Employee Engagement Strategies In Hard Economic Times

Monday, September 21, 2009 by Milan Larson
We know from Gallup's leading research on employee engagement that only 25% of the workforce is actively engaged with their employers.  Much of this research, though, comes from economic times that were much more prosperous than our current economic woes.  So what is happening with employee engagement when times are tough?  According to Leigh Branham and Mark Hirschfeld, 134 out 210 employers surveyed saw lower employee engagement scores from 2007 to 2008.  Upon closer analysis, however, there are 5 key factors that highlight why some employers continued to gain employee engagement while others (in these same 5 areas) saw their level of employee engagement decrease. These 5 key Leadership Differentiators are:
  • Setting clear and compelling direction.  Employees value accurate information about where the company is heading, even if it's somewhat unclear during these times.  By keeping the employees focused on the future direction, the employees will be working on the "same page," causing a more focused energy which is exactly what the company needs in tough times.
     
  • Open and Honest Communication.  When the news isn't all that positive, leaders can fall into a trap of thinking that no news is good news and that they'll only communicate when something is looking positive.  In reality, the exact opposite is true and when there isn't any news to report, effective leaders communicate there is no news.   The alternative to limiting the amount of communication is that the employees will eventually make up their own version of the news.  This can be very dangerous because the made-up version of the news could be much worse than the reality.
     
  • Continued focus on career growth.  When we stop to think about employees' concerns during these economic, we usually assume the employees are only concerned about their current job and whether or not they'll be able to keep it in the near future.  That's only half the picture, though.  Employees also continue to think about their long-term futures as well.  As they consider their long-term career plans, they look to their employers for help with continuous career development.
     
  • Recognizing and Rewarding High Performance.  The employers whose employee engagement scores increased from 2007 to 2008 recognize they still have to reward people who are working extra hard during these tough times.  No, it's not necessarily easy to come up with the same kind of rewards in these economic times but it is possible, it just needs more sustainable innovation to be more efficient with limited funds. 
     
  • Employee Benefits that communicate commitment to employee.  Employers who scored higher on employee engagement in 2008 did a much better job in the benefits area of the survey.  It didn't necessarily mean the companies continued to pay more for the employee's benefits.  In some cases, it just meant the companies did a better job communicating the benefits that were not going to change.  The "no change" message, in and of itself, communicated a commitment on behalf of the employer that the employees security needs were going to satisfied.

Keeping a highly engaged workforce in place is always a challenging task for employers and it is especially tough today.  The alternative though, is a workforce that begins to dis-engage which in turn starts to erode the positive experience for an organization's customer.  When this cycle starts to develop, employee morale will naturally start to shake--leading to more disengagement.  The real measure comes in our response to the challenge.  How we respond will determine our ability to sustain high performance much like Sir Winston Churchill's reminder that "kites rise highest against the wind--not with it."

Employee Engagement Strategy: Building Trust

Saturday, September 12, 2009 by Chuck Appleby

East Alabama Medical Center  - Building Trust...One Employee at a Time

In 1983 when Terry Andrus became the President of East Alabama Medical Center (EAMC) in Opelika, Alabama, it was known as “a place where you only go to die.”   Financially troubled when Andrus arrived, he set about to put the hospital on a sound financial basis…to get the business and financial processes on track and to increase the operating margin by adjusting the fee structure.  He began improving organizational performance; he succeeded in getting the hospital out of fiscal hot water.  And over time he began to make progress on deeper problems...the less than stellar patient satisfaction statistics.

He began almost immediately practicing a leadership philosophy known as Management by Walking Around (MBWA)--an early employee engagement strategy. To this day, he walks around the hospital every morning on his way to his office.  He spends time every day stopping by to talk with folks.  People were suspicious at first. He began to get to know people…he listened to their challenges at work; he listened to their joys and fears at home.

Through his MBWA, he began to take note of challenges that people were facing in doing their job.  He listened and he acted.  He developed a collaborative leadership model.  Soon, a culture evolved of engaging employees to solve problems…it became an environment where managers listened to their employees.  Andrus and his colleagues focused on improving the patient experience in the hospital.  They created an operating philosophy that directly linked the patient experience to the employee experience.  Employees who were treated well would in turn treat customers well.  The patient experience began to improve dramatically.  A customer service code entitled What we Expect from Every Employee was adopted that outlined every employee’s commitment to the patients:

  • Assist people in finding their way; escort them to their destination if necessary
  • Greet others in hallways, elevators and workstations with a kind word or smile.
  • End each encounter with a warm and positive smile.
  • Anticipate patients’ needs so they will not have to use their call lights.Listen carefully; do not interrupt; give other people your full attention.  

