BUSINESS IMPACTRELATIONSHIPS BETWEEN LEADERSHIP DEVELOPMENT, EMPLOYEE ENGAGEMENT AND BUSINESS PERFORMANCE

November 6-7, 2014

Zurich

STRIM GROUP OF COMPANIESWHO WE ARE

Many years of experience

as globally acting senior

executives in the design and

implementation of strategies

High quality references as

executive coaches with a focus

on sales, marketing, finance and

HR - partly in international

environments

Scientific foundation, balance

of internal and external evidence

due to various teaching and

research activities

Specialists in SWP and (HR/

Workforce/Sales) Analytics –

partly with the involvement

of Outsourcing

Development of innovative

business models with a constant

view on culture and

leadership

Empathy in large organizations

connected with down-to-earth-

ness and expertise in

execution (conventions)

November 7, 2014 2xxx

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTLINKAGES TO BUSINESS IMPACT

November 7, 2014 3In accordance with: Nick Bontis und Jac Fitz-Enz, The Conference Board, Mark A.

Huselid, Brian E. Becker, Richard W. Beatty, J.+P. Phillips

Business

Perfor-

mance

Resignation

Risk

R2=44,1%

-0,372

Managerial

Leadership

TrainingHuman

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Knowledge

Generation

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Motivation Risk

Failure and Availability Risk

Occupational

Skill Risk

Integrity

Risk

Alignment

Risk

0,506

0,442

0,530 0,326 0,360

R2=68,2%

R2=28,5%

R2=28,5%

0,751

0,3580,307

0,475

0,327

-0,337

0,439

0,456 0,4290,394

0,430

0,285 -0,233

0,262

Retention

of Key

People

Human

Capital

Depletion

Employee

Engage-

ment Employee

BehaviorCustomer

Impression

Return on Assets

Operating Margin

Revenue Growth

Customer

Retention

A compelling Place to Work A compelling Place to Shop A compelling Place to Invest

Customer

Service

(Talent)

Retention

The Genetic Code of

Highly Engaging Cultures:

Eight Elements

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTLINKAGES TO BUSINESS IMPACT – BACKUP 1/2

Business

Perfor-

mance

Resignation

Risk

R2=44,1%

-0,372

Managerial

Leadership

TrainingHuman

Capital

Relational

Capital

Structural

Capital

Human

Capital

Effectiven.

Knowledge

Generation

Employee

Engage-

ment

Employee

Satisfaction

Employee

Motivation

Value

Alignment

Strategy

Execution*

Knowledge

Integration

Knowledge

Sharing

Motivation Risk

Failure and Availability Risk

Occupational

Skill Risk

Integrity

Risk

Alignment

Risk

0,506

0,442

0,530 0,326 0,360

R2=68,2%

R2=28,5%

R2=28,5%

0,751

0,3580,307

0,475

0,327

-0,337

0,439

0,456 0,4290,394

0,430

0,285 -0,233

0,262

Retention

of Key

People

Human

Capital

Depletion

Employee

BehaviorCustomer

Impression

Return on Assets

Operating Margin

Revenue Growth

Customer

Retention

A compelling Place to Work A compelling Place to Shop A compelling Place to Invest

November 7, 2014 4Source: Investing in People. Financial Impact of Human Resource Initiatives. Wayne

Cascio and John Boudreau. P. 143 ff.

Employee Attitudes

Greater

Engagement

Greater Job

Satisfaction

Greater Proba-

bility of Retention

1. Job

challenge

and learning

2. Climate of

respect

3. Autonomy

4. Work-life fit

5. Economic

security

6. Supervisor

task support

1. Economic

security

2. Work-life fit

3. Climate of

respect

4. Autonomy

5. Supervisor

task support

6. Job

challenge

and learning

1. Economic

security

2. Work-life fit

3. Job

challenge

and learning

4. Supervisor

task support

5. Autonomy

6. Climate of

respect

Effective Workplace Dimensions That Significantly Predicted

Work Outcomes

Source: Investing in People. Financial Impact of Human Resource Initiatives. Wayne Cascio

and John Boudreau. P. 146

Greater

Engagement

Greater Job

Satisfaction

Greater Proba-

bility of Retention

1. Job

challenge

and learning

2. Climate of

respect

3. Autonomy

4. Work-life fit

5. Economic

security

6. Supervisor

task support

1. Economic

security

2. Work-life fit

3. Climate of

respect

4. Autonomy

5. Supervisor

task support

6. Job

challenge

and learning

1. Economic

security

2. Work-life fit

3. Job

challenge

and learning

4. Supervisor

task support

5. Autonomy

6. Climate of

respect

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTELEMENTS OF ENGAGEMENT CULTURE

