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Change is coming

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Change is coming

  1. 1. Change is coming How to energise your employees and drive meaningful difference
  2. 2. Using primary research, creative communications agency We are Vista has uncovered differences of opinion that exist between these groups about business strategy and ambition; commercial strengths and weaknesses; and staff motivation. Overall, the responses point to expectations of substantial business change in the short-term, but a noticeable lack of preparedness at all levels. Conflict around business confidence and motivation is evident.Younger workers seem keen to roll up their sleeves, helping employers achieve their goals; older generations take a dimmer view of commercial change and ambition. The result? A snapshot of how UK enterprise feels about business transformation today against a backdrop of economic uncertainty. From storytelling to strategy, We are Vista helps organisations overcome business-critical barriers to change and achieve outstanding results. This report examines the beliefs, attitudes and feelings towards change of C-suite managers at UK businesses – and those of their employees. Executive Summary
  3. 3. Independent research consultancy Censuswide conducted two surveys on We are Vista’s behalf. Similarpairsofquestionswereposedsimultaneously to separate,nationally representative online panels of C-suite members (100 in total) and consumers (1,000) in summer 2018. Change is continual, undeniable. It seems like the only constant in these times of shifting financial and political circumstance. In business, just as in our day-to-day lives as consumers, we must prepare as best we can for change coming down the tracks.But change comes in multiple shapes and sizes.From digital transformation driven by the adoption of new technologies to meeting the new demands of a young workforce, organisations must be ready for anything. Common changes and requirements include: –– New leadership (helping teams navigate through change) –– Mergers and acquisitions (developing an overarching narrative) –– Digital transformation / migrating systems (re- and upskilling) Too often, there’s a gulf between change the boardroom deems vital and how employees feel about it. As our survey of separate C-suite and workforce contingents reveal, major differences exist in beliefs, attitudes and motivations around change, strategy and ambition. Many managers have misgivings about the direction their organisation is taking. The research describes a problem for UK plc. Inertia and distrust live in the perception gap. How can business leaders hope to steer a clear course towards positive outcomes if employees aren’t on board with their proposals? At We are Vista, we believe changing the way people think and behave at a business is crucial to drive positive and effective action,with improved results the output. We call our framework for success the Mindset Model, and it’s set to revolutionise the way companies approach change; overcoming negativity and fear to align employees with strategy and ambition. Change is difficult - but it doesn’t have to be downbeat. We think the future’s exciting, and we’re ready to help your organisation make the most of it. Methodology Introduction
  4. 4. Analysis: Employer and employee attitudes Our survey shows some stark differences between boardroom beliefs and workforce worries. There are five main insights. We believe they must set the agenda for any new strategy to be acceptable at all levels of your business. Insight One: Change is coming... isn’t it? There’s a puzzling perception about the amount of change that’s set to happen at UK businesses. Just 53 per cent of C-suite respondents expect a very or quite high level of change, and an even smaller number of employees (49 per cent) feel the same. That only half of all respondents, regardless of their seniority,aren’t anticipating great change at a time when the City nervously awaits Brexit’s consequences is mystifying. More managers (17 per cent) than employees (11 per cent) expect no change at their organisation during the next three years.So,what’s behind this belief? There are two possible explanations. One is an ostrich mentality, a resistance to change manifested by ignoring external factors.A second answer is that some C-suite respondents believe it would be risky to alter course when so much is happening externally. Meanwhile, among employees, younger respondents think change is more likely than other demographics. Forty-two per cent of those aged 55-plus believed very or quite high change was due, compared with 52 per cent of 25 to 34-year-olds. This points to younger staff being more open to change than their more experienced counterparts, who - as we’ll see below - might have much to lose through the forces of business transformation and automation. Takeout: We’re surprised expectation of change isn’t higher. The C-suite should constantly monitor macro-economic factors - not least Brexit. It’s understandable that the wider business doesn’t have much insight - 16 per cent don’t know how much change to expect - so it’s a board’s responsibility to have its fingers on the pulse of change. The C-suite must help its workforce understand incoming issues that will affect the business by carefully communicating that change, framing it in the positive light of opportunity and bringing people along for the ride. Top tip: connect with the wider world Navel-gazing is easy. Businesses are busy - time is taken up with staff, customers, product and operations. But external focus is a necessity. Employers and employees are all citizens and consumers, too. We advise our clients to bring a changing world inside the walls of their business, helping employees understand the forces affecting their customers’ lives. A key part of this is framing an organisation’s story in the customer’s terms. What impact are your employees having on their lives? That could be explaining customer advisers were responsible for helping 100,000 families get a new home, for example, rather than saying they collectively sold that number of mortgages the previous year. Helping employees visualise the effect of their work enables them to take ownership and make better decisions.
