a new book from the reputation institute - cipr...
TRANSCRIPT
A new book from the Reputation Institute
Dr. Cees B.M. van Riel, Co-founder & Vice Chairman Reputation Institute
Key Points Illustrated in THE ALIGNMENT FACTOR
1. What is Alignment?
2. This implies a shift in attitude for most companies, respecting the necessity to balance
its own interests with the demands of stakeholders that they depend upon
3. Getting employees aligned and involved around strategy requires implementing four
managerial efforts:
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan
Phase IV:
Tracking Progress
Alignment with what?
Who needs to be aligned?
Desired behaviour?
Benefits employees?
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan
Tracking progress in
supportive employee
behaviour
Inventory of bottlenecks
and opportunities in
achieving aligned
behaviour
Phase IV:
Tracking Progress
Tracking progress in
supportive employee
behavior
Introducing KPIs targets
Increase performance
Build
ing alig
ned O
rganis
ation
Linking Alignment KPI’s to
performance
Hard wired and soft wired
initiatives
Communication support
Alignment with what?
• What is the core of the corporate strategy?
• Which four building blocks matter most?
• For Telefonica this implies:
Who needs to be aligned?
• Who has to be aligned first? Everybody? Only the Top? One division
specifically?
• To be determined based on nature business problem: which employees
matter most in solving the business challenge?
What is the desired behavior? Firm Perspective versus Employee Perspective
The purple promise
“I will make every FedEx experience outstanding”
What does FedEx want couriers to do?
• What does the Access strategy mean for them?
• Making every FedEx experience outstanding
• How many packages a day?
• 10 instead of 12 if you have to spent
extra time justified by service
• What is acceptable when delivering extra service?
• Explaining mistakes, solving problems caused
by the firm, etc.
• What is not acceptable?
• Reducing the amount of deliveries and still
not providing added value in service
What drives a courier?
• I receive respect for what I am doing from
my firm
• Customers love FedEx and that increases
respect for me too
• I have career opportunties within FedEx if I
encourage customer satisfaction
Desired behaviour at a Utility company (example)
A non-aligned mechanic:
- Considers sustainability to be just
another catch phrase
- Is not willing to take any extra
training
- Continuous working based on
demanded output by his manager
(e.g. number of customer visits per
day)
An aligned mechanic
- Believes in the Sustainability
strategy
- Acknowledges that (s)he needs
training to keep up-to-date with the
latest technologies and ensures
his/her own future by doing so
- Explains sustainable energy to
customers
- Is motivated by customer
satisfaction
Step 1: Know before you go
Alignment with what?
Alignment with whom?
How to assess desired
behavior?
20% has a negative
perception of the strategy,
they will never support the
strategy
10% has a positive
perception of the strategy,
they fully support the
strategy
70% is indecisive whether
to support the strategy,
they need to be persuaded
Step 2: Revealing Support & Resistance
In general…. employees will have three types of
reactions towards a new strategy…
... however, you have to know who is in which group.
So, measure the facts by using the RepTrak™ Alignment Monitor
- Intranet-based survey among a
stratified sample in the firm.
- Aimed at (1) revealing the degree of
employee support for the strategy.
- Aimed at (2) showcasing what works
and what doesn’t work regarding
informing, motivating and capability
development.
1
2
3
Aligned Behaviour can be expressed on a scale from 0 to 100. Firms scoring above 65 are already winners,
while companies that score below 50 are in serious problems
1
2
The alignment number is impacted by three communication
efforts: informing, motivating and capability development
1
2
3
Are the strategy and/or core values sufficiently communicated by internal media? There
should be consistency in the content of messages (themed messages).
Are the strategy and/or core values sufficiently cascaded through all hierarchical layers? Core
messages should be trickled down using hierarchical layers, e.g. through cascade meetings.
Does management engage in dialogue about the strategy and/or the values? There should
be explicit attention for cross-division dialogue.
Are employees recognized for contributing to the strategy and/or living up to the values? The
strategy should be integrated into individual appraisal & reward systems.
Are employees provided with the right capabilities for contributing to the strategy and/or living
up to the values? Employees should be empowered to do what they need to do.
