Transcript Loyalty Presentation - Institute of Management Accountants

Creating a Culture
that Engages, Empowers
and Enriches Employees for
Increased Earnings
by
Dianne M. Durkin
Loyalty Factor™, LLC
[email protected]
(603) 334-3401
All Rights Reserved  Copyright 2012 Loyalty FactorTM, LLC
All Rights Reserved  Copyright 2012 Loyalty FactorTM, LLC
My Mission
“To be the best I can be and help
others be the best they can be.”
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Agenda
• What do employees need and want?
• Methodologies to engage, empower and
enrich employees
• What it takes to build a culture based
upon trust
• What Fortune’s Best Companies to Work
for do
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“Workers have three primary needs:
• Interesting work,
• Recognition for doing a good job,
• Being let in on things that are
going on in the organization.”
~ Zig Ziglar
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Engagement
Actively
Disengaged:
Unhappy
and
Spreading
their
Discontent
Engaged:
Loyal &
Productive
Engaged
41%
Not
Engaged
Not
Engaged:
Just
Putting in
their Time
46%
Based on
research from
People Metrics
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What Creates Disengagement?
Undefined Vision,
Purpose, & Values
Providing Genuine &
Appropriate, Praise
& Recognition
Trust of Upper
Management
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Cost of Disengagement
$300 Billion in Loss
of
Productivity per Year.
Based on research from
The Gallup Organization
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Engagement Fuels Performance
Business units at the highest level of employee
engagement in the Gallup Organization’s database
have an 83% chance of performing above the company
median when it comes to measures of:
• Customer loyalty • Safety absenteeism
• Shrinkage
• Profitability
• Quality
• Turnover
This compares to a 17% chance of performing above
the company median for units at the lowest level of
engagement.
Odds of high achievement are
FIVE TIMES LOWER!
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Engagement
Percentage
Growth
Operating
Income
Companies
with
Low Employee
Engagement
Companies
with
High Employee
Engagement
-32.7
Percentage Percentage
Growth Net Improvement
Income
EPS
-3.8
-11.2
+19.2 +13.2 +27.8
Source: ISR Global Engagement Survey 666,000 Employees
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The Cost of Lack of Engagement
Is estimated to be
35% of payroll.
(This figure assumes that the Not-Engaged
and Actively Disengaged employees are
giving 50% of what they are capable of, and
that Engaged employees are giving 100%)
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Talent is the engine of the modern
organization, and engagement is the
mystery ingredient that
can transform the engine's output.
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“The true essence of
leadership
is that you have to
have a vision.
You can’t just blow an
uncertain trumpet.”
~ Theodore Hesburgh
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Purpose
Values
Vision
Goals
Procedures
Roles & Responsibilities
Communication
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Purpose:
The reason your organization was created.
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Some Purpose Statements:
To use our imagination to bring happiness to millions.
~Walt Disney
We are in business to preserve and improve human life.
~Merck
To make people away from home feel that they are
among friends and really wanted.
~Marriott
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Some Purpose Statements:
Ladies & Gentleman serving Ladies & Gentleman.
~Ritz Carlton
We exist to alleviate pain & disease. ~Johnson & Johnson
We feed hungry people.
~Greater Boston Food Bank
We are 911 for food.
~Greater Boston Food Bank
We bring humanity to the air.
~Jet Blue
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Participation is Key
Ask employees:
1. What is it that we believe?
2. What difference do we make?
3. What is unique about the way we do it?
4. What makes us innovative?
5. What makes us a great place to work?
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Ask and Listen
• What is the present level of pride and commitment in the
organization?
• What are the top three strengths of the organization?
• What are the top three areas for improvement in the
organization?
• What do you presently need to improve your efficiency and
effectiveness?
• Is there one thing this organization needs to stop doing?
• If you could give one message to the president of the
organization, what would it be?
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The Engagement & Empowerment
Process for Improvement
2
1
3
Develop the Focus
& Strategy for
Improvement
Ask, Listen, &
Engage to
Understand
Present Status &
Create Momentum
for Improvements
Communicate the
Plan to Address the
Identified Major
Business
Improvements
4
7
Measure Results
6
Implement the
Improvements
5
Build Team
Infrastructure to
Develop
Improvement
Solutions
Communicate
the
Improvements
that will be
Implemented
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Engagement & Empowerment
• Asked to be creative and innovative
• Continually growing and improving
• Developing a culture where new ideas are
openly welcomed
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Great Leaders Enrich People
What do people want from their jobs?
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What Do People Want from Their Jobs?
Factors
Feel Of Being “In” On Things
Full Appreciation Of Work Done
Understanding of Personal Issues
Good Working Conditions
Promotion In The Company
High Wages
Tactful Discipline
Job Security
Personal Loyalty Of Supervisor
Interesting Work
Supervisors
Employees
10
8
9
4
3
1
7
2
6
5
2
1
3
9
7
5
10
4
8
6
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Top Items Employees
Want from Their Organization
•
•
•
•
•
•
Feeling “In” On Things
Appreciation for a Job Well Done
Management Support
Growth and Development
Job Security and Wages
Honest, Constructive Feedback
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The importance of valuing people
for their contributions and ideas,
and appropriately
rewarding and recognizing them
cannot be understated.