  5. 5. Insight Two: Who’s ready for change Anticipating change is one thing.Being prepared for it is another. Our survey found a sizeable majority of our C-suite respondents believe their organisation is very (24 per cent) or quite prepared (58 per cent) for change. There is a gender gap in the boardroom on this issue, however. While just 12 per cent of male bosses feel unprepared, the figure rises to one in five women when combining responses for “not very prepared” and “not prepared at all”. It’s quite impressive that nearly three quarters of employees think the business they work for is prepared for change - particularly in the context of expected change, mentioned above. Twenty- four per cent of employees do have misgivings about preparedness, however, compared to only 16 per cent of the C-suite. The most sceptical group is Baby Boomers (respondents aged 55 and over). Twenty-nine per cent of them are convinced their paymasters won’t cope with change, more than any other group. Again, this anxiety-based belief may reflect the types of change going on: digital transformation won’t be easy for an age group used to more traditional ways of doing business. If the process makes their skills obsolete, they may struggle to find work elsewhere. Takeout: The C-suite is bound to know more about strategy than wider business. They can thereforefeelmoreconfidentaboutbeingprepared. Butthereareconsequencesofnotcommunicating this confidence to the wider business. This is where purpose comes in [see box]. A well-informed workforce feels empowered to act, knowing what decisions to take and how they can play their part in the organisation achieving its end goal. The C-suite might make fewer, big decisions, but employees collectively make many more at every touchpoint. For example, a customer service agent might be more motivated if they’re sure their decision is the right one, in the interests of the business as well as the customer. Think an employee who feels within their rights to compensate a person who has had a bad customer experience; as opposed to having to ‘escalate’ the problem, which can add to customer frustration. Top tip: prepare with purpose Don’t underestimate the power of clearly stating your mission. Successful CEOs, from Sir Richard Branson at Virgin and Paul Polman at Unilever to Microsoft’s Bill Gates and Apple’s Steve Jobs, have led their businesses with a clear vision, making employees want to join their journey. Purpose is perhaps an overused business buzzword – but it’s crucial to an organisation’s development and growth, preparing people for change. It gives everyone involved something to aim for, whatever their role. Lack of purpose has a detrimental effect on individual decision- making, motivation and productivity as a whole. For example, our research reveals that Baby Boomers are less aware of change and less ready for it. But don’t dismiss them – give them purpose. Their experience at your business and elsewhere in their working and personal lives is invaluable. Allow them to share their stories and wisdom with younger people. Listen to their concerns about new technology and help them adapt. Don’t just take their desk phone away and put an iPhone in their hands, enable them to understand its potential.
  6. 6. Insight Three: Time to determine your ambition Ambitionisvitalforbuildingmoraleandmomentum at any organisation. It’s surprising, then, that our survey reveals a greater sense of ambition among employees than the C-suite. Some 70 per cent of staff feel their business is very or quite ambitious, compared to 63 per cent of the top brass. Not only is C-suite sentiment outstripped by employees’, but the fact that a third of managers rate their organisation as “not very ambitious” or “not at all ambitious” is concerning. If a board hasn’t got a bold strategy, how can the workforce be expected to strive for success? In our experience,the most ambitious businesses are clearer on the direction they’re taking and how to get there.That needs to be signalled right from the top if it’s to reach all levels of the business. As before, C-suite men are the boldest, with almost a third (31 per cent) describing their strategy as very ambitious, compared to just a fifth of women. There’s a more even split in positive sentiment between male and female employees. However, one in 10 workers admit they have no idea what their employer’s ambitions are. Extrapolated across larger workforces, this becomes a significant figure.“Don’t knows” rise to 13 per cent of those aged 55 and over. A quarter of Baby Boomers also declare their organisation unambitious, further signalling this group’s dissatisfaction as seen earlier. Takeout: There’s an ambition vacuum at a larger- than-expected proportion of UK plc.This matters, because any business not focussed on meeting goals will get stuck fighting fires. Growth will be difficult. Ambition – vision – doesn’t have to be agonising. It just needs to be clear to the entire business, attainable and worth striving for. A traditional financial business in transformation might proclaim it wants to be the UK’s biggest digital bank by 2020, for example. Everyone knows where they stand and can work towards making the dream a reality. Top tip: tell tales everyone will listen to Storytelling might sound like a marketing cliché. But it works for consumers; why shouldn’t it be a successful employee engagement strategy? Staff motivation and confidence stem from knowing what the business is trying to achieve. It can also be a great way of reaching groups within an organisation who may, for whatever reason, feel disaffected. The corporate narrative can be tweaked to suit ambitious millennials, stressed Gen X and jaded Boomers, for example. But the overall message will remain the same – an organising thought for each and every team member to gather around. It’s not a quick fix. Getting everyone aligned to a clear and bold ambition can take a great deal of time and resource. Maintaining the message throughout that time using a regular drumbeat of creative comms - just as brands continually speak to their consumers - is vital. We’ve even found it reduces employee attrition rates. The result is less time and budget spent on recruitment and training, more on reaching your business goals.