Customer service forums were created.  Humorous videos were used in training courses…to highlight good, bad, and ugly customer service practices.  Patient satisfaction scores rose dramatically.  At about the same time, the hospital adopted a quality management program.  Seeking best practices from other hospitals and educating employees in high performance practices is a key part of the campaign. 

In 2001, EAMC was the first public organization to get on Fortune Magazine’s “100 Best Companies to Work For” list.  In 2002, it was #18 on the list.   In May 2005, they were named the top performer in Alabama (Alabama Quality Assurance Foundation). Today,  EAMC’s patient satisfaction scores are in the 95-99th percentile. They have achieved sustainable excellence.

Last year, I told my friend Mike about the hospital.  With a big smile on his face, Mike told me that he had admitted his ailing father to East Alabama Medical Center the week prior.   On his third day at the hospital, walking thru the lobby on his way to his father’s room, he felt a tap on his shoulder.  He turned, and a woman asked: “Mr. Mears how’s your dad.”  My friend was in awe as he told me the story.  Never had he received such care and attention in a hospital.  He went on to tell me that the woman who greeted him had checked him into the hospital two days earlier. 

My friend’s story demonstrated a simple fact.  Showing that you care about your employees—Terry Andrus’ morning walks thru the hospital—can build a tremendous reservoir of trust which can heal very sick organizations...even at places where “you only go to die."

 


Sustainable Product Innovation: Bringing Out the Best

Saturday, September 12, 2009 by Chuck Appleby

A colleague told me a great story about an employee engagement strategy.  She had been hired by a well-known pharmaceutical company to take part in a major initiative to improve corporate performance.  Like many pharmas, the challenge is getting new products thru the development pipeline in a timely and cost-effective manner.

Upper management had given a group of senior scientists an ultimatum to figure out how they could do a better job leading product innovation. My colleague--an organization development (OD) professional--was given the task of meeting with researchers from the R&D group to address the ultimatum.

She walked into a hornet's nest...the room was filled with angry and demoralized people...to a person they were hard working, highly educated and very experienced.  After 30 minutes of venting...she had very serious doubts that any attempt to brainstorm sustainable product innovation strategies could happen.

In a moment of inspiration that often comes in times of stress, she asked them to forget about product innovation and simply think back to a time in their careers when they "found their bliss."  What followed as nothing short of miraculous...yet predictable from what we are learning about overcoming resistance to change.

Many of the scientists in the room recalled their experience in post-doctoral fellowships.  In those peak experiences, they were allowed to follow their instincts and explore new ground with minimal risk.  There was no one hanging over their head demanding a tangible benefit or marketable product. 

In discussing their experience as "post docs" the group came to realize that an overarching driver in the experience was to extend the time in the fellowship...to keep the bliss alive.  They further realized that they had carried this practice forward into their work in the pharma labs.  Questions began to emerge in their dialog.  "Are we allowing a learned behavior during our 'post doc' experience to hinder a successful culture of innovation?"   In keeping the research going for as long as funding could be obtained..."Are we reducing the chance of achieving competitive advantage?"

By the end of the afternoon, the group has come to a breakthrough idea.  They realized that research projects that were not paying off in a reasonable time should be terminated.  They began to develop a set of criteria that would allow them to identify "failures" earlier in the process and in so doing give more new ideas a chance to see the light.

Remembering peak experiences is a useful way to get people into a positive and creative frame of mind.  It is at the heart of new tools in the field of OD such as appreciative inquiry and appreciative intelligence that are helping to create successful organizational change.

Employee Engagement Strategy

Wednesday, September 9, 2009 by Chuck Appleby

Daniel Pink, author of Free Agent Nation and A Whole New Mind, is coming out with a new book in December entitled, Drive: The Surprising Truth About What Motivates Us.  Pink concludes that there is a mismatch between what research tells us about motivation and what businesses actually practice.

Social scientists have long known that extrinsic motivators (e.g. money) are far less powerful than intrinsic motivators (e.g. pride in work) with respect to complex tasks.  Moreover,  there has been a well-documented difference between perceptions of managers vs employees on what motivates.  Managers have traditionally ranked financial rewards, for example,  much higher on the list of effective motivators than their employees

Pink's new book is very timely...as high performing organizations are increasingly consumed with developing the perfect employee engagement strategy to improve corporate performance. At the heart of the powerful intrinsic motivators are mastery, autonomy and purpose.  Helping employees become the best at what they do; giving them the freedom to create and learn; and fostering pride in the purpose of the organization are three of the most powerful internal motivators identified in the research. 

