey expertise model (‘reality at the front’) HIGH HCM subject matter expertise Myopic 20/20 Foresight 16% 8% Blind Unfocused 51% 25% Survey instrument design & measurement expertise LOW HIGH 41 41 Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7
  • 42. X-axis: (part example) Q-S design error typology for reference purposes I. Leading questions II. Double barrelled/multiple questions III. Knowledge or projection (proxy) IV. Response extremity V. Responses open to social desirability/prestige VI. Responses implying causality VII. Questions that impose unwarranted assumptions VIII. Questions that include hidden contingencies IX. Questions that include ambiguous time periods X. Questions containing concepts that are open to differing interpretation XI. Question that duplicates another or is a reverse of another XII. Questions requiring a tendency to acquiesce and/or imply ‘psychological threat or hostility XIII. Questions that are exclusively positively or exclusively negatively clustered XIV. Questions which are culturally loaded and or overly long 42 42 Source: VaLUENTiS QS methodology 2003
  • 43. 43 43
  • 45. 4 Employee Engagement construct parameters exercise 45
  • 46. Before we move on….… • Consider an organisation that prepares its accounts but doesn’t know how to measure its profit (or loss)…. • Would you consider this organisation to be a. Competent? b. Incompetent? • I know of no case studies detailing such a chronic failure. • Now consider organisations who conduct employee surveys but have no idea of what they’re actually measuring, particularly ‘engagement’…. • Would you consider these organisations to be a. Competent? b. Incompetent? • I have witnessed many cases. 46
  • 47. A look back at The original Sears ‘system’ model… Employee Revenue Retention Growth Internal Employee External Customer Customer service Satisfaction Service Satisfaction Loyalty quality Value Employee Profitability Productivity Putting the Service-Profit chain to work Heskett, Jones, Loveman, Sasser Jr & Schlesinger Harvard Business Review Mar-Apr 1994 47
  • 48. Moving on from the Sears model…the EE scenario analytic models Example ‘Macro’ model NHS version 1.20 Leadership Leadership Trust Shareholder Employer Employer && performance value brand brand governance governance Human Human Work values Safety Work values Portfolio mix Capital Capital External Line - of -sight Clinicalselling External Patient Customer Quality of Revenue Practices Practices Line - of -sight X - treatment Satisfaction Satisfaction services Growth Development Staff Employee Individual/ Patient focus Development Individual/ Service Value Engagement Engagement team Value Reward Reward team Prompt service Portfolio mix Productivity Productivity Proposition Patient Work environment Work environment Environment Proposition Customer Use of Resources X - selling experience Profitability Loyalty Community Service Staff Employee Retention Retention Compliance Compliance ‘Local’ ‘Local’ Management Management Cost control Cost control © VaLUENTiS VBM Analytics methodology 2008-12 48
  • 49. Moving on from the Sears model… The EE operational model ‘data cube’ 49
  • 50. The EE organisational model ‘data megacube’ 50
  • 52. “Face reality as it is, not as it was, or as you wish it to be.” Jack Welch 52 52
  • 53. Employee Engagement - Actioning Infrastructure 1 4 2 3 53
  • 54. Actioning Infrastructure (Purpose: ‘to embed’) 1. Supportive top leadership and ‘signalling’ 2. ‘Interactive’ People management evaluation process map 3. Multi-survey mapping and planning overlay (x-connect) 4. EE related development /learning programmes & workshops 5. People Manager evaluation/appraisal (regular ‘practice runs’) 6. Defined ‘how to’ strategies around engagement elements 7. ‘Live’ Employee Engagement adapted QFD (‘House of Quality’) 8. Dedicated internal focus team or nominated ‘on-point’ person 9. Nominated People Manager Engagement champions 10.Organisation event logs 11.Links into wider organisation intelligence analytics 12.Wider communications/branding 54
