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M o n e t iz in g
E ng a g e me nt

     Stanley Labovitz, CEO
    Stan@Infotool-online.com
        1-866-616-5552
    www.surveytelligence.com

        All rights reserved, 2012
                                    1
“ If y o u r e n g a g e m e n t s u r v e y
     p r o c e s s d o e s n ’ t m o v e yo u r
    o r g a n iz a t io n t o w a r d p o s it iv e
  c h a n g e , t h e n s o m e w h e r e a lo n g
t h e w a y y o u h a v e m is s e d a s t e p ”

P O S IT IV E C H A N G E H A P P E N S W IT H
                E NGA GE M E NT




                                                      2
E ng a g e me nt a nd the
        B o t t o m lin e
  A 5 0 % s p r e a d in o b s e r v e d
                p e rfo rm a n c e




C o m p a n ie s w it h h ig h le v e ls o f P e o p le
  e n g a g e m e n t im p r o v e d  19 . 2 %
C o m p a n ie s w it h lo w le v e ls o f P e o p le
 e n g a g e m e n t d e c lin e d   3 2 .7 %
                                          Towers Watson 3
E ng a g e me nt a nd the
B o t t o m lin e
 G r o w t h /C o m p e t i t i v e n e s
 s
 Th e g r o w th r a te o f
o r g a n iz a t io n s w it h
e ng a g e me nt s c ore s
in t h e t o p q u a r t ile
w a s 2 . 6 t im e s
g re a te r tha n
o r g a n iz a t io n s w it h
b e lo w a v e r a g e
s c ore s .
                                            4
E ng a g e me nt a nd
    t h e B o t t o m lin e
P r o d u c t iv it y
E n g a g e d p e o p le
a r e c o n s is t e n t ly
m o r e p r o d u c t iv e ,
p r o f it a b le , s a f e r ,
h e a lt h ie r , a n d
87%       le s s lik e ly
t o le a v e t h e ir
e m p lo y e r .
Corporate Leadership Council


                                  5
Wa n t M o r e ?
                 HEALDSBURG, CA, May 16, 2012
      Reporting from the 2012 ASTD Conference
   (American Society for Training & Development):
   Annual losses in lost productivity from ‘actively
  disengaged’ employees have risen to $328 billion.

The study compared the attitudes of ‘engaged employees’
 – those who work with passion and feel connected to the
company; ‘not-engaged employees’ – unhappy employees
  who put time, but not energy or passion into their work;
  and ‘actively disengaged employees’ – employees who
   are not just unhappy, but are actively acting out their
                       unhappiness.

                                                             6
S t ill N o t
  C o n v in c e d ?
• Businesses with more engaged employees have 51% higher
  productivity (Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2)
• Businesses with higher engagement have 9% higher shareholder
  returns (Towers Watson, 2009)
• Companies with the most effective employee communication have
  47% higher shareholder returns over the last five years (Towers Watson, 2010)
• Engaged employees outperform disengaged employees by 20-28%
   (The Conference Board)


• Organizations with engaged employees showed a 19% increase in
  operating income over a 12-month period, compared to a 33%
  decrease in companies with disengaged employees (Towers Perrin, 2008)


                                                                                             7
How about now?
• Employer understanding of the business strategy and how their
  work contributes to company performance is one of the top
  drivers of engagement (The Conference Board, 2006)

• Almost 2/3 of all employees are 33% as productive as they could
  be because they don’t understand what they are being asked to do
  (The Conference Board, 2006)


• 80% of employees with a high degree of trust in management are
  committed to the organization, compared with 25% of employees
  with a low degree of trust (Center for Creative Leadership)
• In organizations with highly engaged employees the share prices
  rose by an average of 16%compared with an industry average of
  6% (Serota Consulting, 2005)

• Highly engaged employees have less absence days – in average 3
  to 5 days
                                                                     8
Engagement is one of those key
 Building blocks to profitability;
 a prerequisite to aligning your
 Organization to your customer
  D r . G e o r g e L a b o v i t z , P o w e r o f A l i g n m e n t , W i l e y 19 9 8




                                                                                           9
W h y In t e r t w in e
     E ng a g e me nt a nd
         A lig n m e n t ?
 Sustained Growth & Profit are achieved
by creating consistent alignment between
 “engaged” people, A N D “the business
   drivers” of customers, strategy and
                 process.

