Business Impact of ERGs Learning from the 2014 ERG Leadership Summit

Transcription

1 Business Impact of ERGs Learning from the 2014 ERG Leadership Summit Theresa M. Welbourne, PhD FirsTier Banks Distinguished Professor of Business, University of Nebraska-Lincoln; Affiliated Research Scientist, Center for Effective Organizations President and CEO, eepulse, Inc. Alan K. Nevel and Heather Hoefer Thermo Fisher Scientific 1

2 ERG Leadership Summit Idea sprouted in 2005 Started with a small idea while working with General Motors Launched in 2012 with help of Mattel, Inc. and Corning Continued in 2013 supported by Mattel and Sony Pictures 2014 partners include Mattel, Sony Pictures and Direct TV 2

3 Summit Themes 2012 ERG leaders as leaders of not just ERGs but within the business overall. Deep study of identity in organizations Focus on ERGs as sources of innovation 2014 ERGs to BRGs with a research study adding the ERG impact model What s next? ERG networks, ERG internal team dynamics, ERGs impacting the business one person at a time, ERGs as communities of practices for any size organization 3

4 Data-Driven Event Beyond Speculation ERG leaders develop and learn data-driven leadership 4

5 Data Focuses on Impact Outcomes Used in ERG Studies Employee Energy at Work Validated, predicts firm, individual and team performance Energy = ability to do work ERG delivers to members Confidence Performance Context for ERG success Support for ERG work Data provided to each participating company Benchmark data made available to all participants Data used for learning and research 5

6 Energy measured Measuring every Energy year; what we learned next Big Data Research Supporting This Work Today s energy exertion level at work. At what energy exertion level are you at your best? 6

7 Energy is Higher for ERG Leaders and Members It gives me more hope put a little bit more stress and pressure on me which raises my energy level to almost too high at times. The interaction makes me feel more involved with my company. It makes me feel more connected, affiliated and not alone. 7

8 Direction is Key ERG leaders can help shape employee sense of purpose; help improve both energy and direction, which means higher firm level performance Managers learn to be energy directors Employees learn to optimize and direct their own energy at work 8

9 Identity and Innovation ERG members identify strongly with core job, organization and being an innovator ERGs build trust which supports risk taking and innovation ERG members are taking their confidence back to the job and innovating in their core job 9

10 What s the Business Impact? Impact Model Introducing the ERG Impact Model for the 2014 Summit ERG Impact Model Talent Management Culture Individual Company External Stakeholders My professional development Great place to work for me Recruiting and selection Inclusive environment Networking outside the company How community views company culture Company Vitality Being more innovative Creating a high performance business environment Improving customer relations 10

11 ERG Summit Survey 1767 overall respondents 593 self-identified as ERG Leaders 1157 self-identified as ERG Non-Leaders 21 companies identified by respondents 8 companies qualified for reports (30 respondents or more) 25 ERGs qualified for reports (30 respondents or more) 11

12 High to Low, Page 1 Highest scores go to the environment for ERGs 12

13 High to Low, Page 2 Lowest score related to the impact of ERGs on the business 13

14 Impact Model Results Individual Company External Stakeholders Talent Management Culture Company Vitality my professional development 2.98 making this a great place to work for me 3.50 helping me be more innovative in my job 2.88 recruiting and selection 2.50 creating a company environment that is inclusive creating a high performance business environment the ability to network with those outside the company 2.85 how outsiders view the culture of my company 3.25 customer relations

15 Results for Energy in 2014 Sample All Participants 1. Using the scale on the left (from 0 to 10), please rate your current energy level at work Using the scale on the left, at what energy level are you at your best? 7.74 Gap: (results of question 1 minus question 2) -.77 Smaller gap is better. Big gap = lost productivity. 15

16 ERG Performance All Participants Meeting Goals and Objectives (0-100 scale) ERG meeting the needs of members (1-5 scale) 3.59 ERG meeting my expectations (1-5 scale) 3.57 ERG doing all they can to achieve goals (1-5 scale) to 5 scale where 1= Strongly Disagree and 5 = Strongly Agree 16

17 Does ERG Impact Matter? ERG Impact (overall score) ERG Performance (1 to 5 scores) Individual Energy at Work Energy Gap (Working energy Optimal energy) 1 (lowest scores overall; 1 to 3.0) (medium level scores; 3.1 to 4) (higher scores; 4.1 to 5) Higher impact leads to higher scores on ERG performance and personal performance at work. 17