  • 55. Example from the field: Continuous NHS staff and patient survey process (The PULSAR® design) Sample for Sample for macro DoH macro DoH research research Normally conducted in 2-week windows against selected samples Annual staff survey Quarterly Quarterly Quarterly Annual staff survey ‘pulse’ ‘pulse’ ‘pulse’ across full Trust sample sample sample across full Trust ...... population (census) surveys surveys surveys population Multivariate phase analysis Multivariate phase analysis Multivariate phase analysis Multivariate phase analysis Multivariate phase analysis Synchronous phase reporting to assist in improving care/embedding engagement in Trusts linking to clinical, quality, management and financial outcomes - see VaLUENTiS NHS Floodlight System™ for example Quarterly Quarterly Quarterly Quarterly Quarterly patient patient patient patient patient ‘pulse’ ‘pulse’ ‘pulse’ ‘pulse’ ‘pulse’ ...... reporting reporting reporting reporting reporting Continuous collection of patient feedback reported in quarterly ‘pulses’ Sample for Sample for macro DoH *Can be selected at any nominated point macro DoH feedback * feedback 55 Source: Conducting staff and patient surveys in the NHS: A world class solution, VaLUENTiS white paper
  • 57. The ‘Definitive EE’ Playbook P E R Leadership Goal alignment F Team development O R M Work environment A N Performance C appraisal Managing Incentives E conflict Role design 57 57
  • 58. EE playbook content Contents Strategies 1. Engagement strategies 2. Engagement operating ‘system’ models and analytics templates 3. Question-statement selection and construct Models design 4. Measurement index construction, maintenance and reporting 5. Engagement Driver Factor (EDF) analysis Implementation 6. Engagement ‘forcefield’ analysis 7. EE project management methodology and flowcharts 8. Engagement ‘issue work-through’ tools 9. Management learning programme design and evaluative criteria Learning 10. Engagement Transformation Programme (ETP) methodology 11. Core applied theory summary capsules 12. Human Capital Management framework 4 EE playbook 58 58
  • 59. 5 Employee Engagement: Organisation reality exercise 59
  • 61. “Management is doing things right. Leadership is doing the right things” Peter Drucker 61 61
  • 62. Engagement responses: Scoring high ‘The Good The OK and •Work and sense of personal accomplishment •Pride in working for the organisation •Opportunity to utilise skills The Ugly’ •Adequate training to perform the job •Personal values/company values aligned •Honesty and integrity in business activities •Accurate evaluation of performance in last appraisal Scoring midrange •Physical working environment •Adequate resources to work effectively •Company values visible in the day-to-day activities of my team •Receiving recognition for doing a good job •Understanding how to get promoted •Equity of being paid compared with others in organisation Scoring low •Company doing a good job in providing opportunities for advancement •Well-being of employees when management make important decisions •Senior management in touch with everyday issues •Equity of being paid compared with others in other companies who hold similar jobs •Clear communication of rationale behind promotion and career development Source: VaLUENTiS Engagement database, collated since 2004 62 62 Please note: Actual Question-statements paraphrased for the purposes of this slide
  • 63. Management – just how many have a ‘license’ to manage....? • Managers are significantly under-qualified compared to other professional occupations: 41% of managers hold below a Level 2 qualification……. • …..Just 38.5% of managers and senior officials are qualified at level 4 and above, compared to 80.9% of those in other professional occupations.” • “It is estimated that the proportion of managers with management-related qualifications will not get much above 20 per cent in the longer term at the current rate of achievement…….. • ….. The literature review revealed that there is a growing body of evidence showing the impact of not only management skills but management qualifications on productivity.” Source: The Value of Management Qualifications, Chartered Management Institute 2007 63 63
  • 64. Leadership & Management ‘reality gap’ – hot off the press....(confirming what is already known) • “According to the CIPD’s research1, 72% of employers report a deficit of leadership and management skills. However, the CIPD’s quarterly Employee Outlook survey of 2,000 employees, released today, also suggests that one problem in tackling this skills deficit is that many managers don’t know how bad they are at managing people.” • “Eight out of ten managers say they think their staff are satisfied or very satisfied with them as a manager whereas just 58% of employees report this is the case. This ‘reality gap’ matters as the survey finds a very clear link between employees who say they are satisfied or very satisfied with their manager and those that are engaged – i.e. willing to go the extra mile for their employer.” Source: Press release, Chartered Institute of Personnel & Development May 2012 1CIPD/Cornerstone ‘Learning & Talent Development Survey 2012’ 64 64
