hr summit presentation danielle van alewijn
TRANSCRIPT
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I will speak about ‘organisations in general’ although I realise that each organisation and each situation differs from one another. If you would like to have a chat with me, more tailored to your own situation, do not hesitate to pay me a visit at our stand. Let’s start!
Individual employee energy
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Basically each organisation performs on energy. With this energy, the organisation moves forward. Successful organisations try to make optimal use of the energy that lives in each individual employee...and translates this into
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Organisational energy
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....as much organisational energy as possible.
Contextual developments
The secrets of good employership Pragmatic best practices for today’s world
Good employership
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The five secrets of being or becoming a good employer have everything to do with this principle. Before I go there, I first need to outline a few contextual developments. Apart from that we can never ignore the context we live in, it makes it easier to understand. And of course, for those who have seen me more often, I really like sharing best practices so you can take it back to your organisation and put it into practice yourself.
Continuous technological innovation
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One of the most important contextual factors is continuous technological innovation. Bill Gates said in November 2011 that he predicted that more technological innovations will occur in the next 3 years than what we have experienced in the last 10 years. Although I have to say that I think a lot has happened already from 2001 to 2011... Interestingly, organisations do not develop that quickly.
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Organisations remain
traditional
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Interestingly, organisations do not develop that quickly. What we actually see is that technology changes: new technical developments. And the organisations themselves remain relatively traditional.
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Generations that think differently
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Moreover, we see that generations change. For the most part, they have been raised with new technological possibilities. New generations on the labour markets seem to be more sensitive and capable to manage all the messages that they have to digest every day. They are used to multitasking and they come across as if they can take perfect care of themselves. A generation that hates to be babysat. This generation is sometimes misinterpreted as lazy but in fact they are highly capable. Additionally, they are very willing to work with you once they are given the opportunity to grow and develop. And once they do not have to adhere the strict policies and structures.
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Do more with less (financial) resources
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And not to forget: we live in a time of financial insecurity. After the financial crisis, we now speak of a country crisis in Europe. It is clear that economies based on credits are no longer sustainable. And what is happening now goes probably a bit deeper. Every day we see that organisations are either staying in a situation that allows them to survive the storm or are preparing for the storm. This means that organisations are very critical of how they can do more with less people. And become more productive with lower costs.... We see many organisations focus on efficiency (rather than effectiveness). As a result, bureaucracy increases which is not always the desired outcome.
INGREDIENTS FOR SUCCESS
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With our employee surveys we receive thousands of opinions each month. By comparing the results of employee surveys with the financial results of organisations, we see a clear deviation between those organisations that perform well and those that are less successful. Good financial performance goes hand in hand with how well the employees feel they fit in at the organisation and their engagement in their work. Now I would like to reveal the five secrets of good employership.
1) Clear direction
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First of all: it should be crystal clear where you would like to go to as an organisation. Call it mission, call it vision, call it strategy... The point is that everybody understands why you do what you do. Internally and externally. A very important question to ask yourself is this: “What if your organisation would not exist already, why would you found it?” [wait] The answer to this question is very important to determine the direction of your organisation. The most important job of a Board of Directors is, in my opinion, to carry out the company’s direction consistantly. To employees, stakeholders, external relations and customers.
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2) Right people onboard
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Secondly you need to have employees who are willing to contribute to the company’s direction. Having the right people onboard. Employees who understand the mission, live the mission and who are willing to go the extra mile for it. Basically employees who have sufficient energy to contribute. This also means that you should consider letting people go who do not show this willingness or who do not have the energy (or not anymore).
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3) Set the boundaries / playing field
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Thirdly it is very important to determine the playing field. What will be the playing field where your employees play? What are the rules? It is basically setting the boundaries of a company’s direction. The reason why you need to do this is clearly to prevent a loss of focus and as a result it becomes a complete mess. Organisations that score really well in our surveys show - interestingly - very broad boundaries. Employees understand the direction AND their playing field and they can decide for themselves what choices need to be made in order to meet the ultimate goal.
4) Letting go
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And then the fourth...something really really important. Letting go. Trust your employees. Get out of their ways. I will get to this point later in my speech as this is the point where it mostly goes wrong - especially in times of an economic downturn.
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5) Continuous insights
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In order to manage it all, it is important to help your employees with tangible insights. What is the yardstick and what are the milestones in the journey to get to the ultimate goal? It is absolutely crucial to give your employees the right information. As complete as possible, and I don’t mean as much as possible because you would like it to be pragmatic. The feedback that your staff need to receive, should be information that encourages them to develop and improve themselves...their team and therefore the entire organisation. We always recommend to not only provide them with financial figures but with feedback from customers, stakeholders and their immediate colleagues as well. Dit zijn de vijf basis ingrediënten voor duurzaam succesvolle, energieke organisaties.
Five basic elements of good employership
Clear direction Right people onboard
Set the boundaries Letting go Continuous insights
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These are the five basic elements of becoming and remaining a sustainable, successful and energetic organisation. So, setting a clear direction and the playing field, having the right people onboard and let go. This is not rocket science. But why is this not happening on a large scale? It differs from one company to another. And like I said, it has mostly to do with ‘letting go’. The thing is, in order to let go, it is important that the direction and the boundaries are clear, that you have the right people onboard and that you can facilitate them with tangible insights... The hiccup lies in a five letter word: TRUST.
