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24th January
            Employee                and,                                   2012
People
Science®   Engagement                       nothing
                        the whole             but
                          truth,
               The
                                                         Tour
              truth,                            the
                                                         2012
                                              truth.




                                           Nicholas J Higgins
                                           CEO, VaLUENTiS & Dean, ISHCM
                                           DrHCMI MSc Fin (LBS) MBA (OBS) MCMI
                                           HR Directors Summit 2012
                                           ICC Birmingham
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
Due out
(finally)
   2012
Audience
participation
time!
„Is there an elephant in the room?‟
(Every time you see this slide)
Employee Engagement Agenda

• The Why and the What of engagement
• The How of measuring engagement
• Minding the gap (what’s going on here)
• Engagement & organisation performance
Organisations and employee engagement:
The 4-ball 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




                                                                        LOGO
Employee Engagement Agenda

• The Why and the What of engagement
Source: Question posed in VaLUENTiS „skunkworks‟ output 2003
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
Of course, this answer
was based on the
premise that most
organisations were not
optimising their people
management….
• 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
1a Primary rationale ‘say/do/evidence’
exercise




                                         LOGO
1b Secondary rationale ‘say/do/evidence’
exercise (limited to four)




                                           LOGO
Evidence that in fact the Primary reasons had swapped places (notwithstanding the
definitions and slightly confusing categories)




                                           Source: HR Employee Engagement survey 2010 HR magazine
Source: Follow-on question posed in VaLUENTiS „skunkworks‟ 2003
This question proved the more difficult to answer as you see. It became more clear
as more and more research was done that engagement was a concept (differing from
the Macleod review definition) that had been in the making for some time, stretching
back to Taylor‟s (much misunderstood work).

Employee engagement can be seen to have four levels: individual, immediate team,
wider group and organisational (the micro-, macro- and meso- levels).

Most, if not all of these theories have been subject to empirical evidence and a
number have received intense scrutiny. Some of the more well known ones have not
always stood up to such scrutiny but remain popular because of the acceptability of
the idea. A number of these theories overlap whilst some occasionally conflict as you
would expect. Amongst all of the contributing authors we‟ve picked out a dozen of
„the hard to ignore‟ variety.

In our view, the understanding of employee engagement became clearer to define
through distilling various contributions – „standing on the shoulders of giants‟, so to
speak. I‟d also point out that engagement as a concept is consistent with Kahn‟s
conclusions back in 1990 – his article being acknowledged as a reference point.

As „employee engagement‟ has grown in business focus we‟ve been concerned that
much published material/product on engagement has referenced so little with few
exceptions. Effectively, and collectively, as a movement „we‟ve‟ been selling
ourselves short, expending much energy on the reinvention of wheels, and, sewing
much confusion in the process (where have we heard that before?).

Incidentally little has changed on this slide over the past ten years save more
research in these subjects, notably wellbeing and burnout…….
Concept               Concept




               EMPLOYEE             Concept
Concept       ENGAGEMENT



                Concept
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                       •Organisation performance & measurement*
                         •Organisational „fit‟ theory               •Conflict theory                            •High performance work systems
                      •Commitment theory                                 •Trust theory                               Human Capital Management practice/systems:
        •Goal setting and task theory                      •Teams theory            •Group theory                        •Talent management
             •Expectancy theory                                                                                                •Performance management
      •Equity (justice) theory                                                                                                    •Reward & recognition
       •Motivation theory                                                                                                            •Employer brand
        •Job satisfaction                                                                                                             •Human capital retention
                                      Individual              Immediate                Wider               Organisation
          •Needs theory                                                                                                               •Resourcing & selection
                                                                  Team                 Group
             •Trait theory                                                                                                            •Training & Development
          •Social cognitive/                                                                                                         •Workforce diversity
          self efficacy theory                                                                                                      •Leadership
       •Psychological contract
                                                                                                                                •Organisation design
            •Organisation Citizenship Behaviour                                                                              •Organisation communication
                                                             •Taylor - Scientific management
                  •Emotional Intelligence                                                                               •Organisation culture
                                                                    •Munsterberg - Industrial psychology
                        •Behaviourism
                                                                          •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

Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                         •Drucker – Practice of management
Also in Employee Engagement: The Definitive Guide, forthcoming
                                                                                                                                    •Kahn – Personal engagement
“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
More likely to
                      More likely to          More likely to         produce higher
                      achieve goals           embrace set            grade/quality of
                           set                  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   above contractual      their development        input into ideas/     share knowledge
   (if equitable)        obligations                                    innovation


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




      ‘Most productive’ meaning…individuals are:
Our model incorporates five interlocking domains (constructs) which then provide an
overall primary construct.