Results Overall (an example)
Score differences ≥ 2.3 are significant at a 95% confidence level
Maintain (70)
Room for improvement (50-70)
Immediate action (<50)
Familiarity:
70% of employees
60% of employees
Building Trust 2011
Familiarity 86.6%
Drivers of alignment
Media & Messaging 42.2
Cascading 55.9
Dialogue 44.1
Capability Development 47.6
Recognition & Reward 33.7
Strategic alignment
Aligned behavior Building Trust 58.2
Extra insights: Indicators alignment
Attitude 61.0
Delivering Growth 2011
Familiarity 95.8%
Drivers of alignment
Media & Messaging 49.9
Cascading 66.7
Dialogue 61.0
Capability Development 52.8
Recognition & Reward 43.2
Strategic alignment
Aligned behavior Delivering growth 62.7
Extra insights: Indicators alignment
Attitude 62.5
Individual Empowerment 2011
Familiarity 90.6%
Drivers of alignment
Media & Messaging 39.7
Cascading 61.9
Dialogue 52.5
Capability Development 49.2
Recognition & Reward 38.0
Strategic alignment
Aligned behavior Individual
Empowerment52.8
Extra insights: Indicators alignment
Attitude 53.1
• Familiarity of the Business Priorities is high.
• Alignment is highest for Increasing Sales, while employees are the least aligned to Individual Empowerment.
• Media & Messaging and Recognition & Reward are both drivers that receive the lowest scores across all three
Business Priorities.
• Overall attitude is lowest towards Individual Empowerment.
Trusted Partner Empowerment Increase sales
………this tool will enable you to reveal support & resistance
at a nuanced level
Are employees aligned with the major goals?
How can Philips improve alignment?
How can Philips reach the employee groups?
Which employee groups are aligned and which are not?
Goals Alignment Employee groups Focus of action Channels
Vision 2010
Low alignment
Moderate awareness,
understanding & attitude
Divisions: All low aligned
except Corporate Center
Job levels: All low aligned
Goal-specific dialogue
Capability development
Local manager
Division manager
Corporate media:
- Intranet division
- Intranet global
- Town meetings
- Internet
Becoming
Market-driven
Moderate alignment
High awareness &
positive attitude
Divisions: Low aligned MS,
IPS, Design, AT-I-PIC-R and
Other.
Job levels: Low aligned at
Operation and at Professional/
Technical level
Goal-specific dialogue
Capability development
Time
Alig
nm
ent
Launching the
Strategy
Implementing
Hard tools
Implementing
Soft tools
Step 3: ACTION PLAN Implementing the right tools at the right moment
Assessing strategic options using the gathered intelligence
Negotiation Confrontation
Consulting
• Presentations and negotiations with Unions
• Presentations and negotiations with Working
Council(s)
Mirroring
• Unavoidable exposure by internal messaging
• Using Corporate Ads to persuade internal
audiences
• Allocating Coaches to key managers aimed at
adjusting role behavior
Consensus
• Town Hall meetings
• Management Meetings
• Jam Sessions
Power Play
• New organisational structures and decision
making procedures
• Appointing new managers in key roles
• Capability development in Internal Training
Programmes
• New appraisal rules
Step 3: Balancing hard and soft wired initiatives
Step 3: Who does what?
Senior Management
Sell their vision it to the rest of the
organisation
Marketing
Expose employees to external
campaigns
Communication & HR
Internal communication Who does
what?
Facilitate vertical and
horizontal communication
Information Technology
Use reporting & appraisals format forcing
alignment
Accounting
Examination of historical performance,
using RepTrak Alignment Monitor over
two to three years (past)
1
2 3
2012 2013 2014
2012 2013 2014
Extrapolating KPI’s on aligned
behavior for the next years (future) Extrapolating key drivers of
alignment for next years (future)
Realized
2011Goal 2012 Goal 2013 Goal 2014
Manager leads by example 55.3 56.9 58.5 60.0
Realized
2011Goal 2012 Goal 2013 Goal 2014
Regular conversations manager 49.6 51.1 52.6 54.1
Realized
2011Goal 2012 Goal 2013 Goal 2014
Sufficient authorization 51.3 52.9 54.5 56.1
Sufficient recognition 55.3 56.9 58.5 60.1
Sufficient rewarded 47.3 48.9 50.5 52.1
KPIs INFORMING
KPIs CAPABILITY DEVELOPMENT
KPIs MOTIVATING
Realized
2011Goal 2012 Goal 2013 Goal 2014
Alignment 55.2 56.8 58.4 60.0
KPI EMPLOYEE ALIGNMENT
Step 4: Key Performance Indicators
Introducing KPI’s using RepTrak™Alignment Monitor
Phase I:
Know Before You Go
Phase II:
Revealing
Support & Resistance
Phase III:
Action Plan
In summary
1. These projects are (mostly) led from internal comms/HR
2. Aligned employees increase performance substantially
3. The Alignment process provides ROI to your efforts – tied up to strategy.
4. Building and maintaining an aligned workforce requires a four step approach
Phase IV:
Tracking Progress