Engagement Strategy Playbook - CEMLA apply to positions outside of the organization. Note: Individual employee behaviors were correlated with measures of employees’ perception of

CEB Corporate Leadership Council™

Engagement Strategy Playbook

Step-by-Step Guidance for Building an Engaged, Aligned, and Agile Workforce

5

© 2015 CEB. All rights reserved. CLC2306515PRO

Engagement Is Critical to Achieving Business Results

Engagement Initiatives Ineffective at Driving Business Results

n = 3,954.Source: CEB 2010 Engagement Research Survey.

n = 3,954.Source: CEB 2010 Engagement Research Survey.

70% of business leaders

agree engagement is critical to achieve business results.

20% of business leaders

agree engagement initiatives are driving business results.

BUSINESS LEADERS QUESTION THE VALUE OF EMPLOYEE ENGAGEMENT

Business leaders believe engagement is critical to achieving results, but they question the effectiveness of current engagement initiatives on results.

■ Instead, business leaders now prioritize adaptability, agility, and collaboration to drive performance.

n = 1,630.Source: CEB 2012 Senior Leader Survey.

Note: HR executives answered for the entire workforce, while other executives answered for their function or department.

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ical

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air

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ety-

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ly

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Top Cultural Attributes of a High-Performance WorkforceQ: “To perform at the highest level over the next three years, my organization/department will need to be…”

0%

50%

100%81%

63%48% 47%

22%14% 9% 7% 5% 3% 1% 1%

Project # 15-1931

Catalog # CLC1975915PRO

© 2015 The Corporate Executive Board Company. All Rights Reserved.

Path to Maturity: Manage Succession

Conduct succession

planning only as

vacancies arise

Consider these steps to reach the next

level of maturity:

Current Level Next Level

Level 1

Level 2

Level 3

Level 4

Level 5

• Link pipelines to the high-potential talent process

• Inform strategic priorities with succession plans

Currently practiced (or no longer required)

Commence to achieve next level of maturity

Discontinue to achieve next level of maturity

Not currently practiced

Start doing the following:

56

INTRODUCTION EXECUTIVE SUMMARY PATH TO MATURITY NEXT STEPS APPENDIX

* The average maturity rating across organizations for Manage

Succession is 2+, Org = 368.

Inform strategic

priorities with

succession plans

Assess bench as a

whole rather than

just through

individuals

Link pipelines to the

high-potential talent

process

Consider both

current and future

leadership needs

Provide support

before, during, and

after transition to

new role

Make choices based

on consistent criteria

Assess the risk of

key talent attrition

Focus on critical

roles rather than all

executive level roles

equally

Follow formal

process

Include targeted

development for

successors

From CLC HUMAN RESOURCES™www.clc.executiveboard.com

© 2011 The Corporate Executive Board Company. All Rights Reserved. CLC7277510SYN

Building Engagement Capital 7

29%

28%

43%

87%

HR RECOGNIZES ENGAGEMENT IS DYNAMIC, BUT ENGAGEMENT MEASURES ARE STATIC

Perceived Importance of Time Measures in Engagement Surveys Compared to Prevalence

HR executives recognize the importance of engagement measures of past, present, and future perceptions, but the vast majority (87%) only measure perceptions of the present experiences effectively.

■■ Forty-three percent of HR executives believe perceptions about future expectations is the most important measure, but only 6% use surveys that effectively measure it.

■■ While 29% of HR executives believe perceptions about past experiences is the most important measure, only 7% use surveys that effectively measure it.

Source: CLC HR Engagement Research Survey.

“Surveys have a shelf life and recency bias; they’re about what’s

going on in a certain place at a certain time….we look at them as a way to identify low-hanging fruit and address that quickly.”Head of HRMaterials Supply Company

n = 354.

Present Experiences

Present Experiences

Past Events

Future Expectations

Percentage of HR Executives Indicating Time Period as Most Important Measure

Percentage of HR Executives Indicating Time Period Their Survey Effectively Measures

6%Future Expectations

7%Past Events

POTENTIAL ROOT CAUSE #1: ENGAGEMENT IS LESS IMPORTANT

THAN IN THE PAST

POTENTIAL ROOT CAUSE #2: ENGAGEMENT MEASURES ARE

UNDERPERFORMING

POTENTIAL ROOT CAUSE #3: ENGAGEMENT DRIVERS

ARE INCORRECTLY IDENTIFIED OR USED

POTENTIAL ROOT CAUSE #4: ENGAGEMENT IS NOT USED

AS AN INPUT INTO BROADER BUSINESS DECISIONS




CLC HR’S ENGAGEMENT CAPITAL FRAMEWORKEngagement established across time leads to better discretionary effort and retention, which organizations can leverage to improve organizational outcomes.

