scce compliance & ethics institute · 1 scce compliance & ethics institute jim harter,...

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SCCE Compliance & Ethics Institute

Jim Harter, Ph.D.William Kruse, J.D.

Chicago 2016

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Team-Level Performance:(Percentile Ranking):

Poor(1st–24th)

Fair

(25th–49th)

Good(50th–74th)

Excellent

(75th–99th)

Market: Overall Chicago Brazil

n Size: 3,822 47 41

GrandMean:

Opportunities to learn and grow 3.96 3.94 3.75

Progress in last six months 4.23 4.49 4.26

Best friend 3.49 3.45 3.75

Coworkers committed to quality 4.08 3.45 4.10

Mission/Purpose of organization 3.69 3.65 3.86

My opinions count 3.64 3.57 3.93

Encourages development 4.07 4.34 4.15

Supervisor/Someone at work cares 4.20 3.49 4.28

Recognition last seven days 3.92 4.17 4.04

Do what I do best every day 3.71 3.83 3.71

Materials and equipment 3.66 4.06 3.57

I know what is expected of me at work 4.25 3.22 4.10

A Tale of Two Offices …

3 Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.

Employee Engagement Throughout the World

% Engaged

4.1% 39.1%

4 Copyright © 2016 Gallup, Inc. All rights reserved.

3

Structured interviews

Unstructured, free-flowing,

open-ended interviews

Job satisfaction and climate

surveys

Gallup studies in Western Europe, Latin America, Africa, Far East

Ongoing feedback techniques

Varsity management

Long employee surveys

Talent formula

Focus groups

Validation studies — factor analysis of long surveys (100-200 items)

Q12 tested throughout the world

31MRESPONDENTS

198COUNTRIES

72LANGUAGES

1950 1960 1970 1980 1990 2000 2010

1997 First meta-analysis of

1,135 BUs

2002 Meta-analysis published in Journal of

Applied Psychology

2016Ninth iteration of meta-analysis of

82,248 BUs

First, Break

All the Rules

Manager courses

Org. database

Causal impact

Workplace ScienceScience-based focus on the study of excellence


19401930

Job satisfaction research begins

Employee engagement

organizational practices begin

Gallup studies in Western Europe, Latin America, Africa, Far EastStudies of innate talents

• Clear expectations

• Materials and equipment

• Do what I do best

• Recognition

• Cared about as a person

• Development

• Opinions count

• A mission or purpose

• Committed coworkers

• Strong social bonds

• Progress discussions

• Learning and growth

Basic Needs of Employees to Be Productive

6 Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.

4

How

can we

grow?

Do I belong?

What do I give?

What do I get?

12 Elements for Engaging a Workforce

7

Opportunities to learn and growProgress in last six months

Best friendCoworkers committed to qualityMission/Purpose of companyMy opinions count

Encourages developmentSupervisor/Someone caresRecognition last seven daysDo what I do best every day

Materials and equipmentI know what is expected

Growth

Teamwork

IndividualContribution

BasicNeeds

31 million respondents

Copyright © 1993-1998, 2016 Gallup, Inc. All rights reserved.

Employee Engagement Historical Trend

8

10%13%

26%30% 30%

28% 29%26%

30% 30% 29% 28% 28% 29% 30% 30% 31% 32%

38%

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

En

ga

ge

d E

mp

loye

es

Global

U.S.

Best Practice

Copyright © 2016 Gallup, Inc. All rights reserved.

Gallup Daily tracking

5

Organizational Engagement Varies

9

19% 16%6% 6%

53%49%

30%23%

28%35%

64%72%

BottomQuartile

BottomHalf

TopQuartile

TopDecile

Copyright © 2009, 2013 Gallup, Inc. All rights reserved.

ENGAGED

NOT

ENGAGED

ACTIVELY

DISENGAGED

EPS +147%


Engagement


Strategy/LeadershipCommunicationAccountabilityDevelopment

Culture Change


6

2016 Q12®Meta-Analysis Components

11

Correlations of Q12 to 2016 Study

1,882,131 Employees

82,248 Business/Work units

339 Research studies

230 Organizations

73 Countries

49 Industries

Key Client Performance Metrics

Customer loyalty/engagement

Profitability

Productivity

Sales

Turnover

Safety incidents

Patient safety incidents

Shrinkage

Absenteeism

Quality (defects)


The Business Impact of Q12®: Highly Engaged Teams Perform BetterTop-quartile-engagement work units have substantially better outcomes than their bottom-quartile counterparts.