18 Which Areas of Impact Matter Most? Impact variable (from ERG impact model examined how each variable impacted both ERG performance overall and employee performance (using energy metric) Impact ERG Performance (ranking of those significant listed) Inclusive environment #1 #2 Making great place to work for me #2 Helping me be more innovative #3 Creating high performance business #4 #1 Professional development #5 How outsiders view culture #6 #3 Recruiting and selection #4 Items shaded green impact both ERG and employee performance Impact Employee Performance (energy) Lowest rated item overall 18

19 Impact Model Results Highlighted boxes scores have significant impact on both ERG and employee performance Individual Company External Stakeholders Talent Management Culture Company Vitality my professional development 2.98 making this a great place to work for me 3.50 helping me be more innovative in my job 2.88 recruiting and selection 2.50 creating a company environment that is inclusive creating a high performance business environment the ability to network with those outside the company 2.85 how outsiders view the culture of my company 3.25 customer relations

20 Impact Does Not Come Easy Creating ERGs, Developing the Structure, Engaging Members, Helping Leaders, Integrating into the Firm Overall Next we learn from a senior executive and colleague who are on their own journey Alan K. Nevel & Heather Hoefer 20

21 Diversity is the What + Inclusion is the How = Better Results! Employee Engagement Performance Quality Productivity Innovation Defining Diversity & Inclusion Diversity: The variety in human characteristics Inclusion: The act of embracing and leveraging those characteristics to achieve successful business outcomes Personality PRIMARY ORGANIZATIONAL SECONDARY Age/ Generation Family Status Race CULTURAL Gender Identity Role in the Company Education Religion Language/Accent Thinking Style Authority Views Level Industry Location Sexual Orientation Appearance Tenure Gender Working Style Ethnicity Physical Ability Geographic Location Union Affiliation Communication Style Work Experience Relationship Status Division/Department Management Status Individual or Team Flexible or Structured Body Language Personal Space Time Being or Doing Traditions/ Observances Competition or Cooperation Conflict Resolution Preferences

22 Our Company s Diversity and Inclusion Statement Diversity and Inclusion at Thermo Fisher Scientific is integral to our growth strategy, and aligns with our 4I Values of Integrity, Intensity, Innovation, and Involvement. At Thermo Fisher Scientific, Diversity and Inclusion means creating a global environment that embraces and leverages the unique qualities and differences of our individual employees. Creating a global environment that values diversity allows us to continue to bring cutting-edge thinking to the workplace that will drive Innovation, which is critical to fulfilling our mission to enable our customers to make the world healthier, cleaner, and safer and achieving our vision for 2020.

23 Global Diversity and Inclusion Strategic Plan Goal Strategy Success Thermo Fisher viewed as diversity champion; Early career diversity recruiting is a fundamental aspect of how we add talent; Leaders actively mentoring rising stars; Increased Go-To performance levels; Become one of the World s Most Admired Companies by promoting an inclusive culture that encourages full engagement Develop awareness, recruitment and retention tools to reach 2017 goal Develop and communicate a Diversity Statement; Build diversity and inclusion awareness, through Valuing Diversity & Inclusion at Thermo Fisher campaign; Initiate a Global Diversity and Inclusion Council led by a diversity expert; Link diversity and inclusion to the PMD process, the leadership model, and leadership goals; Create a set of diversity and inclusion measures, not limited to representation. Defined as exiting the plan period with: Significantly more diversity across Company leadership; Increase diversity of executive band Diverse perspectives are valued; Top talent from across the globe seek us out; Culture of productivity and innovation.

24 Diversity and Inclusion Roadmap Aligned with our 2020 vision Workstreams: Global D&I Education & Awareness: Increase employee awareness of diversity and inclusion and permanently shift company culture through training, communications and ERGs. Global D&I Council: Support and monitor strategic diversity plan and recommend actions and policy changes Employee Resource Groups: Increase number of company-supported groups of employees drawn together by common characteristics who want to positively impact the company's growth and development by providing a voice of diverse thinking. Recruiting: Expand sourcing strategy to include a more diverse talent pool by building relationships with organizations that value diversity Compliance: Ensure federal government compliance related to employee discrimination and affirmative action laws (includes Global Disability and Race Quotas) NOTE: Transitioning to Employment Law in 2015 Employee Involvement Survey: Achieving our vision to be one of the world s most admired companies depends on the commitment and Involvement of our employees. Foundation Thermo Fisher D&I* Statement developed Develop D&I Strategy and Roadmap Launch Global D&I Council Women s Leadership Conference piloted Develop D&I iconnect web pages Hire Thermo Fisher D&I resource Refine D&I Strategy Launch Valuing Diversity & Inclusion campaign Develop Employee Resource Group(s) Launch Women s and African Heritage ERGs Enhance relationship with STEM programs Integration Develop core group of certified D&I trainers/ facilitators Continue global rollout of Valuing Diversity & Inclusion education and awareness campaign Community and national organization involvement Mentoring /Sponsorship of Women explored Launch Millennials ERG Execute Group level D&I Strategies Launch local/regional ERGs and Councils Develop relationships with strategic external partners Action & Change Develop D&I web page on ThermoFisher.com Launch Veterans ERG Co-develop diversity recruiting strategy (w/ TA) Establish high level metrics and goals Execute enhanced Employee Engagement Survey Conduct workforce representation and retention analysis Global Human Resources practices and policies review Valuing Diversity & Inclusion index developed measured Acceleration Establish Retention programs and policies Drive clear leadership and accountability Site D&I Strategies Internal Reward and Recognition (Inclusion Award) Proactive, consistent and purposeful messaging Visible progress on U.S. Representation efforts recruiting and retention External recognition

