Employee Engagement

Beyond Corporate Entrepreneurism
9 MANAGEMENT INTERVENTIONS TO MAKE YOUR BUSINESS MORE AGILE!
© SigMax E Services, 2015
EMPLOYEE
ENGAGEMENT
A Holistic Approach for a Truly Entrepreneurial Culture

WHOM DOES EE HELP MORE?
The Employee?
OR
The Company?
Lets vote…

INTEREST IN EE - TREND
Emerged in 2005 and people have not stopped talking about it!
The idea was so good… Marketers copied it!
But, today, customers are more engaged than employees! (E.g., Apple,
Google, Samsung etc who enjoy high customer loyalty!)

WHAT IS CUSTOMER ENGAGEMENT?
Customer engagement (is) the representation of the relationship between
your brand and your customer. A fully engaged customers should be
engaged to the point of advocacy – i.e. they become a ‘fan’ of your brand.
–Ian Golding
ENGAGED CUSTOMERS ARE:
• Evangelists – They refer family and friends to the brand, whether they’re a
purchaser or not. They also consume and re-broadcast brand content to
their social networks.
• Responders – They engage in dialog with a brand, providing constant
feedback.
• Loyal – Unlike purchasers, loyalists stick to one brand in a particular category.
This group is the most likely to exhibit combinations of the other three
characteristics.
http://blog.accessdevelopment.com/what-is-the-definition-of-customer-engagement

ENGAGEMENT
• Engagement (is) the
representation of the
relationship between your
company / brand and the
subject.
• They become a ‘fan’ of
your brand / company
• They are motivated to
contribute to organisational
success
• They are able to enhance
their own sense of well-
being
Top Customer
Engagement
Companies
1. Apple
2. AT&T
3. Hyundai
4. Ford
5. Avis
6. Domino’s
7. Dunkin’
8. Google
9. Konica Minolta
10.Discover
11.NFL
Top Employee
Engagement
Companies
1. ABC Supply Co., Inc.
2. Indus Towers
3. Adena Health System
4. Intermountain
Healthcare
5. Adventist Health
System
6. Krungsri
7. ANN, Inc.
8. Lakeland Regional
Health
9. Bank Central Asia
10.LS Travel Retail (NA)
(Gallup Poll-2014)

WHAT IS EMPLOYEE ENGAGEMENT?
A workplace approach designed to ensure
that employees are:
• committed to their organisation's goals and values,
• motivated to contribute [actively] to organisational success,
and
• are able to enhance their own sense of well-being (self-
interest).
Source: www.engageforsuccess.org/about/what-is-employee-engagement/

HEALTH OF EMPLOYEE ENGAGEMENT
• Gallup research indicates that more than 70 percent of
employees in the typical company are “not engaged” or
“not actively disengaged.”
• 2014 Trends in Global Employee Engagement – Aon Hewitt
• It was 84 percent in 2012!
• So we can draw some comfort that it is improving

EXPERT COMMENTS ON EE
• Employee engagement does not mean employee happiness. Someone might be
happy at work, but that doesn’t necessarily mean they are working hard,
productively on behalf of the organization. While company game rooms, free
massages and Friday keg parties are fun–and may be beneficial for other reasons–
making employees happy is different from making them engaged.
• Employee engagement doesn’t mean employee satisfaction. Many companies
have “employee satisfaction” surveys and executives talk about “employee
satisfaction”, but the bar is set too low. A satisfied employee might show up for her
daily 9-to-5 without complaint. But that same “satisfied” employee might not go the
extra effort on her own, and she’ll probably take the headhunter’s call luring her
away with a 10% bump in pay. Satisfied isn’t enough.
Kevin Kruse. Forbes

• Real employee engagement means that employees are maximizing
their value to the organization.
• The innovators, the game changers, the industry disruptors can win the
talent war in the short term through reputation.
• They do this through a strong culture that is driven by strong
reputation, performance orientation and leadership excellence.
• 2014 Trends in Global Employee Engagement – Aon Hewitt

• Employee engagement is the emotional commitment the employee
has to the organization and its goals.
• When employees care—when they are engaged—they use discretionary
effort.
• This means the engaged computer programmer works overtime when
needed, without being asked. This means the engaged retail clerk picks up
the trash on the store floor, even if the boss isn’t watching. This means the TSA
(Airport Security) agent will pull a bag suspicious bag to be searched, even if
it’s the last bag on their shift.
Kevin Kruse. Forbes

