Total Employee Engagement Requires a Sustainable Management Platform

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Total Employee Engagement Requires a Sustainable Management Platform Alberto M.

2 Gallup researchers have shown 70 percent of organizational change initiatives fail, 70 percent of workforces are unengaged, and 70 percent of the leadership in these organizations are actually causing counter-productive cultures and don t know it. April 2011 Source: Ron Medved, Your Corporate Culture s Personality, Washington CEO magazine, October FilardoGroup All rights reserved 2

3 Critical questions 1. What do you do? 2. How well do you do what you do? 3. Can you prove your standard of performance by reliable, relevant data from those you serve? 4. What is your perception of good? 5. Do you know your gaps between your current and desired states? 6. Do you have a methodology to narrow the gap consistently? 7. Do you innovate? 8. Do you have control? April FilardoGroup All rights reserved 3

5 Definition of Leadership A leader is one or more people who selects, equips, trains, and influences one or more follower(s) who have diverse gifts, abilities, and skills and focuses the follower(s) to the organization s mission and objectives causing the follower(s) to willingly and enthusiastically expend spiritual, emotional, and physical energy in a concerted coordinated effort to achieve the organization s mission and objectives. Source: Winston, Bruce E. & Patterson, Kathleen (2006). An integrative definition of leadership. International Journal of Leadership Studies, volume I, Issue 2, 2. Regent University. April FilardoGroup All rights reserved 5

6 Definition of Leadership contd. The leader achieves this influence by humbly conveying a prophetic vision of the future in clear terms that resonates with the follower(s) beliefs and values in such a way that the follower(s) can understand and interpret the future in to present-time action steps. Source: Winston, Bruce E. & Patterson, Kathleen (2006). An integrative definition of leadership. International Journal of Leadership Studies, volume I, Issue 2, 2. Regent University. April FilardoGroup All rights reserved 6

7 Management vs. Leadership Companies manage complexities first by planning and budgeting setting targets or goals for the future, establishing detailed steps for achieving those targets, and then allocating resources to accomplish those plans. By contrast, leading an organization to constructive change begins by setting direction developing a vision of the future (often the distant future) along with strategies for producing the changes needed to achieve that vision. April FilardoGroup All rights reserved Source: John P. Kotter, On What Leaders Really Do,

8 Four Elements of Misconception DESIRE does not mean ACCOMPLISHMENT PASSION does not mean SUCCESS ACTIVITIES do not mean RESULTS UNDERSTANDING does not mean PERFORMANCE Becoming a successful organization takes a vision, direction, methodology, competent leadership, excellent management, and a motivated team that recognizes the difference between commitment and compliance. Source: Alberto M. Filardo, 2009 April FilardoGroup All rights reserved 8

10 Vision with no action is a day dream; Action with no vision is a nightmare. Source unknown Actions not aligned to the vision can be disastrous. Alberto Filardo April FilardoGroup All rights reserved 10

11 VMGO Framework VISION Our dream is MISSION We will provide GOAL GOAL GOAL High level to dos OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE Performance supporting the goal, mission, and vision April FilardoGroup All rights reserved 11

12 A Vision Describes the future Where you are headed or Where you want to end up Defines how the organization would like to be regarded by those it serves Focuses on the distant future, looking ahead about five to ten years or longer Is short and concise Must be inspiring! April FilardoGroup All rights reserved 12

13 Vision Examples Verde Valley Leadership Clarkdale Sustainability Park Westin Hotels and Resorts AME Inspiring individuals to action To be an evolutionary solution for a sustainable community Year after year, Westin and its people will be regarded as the best and most sought after hotel and resort management group in North thamerica To be recognized throughout North America as the professional association where its members can learn to add ever-greater value for customers and stakeholders April FilardoGroup All rights reserved 13

14 The Ira A. Fulton Schools of Engineering Vision Example Leading Engineering Discovery and Innovative Education for Global Impact on Quality of Life We seek to produce new engineers as well as discoveries and technologies focused on research to enhance the quality of life in the U.S. and beyond. For example, we strive to help the blind to see and the paralyzed to walk. We develop new computing methods and biomedical tools to understand disease and improve human health. We seek to provide safe and sustainable water supplies, create alternative energy sources and make electronic communication ubiquitous and secure. We strive to design safer and more energy-efficient transportation systems, help businesses optimize operations, and build our houses, businesses and society's basic infrastructure in more cost-effective and environmentally sustainable ways. April FilardoGroup All rights reserved 14

15 A Mission Is all about today, the reason for the existence of the organization, and what the organization is providing in pursuit of its vision Summarizes the organization s focus for the next twelve months, moving the organization closer to accomplishing its vision. April FilardoGroup All rights reserved 15

16 Mission Examples Verde Valley Leadership AME FedEx Provides growth opportunities, leadership skills and community issues training while cultivating diverse, influential networks To inspire commitment to enterprise excellence through shared learning and access to best practices FedEx is committed to our People-Service-Profit philosophy. We will produce outstanding financial returns by providing totally reliable, competitively superior, global, air-ground transportation of high-priority goods and documents that require rapid, time-certain delivery. April FilardoGroup All rights reserved 16

