The Business-Focused Employee Survey. Scott Mondore, Ph.D.

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1 The Business-Focused Employee Survey Scott Mondore, Ph.D.

2 Presenter Bio Scott Mondore, Ph.D. Scott has over 15 years of experience in the areas of strategy, talent management, measurement, customer experience and organizational development. He has internal and consulting experience across a variety of industries including transportation, healthcare, manufacturing, pharmaceuticals, utilities, and hospitality. Scott is currently a managing partner of Strategic Management Decisions (SMD). Before SMD, he served as East Region President for Morehead Associates, a healthcare HR company. Before joining Morehead, Scott worked as a Corporate Strategy Director at Maersk, Inc. He also worked as an Organizational Effectiveness Leader at UPS, focusing on employee assessment and measurement as well working as a consultant to large and small organizations in both the private and public sector. He is the co-author of Business-Focused HR and Investing in What Matters: Linking Employees to Business Outcomes (published by SHRM) and won the Walker Award from HR People & Strategy (HRPS) for the article that best advances state-of-the-art human resource practices. Scott holds a master's degree and doctorate in industrial/organizational psychology from the University of Georgia.

3 Learning Objectives Provide practical tips for surveys for design, administration, reporting, and action planning Show the direct business impact of employee surveys Present business impact data to management Create reports that drive action Integrate survey data into systemic-level and local action How to link your survey reports to LMS training Practical Survey Execution Tips

4 SMD Publications Published by SHRM (2009) #3 Bestseller for 2011 Published by SHRM (2011) HR People & Strategy has awarded SMD The Walker Prize for their article on Talent Management Analytics. The Walker Award is given to the article that best advances state-of-the-art thinking and practices in human resources. "

5 About SMD: Driving Business Results Through Talent Management Our Platform Implement Talent Management processes based on analytics, linking people to critical business outcomes Partner with our clients to create and execute people strategies that drive business outcomes and maximize ROI Connecting Employees to Business Results HR Strategy & Planning Human Capital Measurement Talent Management Leadership Development Executive Assessment & Coaching Organizational Effectiveness Our Results Linkage of Talent Management (e.g., engagement survey results, training, performance ratings, competency assessments) to a variety of business outcomes: Operations Metrics (e.g., operating margin) Financial Metrics (e.g., sales dollars, productivity) Customer Satisfaction Turnover/Retention Employee Safety Significant bottom-line improvements and return-on-investment for our clients.

6 Agenda Building the right survey for your organization Analyzing and presenting data at all levels New Opportunities: Linking results to business outcomes Risk Assessments: Union, Turnover Link the survey to your learning management system Integrate survey data with succession planning, leadership development and individual development

7 What We Are Hearing We can t make the business case to do an employee survey. I ve had trouble in the past getting managers to do anything with the results. In the past, the survey didn t tell us much beyond what we already knew. Our in-house survey causes us to spend more time running reports than taking action. Survey vendors are very expensive.

8 Key Questions to Ask Does the survey platform: Tell me exactly what to work on to drive business outcomes? Tell me what drives turnover risk? Tell me what drives unionization risk? Tell me where high-performers have concerns? Link directly to my LMS to drive immediate action? Integrate with succession planning analytics? Show me where I need to focus leadership development efforts?

9 Typical Survey Approach Vendor provides list of survey items Reporting hierarchy is built into the system How-to survey training conducted Survey launched Survey reports available a few weeks later Reports sent to each manager Manager responsible for communicating results and creating action plans

10 The Business-Focused Survey Approach Understand key business outcomes from the beginning Validated Employee Survey customized to the client Conduct Key Driver Analyses at local levels Create HeatMaps to prioritize actions for all leaders Drive action at systemic and local levels Link survey items directly to your learning management system to immediately start working on results Link survey items directly to your business outcomes Integrate the survey with succession planning, leadership development programs, performance management and individual development plans

11 Building the Right Survey Start with a validated, core set of items Customize them as needed Delete irrelevant items Add items that are in focus for the organization Safety Innovation Sense of Urgency items maximum Survey Fatigue is a consequence Cover org, leader and employee issues Anonymity: set a group minimum to receive a report (typically 5 or more)

12 Include Items at All Levels of the Organization Organization XYZ provides me with a safe place to work. I am satisfied with the total compensation (salary, benefits, retirement, etc.) that I receive from this organization. Leader I receive useful feedback from my immediate supervisor. My immediate supervisor provides recognition for team members who do a good job. Individual Employee My job makes good use of my skills and abilities. I have the tools and resources to do my job well.