EMPLOYEE ENGAGEMENT INSIGHTS
Real employee engagement happens when
employees maximize their (own) value to the organization.
1. EE can never be bought, it must be earned
2. The culture you create or the culture you destroy will determine the
success of your business
3. Helping people to gain back time is powerful
4. EE is as demanding as it is nurturing
5. A Caring boss is still the greatest driver
• If employees cannot sit down and talk to their boss, it doesn’t matter how many
anonymous surveys you do.
6. Discover your company purpose (Inc. Magazine)
7. Don’t sweat anonymous reviews(Inc. Magazine)

THE VARIOUS LEVERS OF EE
Source: 2014 Trends in Global Employee Engagement – Aon

… NEED TO FOCUS ON ALL THREE LEGS OF A BUSINESS – THE TRIAD!
• Pampering
employees without
considering their
overall needs and
requirements.
(Copy cats)
Costs go up, leading to management raising prices
of goods / services, leading to customers leaving.
Employees see the game and quickly learn to
“hack” the system.
Benefits become “commodity”, easily copied by
competition, thus losing the power to retain talent.
• Too focused on
improving
company
productivity (only)
• Pampering
employees,
without focus on
cost
CAUSES FOR EE INITIATIVES FAILING

THE BUSINESS TRIAD
1. Share Holder
2. Employee
3. Customer

THE TRIAD RELATIONSHIP
• Share holder (Founder) gives idea, invests
money, controls business
• Share holder invites Employees to partner
with him to implement the idea.
• Share Holder + Employees partner to serve
Customer
– AND SHARE THE RISK – REWARD.
• Share Holder provides Risk, Money and
Time…. For uncertain, but higher benefits
(dividends, capital appreciation)
• Employee provides Time and
Commitment…. For guaranteed, but lower
benefits (Salary, bonus)
Share Holders Employees
Customer
$$

THE TRIAD AND EE PURPOSE
The primary purpose of EE is to increase the profits from customers through an
Enhanced level of Partnership & Trust, by:
• Exploiting new avenues of serving customers,
• Learning new skills and
• Innovation …and
Sharing the additional profits gained, from such efforts.
The onus of setting up such a new, less structured arrangement lies with the
Share Holders – represented by the Leadership of the company.
This arrangement will be acceptable to the employees only if it addresses
the WIIFM for the employee uniquely, perfectly. When it does, it results in EE!

ENTREPRENEURIAL CULTURE
• Such enhancement of the Partnership (EE) works best when the Employees
behave as agents of the Share Holders, representing the Share Holders
interests in every way.
• Such alignment of interests results in Employees behaving as Share Holders
themselves; when they take “ownership” of the responsibilities assigned to
them. This is Employee Engagement at its best!
• In other words EE occurs best when Employees act as Share holders or
“Entrepreneurs” themselves.
• This is what is called Entrepreneurial Culture!

ENTREPRENEURIAL CULTURE
• No wonder companies like Google, Facebook and Twitter are re-defining
Employee Engagement – even HR policies in general!
The close involvement of Owners / Founders in start-ups and their
working together with employees through the toughest times in a
company’s history gives both employees & owners a unique
perspective into each others’ lives and aspirations.
This is key to developing high EE and an Entrepreneurial culture in such
businesses!

WHY ENTREPRENEURSHIP?
o The only strategy that can respond effectively to wildly
changing situations
o The only strategy that can mobilize the skills, talent,
intellect, emotion and imagination of not just the owner
but that of an entire team.
o The only strategy that was born when Business was born,
and will probably last till Business, as we know it, does !

WHY ENTREPRENEURSHIP?
Policies, systems & procedures, whether consciously put in place by
Management, or evolving naturally, are covert motivators of people.
They influence people’s attitudes and skills to create your corporate
culture.
Changing work practices will improve performance and lead to a more
positive culture. Leadership therefore needs to work these four levers
(3P-T);
1. People: hiring, training & compensation
2. Policies & systems: Org structure, HR, Finance, Approvals
3. Processes & procedures: Paper work, communications
4. Technology: Adoption, standardization, reliance (vs parallel)

A HOLISTIC APPROACH TO EE
• Understanding basic business
reality. - The Business Triad
• What is the mutual relationship of
The Triad?
• A holistic, Entrepreneurial
approach that harmonises all
stake holder requirements at the
same time.
A Win-Win for the Traid