  7. 7. Insight Four: Why motivation matters Three-quarters of the C-suite - who, as we’ve seen, are less positive than employees about ambition - believe employees are motivated to help the business achieve their goals. Yet the figure drops to less than two thirds (64 per cent) of staff who were asked the same question. Moreover, a total of 37 per cent of employees revealed they weren’t motivated (including those who answered “don’t know”). That compares to just 12 per cent of C-suite members who claimed their workforce lacks motivation. There are also generational differences. People taking their first steps in the world of work,the 16 to 24s, are the keenest with 68 per cent saying they are very or quite motivated compared to 25 per cent who aren’t. Among 45- to 54-year-old employees, 57 per cent feel motivated but 43 per cent don’t. Alongside this perception gap there’s an issue around measuring motivation. Some 13 per cent of C-suite respondents - rising to 17 per cent of women and managers aged 25 to 34 - admit they have no idea about motivation levels. Takeout: Leaders shouldn’t view their workforce as a homogeneous group.Different mindsets reveal different motivations,and this is the type of detail that’softenoverlookedbyorganisations.Onereason for that is employee engagement sometimes amounts solely to a business-wide survey that doesn’t tell the whole story unless leaders scratch beneath the surface and heed the detail. We asked participants a separate question about their understanding of their role in the wider business strategy. Overall, 14 per cent of C-suite managers - and 21 per cent of women in the boardroom - can’t say whether employees know of their place in the machine. Furthermore, a fifth believe staff don’t know. The same proportion of employees claim not to understand how they could help the overall strategy: 16- to 24-year-olds have the greatest awareness, those aged 45 to 54 the least. It’s a mistake not to understand the level of motivation in your firm or the nuances between agegroups.Successfulchangeisbasedoneveryone pulling in the same direction. Unmotivated staff won’t feel like going the extra mile. Top tip: motivation begins with understanding Cleverly devised employee feedback programs will tell you a lot more about their sentiment and motivation than a quick and dirty annual survey. You need to get under the skin of what inspires and offends each demographic, and respond with tailored communications. Staff incentives are an extension of this. Straightforward financial rewards such as commission don’t appeal to everyone. Others appreciate peer recognition, experiences or soft bonuses such as duvet days. Each individual is different, and your employee engagement strategy should reflect that.
  8. 8. Insight Five: A message for the leadership team We asked respondents to list the main strengths and weaknesses of their business: Top five strengths Top five weaknesses 0% 10% 20% 30% 40% 50% None Internal culture Unique product/service Leadership Efficiency/productivity Customer service C-suite 50% 27% 25% 22% 18% 7% 0% 5% 10% 15% 20% 25% 30% 35% None Profit margin Productivity Brand Leadership Customer service Employees 33% 22% 22% 19% 18% 14% C-suite 0% 5% 10% 15% 20% 25% 30% Efficiency/productivity Commerciality No unique product/service Poor profit margin None 29% 27% 19% 17% 13% Employees 0% 5% 10% 15% 20% 25% 30% 35% Innovation Poor profit margin Internal culture Leadership None 31% 21% 19% 12% 12%
  9. 9. Thereisacertainlevelofconfidenceinrespondents’ organisations,with three in 10 overall saying they do not see any weakness in the business. However, there are some contrasts to be found. One in seven employees believes their organisation has no demonstrable strengths.While lower than those who say there are no weaknesses, it’s still twice the amount of C-suite respondents who believe their organisation lacks any key strengths. TheC-suiteismainlyproudestoffinancialoutcomes, although it does recognise customer service as a key strength. Company culture is one of the biggest concerns. This highlights a lack of communication from the top; staff not knowing the firm’s plans for the immediate future. Unsurprisingly, leaders scored leadership among the top three strengths – though only a quarter mentioned this as a crucial factor. The fact that employees score leadership at a similar level is reassuring. However, the workforce also rate leaders as the second- biggest weakness, suggesting a disconnect at more than a fifth of organisations. Takeout: Lack of belief in leadership stems back to lack of purpose and strategy at the top – or at the least, a vision that is poorly communicated to the workforce. Guidelines on employee engagement are changing, which may help. The Financial Reporting Council recently unveiled a fresh UK Corporate Governance Code which cited as its top update:“Workforce and stakeholders: there is a new Provision to enable greater board engagement with the workforce to understand their views. The Code asks boards to describe how they have considered the interests of stakeholders when performing their duty under Section 172 of the 2006 Companies Act.” It’ll be interesting to see how corporations adopt this new advice. Regardless, it’s critical to fully understand where your workforce thinks your business is lacking as well as areas where they believe it’s performing well. Top tip: let influencers in on the strategy Don’t treat culture and internal communication as an afterthought. Make it a priority. Vision is vital; making it happen takes blood, toil and tears. Consider who the influencers are within teams at your organisation – they don’t all sit in the boardroom, they could come from any team. Culture must be nurtured, and people who are popular among their colleagues are a great place to start. Treat them as ambassadors who can help others navigate change. Give them a chance to help set out your purpose, vision and the route to getting there, as well as testing ideas with them before rolling these out to the wider organisation.
