Host Presentation How HR Led A Cultural Revolution Bob Kelleher, April 20, 2018

Transcription

1 Host Presentation How HR Led A Cultural Revolution Bob Kelleher, April 20,

2 Host Presentation How HR Led A Cultural Revolution Bob Kelleher

3 Well, its been a Long Journey 3

4 So lets begin Bob Kelleher Former CHRO for AECOM Global Responsibilities for Human Resources Learning and Development Employee Engagement Performance Management Internal Communications Organizational Development Previously, Executive Vice President and COO for ENSR Organizational Development Internal Communications Human Resources Chief Human Capital Officer Learning And Development Employee Engagement Performance Management

5 Overview - ENSR and AECOM Corporate snapshot - ENSR Case Study - Lessons learned - Transitioning into AECOM 5

6 ENSR Corporate Snapshot Headquartered in Westford, MA Gross Sales - $400M 87% Private Sector Acquired by AECOM in th Largest Environmental Firm 3,000 Staff in 80 global locations 6

7 AECOM Overview (at the time) Global leader in Professional, Technical, and Management Support Services Key markets: Facilities, Transportation, Water, Environmental 500 Global Offices in over 100 countries 50,000 employees $6 billion of revenue 7

8 Top 200 International Design Firms Building 1 Transportation 1 Asia 1 AECOM is a leading global provider of professional technical and management support services Markets Top 500 Design Firms Rank Pure Design 1 Transportation 1 Mass Transit/Rail 1 Airports 1 General Building 1 Education 1 Government Offices 1 Transmission and Distribution 1 Program Management 2 Correctional Facilities 2 Marine and Port Facilities 2 Hotels & Convention Centers 2 Highways 3 Bridges 3 Sanitary and Storm Sewers 3 Site Assessment and Compliance ENR Rankings

9 Geographically Diverse Employee Base 3,000 20,000 7,000 Americas U.K./Europe Asia-Pacific Middle East Canada Mexico Latin America United States England France Greece Ireland Italy Poland Scotland 11,000 Australia China Hong Kong Malaysia New Zealand Singapore 400+ Offices in More Than 100 Countries Afghanistan Egypt Iraq Kuwait Libya Qatar Saudi Arabia United Arab Emirates

10 History of Employee Engagement at ENSR and AECOM 10

11 ENSR s Business Strategy Engagement was the Foundation

12 Employee Engagement Timeline ( ) Turnover reached 22% Rhetoric vs. Reality Client Feedback: turnover is a problem Need to have SMT and BOD alignment Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Employer of Choice becomes strategic Initiative - Message goes on the road - New Mission Statement

13 ENSR s Mission 13

14 Employee Engagement Timeline ( ) Turnover reached 22% Rhetoric vs. Reality Client Feedback: turnover is a problem Need to have SMT and BOD alignment Supervisors weren t embracing message Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Leadership Workshops Employer of Choice becomes strategic Initiative - Message goes on the road - New Mission Statement

15 Leadership Workshops Communication Staff Development Recognition and Motivation Balance Aligned with new mission statement 15

16 Employee Engagement Timeline ( ) Turnover reached 22% Rhetoric vs. Reality Employee Satisfaction Survey Results: - Training Needs Client Feedback: turnover is a problem Need to have SMT and BOD alignment Supervisors weren t embracing message Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Leadership Workshops Employer of Choice becomes strategic Initiative -Message goes on the road - New Mission Statement - Training becomes an Investment (not a Cost)

17 Created a Learning Culture 17

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19 Employee Engagement Timeline ( ) Turnover reached 22% Rhetoric vs. Reality Employee Satisfaction Survey Results - Training Needs Client Feedback: turnover is a problem Need to have SMT and BOD alignment Supervisors weren t embracing message Survey Results Performance Reviews Not Working Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Leadership Workshops - Employee Development Plans (with 360 s) Employer of Choice becomes strategic Initiative -Message goes on the road - New Mission Statement - Training becomes an Investment (not a cost)

