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using employee surveys to drive organisational change: tips & traps from practitioners

Chair & Organiser: Dr Peter Langford, Voice Project, Macquarie UniMaureen Ayers, Manager Human Resources, Ku-ring-gai CouncilFrank Sedmak, GM People Learning & Culture, The Spastic CentreRichard Boggon, GM Human Resource Strategy, NSW RTAJon Williams, Partner in Performance Improvement, PwC

8th Industrial & Organisational Psychology ConferenceManly, Australia, 25thJune 2009

Page 1©Voice Project

AYERS, M. (Ku-ring-gai Municipal Council), & DYER, L. (Voice Project, Macquarie University)

This presentation examined how Ku-ring-gai Council is transforming its organisational culture into one that is more service-focused. A system-wide overhaul over the last three years has addressed leadership, communication, planning, structure, and performance management. An employee survey was used to involve employees, include their input in the change process, and assist with setting priorities for the organisational and HR initiatives. In response to the survey, the General Manager and Directors became more visible and accessible, communicating more broadly, and attending more meetings and social events with staff. A three-phase leadership program was undertaken to improve the leadership skills in areas such as managing change, presentations and coaching. A collaborative working group was established to redesign the performance appraisal system, in order to link individual jobs with management objectives and clarify performance criteria. A follow-up employee survey one year later showed that within a short time-span the Council has been able to substantially improve staff’s level of engagement in conjunction with increases in the percentage of organisational objectives being met and reducing processing time for community development applications. This presentation discussed the key change tools and methodologies used to achieve these organisational and HR outcomes.

Performance improvement in the public sector: Improving leadership, performance management and engagement at Ku-ring-gai Council

PASSION &

PROGRESSMaureen Ayers

Manager Human ResourcesKu-ring-gai Council

26 June 2009

Ku-ring-gai Council June 2009 2

DEALING WITH DEMONS

First Things First in 2004

Industrial Relations StrategyGrievance Procedure

Industrial Relations Training

Inaugural Management Workshop

Working Parties

New General Manager in 2006

Organisational Restructure

Ku-ring-gai Council June 2009 3

FIRST CLIMATE SURVEY 2006

First Climate Survey 2006

92% response rate

Two key issues identified

Leadership

Communications: top down, bottom up and sideways

Leadership StrategyOrganisational Change ProgramsNew Approach to the Management Plan

Ku-ring-gai Council June 2009 4

Second Climate Survey 2007Overall Results

93% response rate

5% increase in factors relating to employee engagement14% increase in factors relating to bottom line results16% increase in factors relating to organisation direction

Details27% increase in the belief that the GM and directors keep people informed22% increase in the feeling that performance is reviewed and evaluated often enough19% increase in employees’ belief that Council’s future is positive17% increase in employees’ belief that Council is successful

Ku-ring-gai Council June 2009 5

IMPORTANT DEVELOPMENTS

Skills, Performance, Remuneration & Rewards Agreement 2007

Enhanced focus on consultative planning processes

Strategic plans linked to employee’s work plans

Staff Briefings and the Depot BBQ

Leadership Programs: coaching and mentoring

Building the Ku-ring-gai Council Workforce Plan

Ku-ring-gai Council June 2009 6

WHERE TO NEXT?Career Opportunities

Regional Cooperation

Agreement – 2009 Update

Next Steps in Leadership

Integrated Planning

Refinement of the Workface Plan

Development of Supportive Policies and Programs

Page 2©Voice Project

SEDMAK, F. (The Spastic Centre), & LANGFORD, P. (Voice Project, Macquarie University)

Frank Sedmak discussed his experience running six employee surveys during his tenure as General Manager Human Resources at The Spastic Centre. The particular focus of this presentation was the challenges of maintaining a commitment for action when results start to plateau following many years of consistent improvements in human resources practices. In many ways, underperforming organisations can demonstrate a greater justification for action because of their lower survey scores. The urgency and importance of acting upon results, however, can be harder to argue for strongly performing organisations. Frank discussed why The Spastic Centre’s “You’re The Voice” staff survey was originally conceived, and how the purpose and implementation of the survey has evolved over six years. The executive leadership team, managers and staff are now accustomed with the roll-out and reporting of the survey, but familiarity runs the risk of complacency and over-confidence. Frank presented his tips for keeping interest, commitment and energy levels high when using employee surveys as a long-term strategy for driving change.