The five domains can each provide sub-constructs depending on focus where
required.

When relating to surveys/questionnaires we remain consistent with Likert‟s original
meaning of scale, i.e. not the item response format which most have come to
mislabel but the use of the item response format against a defined construct….
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
I‟ve mentioned some of the greats – one of those being Kurt Lewin. He is mostly
remembered in the OD field with his forcefield analysis which has been much
imitated and applied in other contexts.

Employee engagement of an individual can be though of as a daily flow of constant
competing forces (vectors) affecting the individual‟s level as shown here with an
illustration.

Pragmatically, organisations have tended to make use of annual employee surveys
(in some cases quarterly etc) as a means of a proxy of gauging employee
engagement levels; it can be thought of as similar to finance producing accounts,
for example.

This type of approach provides for analysis, intervention and evaluation when looking
at engagement and I expect more and more of this application as organisations
finally get past „Go‟ in their approach to improving employee engagement...

Note I‟m not spending too much time on surveys and measurement in today‟s
presentation.
poorly
communicated
reorganisation                   perceived
                 short-staffed     reward
                                  inequity                       interpersonal
                                                    planned      conflict
                                                     training
                                                   cancelled

                                                            uncaring               incentive
                                                            new boss             misalignment

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


                                                        salary                             enrolled on MD
                                                     increase                              programme



Employee engagement as a sum of constant work
‘forces’ (illustrative vectors)
2 Organisation approach to defining
employee engagement exercise




                                      LOGO
LOGO
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                       •Organisation performance & measurement*
                         •Organisational „fit‟ theory               •Conflict theory                            •High performance work systems
                      •Commitment theory                                 •Trust theory                               Human Capital Management practice/systems:
        •Goal setting and task theory                      •Teams theory            •Group theory                        •Talent management
             •Expectancy theory                                                                                                •Performance management
      •Equity (justice) theory                                                                                                    •Reward & recognition
       •Motivation theory                                                                                                            •Employer brand
        •Job satisfaction                                                                                                             •Human capital retention
                                      Individual              Immediate                Wider               Organisation
          •Needs theory                                                                                                               •Resourcing & selection
                                                                  Team                 Group
             •Trait theory                                                                                                            •Training & Development
          •Social cognitive/                                                                                                         •Workforce diversity
          self efficacy theory                                                                                                      •Leadership
       •Psychological contract
                                                                                                                                •Organisation design
            •Organisation Citizenship Behaviour                                                                              •Organisation communication
                                                             •Taylor - Scientific management
                  •Emotional Intelligence                                                                               •Organisation culture
                                                                    •Munsterberg - Industrial psychology
                        •Behaviourism
                                                                          •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
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003                                 •Kahn – Personal engagement
Just a quick note – some of you may have spotted that the HCM elements associated
with the organisation (to the right of the diagram) bear a resemblance to our
management pathfinder evaluation and you would be right. This is in fact how it
came into being…..
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
                                                    COMMUNICATIONS
Employee Engagement Agenda


• The How of measuring engagement
Lord Kelvin
Requires
                                                                     Reverse engineering the
        a
    definition                                                       employee engagement
                                Requires
                                 some
                                                                     question…..
                               underlying
                               construct

                                                          Requires some
                                                             form of
                                                          measurement/
                                                            evaluation
                                                                                Requiring
                                                                                   better           Leveraging
                                                                                distributed          „positive‟
                                                                               leadership/         associations
                                                                               management             /events



                                                                           Minimising
                                                                            „negative           Through
                                                                          associations         improving
                                                                             /events‟         productivity


                                                                                                                    Improve
                                                                                                                   business
                                                                                                                  performance
                                                                                                                    through
                                                                                                                     people
Source: VaLUENTiS „skunkworks‟ simplified collective output 2003
I‟ve said I‟m only going to touch briefly on surveys and measurement today and I‟ll
keep my promise.

