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THE GALLUP organization 2001 The Gallup organization
Building the
Strength-Based Organization
February, 2003
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THE GALLUP organization 2001 The Gallup organization
Customer Engagement Items:
I can't imagine a world without X company.
X company provides the perfect service for people like me.
X company always delivers on what they promise. X company provides a service I can always trust.
If a problem arises, I can always count on X company to reach afair and satisfactory resolution.
X company always treats me fairly.
X company always treats me with respect.
I feel proud to be a customer of X company.
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THE GALLUP organization 2001 The Gallup organization
Airline customer engagement(Before Sept. 11)
0%
10%
20%
30%
40%
50%
60%
70%
Southwest Delta US Airways American Northwest United
Actively disengaged
Not engaged
Engaged
Fully engaged
-21% -69% -98% -79% -65% -95%
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THE GALLUP organization
2001 The Gallup organization
Mass retail customer engagement
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Amazon Best Buy Target Wal-Mart Circuit City
Actively disengaged
Not engaged
Engaged
Fully engaged
+122% -37% -13% +4% -55%
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THE GALLUP organization
2001 The Gallup organization
Customer Engagement Hierarchy
Cant imagine a world without
Perfect company for people like me
Treats me with respect
Feel proud to be a customer
Fair resolution of any problems
Always treats me fairly
Always delivers on promise
Name I can always trust
Passion
Pride
Integrity
Confidence
Process
People
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THE GALLUP organization
2001 The Gallup organization
The Q12TM
Items
I know what is expected of me at work.
I have the materials and equipment I need to do my work right.
At work, I have the opportunity to do what I do best every day.
In the last seven days, I have received recognition or praise for doing good work.
My supervisor, or someone at work, seems to care about me as a person.
There is someone at work who encourages my development.
At work, my opinions seem to count.
The mission/purpose of my company makes me feel my job is important.
My associates (fellow employees) are committed to doing quality work. I have a best friend at work.
In the last six months, someone at work has talked to me about my progress.
This last year, I have had opportunities at work to learn and grow.
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THE GALLUP organization
2001 The Gallup organization
Q12TM
Meta-Analysis: 2000
36 companies from 21 industries
7939 business units
198,514 employees 5 business outcomes
Turnover/retention
Customer
Safety
Productivity
Profitability
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THE GALLUP organization
2001 The Gallup organization
Q12TM
Meta-Analysis: 2000
Business Units in the Top Quartile (compared to Bottom
Quartile) according to their Grand Mean score are:
50% more likely to be above the median in Retention 56% more likely to be above the median in Customer Loyalty
50% more likely to be above the median in Safety outcomes
38% more likely to be above the median Productivity
27% more likely to be above the median Profitability
70% more likely to be above the median in Total Performance
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THE GALLUP organization
2001 The Gallup organization
1997-2001
We have posed the Q12TM
items to 3 million
employees in 350 companies.
We have also posed the Q12TM
items to
nationally representative samples of the
working population in the U.S., UK,
Germany and Japan.
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THE GALLUP organization
2001 The Gallup organization
Q12TM
Finding #1:
Over 70% of U.S. employees are not engaged
at work.
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THE GALLUP organization
2001 The Gallup organization
A comparison of employee engagement across countries.
(Source: Random samples of the working populations over 18 yrs of age.)
16 20 15 19
55
63 6972
2917 16
9
0%
20%
40%
60%
80%
100%
Engaged
Not Engaged
Actively Disengaged
US UK Germany Japan
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THE GALLUP organization
2001 The Gallup organization
Q12TM
Finding #2:
All organizations cultures are surprisingly
inconsistent.
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THE GALLUP organization
2001 The Gallup organization
2.6
2.8
3
3.2
3.4
3.6
3.8
4
4.2
4.4
4.6
4.8
5
2.6 2.8 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6 4.8 5
2000 Workgroup GrandMean
2001Workgroup
GrandMean
Decline
Advance
A Comparison of All Workgroups within one
company: 2000 - 2001
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THE GALLUP organization
2001 The Gallup organization
Q12TM
Finding #3:
The longer employees stay with an
organization the less engaged they become.
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THE GALLUP organization
2001 The Gallup organization
The longer employees stay the less engaged they become.
(Source: Gallup dB, 700,000 employees from the last two years.)
1218 22
23
50
5556 57
3827
22 20
0%
20%
40%
60%
80%
100%
Engaged
Not Engaged
Actively Disengaged
Less than
6 mos6 mos-
3 yrs
3 yrs-
10 yrs
More than
10 yrs
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THE GALLUP organization
2001 The Gallup organization
What is the best way to increase one
persons performance?