17 Mission Example The Ira A. Fulton P id E i t Ri h i Schools of Transdisciplinary Research, Engineering g Provide an Environment Rich in Education, Entrepreneurship, and Leadership Resulting in Successful Engineers and Technologies that Benefit Society We provide each student with a strong foundation in a specific discipline and encourage them to individualize their education through entrepreneurial courses and opportunities, research and discovery, cross-discipline exploration, internships, and professional society activities. Fulton Engineers are distinguished by their transdisciplinary mind-set, their understanding of the societal implications of their decisions, and their potential for success in non-traditional engineering careers. Our discovery and technology development activities are use-inspired and increasingly transdisciplinary, teaming engineers with artists, policy analysts, psychologists, economists and medical clinicians. We expect our engineers to be leaders in supporting the ideas behind this vision and mission. April FilardoGroup All rights reserved 17

18 VMGO Framework VISION Our dream is MISSION We will provide GOAL GOAL GOAL High level to dos OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE Performance supporting the goal, mission, and vision April FilardoGroup All rights reserved 18

19 8 Rs Recruit Retain Rigorous Research Resources Recognition Relationships Responsible Recruit talented and diverse students, faculty and staff Retain talent pool by providing a healthy, inspiring environment Deliver rigorous, relevant and innovative engineering education Advance quality research and disseminate discoveries that benefit science, technology and society Cultivate resources that support the school's Vision and Mission Achieve global recognition for excellence in engineering, education and discovery Provide a positive, interactive, entrepreneurial working and learning environment Develop and practice responsible leadership that drives progress and produces results April FilardoGroup All rights reserved 19

21 Meldrum Form Bi-directional Accountability Department The Meldrum Form Owner's Name GOAL Continuously improve our organization s products & services PERFORMANCE RESOURCES REQUIRED CRITERIA INDICATORS Major items to be performed to accomplish the goal Resources needed to accomplish the performance Standards of performance Measures that validate standards of performance (Examples: FTEs, space, equipment or money) If resources are already in place, indicate N/A (Examples: By when, how well) The idea here is to exceed expectations. (Examples: A rating of 8-10 on a survey where 1=poor and 10=best; increases in ranking; membership in certain organizations; or recognition by a body of peers) April FilardoGroup All rights reserved 21

22 Results from Gallup Study of Employee Attitudes Findings from a multi-year effort analyzing the relationships between employee attitudes and critical business outcomes, including revenue, profitability, customer loyalty, and employee retention Based on more than 100,000 employees from 2,500 business units in 12 industries Identified d these employee attitudes as paramount in managing and improving i the workplace: "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." "In the past six months, someone at work has talked to me about my progress. April FilardoGroup All rights reserved Source: Training & Development, December 1998, pp

23 VISION Our dream is VMGO MISSION We will provide GOAL The Meldrum Form The Meldrum Form Department Owner's Name MANAGEMENT GOAL #1 PERFORMANCE Exceed customer expectations by providing superior service RESOURCES REQUIRED CRITERIA INDICATORS OBJEC CTIVE OBJEC CTIVE OBJEC CTIVE Major items to be performed to accomplish the goal Resources needed to accomplish the performance item (Examples: FTEs, space, equipment or money) If resources are already in place, indicate N/A Standards of performance (Examples: By when, how well) The idea here is to exceed expectations. Measures that validate standards of performance (Examples: A rating of 8-10 on a survey where 1=poor and 10=best; increases in ranking; membership in certain organizations; or recognition by a body of peers) April FilardoGroup All rights reserved 23

26 Why people don t follow plans People 1. Misalignment 2. Silent no buy ins 3. Undermining 4. Lack of skills 5. Poor communication 6. Culture is not ready 7. Lack of understanding of outside forces driving necessary change 8. Lack of leadership influence on entire enterprise Process 1. Treated as an event, not a process 2. Created as a reaction, not as a driver toward desired future state 3. Lack of clarity not driven by desired future state 4. Irrelevant - We have to have one, so let s write one 5. Strategy gets in the way of success Intel 6. Consensus about the plan, but lacks coherence 7. Plan is not embedded in the culture 8. Not converted to execution in operations 9. Magnitude of work required to be successful is underestimated 10. No structural or financial support for the plan 11. No process to maintain the plan the right strategy today may be wrong tomorrow 12. Progress assessments are lacking 13. No controls in place to prevent reverting back to previous state April FilardoGroup All rights reserved 26

28 AUAECI Leadership Acknowledge Understand Gathers team and publicly supports the vision and mission of the overall organization and the methodology. Works with all team members to convey complete meaning of the vision and missions so that each person understands. Remember, one can t assume that people who understand will do. April FilardoGroup All rights reserved 28