I just want to illustrate a model we introduced a few years back to highlight the
potential problems with employee engagement construct and survey design.

The Y-axis represents the breadth and balance of items (what we call question-
statements) included.

The X-axis represents the design and balance of the statements themselves and the
response format chosen.

The model shows four potential outcomes – only one of which is useful.

We would urge organisations to always check their design, whether provided
internally or externally. Coming up short on either axis is undesirable.

The last thing you want is to base interventions on potential G-I-G-O „blind‟
scenarios…..
The employee survey expertise model
HIGH
HCM subject matter expertise




                               Survey instrument design & measurement expertise
LOW                                                                                  HIGH
                                                                                  LOGO
                                                   © ISHCM 2006
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
                                                                                                               LOGO
                                                                  © ISHCM 2006
The employee survey expertise model
HIGH
 HCM subject matter expertise




                                                   Myopic                                           20/20 Foresight
                                                         16%                                                           8%



                                                      Blind                                                Unfocused
                                                      51%                                                           25%


                                       Survey instrument design & measurement expertise
LOW                                                                                                                                                         HIGH
                                                                                                                                                         LOGO
                                Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7
Y-axis: Breadth and balance of coverage required
        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
                                                                                           LOGO
Q-S (question-statement) design error
typology: avoiding the pitfalls
  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

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




                                         LOGO
4 Employee Engagement construct
parameters exercise




                                  LOGO
LOGO
Employee Engagement Agenda



• Minding the gap (what’s going on here)



                                           LOGO
LOGO
Staff engagement:
The challenge for organisations

        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
                 More likely to                   Less than        bar‟ challenge for
Individual‟s         have
                                   Job gets       optimally
                 performance/                    productive -      organisations in
 degree of                          done
                  capability                    Could do more      optimising
 Alignment          issues                          „well‟         engagement
                                                                   across the
                 Likely to have
                 performance,    More likely to High probability   workforce on a
                   attitudinal   have objective     of wasted      daily basis”
                     and/or     and/or „potential‟    effort/
                  behavioural        issues        frustration
  Incongruent        issues

                Continuance        Degree of           Affective
                                  Commitment                            © VaLUENTiS Ltd 2002-12
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
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
We along with others recognise the big factor in employee engagement – namely line
management.

What perhaps is not so recognised is the issue of engagement with individual
managers themselves.

It is extremely unlikely that highly engaged employees will be found working for
managers who have low engagement themselves. And even if they did – it wouldn‟t
be for long.

We recently took a random sample of manager engagement scores from our
database to provide a picture. The next two slides show the same data in two
different formats – the bell curve and percentile histogram.

I don‟t have time today to go into great detail but I would ask you note the 1 in 7
managers whose score is more than 1 (negative) standard deviation from the norm.

In this sample, 1 in 7 managers equates to about 3000 employees. That‟s a serious
concern…………….
‘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

 Source: VaLUENTiS Engagement database
910
‘Line Management’
engagement score by                                                          860

percentile (same study)                                         813

                                                  790

                                        760




                                                                    Management cadre sample 2010-11
                                              Sample size: 1400 managers representing 20,000 employees
Source: VaLUENTiS Engagement database                                            Score range 200-1000
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.
One other interesting application re line management I‟d like to touch on today – the
„Broken Windows‟ theory.

Some of you may be familiar with this – particularly if you‟ve read Malcolm Gladwell‟s
„The Tipping Point‟. The actual research dates back to 1982 with Wilson and Kelling‟s
work (and later Kelling and Coles) – the central tenet being that the monitoring and
maintaining of urban environments in a well-ordered condition may stop further
vandalism as well as an escalation into more serious crime; i.e. broken windows
beget more broken windows etc.

Though the theory has come in for some criticism – notably Harcourt, it remains a
powerful concept.

And thus for a moment I‟d like you to conceive the Broken Windows metaphor
applied to line management, switching a few words for appropriateness.

Rather revealing? And maybe useful for organisation messages.