13 Open-Ended Items Use a maximum of 3 open-ended items Two open-ended items is best What do you like best about this organization? If you could change one thing about this organization, what would it be? What ideas do you have to help us XXXX? Summarize open-ended responses for leaders Be cautious of giving actual comments to leaders (anonymity and skewing results)

14 Using Benchmark/Normative Data Benchmark/Normative data can be useful for comparison Don t just look at organizations that are exactly like yours Select norms that make sense (functional, geographic, industry, high-performing) Key drivers of your business outcomes are still the primary focus of the survey

15 Key Reminder Employee Engagement is NOT a business outcome but it can DRIVE business outcomes

16 Assess Business Impact: Business Partner RoadMap TM 1. Determine Critical Outcomes 6. Measure & Adjust 2. Create Cross- Functional Data Team Business Partner Roadmap TM 5. Build Program & Execute 3. Assess Measures 4. Analyze the Data

17 Linkage Analysis Methodology: Structural Equation Modeling (SEM) Traditional data analysis methods include: Qualitative analysis or gap analysis (strengths/weaknesses) Correlation Regression Advantages of SEM: Allows you to assess multiple independent measures (e.g., competencies) & dependent measures (e.g., sales performance outcomes) simultaneously. Implies causality and allows you to calculate the ROI SEM is commonly used in other industries (e.g., econometrics, market research)

18 Analyzing Your Report: Key Drivers of Business Outcomes What is a HeatMap? A graphical plot that shows the impact of employees attitudes on a key business outcome. Allows leaders to identify attitudes that are key drivers of business results and prioritize improvement efforts in these areas. Performance (Average Rating) Maintain Promote Monitor Focus Level of Impact HeatMap Interpretation 1. Focus: Low Performing AND Key Driver 2. Monitor: Low Performing, Not Key Driver 3. Promote: High Performing, Key Driver 4. Maintain: High Performing, Not Key Driver ANALYZE REVIEW PLAN IMPLEMENT

19 Prioritizing Interventions: Survey HeatMap: Revenue % Effective Performance Linked to Your LMS 69% Impact on Revenue (Beta Weight)

20 Focused Action Planning

21 Linking to Business Outcomes Communication Item-Level Quality Drivers: My manager gives me useful feedback. I can openly express my concerns to management..24*.16* Safety Outcomes Safety Culture Item-Level Safety Driver: My manager puts safety above production. This organization cares about safety. The safety training I receive is effective.

22 Finding Union/Turnover Risk District Name Compensation Career Growth Engagement Communication Manager Relations Change Mgmt NORTH FLORIDA 67% 67% 71% 75% 43% 73% 72% VIRGINIA 67% 93% 100% 53% 80% 60% 90% GULF SOUTH 69% 80% 84% 69% 86% 70% 84% OKLAHOMA 71% 91% 90% 83% 90% 88% 93% NORTHWEST 75% 100% 100% 83% 69% 95% 100% ARKANSAS 77% 83% 58% 86% 84% 88% 81% ILLINOIS 67% 96% 48% 58% 74% 68% 61% EAST CALIFORNIA 57% 61% 38% 45% 64% 60% 63% SOUTH ATLANTIC 77% 55% 49% 82% 75% 58% 61% MICHIGAN 67% 60% 59% 90% 84% 69% 68% OHIO 87% 40% 60% 91% 93% 78% 81% NORTH ATLANTIC 90% 93% 88% 92% 91% 75% 81% MID ATLANTIC 95% 83% 98% 94% 92% 70% 81% NEW JERSEY 92% 90% 48% 93% 98% 72% 81% SOUTH CALIFORNIA 93% 91% 42% 99% 97% 71% 81% CENTRAL PLAINS 99% 90% 88% 88% 93% 68% 81% MINNESOTA 100% 88% 86% 87% 90% 58% 81% SOUTHWEST 60% 87% 85% 88% 88% 88% 81% DESERT VALLEY 65% 93% 84% 89% 94% 88% 81% WASHINGTON 90% 42% 58% 76% 84% 78% 80%