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21 Employee Engagement Timeline ( ) Client Feedback: turnover is a problem Turnover reached 22% Need to have SMT and BOD alignment Rhetoric vs. Reality Supervisors weren t embracing message Employee Satisfaction Survey Results - Training Needs - Survey Results: Marginal performance Accepted Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Leadership Workshops Launched LEAP1 Employer of Choice becomes strategic Initiative -Message goes on the road - New Mission Statement -Training becomes an Investment (not a cost)

22 LEAP 1 High Performance Resource Matrix High Performance Performer X% 2X% Investment 0% Transition Potential X% Low Low Potential High 22

23 Employee Engagement Timeline ( ) Turnover reached 22% Rhetoric vs. Reality Employee Satisfaction Survey Results - Training Needs Survey Results: Not enough Recognition Clients Feedback turnover is a problem Need to have SMT and BOD alignment Supervisors weren t embracing message Survey Results Performance Reviews Not Working Employee Retention gets the attention of Senior Management Mgt LBO with Wingate Leadership Workshops - Employee Develop ment Plans (EDPs) created - Launched LEAP1 Employer of Choice becomes strategic Initiative -Message goes on the road - New Mission Statement -Training becomes an investment (not a cost) Recognition Budgets and Celebratory Culture

24 Recognize and Celebrate Successes!!! 24

25 And Our Results of First 4 Years of Focused Employee Engagement Efforts Voluntary turnover reduced to industry-leading 9% First-ever 100% retention of our top 15 clients Record profitability Recipient of Environmental Business Journal s Gold Medal Award for Management and Transition Boston Business Journal Award for One of Boston s Best Private Employers Short-listed for Fortune Magazine s 100 Best Companies to Work For 25

26 The Setback (2002) Significant business downturn started to occur in January 2002, caused by the following factors: 9 /11 ENRON (and our reliance on the Energy sector) Overall economy Regulatory climate softened Company wide Reduction in Force of 10% Significant momentum lost in Employer of Choice initiative 26

27 Employee Engagement Timeline ( ) Employer of Choice Stalled Shifted focus to Employee Engagement

28 Shift the message Unlocking Employee Potential to Drive High Performance Company Performance Employee Engagement Employee Potential needed alignment between Company and Employees We Must Win Together 28

29 Employee Engagement Timeline ( ) Employer of Choice Stalled Inconsistent Messages Shifted focus to Employee Engagement Created Communication Protocol

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31 Employee Engagement Timeline ( ) Inconsistent Messages Employer of Choice Stalled Culture of OK Performance Shifted focus to Employee Engagement - Developed LEAP2 Created Communication Protocol

32 LEAP 2 Profit and Growth Matrix Dec FY % ENSR International North America Operations Pittsburgh Chicago Operating Profit 2Q04 as a % of Net Sales 25.0% 15.0% 9.4% 5.0% -5.0% -15.0% -25.0% -35.0% -1.7% -45.0% -55.0% -70.0% -50.0% -30.0% -10.0% 10.0% 30.0% 50.0% Growth from 2Q03 to 2Q04 32 N. CA Santa Ana Water & Nat'l Res. Milwaukee Camarillo Minneapolis Anchorage Ft. Collins Seattle Energy Cincinnati Texas CSC Petroleum Services Mid Atlantic Southeast ISC Tox-Ft. Collins NY CSC

33 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Employer of Choice Stalled Culture of OK Performance Shifted focus to Employee Engagement - Developed LEAP2 Revitalized Communication Program Created Balanced Scorecard

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36 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Employer of Choice Stalled Culture of OK Performance Inconsistent Rewards and Recognition Shifted focus to Employee Engagement - Developed Vision 07 - LEAP2 Enhancements To Incentive Programs Revitalized Communication Program Created Balanced Scorecard

37 Enhanced Rewards Incentives based on Balanced approach (not just Profit) Bonuses given throughout the year

38 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Difficulty Hiring Employer of Choice Stalled Culture of OK Performance Inconsistent Rewards and Recognition Shifted focus to Employee Engagement - Developed Vision 07 - LEAP2 Enhancements To Incentive Programs Revitalized Communication Program Created Balanced Scorecard Employer Branding