Thus the manager who keeps, for example, (i) postponing an individual‟s appraisal,
(ii) late with signing off expenses, (iii) taking time off him/herself at short notice
whilst not tolerating others in the same manner, (iv) not confronting a persistent
lateness offender, (v) not instilling office tidiness and so on………well you get the
similarities……I‟m sure you can identify with many more……….

And whilst we‟re on the subject of line management and „license to manage‟ - here‟s
some common problems and some suggested fixes.

The question is do you recognise these and what fixes are taking place, or aren‟t
they?
The ‘people competency’ of line
management......
...common problems                              ...‟fixes‟
•   Lack of understanding across            •   Clear communicated framework of
    managers as to what good people             good people management practice
    management is and its impact                together with learning exposure

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

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

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

•   Too often, HR as „personnel function‟   •   Assess if issue relates to culture,
    compensates for deficiencies                vague role definition or both, in
                                                conjunction with above actions
5 Management fix-implementation exercise




                                      LOGO
LOGO
Employee Engagement Agenda




• Engagement & organisation performance
The traditional view of employee engagement
contributing to improved organisational
performance...



        Higher                        Higher
                      Higher
       employee                    organisation
                    productivity
      engagement                   performance
The emerging view of human capital management
practice and employee engagement contributing to
improved organisational performance (as a system)


      More effective
      human capital
       management




                                           Higher
                          Higher
                                        organisation
                        productivity
                                        performance



         Higher
        employee
       engagement
However, remember the converse.....



     More ineffective
     human capital
      management




                                          Lower
                           Lower
                                       organisation
                        productivity
                                       performance



        Lower
       employee
      engagement
So how do organisations go about improving employee engagement in a coordinated
coherent manner?

A very good question. Most case studies, or more precisely mini-case study capsules
provide little insight („the more and more providing less and less‟).

When we refer to case studies we refer to the Harvard-types used at the School
(ISHCM) or sometimes in our management workshops where much more learning
takes place.

Thus, increasingly, we‟re finding the „EE playbook‟, or „Definitive EE playbook‟ giving
its correct name, of great value.

The book in itself doesn‟t necessarily have to exist per se but the contents do.

I‟ve shown an example EE playbook on the next slide and examples of operating EE
system models, including the original Sears model which is now almost 20 years old
and how these types of models have advanced. Again I don‟t have time to go into
great detail today but you get the gist of what‟s its about.

I‟d like to think all HR departments have one though preferably it should be
distributed around the organisation. It‟s the symbolism here that counts as much as
the detail.
The ‘Definitive EE’ Playbook




                                                  P
                                                  E
                                                  R
      Leadership                                  F
                        Goal           Team       O
                   alignment        development   R
                                                  M
                                                  A
                      Work environment            N
                                                  C
  Performance                                     E
  appraisal   Managing              Incentives
              conflict    Role design
What organisations (HR) keep getting
wrong (this is a short ‘shortlist’)…




                                                       Strategies
        Contents

        1.    Engagement strategies
        2.    Engagement operating „system‟
              models and analytics templates
        3.    Question-statement selection and




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




                                                        Implementation
              analysis
        6.    Engagement „forcefield‟ analysis
        7.    EE project management methodology
              and flowcharts
        8.    Engagement „issue work-through‟




                                                       Learning
              tools
        9.    Management learning programme
              design and evaluative criteria
        10.   Engagement Transformation
              Programme (ETP) methodology
        11.   Core applied theory summary
              capsules
        12.   Human Capital Management
              framework
                            4            EE playbook
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
Moving on from the Sears model…



                                        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      Patient
               Line -of-sight                                      Clinical        External      Customer      Quality of
                                                                                                                Revenue
Practices
 Practices      Line -of-sight                                     X - selling
                                                                                                Satisfaction
                                                                  treatment                     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      UseProfitability
                                                                                                                  of Resources
                                                                   X - selling                  experience
                                                                                                   Loyalty
                                                                 Community
                                                                   Service

                                    Staff
                                    Employee
                                    Retention
                                    Retention
                                                                Compliance
                                                                Compliance
    „Local‟
     „Local‟
  Management
  Management                                                    Cost control
                                                                Cost control


                                                                                 © VaLUENTiS VBM Analytics methodology 2008-12
6 Employee Engagement: Organisation
reality exercise




                                      LOGO
We could spend a whole day just on this slide (but we’re not!)……




                                           Source: HR Employee Engagement survey 2010 HR magazine
Now you‟ve hopefully been completing the „quick and dirty‟ mini–exercises along the
way.