■■ The engagement capital diagnostic includes measures of employees’ perception of past events, present experiences, and future expectations at the organization.

■■ Engagement capital refers to the ability—over the long run—to build, spend, and deploy engagement to improve organizational performance.

Engagement Capital Organizational Performance

Past Events

Employees’ emotional and rational commitment based on their perception of previous events with their employer

Present Experiences

Employees’ emotional and rational commitment based on their perception of present experiences

Future Expectations

Employees’ emotional and rational commitment based on their expectations of their future employment experience

■■ Revenue

■■ Profit

■■ Customer Satisfaction

Talent Outcomes

Intent to Stay/ Retention

Discretionary Effort/ Performance

Engagement Capital Framework Defined: Engagement capital refers to the amount of commitment, discretionary effort, and intent to stay that employees exhibit given the combination of their past experiences, present events, and expectations about the future.


THAN IN THE PAST


UNDERPERFORMING








HIGH ENGAGEMENT CAPITAL INFLUENCES INDIVIDUAL EMPLOYEE BEHAVIORS

Each component of the Engagement Capital model provides insight into the likelihood of individual employee behaviors.

■■ Employees with favorable perceptions of past events are more likely to forgive organizational challenges, accept changes, refer job candidates, advocate employment at the organization, and remain with the organization when the labor market improves.

■■ Employees with favorable present experiences can better balance current workloads and are more likely to volunteer for additional work or help a colleague.

■■ Employees with high expectations for the future of the organization are more willing to accept additional workload, own their development, and are less likely to submit resumes to other organizations.

Engagement Capital Component Employees with High Engagement Capital Are More Likely to…

Past Events■■ Refer new job candidates.■■ Advocate for the organization as a great employer.■■ Not seek employment elsewhere when labor market improves.

Present Experiences■■ Balance current responsibilities.■■ Volunteer for additional responsibilities.■■ Help a colleague.

Future Expectations■■ Accept additional workload.■■ Own individual development and career.■■ Not apply to positions outside of the organization.

Note: Individual employee behaviors were correlated with measures of employees’ perception of past events, present experiences, and future expectations to determine which engagement capital component was most influential.



THAN IN THE PAST


UNDERPERFORMING








DIFFERENT DRIVERS IMPACT FUTURE EXPECTATIONS COMPARED TO PRESENT EXPERIENCES

Distribution of Drivers of Present Experiences and Future Expectations

Importance to Future Expectations

Not Important for Present Experiences or Future Expectations

Important for Present Experiences

Important for Future Expectations

Important for Both Present Experiences and Future Expectations

Imp

ort

ance

to

Pre

sent

Exp

erie

nces

Drivers that improve perceptions of present experiences alone are not sufficient for building strong expectations for the future.

■■ Prioritize the 5% of drivers that impact both present experiences and future expectations.


78%

9% 5%

8%


THAN IN THE PAST


UNDERPERFORMING








Weekly

MOST MANAGERS PROVIDE INFORMAL FEEDBACK TOO INFREQUENTLY TO HAVE OPTIMAL IMPACT

Managers must provide informal feedback at least monthly to impact engagement capital positively, but only half do so.

■■ Daily informal feedback from direct managers can impact engagement capital by up to 8%. Yet, only 12% of managers provide informal feedback at this frequency.

■■ Engagement capital is negatively affected when informal managerial feedback occurs only every few months; infrequent feedback may undermine employees’ trust and belief in the importance of their role.

■■ Fifty percent of managers deliver informal feedback less than once a month.

Maximum Impact of Managers’ Informal Feedback on Engagement Capital Versus Frequency of Informal Feedback

Max

imum

Imp

act

on

Eng

agem

ent

Cap

ital

Per

cent

age

of

Em

plo

yees

Rec

eivi

ng

Feed

bac

k at

Eac

h F

req

uenc

y

Frequency

Employees Receiving Feedback

Impact of Informal Feedback on Engagement Capital

For resources on providing effective informal feedback, please visit CLC Learning and Development’s Web site at www.ldr.executiveboard.com.

Daily Monthly Every Few Months

Yearly Never


Note: The maximum impact on engagement capital is calculated by comparing two statistical estimates: the predicted impact when an employee scores relatively “high” on a driver and the predicted impact when an employee scores relatively “low” on a driver. The effects of all drivers are modeled using a variety of multivariate regressions with controls.

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

(10.0%)

(8.0%)

(6.0%)

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

(10.0%)

(8.0%)

(6.0%)

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12%

20%17%

20%

9%

22%8%

5%

3%

(2%) (2%)

(9%)

10% 30%

20%

10%

0%

(10%)

(20%)

(30%)

8%

6%

0%

(2%)

(4%)

(6%)

(8%)

(10%)

4%

2%

Engagement capital outcome measure includes measure of employees’ perception of present experiences and future expectations.

www.ldr.executiveboard.com.

