1 managing the employee-customer encounter. 2 “a chance for something to go wrong…” “we just...
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Managing the Employee-Customer Encounter
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“A chance for something to go wrong…”
“We just don’t trust them that much…”
“Get a life!…”
Are People Assets or Liabilities?
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HumanSigma® Performance Bands
Copyright © 2007 Gallup. Inc. All rights reserved.
1.8x
3.8x
2.5x
5.2x
4.5x
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Customer Engagement Hierarchy
Can’t imagine a world without
Perfect company for people like me
Treats me with respect
Feel proud to be a customer
Fair resolution of any problems
Always treats me fairly
Always delivers on promise
Name I can always trust
Your company is irreplaceable to
me. I feel passionate about you.
Your company is prestigious. It
is part of who I am.
When we have a problem,
you always treat me fairly.
I can safely assume that
you will always keep
your promises.
Copyright © 2000 Gallup. Inc. All rights reserved.
Passion
Pride
Integrity
Confidence
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5Copyright © 2007 Gallup. Inc. All rights reserved.
All Advocates Are Not Created Equal
Commercial Banking
Air Cargo Shipping
100
“JDS”
“JDS”
“JDS”
“JDS”
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Amygdala
Ant. Cingulate
r=.789
r=.766
Differential Neural Activity: Passion
Copyright © 2007 Gallup. Inc. All rights reserved.
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Employee Engagement
Copyright © 2007 Gallup. Inc. All rights reserved.
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Daily Pulse
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Happiness/Enjoyment without a lot of Stress/Worry
Stress/Worry without a lot of Happiness/Enjoyment
Copyright © 2008 The Gallup Organization, Princeton, NJ. All rights reserved.
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1. Friends2. Relatives3. Significant Other
----------------------------------3rd from last: Customers2nd from last: Co-workersDead last: Boss
Housecleaning
People We Enjoy Being Around
Source: Kahneman, D., et al. (2004). A Survey for Characterizing Daily Life Experience: The Day Reconstruction Method. Science. 306. 1776-1780.
9Copyright © 2007 Gallup, Inc. All rights reserved.
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10Copyright © 2007 Gallup. Inc. All rights reserved.
What Does Employee Disengagement Look Like?
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Note: Differences are between top and bottom quartile workgroups. Absenteeism statistic is the difference between engaged and actively disengaged employees.
Employee Engagement and Performance
Copyright © 2007 Gallup. Inc. All rights reserved.
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12Copyright © 2007 Gallup. Inc. All rights reserved.
Employee Engagement and EPS
2.6x Higher Growth Rate for High Engagement Companies
Note: Based on analysis of data from 89 publicly traded companies. Engagement data collected from 2002 to 2004. Comparables averaged 7.3 competitors per company.
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The 12 Elements of Great Managing
THE FIRST ELEMENTKnowing What’s Expected
THE SECOND ELEMENTMaterials and Equipment
THE THIRD ELEMENTThe Opportunity to Do What I Do
Best
THE FOURTH ELEMENTRecognition and Praise
THE FIFTH ELEMENTSomeone at Work Cares About Me
as a Person
THE SIXTH ELEMENTSomeone at Work Encourages My
Development
THE SEVENTH ELEMENTMy Opinions Seem to Count
THE EIGHTH ELEMENTA Connection with the Mission of the
Company
THE NINTH ELEMENTCoworkers Committed to Doing
Quality Work
THE TENTH ELEMENTA Best Friend at Work
THE ELEVENTH ELEMENTTalking About Progress
THE TWELFTH ELEMENTOpportunities to Learn and Grow
Copyright © 2008 Gallup. Inc. All rights reserved.
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Pr( MORTi,s,h = 1 | xi)
1 - Pr( MORTi,s,h = 1 | xi) ( )ln = α0 + α1·Zi + εi,s,h
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Individual Contributions
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Employees need to experience success in their performance.
A key to this is the degree to which the job fits their talents, skills, and preferences.
It’s also crucial that employees feel that they are contributing to the organization and that those contributions are valued. Honest feedback is essential to an accurate assessment of performance, but more than that, it provides the kind of data our minds need to learn and eventually master new tasks and demands.
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Teamwork: Do I Belong?
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Employees have a need to belong to something bigger than themselves. This sense of belonging starts with the social membership benefits we expect from any group to which we belong.
Making an emotional commitment requires: Continuity in your social and material conditions — a
sense of the reliability of people and things. Confidence in your place in society and your right to be
yourself. Faith that you can achieve your maximum “you-ness”
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How Can We Grow?
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A psychologically committed employee in an engaging work environment is primed for innovation and growth.
Employees who have the opportunity to discuss their progress develop a deeper emotional commitment to the organization.
Once this longer-term commitment is formed, the employee naturally raises the question of where am I going from here?
A deeper psychological affiliation: “ I AM Gallup
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Improving Engagement
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• Manage by outcomes not behaviors.
• Liberate don’t legislate.
• Engagement is for everyone.
• All politics is local.
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The Tactics of HumanSigma®
Evaluation– Objective data are necessary to provide an accurate assessment of
current performance and to set out realistic short-range and long-term goals.
Intervention– Activities should target identified areas for improvement and
capitalize on identified strengths at both local team and enterprise levels.
– “Meet them where they are.” Activities must be appropriate for each team’s current level of performance.
Encouragement– Recognition and reward programs provide incentive for continued
improvement.
Copyright © 2007 Gallup. Inc. All rights reserved.
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Curing Disengagement?
Copyright © 2007 The Gallup Organization, Princeton, NJ. All rights reserved.
IgnoredIgnored
2%2%
58%58%
40%40%
WeaknessWeakness
22%22%
33%33%
45%45%
100%100%
80%80%
60%60%
40%40%
20%20%
0%0%
EngagedEngaged
Not EngagedNot Engaged
Actively DisengagedActively Disengaged
StrengthsStrengths
61%61%
38%38%
1%1%
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Workplace Ratios
Productivity
Po
siti
ve-t
o-n
egat
ive
rati
o
Workplace Ratio (3:1)
Upper Limit (12:1)
Copyright © 2007 The Gallup Organization, Princeton, NJ. All rights reserved.
Source: Fredrickson, B. L. & Losada, M. (2005). Positive affect and the complex dynamics of human flourishing. American Psychologist, 60 (7) 678-686.[4]
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0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
23
Strengths Net Gain Study: Higher Productivity
Productivity was 12.5% higher (post-treatment) among teams whose manager received any form of strengths education or intervention.
Incre
ase
in
Pro
du
cti
vity
n = 530 business units
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2424Copyright © 2008 Gallup. Inc. All rights reserved.
The Tactics of HumanSigma®
Transactional
Transformational
Evaluate Intervene Encourage
Measurement Logistics
Analysis
Performance Zones
Road Map & Targets
Brand Promise Alignment
Action Planning
SWAT Teams
Customer Advisory Boards
Preferred Recognition
Performance Communication/ Celebration
Local Celebrations/ Recognition
Formalized Rewards
Institutionalize Accountability
Build a SBO
Learn and Leverage Strengths
Select for Talent
Peer Group Mentors
Level 5/6 Summit
Performance Linked to Advancement/ Promotion
Case Studies
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Reported plan helped make progress
Reported plan did not help make progress
“Working the plan” is strongly related to actual improvement
Copyright © 2007 Gallup. Inc. All rights reserved.