Category Archives: Engagement

Engagement, Motivation & Work

Enterprise engagement has been a frequently-addressed topic in this blog, and a recent post shared some of our Partners in Improvement group’s thoughts on an important element of an engagement strategy — rewards and recognition.

In that post, several points were made about being careful with the use of extrinsic, or monetary rewards as motivators.

To add some additional perspective,  the Enterprise Engagement Alliance shared information from a past New York Times column “The Secret of Effective Motivation,” in which authors Amy Wrzesniewski, Associate Professor of Organizational Behavior at the Yale School of Management, and Barry Schwartz, Professor of Psychology at Swarthmore College, suggest that the most effective type of motivation in terms of actual long-term results is action based on an internal motive — that is, “the pleasure derived from the activity and results themselves rather than from an instrumental motive such as the desire for fame or money.”

“Helping people focus on the meaning and impact of their work, rather than on, say, the financial returns it will bring, may be the best way to improve not only the quality of their work but also… their financial success,” the article states.

This viewpoint is well-aligned with our “Engagement Around the Work” approach, which involves specific steps for achieving a
culture of engagement that is linked with team productivity, performance, and job satisfaction.

This approach incorporates a clear objective of engaging people around the one thing they all have in common—and the one thing that can bring about increased profitability and a sustainable competitive edge—the work.

As Bill Conway often said, “It’s all about the work!”

Read “Engagement Around the Work” white paper.

Rewards & Recognition Best Practices

Recent posts have focused on “rewards and recognition,” a crucial component of enterprise engagement.

We shared a range of perspectives based on discussions with our Partners in Improvement groups, who agreed that these programs are typically designed to achieve one of three objectives:

  • increased commitment
  • increased desired behavior or motivation
  • increased measurable results

Based on their collective experience the Partners identified the following eight criteria or best practices for an effective rewards and recognition program:

  1. Keep it simple: The most cost effective method of all seemed to be the simple thank you note. The notes, if done well, are widely appreciated and cost nothing more than the time and attention to set up a system of information when an individual or team deserved a thank you.
  2. Be very careful about extrinsic rewards: these can cause more trouble than benefits. Extrinsic rewards require very clear metrics, auditing, and careful, even elaborate design to ensure a focus on the rewarded metrics will not lead to deterioration of other facets of the organization. Obviously, this makes it hard to ‘keep it simple.’
  3. Be specific: it is much more effective to recognize a team or a person for a specific result or accomplishment than for generally doing a good job.
  4. Be timely: the closer in time the reward or recognition is to the accomplishment being recognized, the more impactful it will be.
  5. Be consistent: Be sure that you respond to comparable accomplishments in comparable ways.
  6. Be authentic: Sincerity in words of appreciation and praise are essential to an effective system of reward and recognition.
  7. Communicate widely: Publicity helps extend the celebration and communicates widely what is valued by the organization.
  8. Use team rewards to encourage better organization-wide results.

Rewards & Recognition Part 3: Comparisons

As discussed in our previous two posts, “Rewards & Recognition” programs can vary in a many ways.

For example some are very inexpensive to run, and others are costly; some are geared toward recognizing individuals, while others focus on rewarding teams.

Similarly, the reasons for implementing a program can differ a great deal, depending upon an organization’s situation and objectives; and as our Partners in Improvement groups discussed, the outcomes — both intended and otherwise — can also vary.

During our Partners’ discussions three distinct types of programs were compared:

  1. “After-the-Fact” rewards vs. “Defined Benefit” awards:
    Some organizations conduct recognition and reward programs that are designed to ‘catch people’ doing the right things, such as a “caught in the act” program that recognizes individuals by posting a card describing their accomplishments on a wall in the lunch room, or a “Bravo” program for peer-to-peer recognition, where recipients are awarded small gifts — in the $5-10 range.  These systems are designed to encourage certain behaviors and accomplishments — but an individual may or may not
    be one of the lucky ones ‘caught.’ Not every worthy act is rewarded, but the belief is that the program reinforces the
    desired behavior overall.