6© 2015 CEB. All rights reserved. CLC4576715SYN

UNA MIRADA MÁS CERCANA AL COMPROMISO DE LOS EMPLEADOS

El compromiso, en particular, es una medida del orgullo, energía y optimismo sobre el futuro. El compromiso impulsa el esfuerzo discrecional y la intención de permanecer en la organización.

Compromiso

Orgullo ■ La identificación con la compañía ■ Recomendando a la compañía a un amigo o familiar

Optimismo ■ Confianza en el futuro ■ Creencia en el progreso

Esfuerzo Discrecional

La disposición del empleado en trabajar mas allá de lo requerido.

Intención de Permanecer

El deseo de un empleado para quedarse con la organización.

Energía ■ Un sentido de urgencia ■ La emoción y/o el entusiasmo ■ El enfoque, concentración

Fuente: Análisis CEB.

8


0%

6%

12%

4%

12%

Generate stakeholder interest in engagement by communicating the potential effect on financial outcomes.

■ Firms with high engagement, alignment, and agility report higher profitability than their lower-performing peers.

■ High engagement is also associated with higher employee performance, retention, and customer satisfaction.

STEP 1: DEMONSTRATE THE POTENTIAL EFFECT OF ENGAGEMENT ON FIRM PERFORMANCE

Engagement Leaders and Laggards Alignment Leaders and LaggardsProfitabilitya Profitabilitya

Profitabilitya

Engagement Laggardsb

Engagement Leadersc

n = 90 companies.Source: CEB analysis.a Profitability, also referred to as profit margin, is a ratio of net income divided

by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company keeps in earnings.

b Laggards are firms whose levels fall in the bottom quartile.c Leaders are firms whose levels fall in the top quartile.







Alignment Laggardsb

Agility Laggardsb

Alignment Leadersc

Agility Leadersc

2.5x

2.0x

x

x

Higher levels of employee engagement are also associated with higher:

Employee Performance—Every 10% improvement in engagement can increase an employee’s effort level by 6%, which can improve an employee’s performance by 2%.

Employee Retention—Every 10% improvement in engagement can decrease an employee’s probability of departure by 9%.

Customer Satisfaction—Customers of firms with high levels of employee engagement are 9% more satisfied than customers of firms with low levels of employee engagement.

Project # 15-1931

Catalog # CLC1975915PRO

Agility Leaders and Laggards

7

© 2013 The Corporate Executive Board Company. All Rights Reserved. CLC5909713PRO

STEP 1: BUILD BUSINESS LEADER BUY-IN FOR STRATEGIC WORKFORCE PLANNING

Two Key Components of a Strong Business Case

Provide tangible examples of the benefits of strategic workforce planning to engage business leaders in the process.

■ Business leader involvement in strategic workforce planning is critical, but leaders are often distracted by more immediate staffing challenges.

■ Illustrate the actual talent risks facing the business and specify tangible examples of benefits for leaders to drive urgency.

Did You Know?Lack of leader prioritization is the most commonly cited barrier to effective workforce planning.

Additional Resource:Customizable Business Case for Strategic Workforce Planning

Source: CEB, Workforce Planning Benchmarking Survey, 2013.

In addition to highlighting the workforce dynamics that necessitate longer-term planning, use talent data to reveal organization-specific talent risks to business strategy and performance.

Business leaders are under tremendous pressure to hit short-term targets and focus on immediate staffing needs. Illustrate how strategic workforce planning can mitigate those pressures and set leaders up for future success.

Strategic Workforce Planning Can Help You:

1. Make better talent decisions now. ■ Understand the long-term implications of short-term staffing decisions.

2. Obtain higher-quality staff for your business. ■ Identify talent needs well in advance to avoid last-minute “desperation” hires.

3. Retain your key employees. ■ Identify talent needs well in advance to avoid last-minute “desperation” hires.

4. Avoid future downsizing in response to surplus staff.

■ Identify surplus or soon-to-be-irrelevant skills early enough to address through strategies such as training, redistribution, etc., if possible.

Scarce Critical Skills

Limited Talent Mobility

Pending Retirements

Competitive Talent Markets

Emerging Critical Skills

Disengaged Key Talent Segments

Highlight Organization-Specific Talent Risks to Strategy

Common Talent Risks to Business Strategy

Describe Tangible Benefits for Business Leaders

Examples of Personal Benefits for Leaders

9


Customize the business case to demonstrate how engagement affects your organization’s unique business priorities.

■ Focus the business case on the top one or two business priorities and how engagement can help achieve those business priorities.

