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Successful Employee Engagement:
beyond the rhetoric
15th April 2010
MacLeod’s enablers
Leadership ensures a strong, transparent and explicit organisational
culture which gives employees a line of sight between their job and the
vision and aims of the organisation.
Engaging managers offer clarity, appreciation of employees’ effort and
contribution, treat their people as individuals and ensure that work is
organised efficiently and effectively so that employees feel they are
valued, and equipped and supported to do their job.
Employees feeling they are able to voice their ideas and be listened to,
both about how they do their job and in decision-making in their own
department, with joint sharing of problems and challenges and a
commitment to arrive at joint solutions.
A belief among employees that the organisation lives its values, and that
espoused behavioural norms are adhered to, resulting in trust and a sense
of integrity.
Olympic Delivery Authority
CIPR Conference

John Armitt, Chairman, ODA
Leadership
4   Olympic Delivery Authority: Title of presentation here
    00 Month 2007
5   Olympic Delivery Authority: Title of presentation here
    00 Month 2007
6   Olympic Delivery Authority: Title of presentation here
    00 Month 2007
7   Olympic Delivery Authority: Title of presentation here
    00 Month 2007
8   Olympic Delivery Authority: Title of presentation here
    00 Month 2007
Thank you




The official Emblem of the London Organising Committee of the Olympic Games
9 Paralympic Games Ltd Authority: Title of presentation here
and     Olympic Delivery is protected by copyright. Š London Organising Committee
        00 Month 2007
of the Olympic Games and Paralympic Games Ltd 2007. All rights reserved.
Tanith Dodge
HR Director
Marks & Spencer
Employee Voice
Where we are
• Never a more important time to think
  about employee engagement
• Last 12-18 months tough decisions
• Our people at the heart of recovery
Consumer confidence hits rock bottom
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           Consum er Confidence Barom eter
                                                                                                                                      record-26
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                                                                                                                                    Low est-30
                                                                                                                                             on
           G eneral Econom ic SituationN EXT 1 2 m onths
                                                                                                                                    record-32
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           Personal Financial SituationN EXT 1 2 m onths                                                                                     on
                                                                                                                                            -38
                                                                                                                                      record-40
                                                 Index figure

                                                                                                              
                                                                                                                                       Low est on
           Clim ate for M ajor Purchase
                                                                                                                                         record
           Savings Climate - ‘G ood time to Save’
                                                                                                                                     Sept 2 0 0 4

SOURCE: GFK July 08 and BRC
Engaging for Success
The M&S story
• Closed 30 under-performing stores
• Cut capital expenditure investment by £400
  million
• Capped increases to our final salary pension
  scheme
• Redundancies

But employee morale and commitment increased
over the year…
Two way communication
Channels of communication
• M&S Intranet
• Quarterly results
  broadcast
• Top 100 briefing
• Your M&S Employee
  magazine
• Quarterly Retail
  Conference
Employee Voice
•   Director Breakfasts
•   In-store listening groups
•   Focus Groups
•   Business Involvement Group
Problems & Solutions

• Shared approach with BIG
• Work with them to canvas
  employee opinion
• On shelf availability in food
  division
• Implemented new „Food Fill‟
  policy
• Cost savings of over £4million
Responding to feedback

• Employee opinions
  need to be heard and
  addressed
• Public accountability
  fosters best practice
• Builds relationship of
  trust
Employee Engagement
The top three predictors of employee engagement:
Opportunity and Wellbeing
Pride in the Company/Brand
Trust




Source: Towers Perrin Survey of 100,000 employees in 18 countries
Engaging for Success
• Opportunities & Wellbeing
• Harnessing our employees passion and
  commitment for the brand
• Using key events to bring employees together
  with a shared vision
• Regularly celebrating employee successes
• Incentivising staff to go the extra mile
• Demonstrating responsible leadership
• Fostering a relationship of trust
Opportunity & Wellbeing

•   Your Wellbeing
    Programme
•   Live Well Work Well
    Programme
•   Training and
    Development
•   Career Opportunities
Passion for the brand
Demonstrating Responsible
Leadership
Fostering a Relationship of Trust
Busts 4 Justice
Doing the right thing
Engaging for Success