Together the trio of motivators creates a virtuous cycle--when a leader spends time coaching an employee to master their trade it becomes easier for the leader to let go which in turn fosters confidence and initiative.  Mastery and autonomy contribute to an employees ability to make a difference in service of the corporation's core purpose.  Greater connection to the core purpose then reinforces the desire to attain mastery and take initiative...and the cycle continues...

Leveraging the three core intrinsic motivators (i.e. mastery, autonomy and purpose) requires some vital behaviors from leaders.  For mastery, leaders must create a safe environment for learning and provide regular and actionable feedback; for autonomy to work, leaders must let go and then hold people accountable; for purpose, leaders must clarify an organization's core mission and recognize achievement--constantly emphasizing an employee's connection to the end product or service.


Achieving competitive advantage and sustaining high performance have never been more challenging for global companies.   Revelations about the devastating economic impact of short-term financial incentives further underscores the need for corporations to use greater sophistication in developing strategic leadership skills. Teaching leaders how to improve performance using intrinsic motivators must rise to the top of the leadership development agenda.


Speak the Truth and Point to Hope: Employee Engagement Strategy

Monday, September 7, 2009 by Chuck Appleby

These are tough times for all of us.  Uncertainty about the future is a dark cloud circling endlessly overhead.  We hang on every word from leaders in all walks of life...from politicians to pundits...from corporate giants to entrepreneurs.  We are all searching for glimmers of hope...hope that some order can be restored in the global economy.  

Leaders intent on building an enduring organization must face the dark cloud of uncertainty...knowing full well that overwhelming levels of anxiety and stress can gut their ability to adapt and overcome Resistance to change.  Their challenge is to engage their employees...to build and sustain trust...all this in the midst of pressures to downsize, limit investment in their people, and reduce benefits. 

At the heart of a great employee engagement strategy is the leader's ability to walk a fine line between optimism and realism.  It is a delicate balance...one that Jim Collin's referred to as The Stockdale Paradox in his classic book Good to Great: Why Some Companies Make the Leap and Others Don't. 

Admiral Stockdale was a Navy pilot who spent 8 years in Vietnamese POW camp.  Despite frequent torture and deprivation, he never lost faith that he would get out of the prison and turn the experience into a defining event of his life.  

When Collins asked Stockdale 'Who didn't not make it out?  Stockdale replied 'The Optimists.' They were the ones who thought they would be out by Christmas...and Christmas came and went....and then Easter...and then the next Christmas...they died of dashed hopes.

What Stockdale learned...and what leaders in tough times must learn... is the need to speak the truth and point to hope; to lay out the grim reality on the one hand and at the same time have unbridled faith in the future. 

I can almost hear Stockdale talking to his comrades...We may not get out by Christmas, but by God...we will get out!







 

How to begin developing sustainable business strategies and actions

Friday, September 4, 2009 by John Latham
 After executives begin to appreciate the extent of potential impacts from climate change on their own operations or those elsewhere in their supply chain, there is the inevitable question of how best to begin developing sustainable business strategies and implementing sustainability-oriented practices. Fortunately, there is a set of three recent books organizational sustainability by credible authors which will provide a great deal of assistance. 

 

The first is compiled by a set of about 15 authors under the editorial leadership of Jeana Wirtenberg. This Sustainable Enterprise Fieldbook includes significant attention to issues of leadership at various organizational levels, as firms seek to direct attention toward the measurement of “externalities” like carbon dioxide emissions, etc.

 

William Blackburn authored the Sustainability Handbook, which at 800+ pages is the most extensive of the three. The extensive diagrams and tables make it highly useable by those who want a break from endless text.

 

The third in the trio is Making Sustainability Work by Marc Epstein. This book gives extensive attention to both internal and external measurement systems for implementing Triple Bottom Line (TBL) evaluation and reward systems essential for developing a successful employee engagement strategy. Since most existing corporate measurement systems need major changes to comply with the G3 standards of the Global Reporting Initiative and the Carbon Disclosure Project, Epstein’s guidance can be very valuable to those executives responsible for society’s rising expectations for organizational transparency in various forms.

 

Given everyone’s busy schedules, it is worth noting that all of the above books can be read in parts and any sequence. In short, they can be used as reference documents.