MAHA Global and IPR: Do Actions Speak Louder Than Words?
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
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
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
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
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
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
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
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
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
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
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
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
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
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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
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