•   94% response rate

•   Positivity results - 74%

•   Employee Engagement - 73%

•   Mystery Shopper scores
Q4 Business results
Bernstein   “M&S reported good Q4 LFL
            performance”

JP Morgan   “Q4 trading ahead of estimates”

Ambrian     “M&S enters a new era; it is starting
            in a stronger position ……
            …… he (SR) leaves M&S in a much
            healthier position than he found it.”
Conclusion
• Listen and Act
• Use your company DNA to fill employees
  with passion for your brand
• Connect with employees through timely
  events or achievements
• Keep the lines of communication open
• Show you are committed to doing the right
  thing
The Unipart Group




             Engaging Managers
          Frank Nigriello, Director of Corporate Affairs
Unipart’s step change occurred when it
privatised and placed the business in the hands
of managers who were committed to change
                   1987 Management Buy Out

                   “Britain‟s Worst Factory”

                   “The Best place to sleep in Oxford”

                   Single contract – with Rover

                   Legacy of disputes

                   Poor quality and unhappy people

                   But a deep commitment to change
Over the past 20 years, the Group has recreated
itself as a global logistics company


                                    Majority
         10,000         ÂŁ1.1b
                                   owned by
         people       turnover
                                  employees


       Commitment   Blue chip
                                 Recognised
       to engaging clients such
                                as a leader in
         people &       as
                                implementing
        engaging Sky, Vodafone
                                    Lean
        customers  and Jaguar
At the heart of that transformation was the
codification of our approach to operational
excellence which we called The Unipart Way

                      A philosophy of
                      working, underpinned by a
                      set of tools and techniques
                      that:
                      Form part of our knowledge
                       management systems
                      We continuously improve based
                       upon our experience
                      Enable us to improve faster than
                       the best alternative available to
                       our existing and potential
                       customers
Within the structure of The Unipart Way is a
capability for introducing and sustaining high levels
of employee engagement… which can be measured
  Engagement Metric                    Tool                 Engagement Levers
                                                     Listening Skills
                              Comm Cell
 I know what is expected of                          Empathy
                              Key Performance
 me day-to-day                                       Recognition and Respect
                              Indicators
                              Gate to Great
 I have the skills to do my   development plan       Coaching Skills
 job                          Competency Matrix      Personal development planning
                              Faculty on the Floor

 I’m encouraged to come       Our Contribution
                                                     Self Awareness, Listening Skills
 up with suggestions &        Counts Circles
                                                     Empathy, Recognition and Respect
 solve problems               Insight Star


                              Communication Cell     Self Awareness, Listening Skills
 Commitment to improve
                              Standard Work          Empathy, Clarity of purpose and commitment
 continually
                              Value Stream Mapping   to vision
Today Unipart has developed a culture that
promotes and practices engagement

                                On-going
          High
                  Unipart Way development
        employee
                    pervasive  programme
       engagement
                  across Group    for all
        recorded
                               employees


                   Rapid global
                                     Market
                   expansion for
                                 differentiator
                    consultancy


                ...but it took many years and deep commitment
The initial part of the journey to implement The
Unipart Way took place over ten years

        1994                2001                2003
     Introduced in       Unipart Way         Pockets of
     manufacturing       defined and         expertise
     sites               codified            established




         Introduced in       Company-            Management
         distribution        wide training       Conference
         and offices         programmes
                             introduced
            1997                2002                  2004
                                                ...represented a
                                                Tipping Point
How do we engage our managers and
inspire ownership and commitment?
                                                 Percentage Retention Rates

                            Behaviour
Five Stages of Learning




                                            90
                          Personalisation
                                            70

                           Acceptance       50

                                            30
                          Understanding

                                            10
                            Awareness
Our plan was to create a two-day learning
event that would meet demanding criteria


                          Fun
         Knowledge
                   Speed
                                Emotion
             Confidence
The impact was faster than expected and
deeper than expected

             2004      2006      2007        2008




                                                      Sustainable
                                                      Improvement




         Introduced   Trained   Confident   Leading
Managers now actively advocate employee
engagement in a development framework
to build expertise in a structured way