STEP 2: LINK ENGAGEMENT TO UNIQUE BUSINESS OUTCOMES YOUR ORGANIZATION CARES ABOUT

Common Business Priorities Employee Engagement Supports

We identified 11 common business priorities—distinct approaches organizations use to grow and/or differentiate from competitors. Customize your business case by communicating how engagement will support the organization’s top one or two priorities. See the next page for definitions of each business priority.

Low-Cost Leader

Quality Safety Solutions Strategy

M&A (Scale)

Innovation

Business Model Transformation

Continuous Improvement

Customer Centricity

Global Expansion

Brand Excellence

Considerations for Customizing the Employee Engagement Business Case

Consider these questions when creating a business case for employee engagement.

■ Which line leaders will we need support from to move forward with our strategy for driving engagement? How will engagement support them specifically?

■ How will engagement help the organization meet its objectives, in terms of solving challenges and taking advantage of opportunities?

■ What are some tangible examples of how disengagement is preventing the organization from achieving its objectives?

■ What objections and questions do we anticipate receiving from line stakeholders? How will we respond to each of these?

Learn more about the most common business priorities and how to identify your organization’s top priority with the HR Guide to Identifying Business Priorities.

Source: CEB analysis.

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101279775


12


STEP 3: IDENTIFY THE INSIGHTS YOU NEED FROM ENGAGEMENT DATA

Guidance for Prioritizing Insights from Engagement Data

Critical Talent Topics for Business LeadersSample Discussion Guide

A Note About Selecting Engagement Survey Providers

The ability to generate the insight you need is the most important criterion when selecting an engagement survey provider. See the appendix on page 34 for additional selection criteria.


Low-Cost Leader


Quality Safety

Customer Centricity

Solutions Strategy

Global Expansion

M&A (Scale)

Innovation

Brand Excellence

1. Business Priorities: What are the top one or two business priorities your organization is working to achieve? See page 10 for definitions of each priority.

2. Talent Priorities: What does your organization need to know about its workforce to achieve that business priority? Use the guidance below to understand current talent priorities, potential talent risks, and successes to leverage further.

Talent Attraction

Succession Risk

Business Strategy

Employee Performance

Business and Financial Performance

Talent Identification,

Engagement and Development

What are the talent risks of executing our business strategy?

How should we scale talent with business growth?

What are the highest-return interventions to boost employee performance?

How can we compete more effectively for top talent?

How can we accelerate the development of our HIPO staff?

How strong is our leadership bench?


Design an engagement measurement strategy that provides insights unique to your organization’s needs.

■ Identify the top one or two business priorities your organization is working to achieve.

■ Next, identify the key talent information needed to ensure the workforce can achieve the priority.

13


STEP 4: ALIGN ENGAGEMENT SURVEY QUESTIONS WITH KEY BUSINESS AND TALENT INSIGHT

Sample Survey Questions Informing Specific Business and Talent Needs

Learn more about our engagement survey offerings, including ClearAdvantage Check, the pulse survey included in your CEB Corporate Leadership CouncilTM

membership, or ClearAdvantage Survey, a fully customizable workforce engagement survey (additional fees apply).

Priority/Outcome Key Success Factors Relevant Survey Questions

Innovation

Risk tolerance ■ I am encouraged to take informed risks to get my job done. ■ My organization supports new ways of doing things. ■ It is acceptable to experience a failure.

Openness to new ideas

■ My organization is willing to consider new ideas regardless of where the idea comes from.

■ My organization encourages me to find new ways to solve problems.

Global Expansion

Cultural diversity ■ My organization demonstrates a commitment to diversity. ■ Employees of different backgrounds interact well in this company. ■ My company is committed to supporting the communities in which it operates.

Cross-silo collaboration

■ My group gets the cooperation it needs from other workgroups to achieve our goals.

■ I am encouraged to share ideas, resources, etc. with peers outside my immediate work group.

■ My organization provides resources to help employees in different time zones work together.

Customer Centricity

Day-to-day interactions with customers

■ I am encouraged to go above and beyond to meet customer needs. ■ I have readily available information and tools to answer customer questions.

Information about customers

■ I understand how to contribute to the satisfaction of our end customers. ■ Customer feedback is used to improve our products and services. ■ I have tools that make it easy for me to share and receive information about customers.


Map engagement survey questions to the key business and talent insight identified in step 3.

■ Mapping questions to specific insight ensures the survey will yield results that are meaningful to stakeholders and that will indicate actions leading to specific outcomes.

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http://www.executiveboard.com/exbd/workforce-surveys-analytics/solutions/employee-surveys/index.page

14


STEP 5: INCORPORATE EXISTING DATA SOURCES TO SUPPORT YOUR MEASUREMENT STRATEGY

Common Information Sources to Support Your Engagement Measurement Strategy

Tip: Incorporate information sources from current and departing employees for a well-rounded assessment that indicates not only why employees might leave but also why they actually do leave.

