Employee Engagement and Innovation

EUWIN Conference

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BACKGROUND

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THE BIGGER PICTUREThe context for WHY Employee Engagement is critical

The 20th Century model was ‘Business as Usual’.MAKE EFFICIENT – aligned but not engaged, central direction, command and control.

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MOVEMENT STRUCTUREEngage for Success is a movement committed to the idea that there is a better way to work, a better way to enable personal growth, organisational growth and ultimately growth for Britain by releasing more of the capability and potential of people at work.

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WHAT IS ENGAGEMENT?

>‘A workplace approach designed to ensure that employees are committed to their organisation’s goals and values, motivated to contribute to organisational success and able at the same time to enhance their own sense of wellbeing.’

>Professor David Guest>OR, IN OTHER WORDS…….

>‘It’s all about the people!’

ENGAGE FOR SUCCESS 201326/11/13

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See and feel the impact of disengagement every day!

ENGAGEMENT AND INNOVATION ARE WE CLEAR?

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ENGAGEMENT AND INNOVATION ARE WE CLEAR?

“Innovation is about harnessing and exploiting good ideas, whether big or small, to make us better at what we do”

Incremental Improvement Radical Advance

People that have ideas and people who turn ideas to reality

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We have all seen and fundamentally get the connection between employee engagement and firm performance:

- Productivity- Profit- Customer service- Efficiency

ENGAGEMENT AND INNOVATION ARE WE CLEAR?

But the link between engagement and innovation?

1. We know employee engagement matters: there is solid evidence that companies with highly-engaged employees outperform those with less-engaged employees.

2. We know innovation matters. While there is no direct link between R&D expenditure and firm performance, studies looking more systematically at the underlying process provide evidence that companies investing in innovation outperform those that do not.

3. The link between engagement and innovation, while intuitively obvious, has not been carefully studied in the management literature.

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Julian Birkenshaw

WHAT DID THE RESEARCH TELL US?

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Innovation Inputs

Innovation Process

Innovation Outputs

Engaged employees simply

work harder, so they provide greater and higher quality inputs (Sauermann

& Cohen)

Engaged employees look for new ways of adding

value to the process, e.g.

continuous improvement, making

connections, collaborating

(Sparrow)

Engaged employees find

direct opportunities to innovate, they

come up with ideas and follow them

through (Pinchott, Kanter, Birkinshaw,

Burgelman)

High levels of employee engagement lead to greater levels of innovation

WHAT DID THE RESEARCH TELL US?

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Focussed our energy on identifying what drives and enables

an innovative culture

Identified how that links back to the four enablers of engagement

Identified the measures, case studies and tools that will enable

organisations of all sizes to realise the potential of all of their

employees to innovate enabling incremental improvement through

to radical advance

WHERE HAVE WE FOCUSSED OUR ATTENTION?

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WHAT DID WE FIND?

• The words and the music matched at all levels

• There was an energy and commitment to engagement to drive innovation

• There was a clarity that incremental and radical where both valued

• Most of all there was a link back to the four enablers ……….

Enablers of Engagement

1.Strategic narrative

2. Engaging managers

3. Employee voice

4. Organisational Integrity

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Enablers of engagement

Enablers of innovation

Strategic Narrative

1. Thought strategically and often take the long-term view 2. Customer-focused and market-oriented

EngagingManagers

3. Senior managers demonstrated through words, actions and resources that innovation was important4. Employees where empowered to experiment and make

decisions; things could happen without much bureaucracy or fear of blame if things don’t go well

Employee Voice

5. Transparent organisation; communicate clearly and often with each other, whatever the level or team6. Encouraged to and have the opportunity to question and challenge the way we do business in our own and other parts of the business

Organisational Integrity

7. Innovation is embedded in our values and is expected from everyone8. Those who innovate get recognised and rewarded in our business

ENGAGAMENT AND INNOVATION Links to the four enablers

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Front of the pack

In the game

Still in the

blocks

8. Those who innovate get recognised and

rewarded in our business

7. Innovation is embedded in our values and

is expected from everyone

6. We are encouraged to question and

challenge the way we do business and give

ideas on how things can be improved in our

own and other parts of the business

5. We are a transparent organisation - we

communicate clearly and often with each other, whatever our level or team

4. We feel empowered to experiment and

make decisions; we can make change happen without much bureaucracy or fear of blame if things don’t go well

3. Our senior managers demonstrate through

words, actions and resources that innovation is important for our company

2. We are customer-focused and market-oriented

1. We think strategically and often take the long term view

Actions to improveCommentsSelf ratingEnabler

Front of the pack

In the game

Still in the

blocks

8. Those who innovate get recognised and

rewarded in our business

7. Innovation is embedded in our values and

is expected from everyone

6. We are encouraged to question and

challenge the way we do business and give

ideas on how things can be improved in our

own and other parts of the business

5. We are a transparent organisation - we

communicate clearly and often with each other, whatever our level or team

4. We feel empowered to experiment and

make decisions; we can make change happen without much bureaucracy or fear of blame if things don’t go well