 Employees follow a five
  stage programme for
 personal development



                           “If you have that existential quality of
                                 motivation you can begin at
                             Unipart's Front Gate and with hard
                              work and deliberate practice over
                            many years you can become great”
                                   John M Neill, Group Chief Executive
Lessons learned…



                                      We had to
                     The learning     stretch our
     We never set
                      experience          own
     out to engage
                      integrated     imagination
     managers, we
                      knowledge       before we
     wanted to
                          with      could capture
     develop
                     belief…and           the
     leaders
                          fun       imagination of
                                    our colleagues
“Successful Employee
Engagement: beyond the
Rhetoric”



      Integrity
                  CIPR Event

                  15 April 2010
“Bankers collectively occupy a place
in public opinion significantly lower
then a cannibalistic paedophile”

Boris Johnson
Mayor of London – March 3rd 2009
What is integrity ?
• "integrity" stems from the Latin adjective integer (whole, complete).

• In this context, integrity may comprise the personal inner sense of
  "wholeness" deriving from honesty and consistency of character.
• As such, one may judge that others "have integrity" to the extent that
  one judges whether they behave according to the values, beliefs
  and principles they claim to hold.

• Integrity as a concept has to do with consistency of
  actions, values, methods, measures, principles, expectations and
  outcome.

• Some people use the term hypocrisy in contrast to integrity for
  asserting that one part of a value system demonstrably conflicts with
  another, and to demand that the parties holding apparently
  conflicting values account for the discrepancy or change their beliefs
  to improve internal consistency
Amazing People!
Amazing Culture!
Amazing Service!
first direct brand anatomy
•   Our mission:
    Pioneering Amazing Service

•   Our objective:
    To be the UK‟s most loved brand

•   Our brand essence:
    “Expect Respect”

•   Our customer benefit:
    Only first direct creates “Magical Rapport” between people

•   Our reason to believe:
    Only first direct understands that “People Matter More”
Our Values:




    passion   always on...   family




     pride      original     playful
Our “Totems”
• Direction (pride)
• Concierge     (original)

• Family day (family)
• Memory wall (pride)
• Name badges (pride)
• “Pie & Ears” (passion)
• Amazing People Dinner (passion & pride)
• Employee awards, (pride)
• Snowball fights (playful & always on!)
• Fun Fair (family & playful)
• New starters lunch (family)
• Thank you trees (passion)
• etc…..
Amazing People – Recruitment




                 our people are recruited for their
              personality and communication skills -
                      we teach them banking
Amazing People – Training
Amazing Culture: Playful
                 Our Playful People




                           ???
Amazing Culture: Original



                            • Less than 60 sec
                            • To make someone's day!




                            • Once you see those
                            familiar golden stars
                            • You know you‟ve made
                            a difference to someone.
Amazing Culture: Original