November 7, 2014 24

1Alignment of business strategy

and engagement strategy

2An organizational philosophy that

emphasizes a core purpose

3Formal programs and policies that

drive the engagement agenda

4Open, proactive, leader-driven

communication about engagement

5A workplace and organizational

structure that promotes collaboration

6A regular cadence for assessment

and follow-up

7Leaders who are expected and

empowered to build engagement

8Demonstration of the business

impact of engagement

The Genetic Code of

Highly Engaging Cultures:

Eight Elements

Employee

Engage-

ment

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTWHAT NOW

November 7, 2014 25

82%of executives said that they

have an engagement

strategy in place

of executives already

focus on engagement for

more than five years

of executives (only!) link

performance and results

to engagement

of executives indicated that

one to three people were

dedicated to engagement

on a full-time basis

52%

49% 29%

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTDRIVERS OF ENGAGEMENT

November 7, 2014 26

Trust and

integrity

Nature of

the job

Indiv. &

company

perfor-

mance

Career

growth

oppor-

tunities

Pride

about the

company

Coworkers

/team

members

Employee

develop-

ment

Personal

relation-

ships

Pay

fairness

Personal

influence

Well-being

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTEMPLOYEE SEGMENTATION

November 7, 2014 27Source: PwC. Managing people in a changing world. Key trends in human capital, a global

perspective, 2010; TCB. Managing the Total Workforce. Bringing Contingent Labor …, 2013.

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTBUSINESS IMPACT

November 7, 2014 28

Below Average Average Engaged Highly Engaged

► Relationship between

engagement and critical

business outcomes is not

understood

► Track record of ignoring

engagement data and

employee feedback

► Relationship between

engagement and critical

business outcomes is

assumed

► Inconsistent track record

of learning and creating

change based on

engagement data and

employee feedback

► Relationship between

engagement and critical

business outcomes is

explored on a regular

basis

► Organization has a track

record of learning and

creating change based

on engagement data and

employee feedback

► Organization has a track

record of improving

performance and driving

business results based

on engagement data and

employee feedback

November 6-7, 2014

Zurich

EMPLOYEE ENGAGEMENTCORE STATEMENTS

When these four „conditions“ are in place, engagement becomes a way of life:

►Senior leadership actively sponsors employee engagement initiatives.

► It is action and follow-up that comes out of the survey process that matters.

► It is an ongoing business process that is owned by the line.

►Engaged employees have a „shared belief“

November 7, 2014 29

November 6-7, 2014

Zurich

CONVENTIONS 2015MOTTO: „ANALYTICS MEETS EXECUTION“

Talent Relationship Management: May 21

Human Capital Analytics: October 15

Talent Relationship Management : June 11

Human Capital Analytics : October 29

Talent Relationship Management : June 25-26

Human Capital Analytics : November 5

November 7, 2014 30

YOUR CONTACT PERSON

► President and CEO at STRIMgroup AG in Zurich http://www.strimgroup.com

► Senior Fellow Human Capital at The Conference Board in New York http://www.conference-board.org

► Associate Professor at HTWG Constance / LCBS – MBA in Human Capital Management http://www.lcbs.htwg-konstanz.de

► Selected professional positions:

► Global Head of HR Analytics at Deutsche Bank AG, and

► Senior Manager hrs at PricewaterhouseCoopers AG.

845 Third Avenue

New York, NY 10022-6600

Phone: +49 (0)172 7590 688

volker.mayer@conference-board.org

Gütschstrasse 22

CH-8122 Binz (Zurich)

Phone: +41 (0)43 366 05 58

volker.mayer@strimgroup.com

12November 7, 2014