Leading a Change Communications Program Based on an Employee Engagement Approach IABC San Diego October 19, 2011

1. Leading a Change Communications Program Based on an Employee Engagement Approach IABC San Diego October 19, 2011

3. Some Of Our Experience

4. A Few Assumptions • Employee engagement is the critical component in fully leveraging employee performance for positive business outcomes. • Employee Engagement leads to: • Stronger customer engagement • Higher sales • Better financial performance • Increased stock price • Higher retention/lower attrition • Trust in leadership/management • More efficient initiative deployment • etc…

5. How Engaged Are We? • It would take a lot to get me to leave [my organization]. • Being part of [my organization] motivates me to go beyond what is expected. • I recommend [my organization] as a great place to work. • I love working for [my organization]. • In addition to other studies, People-Metrics’ (Engagement Strategies’ research Partner) fewer than 1 in 3 employees are engaged • If this is how Employees feel in ordinary times… • Manpower: 84% are inclined to leave in 2011!

6. Doing More with Less

7. Why your role is vital in engagement • Growth, competitive advantage, continuous improvement, etc., and the change required to do so rely on employees being aware of what’s happening, accept what needs to change, align with the vision and take prescribed action to reach goals faster. • Communication is one of the most powerful tools available to executives to drive the levels of engagement needed for sustainable performance. • There is an opportunity to drive increased business value through effective change communications that help your executives reach goals faster. • The employee communications function is uniquely positioned to keep a “finger on the pulse” of the organization, with the potential to be of tremendous value to management.

8. Why your role is vital in engagement • You own one of the most powerful (and most underutilized) corporate disciplines to drive engagement and produce positive business outcomes. • There has never been a better time, or more pressing need, for IC to play its most significant corporate role ever—Your moment is now! • Are you strategic, are you valued, are you resourced? • What do you need to do to elevate your role? • How do you realize the full potential of your function?

9. Our Approach Research Strategy Execution EMPLOYEE ENGAGEMENT DISCOVERY EMPLOYEE ENGAGEMENT ADVANTAGE EMPLOYEE ENGAGEMENT WORKSTREAM Employees • Understand the vision • Know what is expected of them and act accordingly • Exhibit enhanced commitment and engagement • Perform better

10. Strategy • Interpret empirical data & identify key engagement drivers. • Define what needs to happen within an organization to achieve a desired future state. • Recognize obstacles to success. • Define Employee Value Proposition. • Create positioning and messaging platforms. • Embrace “Engagement as a Management Discipline.” • Communication drives increased engagement. The process: AWARENESS ACCEPTANCE ALIGNMENT ACTION Prompt specific actions and desired behaviors to mobilize employees to accelerate reaching business objectives. Ensure employees have clarity around vision, strategy, brand, culture and values. Build support so that employees understand what is expected of them and the responsibility they have in supporting goals. Draw the line-of-sight for employees so they recognize their role within the organization & how their contribution is important to success. EMPLOYEE ENGAGEMENT ADVANTAGE

11. Some thoughts to consider • Do you really know your audiences? Really know them? • How specific do you get with segmented stakeholders? • Do you have your “finger on the pulse” for real-time adaptation • Are you working with directly with line managers? • Are you at the C-suite table? • Is the message being translated? • Does the message resonate? • Are you filtering your communications through the prism of enabling change, improved performance and positive business outcomes? • Is your IC function central to driving change in your organization? • Are executives and leaders an impediment to change?

12. Perception Matters

13. Most corporate initiatives fail to live up to expectations • M&A, new strategies, company transformation and corporate initiatives focus heavily on financial criteria, process and operational changes; yet regularly fail to have the desired impact. • This is often due to poor leadership and ineffective communication leading to a lack of employee engagement and disappointing results. • Ensuring employees are committed to their organizations and in alignment with company strategy is the key element in ensuring execution of programs that lead to sustainable high performance with demonstrable ROI. • Communications that Drive Employee Engagement is the missing ingredient: • However, HR usually owns engagement research—but is less effective at what needs to follow. • The Internal Communications Function should play a significant, if not lead role, in employee engagement strategies.

