What Does Good Look - Institute for Public Relations · 2015-03-20 · • Having...

Copyright © 2014 by The Institute for Public Relations

“What Does Good Look Like?”

A Quantitative Study of Best-in-Class Practices

in Employee Communication

19 March 2015Hong Kong


Before We Get into Our Research: “Why Should I Care?”

Copyright © 2014 by The Institute for Public Relations 3

“How Do ‘Engaged’ Companies Perform?”


Engaged Companies Outperform Their Competition

• Customer Ratings

• Profitability

• Productivity

• Turnover

• Safety Incidents

• Shrinkage (theft)

• Absenteeism

• Patient Safety Incidents

• Quality (defects)

4

Gallup 2012 meta-analysis of Q12 findings from 49,928 work units, including nearly 1.4 million employees


Predicting Key Performance Outcomes

• Work units in top quartile outperformed bottom-quartile units by 10 percent on customer ratings, 22 percent in profitability, 21 percent in productivity

• Work units in top quartile saw significantly lower turnover (35 percent), shrinkage (28 percent), absenteeism (37 percent), fewer safety incidents (48 percent), patient safety incidents (41 percent), and quality defects (41 percent)

• Companies with an average of 9.3 engaged employees for every actively disengaged employee experienced 147 percent higher EPS compared with competitors

• Companies with an average of 2.6 engaged employees for every actively disengaged employee, in contrast, experienced 2 percent lower EPS compared with their competition

5

Gallup 2012 meta-analysis of Q12 findings from 49,928 work units, including nearly 1.4 million employees

Copyright © 2014 by The Institute for Public Relations 6Harvard Business Review: The Impact of Employee Engagement on Performance; 2013

Where Best-in-Class Companies Concentrate Their Efforts


Discover

• Best-in-class practicesfor organizational communication.

• Includes ID of structures, strategies, tools, and techniques

Quantify

• Survey of global organizations on i.c. topics

• Measure key principles, priorities

• Utilization of specific approaches, strategies, tools, or techniques.

Assess

• Analysis and theme identification

• White paper, infographics

Explore

• Depth interviews withbest-in-class globalinternal communicators

• Identify structure, philosophies, practices

• Identify tools and assetsfor achieving success

Methodology

Objective: Identify best practices for employee communication in an environment that is increasingly globalized, digitized, and empowered


THE QUALITATIVE RESEARCH


Interviews We Conductedto Explore & Assess

• Engaged KRC Research to interview internal communications professionals at 10 world-class corporations

• Companies chosen based on global scope, market leadership and perceived effectiveness in internal communications (frequenters on the most-admired or best-places to work lists, awards)

• There were common practices across the companies – 10 areas were identified as particularly important


Be a business leader

Have line of sight to end-goal when communicating

change

Challenge others to contribute to

growth

Develop a roadmap for

change

Create an internal

stakeholder map

Act strategically with company

leaders

Adopt authentic voice

Utilize line of sight managers

Dedicated content strategy

Measure!


“OLD MODEL”

Activity, Even as Focused on Employee Satisfaction, Motivation

Communicated for the Corporation

Employees Viewed as a Homogenous Audience

Awareness is Key Measure

Boundary-Driven: Siloed, Two-Way Information Flow

Insight: Tectonic Movement is Reshaping Organizational Communication

CREATING VALUE IN TODAY’S ENVIRONMENT

Optimized Corporation’s Ability to Communicate

Analytics-Based, Business Performance, Outcomes and Strategy Socialization

Segmented; Targeted for Influence, Engagement , Social Prowess

Discussion, Dialogue, and Debate

Boundary-Less: Platform-Agnostic, Integrated, “Democratized,” Multi-Way,

Peer-to-Peer Channels


The Return: Innate Belief in the Importance of Employee Communication

Informed employee

Knowledgeable about company

Feels engaged, and valued

Is more productive

Longer tenuredBecomes

an ambassador


Tools & Resources• Periodic assessment of employee perceptions • Have “listening posts” • Having a roadmap of organizational changes and developments • Having an internal stakeholder map • Having internal social media sites/platform

