Stop Worrying About Culture & Start Winning With Culture

Transcription

1 Stop Worrying About Culture & Start Winning With Culture

2 INTRODUCTION Today s Presenters Jana Brown VP, HR Strategy, Planning and Analytics, Chief of Staff TIAA Kristin Aileen Brand Director Engagement VACO

3 Join the Conversation Send a text to Type ASHHRA in the text field

4 INTRODUCTION Some Background on TIAA TIAA s mission, unchanged since 1918, is to serve those who serve others The unique combination of our innate desire to serve and relentless drive to perform enables us to impact the lives of millions We help those at academic, medical, research and cultural organizations the people whose work makes the world a better place retire with financial security Our investment model and long-term approach aim to benefit the 5 million people and more than 16,000 institutions we serve

5 INTRODUCTION TIAA by the Numbers 153 Offices Founded in ,700 employees 1 More than 800 financial advisors Our customers $ $ $ $ $431B $854B In benefits paid since countries 8 $ $ 5M individuals $ $ More than 16,000 institutions 2 #1 in assets among all financial firms serving the not-for-profit and K-12 retirement markets 3 Paid $4.8 billions to retired clients in 2015, including 30,000 annuitants over the age of 90 Largest manager of qualified plan stable value assets with $155.8 billion in stable value accumulation values 4 In assets under management with holdings in more than 50

6 Introduction Now, About Vaco WE ARE A PRIVATELY-HELD, GLOBAL PROFESSIONAL SERVICES FIRM WITH A BIG FOUR HERITAGE. Founded in Offices ~2800 Consultants $300MM in Revenue 10 Years INC 5000 Fastest growing 11 Core Values Primary Goals Vision Build a team of the best professionals in the business Create a culture where we all enjoy working together & trust each other to do the right thing for each other, our clients, candidates & consultants Provide a mechanism where all employees & partners will have the opportunity to exceed their goals Vision Vaco s culture drives our business strategy. It is how we are successful individually & collectively & is the foundation for everything we do. If we create & maintain a positive, caring, & competitive culture, & compensate appropriately, we have the opportunity to become the greatest company in this industry. VACORESOURCES VACOFINANCIAL VACOTECHNOLOGY VACOHEALTHCARE VACOSTAFFING

7 Mission/Vision Today we d like to take you on a journey Guiding Path Strategy Activities Goals Objectives Vital Workforce Culture/Values Diversity/Inclusion Engagement Driving Path Adapted from Torben Rick : Is culture more important than strategy?

8 What brings you here today? 1 2 What are your biggest challenges with establishing a winning culture? What would you like to get out of this presentation?

9

10 Mission/Vision First Stop on the Journey: CULTURE & VALUES Guiding Path Strategy Activities Goals Objectives Vital Workforce Culture/Values Diversity/Inclusion Engagement Driving Path Adapted from Torben Rick : Is culture more important than strategy?

11 So what is culture anyway? An Organization's Culture Vision Values Norms Systems Language Assumptions Symbols Beliefs Habits A winning culture is defined by A unique personality and soul based on shared values and heritage can t be replicated by competitors Norms and behaviors that translate this unique personality and soul into customer-focused actions and bottom-line results OR put in simpler terms. The way things are done around here Source: Harvard Management Update, Bain Worldwide

12 What impacts culture? Purpose / Mission Core Values Recognition Strategy Training Recruiting (based upon core values) Technology Measurements (to reinforce culture)

13 Purpose driven culture Outlaws Welcome Fix the Problem, Not the Blame Stay Coachable Assume Positive Intent Be Comfortable with Healthy Conflict Be Electable Be Proud to Wear the Jersey Play Til the Whistle Work Hard, Stay Free Stay Team Focused Be Entrepreneurial

14 Recognition impacts culture! 25% of employees say their top motivator for changing jobs is the desire for a different work culture 1 Companies that scored in the top 20% for building a recognition-rich culture actually had 31% lower voluntary turnover rates 2 Source: 1) Bersin by Dellloite 2) Right Management, 2015

15

16 We re on a journey to align our culture with our business strategy and what our customers are demanding Principle Driven Client Focus Integrity A Different Kind of Financial Services Company Accountability Proactive Easier to Do Business With Adaptive ASPECTS TO PRESERVE TRAITS TO INTRODUCE OR STRENGTHEN Diversity Mission Driven Integrated Collaborative Continuous Improvement Innovative Fast-Moving Results Oriented Inclusive