12

-41%

-24%

-59%

-28%

-70%

-58%

-40%

10%

17%20% 21%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%Turnover

Absenteeism ShrinkageSafety

Incidents

Customer Metrics

Productivity Sales

High-Turnover

Orgs.

Low-Turnover

Orgs.

PatientSafety

Incidents

Quality(Defects)

Business units in the top engagement quartile have 28% less shrinkage and 21% higher profitability than their bottom-quartile counterparts.

Profitability


7

20%

28%32%

38%42%

46%50%

54%58%

62%

68%72%

80%

0%

20%

40%

60%

80%

100%

1st 5th 10th 20th 30th 40th 50th 60th 70th 80th 90th 95th 99th

Higher Engagement Predicts Better Overall PerformanceProbability of above-average performance*

13

Engagement PercentileAnalysis of business units across organizations in Gallup’s database

Success R

ate


*Composite of absenteeism, turnover, shrinkage, sales, safety, quality, customer metrics, productivity and profitability

A Year in the Life of an American


Based on data from the Gallup-Healthways Well-Being Index

% With a lot of happiness/enjoyment, without a lot of stress/worry % With a lot of stress/worry, without a lot of happiness/enjoyment

8

The Workplace and Physiological Outcomes

15

Physiological Devices

• Actiheart monitor

• Saliva collection

Harter, J. K., & Stone, A. S. (2011). Engaging and disengaging work conditions, momentary experiences, and cortisol response. Motivation and Emotion.


ESP

Before Prompt. Did you feel you could not control important things?

1 Not at all

2 Slightly

3 Somewhat

4 Fairly

5 Very much

Done

Progression of Interest Throughout the Day Varies for Engaged and Disengaged Employees



Low Engagement*

Time of Day (24-hour clock)

3.8

4.0

4.2

4.4

10 2015

High Engagement*


10 2015

*Working moments only

Le

ve

l

Le

ve

l

3.6

3.8

4.0

4.2

4.4

3.6

9

Momentary Interest and Cortisol



*Controlling for time of day

Co

rtis

ol (

nm

/ml)

Interest

4.5

5.0

5.5

6.0

0.04.0

6.02.0 4.0

Diurnal Cycle of Cortisol by Engagement Median-Split Groups





10

7

8

6

4

2

08 9 10 11 12 13 14 15 16 17 18 19 20 21 22

10

7

8

6

4

2

08 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Co

rtis

ol (

nm

/ml)

C

ort

iso

l (n

m/m

l)

Engagement Low Engagement High

10

Daily Engagement

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Workday Reconstruction

• Doing productive work• Communicating with manager• Working with coworkers• Working with customers• In meetings• Doing email• Working alone• Sitting• Socializing about nonwork-related issues• Using strengths• Feeling absorbed in work• Doing what you don’t do well


Engagement and Who You Are Within the Moment



Low Engagement*


3.5

4.0

4.5

5.0

10 2015

High Engagement*


3.5

4.0

4.5

5.0

10 2015

*Working moments only

Lik

e p

eo

ple

th

at

I a

m w

ork

ing

with

rig

ht n

ow

Lik

e p

eo

ple

th

at

I a

m w

ork

ing

with

rig

ht n

ow

11

Clear Expectations Guide ConversationsUnclear expectations also guide conversations.