                D r . G e o r g e L a b o v it z , P o w e r o f
                A lig n m e n t


                                                                   10
S t e p s t o Im p le m e n t
          E ng a g e me nt
         a n d A lig n m e n t

                          o n
           g       a ti
      t in o r m
     a f
 re ns
C a
 T r
is     Ali
          e   nt            gn
        m
       ge             Is b me
   ga
E n ur e
                          us nt
                              ine
 cu lt                           ss
     Implementation
         Is hard
                       Man
P rofit               are  age
                              rs
i s at h and              key
                                      12
“Organizations themselves need
   to break the gridlock of an
 existing culture cycle and re-
  energize the people to move
 forward in the right direction!”


                                13
Im p le m e n t a t io n N e e d s




                                     14
M a n a g e r s /S u p e r v i s o r
                 s
M a n a g e r s C o n t r o l t h e Im p le m e n t a t io n




                                                               15
P e o p le
M a n a g e r s E n e r g iz e




                                 16
L e a d e r s h ip
Im p a c t o n t h e o r g a n iz a t io n




                                             17
How do you
 MEASURE
engagement?

              18
In f o T o o l’ s M e a s u r e m e n t
                         S ys te m
    ENGAGEMENT                   A L IG N M E N T
                                 •Communications
   Trust and Integrity
                                 •Organizational pride
   Growth Opportunity
                                 •Innovation
   Pride in the organization    •Process
   Relationship with Leader     •Performance Management
   Line of Sight                •Customer Focus

   Nature of work               •Leadership Development
                                 •Loyalty
   Co Worker Relationship
                                 •Visionary Leadership
   Personal Development
                                 •Technology
                                 •Great Place to Work

                                                           19
T h e E n g a g e m e n t /A l i g n m e n t S u r v e y
                                        8 Engagement
                                        Measures




12 Alignment
Measures
                                                           20
S u r v e y a s k e d : O v e r a ll, I f e e l w e h a v e
u n d e r g o n e a p o s it iv e c h a n g e t h a t h a s im p r o v e d
                    m y w o r k c o n d it io n s         :
    3   s e le c t io n s : A G r e a t D e a l, M a y b e , N o t R e a lly




                                                          A GREAT DEAL:
                                                       “Great Place to work”
                                                           High Score 88


                                                              Overall
                                                          Engagement-75




                                                                               21
O v e r a ll, I f e e l w e h a v e u n d e r g o n e
      a p o s it iv e c h a n g e t h a t h a s
    im p r o v e d m y w o r k c o n d it io n s
                                      NOT REALLY

                                        “ A G re a t
                                         P la c e t o
                                      W o r k ” -L o w
                                      S c ore of 6 1

                                          Ov e r a l l
                                    E n g a g e me n t - 4 8




                                                               22
InfoTool Survey Engine
  Amazingly Insightful
    See Actions for
         Each
      Workgroup




                         23
Infotool’s Engagement &
Alignment Analysis
•   Strength and Weakness reports for every
    manager, department and job function
•   Performance variations
•   Birdseye view of culture
•   Action planning by importance measures
•   Unlimited demographic slicing
•   Aggregate and intersect demographic groups


                                                 24
Who We Are – InfoTool’s Team
                        George Labovitz: Expert in Organization Dynamics
                        Dr. Labovitz is the Founder and CEO of Organizational Dynamics, Inc. (ODI). He counsels
                        corporate executives on organizational alignment and integration strategies and quality
                        management. He is also professor of management and organizational behavior at Boston
                        University's School of Management. He has published or contributed to management articles in
                        Fortune, the Wall Street Journal, Quality Progress, and Quality Management in Healthcare.
                        He is also
                        co-author of Making Quality Work (Harper Business, 1993) and
Snapshot:               The Power of Alignment (John Wiley & Sons, Inc. 1997).