Organizational Structure• Internal communications lead having oversight of all key internal

communications in the total organization • Team leaders participate in total organization strategy session • Having an internal communications team leader report to the leader of

corporate communications, or of the company

The 22 Factors of Success



Practices• Keeping employees informed in a timely manner • Keeping employees informed of the context of current issues • Keeping employees apprised of organizational change and

development • Adopting an authentic voice for all internal communications • Communicating impact of organizational change • Utilizing messaging platforms consistently • Having measurements/metrics to benchmark strategies • Gauge employee engagement • Utilizing line of sight managers as communicators • Challenging the next generation of employees to contribute to

organizational growth



Mindset

• An organization should be able to clearly and concisely articulate the purpose and value of change for its future success and for employees

• Internal communicators should be seen as business people, with an expertise in communications

• Strong internal communications will have a positive return for the total organization that need not be proven at every juncture

• There are shared viewpoints up and down the chain of command about the total organization and the way to

communicate


Insight: Challenges for Internal

Communication

Perceived efficacy in internal communication is limited

Most – but not all - of the “Best in Class Factors” are widely recognized as important

Few of these factors are widely implemented

Organizational issues impact effectiveness


What’s Important?

13 of the 22 tested factors (the basics) are seen as important

• Timely and comprehensive communications

• Consistent and authentic voice

• Consistent channels

• Monitor employee perceptions

• Supportive organizational structure

5 of the factors (strategic & innovative) not as important, including

• Using line of sight managers as communicators

• Internal stakeholder map

• Internal social media sites/platforms


Who’s Doing What?

Few factors in place among more than 75% of respondents, even among those factors that are more widely seen as important

• Most, though not all, say that their organization keeps employees informed in a timely manner, and keeps employees informed of the issues at hand

• Most, though not all, have internal communications lead reporting to the corporate communications leader

Fewer (50% – 70%) implement remaining “basic” internal communications practices

Even less (30% – 50%) using “strategic” practices


Tools and Resources Organizational Structure Practices

Gap Analysis: Belief vs. Action

87%

76%

69%

64%

44%

86% 84% 82%93% 88%

87% 87%83%

81%

74% 72%71%

62%

91%

74%71%

47%

68%

29% 27%35%

40%

52%

40%

72%76% 71%

65%62%

68%

56%

31%

40%

49%

23%

32%

19%

26%

16%

Emp

loye

e p

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ep

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so

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ove

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om

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icat

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s le

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Top 2 Box Important Currently Have

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*Largest Gap: 59%

*Smallest Gap: 4%

Total Average Gap: 30.73%

Usi

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to b

ench

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org

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ople

Mindset

(75%) (75%)


Perceived Importance of Actions

Mostly linear relationship between perceived importance of factors and tendency to practice

Three quadrants on perceptual analysis

• Low implementation, low importance

• High implementation, high importance. Although these are factors where implementation and importance are highest, importance still outweighs usage.

• Low implementation, high importance: These are the factors where implementation is far below a generally high recognized importance.


Utilize ‘listening posts’ Organizational roadmap of changes

Internal stakeholder map

Internal social media sites/platforms

Internal leader oversees all key internal communications activities

Communications leaders participate in organizational strategy sessions

Communications leader reports to the leader of corporate communications

Keeping employees informed in a timely fashion

Inform employeesabout current issues

Keep employees apprised of organizational change and

development

Adopting an authentic voice for the organization

Communicating impact of organizational change on employees

Utilizing messaging platforms consistently

Using measurements and metrics to benchmark strategies

Employing analytics to regularly gauge employee engagement

Utilizing 'line-of-sight' managers as communicators

Next generation of employees contribute to organizational growth

Organization can articulate the value of change for its future

Internal communicators need to be seen as business people

Strong internal communications provide positive return

Shared viewpoints up and down chain of command

10%

20%

30%

40%

50%

60%

70%

80%

40% 50% 60% 70% 80% 90% 100%

% C

urr

en

tly H

ave

(A

lre

ad

y I

mp

lem

en

ted

)

% Top 2 Box Important

Perceptual Map (Importance vs. Behavior)

High implementation; low importance High implementation; high importance

Low implementation; low importance Low implementation; high importance

Employee perceptionsassessment


Implications

Give Voice

• When performance lags what you know as important, give voice to why it matters

• Move from agreeing, to articulating the value to the organization

Question

• When factors of important don’t feel relevant, pause and ask yourself why

• Is the focus too much on ROI?

