Implementing Greater Performance through Transformational

B2
Implementing Greater Performance
through Transformational
Employee Engagement
Engage For Success
David MacLeod and Nita Clarke
CIPD Annual Conference
5 November 2014
THE CASE FOR ENGAGEMENT
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ENGAGEMENT CORRELATES WITH PERFORMANCE
>Profit
>Income Growth
>Productivity
>Customer/Citizen Satisfaction
>Innovation
>Retention
>Wellbeing and Absence
MEGATRENDS THAT SHOULD KEEP US AWAKE AT NIGHT*
• Economic power is shifting to Asia, creating fearsome competition
• Demographic pressures are escalating the war for talent
• Deteriorating environmental conditions are putting financial stressors on organisations
• Freedom of choice is eroding loyalty
• Boundaries are blurring between private and working lives
• Nanotechnology and biotechnology are merging, triggering the sharpest tech shift in history
* ACCORDING TO HAY
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LABOUR MARKET TRENDS THAT SHOULD KEEP US AWAKE AT NIGHT
ACCORDING TO THE GUVNOR….
•
Powerful demographic forces, notably the aging of the workforce, increases in longevity and rising participation of women in the workforce
•
How globalisation and new technologies are splitting production chains across companies and across borders.
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How financial risk is steadily being shifted to employees from both employers and the state through changes to the structure of pensions and benefits, reduced job security and evolving labour market institutions, including the union movement
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The sharp reduction in the employment share of middle skilled jobs, relative to more and less skilled jobs ‐ so called job polarisation.
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Speech to the TUC Congress, 9 September 2014 Mark Carney, Governor of the Bank of England
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FAIRNESS IS BACK ON THE AGENDA – WE CAN’T SAY WE WEREN’T WARNED
There’s a ‘direct relationship between perceptions of unfairness and employer advocacy, job satisfaction and turnover intention….the current yawning wealth gaps, along with decreasing job security and diminishing pension payments indicate that fairness has never been more relevant to the society in which we live..’
CIPD, Work, Autumn 2014
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IS ‘INCLUSIVE CAPITALISM AN OXYMORON’?
‘The 85 richest people in the world, who could fit into a single London double decker, control as much wealth as the poorest half of the global population –
that is 3.5 billion people.
‘Fundamentally, excessive inequality makes capitalism less inclusive. It hinders people from participating fully and developing their potential.’
Christine Lagarde, Managing Director International Monetary Fund, 27 May 2014
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THE RISE OF BIG BROTHER DATA
‘The first machine age gave rise to the modern discipline of management: companies hired armies of managers to co‐ordinate the workers who operated the machines, and to organise supply chains and distribution systems.
‘The second machine age will reconfigure the discipline: much of the work of bosses, from analysing complex data to recruiting staff and setting bonuses, will be automated.
‘Executives will increasingly focus on the two things that humans can still do better than machines – motivating the troops and producing game changing thoughts.’
Andrew McAfee, Massachusetts Institute of Technology
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BE VERY AFRAID…..
‘Reform and opening up in the past three decades have delivered better livelihoods for the Chinese people. And reform and opening up remain key to realise modernisation.
‘To achieve this goal, we need to stay the course on market oriented reform, energise the market, motivate the people, bring out their ingenuity and open China still wider to the outside world.’
Li Keqiang, Premier of the People’s Republic of China, article in the Times, 16 June 2014
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THE PUBLIC SERVICES FACE HUGE CHALLENGES….
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WE KNOW SO MUCH MORE ABOUT HOW THE BRAIN WORKS – AND ABOUT HOW THE BRAIN WORKS AT WORK
Daniel Kahneman
David Rock
Daniel Pink
status, certainty, autonomy, relatedness and fairness
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The brains of humans contain a mechanism that is designed to give priority to bad news.
Daniel Kahneman
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‘THE BRAIN HAS AS MANY NEURONS AS THERE ARE STARS IN THE MILKY WAY…’
‘Working for inspiration, rather than simply waiting for it, ameliorates the randomness of creativity, indicating that by developing the right kind of internal culture and environment, organisations might be able to stimulate creative thoughts.’ Jonathan Buckley
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THE BIGGER PICTURE
The context for WHY Employee Engagement is critical:
The 20th Century model was “Business as Usual”.
MAKE EFFICIENT – aligned but not engaged, central direction, command and control.
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ENGAGE FOR SUCCESS
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NOBODY SAID IT WAS EASY……..
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Poor management could be costing UK businesses over £19.3bn a year in lost working hours
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43 per cent of UK line managers rate their own managers as ineffective
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Four fifths of workers don’t think their manager sets a good moral example.
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Less than one fifth are aware of their organisation’s values
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Two thirds of employers give either no training or inadequate training to new managers
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EVERY JOURNEY STARTS WITH A SINGLE STEP….