17 Company values are the foundation of our culture Put the customer first Value our people Deliver excellence Operate as one team Act with integrity Take personal accountability In 2014, we refreshed our company values, which represent who we are and how we operate February 2013 August Leader retreats to define the values Formed Culture Steering Committee Leading company bench marking Employee focus groups to road test Finalized the values Adopt/ Embed Reinforce/ Sustain

18 Becoming a values-based organization: Our Approach FROM THE TOP Equip leaders and managers to drive the culture and live the values HEARTS & MINDS Embed the values in our management and people practices AT EVERY TURN Engage employees; inspire and sustain a movement

19 Mission/Vision DIVERSITY & INCLUSION Guiding Path Strategy Goals Activities Objectives Vital Workforce Culture/Values Diversity/Inclusion Engagement Driving Path Adapted from Torben Rick : Is culture more important than strategy?

20

21 Fundamental shifts in the landscape demand a response Customers and workers looks different 92% of the US population growth over the last decade were racial and ethnic minorities 46% of US workers will be Millennials by 2020 and plan to stay in their jobs for less than 3 years 66% of the working age population by 2020 will come from groups currently defined as minorities 157% More likely to understand the consumer when one team member matches the target demographic 3X Companies with inclusive cultures are more likely to be high performing Diverse teams outperform non-diverse teams in terms of quantity, creativity, and quality of results, if managed well. The buying power of diverse consumers is increasing; companies that are unable to attract and retain a diverse workforce risk being unable to relate to critical consumer groups 66% of women identify themselves as primary financial decision makers $4T People of Color buying power in the U.S. by 2017 Source: Age invaders Economist 2014; Global Human Capital Trends 2014 by Deloitte; Deloitte/Saba webinar participants, 2/17/2014; PwC Annual CEO survey; World population of 7.28B by 2015 UN Data; emarketer; Future work skills 2020; Institute for the Future for the University of Phoenix Research Institute; McKinsey; Cneter for Talent Innovation; Projections Through 2050, Bureau of Labor Statistics, May 23, 2007

22

23 Diversity goes deeper than you may think Visible Diversity Traits Invisible Diversity Traits Skin color Physical Traits Gender Behaviors Age Body Size/Type Physical Abilities Religion Socio-economic Status Sexual Orientation Military Experience Level in Organization Ethnicity Geographic Location Culture Beliefs Personality Values Thinking Styles Marital Status Functional Specialty Habits Parental Status Work Background Communication Style Native born/non native Education Graphic source: Society for Human Resource Management

24 Five generations in the workforce! Traditionalists Baby Boomers Gen X Gen Y Gen Z Forbes Magazine, Working With Five Generations In The Workplace Feb 2015

25

26 Inclusion defined INCLUSION Actions that create a culture and work environment where people feel heard, valued, treated fairly and equitably, and respected for who they are, with equal access to opportunities and resources and with respect for the value their background and insight can bring to the workplace.

27 Inclusion = Business Results Bersin/Deloitte Organization Diversity and Inclusion Maturity Model Singular Culture Compliance Embracing Collaborative Inclusive Largely homogeneous with limited diversity Views diversity as a challenge and focuses on affirmative action goals Sees value but struggles with optimization Inclusive organizations leverage the diverse backgrounds of individuals to drive value and business results Understands the value, is taking steps to include diverse opinions Leverages the diversity, employees feel respected and connected and bring their authentic selves to work 3X High Performing 5X Agile Source: Framework from Bersin by Deloitte 2014

28 The value ERGs can bring for employees & the organization Employee Engagement Community Outreach Business Value Proposition Company Reputation Talent Development Business Engagement

29 Employee Resource Groups at TIAA Current ERGs Pending ERGs New Employee Emerging Leaders ERGs Single Parents Remote Workers Millennials ERGs: A Partner for Innovation and Development in Business and Healthcare

30 ERGs in Action Joint Culture Survey Messages Speaker Series Developed Financial Literacy Strategy for Millennials Tested the new Voice Biometric system with IT Business Outcomes YoPro The young professionals of TIAA Provided generational perceptions of 403(b) products Tailored Professional Development Curriculum Partnered with Campus Recruitment Consulted on Digital Consumer Concepts

31 Mission/Vision ENGAGEMENT Guiding Path Strategy A strong culture & values with a strategic focus on diversity & inclusion drives greater engagement Goals Activities Objectives Vital Workforce Culture/Values Diversity/Inclusion Engagement Driving Path Adapted from Torben Rick : Is culture more important than strategy?

