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A Key to Predictable Performance Success in Organizations Optimum leadership Inc.

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Employee Engagement

A Key to Predictable Performance Success in OrganizationsOptimum leadership Inc.

Do you want every employee?Working hard to improve without bribes or threats?Improving their individual performanceCooperating as a team

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Do you want every employee?Reducing total costsImproving communication

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I want you to knowA Key to Predictable Performance Success in your organization to achieve these outcomes5/6/2011Copyright 2011 Optimum Leadership4

Questions for you What do your employees think and feel about your business?their boss?their job?

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One question per slide5

Research showsDid you know:Research shows positive performance begins with positive feelings and thoughts?

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One question per slide6

Questions for you What is the key to creating consistent positive thoughts and feelings?

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Times are challenging According to SHRM (Society for Human Resource Management, 2011 poll)Attracting and retaining talentBuilding a culture of trust Are two major challenges for leaders of companies over the next ten years

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One fact per slide with narration or a video8

Times are challenging 2011 will be a challenging for retention because as the economy picks up more employees are looking for opportunities A report by Blessing and White (an HR consulting firm)

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One fact per slide with narration or a video9

Times are challenging Employee trust in leadership has a huge impact on performanceExecutives continuously impact trust even with people they rarely see

A report by Blessing and White (an HR consulting firm)

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One fact per slide with narration or a video10

Times are challenging Supervisors play a crucial role in worker health, wellbeing, and motivation yetOne of HRs main functions is to keep a flow of talent coming into the organizationUnless supervisors do the right things all that investment to attract the talent is wastedA report by Hewitt

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One fact per slide with narration or a video11

Times are challenging According to the Institute for Corporate Productivity:The current performance management practices are ineffective

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One fact per slide with narration or a video12

Research! According to a study by the Society for Human Resource Management (SHRM):90% of performance appraisals are unsuccessful

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One fact per slide with narration or a video13

Research! According to a study by Towers- Watson:Only 3 in 10 employees believed their performance review actually improved performance

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One fact per slide with narration or a video14

Research! After more than 60 years of effort and thorough study:The current performance management processes have failed to deliver on these two most important priorities:Attracting and retaining talentCreating a culture of trust

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One fact per slide with narration or a video15

What does this mean?All the raw talent in the world will not help create predictable successbecauseThe current and most widely used management tool doesnt work

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What is the Key?5/6/2011Copyright 2011 Optimum Leadership17

One fact per slide with narration or a video17

How will you succeed?Employee Engagement

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One fact per slide with narration or a video18

5/6/2011Copyright 2011 Optimum Leadership19What is Employee Engagement?Definition:A heightened emotional connection that an employee feels for his or her organization such that they exert greater discretionary effort * Conference Board: Employee Engagement-A Review of Current Research and Its Implications 2006

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Three types of employees

Engaged employees work with passion and feel a profound connection to their company, they drive innovation and move the organization forward.Non-engaged employees are essentially checked out theyre sleepwalking through their workday, putting in time but not energy or passion into their work.

Actively disengaged employees arent just unhappy at work; theyre busy acting out their unhappiness. Everyday these workers undermine what their engaged coworkers accomplish.

31%69%5/6/2011Copyright 2011 Optimum Leadership20

Moved to after definition 20

Research! There is a direct correlation between employee engagement and:Organizational performanceCustomer satisfactionGrowthEmployee retentionThe Training Foundation and Aberdeen Group

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Research! Engaged employees stay for what they give GIVERS

Disengaged employees stay for what they get! TAKERSBlessing and White Research5/6/2011Copyright 2011 Optimum Leadership22

What is the Impact of Disengagement? Disengaged employees cost the American economy up to 350 billion dollar per year in:high turnover - absenteeism - productivity - insurance - safety incidents - poor healthlow morale5/6/2011Copyright 2011 Optimum Leadership23

One per slide23

Disengaged employees were:5 times more likely to have safety incident

5 times more costly5/6/2011Copyright 2011 Optimum Leadership24

Need one fact per slide or possibly two

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Strategy5/6/2011Copyright 2011 Optimum Leadership25To address this we must increase the number of engaged and significantly reduce (eliminate) the actively disengaged

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We are NOT doing well!5/6/2011Copyright 2011 Optimum Leadership26

We are NOT doing well!Only 1 out of 3 employees is engaged

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We are NOT doing well!Almost half of organizations around the world saw a significant drop in employee engagement levels in 2010A report by Hewitt Associates

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We are NOT doing well!Nearly 1 in 5 are actively disengaged this disengagement can negatively impact other employees

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Why?Why are we unable to create employee engagement above the 31% level?5/6/2011Copyright 2011 Optimum Leadership30

Why?We have been taught a theory 0f leadership that worked in the Industrial Age It no longer works in the Information and Knowledge Age

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Why?We have been taught the Taylor theory of scientific management

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Why?The Taylor Theory of Scientific Management tells leaders to:Tell people what to do and howClosely supervise and evaluate themHold them accountable to the one correct way with a performance management process that does not work

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Why?The Taylor Theory of Scientific Management helps us:Control employees

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Why?The Taylor Theory of Scientific Management damages:TrustKnowledge accumulationFreedom to Innovate

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Why?Accelerating knowledgeFreedom to innovateTrustAll needed for engagement

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Why?We still use the Taylor Scientific Management Theory5/6/2011Copyright 2011 Optimum Leadership37

ExampleMany are promoted into their positions based on technical knowledge

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ExamplePromoting based on technical knowledge (instead of having engagement skills) is consistent with Taylor Scientific ManagementOnly the boss knows best

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We need a new theory and new skillsThere is an alternative leadership theory and a new set of employee engagement skills5/6/2011Copyright 2011 Optimum Leadership40

We need to CHANGE!We used to heat our homes with a fireplace

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We need to CHANGE!We replaced the fireplace with oil and gas heat because it was less costly, much more effective and much more efficient

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We need to CHANGE!We replaced the fireplace as our source of heat because we found a better way

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We need to CHANGE!The Taylor Theory is like the fireplace, Outdated!

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What we needWe need a new theory that works with the age of knowledgeWe need a new theory of leadership5/6/2011Copyright 2011 Optimum Leadership45

What we needNew environment using the new theory and skills to optimize innovation and engagementThe two go hand-in-hand5/6/2011Copyright 2011 Optimum Leadership46

What we needOnly fully engaged employees know how to optimally learn and innovateTalent alone will not create the environment of engagement

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SummaryIt is the working environment that makes the greatest difference

Without the new theory and skills we cannot create the engaged environment5/6/2011Copyright 2011 Optimum Leadership48

SummaryDo You?5/6/2011Copyright 2011 Optimum Leadership49

Take action nowLearn:The skills leaders need to create engagement with every interactionHow to help disengaged de-select outwww.optimumleadership.com

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Take action nowLearn:To measure the employee engagement level at your companyWhich barriers are stopping you from improving engagement nowwww.optimumleadership.com

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Take action nowRequest a client case study that shows how one organization made the transformation to a new leadership theory and a new set of skillsFREE at:http://www.optimumleadership.com/articles.asp

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Wally Hauck holds a Ph.D. in Organizational Leadership A Certified Speaking Professional 15 years consulting experienceConsulted with dozens of organizations and coached hundreds of individuals www.optimumleadership.com203-874-8484

The future depends on what we do in the presentGandhi5/6/2011Copyright 2011 Optimum Leadership53

Thank You5/6/2011Copyright 2011 Optimum Leadership54