Navigating the MinefieldPreventing and conquering the barriers to complex injury management cases
Insight SRC Pty LtdLevel 9, 34 Queen StreetMelbourne VIC 3000Phone: 03 8611 0600Email: [email protected]: www.insightsrc.com.au
The Causal Links BetweenOrganisational Health and Individual Injury
Presented on behalf ofSelf Insurers of Victoria
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About Insight SRC…
Insight SRC is a highly-skilled consulting organisation capable of building the productivity and effectiveness of enterprises through innovative and empowering leadership and organisational development strategies.
We deal with the problem, not the symptom, by creating the tools, knowledge and capacity that our clients can then apply to a self-managed process for cultural and organisational change.
Insight SRC works as a strategic partner with our clients to develop long-lasting relationships. You have the expert understanding of your operating environment. We have the deep conceptual knowledge of HR development and the powerful statistical tools and change processes to back it up.
The solutions we develop are not off-the-shelf formats. Our flexibility in thinking and deployment is a result of a holistic approach to organisational issues.
Together we work to give you insight into the way your people work, and the pathways for improvement.
As partners, we create knowledge – the most powerful tool of the contemporary organisation.
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Our theoretical frameworks …
Insight SRC has been instrumental in creating the knowledge and setting the standards in the HR, consulting and scientific management communities:
research awards(e.g., we have received many prestigious research awards, at the national and international levels, for the quality of our organisational research, and have been rated in the top 10% of researchers worldwide)
creating the knowledge that drives international thinking(e.g., we our recognised as thought leaders on the key drivers of wellbeing, motivation and performance, and have published extensively in the top-tier scientific journals in management and organisational psychology)
establishing the theoretical frameworks that underpin policy and practice(e.g., we developed the organisational health framework that now underpins the policies and practices in a wide range of private and public sector organisations to build accountability and improvement in people issues)
Our research highlights four fundamental truisms that build effective performance
Empathy – building trust, respect, and understanding
Clarity – building dialogue, discussion, focus and accountability
Engagement – building teamwork, empowerment, and shared ownership
Learning – building in feedback, personal growth and challenge
… these underpin the key team and individual behaviours that drive wellbeing
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Our focus, on establishing and understanding the link between people and performance has clearly demonstrated that engaged employees are the foundation of effective organisations.
The Russell Investment GroupA study of the companies on Fortune’s annual list of “100 Best Companies to Work For” showed that these companies returned five times as much to investors as the market in general
Towers Perrin/ISRUsing data from 664,000 employees across 50 countries worldwide, Towers Perrin/ISR found that companies with highly engaged employees had lower turnover, lower absence, higher customer satisfaction
McKinseyLowell L. Bryan, a McKinsey Director, argues that companies focus too much on measuring returns on invested capital and not enough on measuring the contributions of their people, and believes that we should use financial-performance metrics to focus on returns on talent rather than returns on capital
Insight SRCWorking with a range of Australian private and public sector organisations, we have established a strong link between engaged employees and business performance:
Boeing Australia – engaged employees drive business excellence (2003 Gold Award)
Medium-sized Bank – engaged employees drive financial performance (2006)
RACV – engaged employees drive retail and call centre customer satisfaction (2002 SIOP)
Victorian Education – engaged employees drive student retention and academic achievement (2007)
State and Commonwealth Public Sector – engaged employees lead to lower costs (1992-2007)
Engagement is the critical path to wellbeing and performance …
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Typical challenges when building engagement …
Building engagement can be a time consuming, costly and threatening pursuit:
Getting it right(e.g., organisations often embark on engagement programs without first establishing the root cause ofwellbeing and performance outcomes)
Survey fatigue(e.g., organisations often implement a range of diagnostic activities, including culture and climate surveys,stress audits, 360 degree feedback surveys, pulse surveys, engagement surveys, etc)
Lack of common language(e.g., embedding a common cultural language around ‘people’ is not helped by the use of different frameworks, tools and providers that all come with their own ways of talking about leadership and culture)
Lack of integration(e.g., different diagnostic tools usually draw on different conceptual frameworks, resulting in fragmentation and competing messages, a lack of ownership for core issues, and time consuming development processes)
The blame game(e.g., organisations sometimes struggle to build ownership of development needs at the right level, withmanagers blaming employees, and employees blaming managers – finger pointing is much easier than change)
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Through a range of scientific and commercial projects, we have examined the key drivers of organisational health with data from over 1,000,000 employees world-wide.