■ Noticeable change in employee behavior or performance

■ Employee comments about the organization, peers, or the job

Share our Guide to Identify Signs of Disengagement with managers.

■ Output per unit of inputs, such as: – Output per hour/FTE – Operating profit per FTE – Operative revenue per FTE

■ Employee comments about the organization, managers, peers, or the job based on: – Individual employee feedback

– Focus group results – Exit interviews

Access the Exit Interview Template to understand why employees are leaving.

■ Total days of employee absence as a percentage of total expected workdays during the reporting period

■ Top reasons employees leave ■ Departing employee net promoter score

■ Departing employee satisfaction with EVP attributes

■ Departing employees’ new job status

Learn more about Departure View, CEB’s exit survey service.

■ Terminations as a percentage of average head count (e.g., voluntary, involuntary, total)

Access our Turnover Benchmarking Database to compare your turnover with peers.

Engagement Survey Results

Manager Diagnosis

Exit Survey Data

HR Business Partner

Diagnosis

Absenteeism Rates

Productivity Rates

Turnover Rates


Assess engagement using talent data your organization already collects.

■ Various qualitative and quantitative sources of data—other than engagement surveys—can inform employee engagement.

– The information is particularly useful for providing timely data between engagement surveys or for learning more about specific workforce segments.

■ Organizations are increasingly exploring innovative data sources for understanding employee engagement and predicting turnover (e.g., tracking e-mail response rates and meeting invitation acceptance rates).

– The broad applicability and validity of these approaches remains to be determined.

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https://clc.executiveboard.com/Members/ExitSurvey.aspx

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Barreras Culturales Invisibles

“Son las percepciones que importan. Si un empleado percibe una injusticia, el o ella entonces reaccionará frente a ella a pesar de que la injusticia existe o no en la actualidad. VP de Planta, Caterpillar

Percepciones Reacciones Resultados

Fuente: Caterpillar, Análisis de CEB

Símbolos Comunicaciones no verbales que explican lo que es valorado Ritos o Rituales Ceremonias o eventos que destacan lo que es importante Historias o Mitos Historias que describen lo que la compañía representa, valora Valores Lo que le concierne mas a la organización Normas y Rutinas Los comportamientos e interacciones de empleados en el día en día Poder Los influenciadores de opinión (no necesariamente atado a posición) Estructura Relacionamientos, comunicaciones, y poder Roles y Responsabilidades Que se espera de las personas y su desempeno contra expectativas Suposiciones Las reglas no escritas que son aceptadas como hechos Sistemas y Reglas Los métodos que controlan, miden y premian los comportamientos deseados

Barreras Culturales Invisibles

Fuente: Caterpillar, Análisis de CEB

1. Ausentismo 2. Atrito 3. Alto nivel de quejas 4. Incapacidad de atraer los

mejores candidatos 5. Aumento de lesiones 6. Merma de inventarios 7. Pocas ideas innovadoras de

parte de los empleados 8. Bajos niveles de voluntarios 9. Baja productividad 10.Resistencia al cambio

Síntomas de una cultura descarrilada

16


STEP 6: IDENTIFY CRITICAL AREAS OF UNDERPERFORMANCE

Benchmark Internally and Externally to Identify Areas of UnderperformanceEngagement Benchmarks at Company A (Illustrative)

Track Trends in Engagement Data to Identify Substantial DeclinesIntent to Stay and Discretionary Effort at Company A (Illustrative)

Company A’s overall intent to stay is far below the global benchmark, and the HR function’s discretionary effort is far below Company A’s aggregate, indicating potential risks to the organization.

Sharp drops in intent to stay signal a critical risk the organization must address.

19.7% 19.7% 18.1% 18.0% 18.4%

37.0% 35.7%32.4% 33.3%

24.6%

0.0%

20.0%

40.0%



Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Discretionary Effort

Intent to Stay

Begin the analysis phase by reviewing survey results to identify areas of critical underperformance.

■ Even if areas of underperformance do not align with key talent or business outcomes, they signal risks that must be addressed.

■ Benchmark results internally and externally to identify specific areas in which your organization or segments of your workforce are underperforming substantially.

■ In addition, review trends over time to target substantial declines.

Global Benchmark

Company A: Aggregate

Company A: Finance

Company A: HR

Engagement 24.0% 22.0% 23.0% 21.8%

Intent to Stay 35.0% 24.6% 25.0% 24.9%

Discretionary Effort 16.0% 18.4% 18.0% 12.0%

18


STEP 7: IDENTIFY INTERNAL TALENT ALIGNMENT GAPS

Deutsche Bank’s Strategy Alignment Metrics

In addition to uncovering gaps in talent availability, identify potential risks stemming from lack of employee readiness for new strategic priorities.