25 Intentional Inclusion : The Essence of Our Strategy Subjective Trust Objective Top-Down Personal Leadership awareness, commitment, accountability and mind-shift Diverse personal mentors and coaches, outside normal processes Internal Proactive mentoring, development and access to diverse high performers Creating relationships and development opportunities with wide variety of internal constituents, peers, etc. External Proactive targeted searches or development (internal and external) for open C-Suite and other senior positions Proactive searches and relationship development with external POC in influential positions Influence direct reports and hold accountability for diverse succession planning and pipeline development Familiarity Bottom-Up Focus on current diverse talent Thermo Fisher s development of Hi-Pots Thermo Fisher mentoring of Hi-Pots Thermo Fisher special assignments and rotational development for Hi- Pots Thermo Fisher sponsored and supported employee resource groups and diversity/inclusion councils Thermo Fisher career planning, succession planning, HRR review and PMD process enhancements Focus on new talent Thermo Fisher Talent Acquisition Process enhancements Diverse hiring panels Targeted recruitment and on-boarding External search firms Internal referrals

26 D&I Operating Model Office of Global Diversity & Inclusion Global D&I Council Company Leadership Team Group Presidents & HRVPs Group Level Strategy & Execution Corporate D&I Strategy & Governance Recruiting Supplier Diversity Professional Dev, Mentoring & Retention Education & Awareness Division/Site Leadership Local, Regional & Country Councils* Local D&I Strategy Execution & Governance Women s ERG African Heritage Millennials Veterans Global Employee Resource Groups Greater Boston Pittsburgh Logan India Houston Japan San Francisco Bay Area WFCT Functional / Local / Regional & Country Affiliates *OGD&I provides consultative support and oversight

27 Millennials Employee Resource Group Our Mission The Millennials ERG is committed to making Thermo Fisher Scientific one of the world s most admired companies by fostering communication among generations and promoting a culture in which Millennials are recruited, developed, retained, educated and valued globally. 27

28 Our Accomplishments Webinars Successfully launched ERG in October 2013 Hosted 3 global webinars with ~1600 total registrations and 800+ attendees Millennial Meetups and Local Chapters Hosted Millennial Meetups on 3 continents Created 7 local Millennial ERG chapters of which Pittsburgh, PA and Mumbai, India are the most active Began informal Meet the Leader lunches with the India Leadership Team Senior VP of HR Reverse Mentoring Piloted program in New England and the Bay Area with 26 pairs participating including 6 Corporate Leadership Team members and 1 #selfiechallenge Communications Drove traffic to ERG iconnect page through a variety of content posted weekly i.e. guest blogs, articles, infographics, and TED Talks

29 2015 Strategic Plan: Impact on Thermo Fisher 1. Learning and Development Pilot training workshops targeting Millennials and Managers of Millennials. 2. Communications and Webinars Promote global awareness of the ERG and generational styles. 3. Reverse Mentoring Improve upon and expand pilot program to include new geographies. 4. Millennials ERG Chapters 20 total chapters. Launch additional regional chapters in key employee populations. 5. Social Responsibility Incorporate community service into Millennials ERG chapters. 6. Customer Understanding Lead and partner on projects to better understand needs of Millennial customers.

30 Survey Results Learning and Development Goal 115 Thermo Fisher Responses, roughly 2/3 identifying with Millennials ERG, 1/3 identifying with Women s ERG High Scores My own personal leadership and management skills Top leadership in our company support the ERGs Our organization s senior leadership team overall Our organization s ability to executive on its vision Low Scores Willingness of people within our ERG to devote the time to help ERGs be successful Meeting the needs of ERG members ERGs doing all they can to help achieve their states goals and objectives ERGs are meeting my expectations