14. The Sony Pictures Story • 2007 Employee survey identified many areas for improvement • Japan engagement at 5% (#1 priority to fix—2nd biggest market for SPHE) • Many issues and challenges in Japan • Pilot program to fix problems Initial Challenge • Deployed an updated and enhanced survey that provided a deeper and more accurate understanding of the localized issues and challenges. • Implemented a formal communications program. • Built a leadership development program. • Developed Workstreams that overcame many traditional and bureaucratic obstacles while involving all staff in the solution. • Created Personal Action Plans for key managers that reshaped thinking and ensured accountability. Solution • 150% increase in engagement within 6 months • 300% increase in satisfaction with internal communications. • Cultivated a motivated and effective team that significantly exceeded revenue targets. Results • Developed and deployed a revitalized and improved Employee Engagement approach for the entire global enterprise. • Designed and deployed an improved survey resulting in statistically relevant and dependable data including true engagement indexes. • Established ability to provide counsel and actionable reporting on areas for improvement by region, country, department and team. • Dramatically improved engagement in most areas over past 3 years Expanded Value

15. Other Activities And Outcomes • Created Global workstreams around core initiatives • Empowered teams (to the local level) to develop solutions they felt would contribute to higher engagement and improved performance • Some of these local initiatives were so successful they became best practices, e.g. improved communications • If we stopped the annual survey now we’d have mutiny • Employees know their voice is heard and their opinions valued • Executive team is no longer skeptical—this works • Teams with higher engagement have performed better (e.g. Canada office went from 24% to 60% and is now at 75% Engagement—it’s a transformed organization that is firing on all cylinders) • Engagement has had a positive customer impact

16. Employee and Customer Engagement-Our adopted model

17. How I Use The Data • Personal assessment of my performance-especially with my direct reports (Personal Action Plan) • Identify key priorities based on what my people need to succeed (not my opinion of what would work) • Create workstreams in areas of key concern or potential advantage • Empower my people to develop creative ideas for improvement, implement solutions and drive the change they need to perform better • Identify managers that need support to improve and/or become better leaders (provide them with coaching and training) • Validate that my team is aligned with the SPHE vision and our commercial objectives • Focus on improving customer engagement (in conjunction with customer survey)

18. Discussion: Challenges and Considerations • How do you get leader and manager support? • How do you get the resources? • Are you effectively partnering with other advocates/leaders: HR, Division Presidents, etc? • Is there an environment of acceptance for what is said and done? • Do you know your Communications Value-Access Index? • Some core considerations: • It’s not about Day 1. Day 2, Day 20, Day 200 are when programs succeed • Not all change is the same • Change is not linear • Change happens in the trenches (cubicles) • The bottleneck is not usually the average employee • It’s often a carrot and stick approach that’s needed • Don’t confuse effort with outcome • Create the “burning platform” to justify/motivate

19. What Success Looks Like • Results consistent with expectations • Consistency and alignment throughout the targeted stakeholder group/organization • An engaged, motivated, goal-oriented workforce • Confidence in: • Leadership • Strategies • Future • Metrics demonstrate program effectiveness • Your effort gets its due and you’re a hero

20. Questions to consider • What are my obstacles to developing an Employee Engagement Change Communications approach? • What is the level of engagement within my key stakeholder audience(s)? • What can I do to: • Build awareness? • Promote acceptance? • Create alignment? • Prompt action? • Who do I call for help?

21. Ensuring Employees Ignore You (A Leader’s Guide) • A real quote from a real CEO of a Fortune 500 company: “Don’t do an employee survey—we may need to do something.” •  You’re doing a great job already of alienating everyone. Here’s how to finish the job: • Presume you’re right. • Don’t listen. • Don’t investigate. • Establish more teams and committees. • Launch a new initiative to mitigate the failure of the prior initiative. • Assume “cascading” will work or that your memo was read. • Blame someone else (preferably a large group critical to your success). • Ignore reality when the data contradicts your established position. • “Spin.” • Hire a consultant. (Just kidding, this actually works.)