23 Integrate Survey Data for Succession Planning and Leadership Development Utilize the Ready Now Scorecard to Assess Overall Talent Pool Health Key Drivers of Business Outcomes Refer to the scorecard during talent review sessions; incorporate stakeholder ratings of performance and potential to identify true Ready Now talent Assess performance strengths and gaps across the entire talent pool

24 Themes from Open Ended Responses What do you like best about working for this organization? The People Personal Ownership/Involvement; Use of Friendly Work Environment Communication & Teamwork Opportunities for Personal Entrepreneurial Spirit/Improvement Focus Strong Leadership Treatment/Appreciation/Recognition Mission/Vision; Corporate Image Customer Focus Flexible/Dynamic Organizational Structure 7.6% 6.4% 4.9% 3.1% 2.9% 2.5% 15.6% 14.0% 12.9% 11.7% 10.3% 0.0% 5.0% 10.0% 15.0% 20.0% Percent of Responses

25 Maximizing Impact Prioritizing opportunities and maximizing return on investment Low Scoring Items/ Comments Local Drivers of Outcomes Org. Wide Drivers Of Outcomes

26 Improving Behaviors Across the Organization Systemic Interventions Organization Organization Post- Assessment support should inform all levels: Manager Region Rep Region Rep Region Rep System Manager Sales Rep Rep Rep Rep Individual Rep Rep Rep Individual Develop. Plans

27 Practical Tips: Pre-Survey Webinar Training for Managers: Overview of the Survey Local Survey Champions Reinforce anonymity/confidentiality Announcement Letter from the CEO Logistics for employees to participate (not everyone works at a computer) Prize raffle to enhance participation Set goal for participation especially if it is your first survey Set up organizational hierarchy well in advance Survey translations: use internal resources to save cost and increase accuracy

28 Practical Tips: During the Survey Define the key terms in the survey Senior management: Consider the leaders of the organization; the executive team. Maximum of 5-7 questions per screen page Help employees with any special needs Distribute work unit passwords/logins to local managers Send out multiple reminders Keep survey open for two weeks and add time if needed Send out participation reports every few days

29 Practical Tips: Post-Survey Get results back in two weeks maximum Share high-level results with employees (CEO letter) Provide executive overview presentation for senior leaders Have senior leaders create systemic interventions based on key drivers of business outcomes Provide local managers with reports, toolsand agendas to conduct roll-out meetings Post-survey training webinar for all managers on how to read and analyze the reports

30 Practical Tips: Post-Survey Provide agendas and exercises for local managers to conduct focus group meetings Require action plans and deadlines for their creation Assist managers who score very low with conducting focus group meetings Involve employees in creating local action plans Make sure the vendor provides actionable tips for each survey category

31 Follow-up Exercise Determine a specific item that best illustrates the issue. For example: My immediate supervisor treats everyone in my work group fairly. On a flipchart, write the word Stop, Start, and Continue on 3 different pages Instruct the group to write the specific behaviors that need to be stopped, started, and continued to improve the specific issue There should be no local management present during the data gathering

32 Practical Tips Employee survey strategy should focus on driving business outcomes Although the analysis is complicated make the results practical and action-oriented Reach out to key stakeholders and gather outcome data early in the process Demonstrate the linkage to all levels in the organization Show the value of engagement and communicate to all levels of the organization Link engagement data to more than one business outcome, if possible Norms are fine, but linkage to business outcomes will have more impact and ROI in your organization

33 Timing Step Identify target items Identify business outcomes Review organizational hierarchy Finalize survey tool and pre-launch training Launch and administer Deliver reports and feedback training Present systemic analysis Total Time Time to Complete 2 weeks 2-3 weeks 2-3 weeks 1-2 weeks 2 weeks 9-11 weeks

34 What We Have Covered How to create the right survey instrument for your organization How to analyze survey data for maximum impact How to present data to managers to create action and make the process easy Driving impact at the individual and local level Integrating data to make best strategic decisions Practical Tips for Effective Execution

35 To Contact Us: Scott Mondore, Ph.D. Managing Partner (404)

36 Discount Offer Purchase either of Scott Mondore s books, Business-Focused HR or Investing in What Matters and receive 10% off! Enter promo code WC-3407K at checkout to receive your discount. Please note, this offer cannot be combined with any other offers and expires August 31, 2012.

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