1 Managing the Employee-Customer Encounter. 2 “A chance for something to go wrong…” “We just...

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Managing the Employee-Customer Encounter

2

“A chance for something to go wrong…”

“We just don’t trust them that much…”

“Get a life!…”

Are People Assets or Liabilities?

3

HumanSigma® Performance Bands

Copyright © 2007 Gallup. Inc. All rights reserved.

1.8x

3.8x

2.5x

5.2x

4.5x

4

Customer Engagement Hierarchy

Can’t imagine a world without

Perfect company for people like me

Treats me with respect

Feel proud to be a customer

Fair resolution of any problems

Always treats me fairly

Always delivers on promise

Name I can always trust

Your company is irreplaceable to

me. I feel passionate about you.

Your company is prestigious. It

is part of who I am.

When we have a problem,

you always treat me fairly.

I can safely assume that

you will always keep

your promises.


Passion

Pride

Integrity

Confidence

5Copyright © 2007 Gallup. Inc. All rights reserved.

All Advocates Are Not Created Equal

Commercial Banking

Air Cargo Shipping

100

“JDS”

“JDS”

“JDS”

“JDS”

6

Amygdala

Ant. Cingulate

r=.789

r=.766

Differential Neural Activity: Passion


7

Employee Engagement


Daily Pulse

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Happiness/Enjoyment without a lot of Stress/Worry

Stress/Worry without a lot of Happiness/Enjoyment

Copyright © 2008 The Gallup Organization, Princeton, NJ. All rights reserved.

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1. Friends2. Relatives3. Significant Other

----------------------------------3rd from last: Customers2nd from last: Co-workersDead last: Boss

Housecleaning

People We Enjoy Being Around

Source: Kahneman, D., et al. (2004). A Survey for Characterizing Daily Life Experience: The Day Reconstruction Method. Science. 306. 1776-1780.

9Copyright © 2007 Gallup, Inc. All rights reserved.


What Does Employee Disengagement Look Like?

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Note: Differences are between top and bottom quartile workgroups. Absenteeism statistic is the difference between engaged and actively disengaged employees.

Employee Engagement and Performance



Employee Engagement and EPS

2.6x Higher Growth Rate for High Engagement Companies

Note: Based on analysis of data from 89 publicly traded companies. Engagement data collected from 2002 to 2004. Comparables averaged 7.3 competitors per company.

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The 12 Elements of Great Managing

THE FIRST ELEMENTKnowing What’s Expected

THE SECOND ELEMENTMaterials and Equipment

THE THIRD ELEMENTThe Opportunity to Do What I Do

Best

THE FOURTH ELEMENTRecognition and Praise

THE FIFTH ELEMENTSomeone at Work Cares About Me

as a Person

THE SIXTH ELEMENTSomeone at Work Encourages My

Development

THE SEVENTH ELEMENTMy Opinions Seem to Count

THE EIGHTH ELEMENTA Connection with the Mission of the

Company

THE NINTH ELEMENTCoworkers Committed to Doing

Quality Work

THE TENTH ELEMENTA Best Friend at Work

THE ELEVENTH ELEMENTTalking About Progress

THE TWELFTH ELEMENTOpportunities to Learn and Grow


14

15

Pr( MORTi,s,h = 1 | xi)

1 - Pr( MORTi,s,h = 1 | xi) ( )ln = α0 + α1·Zi + εi,s,h

Individual Contributions

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Employees need to experience success in their performance.

A key to this is the degree to which the job fits their talents, skills, and preferences.

It’s also crucial that employees feel that they are contributing to the organization and that those contributions are valued. Honest feedback is essential to an accurate assessment of performance, but more than that, it provides the kind of data our minds need to learn and eventually master new tasks and demands.

Teamwork: Do I Belong?

17

Employees have a need to belong to something bigger than themselves. This sense of belonging starts with the social membership benefits we expect from any group to which we belong.

Making an emotional commitment requires: Continuity in your social and material conditions — a

sense of the reliability of people and things. Confidence in your place in society and your right to be

yourself. Faith that you can achieve your maximum “you-ness”

How Can We Grow?

18

A psychologically committed employee in an engaging work environment is primed for innovation and growth.

Employees who have the opportunity to discuss their progress develop a deeper emotional commitment to the organization.

Once this longer-term commitment is formed, the employee naturally raises the question of where am I going from here?

A deeper psychological affiliation: “ I AM Gallup

Improving Engagement

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• Manage by outcomes not behaviors.

• Liberate don’t legislate.

• Engagement is for everyone.

• All politics is local.

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The Tactics of HumanSigma®

Evaluation– Objective data are necessary to provide an accurate assessment of

current performance and to set out realistic short-range and long-term goals.

Intervention– Activities should target identified areas for improvement and

capitalize on identified strengths at both local team and enterprise levels.

– “Meet them where they are.” Activities must be appropriate for each team’s current level of performance.

Encouragement– Recognition and reward programs provide incentive for continued

improvement.


Curing Disengagement?


IgnoredIgnored

2%2%

58%58%

40%40%

WeaknessWeakness

22%22%

33%33%

45%45%

100%100%

80%80%

60%60%

40%40%

20%20%

0%0%

EngagedEngaged

Not EngagedNot Engaged

Actively DisengagedActively Disengaged

StrengthsStrengths

61%61%

38%38%

1%1%

Workplace Ratios

Productivity

Po

siti

ve-t

o-n

egat

ive

rati

o

Workplace Ratio (3:1)

Upper Limit (12:1)


Source: Fredrickson, B. L. & Losada, M. (2005). Positive affect and the complex dynamics of human flourishing. American Psychologist, 60 (7) 678-686.[4]

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

23

Strengths Net Gain Study: Higher Productivity

Productivity was 12.5% higher (post-treatment) among teams whose manager received any form of strengths education or intervention.

Incre

ase

in

Pro

du

cti

vity

n = 530 business units


The Tactics of HumanSigma®

Transactional

Transformational

Evaluate Intervene Encourage

Measurement Logistics

Analysis

Performance Zones

Road Map & Targets

Brand Promise Alignment

Action Planning

SWAT Teams

Customer Advisory Boards

Preferred Recognition

Performance Communication/ Celebration

Local Celebrations/ Recognition

Formalized Rewards

Institutionalize Accountability

Build a SBO

Learn and Leverage Strengths

Select for Talent

Peer Group Mentors

Level 5/6 Summit

Performance Linked to Advancement/ Promotion

Case Studies

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Reported plan helped make progress

Reported plan did not help make progress

“Working the plan” is strongly related to actual improvement


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