■ Assess the readiness of the organization, from a human capital perspective, to execute against the strategic goals of the organization.

Additional Resource:Deutsche Bank’s Strategic Alignment Dashboard

Source: CEB, CEB Corporate Leadership Council, 2009.

Talent Alignment Organization Alignment

CommitmentDegree of connection to the organization as measured by intent to stay, engagement, and emotional attachment

Organization FramePerception of job content, operations, responsibility, and efficiency

Customer FocusDegree of customer centricity in the working environment

Strategic DirectionUnderstanding and perceived strength of organization’s strategy and its transformation into individual goals

Opportunity AlignmentPerception of individual development opportunities and support from managers

CulturePerception of the company as an organization and its employees

Knowledge TransferDegree of access to needed training and level of information availability

LeadershipPerception of leadership quality at the organization

Driver Score TargetGap Significance

Impact on Strategy Execution

Commitment 87 90 High High

Customer Focus

78 81 High High

Opportunity Alignment

88 90 Medium Medium

Knowledge Transfer

87 87 Low Medium

Gap AssessmentIllustrative

Step 1: Identify the attitudinal factors outside of specific capabilities critical for the successful execution of business strategy (e.g., commitment, customer focus).

Step 2: Use data from employee engagement surveys, focus groups, and other sources to assess gaps that might negatively impact employees’ readiness to execute against the organization’s long-term strategy.



29


STEP 13: REEVALUATE THE PLAN ON AN ONGOING BASIS

Sample Triggers That Could Signal the Need to Revise a Workforce Plan

Implement a trigger-based, rather than calendar-based, workforce plan review process to ensure plans adapt to changing business priorities and talent needs.

■ Trigger-based reviews might reveal a shift in business priorities and talent needs (e.g., delay in Chinese market entry) or a change in the type of solutions needed to close talent existing gaps (e.g., a significant change in external talent supply).

Source: CEB, Lost in Transition, 2010.

Environmental Legislative or regulatory change Customer Confidence Index™ Shift in customer behaviors

Strategic Merger/joint venture Senior leadership change New market entry

Financial Revenue Net Income EBITDA Earnings per share

Human Capital Employee turnover Average employee performance rating Promotion rate

Step 1: Identify specific triggers that would signal the need to review and possibly revise the workforce plan to ensure its ongoing alignment with strategic priorities and market realities.

Trigger Based Review Process

2013Annual Strategy Review

2014Annual Strategy Review

Entrance of a new competitor triggers a review

Significant increase in turnover of critical talent triggers a review

Sample Workforce Plan Review Agenda ■ 10 minutes: Frame context and key 1–3 issues. ■ 60 minutes: Discuss key capabilities or talent risks related to the trigger and possible root causes.

■ 20 minute: Outline any next steps based on root-cause conclusion.

Step 2: Monitor metrics associated with key triggers; when a trigger threshold is crossed (or a trigger event occurs), convene a meeting with relevant business leaders to discuss the implications and whether plan revisions are necessary.

Did You Know?Seventy-seven percent of organizations review their workforce plan once per year or less.

Additional Resources: ■ Trigger-Based Review Dashboard

■ Dupont’s Trigger-Based Assessment (See implementation guide on p. 11.)

Source: CEB, CEB Corporate Leadership Council, Workforce Planning Benchmarking Survey, 2013.

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17


STEP 7: PRIORITIZE RESULTS THAT INFORM BUSINESS AND TALENT PRIORITIES

Engagement Data Analysis Template

Use the template below to help your organization focus on the most important engagement survey results to analyze. Consider creating segmented versions for different groups (e.g., business units, functions, geographies) and distributing them to relevant leaders.

Business Priority: Innovation

Relevant Survey Questions

Relevant Survey Results

Relevant Existing Data

Objective 1: Source viable ideas for new products from across a broader swath of the organization.

■ My organization is willing to consider new ideas regardless of where the idea comes from.

■ My organization encourages me to find new ways to solve problems.

■ 32% agree or highly agree

■ 50% agree or highly agree

■ Exit survey data indicates that almost half of departing employees expect to work on more innovative projects in their new jobs.

Objective 2

Objective 3

Talent Priority: HIPO Retention

Relevant Survey Questions

Relevant Survey Results

Relevant Existing Data

Objective 1

Populate this column with the business and talent priorities identified in step 3.

Input the relevant results of the engagement survey in this column.

Populate this section with the relevant survey questions you identified in step 4 to indicate which survey items are best able to inform the likelihood of achieving business and talent priorities.

Input any relevant existing data, such as exit survey data or productivity data, that you identified in step 5.


Next, review results that inform your organization’s specific business and talent priorities.