                        ODI was chosen by the United States Postal Service as the Quality Supplier Award Winner in the
• Pioneer in OD         small service company category from among 60,000 suppliers. ODI's healthcare division provides
                        Total Quality Management services to over 240 medical centers in the U.S. and Europe.
• Dr. Labovitz has
  presented keynote     George has been a Distinguished Visiting Lecturer at the Naval, Air Force and Army War
  addresses to
                        Colleges. He holds a BS from Boston University, an MBA from Boston College, and a Ph.D. from
  diverse audiences
                        Ohio State University.
  throughout the
  world, including
  the American          George will assist in the interpretation of Results in the Reporting stages as required.
  Hospital
  Association, the
  American College of
  Healthcare
  Executive and The
  Healthcare Forum.

                                                                                                                   25
Who We Are – InfoTool’s Team
                         Stan Labovitz: Technology and Engagement Consultant
                         Stanley Labovitz, the architect and CEO of the InfoTool Organizational Analysis Tool, and was an
                         active OD consultant for 15 years with Organizational Dynamics, Inc (ODI). In 2002, Labovitz
                         founded InfoTool with a vision of providing leadership the tools to effective manage the journey to
                         alignment. InfoTool has represented fortune 1000 companies, worldwide, with locations in five
                         countries and has become recognized as an expert in Change Management.

                         Stan has employed InfoTool with Fortune 100 companies, including the Agriculture Department
                         and the Business Transformation Agency of the DOD, Staples, Genzyme Corporation, and many
 Snapshot:               others. Throughout the world, much of his work has been related to employee engagement,
                         customer focused change behaviours, leadership and alignment including those for energy
 • Architect of the      companies such as Pengrowth Oil, Projex and EPRI. He is considered as an expert by his peers
   InfoTool              in survey design, analysis and culture change.

 • Extensive             Sted Marketing Research has obtained a license to use InfoTool under its Dynamifx name, and
   experience in all     has crafted a set of employment engagement questions, accompanied by a codified approach to
   aspects of            analysis and reporting.
   employment
   engagement studies
                         Stan will serve as the Program’s Technology and Training Consultant, at both the Survey
 • Consulted to client   Process and Execution and Results Reporting stages.
   end-users on the
   tool’s execution,
   analytics and
   implementation


                                                                                                                        26

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Monetizing Employee Engagement