ELEMENTS OF ENTREPRENEURIAL CULTURE
o Through extensive research including 70+ interviews we have
distilled nine elements of Entrepreneurship: “The Entrepreneurisms”“The Entrepreneurisms”“The Entrepreneurisms”“The Entrepreneurisms”
The Entrepreneurisms have been developed through
a combination of Analytics & Huristics.
It is also important to note that not all elements are
found in all entrepreneurs.
1. Self Efficacy
2. Risk Taking
3. Passion
4. Learning
5. Realism
6. Persuasiveness
7. Opportunism
8. Innovation
9. Energy / Action Bias

CORPORATISMS THAT HURT EE?
o Bureaucracy
o Silos of knowledge
o Low trust
o “Not Invented Here”
o Delays
o Indecision
o Lack of recognition
o Lack of ownership
o Weak HRM
o Poor employee feedback
o Corridors of influence
o Weak performance management
o Long Approval cycles
o Limits of authority
o Compliance
o “Holy-cows”
o Paperwork
o Illicit / Spurious reporting lines
o Conservative – not willing to try
o CYA to stay out of trouble
o Low aspirations
o Unrealistic goals
Do you discuss these in Board
room / C-suite?

BENEFITS OF ENTREPRENEURIAL EE
o Respond to market changes faster
o Establish trial-feedback loop
o Passionate committed employees
o Focused teams
o Advocating customers
o Continuous product development
o Tolerance for failure
o Exponential growth
o Super normal profits
Control &Control &Control &Control &
VerificationVerificationVerificationVerification
FunctionalFunctionalFunctionalFunctional
InterventionsInterventionsInterventionsInterventions
CXOCXOCXOCXO
WorkoutWorkoutWorkoutWorkout
The BoardThe BoardThe BoardThe Board
WorkoutWorkoutWorkoutWorkout

DEVELOPING THE TEN ES IN YOUR BUSINESS
Prepare:
• Agree Operational Aim
• Determine scope
• Form Executive Team
• Agree Milestones
Understand Context:
• Meet the Heads
• Meet the Mavens
• Identify pain areas
• Collect data Diagnose:
• Agree AccuPoints
• Identify Focus Areas
• Develop solution concepts
Design Solution:
• Agree on Interventions
• Detail solutions
• Study impact
• Pilot
Implement:
• Get Pilot feedback
• Modify solution
• Roll out
• Institutionalize

THANK YOU!
QUESTIONS?
Srikrishna Vadrevu
sri@sigmax-e.com

WHY EE?
• Engaged Employees lead to…
• higher service, quality, and productivity, which leads to…
• higher customer satisfaction, which leads to…
• increased sales (repeat business and referrals), which leads to…
• higher levels of profit, which leads to…
• higher shareholder returns(i.e., stock price)
“To win in the marketplace you must first win in the workplace.” Employee
engagement is the key to activating a high performing workforce.
Doug Conant, Former CEO, Campbell’s Soup,

WHY EE?
• Engaged employees lead to better business outcomes.
• Companies with engaged workers have 6% higher net profit
margins
Towers Perrin research
• Engaged companies have five times higher shareholder returns
over five years.
Kenexa research
The bottom line is that, better employee engagement leads to a
happier workplace!
Sri Vadrevu

2014 TRENDS IN GLOBAL EMPLOYEE
ENGAGEMENT – AON HEWITT

The rising engagement
of employees as they
age is clearly a function
of who needs whom
more!
Higher engagement of
employees in
Engineering / Production
is due to sharing a vision
for a product, while
other functions are more
commoditized across
companies.

Higher engagement of
employees at the Highest and
Lowest Levels of Management
Engineering / Production is
due to sharing a vision for a
product, the company /
interaction with end
customers while other
functions are more
commoditized across
companies.
Best employer companies
drive higher engagement,
revenue growth and
shareholder value

THE VARIABLES & THEIR STRUCTURE
C = Change
D = Dissatisfaction with present;
V = Vision of what is possible;
F = First, concrete steps towards the vision;
R = Resistance
-- David Gleicher
C = (D x V x F) > R

Please call us for a discussion, if
you have any questions on this
proposal.
Srikrishna Vadrevu
Email: sri@sigmax-e.com
+601-2221-2553
www.sigmax-e.com
:
Please consider the environment before printing this document
Srikrishna Vadrevu
http://operations-excellence.blogspot.com/Blog
Google Maps: http://goo.gl/maps/IIrYs
CONTACT

Employee Engagement

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