■ Isolate the survey questions and results that inform your organization’s key business and talent priorities.

■ In addition, use existing data that informs the organization’s ability to achieve those business and talent priorities.

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STEP 8: IDENTIFY THE ROOT CAUSES OF FAVORABLE AND UNFAVORABLE RESULTS

Sample Root-Cause Analysis Tree

Conducting a Root-Cause Analysis of Engagement Survey Results

Root-cause analysis is a method for distinguishing between superficial symptoms and the true underlying causes of a problem or success. Create a root-cause analysis tree to better understand the most important positive and negative results of your engagement survey and guide the creation of your engagement action plans using these steps:

1. Clarify the Problem or Success Statement—Ensure the statement is not too broad or narrow and does not contain a solution or any assumptions. For example, “Career-pathing scores for employees in the IT function increased by 9 percentage points.”

2. Ask “Why?”—Consider broad, top-level causes of the problem or success by asking why it occurred. For example, “Why did career-pathing scores increase so much for IT function employees?”

3. Ask “Why?” Again—For each first-level cause, ask why it exists and indicate the causes.

4. Repeat the Process—Continue this process until you reach a level sufficient for explaining the problem or success. Asking “Why?” five times is usually sufficient.

Problem/Success Statement:Career-pathing scores for IT function employees increased by 9 percentage points.


Why?Why?

The organization updated career paths for all employees in technical roles.

Technical employees expressed confusion about the skills and experiences they needed to get ahead in their careers.

A greater number of IT function employees were promoted this year than in the past.

We increased the size of our IT function, creating more management roles to fill.

Why?Why? Why?Why?

For additional resources on root-cause analysis, download our Root-Cause Analysis Resource Guide and see how Lenovo does it.

Analyze the root causes of the most important favorable and unfavorable survey results to understand why the results occurred.

■ Involve diverse stakeholders to identify an unbiased set of causes (e.g., business leaders, managers, HR business partners, engaged and disengaged employees).

■ Use the root-cause analysis results as the foundation of your engagement action planning.




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STEP 9: PRIORITIZE CRITICAL AND DISENGAGED TALENT SEGMENTS

Criteria for Identifying Critical and Disengaged Talent

Identify your organization’s most common workforce segments. Next, review each segment against the 10 criteria below, indicating “Yes” or “No” for each. Use these criteria to plot the criticality of each segment in the grid at right, and use engagement survey scores to plot the engagement of each segment.

1. Engagement Level: The engagement score for this segment is less than most other segments.

2. Profitability: The revenue generated by this segment is greater than the revenue generated by most other segments.

3. Cost of Turnover: The average cost of turnover for an employee within this segment is greater than most other segments.

4. Customer Interaction: Employees in this segment more frequently interact with external stakeholders (e.g., customers, investors, competitors).

5. New Product/Strategy Development: Employees in this segment develop strategy or design new products/services.

6. Span of Control: Employees in this segment have greater spans of control than other segments.

7. Size of Segment: There are more employees in this segment than in most other segments.

8. Business Change: This segment has recently been through an M&A, reorganization, layoffs, or other significant change.

9. High Potential: The number of employees in this segment designated as HIPO employees is greater than most other segments.

10. Core Contributors: The number of employees in this segment formally designated as core contributors is greater than most other segments.

Cri

tica

lity

High

Medium

Low

Low Medium High

Engagement

High = 7 or More Yes Responses

Medium = 4–6 Yes Responses

Low = 3 or Fewer Yes Responses

Key for Determining Level of Criticality

Access our Excel-based Employee Segment Prioritization Tool to identify critical and disengaged talent using the same criteria found on this page.


Prioritize critical and disengaged talent to mitigate engagement and performance risks associated with these populations.

■ Make sure the needs of these populations are addressed in your action plans first—before developing engagement strategies for the rest of the workforce.



23


CREATE ADVANTAGE

SUSTAIN ADVANTAG

E

BUSINESS PRIORITIES

ALIGNMENT

ENGA

GEME

NT

AG ILITY

STEP 12: INCORPORATE STRATEGIES FOR VERTICALLY ALIGNING EMPLOYEES

Bottom-Up Goal-Setting Process

Incorporate strategies for driving vertical alignment into your engagement action plans.

■ For example, Rich Products Corporation (Rich’s) uses a bottom-up goal-setting process.

■ Rich’s communicates directly to employees’ enterprise-level goals, relevant geographic-specific goals, and relevant business unit–specific goals by populating the form on this page.

■ Employees use that information to create their own goals, linking from the bottom up and thereby eliminating complex goal cascades that invite misalignment.

Learn more about how Rich’s uses its one-page organizational priorities sheet to enable employee Bottom-Up Goal Linkages.

Drive organizational goal understanding and incorporation by ensuring the following:

Easy Reference—Provide an easy-to- understand reference sheet to each associate for individual goal setting.

