Crafting the employee experience

what we know… crafting the employee experience

Presented by: Peter Baverso

what we know Experience Value Chain

Three Value PropositionsCustomer ExperienceEmployee Experience Financial Value Proposition

return in assets

operating margin

revenue growth

customer impression customer loyalty

employee attitude customer impression revenue growthdrivesdrives

attitude about the

job

attitude about the company

employee retention

employee behavior

what we know Experience Value Chain

Employee Value ChainEmployee Experience Financial Value Proposition

5 unit increaseemployee attitude

0.5 % increaserevenue growth

drives

return in assets

operating margin

revenue growth

FLOW Behavior

Company

JOB

Retention

Employee Engagement Drives Customer Loyalty

● 5% increase in customer loyalty = ● 25% increase in profits ● 26% return to shareholders ● 29.5 % increase in market value ● 57% higher returns than peers

Employee Engagement Making the Case

HIGH ENGAGEMENT COMPANIES

● High engagement companies improved operating income 19.2%

● 13.2% improvement in net income growth over a one-year period

● 27.8 per cent improvement in EPS growth

LOW ENGAGEMENT COMPANIES

● Low engagement companies operating income declined 32.7%

● 3.8% decline in net income over a one-year period

● 11.2% decline in EPS over the same period.

what we know Experience Value Chain

Employee Value ChainEmployee Experience Results

24 unit increaseemployee attitude

20 % decreasein operating costs

drives

52 % increase in response time

$1 MM margin

revenue growth

Employee Engagement

FLOW Behavior

Company 46% decrease in vacancies

JOB 90th Percentile

Retention97% decrease

in turnover

“The architecture of participation”

—Tim O’Reilly

Architecture of Engagement

Execution

CultureStructureFLOW

Structure

“People want to be part of something larger than

themselves. They want to be part of something they’re really proud of, that they’ll fight for,

sacrifice for, trust.” —Howard Schultz, Starbucks

Organizational Structure

Organize functions into five communities of practice focused on member experiences and illumination

Provide organizational and member support in four key areas – touchpoint critical

Structure to Engage

● Clearly articulate strategy and vision ● Develop an organization of leaders – at all

levels of the organization ● Create a structure that transfers decision

making to the most appropriate level of the organization

● Allocate resources purposefully to allow employees to succeed

● Allow fluid boundaries across communities of practice

● Reward at the touchpoint level

People

● Know your employee ● Who are they? ● What do they want? ● Why are they there? ● What excites them?

● How do we make money? ● Vanilla Syndrome?

People Listen to Them

QuantitativeQualitative Passive

Culture

“We are a ‘Life Success

Company”’ founder, RE/MAX

Cultural Artifacts

● Traits and behaviors ● Language and symbols ● Heritage and traditions ● Shared values ● Performance standards ● Quality standards ● Reinforcement strategies

“In the end, management doesn’t change culture.

Management invites the workforce itself to change the

culture.”

—Lou Gerstner

Culture of Success

● Compensate and reward purposefully ● Educate and enlighten

● Benefits ● Financial Education ● Professional Development

● Involve employee in decision making ● Choose providers that fit overarching

strategy

Execution

“Nothing is so contagious as enthusiasm.”

—Samuel Taylor Coleridge

Execute to Engage

● Give permission to perform ● Expand the boundaries of performance ● Be authentic and align choices ● Hire good people and get out of the way ● Embrace expansive thinking and risk

taking ● Celebrate risk taking and innovation

“It’s always showtime.”

—David D’Alessandro, Career Warfare

Questions?

Thank You!