By now you should have a (little) more informed view of where your organisation (or
chosen organisation) is?

And so, to return to the beginning and the 4-ball model – the question is where is
your organisation?

PLAY-DOWN
PLAY-ACT
PLAY-SAFE
PLAY-MAKE?

Your initiation has begun………

Thank you.
Organisations and employee
engagement 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




                                                                            LOGO
Employee Engagement Agenda
• The truth
• The whole truth
• And nothing but the truth
  (well as we see it, anyway!)
Thanks for participating……

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Employee engagement pres plus annotation Nicholas J Higgins VaLUENTiS HR Directors Summit Jan2012 dist

  • 1. 24th January Employee and, 2012 People Science® Engagement nothing the whole but truth, The Tour truth, the 2012 truth. Nicholas J Higgins CEO, VaLUENTiS & Dean, ISHCM DrHCMI MSc Fin (LBS) MBA (OBS) MCMI HR Directors Summit 2012 ICC Birmingham
  • 2. 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
  • 3.
  • 6.
  • 7. „Is there an elephant in the room?‟ (Every time you see this slide)
  • 8. Employee Engagement Agenda • The Why and the What of engagement • The How of measuring engagement • Minding the gap (what’s going on here) • Engagement & organisation performance
  • 9. Organisations and employee engagement: The 4-ball 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 LOGO
  • 10. Employee Engagement Agenda • The Why and the What of engagement
  • 11. Source: Question posed in VaLUENTiS „skunkworks‟ output 2003
  • 12. 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
  • 13. Of course, this answer was based on the premise that most organisations were not optimising their people management….
  • 14. • 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
  • 15. 1a Primary rationale ‘say/do/evidence’ exercise LOGO
  • 16. 1b Secondary rationale ‘say/do/evidence’ exercise (limited to four) LOGO
  • 17. Evidence that in fact the Primary reasons had swapped places (notwithstanding the definitions and slightly confusing categories) Source: HR Employee Engagement survey 2010 HR magazine
  • 18.
  • 19. Source: Follow-on question posed in VaLUENTiS „skunkworks‟ 2003
  • 20. This question proved the more difficult to answer as you see. It became more clear as more and more research was done that engagement was a concept (differing from the Macleod review definition) that had been in the making for some time, stretching back to Taylor‟s (much misunderstood work). Employee engagement can be seen to have four levels: individual, immediate team, wider group and organisational (the micro-, macro- and meso- levels). Most, if not all of these theories have been subject to empirical evidence and a number have received intense scrutiny. Some of the more well known ones have not always stood up to such scrutiny but remain popular because of the acceptability of the idea. A number of these theories overlap whilst some occasionally conflict as you would expect. Amongst all of the contributing authors we‟ve picked out a dozen of „the hard to ignore‟ variety. In our view, the understanding of employee engagement became clearer to define through distilling various contributions – „standing on the shoulders of giants‟, so to speak. I‟d also point out that engagement as a concept is consistent with Kahn‟s conclusions back in 1990 – his article being acknowledged as a reference point. As „employee engagement‟ has grown in business focus we‟ve been concerned that much published material/product on engagement has referenced so little with few exceptions. Effectively, and collectively, as a movement „we‟ve‟ been selling ourselves short, expending much energy on the reinvention of wheels, and, sewing much confusion in the process (where have we heard that before?). Incidentally little has changed on this slide over the past ten years save more research in these subjects, notably wellbeing and burnout…….
  • 21. Concept Concept EMPLOYEE Concept Concept ENGAGEMENT Concept
  • 22. 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 •Organisation performance & measurement* •Organisational „fit‟ theory •Conflict theory •High performance work systems •Commitment theory •Trust theory Human Capital Management practice/systems: •Goal setting and task theory •Teams theory •Group theory •Talent management •Expectancy theory •Performance management •Equity (justice) theory •Reward & recognition •Motivation theory •Employer brand •Job satisfaction •Human capital retention Individual Immediate Wider Organisation •Needs theory •Resourcing & selection Team Group •Trait theory •Training & Development •Social cognitive/ •Workforce diversity self efficacy theory •Leadership •Psychological contract •Organisation design •Organisation Citizenship Behaviour •Organisation communication •Taylor - Scientific management •Emotional Intelligence •Organisation culture •Munsterberg - Industrial psychology •Behaviourism •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 Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Drucker – Practice of management Also in Employee Engagement: The Definitive Guide, forthcoming •Kahn – Personal engagement