32 What is Employee Engagement? Employee engagement is different than recognition, happiness, satisfaction, or the employee experience. Engagement may be driven by these motivators, but it is really an indication of the emotional commitment the employee has to the organization and its goals Source: Kruse, 2012

33 Vaco s Engagement Scores Satisfaction with work environment & tools Proud to wear the Vaco Jersey! Vaco cares about me! I am happy to give extra effort at Vaco I think Vaco is an amazing place to work!

34 Recognition impacts engagement! FEW EMPLOYEES FEEL RECOGNIZED TODAY Only 22% of healthcare employees feel recognized for good work Almost 34% feel they are not recognized in meaningful ways Source: Lowe, Graham. "How Employee Engagement Matters..." Healthcare Quarterly 15.2 (2012)

35 Recognition impacts business! Gallup conducted a study that showed positive outcomes of improved employee engagement as related to recognition efforts. Impacts are seen in productivity, profitability, reduced defects, lower turnover, reduced safety incidents, and much lower absenteeism. Employee Engagement Affects Key Business Outcomes 30% Absenteeism High Turnover Orgs Low Turnover Orgs Shrinkage Safety Incidents Patient Safety Incidents Quality (Defects) Customer Productivity Profitability 20% 21% 22% 10% 10% 0% -10% -20% -24% -28% -30% -40% -37% -48% -41% -41% -50% -60% -65% -70%

36 Recognition impacts patient experience! HOSPITALS WITH HIGHLY ENGAGED EMPLOYEES SCORE: 10% HIGHER ON HCAHPS SURVEYS Gallup Poll 2014 MORE THAN HALF (54%) OF HEALTHCARE EXECUTIVES SAY PATIENT EXPERIENCE AND SATISFACTION IS ONE OF THEIR TOP THREE PRIORITIES. HealthLeaders Media s 2013 Industry Survey data

37

38 Mission/Vision Putting it all together: the power of a vital workforce Guiding Path Strategy Activities Goals Objectives Vital Workforce Culture/Values Diversity/Inclusion Engagement Driving Path Adapted from Torben Rick : Is culture more important than strategy?

39 Ensure workforce vitality to drive company sustainability Strengthening culture and values and embracing diversity and inclusion lead to more engaged employees, which results in a vital workforce. VITAL WORKFORCE PERSPECTIVE I m clear on the mission and values My voice matters My contribution is valued My team is directed towards a common goal I have a support system I am inspired to do my best I will deliver I take ownership of my own results, my teams and my organizations I am recognized and rewarded I have fun! I matter SUSTAINABILITY Future-proofing the organization to continue delivering on its mission and vision with strong performance for its customers

40 Correlating the vitality and sustainability Health of our Workforce Key Workforce Indicators Measuring What Matters Health of our Business Key Business Metrics External Diverse Hires Internal Hires Employee Mobility Labor Costs Compensation as a % of Revenue Hi-Performer Turnover Results Customer Impact Marketplace Position Voluntary Turnover

41 Summary of best practices Align the paths of strategy and culture to drive success Leverage multiple communication vehicles to reinforce cultural messages and test effectiveness Shape culture by equipping leaders, engaging employees and embedding values in management and people practices Focus on the engagement of senior leadership to drive higher engagement at other levels of the organization Focus on inclusion in addition to diversity for improved engagement. ERGs are a powerful way to drive inclusion and engagement. Measure the vitality of your workforce and correlate results to business outcomes

42 Disclaimers 1. Includes TIAA affiliate companies. 2. Includes both unique institutional clients with retirement plans in TIAA and Nuveen Investments, and those with Keogh plans. 3. LIMRA Secure Retirement Institute, Not-for-Profit Market Survey, second-quarter 2015 results. Based on a survey of 28 companies; TIAA assets by market segment estimated; segment breakdown based on 16 companies. Market share ranking does not reflect current investment performance. 4. LIMRA 3Q4Q 2014 Stable Value and Funding Agreement Product Survey. Based on a survey of 17 insurance companies and 5 banks reporting $578.8 billion in stable value amounts associated with qualified stable value assets. TIAA ranked first in total values. 5. Through December 31, Other benefits include: additional amounts paid on TIAA Traditional Annuity contracts above the guaranteed rate, surrender benefits and other withdrawals, death benefits, health insurance and disability insurance benefits, and all other policy proceeds paid. 6. Based on assets under management across Nuveen Investments affiliates and TIAA investment management teams as of June 30, 2015.

43 Footnotes Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. TIAA Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA), 730 Third Avenue, New York, NY 10017

44