Public Sector
Accountants and Economists
Community Services Workers
Emergency Services Workers
Hospital Staff
Local Government Employees
Police Officers
Primary & Secondary Teachers
TAFE Employees
Transport Workers
Airline Employees
Engineering Employees
Finance Sector Employees
Information Technology Employees
Insurance Employees
Resource Industry Employees
Retail Employees
Telecommunications Employees
Utilities Employees
Private Sector
Using organisational health as an integrative framework …
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NegativeExperiences
Emotionality
PositiveExperiences
Org.Climate
EmotionFocusedCoping
ProblemFocusedCoping
Sociability
Stress
JobSatisfaction
Morale
_
_
_
_+
+
+
+
+
+
+
_
++
++
+
+
_
++
+
StressLeave
Non certifiedSick leave
TurnoverIntentions
DiscretionaryPerformance
CustomerExperience
Profitability
The Organisational Health Framework …
Based on Hart & Cooper (2001)
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IndividualCharacteristics
OrganisationalCharacteristics
Distress OrganisationalPerformance Morale
Simplifying the Organisational Health Framework …
we actually control those things that makethe most difference to wellbeing and performance …
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IndividualMorale
IndividualDistress
WorkplaceMorale
OrganisationalClimate
Sociability
Emotionality
PositiveWork Experiences
NegativeWork Experience
51
30
-30
28
-18
Emotionality
OrganisationalClimate
NegativeWork Experiences
PositiveWork Experiences
Sociability
EmotionFocused Coping
67
-36
23
-10
05
03
OrganisationalClimate
Emotionality
Sociability
85
-29
15
OrganisationalClimate
Emotionality
NegativeWork Experiences
EmotionFocused Coping
-60
45
25
04
WorkplaceDistress
Research evidence …
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JobSatisfaction
Workers’ Compensation
NoncertifiedSick leave
OrganisationalClimate
Emotionality
PositiveWork Experiences
NegativeWork Experiences
Sociability
77
-36
34
-23
11
Emotionality
Individual Distress
Individual Morale
OrganisationalClimate
Sociability
NegativeWork Experiences
EmotionFocused Coping
PositiveWork Experiences
55
28
-28
-26
13
12
12
-11
OrganisationalClimate
Job Satisfaction
Emotionality
Workplace Distress
NegativeWork Experiences
PositiveWork Experiences
-19
-16
11
11
06
-06
Emotionality
OrganisationalClimate
Individual Morale
Individual Distress
PositiveWork Experiences
NegativeWork Experiences
Workplace Morale
Sociability
Job Satisfaction
40
-39
-34
22
-14
13
-10
09
-06
TurnoverIntentions
Even more research evidence …
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Linking wellbeing and service delivery in a call centre environment
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52Customer
Experience
Innovation
StaffWell-Being
Retention
Leadership OrganisationalClimate
Improving service delivery …
12
Neal, Griffin & Hart (2000) Safety Science
Organisational climate and safety behaviours …
2358
SafetyParticipation
OrganisationalClimate
SafetyClimate
SafetyCompliance
SafetyMotivation
SafetyKnowledge
35
29
23
57
28
43
54
Workgroups Individuals Outcomes
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Hart, Norris, Wearing, McMurray, Disler & Malinovskaya (1997) University of Melbourne
2348 42
67
42Catastrophise
OrganisationalClimate
DaysCompensated
ImpactOn Life
23
-22
-20
ClaimsManagement
PainSeverity
Days compensated after back injury …
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Hart, Norris, Wearing, McMurray, Disler & Malinovskaya (1997) University of Melbourne
2348
Returnto Work
PainSeverity
ClaimsManagement
47
-38
-31
80
50Catastrophise
OrganisationalClimate
DaysCompensated
ImpactOn Life
41
-28
Return to work after back injury …
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There are no magic silver bullets when it comes to improving organisational health. Nevertheless, we can develop a set of principles and practical tools that enable us to structure our thinking and improvement activities.