    Alternatively, some awards are planned in advance, such as an organization that gives one day off to everyone after every 250,000 hours without a lost time accident, or another program that promised a raise to all employees if first pass yield metrics were achieved.  Along the same lines, one organization implemented a partially-defined reward: the reward was defined, the criteria were defined, but there would be only one winner and the identity of that winner would remain uncertain until the end. This prize, in this case, was a one year lease on a BMW for the manager with the best results. The success of this program depended on being well-hyped in advance so that every manager improves his or her results in order to try to win. However, the size of the prize being so significant caused some dissatisfaction among some of the managers who didn’t win.

    Conclusions: both the individual and team concepts are effective. If a “one winner” approach is taken it is best to keep the value of the single award on the lower-end as opposed to awarding one “big” prize such as the above-referenced car lease.

  2. Team Awards vs. Individual Rewards:
    The primary advantage of individual recognition is the precision of being able to reward and recognize a person who best exemplifies the behavior that the organization wants to encourage.  Consider that, on any team, there are bound to be stronger and weaker contributors. The weaker contributors on a strong team are, perhaps, unfairly recognized for contributions they may not have made. Furthermore, the stronger contributors to a weak team are unfairly under-recognized and may become less motivated.  Individual rewards and recognition enable organizations to reward the people they believe most deserve it.

    However, often the success of an operational or project team as a whole is far more important to an organization’s success than the actions of individuals. Recognizing operational teams as well as temporary teams for their contributions encourages effective teamwork, helping one another to get further faster. It takes a mix of talents and personalities to build an effective team and while a team may have one or two stars, the success may also be due to the down-to-earth individual who keeps the group focused or the individual with the easy personality that defuses tensions and egos in order to keep the group working effectively.  Our research into employee engagement suggests that being viewed as an important member of a team is also very motivating. Indeed, in Daniel Pink’s book Drive, The Surprising Truth About What Motivates Us, he describes the pleasure people receive from being part of something bigger: a team, a movement, a purpose.

    Conclusions: While the benefits associated with individual rewards were recognized, the vast majority of our Partners expressed strong support for the benefits of team rewards and recognition.

  3. Intrinsic vs. Extrinsic Rewards:
    Intrinsic rewards are those that strive to produce a sense of appreciation, belonging, satisfaction or contributing to a higher purpose. Some rewards are free, such as a thank you note, a parking space, or putting a person or team’s picture in the newsletter. Some intrinsic rewards may cost the giver something,
    such as buying a team lunch, giving everyone a day off, and making a contribution to a charity of the person or team’s choice, but these rewards are non-monetary and are not designed to appeal to a person’s acquisitiveness. Rather they emphasize the organization’s appreciation for a person or team’s contribution.

    By contrast, monetary rewards have a simple and clear cash value for the recipient. For example, a grocery chain gives $50 to any individual accumulating six ‘stars’ which are awarded by coworkers or customers to recognize exceptional service. The main advantage of monetary rewards is that, whether the amount is large or small, public or private, before or after
    the fact, one can expect that all recipients will value the reward because the recipient can spend it however they choose.

    Conclusions: While appreciating the clear nature of extrinsic rewards, nearly all of our Partners had a cautionary tale about unintended consequences; and the bigger the reward, the bigger the problems. Unlike rewards aimed at intrinsic motivation, the problem with extrinsic rewards was not that they might fail to influence the recipients, but rather that the outcomes were often entirely different than intended. For example, the organizations that implemented large monetary rewards, such as the BMW lease, found they attracted attention and inspired avarice as intended. Many people really wanted to win them. In fact, a good many people felt they deserved to win them. The unintended results included resentment, accusations of unfairness, and powerful disincentives for people to help one another to raise the overall performance of the organization. Team morale took a serious hit as well.  As one of the Partners put it, “An extrinsic reward seems to create 1 winner and 99 losers.”

Ultimately, our Partners agreed upon a list of best practices, which we will share in our next post.

Rewards & Recognition – Part 1: Variation

We recently attended the “Engagement World” expo in Galveston, Texas, at which all aspects of enterprise engagement were discussed including ISO 10018 and  standardized engagement plans.

Simply stated, to be truly effective, an engagement plan must contain certain elements, including a method for rewarding and recognizing  desired behaviors and outcomes.