  • 65. 910 ‘Line Management’ engagement score by 860 percentile 813 790 760 Management cadre sample 2010-11 Sample size: 1400 managers representing 20,000 employees 65 65 Source: VaLUENTiS Engagement database Score range 200-1000
  • 66. ‘Line Management’ engagement scores ‘bell curve’ Management cadre sample 2010-11 Sample size: 1400 managers (employee population: 20,000) Score range 200-1000 14.5% below 1sd 13.9% above 1sd 200 738 1000 66 66 Source: VaLUENTiS Engagement database
  • 67. The ‘Broken Windows’ hypothesis The theory states that monitoring and maintaining urban environments in a well-ordered condition may stop further vandalism as well as an escalation into more serious crime. Applied to engagement… The theory states that monitoring and maintaining work environments in a well-ordered management condition may stop further engagement erosion as well as an escalation into more serious disengagement issues. 67 67
  • 68. Employee Engagement: Good people managers versus average managers...... ...Good managers ...Average/poor managers High probability of: High probability/tendency of: 1. Being self-aware (score well on EI) 1. Limited self-awareness 2. Treating staff as the organisation’s ,not their own 2. Treating staff as their own resource rather than ‘little army’ organisation’s 3. Being pro-active, forward looking and confident no 3. Being reactive, backward-looking and/or display matter the situation uncertainty on too many occasions 4. Being knowledgeable of (successful) people- 4. Being limited in their understanding of people management approaches management 5. Understanding the importance of clear one-to-one 5. Their communication too often being seen as vague or communication and being consistent inconsistent when interacting with staff 6. Getting results but not at the expense (or over- 6. Get results but tend to have higher absenteeism or reliance on good performers) turnover of staff 7. Making tough calls when required for the benefit of 7. Deferring tough calls, preferring to political expediency the team even at the expense of others 8. Don’t postpone/move important events such as 8. History of postponing or procrastinating on individual individual reviews/appraisals etc events such as individual reviews/appraisals 9. Understanding that most managerial decision-making 9. Limited awareness of or disregard the equity principle is about equity in people situations/issues when making managerial decisions 10. Taking a natural interest in people development 10. Show little interest in individual development save for above the mandatory level mandatory skill requirements 11. Challenging team performance in different ways 11. See team management as a ‘chore’ 12. View management role as a ‘privilege’, not a right 12. View management role as a ‘right’, not a privilege 68 68
  • 69. The ‘people competency’ of line management – the organisation view...... ...common problems ...’fixes’ • Lack of understanding across managers as to • Clear communicated framework of good people what good people management is and its management practice together with learning impact exposure • Varied mix of line managers with variation in • Utilise management competency platform with people practice and resulting issues structured programme of learning and assessments • No set bar to becoming line ‘people manager’, • Adopt ‘license to manage’ standard with i.e. no ‘license to manage’ appropriate hurdles and gradings • Too many ‘B’-players in managerial positions • Instigate talent assessment where necessary, who limit employee engagement potential with career option route-paths including exit • Too often, HR as ‘personnel function’ • Assess if issue relates to cultural expectations, compensates for deficiencies vague HR role definition/value proposition or all three, in conjunction with above actions 69 69