Concerns and/orOpportunities
?
OrganisationalPerformance
LeadershipBehaviours
CulturalBehaviours
EmployeeWellbeing
Energy
Enthusiasm
Pride
Passion
Empathy
Clarity
Engagement
Learning
Core Business
Change Management
Development
People Symptoms
Putting the pieces together …
a strategic approach focuses on the causes, not the symptoms…
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Stress is a systemic concept that may be observed when two conditions are met:
a state of disequilibrium exists within the system of variables relating people to their environment;
and
this state of disequilibrium brings about change in people’s normal levels of psychological well-being.
Dynamic equilibrium theory of stress …
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Distress refers to the negative feelings that people
experience as a result of their work(e.g., anxiety, depression, frustration, worry)
Morale refers to the positive feelings that peopleexperience as a result of their work
(e.g., energy, enthusiasm, pride, team spirit)
Practical definitions …
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Employee Satisfaction
Quality of Work Life
Employee Wellbeing
Job SatisfactionLow High
Low
High
Distress
Morale Presenteeism
Utopia Go, go, go ...
#$*!#!
Emotion is the key to staff wellbeing …
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NegativeExperiences
Victims
Danger
Dual Careers
Personality Clashes
Activity
Insecurity
Frustration
Complaints
External
Career Opportunities
Coworkers
Outside Support
Work & Home Life
Workload
Resources
Communication
Supervision
Administration
22
24
35
47
48
49
49
49
50
52
56
61
62
66
67
71
83
84
PositiveExperiences
Decision-Making
The Job Itself
Management
Administration
Customer Service
Workload
Amenities
Coworkers
Work Schedule
Equip. & Resources
Family
Victims
Offenders
73
71
68
67
65
58
57
56
56
54
29
18
78
Police experiences and their wellbeing …
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OrganisationalHealth
Consulting through balloons and weights …
By focusing on the actual experiences that an employee has had over the past 1-2 months, it is possible to identify the key factors that contribute to staff wellbeing and overall performance – without ‘loading’ the dice through a checklist or questionnaire.
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Employee Development
Co-worker Interaction
Feedback
Goal Alignment
Participative Decision-Making
Role Clarity
Supportive Leadership
Work Demands
50% of Individual Morale
85% of Workgroup Morale
80% of Workgroup Distress
45% of Individual Distress
Explains
Causes
Key drivers of motivation and wellbeing…
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Research in a wide variety of private and public sector organisations demonstrates that the following four cultural pillars underpin wellbeing, motivation and performance in all organisations:
• Empathy (Supportive Leadership)
• Clarity (Role Clarity)
• Engagement (Teamwork, Empowerment, Ownership)
• Learning (Feedback, Employee Development)
Importantly, the relative strengths and weaknesses across these four pillars differs across teams. This indicates that improvement strategies have to be tailored to the specific needs of individual teams.
