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THE GALLUP organization 2001 The Gallup organization

Building the

Strength-Based Organization

February, 2003


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Customer Engagement Items:

I can't imagine a world without X company.

X company provides the perfect service for people like me.

X company always delivers on what they promise. X company provides a service I can always trust.

If a problem arises, I can always count on X company to reach afair and satisfactory resolution.

X company always treats me fairly.

X company always treats me with respect.

I feel proud to be a customer of X company.


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Airline customer engagement(Before Sept. 11)

0%

10%

20%

30%

40%

50%

60%

70%

Southwest Delta US Airways American Northwest United

Actively disengaged

Not engaged

Engaged

Fully engaged

-21% -69% -98% -79% -65% -95%


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THE GALLUP organization

2001 The Gallup organization

Mass retail customer engagement

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Amazon Best Buy Target Wal-Mart Circuit City

Actively disengaged

Not engaged

Engaged

Fully engaged

+122% -37% -13% +4% -55%


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Customer Engagement Hierarchy

Cant imagine a world without

Perfect company for people like me

Treats me with respect

Feel proud to be a customer

Fair resolution of any problems

Always treats me fairly

Always delivers on promise

Name I can always trust

Passion

Pride

Integrity

Confidence

Process

People


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The Q12TM

Items

I know what is expected of me at work.

I have the materials and equipment I need to do my work right.

At work, I have the opportunity to do what I do best every day.

In the last seven days, I have received recognition or praise for doing good work.

My supervisor, or someone at work, seems to care about me as a person.

There is someone at work who encourages my development.

At work, my opinions seem to count.

The mission/purpose of my company makes me feel my job is important.

My associates (fellow employees) are committed to doing quality work. I have a best friend at work.

In the last six months, someone at work has talked to me about my progress.

This last year, I have had opportunities at work to learn and grow.


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Q12TM

Meta-Analysis: 2000

36 companies from 21 industries

7939 business units

198,514 employees 5 business outcomes

Turnover/retention

Customer

Safety

Productivity

Profitability


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Q12TM

Meta-Analysis: 2000

Business Units in the Top Quartile (compared to Bottom

Quartile) according to their Grand Mean score are:

50% more likely to be above the median in Retention 56% more likely to be above the median in Customer Loyalty

50% more likely to be above the median in Safety outcomes

38% more likely to be above the median Productivity

27% more likely to be above the median Profitability

70% more likely to be above the median in Total Performance


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1997-2001

We have posed the Q12TM

items to 3 million

employees in 350 companies.

We have also posed the Q12TM

items to

nationally representative samples of the

working population in the U.S., UK,

Germany and Japan.


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Q12TM

Finding #1:

Over 70% of U.S. employees are not engaged

at work.


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A comparison of employee engagement across countries.

(Source: Random samples of the working populations over 18 yrs of age.)

16 20 15 19

55

63 6972

2917 16

9

0%

20%

40%

60%

80%

100%

Engaged

Not Engaged

Actively Disengaged

US UK Germany Japan


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Q12TM

Finding #2:

All organizations cultures are surprisingly

inconsistent.


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2.6

2.8

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

5

2.6 2.8 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 5

2000 Workgroup GrandMean

2001Workgroup

GrandMean

Decline

Advance

A Comparison of All Workgroups within one

company: 2000 - 2001


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Q12TM

Finding #3:

The longer employees stay with an

organization the less engaged they become.


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The longer employees stay the less engaged they become.

(Source: Gallup dB, 700,000 employees from the last two years.)

1218 22

23

50

5556 57

3827

22 20

0%

20%

40%

60%

80%

100%

Engaged

Not Engaged

Actively Disengaged

Less than

6 mos6 mos-

3 yrs

3 yrs-

10 yrs

More than

10 yrs


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What is the best way to increase one

persons performance?


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This is how the worlds best managers answer:

Focus on each employees strengths,manage around his/her weaknesses


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Maintain each employees strengths,

work on fixing his/her weaknesses.

Most organizations are built around

exactly the opposite answer:

T h id d hi i G ll k d hi i


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To test how widespread this answer is, Gallup asked this question

around the world: Which do you think will help you improve

the most? Knowing your Strengths or Knowing your weaknesses?

41% 38% 38%29%

24% 24%

0%

20%

40%

60%

80%

100%

U.S. UK Canada France Japan China

Percent knowing your Strengths


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Develop the performanceby rating the person

Define the required competencies

Rate the person on these

competencies Identify which competencies the

person lacks

Encourage/train the person to

improve in these areas

Rate the person next year

Select/Promote people who do

better on the required

competencies

In most organizations the

Weakness-Prevention method looks like this:


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The Weakness-Prevention method is founded on

three assumptions:

All these behaviors can be learned.

The best in a role all display the same behaviors.

All these behaviors should be learned, because weakness-

fixing leads to success.


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The Weakness-Prevention method is founded on

three assumptions:

All behaviors can be learned.

The best in a role all display the same behaviors.

All these behaviors should be learned, because weakness-

fixing leads to success.

Some behaviors can be learned. Many prove very hard to learn.(Talent vs. Skills & Knowledge)

The assumptions of

the worlds best managers

The best in a role all create the same outcomes, using different

behaviors.

Weakness-fixing prevents failure. Strengths-building leads to

success.


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Rate the performance,develop the person

Develop the performanceby rating the person

Define the required

competencies

Rate the person on thesecompetencies

Identify which competencies

the person lacks

Encourage/train the person to

improve in these areas

Rate the person next year

Select/Promote people who do

better on the required

competencies

Define the required performance

outcomes

Rate the person on theseperformance outcomes

Identify the persons talents and

non-talents

Help the person strengthen his

talents and manage his weaknesses

Rate the outcomes next year

Select/Promote people who possess

the talents necessary for the role

The Strengths-based organization will look

like this:

F Di i li


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Discipline 1:

Hold all employees

accountable for their local

performance metrics.

Discipline 2:

Teach all employees to

identify, deploy and

develop their strengths,

and the strengths of their

DRs.

Four Disciplinesto build a Strengths-Based Organization

Discipline 3:

Align all performance

management systems

around identifying,

deploying and developing

strengths

2001 The Gallup Organization

Discipline 4:

Design and build each

role to create world class

performers in the role.

F Di i li


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Performance measurement

Performance appraisal

Employee development

Succession planning

Identify the talents common to the

best.

Build a ladder that leads from good,

to great to world-class. Incentemployees to climb these rungs.

Capture the best in the role

describing what they do differently.

Instill a common language to

distinguish the teachables from

the unteachables.

Reveal each persons strongestand weakest talents

Teach each employee how to

strengthen these talents, and the

talents of their DRs.

Discipline 1:

Hold all employees accountable

for their local performance

metrics

Business results

Employee Engagement

Customer engagement

Discipline 2:

Teach all employees how to

identify, deploy and develop their

strengths.

Discipline 4:

Design and build each role to

create world-class performers in

the role.

Discipline 3:

Align all performance

management systems around

strengths

Four Disciplinesto build a strengths-based organization


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2618 6

51

49

23

2333

71

0%

20%

40%

60%

80%

100%

1999 2000 2001

A 250 bed hospital (n=700)

- Top 10% (out of over 200 hospitals) in productivity.

- Increased their physician sat. scores by 30 percentile points.

- #1 in their division in patient satisfaction scores.


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A comparison of the impact of

Strengths and Competencies over a 4 year period.

0

20

40

60

80

100

1998 1999 2000 2001

Strengths:3 hospitals Competencies:5 hospitals

Percentile

in Q12 dB


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Building the

Strength-Based Organization

February, 2003

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