This fact was spelled-out in a prior post, noting that Rewards & Recognition is an important component of a comprehensive engagement plan. In addition, our Partners in Improvement discussed this fact, and shared some interesting insights regarding various ways of recognizing and rewarding people, and the variation in results.

For example,  some, like a service award, are very predictable; if you reach an anniversary, you are likely to receive one. But many other recognition programs include an element of surprise when exceptional service is spotted.

Some rewards cost the organization little or nothing — such as a thank you note or a special parking place. Others are quite costly, such as a one year lease on a car, or an upscale ‘President’s Award.’

Some are for teams, and others are for individuals. Many of the rewards and recognition are after the fact, while some are announced and hyped in advance in order to encourage people to try for them.

The amazing variety allowed us to explore the benefits and unexpected drawbacks of the different types of rewards and recognition. But despite the variety of implementations, the objectives were really quite simple. An organization implements a reward and recognition program for one of these three reasons:

  1. To increase the recipient’s satisfaction and happiness with the organization and his or her role within it
  2. To motivate continuation of certain types of behaviors and accomplishments
  3. To motivate people to work to achieve certain measurable results

We’ll take a closer look at these differing approaches in our next few posts, and share some surprising data points regarding outcomes and predictability.

Engagement & CI Correlation

In one of last year’s posts we noted that, while enterprise engagement has emerged as a key objective in today’s business world, a surprising number of organizations have no formalized engagement strategy.

At this year’s Engagement World Conference in Galveston, this fact was once again recognized, along with several other connections between enterprise engagement and Continuous Improvement (CI).

For one, an ad-hoc approach is almost never effective.

Whether attempting to engage a workforce or drive continuous improvement, a formalized plan with clearly-stated objectives and measures is required.

Similarly, without the buy-in and support of top management, engagement and improvement efforts alike are bound to fail… they will not become the “cultural way,” and instead will simply peter-out as priorities shift.

Another correlation is the importance of quantification. Just as a CI project requires us to quantify waste and the gains our effort will generate, a successful engagement initiative will include the calculation of an anticipated return on investment or ROI once objectives are achieved.

Finally, just as ISO 9001 helped bring-about the use of more standard procedures in CI, ISO 10018 will now encourage organizations to standardize their engagement efforts. 

As noted in our previous post, the emergence of these new standards brings into focus both process improvement and quality people management/engagement, both of which are necessary to achieve and sustain high levels of quality and performance.

 

 

ISO Quality Management Principles – Balancing Process & People

As you may know, in 2015 the International Organization for Standardization (ISO) issued an update to its widely followed 9001 standards. 

This update was not, at the time, officially part of the 9001 standards, but it included the addition of new Quality Management Principles outlining, according to an Engagement Strategies Media (ESM) article, the fundamental conditions necessary for an organization to sustain high levels of quality and performance.

The Quality Management Principles are:
  1. Customer focus
  2. Leadership
  3. Engagement of people
  4. Process approach
  5. Improvement
  6. Evidence-based decision-making
  7. Relationship management

As noted in the article, these principles focus on both “process” and “people/engagement.” As the article goes on to suggest, this balanced focus is clearly necessary to achieve and sustain high levels of quality and performance.

Read the full article…

ISO 10018 Certification: Engagement Standards!

The University of Texas Medical Branch (UTMB) will kick-off the creation of the world’s first academic Enterprise Engagement (EE) Innovation Center at Engagement World, May 7-9 in Galveston, the UTMB’s headquarters city.

The Innovation Center is a division of UTMB’s International Center for Enterprise Engagement at TheICEE.org, which was founded last year to manage the first ISO 10018 Quality People Management certification and support the creation of standards in all areas of engagement.

“Our mission is to create a formal academic and business discipline and a vibrant marketplace that provides expertise and solutions to help organizations engage all key audiences, customers, patients, distribution partners, employees, vendors and communities in a more efficient way based on a better return-on-investment,” said Dr. Ron McKinley, the Center’s co-founder and President.

Lee S. Webster, co-founder of ICEE, added, “We have seen what ISO 9001 has done for Quality Management, and we’re confident a systematic approach based on standards can do the same for Quality People Management.”