21

2.00

2.10

2.20

2.30

2.40

2.50

2.60

2.70

Knowing What’s Expected

%1-4 %5

2+ Hours

Hours Yesterday Socializing or Talking About Nonwork-Related Topics

0 Hours

Negative M

ood


Internal Theft — % Quarterly

22

0.49%0.47%

0.43%0.40%

0.00%

0.25%

0.50%

Bottom 25% Top 25%

Opinions Count

Middle Quartiles


12

Actual Internal Theft

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-$198,090

-$154,020

-$132,528-$146,869

-$250,000.00

-$200,000.00

-$150,000.00

-$100,000.00

-$50,000.00

$0.00Bottom 25% Top 25%

GrandMean

Middle Quartiles


Internal Theft — Delta From Budget

24

-$145,739 -$150,317-$157,658

-$166,217-$175,000.00

-$150,000.00

-$125,000.00

-$100,000.00

-$75,000.00

-$50,000.00

-$25,000.00

$0.00Bottom 25% Top 25%

GrandMean

Middle Quartiles


13

Days Missed From Work Last Year, Excluding Vacation —Middle Management

25

4.10

7.10

9.50

0

2

4

6

8

10

Engaged Not Engaged Actively Disengaged


Total Incidents Reported by Quartile

26

1.88

2.87

3.24

0

2

4

Top Quartile Middle Half Bottom Quartile

GrandMean 3.71 GrandMean 3.42 GrandMean 3.10

Safety


AA(26KB3

AA(26 are this slide and 27 the same?Anderson, Ashley (Furne), 9/20/2016

KB3 Keep 26. Delete 27\Kruse, Bill, 9/22/2016

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Percent Specification Compliance — % Change

27

1.16%

-0.05%

-0.5%

0.0%

0.5%

1.0%

1.5%

Top Half Bottom Half

GrandMean


Number of OSHA Incidents by GrandMean Grouping

28

Safety

4.766

8.945

0

1

2

3

4

5

6

7

8

9

10

Top 50% Bottom 50%

GrandMean

88% Difference


15

Number of OSHA Incidents by Quartile

29

Safety

12.72

23.40

0

5

10

15

20

25

Top Quartile Bottom Quartile

GrandMean


Workers’ Comp — Number of Claims

30

Safety

9.28 9.22

8.00

6.81

0

1

2

3

4

5

6

7

8

9

10

Bottom 25% Top 25%

An

nu

al A

vera

ge

Expectations

Middle Quartiles


16

Strengths Team Composition — Meta-Analysis Study of 11,441 teams across six organizations

31

Executing Influencing Relationship Building Strategic Thinking

Achiever Activator Adaptability Analytical

Arranger Command Connectedness Context

Belief Communication Developer Futuristic

Consistency Competition Empathy Ideation

Deliberative Maximizer Harmony Input

Discipline Self-Assurance Includer Intellection

Focus Significance Individualization Learner

Responsibility Woo Positivity Strategic

Restorative Relator


Highly Engaged Teams Know Their Strengths

90%+ Strengths Known

Copyright © 2016 Gallup, Inc. All rights reserved.33

3.80

3.85

3.90

3.95

4.00

4.05

4.10

4.15

4.20

4.25

4.30

4.35

<= .00 .01-10.00 10.01-20.00 20.01-30.00 30.01-40.00 40.01-50.00 50.01-60.00 60.01-70.00 70.01-80.00 80.01-90.00 90.01+

% Strengths Known

Q12 GrandMean by Percentage “Strengths Known” Across Companies

17

Gallup 2016 Strengths Meta-Analysis


14%-29% INCREASED PROFIT

23%-59% DECREASED ACCIDENTS

WORKGROUPS THAT RECEIVED STRENGTHS-BASED DEVELOPMENT WERE FOUND TO HAVE:

1.2MEMPLOYEES

49,495WORKGROUPS

45COUNTRIES

Optimizing Company Culture

Organizational identity


18

35

Leadership Human Capital

Work Teams & Structures

Values & Rituals

Performance

• Vision and

aspirations

• Team interaction

• Communication

• Values

• Social

expectations

• Social

interactions

• Attraction and

selection

• Training and

development

• Engagement

• Well-being

• Knowledge

management

• Business units

• Geography

• Team formation

• Level of matrix

• Social networks

• Goal setting

• Benchmarking

• Accountability

• Rewards and

recognition

These drivers – together and independently –shape the behavior of employees.


• Following an evidence-based approach — specifically when it comes to assessing the impact of values

• Driving openness and transparency in culture surveys

• Comprehensiveness of feedback from quantitative surveys

• Skills and training — ensuring auditors are able to work with fairly subjective data, qualitative and quantitative

• Positioning the audit — specifically anonymity

• Despite being independent and objective — dealing with your own bias — as you are part of the same culture

Auditing Culture


19

37

Leadership Human Capital

Work Teams & Structures

Values & Rituals

Performance

• Vision and

aspirations

• Team interaction

• Communication

• Values

• Social

expectations

• Social

interactions

• Attraction and

selection

• Training and

development

• Engagement

• Well-being

• Knowledge

management

• Business units

• Geography

• Team formation

• Level of matrix

• Social networks

• Goal setting

• Benchmarking

• Accountability

• Rewards and

recognition


Provides a sense of identity for employees and increases their engagement, connection

to the organization

Is a sense-making device

Reinforces the values of the organization

Serves as a control mechanism for shaping behavior

Why Culture Is Important


20

A Million Ways to Define Culture

39

Artefacts

Shared values and practicesDescriptive

Stories

Cultural products

Mission

Organization culture is different from organizational climate

Perceived meaning Values

It’s the way we do things around here


AA(29KB4

Defining a Culture

How does your organization want to be known to others?