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Beyond the rhetoric

  • 1. Successful Employee Engagement: beyond the rhetoric 15th April 2010
  • 2. MacLeod’s enablers Leadership ensures a strong, transparent and explicit organisational culture which gives employees a line of sight between their job and the vision and aims of the organisation. Engaging managers offer clarity, appreciation of employees’ effort and contribution, treat their people as individuals and ensure that work is organised efficiently and effectively so that employees feel they are valued, and equipped and supported to do their job. Employees feeling they are able to voice their ideas and be listened to, both about how they do their job and in decision-making in their own department, with joint sharing of problems and challenges and a commitment to arrive at joint solutions. A belief among employees that the organisation lives its values, and that espoused behavioural norms are adhered to, resulting in trust and a sense of integrity.
  • 3. Olympic Delivery Authority CIPR Conference John Armitt, Chairman, ODA Leadership
  • 4. 4 Olympic Delivery Authority: Title of presentation here 00 Month 2007
  • 5. 5 Olympic Delivery Authority: Title of presentation here 00 Month 2007
  • 6. 6 Olympic Delivery Authority: Title of presentation here 00 Month 2007
  • 7. 7 Olympic Delivery Authority: Title of presentation here 00 Month 2007
  • 8. 8 Olympic Delivery Authority: Title of presentation here 00 Month 2007
  • 9. Thank you The official Emblem of the London Organising Committee of the Olympic Games 9 Paralympic Games Ltd Authority: Title of presentation here and Olympic Delivery is protected by copyright. Š London Organising Committee 00 Month 2007 of the Olympic Games and Paralympic Games Ltd 2007. All rights reserved.
  • 10. Tanith Dodge HR Director Marks & Spencer Employee Voice
  • 11. Where we are • Never a more important time to think about employee engagement • Last 12-18 months tough decisions • Our people at the heart of recovery
  • 12. Consumer confidence hits rock bottom 8 6 4 2 0 July July Jan-05 Jan-00 Sept Jun Sep April Feb Feb Dec- May May Aug Nov Dec Nov Oct Mar -2 Apr Jun -4 -6 -8 -10 -12 -14 -16 D ifference YoY -18 Low est since -20 Low est-22  on -24 Consum er Confidence Barom eter record-26 -28 Low est-30 on G eneral Econom ic SituationN EXT 1 2 m onths  record-32 -34 Low est-36  Personal Financial SituationN EXT 1 2 m onths on -38 record-40 Index figure  Low est on Clim ate for M ajor Purchase record Savings Climate - ‘G ood time to Save’  Sept 2 0 0 4 SOURCE: GFK July 08 and BRC
  • 14. The M&S story • Closed 30 under-performing stores • Cut capital expenditure investment by ÂŁ400 million • Capped increases to our final salary pension scheme • Redundancies But employee morale and commitment increased over the year…
  • 16. Channels of communication • M&S Intranet • Quarterly results broadcast • Top 100 briefing • Your M&S Employee magazine • Quarterly Retail Conference
  • 17. Employee Voice • Director Breakfasts • In-store listening groups • Focus Groups • Business Involvement Group
  • 18. Problems & Solutions • Shared approach with BIG • Work with them to canvas employee opinion • On shelf availability in food division • Implemented new „Food Fill‟ policy • Cost savings of over ÂŁ4million
  • 19. Responding to feedback • Employee opinions need to be heard and addressed • Public accountability fosters best practice • Builds relationship of trust
  • 20. Employee Engagement The top three predictors of employee engagement: Opportunity and Wellbeing Pride in the Company/Brand Trust Source: Towers Perrin Survey of 100,000 employees in 18 countries
  • 21. Engaging for Success • Opportunities & Wellbeing • Harnessing our employees passion and commitment for the brand • Using key events to bring employees together with a shared vision • Regularly celebrating employee successes • Incentivising staff to go the extra mile • Demonstrating responsible leadership • Fostering a relationship of trust
  • 22. Opportunity & Wellbeing • Your Wellbeing Programme • Live Well Work Well Programme • Training and Development • Career Opportunities
  • 28. Engaging for Success • 94% response rate • Positivity results - 74% • Employee Engagement - 73% • Mystery Shopper scores
  • 29. Q4 Business results Bernstein “M&S reported good Q4 LFL performance” JP Morgan “Q4 trading ahead of estimates” Ambrian “M&S enters a new era; it is starting in a stronger position …… …… he (SR) leaves M&S in a much healthier position than he found it.”
  • 30. Conclusion • Listen and Act • Use your company DNA to fill employees with passion for your brand • Connect with employees through timely events or achievements • Keep the lines of communication open • Show you are committed to doing the right thing
  • 31. The Unipart Group Engaging Managers Frank Nigriello, Director of Corporate Affairs
  • 32. Unipart’s step change occurred when it privatised and placed the business in the hands of managers who were committed to change 1987 Management Buy Out “Britain‟s Worst Factory” “The Best place to sleep in Oxford” Single contract – with Rover Legacy of disputes Poor quality and unhappy people But a deep commitment to change