Clarity
Empathy
Engagement
Learning
Building a quality organisational culture …
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RoleClarity
SupportiveLeadership
ExcessiveWork
Demands
Teamwork
Feedback
Empower-ment
EmployeeDevelopment
Ownership
IndividualMorale
WorkplaceMorale
WorkplaceDistress
IndividualDistress
20
24
40
40
33
29
-41
66
30
40
38
56
33
334772
45
44
59
39
-55
-21
30
-42
22
EngagingClarity LearningEmpathy
Leadership and Management Culture
Building the culture that underpins high performance …
ServiceDelivery
Retention
StressClaims
Absenteeism
DiscretionaryEffort
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Workgroup Morale Workgroup Distress Individual Morale Individual Distress
Supportive Leadership
Coworker Interaction
Role Clarity
Goal Alignment
ParticipativeDecision-Making
74
74
45
39
15
ExcessiveWork Demands
Supportive Leadership
Goal Alignment
ParticipativeDecision-Making
Individual Morale
Role Clarity
66
-60
-41
-19
-14
-18
Supportive Leadership
Role Clarity
Employee Development
ParticipativeDecision-Making
Coworker Interaction
Appraisal & Recognition
52
48
30
16
13
12
Supportive Leadership
Role Clarity
ExcessiveWork Demands
-42
-41
30
Understanding what is most important …
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Focus on People
Manages People
Seeks Feedback
Builds Relationships
Supports Staff
Focus on Development
Coaches Staff
Effectively Manages Change
Values Training & Development
Focus on Core Business
Builds Own Skills
Is Entrepreneurial
Creates a Quality Environment
Provides Direction
Effectively Manages
Projects
SupportiveLeadership
being approachable
knowing the problems staff face
supporting staff
communicating wellwith staff
can be relied upon
What is behind supportive leadership – a transformational approach…
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Research in a wide variety of private and public sector organisations demonstrates that the following four cultural pillars underpin engagement and performance in all organisations:
Empathy the extent to which workgroup leaders understand the needs of workgroup members
Clarity the extent to which workgroup members have a sense of purpose and know what is expected of them
Engagement the extent to which workgroup members collaborate, share ideas and solve problems together, leading to shared Goal Alignment of workgroup goals
Learning the extent to which workgroup members feel their efforts are being recognised and their capability is being developed through appropriate learning and development opportunities
These four pillars underpin Goleman, Boyatzis and McKee’s (2002) emotional intelligence approach to leadership - their six styles of leadership include visionary, coaching, affiliative, democratic, pacesetting and commanding.
Moving toward an emotional intelligence framework …
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Why are the four pillars of culture so important?
Clarity
Empathy
Engagement
Learning
Four Pillars of Leader and Cultural Behaviour
Wellbeing & Motivation
Customer Experience
SalesPerformanceRetention
LoyaltyBehaviours
85% 50%60% 25% 15%
AbsenceCost
55%
the leader and cultural behaviours that form the foundations of engagement and performance
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Minimum chance of success:
Building knowledge (e.g., sharing ideas, reflection, one-off training days, etc)
Maximum chance of success:
Changing behaviour (i.e., if behaviour does not change, improvement does not occur)
People can see and experience behaviour change in others, but they can’t always see and experience change in other people’s knowledge!
Behaviour change – the difficult part when improving wellbeing …
Bringing about a change in the factors that contribute to employee wellbeing is not straightforward. Pre and post-test evidence, from a range of different improvement programs over the past 17 years, has demonstrated that action-learning programs that focus on behaviour change have the greatest chance of success.
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Improvement in organisational health should be strategic and holistic!
Engagement:1. Do staff have a shared view about the organisation’s strengths and weaknesses?2. Are staff on board with the proposed improvement process?
Clarity:3. What are the organisation’s improvement goals?4. How do these goals fit in with the strategic plan for the organisation?
Empathy & Engagement:5. Do we need to implement an action learning process?6. How should we create project teams and champions?
Learning:7. What learning activities do we need to build into the process?8. Do we need to review the leadership structure and roles?9. Do we need to develop a vision and strategic plan?10. Do we need to build empathy among leaders?11. Do we need to improve meetings?12. … what can I do personally to make a difference?
Key questions of leaders coming into the program …
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$771,004
$469,967
$270,610$193,652
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
Baseline End Year 1 End Year 2 End Year 3Change Program
Improving the four pillars will reduce workers’ compensation costs …
$1,378,783 saving over three years in one worksite of 80 people!
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There is no ‘magic silver bullet’ that will enable us to improve wellbeing and performance. However, there are common factors in the leader and cultural behaviours that underpin success in all organisations:
Key learnings …
Distress and morale are central to staff well-being
The quality of the organisational climate you create is criticalto staff well-being and organisational performance
Empathy, Clarity, Engagement, and Learning is the key to success
High performing workgroups can only be established by working‘collaboratively’ to build an engaging environment that motivatesemployees and delivers core business results
Action-learning is the best way to create new behavioural habits
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Dr Peter Hart
Managing DirectorInsight SRCLevel 9, 34 Queen StreetMelbourne, 3000Phone: +61 3 8611 0600Email: [email protected]
Roger Dingle
Senior ConsultantInsight SRCLevel 9, 34 Queen StreetMelbourne, 3000Phone: +61 3 8611 0600Email: [email protected]
Our contact details…