Succumbing to success: How to maintain momentum following many years of employee surveying and continuous improvement at The Spastic Centre

SUCCUMBING TO SUCCESS

The Spastic Centre Story

Frank SedmakGeneral ManagerPeople Learning & Culture

2002 in an NGO far, far away

Succumbing To Success

• Founded in 1945

Succumbing To Success

Full time Part time Casual Supported Employees

Total %

Male 77 70 11 99 257 27

Female 266 299 55 75 695 73

TOTAL 343 369 66 174 952

• $65m forecasted turnover in FY 09/10• Over 70 sites throughout NSW & ACT

• 716 FTEs

Succumbing To SuccessThe Issues

• Pay & performance not linked

• Pay not externally benchmarked

• Career paths not clear or non-existent(lots of silos)

• Inefficient grade structure

Succumbing To SuccessThe Issues (continued)

• Inefficient performance appraisal system

• Disparate training and development goals for individuals

• Lack of organisational climate and cultural measures

Succumbing To SuccessThe Goals

To:

• Attract and retain people with relevant competencies

• Align roles and people with The Spastic Centre's strategic plan and it’s key goals and objectives

Succumbing To SuccessThe ApproachTo align and integrate the following HR activities:

• Recruitment• Performance assessment• Learning and development• Career planning• Succession planning• Job design and grades• Performance assessment

Succumbing To SuccessThe ResultThe Voice survey tool has provided clear and unambiguous results and therefore has contributed to:

• Continued improvement in overall employee level of participation rates and engagement

• 2002 – 35%; 2008 – 68% (participation)• 2003 – Top 24%; 2008 – Top 18% (engagement)

Succumbing To SuccessThe Result (continued)

• More accurate targeting of areas requiring attention

- Change and Innovation – up 25%- Organisational Objectives – up 21%- Rewards and Recognition – up 21%- Recruitment and Selection – up 18%

Succumbing To SuccessThe Result (continued)

• Resulting in lower staff turnover (averaging between 10-15% over 7 years)

• EOWA Employer of Choice for Women2007-08-09

Succumbing To SuccessThe Ongoing Challenge (continued)

• Keep linking organisational actions, management decisions, etc with employee survey results

• Ensuring that the survey tool is a requirement in the assessment of organisational results

Succumbing To SuccessThe Ongoing Challenge (continued)

• Communication and actions have to be both at a corporate and local level – highlight and celebrate successes

• First line and middle managers must own the strategy – making them accountable for achieving the desired results

Succumbing To SuccessThe Ongoing Challenge (continued)

• Strongly promoting each survey – reminding employees of the purpose and importance of their participation

Page 3©Voice Project

BOGGON, R. (NSW Roads & Traffic Authority), & BASILE, F. (Voice Project, Macquarie University)

Richard Boggon, General Manager Human Resource Strategy at the NSW RTA, discussed the implementation and benefits of one of the largest ongoing leadership assessment and development programs in Australia. Over the past two years the NSW Roads & Traffic Authority has implemented successive waves of leadership assessment, feedback and development, covering the top 130 leaders in 2007 and repeating the initiative to cover the top 300 leaders in 2008. The driving forces behind the assessment and development initiative were an ageing workforce and skill shortages in critical technical roles. An “Upward Feedback” leadership assessment survey was tailored and delivered online to nearly 2,500 participants in order to assess performance against the RTA’s leadership competency framework. A carefully managed implementation has achieved a 90% response rate to the survey. The survey highlighted priorities for leadership development including building coaching skills, managing underperformance, emotional intelligence, and building knowledge of leadership theory. In the second wave of the leader survey, improvements have been observed in strategic focus, political and economic awareness, decision-making, individualised attention, and delivering feedback to staff. Richard discussed details about how the assessment and development initiatives have been implemented and acted upon.