• Is it just too difficultto sell-in?

Look Beyond Challenges

• If its implementation or building a casefor a factor of importance that is the biggest challenge, look beyond it at the true value and virtue of the factor

Share

• If a factor of importance has a positive yield foryour company,share.

• In sharing we discover what we don’t know today, and create good examples for inspiring future growth

Copyright © 2014 by The Institute for Public Relations 24

What Will ‘Good’ Look Like?

3

4

5

OCT NOV DEC JAN FEB MAR

4.14

4.14

3.85

4.20

3.68

3 3.5 4 4.5 5

3: Open Forums (Steve Covey, Denny Mooney, Eric Tech)

2: Employee Town Hall Meetings (IT

and Springfield Assembly Plant)

1: It’s Your Business (Lean)

1: Quarterly Results Call

1: Drive to Deliver Dashboard Update

StarPower Meetings to Date: 17

Leaders (L7+)

WHAT’S ON PEOPLE’S MINDS?

TOP INBRIEF ARTICLES

EVENTS

“Navistar has more work to do to return the company to profitability. This means we may have more layoffs

and cost cutting measures in the near

future.” (3/13/14)

“Navistar has too many employees and more people

will have to leave before the company is sized ‘to

cost.’” (3/18/14)

“We need to spend less and do more with less. We

are still not the right size as a company.” (3/18/14)

“Elimination of waste and the effective utilization of

people and resources will help Navistar grow our

business and become profitable.” (3/18/14)

“Lean principles have been executed in other

organizations and provided positive results. Lean is

about making small improvements which will lead to

greater gain down the road. Everyone can participate

in lean… ‘take out waste.’” (3/18/14)

“We are trying to change things. Hopefully for the

better.” (3/17/14)

First Quarter Perspectives: CEO Troy Clarke Urges Employees to Work with

Urgency to Deliver Improved Performance

Navistar Reports First Quarter Results

Second Annual Lewis B. Campbell Quality

Award: Call for Entries

First-Quarter Drive to Deliver Dashboard

Update

Employees Express Pride in Navistar and

Hope for the Future in New VideoData and comments taken from 6 event surveys with 166 responses in March 2014 .

ADDITIONAL NOTES

HOT TOPICS

Employee MoraleEmployees are frustrated – and is showing in both survey

results and other communications channels. There is a

level of boldness in employee comments that we haven’t

seen before.

Layoff Rumors

Rumors about looming job cuts are rampant and also

impacting employee morale. Employees want to know

what future cuts mean for them and their departments.

Lean

Employees are hearing the message about becoming

lean, but looking for more direction on how to do so.

• First Quarter Results were announced in March, and an updated Drive to Deliver dashboard was released.

• Lean has continued to roll out through various

communications channels. In April, we will focus on telling lean success stories through a series of short video

clips.

CONFIDENCE IN LEADERSHIP

(ALL EMPLOYEES)

5.0 scale

3.7 (FEB)

EMPLOYEE UNDERSTANDING

OF STRATEGY

All employees

EMPLOYEE CONFIDENCE IN STRATEGY5.0 scale

Leaders (L7+): No data for MarchAll employees: Currently 3.7/5.0

5.0 scale

Employee Communications Dashboard: March 2014

3.4 (MAR)February leader data includes IPD L7+ only

NoleaderdataforMarchNo leader data and limited employee data for December.

February data includes IPD

L7+ only

February

January

March

February

JanuaryNo leader data for March.


Commission on Organizational Communication

Commission Members

• Keith Burton, Principal, Grayson Emmett Partners (Chair)• Dr. Bruce Berger, Professor Emeritus - Advertising & Public Relations,

University of Alabama• Gary Grates, Principal, W2O Group• Peter Debreceny, Consultant, Gagen MacDonald• Frank Ovaitt, President & CEO, Institute for Public Relations

Research Steering Committee

• Chris Olson, Assistant Vice President - Internal Communication, USAA

• Ruth Weber Kelley, Head - Global Internal Communication, Cargill• Lisa Hartenberger, Director - Corporate Communications, Navistar• Tyler Durham, Partner & Managing Director, Ketchum Change• Rebecca Edwards, Chief Communications Officer, GE Oil & Gas


THANK YOU

What Does Good Look - Institute for Public Relations · 2015-03-20 · • Having...

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