Less trust = increased ‘trust tax’ = increased bureaucracy = slowing down + increase in costs More trust = increased ‘trust dividend’ = increased flexibility = speeding up + decrease in costs
Source: S.M.R. Covey
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What happens is when less trust is shown, a trust tax needs to be paid. According to Mr Covey. The number of processes and procedures increases. Control mechanisms determine daily work days. As a result, the speed tumbles down. Ghandi said once that “the moment there is suspicion about a person’s motives, everything he does becomes tainted”. It can also go the other way around. You generate dividend when you GIVE trust. People who are not held back, excel more easily, they come up with new ideas and speed up the process. As a result, the organisation moves forward and the costs decrease in general.
CURRENT DEVELOPMENTS
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Looking at the development of successful organisations that we study on a daily basis, we can conclude that trust is one of the major success factors. Letting go and giving trust. I would like to share three best practices with all of you that might be useful to implement in your own organisation.
Social innovation 1)
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First of all: social innovation. Nice definition that does really well in annual reports. But what exactly does this definition mean?
Social innovation =
Innovate from within
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Social innovation means to innovate from within. It means creating a working atmosphere in which employees think of smarter and faster ways to do their jobs better. Or what can be improved to achieve a better performance. It makes perfect sense: who knows better than your own staff what needs improvement? Social innovation is nothing more than giving employees space to find their own solutions and to share this with the right people and to come up with a follow-up to solve the issue.
2) Less management
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The second development that we have come across is the desire for less management.
Main reasons - Need to innovate faster - New generation prefers a different leadership style - A lot of incompetent managers
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There are three reasons why we notice a call for less management 1) The need to innovate faster = management and many echelons seem to slow this process down. And I am sure you all can relate to that. 2) The new generation and the generation after that prefers a different leadership style. Once they master the task, they do not need to be micromanaged on task level. They would like to stretch out their wings and be stimulated in how they can contribute. They just do not want to be patronised. 3) And there are - unfortunately - a lot of incompetent managers And this has something to do with the ‘so called’ Peter Principle
Peter Principle “In a hierarchy every employee tends to rise to his level of incompetence.”
Source: dr. Laurence J. Peter
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And this has something to do with the ‘so called’ Peter Principle, a theory formulated in 1969 by dr Laurence J. Peter. “In a hierarchy every employee tends to rise to his level of incompetence.” One employee does his job really well and receives a promotion. For instance, the best sales man becomes Sales Manager, the best teacher becomes Head of the University and the best nurse becomes Head of Nursing. The result is in many cases that you lose a brilliant specialist and gain a lousy manager in return.
3) More focus on society value
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A third trend that I would like to share with you is that successful organisations have a greater focus on society value. What it is that the organisation does to contribute to the society. That sounds a bit ‘green’ maybe but we see a shift in attitudinal drivers of employees once they feel the focus is not only on shareholder value but it also has a social impact.
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Employees feel immediately committed to their organisation once they have the feeling that the organisation also has an impact on society. They are highly likely to spread a positive word to others which has a positive impact on company pride and employer branding. Customers like to do business with suppliers who are sustainable and that do the right thing. Customers tend to be more loyal to organisations with a focus on society value. Positive publicity will help to increase your reputation. Which has in the end a positive impact on your stakeholder value anyway.
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And this goes beyond presenting yourselves as ‘green’ to the outside world. And I don’t want you to make the association with the environment. It is not only about how many trees you plant, what you do with your waste or to what extent you use green lease cars.... It is all about your core business. Contributing to society from your core business, from what you are good at.
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It is all about your core business. Contributing to society from your core business, from what you are good at. So the question is...what is the added value you deliver to society?
What is the added value that you deliver to society from your core
business?
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So the question is...what is the added value you deliver to society from your core business? A nice example is Jamie Oliver. He adds value to society from his own expertise, as a chef. In order to fight obesity in children. I’ll show you a short film in which he introduces himself at a TED talk.
Profit
People Planet
bottom line: triple
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There is more than just one bottom line. And it is great that more and more organisations are becoming more aware of this. The so called triple bottom line illustrates that the success of an organisation is a combination of social, economic and environmental aspects. Financial successes, social responsibility and taking good care of our planet.
Individual employee energy
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Each individual has a certain amount of energy.
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Organisational energy
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....and you would like to translate that into as much energy as possible for the organisation. To move forward...!
Organisational commitment
Employee engagement
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- Organisational commitment. You love to work for your company. You are proud of the brand of what the company does and employees feel that they fit in at the organisation. [start drawing] If you imagine an organisation as a cart who needs to be moved forward, then the employees who show organisational commitment and are engaged, are the ones who are in front of the cart. Once they are just engaged or just commited, they’ll be in the cart with a smile on their face and having the best intentions. Than we categorise ‘just satisfied employees’ and ‘dissatisfied employees’. And the ones who are not engaged or not commited, as slowing the cart down with their heels in the sand. In good times, the cart will move forward anyway. In bad times, the ones in front of the cart might give up because it is too exhausting.