Improving leadership capability through one of Australia’s largest ongoing leadership assessment and development initiatives

Leadership DevelopmentThe Foundation of Our Workforce Strategy

Richard Boggon General ManagerHuman Resource Strategy

The organisation…

$4.5 Billion Annual Revenue/Budget$76 Billion in Assets under management9300 People (FTE = 7000)

Diverse OrganisationInfrastructure OrganisationPlan, Develop, Construct, Maintain andOperate New South Wales RoadsNetworkLicense, Register, Educate and Regulate Private and Commercial Network Users

Diverse WorkforceEngineers & Technical ProfessionalsSkilled TradesTraffic & Transport Management, Planning & SystemsCustomer Service, (Retail)Contact CentreRoad SafetyRegulation & EnforcementPolicy & PlanningTolling OperationsCommunity Consultation & CommunicationFinance, Legal, Environment, AdministrationResearch

The RTA has a fantastic, talented, highly skilled and diverse workforce

For RTA = 22.87% WorkforceRetiring in 3 – 5 Years

General IndustryAverage is 11.82%

Cost to Replace$104 MillionAgeing Workforce

Defining the workforce issues

Retention Retaining Staff in Skill Shortage Environment is Critical

Average Time To RecruitSkills Shortage

RTA Workforce Strategy Priorities

Driving InnovationSustaining Organisational Performance

Individual and Organisation PerformanceOrganisation Evolution (Optimum Cost & Business Models)Workforce Mobility & FlexibilityStreamlining Process & Decision MakingRe-engineering employment experience

Resourcing for the FutureRenewing Our Workforce

Aligned Business and Resource PlanningTalent Attraction, Acquisition and RetentionTalent Pool Development & Succession ManagementGraduate, Apprenticeship, Traineeship ProgramsEducation and Industry Partnerships

“Growing Our Own”Developing RTA People & Careers

Leadership DevelopmentCritical Technical Skills DevelopmentCareer Pathways & Professional DevelopmentKnowledge Continuity & Innovation in LearningPre and Post Retirement Options

RTA Leaders Framework Dimensions

May/June 2008

Upward Feedback Report for

All RTA Leaders

Summary

Assessment Method & Response Rate

The 2008 RTA Upward Feedback Online Survey:• Consisted of 112 tailored agree/disagree questions, designed to measure

leadership performance across the 8 capabilities specific to the RTA Leadership Framework, including:

– 106 items that measured leadership performance, and– 6 items that measured the important organisational outcomes of ‘employee engagement’

and ‘bottom-line results’

Period open: Officially from May 12th to May 23rd (Kept open until June 27th)

Gap Analysis Capability Level:Where we rated with our Leadership Framework Categories

Ideally, management practices should rest in the oval where there is a

good matchbetween performance and

importance

Gap Analysis – Competency LevelBreaking It Down

Ideally, management practices should rest in the oval where

there is a good matchbetween performance and

importance

Areas of FocusSenior Leaders Initiative

1. Leadership Theory2. Emotional Intelligence3. Coaching for

Performance4. Building a High

Performance Environment

Prepared

Thank you

Page 4©Voice Project

WILLIAMS, J. (PricewaterhouseCoopers)

Jon Williams discussed change “blockers” – those characteristics of unsuccessful employee surveys that fail to deliver adequate return-on-investment. Jon spoke from his vast experience overseeing many large-scale employee surveys in a wide range of organisations and industries. Jon spent 10 years at Hewitt Associates with the last five of those years being Managing Director for Australia and New Zealand, overseeing their “best employer” initiative and hundreds of employee surveys in many of Australia’s largest companies. More recently Jon has been Managing Principal for The Gallup Organization in Australia and New Zealand. He is now a Partner at PricewaterhouseCoopers specializing in organisational culture, leadership and employee engagement. Jon discussed real-life case studies that highlight the importance of “scene-setting” prior to running a survey in order gain commitment, opening leaders up to listen, preparing leaders for bad news, identifying high-level champions for a survey and role models of effective change, and maximising the business relevance of an employee survey. Jon’s presentation helped pull together the key messages from all the presentations in this Practice Forum and conclude the session with some key tips for using employee surveys to drive organisational change.

How to lose friends and alienate people using an employee survey

Ten things I have learnt

From working with the best (and worst) employers

Jon WilliamsPartner, Performance Improvement

A top-down phenomenon

Tolstoy was right

Perception is more important than reality

Get the right talent

“There is no point having an umbrella, if there is a hole in your shoes”

“A rising tide lifts all boats”

“It’s a big wheel that doesn’t come around twice”