  10. 10. C A S E S T U DY Lloyds Banking Group By the side of Britain’s best bank
  11. 11. It all started with a conversation. From there, we built trusting relationships with leadership teams, understanding the mindset at the heart of the organisation, and gaining the insight to move behaviour at scale. Initial connections transformed into strong partnerships across every department and level,as we translated beliefs, attitudes and feelings into a future vision – one powerful enough to deliver results with lasting impact. Through a multi-channel campaign, we engaged everycolleaguewithLBG’scorepurpose,galvanising their people to come together, and ensuring everyone understood their part to play in the bank’s exciting future. Working with stakeholders, agency partners and leaders across the whole organisation, we’ve combined knowledge and passion to inspire and connect every channel and audience. And this is just the start. We’ve been collaborating and creating with Britain’s biggest bank since 2007, playing a crucial role in arguably the greatest modern-day transformation of any financial services company. The journey so far
  12. 12. A new vision for the Group Over more than a decade, we’ve built a trusting relationship with LBG and their partners, working closely to develop three transformative strategies and communicate them meaningfully to 60,000 colleagues. We’ve created excitement and engagement around LBG’s Helping Britain Prosper purpose, refining the vision and inspiring belief with a landmark event designed to reach every colleague. Our support for LBG’s journey back to privatisation has seen the Group return £21bn to the taxpayer, posting their biggest profits in over a decade. Turning strategy into belief Our work with LBG has seen us successfully deliver three strategies, developing multiple campaigns and activations to support the objectives of each. We clarified goals, targeted the most effective channels and refined content to create impact at scale. As we delivered LBG’s first strategy, we worked with stakeholders to understand the Group’s people, ethos, direction and challenges. Collaborating with world-leading management consultants,McKinsey,we delivered a meaningful campaign to evolve LBG for the future. The second strategy was built to redefine LBG’s purpose: Helping Britain Prosper. We helped refine this purpose to stretch beyond profit, implementing culture change, regaining public trust, and reaching every client, colleague and community. Unveiled in March this year, the third strategy is LBG’s biggest and boldest. We worked in collaboration with LBG to launch a game-changing vision based on transformation,digitisation,group capabilities, and a leading customer experience. Landmarkmomentsandmilestones Rebuilding the bank Every stage of every strategy has seen us deliver memorable moments, high-revenue results and engaging brand experiences for LBG. We’ve collaborated across our full-service capabilities to bring the Group’s vision to life. Following the global financial crisis of 2007/08, Lloyds had to change to survive.With our support, they reconstructed the bank,streamlined ways of working and simplified systems and processes from the merger of HBOS and Lloyds TSB. We united 5,000 leaders with a full-service spectacular at our first ever One Group Convention, generating 100% board satisfaction.This included full venue and delegate management at London’s ExCel Centre, logo and identity development, graphic design, print, AV and full exhibition build.