  • 23. “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
  • 24. More likely to More likely to More likely to produce higher achieve goals embrace set grade/quality of set 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 above contractual their development input into ideas/ share knowledge (if equitable) obligations innovation Less likely to suffer Less inclined to Less likely to stress Less likely to take days off move employer (but more likely to commit suffer burn-out) fraud/sabotage ‘Most productive’ meaning…individuals are:
  • 25. Our model incorporates five interlocking domains (constructs) which then provide an overall primary construct. The five domains can each provide sub-constructs depending on focus where required. When relating to surveys/questionnaires we remain consistent with Likert‟s original meaning of scale, i.e. not the item response format which most have come to mislabel but the use of the item response format against a defined construct….
  • 26. 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
  • 27. I‟ve mentioned some of the greats – one of those being Kurt Lewin. He is mostly remembered in the OD field with his forcefield analysis which has been much imitated and applied in other contexts. Employee engagement of an individual can be though of as a daily flow of constant competing forces (vectors) affecting the individual‟s level as shown here with an illustration. Pragmatically, organisations have tended to make use of annual employee surveys (in some cases quarterly etc) as a means of a proxy of gauging employee engagement levels; it can be thought of as similar to finance producing accounts, for example. This type of approach provides for analysis, intervention and evaluation when looking at engagement and I expect more and more of this application as organisations finally get past „Go‟ in their approach to improving employee engagement... Note I‟m not spending too much time on surveys and measurement in today‟s presentation.
  • 28. poorly communicated reorganisation perceived short-staffed reward inequity interpersonal planned conflict training cancelled uncaring incentive new boss misalignment enlarged Well-received role performance appraisal hit personal hit team targets/ targets/ objectives objectives salary enrolled on MD increase programme Employee engagement as a sum of constant work ‘forces’ (illustrative vectors)
  • 29. 2 Organisation approach to defining employee engagement exercise LOGO
  • 30. LOGO
  • 31. 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 •Organisation performance & measurement* •Organisational „fit‟ theory •Conflict theory •High performance work systems •Commitment theory •Trust theory Human Capital Management practice/systems: •Goal setting and task theory •Teams theory •Group theory •Talent management •Expectancy theory •Performance management •Equity (justice) theory •Reward & recognition •Motivation theory •Employer brand •Job satisfaction •Human capital retention Individual Immediate Wider Organisation •Needs theory •Resourcing & selection Team Group •Trait theory •Training & Development •Social cognitive/ •Workforce diversity self efficacy theory •Leadership •Psychological contract •Organisation design •Organisation Citizenship Behaviour •Organisation communication •Taylor - Scientific management •Emotional Intelligence •Organisation culture •Munsterberg - Industrial psychology •Behaviourism •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 Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003 •Kahn – Personal engagement
  • 32. Just a quick note – some of you may have spotted that the HCM elements associated with the organisation (to the right of the diagram) bear a resemblance to our management pathfinder evaluation and you would be right. This is in fact how it came into being…..
  • 33. 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 COMMUNICATIONS
  • 34. Employee Engagement Agenda • The How of measuring engagement
  • 36. Requires Reverse engineering the a definition employee engagement Requires some question….. underlying construct Requires some form of measurement/ evaluation Requiring better Leveraging distributed „positive‟ leadership/ associations management /events Minimising „negative Through associations improving /events‟ productivity Improve business performance through people Source: VaLUENTiS „skunkworks‟ simplified collective output 2003