  • 71. WEBINAR POLL 3 In my organisation, there is… (select those appropriate) …a lack of understanding across managers as to what good people management is and its impact  …a varied mix of line managers with variation in people practice and resulting issues  …No set bar to becoming line ‘people manager’, i.e. no ‘license to manage’  …Too many ‘B’-players in managerial positions who limit employee engagement potential  …NO problem with people management expertise across our cohort of managers  …no comment due to lack of information/insight  71
  • 73. “Things should be made as simple as possible, but no simpler.” Albert Einstein 73 73
  • 74. Organisations and employee engagement: The ‘4-ball’ practice model ‘We don’t...’ ‘It’s all about PR…’ Play down Play act ‘At least we audit/ benchmark...’ Play safe ‘We do it…’ The four progressive states of Play make employee engagement embeddedness in organisations © The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming 74 74
  • 75. The ‘4-ball’ EE practice model matrix (expanded) Pillar ‘PLAY DOWN’ ‘PLAY ACT’ ‘PLAY SAFE’ ‘PLAY MAKE’ Grounded I Exists in pockets with Good working knowledge understanding of Limited. Little. variation in line embedded across employee engagement Mostly ephemeral in nature. management. organisation. Maybe borrowed with II Working definition of Most likely borrowed Distributed ‘ownership’, internalisation or adapted employee engagement No definition in use. without any real ownership, whether borrowed, adapted after some organisational or ‘false’ ownership. or created. focus. Probably undertaking Will do measurement basics, People management III Limited to absenteeism Measurement wisdom surveys but with no valid even to the extent of evaluation/measurement metrics, employee surveys construct; response rate/PR engagement index etc. seen as ‘core’ on a par with seen as event driven if done. main focus. Tick box is main focus. CRM , finance etc. Probably in the form of basic Will have a number of Will have necessary ‘toolkit’ IV Probably in the form of basic Actioning management courses. Most actioning elements in place to hand with ongoing training/management Infrastructure likely carry out some form of but not necessarily joined programmes to suit courses. branded programme. up. organisation focus. May have something Playbook in the form of Easy access in different e- V EE-Performance Playbook Does not exist. articulated on ‘strategies’. Most likely collection of ‘manager manual’ or on-line knowledge-share. Still being /physical formats at different levels. Signals irrelevant case studies. developed. ‘embedded’ intent. Will have varied mix of Will have varied mix of Will have varied mix of Cohort of well-trained VI Competent leadership/ management skilled people managers. Existing good performers skilled people managers. Existing good performers skilled people managers but level of competency higher people managers exists with talent pools. Regular more through luck. more through luck. than Play-Act organisations. evaluation/reinforcement. Overall value to organisation performance/competitive NEGATIVE NEGATIVE NEUTRAL POSITIVE advantage 75
  • 76. WEBINAR POLL 4 Given the matrix definitions and attributes, I would say (select one only) my organisation most resembles a… …’PLAY-MAKER’  …’PLAY-SAFER’  …’PLAY-ACTOR’  …’PLAY-DOWNER’  76
  • 77. ‘Six pillars’ for successful employee engagement (to recap) • Grounded understanding of EE • Working definition of EE • Measurement wisdom • Actioning infrastructure EE PLAYBOOK • Dynamic EE-Performance ‘playbook’ DELETE • Competent leadership/management 77 77 © The Definitive Guide to Employee Engagement, Nicholas J Higgins & G Cohen, 2012, forthcoming
  • 78. @ £9,000 per annum 78
  • 79. That’s what our clients, on average, save each year due to our focus on outcome not over-focus on process! 79
  • 80. 80
  • 81. Nicholas J Higgins nicholas.higgins@valuentis.com VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD HO: +44 (0)207 887 6108 M: +44 (0)7811 404713 www.valuentis.com www.ISHCM.com www.HCglobal.blogspot.com 81
  • 82. Smart. Smarter. Smartest... Professional Services www.valuentis.com ‘The leading human capital management specialists’ ‘PEOPLE SCIENCE®’ Organisation Intelligence to improve organisation performance • Human Capital Management Evaluation • Employee Engagement • Talent Management • Workforce Productivity & Performance • Predictive Analytics • HC Forensics & Risk • HR Function ROI Analysis • Organisation Measurement • Management Education • Organisation Strategy SOLUTIONS 82