39 Revitalized Employee Referral Program Give Your Friends the World Bring Them to Ours Eventually, 50% of All New were via Employee Referrals

40 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Are We Hiring Engaged Employees Employer of Choice Stalled Culture of OK Performance Inconsistent Rewards and Recognition Shifted focus to Employee Engagement - Developed Vision 07 - LEAP2 Enhancements To Incentive Programs Revitalized Communication Program Created Balanced Scorecard Created LEAP 3

41 LEAP 3 - Attributes Matrix Performance (Education and Skills) High Low Performers Solid problem solving skills Do what is expected High level of competence in core skill areas Cause no problems In Comfort zone not willing to go beyond Transition Does not deliver expected results Self-limiting Major deficiency that s difficult to overcome Client and quality issues Poor technical match for market Innovative and creative Investment Impact growth of company Inspire others Active pursuit to achieve goals and values Function above and beyond norm Give more than you ask Go-to person, most trusted to pull through Potentials Some skills- still developing Not yet producing, but projects great confidence In spite of production limitations, still inspires others Looking to take on more Low Potential (Behavior and Traits) High It is Attitude, not Aptitude, that equals 41Altitude

42 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Are We Hiring Engaged Employees Employer of Choice Stalled Culture of OK Performance Inconsistent Rewards and Recognition Achieved Record Profits / Growth Shifted focus to Employee Engagement - Developed Vision 07 - LEAP2 Enhancements To Incentive Programs Acquired by AECOM Revitalized Communication Program Created Balanced Scorecard - Employer Branding

43 Employee Engagement Timeline ( ) Inconsistent Messages Employees were not aware of Business Challenges- Misalignment Are We Hiring Engaged Employees AECOM Intrigued by Employee Engagement Employer of Choice Stalled Culture of OK Performance Inconsistent Rewards and Recognition Achieved Record Profits / Growth Shifted focus to Employee Engagement - Developed Vision 07 - LEAP2 Enhancements To Incentive Programs Acquired by AECOM Revitalized Communication Program Created Balanced Scorecard - Employer Branding ENSR asked to lead Employee Engagement for AECOM

44 Employee Engagement Timeline ( ) Employer of Choice Stalled Inconsistent Messages Culture of OK Performance Employees were not aware of Business Challenges- Misalignment Inconsistent Rewards and Recognition Are We Hiring Engaged Employees AECOM Intrigued by Employee Engagement Achieved Record Profits / Growth How do we get 47,000 employees engaged? Shifted focus to Employee Engagement Revitalized Communication Program - Developed Vision 07 - LEAP2 Created Balanced Scorecard Enhancements To Incentive Programs - Employer Branding Acquired by AECOM Leading an Engaged Workforce Training ENSR asked to lead Employee Engagement for AECOM

45 Leading an Engaged Workforce A Workshop on Leadership Best Practices

46 Results of Revitalized Employee Engagement Efforts In 2005, voluntary turnover reduced again to industry-leading 7% Voluntary Turnover FY95 - FY07 Best 36 month operations performance in Company history Employee engagement became a market differentiator HBS case study The HR guy became the COO Attractive to AECOM as Merger Partner AECOM asks ENSR to lead Company wide engagement efforts FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 07 Ultimately I became the CHRO of AECOM

47 The AECOM Story Life is NOT a Disney Story 47

48 Lessons Learned: Engagement must survive the good times AND the bad times You need alignment with BOD, SR Mgt, HR, and Employees Reward and Recognize the right behaviors Be consistent with your core values You can do 100 things well for your employees, but the first take away often means starting over First line supervisor is the most important link to create employee engagement Invest in and develop your employees or your competition will If you include employees in the process, they take ownership Communicate, communicate, and communicate 48

49 Lessons Learned: - There needs to be mutual commitment and alignment with Employer and Employee When Employer gives: Vision Trust Respect Opportunity Empowerment Recognition Empathy Employee gives back: Alignment Trust Commitment Accomplishments Responsibility Repetitive behavior Above and beyond effort And remember - there is no destination! it is an endless journey! 49

50 Thank you