Why does your organization exist?

How you do things in your organization – that supports your purpose and brand.

Defining Your Purpose Defining Your Brand Defining a Culture

Gallup’s experience has shown culture should be defined, measured, and managed simultaneously with the organization’s purpose and brand.


AA(29 Is this supposed to be Artifacts?Anderson, Ashley (Furne), 9/22/2016

KB4 Ask Nate D or Jim.Kruse, Bill, 9/22/2016

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ASSESSMENTS CONDUCTED IN MORE

THAN 60 COUNTRIES

AND IN MORE THAN 30LANGUAGES

OVER 10 MILLION EMPLOYEES ASSESSED FOR MYRIAD ROLES INCLUDING 50,000 LEADERS

32 OFFICES IN

18 COUNTRIES

CLIENTS IN OVER

2,000ORGANIZATIONS

AND OVER 20INDUSTRIES

80+YEARS OF

EXPERIENCE


Gallup’s Expertise

41

Using Gallup’s talent-based hiring solutions, your organization will experience the following benefits:

Advantages of Talent-Based Hiring

SPEEDEmployees operating from talents suited to a role learn the role faster and adapt to

more variance in the role quicker.

PRODUCTIVITY AND PRECISIONEmployees operating from talents are more productive, produce at a higher quality and

exceed expectations more often.

LONGEVITY AND ATTENDANCEEmployees operating from talents stay

longer, miss less work and build stronger customer relationships.


22

What Is Talent?


Find the Best of the Best

44

NATURAL TALENT ACQUIRED CHARACTERISTICS

Thoughts

Feelings

Behaviors

Knowledge

Skills

Experience

VS.


23

What Is Talent?

Think about the best manager you’ve ever had.

How would you describe him or her?


What Is Talent?

Think about the best manager you’ve ever had.

How would you describe him or her?

Excellent performers think, feel and behave differently.


24

Talent is the natural capacity for excellence, which Gallup

measures using scientific assessments that evaluate naturally

recurring patterns of thought, feeling or behavior that can

be productively applied.


• Vigilance

• Discipline

• Responsibility

• Communication

• Teamwork

Examples of Natural Talents That Predict Fewer Accidents


25

Outcomes Associated With Low Talent Fit to the Role


24xMORE LIKELY TO HAVE SERIOUS REPORTABLE

ACCIDENTS

4xMORE LIKELY TO HAVE

REPORTABLE ACCIDENTS

5xMORE HOURS OF MISSED WORK

AND 78:1 RATIO OF WORKERS’ COMPENSATION CLAIMS

Transportation Industry Hospitality Industry Manufacturing Industry

Workplace Deviance Is Impacted by Both Personality and Environment


26

We’ve all used it to assign resources and assess risk.

Trace Risk Map


Volkswagen

52

Did they pay too much attention to external risk factors at the expense of talent, engagement and culture data?

PERCENTAGE OF U.S. CONSUMERS FAMILIAR WITH VW SCANDAL

75% Gallup Panel


27

Copyright Standards


This document contains proprietary research, copyrighted materials and literary property of Gallup, Inc. It is for the guidance of your organization only and is not to be copied, quoted, published or divulged to others outside your organization. All of Gallup, Inc.’s content is protected by copyright. Neither the client nor the participants shall copy, modify, resell, reuse or distribute the program materials beyond the scope of what is agreed upon in writing by Gallup, Inc. Any violation of this Agreement shall be considered a breach of contract and misuse of Gallup, Inc.’s intellectual property.

This document is of great value to Gallup, Inc. Accordingly, international and domestic laws and penalties guaranteeing patent, copyright, trademark and trade secret protection safeguard the ideas, concepts and recommendations related within this document.

No changes may be made to this document without the express written permission of Gallup, Inc.

Gallup®, Gallup Panel™, Q12®, CliftonStrengths™ and each of the 34 CliftonStrengths theme names are trademarks of Gallup, Inc. All rights reserved. All other trademarks and copyrights are property of their respective owners.

scce compliance & ethics institute · 1 scce compliance & ethics institute jim harter,...

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