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Monetizing Engagement

Stanley Labovitz, CEOStan@Infotool-online.com

1-866-616-5552www.surveytelligence.com

All rights reserved, 2012

“If your engagement survey process doesn’t move your organization toward positive change, then somewhere along

the way you have missed a step”

POSITIVE CHANGE HAPPENS WITH ENGAGEMENT

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Engagement and the Bottom line

A 50% spread in observed performance

Companies with high levels of People

engagement improved 19.2%

Companies with low levels of People

engagement declined 32.7% Towers Watson

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Engagement and the Bottom line

The growth rate of organizations with engagement scores in

the top quartile was 2.6 times greater than organizations with below average scores.

Gallup

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Growth/Competitiveness

Engaged people are consistently more productive, profitable, safer, healthier, and

87% less likely to leave their employer.

Corporate Leadership Council

Engagement and the Bottom line

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Productivity

Want More?

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HEALDSBURG, CA, May 16, 2012

Reporting from the 2012 ASTD Conference (American Society for Training & Development):Annual losses in lost productivity from ‘actively

disengaged’ employees have risen to $328 billion.

The study compared the attitudes of ‘engaged employees’ – those who work with passion and feel connected to the

company; ‘not-engaged employees’ – unhappy employees who put time, but not energy or passion into their work; and ‘actively disengaged employees’ – employees who

are not just unhappy, but are actively acting out their unhappiness.

Still Not Convinced?

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• Businesses with more engaged employees have 51% higher productivity (Harter, J.K., Schmidt, F.L., & HayesT.L., Psychology, 2002 Vol. 87, No. 2)

• Businesses with higher engagement have 9% higher shareholder returns (Towers Watson, 2009)

• Companies with the most effective employee communication have 47% higher shareholder returns over the last five years (Towers Watson, 2010)

• Engaged employees outperform disengaged employees by 20-28% (The Conference Board)

• Organizations with engaged employees showed a 19% increase in operating income over a 12-month period, compared to a 33% decrease in companies with disengaged employees (Towers Perrin, 2008)

How about now?

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• Employer understanding of the business strategy and how their work contributes to company performance is one of the top drivers of engagement (The Conference Board, 2006)

• Almost 2/3 of all employees are 33% as productive as they could be because they don’t understand what they are being asked to do (The Conference Board, 2006)

• 80% of employees with a high degree of trust in management are committed to the organization, compared with 25% of employees with a low degree of trust (Center for Creative Leadership)

• In organizations with highly engaged employees the share prices rose by an average of 16%compared with an industry average of 6% (Serota Consulting, 2005)

• Highly engaged employees have less absence days – in average 3 to 5 days

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Engagement is one of those key Building blocks to profitability; a prerequisite to aligning your Organization to your customer

Dr. George Labovitz, Power of Alignment, Wiley 1998

Why Intertwine Engagement and

Alignment?Sustained Growth & Profit are

achieved by creating consistent alignment between “engaged”

people, AND “the business drivers” of customers, strategy and process.

Dr. George Labovitz, Power of Alignment

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Steps to Implement Engagement

and Alignment

Creatin

g

Transfo

rmatio

n

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Engagement is

culture

Alignment Is business

ImplementationIs hard

Profit

is at hand

Managers are key

“Organizations themselves need to break the gridlock of an existing culture

cycle and re-energize the people to move forward in the right direction!”

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Implementation Needs

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Managers/Supervisors Managers Control the Implementation

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People Managers Energize

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Leadership Impact on the organization

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How do you MEASURE

engagement?

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Trust and Integrity

Growth Opportunity

Pride in the organization

Relationship with Leader

Line of Sight

Nature of work

Co Worker Relationship

Personal Development

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ALIGNMENT•Communications

•Organizational pride

•Innovation

•Process

•Performance Management

•Customer Focus

•Leadership Development

•Loyalty

•Visionary Leadership

•Technology

•Great Place to Work

ENGAGEMENT

InfoTool’s Measurement System

The Engagement/Alignment Survey

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8 EngagementMeasures

12 AlignmentMeasures

Survey asked: Overall, I feel we have undergone a positive change that has improved my work

conditions : 3 selections : A Great Deal, Maybe, Not Really

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A GREAT DEAL:“Great Place to work”

High Score 88

Overall Engagement-75

Overall, I feel we have undergone a positive change that has improved my

work conditions

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NOT REALLY

“A Great Place to Work”-Low Score

of 61

Overall Engagement-48

InfoTool Survey EngineAmazingly Insightful

See Actions forEach

Workgroup

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Infotool’s Engagement & Alignment Analysis• Strength and Weakness reports for every

manager, department and job function• Performance variations• Birdseye view of culture• Action planning by importance measures• Unlimited demographic slicing• Aggregate and intersect demographic

groups

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George Labovitz: Expert in Organization Dynamics

Dr. Labovitz is the Founder and CEO of Organizational Dynamics, Inc. (ODI). He counsels corporate executives on organizational alignment and integration strategies and quality management. He is also professor of management and organizational behavior at Boston University's School of Management. He has published or contributed to management articles in Fortune, the Wall Street Journal, Quality Progress, and Quality Management in Healthcare. He is also co-author of Making Quality Work (Harper Business, 1993) and The Power of Alignment (John Wiley & Sons, Inc. 1997).

ODI was chosen by the United States Postal Service as the Quality Supplier Award Winner in the small service company category from among 60,000 suppliers. ODI's healthcare division provides Total Quality Management services to over 240 medical centers in the U.S. and Europe.

George has been a Distinguished Visiting Lecturer at the Naval, Air Force and Army War Colleges. He holds a BS from Boston University, an MBA from Boston College, and a Ph.D. from Ohio State University.

George will assist in the interpretation of Results in the Reporting stages as required.

Snapshot:

•Pioneer in OD

•Dr. Labovitz has presented keynote addresses to diverse audiences throughout the world, including

the American Hospital Association, the American College of Healthcare Executive and The Healthcare Forum.

Who We Are – InfoTool’s Team

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Stan Labovitz: Technology and Engagement Consultant

Stanley Labovitz, the architect and CEO of the InfoTool Organizational Analysis Tool, and was an active OD consultant for 15 years with Organizational Dynamics, Inc (ODI). In 2002, Labovitz founded InfoTool with a vision of providing leadership the tools to effective manage the journey to alignment. InfoTool has represented fortune 1000 companies, worldwide, with locations in five countries and has become recognized as an expert in Change Management.

Stan has employed InfoTool with Fortune 100 companies, including the Agriculture Department and the Business Transformation Agency of the DOD, Staples, Genzyme Corporation, and many others. Throughout the world, much of his work has been related to employee engagement, customer focused change behaviours, leadership and alignment including those for energy companies such as Pengrowth Oil, Projex and EPRI. He is considered as an expert by his peers in survey design, analysis and culture change.

Sted Marketing Research has obtained a license to use InfoTool under its Dynamifx name, and has crafted a set of employment engagement questions, accompanied by a codified approach to analysis and reporting.

Stan will serve as the Program’s Technology and Training Consultant, at both the Survey Process and Execution and Results Reporting stages.

Snapshot:

•Architect of the InfoTool

•Extensive experience in all aspects of employment engagement studies

•Consulted to client end-users on the tool’s execution, analytics and implementation

Who We Are – InfoTool’s Team

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