  • 37. I‟ve said I‟m only going to touch briefly on surveys and measurement today and I‟ll keep my promise. I just want to illustrate a model we introduced a few years back to highlight the potential problems with employee engagement construct and survey design. The Y-axis represents the breadth and balance of items (what we call question- statements) included. The X-axis represents the design and balance of the statements themselves and the response format chosen. The model shows four potential outcomes – only one of which is useful. We would urge organisations to always check their design, whether provided internally or externally. Coming up short on either axis is undesirable. The last thing you want is to base interventions on potential G-I-G-O „blind‟ scenarios…..
  • 38. The employee survey expertise model HIGH HCM subject matter expertise Survey instrument design & measurement expertise LOW HIGH LOGO © ISHCM 2006
  • 39. 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 LOGO © ISHCM 2006
  • 40. The employee survey expertise model HIGH HCM subject matter expertise Myopic 20/20 Foresight 16% 8% Blind Unfocused 51% 25% Survey instrument design & measurement expertise LOW HIGH LOGO Sample: 147 employee surveys. All organisations with over 750 employees. ISHCM research team. Study carried out 2006-7
  • 41. Y-axis: Breadth and balance of coverage required 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 LOGO
  • 42. Q-S (question-statement) design error typology: avoiding the pitfalls 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 Source: VaLUENTiS QS methodology 2003
  • 44. 4 Employee Engagement construct parameters exercise LOGO
  • 45. LOGO
  • 46. Employee Engagement Agenda • Minding the gap (what’s going on here) LOGO
  • 47. LOGO
  • 48. Staff engagement: The challenge for organisations 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 More likely to Less than bar‟ challenge for Individual‟s have Job gets optimally performance/ productive - organisations in degree of done capability Could do more optimising Alignment issues „well‟ engagement across the Likely to have performance, More likely to High probability workforce on a attitudinal have objective of wasted daily basis” and/or and/or „potential‟ effort/ behavioural issues frustration Incongruent issues Continuance Degree of Affective Commitment © VaLUENTiS Ltd 2002-12
  • 49. 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 Please note: Actual Question-statements paraphrased for the purposes of this slide
  • 50.
  • 51. 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
  • 52. We along with others recognise the big factor in employee engagement – namely line management. What perhaps is not so recognised is the issue of engagement with individual managers themselves. It is extremely unlikely that highly engaged employees will be found working for managers who have low engagement themselves. And even if they did – it wouldn‟t be for long. We recently took a random sample of manager engagement scores from our database to provide a picture. The next two slides show the same data in two different formats – the bell curve and percentile histogram. I don‟t have time today to go into great detail but I would ask you note the 1 in 7 managers whose score is more than 1 (negative) standard deviation from the norm. In this sample, 1 in 7 managers equates to about 3000 employees. That‟s a serious concern…………….
  • 53. ‘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 Source: VaLUENTiS Engagement database
  • 54. 910 ‘Line Management’ engagement score by 860 percentile (same study) 813 790 760 Management cadre sample 2010-11 Sample size: 1400 managers representing 20,000 employees Source: VaLUENTiS Engagement database Score range 200-1000
  • 55. 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.
  • 56. One other interesting application re line management I‟d like to touch on today – the „Broken Windows‟ theory. Some of you may be familiar with this – particularly if you‟ve read Malcolm Gladwell‟s „The Tipping Point‟. The actual research dates back to 1982 with Wilson and Kelling‟s work (and later Kelling and Coles) – the central tenet being that the monitoring and maintaining of urban environments in a well-ordered condition may stop further vandalism as well as an escalation into more serious crime; i.e. broken windows beget more broken windows etc. Though the theory has come in for some criticism – notably Harcourt, it remains a powerful concept. And thus for a moment I‟d like you to conceive the Broken Windows metaphor applied to line management, switching a few words for appropriateness. Rather revealing? And maybe useful for organisation messages. Thus the manager who keeps, for example, (i) postponing an individual‟s appraisal, (ii) late with signing off expenses, (iii) taking time off him/herself at short notice whilst not tolerating others in the same manner, (iv) not confronting a persistent lateness offender, (v) not instilling office tidiness and so on………well you get the similarities……I‟m sure you can identify with many more………. And whilst we‟re on the subject of line management and „license to manage‟ - here‟s some common problems and some suggested fixes. The question is do you recognise these and what fixes are taking place, or aren‟t they?