‘Our model is built on a total value chain approach, on growing our business, reducing our environmental impact, reaching a billion people with health and well‐being programmes and moving our whole business to sustainable sourcing. We do this on the basis of a common purpose.’ Paul Polman Chief Executive, Unilever. Unilever recorded a 9 per cent rise in pre‐tax profits for the 22013 financial year.
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MORE REJOICING IN HEAVEN OVER THE SINNER WHO REPENTETH………..
‘ If I had known that being nicer to customers was going to result in higher load factors, I would have been nicer years ago’.
Ryanair CEO Michael O’Leary on share price rise of 14 per cent since he decided to be nice to customers.
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BACK TO BASICS….
‘I will always communicate openly and transparently with you and I’d like to encourage the same from you in return. I want to hear your thoughts and ideas. I want to hear what you think we could do differently or better. Hopefully we will get a chance to do this in person, but for the sake of immediacy please send any comments or ideas to me by email.’
Dave Lewis letter to all Tesco staff on his first day as CEO.
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YOU CAN RUN, BUT YOU CAN’T HIDE….
Glassdoor gets over 1 million hits a month …………
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TRANSACTIONAL OR TRANSFORMATIONAL?
Transactional engagement
> A set of activities or targets
> Usually focussed around a survey
> With modest outcomes
Transformational engagement
> Employees integral to developing and delivering the business strategy
> Requires deep belief in the power of people to contribute ‐ new and creative products/services
‐ outstanding customer/client service and efficiency
> Respect for all people and attention to their wellbeing
THE FOUR ENABLERS OF ENGAGEMENT: YOU CAN DO THEM TRANSACTIONALLY OR TRANSFORMATIONALLY…
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In summary….
Socio/Economic forces are driving change in the workplace
ABILITY OF MANAGEMENT TO COPE WITH, AND HARNESS, THESE FORCES WILL BECOME
VERY TRANSPARENT
IF COPING POORLY;
• Talented people won’t join or will leave
• Reputational damage
• Funders
• Media
IF COPING WELL;
The attitudes you need
The themes you must embrace
The attitudes and approaches transformational organisations adopt
Engage for Success Sponsors
Adam Balon, Innocent
Adam Crozier, CEO, ITV
Alex Gourlay, CEO, Alliance Boots
Amyas Morse, Auditor General, NAO
Andy Harrison, CEO, Whitbread
Anthony Jenkins, CEO, Barclays
Dame Barbara Stocking, CEO, Oxfam
Barbara Frost, CE, WaterAid
Sir Bob Kerslake, Head of the Civil Service
Francis O’Grady, General Secretary, TUC
Carolyn Downs, CE, Local Govt Assoc
Charlie Mayfield, Chairman, JLP
Chris Browne, MD, Thomson Airways
Ian King, CEO, BAE
Ian Powell, Chairman & Senior Partner, PwC
Ian Sarson, CEO, Compass Group
Jane Wilson, CE, CIPR
John Cridland, Director General, CBI
John Hannett, General Secretary, USDAW
John Neill, Group CE, Unipart
John Walker, Chairman, FSB
Karen Boswell, MD, East Coast Rail
Lord O'Donnell, Former Head of Home Civil Service
Marc Bolland, CEO, M&S
Mark Elborne, CEO, General Electric, North Europe
Sir Martin Sorrell, CEO, WPP
Martin Temple, Chairman, EEF
Moya Greene, CEO, Royal Mail
Nigel Stein, CEO, GKN
Paul Drechsler, Chairman, Teach First
Peter Cheese, CE, CIPD
Sir Peter Housden, PS for Scotland
Peter Rogers, CEO, Babcock
Peter Sands, CEO, Standard Chartered
Peter Searle, CEO, Adecco Group UK & Ireland
Richard Baker, Chairman, Whitbread
Ronan Dunne, CEO , O2
Rona Fairhead, formerly Group CE, FT.
Simon Walker, Director General, IoD
Sir Stephen Bubb, CE, Acevo
Stephen Howard, Chief Executive, BITC
Steve Elliott, Director General, CIA
Steve Mogford, CEO, United Utilities
Tim Melville‐Ross, Chairman, HEFCE
Tim O’Toole, CEO, First Group
Will Hutton, Executive Vice Chair, Work Foundation
Sir Win Bischoff, formerly Chairman, Lloyds Banking Group
ENGAGE FOR SUCCESS
www.engageforsuccess.org
info@engageforsuccess.org
GET INVOLVED!
For mutual benefit; a movement moves if people apply their energy!
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ENGAGE FOR SUCCESS 2012
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Engage For Success
David MacLeod and Nita Clarke
CIPD Annual Conference
5 November 2014
B2
Implementing Greater Performance
through Transformational
Employee Engagement