  13. 13. Evolving the culture In 2014, we helped LBG embed meaningful culture change,as they redefined their purpose with the launch of Helping Britain Prosper (HBP). We designed the identity and launched the campaign, evolving HBP into the Group’s central reason for being. We collaborated with LBG to deliver a Group-wide inclusion and diversity creative communications campaign, designed to shift attitudes and show thebenefitsforbusinessperformance.TheGroupis now highly rated by Stonewall for LGBT employees, with an openness to discuss issues like mental health, domestic abuse and flexible working. In 2015, LBG celebrated 300 years of Bank of Scotland, 250 years of Lloyds Bank and 30 years of Lloyds Foundations – and a new charity partnership with Children in Need. We ensured the whole Group felt engaged and proud, communicating a compelling story to 60,000 colleagues. The result? The best engagement scores since the banking crisis. Transforming the group We brought together LBG’s three distinct Retail brands – Halifax, Lloyds Bank and Bank of Scotland – with a new narrative around the branch network strategy.The narrative engaged colleagues, educating them about how ways of working would need to evolve in line with changing customer behaviour. Having returned £21bn to the taxpayer – plus a shareholder dividend and £900m extra – LBG posted their biggest profits in a decade, with internal metrics revealing 99% of colleagues believed in and were committed to their roles in Helping Britain Prosper. We supported LBG on their journey back to privatisation. We worked closely with LBG’s senior stakeholders and internal comms team, collaborating with external agencies, adam&eveDDB and Rufus Leonard,to communicate the most recent strategy across the Group.The result was a game-changing live event, delivered to 12,000 colleagues across six venues – setting the scene for the future of HBP. There was an interactive expo, VR headsets, a life-size board game,live streaming opportunities and technology displays to bring the strategy to life. The next phase of the campaign is now live, continuing to communicate the strategic story with impact across every channel.
  14. 14. These opposing forces cause obstacles on the road to change. To overcome them, business leaders must heed the beliefs, attitudes and feelings of their workforce. Only then will positive individual actions generate outstanding results. We are Vista has developed the Mindset Model as a framework for understanding these critical factors and taking staff on the journey to permanent change.Here’s what we put under the microscope. Our survey results are further evidence that employers focus on figures; employees care most about emotional investment. We are Vista’s Mindset Model BELIEFS ATTITUDES FEELINGS ACTIONS RESULTS Beliefs: Hardwired and hardest to change. These are employees’ core emotions about the place they work - including faith in their leaders - and the wider world they live in. They underpin pretty much everything a person thinks and does. Attitudes: We rate employees’ attitudes on a negative to positive scale, so the study is rooted in psychology and strength of feeling. This can be a revelation for the C-suite, framing how the business needs to change and how goals can be achieved. Feelings: These can be changed. It may take time, but altering perceptions is possible, leaving organisations free to set sail towards a more positive future with everyone on board. These first three stages help organisations to understand the wider mindset and influence interventions that can be made. This will more than likely be a creative strategy for a series of internal campaigns promoting your narrative. The upshot is hundreds and thousands of actions that create brilliant experiences for people, painting your business in a good light and making employees feel great, too. Actions: What do you need individual employees to do to drive the business forward? This is often a strategy that will empower every member of staff to make the right decisions. Results: Whatever you want your business to be. We usually start by discussing this stage, then map the preceding four factors to plot a course to the desired results. Often that involves some form of change, from behaviour to sales growth.
  15. 15. Technology is driving a huge round of digital transformation. The next wave of change will be an essential response to Brexit, with businesses forced to adapt as Britain settles into a new pattern of trading. How organisations are dealing with that change is a mixed bag,according to our survey respondents. Not all of the C-suite is comfortable with new strategies; not all staff are motivated to play their part in effecting that change. Whether or not your business is expecting great change, this report raises important questions. Is your leadership ready to drive your strategy? How can your business goals be communicated effectively, motivating your entire workforce? And what must you do to create greater harmony, closing the perception gaps between management and staff? Your employees can be your greatest asset and strongest advocates, propelling your organisation to a brighter future, open to change rather than fearing it. Are you ready to listen to them? There’s no doubt change is coming to UK plc. Conclusion Taking steps is easy, standing still is hard
  16. 16. Confidentiality This document contains confidential information and intellectual property intended for review by the client. Consequently, this material may not be copied, distributed or shared with third parties without the express written consent of We are Vista Limited. This confidentiality should also be respected throughout any subsequent concept development stages to ensure that no potential competitive edge is lost when entering into any discussion and negotiation with other third parties. Copyright This material is copyright by We are Vista Limited. Accordingly, We are Vista Limited retains full ownership of this material until the client appoints We are Vista Limited upon terms and conditions to be jointly agreed. Upon such an agreement, We are Vista Limited shall transfer usage rights to this material subject to final contract detail. Contact Daniel Dunn daniel.dunn@wearevista.co.uk +44 (0) 8448 470 230 +44 (0) 7977 017 505 The Timber Yard, 115a Drysdale Street, London, N1 6ND 5-6 Carlton Mills, Pickering Street, Leeds, LS12 2QG

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