  • 57. The ‘people competency’ of line management...... ...common problems ...‟fixes‟ • Lack of understanding across • Clear communicated framework of managers as to what good people good people management practice management is and its impact together with learning exposure • Varied mix of line managers with • Utilise management competency variation in people practice and platform with structured programme resulting issues of learning and assessments • No set bar to becoming line „people • Adopt „license to manage‟ standard manager‟, i.e. no „license to manage‟ with appropriate hurdles and gradings • Too many „B‟-players in managerial • Instigate talent assessment where positions who limit employee necessary, with career option route- engagement potential paths including exit • Too often, HR as „personnel function‟ • Assess if issue relates to culture, compensates for deficiencies vague role definition or both, in conjunction with above actions
  • 59. LOGO
  • 60. Employee Engagement Agenda • Engagement & organisation performance
  • 61. The traditional view of employee engagement contributing to improved organisational performance... Higher Higher Higher employee organisation productivity engagement performance
  • 62. The emerging view of human capital management practice and employee engagement contributing to improved organisational performance (as a system) More effective human capital management Higher Higher organisation productivity performance Higher employee engagement
  • 63. However, remember the converse..... More ineffective human capital management Lower Lower organisation productivity performance Lower employee engagement
  • 64. So how do organisations go about improving employee engagement in a coordinated coherent manner? A very good question. Most case studies, or more precisely mini-case study capsules provide little insight („the more and more providing less and less‟). When we refer to case studies we refer to the Harvard-types used at the School (ISHCM) or sometimes in our management workshops where much more learning takes place. Thus, increasingly, we‟re finding the „EE playbook‟, or „Definitive EE playbook‟ giving its correct name, of great value. The book in itself doesn‟t necessarily have to exist per se but the contents do. I‟ve shown an example EE playbook on the next slide and examples of operating EE system models, including the original Sears model which is now almost 20 years old and how these types of models have advanced. Again I don‟t have time to go into great detail today but you get the gist of what‟s its about. I‟d like to think all HR departments have one though preferably it should be distributed around the organisation. It‟s the symbolism here that counts as much as the detail.
  • 65. The ‘Definitive EE’ Playbook P E R Leadership F Goal Team O alignment development R M A Work environment N C Performance E appraisal Managing Incentives conflict Role design
  • 66. What organisations (HR) keep getting wrong (this is a short ‘shortlist’)… Strategies Contents 1. Engagement strategies 2. Engagement operating „system‟ models and analytics templates 3. Question-statement selection and Models construct design 4. Measurement index construction, maintenance and reporting 5. Engagement Driver Factor (EDF) Implementation analysis 6. Engagement „forcefield‟ analysis 7. EE project management methodology and flowcharts 8. Engagement „issue work-through‟ Learning tools 9. Management learning programme design and evaluative criteria 10. Engagement Transformation Programme (ETP) methodology 11. Core applied theory summary capsules 12. Human Capital Management framework 4 EE playbook
  • 67. 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
  • 68. Moving on from the Sears model… 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 Patient Line -of-sight Clinical External Customer Quality of Revenue Practices Practices Line -of-sight X - selling Satisfaction treatment 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 UseProfitability of Resources X - selling experience Loyalty Community Service Staff Employee Retention Retention Compliance Compliance „Local‟ „Local‟ Management Management Cost control Cost control © VaLUENTiS VBM Analytics methodology 2008-12
  • 69. 6 Employee Engagement: Organisation reality exercise LOGO
  • 70. We could spend a whole day just on this slide (but we’re not!)…… Source: HR Employee Engagement survey 2010 HR magazine
  • 71. Now you‟ve hopefully been completing the „quick and dirty‟ mini–exercises along the way. By now you should have a (little) more informed view of where your organisation (or chosen organisation) is? And so, to return to the beginning and the 4-ball model – the question is where is your organisation? PLAY-DOWN PLAY-ACT PLAY-SAFE PLAY-MAKE? Your initiation has begun……… Thank you.
  • 72. Organisations and employee engagement 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 LOGO
  • 73. Employee Engagement Agenda • The truth • The whole truth • And nothing but the truth (well as we see it, anyway!) Thanks for participating……