  • 1. M o n e t iz in g E ng a g e me nt Stanley Labovitz, CEO Stan@Infotool-online.com 1-866-616-5552 www.surveytelligence.com All rights reserved, 2012 1
  • 2. “ If y o u r e n g a g e m e n t s u r v e y p r o c e s s d o e s n ’ t m o v e yo u r o r g a n iz a t io n t o w a r d p o s it iv e c h a n g e , t h e n s o m e w h e r e a lo n g t h e w a y y o u h a v e m is s e d a s t e p ” P O S IT IV E C H A N G E H A P P E N S W IT H E NGA GE M E NT 2
  • 3. E ng a g e me nt a nd the B o t t o m lin e A 5 0 % s p r e a d in o b s e r v e d p e rfo rm a n c e C o m p a n ie s w it h h ig h le v e ls o f P e o p le e n g a g e m e n t im p r o v e d 19 . 2 % C o m p a n ie s w it h lo w le v e ls o f P e o p le e n g a g e m e n t d e c lin e d 3 2 .7 % Towers Watson 3
  • 4. E ng a g e me nt a nd the B o t t o m lin e G r o w t h /C o m p e t i t i v e n e s s Th e g r o w th r a te o f o r g a n iz a t io n s w it h e ng a g e me nt s c ore s in t h e t o p q u a r t ile w a s 2 . 6 t im e s g re a te r tha n o r g a n iz a t io n s w it h b e lo w a v e r a g e s c ore s . 4
  • 5. E ng a g e me nt a nd t h e B o t t o m lin e P r o d u c t iv it y E n g a g e d p e o p le a r e c o n s is t e n t ly m o r e p r o d u c t iv e , p r o f it a b le , s a f e r , h e a lt h ie r , a n d 87% le s s lik e ly t o le a v e t h e ir e m p lo y e r . Corporate Leadership Council 5
  • 6. Wa n t M o r e ? HEALDSBURG, CA, May 16, 2012 Reporting from the 2012 ASTD Conference (American Society for Training & Development): Annual losses in lost productivity from ‘actively disengaged’ employees have risen to $328 billion. The study compared the attitudes of ‘engaged employees’ – those who work with passion and feel connected to the company; ‘not-engaged employees’ – unhappy employees who put time, but not energy or passion into their work; and ‘actively disengaged employees’ – employees who are not just unhappy, but are actively acting out their unhappiness. 6
  • 7. S t ill N o t C o n v in c e d ? • Businesses with more engaged employees have 51% higher productivity (Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2) • Businesses with higher engagement have 9% higher shareholder returns (Towers Watson, 2009) • Companies with the most effective employee communication have 47% higher shareholder returns over the last five years (Towers Watson, 2010) • Engaged employees outperform disengaged employees by 20-28% (The Conference Board) • Organizations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in companies with disengaged employees (Towers Perrin, 2008) 7
  • 8. How about now? • Employer understanding of the business strategy and how their work contributes to company performance is one of the top drivers of engagement (The Conference Board, 2006) • Almost 2/3 of all employees are 33% as productive as they could be because they don’t understand what they are being asked to do (The Conference Board, 2006) • 80% of employees with a high degree of trust in management are committed to the organization, compared with 25% of employees with a low degree of trust (Center for Creative Leadership) • In organizations with highly engaged employees the share prices rose by an average of 16%compared with an industry average of 6% (Serota Consulting, 2005) • Highly engaged employees have less absence days – in average 3 to 5 days 8
  • 9. Engagement is one of those key Building blocks to profitability; a prerequisite to aligning your Organization to your customer D r . G e o r g e L a b o v i t z , P o w e r o f A l i g n m e n t , W i l e y 19 9 8 9
  • 10. W h y In t e r t w in e E ng a g e me nt a nd A lig n m e n t ? Sustained Growth & Profit are achieved by creating consistent alignment between “engaged” people, A N D “the business drivers” of customers, strategy and process. D r . G e o r g e L a b o v it z , P o w e r o f A lig n m e n t 10
  • 11. S t e p s t o Im p le m e n t E ng a g e me nt a n d A lig n m e n t o n g a ti t in o r m a f re ns C a T r
  • 12. is Ali e nt gn m ge Is b me ga E n ur e us nt ine cu lt ss Implementation Is hard Man P rofit are age rs i s at h and key 12
  • 13. “Organizations themselves need to break the gridlock of an existing culture cycle and re- energize the people to move forward in the right direction!” 13
  • 14. Im p le m e n t a t io n N e e d s 14
  • 15. M a n a g e r s /S u p e r v i s o r s M a n a g e r s C o n t r o l t h e Im p le m e n t a t io n 15
  • 16. P e o p le M a n a g e r s E n e r g iz e 16
  • 17. L e a d e r s h ip Im p a c t o n t h e o r g a n iz a t io n 17