3. Our senior managers demonstrate through

words, actions and resources that innovation is important for our company

2. We are customer-focused and market-oriented

1. We think strategically and often take the long term view

Actions to improveCommentsSelf ratingEnabler

Once you know where you are we will provide you with the case studies and the tools to help you try to move your position

In the running

ENGAGAMENT AND INNOVATION Links to the four enablers

Engagement and Innovation 15

Enablers of engagement

Enablers of innovation

Strategic Narrative

1. Thought strategically and often take the long-term view 2. Customer-focused and market-oriented

EngagingManagers

3. Senior managers demonstrated through words, actions and resources that innovation was important4. Employees where empowered to experiment and make

decisions; things could happen without much bureaucracy or fear of blame if things don’t go well

Employee Voice

5. Transparent organisation; communicate clearly and often with each other, whatever the level or team6. Encouraged to and have the opportunity to question and challenge the way we do business in our own and other parts of the business

Organisational Integrity

7. Innovation is embedded in our values and is expected from everyone8. Those who innovate get recognised and rewarded in our business

ENGAGAMENT AND INNOVATION Links to the four enablers

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Our senior managers demonstrate through words, actions and resources that innovation is important for our company

Innocent Redgate Software HCL Ella’s Kitchen

Top stories about this enabler

• Many if not most senior managers regularly talk about innovation that is happening and needs to happen in the organisation

• Many if not most senior managers spend their time leading on and supporting innovation work inside the organisation

• Senior managers spend time exploring innovation and seeking inspiration from outside the organisation

• Resources – financial and people –are allocated to experimenting with new ideas and implementing change across the whole business

• We are regularly given time out of our everyday roles to explore new ideas and implement innovation / change.

• Some senior managers talk about innovation that is happening and needs to happen. It’s a relatively recent thing and we are starting to hear more

• Some senior managers spend their time leading on and supporting innovation work inside the organisation

• Some senior managers spend time exploring innovation and seeking inspiration from outside the organisation

• Resources – financial and people –are allocated to experimenting with new ideas and implementing change in pockets of the business

• We can take time out of our everyday roles to explore new ideas and implement innovation / change from time to time

• Innovation isn’t a topic that’s discussed by senior managers

• Innovation activity is reserved to a small number of people and teams and senior managers

• The organisation is fairly internally focused, with senior managers spending little or no time looking for ideas from outside the business

• There is little or no resource dedicated to innovation

• People focus on their day-to-day job and we are not encouraged / allowed to spend time exploring new ideas or implementing innovation / change.

Front of the packIn the runningStill in the blocks

Innocent Redgate Software HCL Ella’s Kitchen

Top stories about this enabler

• Many if not most senior managers regularly talk about innovation that is happening and needs to happen in the organisation

• Many if not most senior managers spend their time leading on and supporting innovation work inside the organisation

• Senior managers spend time exploring innovation and seeking inspiration from outside the organisation

• Resources – financial and people –are allocated to experimenting with new ideas and implementing change across the whole business

• We are regularly given time out of our everyday roles to explore new ideas and implement innovation / change.

• Some senior managers talk about innovation that is happening and needs to happen. It’s a relatively recent thing and we are starting to hear more

• Some senior managers spend their time leading on and supporting innovation work inside the organisation

• Some senior managers spend time exploring innovation and seeking inspiration from outside the organisation

• Resources – financial and people –are allocated to experimenting with new ideas and implementing change in pockets of the business

• We can take time out of our everyday roles to explore new ideas and implement innovation / change from time to time

• Innovation isn’t a topic that’s discussed by senior managers

• Innovation activity is reserved to a small number of people and teams and senior managers

• The organisation is fairly internally focused, with senior managers spending little or no time looking for ideas from outside the business

• There is little or no resource dedicated to innovation

• People focus on their day-to-day job and we are not encouraged / allowed to spend time exploring new ideas or implementing innovation / change.

Front of the packIn the runningStill in the blocks

Ind

icat

ors

ENGAGAMENT AND INNOVATION Links to the four enablers

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• Sweat the small stuff day• Down tools • 9 postcards• Whiteboard tours

• Recruiting entrepreneurs• Just go with it – 70% confidence

• Ella’s thinking day• Give it a go programme• Ella’s classroom

HCL

10 Case studies that link back to the enablers

Allow you to learn and

apply

• The Value portal• Mad Jam• American Idol• The Power of One

ENGAGAMENT AND INNOVATION The case studies

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