  • 33. Over the past 20 years, the Group has recreated itself as a global logistics company Majority 10,000 ÂŁ1.1b owned by people turnover employees Commitment Blue chip Recognised to engaging clients such as a leader in people & as implementing engaging Sky, Vodafone Lean customers and Jaguar
  • 34. At the heart of that transformation was the codification of our approach to operational excellence which we called The Unipart Way A philosophy of working, underpinned by a set of tools and techniques that: Form part of our knowledge management systems We continuously improve based upon our experience Enable us to improve faster than the best alternative available to our existing and potential customers
  • 35. Within the structure of The Unipart Way is a capability for introducing and sustaining high levels of employee engagement… which can be measured Engagement Metric Tool Engagement Levers Listening Skills Comm Cell I know what is expected of Empathy Key Performance me day-to-day Recognition and Respect Indicators Gate to Great I have the skills to do my development plan Coaching Skills job Competency Matrix Personal development planning Faculty on the Floor I’m encouraged to come Our Contribution Self Awareness, Listening Skills up with suggestions & Counts Circles Empathy, Recognition and Respect solve problems Insight Star Communication Cell Self Awareness, Listening Skills Commitment to improve Standard Work Empathy, Clarity of purpose and commitment continually Value Stream Mapping to vision
  • 36. Today Unipart has developed a culture that promotes and practices engagement On-going High Unipart Way development employee pervasive programme engagement across Group for all recorded employees Rapid global Market expansion for differentiator consultancy ...but it took many years and deep commitment
  • 37. The initial part of the journey to implement The Unipart Way took place over ten years 1994 2001 2003 Introduced in Unipart Way Pockets of manufacturing defined and expertise sites codified established Introduced in Company- Management distribution wide training Conference and offices programmes introduced 1997 2002 2004 ...represented a Tipping Point
  • 38. How do we engage our managers and inspire ownership and commitment? Percentage Retention Rates Behaviour Five Stages of Learning 90 Personalisation 70 Acceptance 50 30 Understanding 10 Awareness
  • 39. Our plan was to create a two-day learning event that would meet demanding criteria Fun Knowledge Speed Emotion Confidence
  • 40. The impact was faster than expected and deeper than expected 2004 2006 2007 2008 Sustainable Improvement Introduced Trained Confident Leading
  • 41. Managers now actively advocate employee engagement in a development framework to build expertise in a structured way Employees follow a five stage programme for personal development “If you have that existential quality of motivation you can begin at Unipart's Front Gate and with hard work and deliberate practice over many years you can become great” John M Neill, Group Chief Executive
  • 42. Lessons learned… We had to The learning stretch our We never set experience own out to engage integrated imagination managers, we knowledge before we wanted to with could capture develop belief…and the leaders fun imagination of our colleagues
  • 43.
  • 44. “Successful Employee Engagement: beyond the Rhetoric” Integrity CIPR Event 15 April 2010
  • 45. “Bankers collectively occupy a place in public opinion significantly lower then a cannibalistic paedophile” Boris Johnson Mayor of London – March 3rd 2009
  • 46. What is integrity ? • "integrity" stems from the Latin adjective integer (whole, complete). • In this context, integrity may comprise the personal inner sense of "wholeness" deriving from honesty and consistency of character. • As such, one may judge that others "have integrity" to the extent that one judges whether they behave according to the values, beliefs and principles they claim to hold. • Integrity as a concept has to do with consistency of actions, values, methods, measures, principles, expectations and outcome. • Some people use the term hypocrisy in contrast to integrity for asserting that one part of a value system demonstrably conflicts with another, and to demand that the parties holding apparently conflicting values account for the discrepancy or change their beliefs to improve internal consistency
  • 48. first direct brand anatomy • Our mission: Pioneering Amazing Service • Our objective: To be the UK‟s most loved brand • Our brand essence: “Expect Respect” • Our customer benefit: Only first direct creates “Magical Rapport” between people • Our reason to believe: Only first direct understands that “People Matter More”
  • 49. Our Values: passion always on... family pride original playful
  • 50. Our “Totems” • Direction (pride) • Concierge (original) • Family day (family) • Memory wall (pride) • Name badges (pride) • “Pie & Ears” (passion) • Amazing People Dinner (passion & pride) • Employee awards, (pride) • Snowball fights (playful & always on!) • Fun Fair (family & playful) • New starters lunch (family) • Thank you trees (passion) • etc…..
  • 51. Amazing People – Recruitment our people are recruited for their personality and communication skills - we teach them banking
  • 53. Amazing Culture: Playful Our Playful People ???
  • 54. Amazing Culture: Original • Less than 60 sec • To make someone's day! • Once you see those familiar golden stars • You know you‟ve made a difference to someone.