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THE GALLUP organization
2001 The Gallup organization
This is how the worlds best managers answer:
Focus on each employees strengths,manage around his/her weaknesses
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THE GALLUP organization
2001 The Gallup organization
Maintain each employees strengths,
work on fixing his/her weaknesses.
Most organizations are built around
exactly the opposite answer:
T h id d hi i G ll k d hi i
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THE GALLUP organization
2001 The Gallup organization
To test how widespread this answer is, Gallup asked this question
around the world: Which do you think will help you improve
the most? Knowing your Strengths or Knowing your weaknesses?
41% 38% 38%29%
24% 24%
0%
20%
40%
60%
80%
100%
U.S. UK Canada France Japan China
Percent knowing your Strengths
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THE GALLUP organization
2001 The Gallup organization
Develop the performanceby rating the person
Define the required competencies
Rate the person on these
competencies Identify which competencies the
person lacks
Encourage/train the person to
improve in these areas
Rate the person next year
Select/Promote people who do
better on the required
competencies
In most organizations the
Weakness-Prevention method looks like this:
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THE GALLUP organization
2001 The Gallup organization
The Weakness-Prevention method is founded on
three assumptions:
All these behaviors can be learned.
The best in a role all display the same behaviors.
All these behaviors should be learned, because weakness-
fixing leads to success.
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THE GALLUP organization
2001 The Gallup organization
The Weakness-Prevention method is founded on
three assumptions:
All behaviors can be learned.
The best in a role all display the same behaviors.
All these behaviors should be learned, because weakness-
fixing leads to success.
Some behaviors can be learned. Many prove very hard to learn.(Talent vs. Skills & Knowledge)
The assumptions of
the worlds best managers
The best in a role all create the same outcomes, using different
behaviors.
Weakness-fixing prevents failure. Strengths-building leads to
success.
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THE GALLUP organization
2001 The Gallup organization
Rate the performance,develop the person
Develop the performanceby rating the person
Define the required
competencies
Rate the person on thesecompetencies
Identify which competencies
the person lacks
Encourage/train the person to
improve in these areas
Rate the person next year
Select/Promote people who do
better on the required
competencies
Define the required performance
outcomes
Rate the person on theseperformance outcomes
Identify the persons talents and
non-talents
Help the person strengthen his
talents and manage his weaknesses
Rate the outcomes next year
Select/Promote people who possess
the talents necessary for the role
The Strengths-based organization will look
like this:
F Di i li
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Discipline 1:
Hold all employees
accountable for their local
performance metrics.
Discipline 2:
Teach all employees to
identify, deploy and
develop their strengths,
and the strengths of their
DRs.
Four Disciplinesto build a Strengths-Based Organization
Discipline 3:
Align all performance
management systems
around identifying,
deploying and developing
strengths
2001 The Gallup Organization
Discipline 4:
Design and build each
role to create world class
performers in the role.
F Di i li
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Performance measurement
Performance appraisal
Employee development
Succession planning
Identify the talents common to the
best.
Build a ladder that leads from good,
to great to world-class. Incentemployees to climb these rungs.
Capture the best in the role
describing what they do differently.
Instill a common language to
distinguish the teachables from
the unteachables.
Reveal each persons strongestand weakest talents
Teach each employee how to
strengthen these talents, and the
talents of their DRs.
Discipline 1:
Hold all employees accountable
for their local performance
metrics
Business results
Employee Engagement
Customer engagement
Discipline 2:
Teach all employees how to
identify, deploy and develop their
strengths.
Discipline 4:
Design and build each role to
create world-class performers in
the role.
Discipline 3:
Align all performance
management systems around
strengths
Four Disciplinesto build a strengths-based organization
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THE GALLUP organization
2001 The Gallup organization
2618 6
51
49
23
2333
71
0%
20%
40%
60%
80%
100%
1999 2000 2001
A 250 bed hospital (n=700)
- Top 10% (out of over 200 hospitals) in productivity.
- Increased their physician sat. scores by 30 percentile points.
- #1 in their division in patient satisfaction scores.
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THE GALLUP organization
2001 The Gallup organization
A comparison of the impact of
Strengths and Competencies over a 4 year period.
0
20
40
60
80
100
1998 1999 2000 2001
Strengths:3 hospitals Competencies:5 hospitals
Percentile
in Q12 dB
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THE GALLUP organization
2001 The Gallup organization
Building the
Strength-Based Organization
February, 2003
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