  • 18. How do you MEASURE engagement? 18
  • 19. In f o T o o l’ s M e a s u r e m e n t S ys te m ENGAGEMENT A L IG N M E N T •Communications  Trust and Integrity •Organizational pride  Growth Opportunity •Innovation  Pride in the organization •Process  Relationship with Leader •Performance Management  Line of Sight •Customer Focus  Nature of work •Leadership Development •Loyalty  Co Worker Relationship •Visionary Leadership  Personal Development •Technology •Great Place to Work 19
  • 20. T h e E n g a g e m e n t /A l i g n m e n t S u r v e y 8 Engagement Measures 12 Alignment Measures 20
  • 21. S u r v e y a s k e d : O v e r a ll, I f e e l w e h a v e u n d e r g o n e a p o s it iv e c h a n g e t h a t h a s im p r o v e d m y w o r k c o n d it io n s : 3 s e le c t io n s : A G r e a t D e a l, M a y b e , N o t R e a lly A GREAT DEAL: “Great Place to work” High Score 88 Overall Engagement-75 21
  • 22. O v e r a ll, I f e e l w e h a v e u n d e r g o n e a p o s it iv e c h a n g e t h a t h a s im p r o v e d m y w o r k c o n d it io n s NOT REALLY “ A G re a t P la c e t o W o r k ” -L o w S c ore of 6 1 Ov e r a l l E n g a g e me n t - 4 8 22
  • 23. InfoTool Survey Engine Amazingly Insightful See Actions for Each Workgroup 23
  • 24. Infotool’s Engagement & Alignment Analysis • Strength and Weakness reports for every manager, department and job function • Performance variations • Birdseye view of culture • Action planning by importance measures • Unlimited demographic slicing • Aggregate and intersect demographic groups 24
  • 25. Who We Are – InfoTool’s Team George Labovitz: Expert in Organization Dynamics Dr. Labovitz is the Founder and CEO of Organizational Dynamics, Inc. (ODI). He counsels corporate executives on organizational alignment and integration strategies and quality management. He is also professor of management and organizational behavior at Boston University's School of Management. He has published or contributed to management articles in Fortune, the Wall Street Journal, Quality Progress, and Quality Management in Healthcare. He is also co-author of Making Quality Work (Harper Business, 1993) and Snapshot: The Power of Alignment (John Wiley & Sons, Inc. 1997). ODI was chosen by the United States Postal Service as the Quality Supplier Award Winner in the • Pioneer in OD small service company category from among 60,000 suppliers. ODI's healthcare division provides Total Quality Management services to over 240 medical centers in the U.S. and Europe. • Dr. Labovitz has presented keynote George has been a Distinguished Visiting Lecturer at the Naval, Air Force and Army War addresses to Colleges. He holds a BS from Boston University, an MBA from Boston College, and a Ph.D. from diverse audiences Ohio State University. throughout the world, including the American George will assist in the interpretation of Results in the Reporting stages as required. Hospital Association, the American College of Healthcare Executive and The Healthcare Forum. 25
  • 26. Who We Are – InfoTool’s Team Stan Labovitz: Technology and Engagement Consultant Stanley Labovitz, the architect and CEO of the InfoTool Organizational Analysis Tool, and was an active OD consultant for 15 years with Organizational Dynamics, Inc (ODI). In 2002, Labovitz founded InfoTool with a vision of providing leadership the tools to effective manage the journey to alignment. InfoTool has represented fortune 1000 companies, worldwide, with locations in five countries and has become recognized as an expert in Change Management. Stan has employed InfoTool with Fortune 100 companies, including the Agriculture Department and the Business Transformation Agency of the DOD, Staples, Genzyme Corporation, and many Snapshot: others. Throughout the world, much of his work has been related to employee engagement, customer focused change behaviours, leadership and alignment including those for energy • Architect of the companies such as Pengrowth Oil, Projex and EPRI. He is considered as an expert by his peers InfoTool in survey design, analysis and culture change. • Extensive Sted Marketing Research has obtained a license to use InfoTool under its Dynamifx name, and experience in all has crafted a set of employment engagement questions, accompanied by a codified approach to aspects of analysis and reporting. employment engagement studies Stan will serve as the Program’s Technology and Training Consultant, at both the Survey • Consulted to client Process and Execution and Results Reporting stages. end-users on the tool’s execution, analytics and implementation 26