Organisational commitment
Employee engagement
committed
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As a result, you are able to see to what extent your employees show organisational commitment... ...and the ones who are intrinsically engaged.
engaged
Organisational commitment
Employee engagement
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...and the ones who are intrinsically engaged. The best combination is of course...
commited committed &
engaged
engaged
Organisational commitment
Employee engagement
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The best combination is of course to look at the pool of employees who are engaged and commited to the organisation. The ones in front of the cart. How can you recognise them?
willing to go the extra mile, willing to constantly improve themselves, take initiatives for innovation, understand the bigger picture, willing to help others...
Organisational commitment
Employee engagement
commited committed &
engaged
engaged
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How can you recognise them: - they are willing to go the extra mile for your business - they are willing to constantly improve themselves - they take initiatives for innovation - they would like to understand the bigger picture of the business - they are willing to help others Looking at the other quadrants...
Organisational commitment
Employee engagement
commited committed &
engaged
engaged
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Looking at the other quadrants... Employees in this area are committed to the organisation. They like their colleagues, enjoy themselves and feel at home at the organisation. They are capable at what they do but they are not very passionate about their job.
Organisational commitment
Employee engagement
commited committed &
engaged
engaged
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And then you have employees who love their job and their field of expertise. Regardless of the organisation. Those are the ones that could easily swap your organisation for another as long as they can perform their job.
Organisational commitment
Employee engagement
not committed not engaged
commited committed &
engaged
engaged
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The employees in the fourth quadrant are not commited and not engaged. They feel stuck and do not have perspective. They just work because the job is paying their bills. The difference between red and green in this matrix can easily be recognised once you hear children speak about their working parents. ”Daddy is making people better” or “Daddy is making money”.
“only” 19.4%
source: Effectory’s Global Employee Engagement Index (www.geei.net)
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You obviously do not have to have only engaged and committed employees in your organisation. [...click...] When we look at the Czech Republic for instance, now we are here anyway, we see that only 18% of the labour market are as committed and engaged. Is this good or bad?
source: Effectory’s Global Employee Engagement Index (www.geei.net)
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You will know when we compare a few other European countries. In general we see that the Nordic countries score relatively better than the rest of Europe with percentages around 35%.
source: Effectory’s Global Employee Engagement Index (www.geei.net)
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Looking at a global scale, we have the following picture.
57%
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Looking at the benchmark of the best employers of 2012 so far, you clearly see a difference with the average. [....click....] ...57% is committed and engaged
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And to make the picture complete: the worst employers (who must not be named...) [....click....]
Why is it so important to have sufficient engagement & commitment in your
organisation? • Source for innovation • Energy, great workplace • Great effect on customers
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Why is it so important to have sufficient engagement in your organisation? 1. source for innovation 2. energy, great workplace 3. great effect on customers
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Clear direction & attention to societal
contributions Right people onboard Setting the framework Letting go Giving insights
What do you need to do as an employer?
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You already know what you need to do as an employer to stimulate organisational commitment and employee engagement?
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Why....
... is this not happening?
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Like I said before, this is not rocket science. But it is still not happening? Why?
What is holding us
back?
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What is holding us back? [....] Ego Fear Aversion to change Power - Rules and procedures - bureaucracy
What can HRM do?
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What can HRM do?
Utilize your central role as
HR
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HR has a key position in the continuity of the organisation and its performance. You are the business partner in the board room with valuable inside information regarding energy, quality, safety, finances and so on.
Create a sense of urgency
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Secondly, you could make it your mission to constantly highlight the people as one element of the triple bottom line and your most important asset. Create a sense of urgency that committed and engaged employees are the key in making rapid change in the current climate. [examples]
Minimise the gap between
management and employees
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Use your leadership programmes to move management closer to the employees Easy implementable best practices are: - social innovation lunches in which every employee can discuss important topics with senior management - who knows “Undercover Boss”. Indeed: join your staff for a day in their daily routines.
Pinpoint useless or obstructive processes
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4) Pinpoint useless or obstructive processes that stand in your employees way. Bureaucracy and control mechanisms are not always the best solution.
Stimulate
trust by practicing what you preach
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5) Practice what you preach and and start giving employees trust in order to unleash their potential. Help your managers to trust employees by illustrating how it will benefit them in the short and long run. - Trust your employees and only manage what you don’t want - Apply principles of social innovation where possible.
Prevent becoming overweight with managers
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- Prevent becoming overweight with too many managers and/or too many echelons. - Be critical once you spot the Peter Principle - If possible, why not challenge the organisation to reduce management layers? Basically the structure should be formed around creating the highest added value.
Thank you Vielen Dank Dank u wel Muchas gracias Obrigada Merci Mange tak Kiitos paljon Takk
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Thank you very much
Danielle van Alewijn Director Effectory International [email protected] +31 (0) 20 30 50 104 http://nl.linkedin.com/in/daniellevanalewijn http://www.twitter.com/daniellealewijn www.effectory.com
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Thank you very much