Read the full article… 

Free Engagement ROI Calculator

The Enterprise Engagement Alliance recently announced that their Enterprise Engagement Academy has created a free ROI Calculator that is available to any organization at no cost (see link below).

The tool can be used to track the potential return-on-investment of an engagement initiative, and also provides a report showing the estimated impact of improving employee engagement.

According to Allan Schweyer, Curriculum Director for the Enterprise Engagement Academy and founder of the TMLU professional learning platform, the ROI Calculator is based on “very conservative estimates of the impact of lower and higher levels of engagement created by the Center for Talent Solutions.”

Full article…ROI calculator

Outstanding at Execution!

In a previous post we noted that an organization can have an excellent strategy, but fail to execute effectively on that strategy, and went on to share some discussion on the 4 Disciplines of Execution, a book written by Sean Covey, Chris McChesney, and Jim Huling.

If you truly want to achieve maximum results from your improvement effort, it can only be done through implementing and sustaining a plan.

Even when people excel at identifying major opportunities for improvement, if they don’t execute, they don’t make gains. In our work with hundreds of organizations, we have observed that the most successful are outstanding at execution.

If you’d like to improve your organization’s ability to implement strategic plans, here are five key areas of focus that can help:

  1. Get senior leaders to become actively involved
  2. Identify clear project plans for delivering results, including measures and milestones
  3. Engage team members and stakeholders
  4. Set expectations and consequences — both positive and negative
  5. Develop an organized structure and an activity / accomplishment reporting plan – communication matters!

Managing the Cost of Disengaged Workers

An earlier post summarized the real costs associated with disengaged workers, which is close to $500 billion per year based on research by glassdoor.com, the Enterprise Engagement Alliance (EEA), and others.

Wow!

Fortunately, there are proactive steps that can be taken to avoid these costs and the collateral damage to team morale and brand that is a regular side-effect.

Based on research and data shared by the EEA and The Chartered Institute of Personnel and Development, the following five steps can drive employee engagement, and reduce the number of disengaged workers and the associated costs:

  1. Enhanced recruiting and on-boarding — The first steps involve the inclusion of the organization’s mission and vision into interviewing conversations, and a more conscious effort to identify and hire people with aligned goals. Adding a mentor program to the on-boarding process helps new hires assimilate
    faster so they became more productive in less time as well.
    Enabling people to achieve higher levels of productivity and success early-on promotes greater engagement levels, and reduces first-year attrition rates. Early churn tends to demoralize
    everyone, so in addition to reducing re-hiring and re-training costs, the costs associated with negativity within the existing workforce are also reduced.
  2. Consistent performance management and communication — People need to have meaning in their work, and understand how their work aligns with organizational objectives. This communication works best when systematized as part of structured, proactive approach to performance management.
  3. Learning and development — A young, fast-rising junior executive had been working at a large bank for just over six years. When he was asked about his job and how he felt about it he said, “The job’s OK.” His lack of enthusiasm was evident, and when pressed to say more he added, “Well, I’m not really learning much anymore.” He went on to confirm that he was not truly engaged, and that he did not make much of an extra or discretionary effort, which engaged workers regularly make. Forward thinking
    business leaders understand that the path to sustainable employee engagement is to drive productivity, and to do so through ongoing education and empowerment.
  4. Recognition and rewards — Recognizing and rewarding employees is not a new concept, but if the goal is to engage people rather than simply acknowledge milestones (such as length of service), then the approach must be aligned with what is meaningful to each recipient.
  5. Flexibility and work/life balance — Employer/employee relationships, expectations, and engagement criteria have evolved significantly over the past decade. Data from a PwC survey of 44,000 workers who had become less engaged indicated that “71% said their jobs interfered with their personal lives, and 70% said they wanted to be able to work from home.”
    Employees can also become disengaged when they feel their managers only care about the bottom line. More than one-third of U.S. employees (39%) don’t believe their bosses encourage them to take allotted vacation days, and almost half (45%) say their bosses don’t help them disconnect from work
    while on vacation, according to a Randstad survey.

Read the full article…