Clear Organization and Distinction—Clearly identify and organize objectives as enterprise-wide, regional, or divisional, ensuring that associates are able to easily see objectives relevant to them.

Clear and Crisp Articulation—Articulate all priorities as action statements, easing associate understanding and incorporation of objectives.

Simplified Communication—Cut out the middleman and directly address associates to ensure transparency and understanding at all levels.

2014 Priorities2014 Enterprise Priorities

Priority 1 1. …………………………………………………

2. …………………………………………………

Priority 2 1. …………………………………………………

2. …………………………………………………

Priority 3 1. …………………………………………………

2. …………………………………………………

Priority 4 1. …………………………………………………

2. …………………………………………………

2014 US Canada Priorities 2014 Business Unit/ Functional Priorities

Enterprise Priority 1 at Regional Level

1. …………………………………………………

2. …………………………………………………

3. …………………………………………………

Enterprise Priority 2 at Regional Level

1. …………………………………………………

2. …………………………………………………

Source: Rich Products Corporation; CEB analysis.

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101257992&fs=1&q=rich's&program=&ds=1

https://clc.executiveboard.com/Members/ResearchAndTools/Abstract.aspx?cid=101257992&fs=1&q=rich's&program=&ds=1

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STEP 14: COMMUNICATE RESULTS AND ACTION PLANS TO THE WORKFORCE BY TELLING A STORY

Process for Communicating Engagement Results to the Workforce

Communicate engagement results and action plans in a way that’s meaningful to the workforce by telling a story.

■ Don’t simply list survey results; detail the effect of those results on specific business and talent outcomes (i.e., why the results matter).

■ Using the information generated from the analysis phase on this playbook, communicate only key arguments and draw explicit conclusions so the audience understands what the organization needs to do.

■ Lastly, communicate next steps as identified in steps 9–13.

Access our brief on Telling Stories with Metrics for detailed guidance implementing each step on this page.

■ Draw explicit, succinct conclusions to ensure the audience understands key points. Example: To improve new hire retention, we must help them understand their connection to the organization and their business unit or function from the first day of their employment.

■ Communicate next steps to increase the likelihood that follow-up actions occur. Example: We need to help managers of new hires quickly communicate their importance to the organization and business unit or function during onboarding. We will convene a working group of recruiters, new hires, and managers of new hires to identify specific actions managers can take to achieve this.

■ Establish common ground so a diverse audience comes to the same conclusions and is on the same page. Example: Intent to stay for new hires decreased by 7% in the past year.

■ Size the opportunity by communicating the potential impact of an action or strategy. Example: Improving intent to stay for new hires by 7% will generate recruiting cost savings of X and allow us to more quickly get new hires up to speed.

■ Communicate the logic chain to highlight the trends and patterns that clarify your point or argument. Example: New hires indicating the lowest intent to stay are also least satisfied with their onboarding experience.

■ Focus on the central argument to keep the audience’s attention, eliminating additional “nice to know” information. Example: In particular, new hires express confusion about how their jobs support the organization and their business unit or function.

Set the Scene

Develop the Plot

Conclude the Argument




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STEP 3: IDENTIFY THE INSIGHTS YOU NEED FROM ENGAGEMENT DATA

Guidance for Prioritizing Insights from Engagement Data

Critical Talent Topics for Business LeadersSample Discussion Guide

A Note About Selecting Engagement Survey Providers

The ability to generate the insight you need is the most important criterion when selecting an engagement survey provider. See the appendix on page 34 for additional selection criteria.


Low-Cost Leader


Quality Safety

Customer Centricity

Solutions Strategy

Global Expansion

M&A (Scale)

Innovation

Brand Excellence

1. Business Priorities: What are the top one or two business priorities your organization is working to achieve? See page 10 for definitions of each priority.

2. Talent Priorities: What does your organization need to know about its workforce to achieve that business priority? Use the guidance below to understand current talent priorities, potential talent risks, and successes to leverage further.

Talent Attraction

Succession Risk

Business Strategy

Employee Performance

Business and Financial Performance

Talent Identification,

Engagement and Development

What are the talent risks of executing our business strategy?

How should we scale talent with business growth?

What are the highest-return interventions to boost employee performance?

How can we compete more effectively for top talent?

How can we accelerate the development of our HIPO staff?

How strong is our leadership bench?


Design an engagement measurement strategy that provides insights unique to your organization’s needs.

■ Identify the top one or two business priorities your organization is working to achieve.

■ Next, identify the key talent information needed to ensure the workforce can achieve the priority.

Documents

Engagement Strategy Playbook - CEMLA apply to positions outside of the organization. Note: Individual employee behaviors were correlated with measures of employees’ perception of