29 AUAECI Leadership Align Execute Work to ensure that where they re going fits within the vision, mission, goals and measurable objectives. Perform their work at levels that meet or exceed customers expectations. Standards? Five nines? Six Sigma? Consider Continuous Improvement as a name. April FilardoGroup All rights reserved 29

30 AUAECI Leadership Control Innovate Use mechanisms to track performance and establish accountability, preventing the organization from reverting back to old ways. Indoctrinate t new employees as soon as they are hired so they don t become the weak link in your processes. Continuously improve. Introduce something new to reduce costs or cycle times while increasing effectiveness and efficiency for the benefit of customers. April FilardoGroup All rights reserved 30

31 Effective engagement requires establishing appropriate behaviors Focus on accomplishing goals, not celebrating the obstacles We can do it with Drive decisions with relevant, reliable, and current data Analyze and prioritize the voices of both internal and external customers Build and transform an organization; don t just run one Prioritize projects based on return on investment and the consequences of not investing Use problematic, not symptomatic approaches [Y=f(X)] April FilardoGroup All rights reserved 31

32 The Culture of X Y = f (X) Output = Process (Input) Symptoms = Discussion without action Resistance to change Lack of transparency Lack of consistency Inverse hierarchical awareness of reality Persistent customer service problems Support services with defensive or adversarial attitudes Process (Problem) Heroes April FilardoGroup All rights reserved 32

35 Habits leading to an adaptive culture Operational protocol Goals assigned to individuals or to groups Project management Metrics culture Continuous improvement mentality Culture of X Manage the F4P s Lead! April FilardoGroup All rights reserved 35

37 Leading change People are encouraged to change when the answer to the question What s in it for me? improves their well being. Alberto Filardo Filardo Group April FilardoGroup All rights reserved 37

38 What comprises a healthy culture? Cooke and Rafferty s study of constructive cultures looks at the elements of achievement orientation, self- actualization, humanistic-encouraging leadership and dynamic teaming as key indicators toward defining a healthy culture. Caring about people and win/win orientations at work result in cultures that have an observable vibrancy and creativity. They are purposeful, people-oriented oriented, and places of genuine wellness. April 2011 Source: Ron Medved, Your Corporate Culture s Personality, Washington CEO magazine, October FilardoGroup All rights reserved 38

39 Analyzing un-adaptive or defensive cultures Harvard researchers John Kotter and James Heskett analyzed 207 companies over an 11-year period (not during the dot.com era). The results are impressive: Measure Un-adaptive Adaptive Cultures Results Cultures Results Revenue Up 166% Up 682% Stock Prices Up 74% Up 901% Net Income Up 1% Up 756% At the healthy extreme, a constructive or adaptive workplace is an exciting, rewarding place of challenge and accomplishment. April 2011 Source: Ron Medved, Your Corporate Culture s Personality, Washington CEO magazine, October FilardoGroup All rights reserved 39

42 Integrity We never compromise our integrity. Having integrity means more than simply the absence of deception. We tell the truth, honor our commitments, adhere to ethical standards, treat others with respect and act responsibly. s We do the right thing because it is the right thing to do. April FilardoGroup All rights reserved 42

43 Teamwork We practice teamwork through such actions as assisting each other, providing each other feedback, exchanging information, and executing our tasks in a timely and integrated manner. We recognize that we make better decisions and produce better results together than working alone. April FilardoGroup All rights reserved 43

44 Quality Quality is our way of life and is something we incorporate throughout all our processes. Quality means doing the daily work and continuously improving everything we do. April FilardoGroup All rights reserved 44

46 Leadership We lead by example. We foster an environment that empowers and motivates others to successfully accomplish their objectives. We mentor and develop each other and our peers. We serve. April FilardoGroup All rights reserved 46

47 Customer Service We commit ourselves not only to meeting expectations, but to exceeding them. We recognize that the customer is the most important judge of the quality of a product or process. April FilardoGroup All rights reserved 47

48 Stewardship We strive to make the best use of resources within our control and to support others in doing the same. We recognize that we are caretakers of these resources. April FilardoGroup All rights reserved 48

49 Closing questions and points Declaring We have a great culture! is not enough Culture is ever-changing as a result of people movement, product changes and market dynamics Key is an organization s ability to foster continuous improvement considering the above factors April FilardoGroup All rights reserved 49

50 Closing questions and points When people p in the organization speak about what is in it for them, they have a better understanding of why quality improvements are necessary they are beginning to buy in April FilardoGroup All rights reserved 50

51 Closing questions and points 1. Is it the leader s culture or the organization s culture? 2. How do you know how well your organization is performing? Can you detect impending crisis? 3. How do you orient new employees at all levels to ensure they align to your desired culture? 4. How do you ensure you are listening to the people closest to the product & your customers not just the methodology expert? April FilardoGroup All rights reserved 51

52 Closing questions and points Everything needed to be written about Six Sigma/Lean Sigma has probably been written. What we need to teach is now well documented. Culture & behaviors needed are dynamic and require our best attention. April FilardoGroup All rights reserved 52