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Great Leaders Make a Difference
In the Lives of Their People,
In the Processes and the Organization.
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Great Leaders
Encourage Their People
To Bring Their Brains to Work.
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“The best executive is the one
who has sense enough
to pick good men to do what he
wants done, and self restraint
enough to keep from meddling
with them when they do it.”
~ Theodore Roosevelt
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Trust is the foundation and
framework.
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Building Trust
Four Elements Necessary for Building Trust
• Congruence
• Openness
• Acceptance
• Reliability
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Building Trust
• Which of these behaviors are most important
for you to exhibit in terms of your responsibility
to your organizations?
• Which of these behaviors do you believe are
most important to your employees in terms of
their expectations of the senior management
team?
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Building a Culture
Based upon Trust
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Walk the Talk
Responsibility-Based
Authority-Driven
Level of Trust
Management and employees
operate with honesty, integrity
and passion.
Limited.
People avoid responsibility
and take advantage of you.
Team
Behavior
People believe in each other...
and partner to create a great
experience.
It’s not my job attitude and
behavior.
Who is
Responsible?
Everyone is responsible,
employees solve problems and
own the outcomes.
No one accepts responsibility...
blame is paramount.
Self-Directed
take ownership.
Other-Directed
do what they’re told,
avoid taking risks,
and little initiative.
TM
Employee
Behavior...
Loyalty Factor
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, LLC
A Culture Based Upon Trust
• Responsibility and accountability are high
• Individuals accept change initiatives
• People ‘choose to’ go above and beyond
• People think outside of their roles and
responsibilities
• Individuals accept responsibility for their actions
• Individuals feel accepted and respected
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It’s a Win / Win Culture,
It’s a TEAM!
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Fortune’s Annual
“Most Admired,” Best to Work for,”
and “Best Run” companies.
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Fortune’s Top 10 Best Companies to
Work for 2011
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Google
Boston Consulting Group
SAS
Wegmans Food Markets
Edward Jones
Net App
Camden Property Trust
Recreational Equipment (REI)
CHG Healthcare
Quicken Loans
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“To inspire and nurture
the human spirit – one person, one cup
and one neighborhood at a time.”
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• #73 on Best Companies
to Work For
• Employees are called “partners”
• Medical benefits and profit sharing for full
and part-time employees
• “Bean Stock” program for full and part-time
employees
• Health benefits for same sex partners
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“We bring humanity to the air.”
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• Everyone is a “Crew Member”
• Established Shared Value System
– Safety, Caring, Integrity, Fun and Passion
• Hire for their Culture and Attitude
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• Created Five Principles of Leadership
– Inspire Greatness in Everyone
– Treat People Right
– Do the Right Thing
– Communicate with Your Team Consistently
– Encourage Initiative and Innovation
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#32 on Best Companies to Work For
Golden Rule: Treat others as you
would like to be treated.
Staff members: called Team Members
Motto: Whole Foods, Whole People,
Whole Planet.
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Whole Foods Team Model
•
•
•
•
Employees are responsible for results.
Access to real time performance data.
Decision authority over key variables.
Tight coupling between results,
compensation, and recognition.
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Business Results
• January 2012, Fortune “100 Best Companies to
Work for” – for the last 14 years
• August 2010, Whole Foods reported earning 53
percent more per diluted share year-over-year in
the quarter ended July 4, with total sales
increasing 15 percent to $2.2 billion.
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Wegmans treats its customers really well
and it treats the employees even better.
#4 on Fortune’s list of Best Companies to
work for in 2012,
and has been ranked on the list for
15 consecutive years.
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• Articulates a shared vision
• Recruiting
– Hire for the values of caring and trust
– Live those values every day
• Philosophy: The more we invest in training,
the more it comes back to the bottom line
• The company spent 1mm dollars in training
for 2 new stores in VA
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“Everything is a Learning Event
for our employees. It’s just part
of doing business.”
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“Fun, and a little weirdness.”
#11 on Fortunes List of Best
Companies to Work for in 2012
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• 2nd year under Amazon
• Maintains its zany culture
• New Programs:
– Employees pitch new business ideas
– Laughter yoga classes
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Call to Action!
• Ask
• Listen
• Engage / Empower / Enrich
• Create a Positive Environment
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And Watch
Your Earnings
Grow!
Thank You!
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The Power of
MAGNETIC
Leadership:
It’s Time to Get R.E.A.L.
By: Dianne Durkin
The Loyalty Factor
Building Employee, Customer
and Brand Loyalty
By: Dianne Michonski Durkin