how hr led a culture revolution keynote€¦ · balanced scorecard employees were not ... market...

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HostPresentationHowHRLedACulturalRevolution

BobKelleher,April20,2018

HostPresentationHowHRLedACulturalRevolution

BobKelleher

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Well,itsbeenaLongJourney

Soletsbegin…• BobKelleherFormerCHROforAECOM

• GlobalResponsibilitiesfor

• HumanResources• LearningandDevelopment• EmployeeEngagement• PerformanceManagement• InternalCommunications• OrganizationalDevelopment

OrganizationalDevelopment

InternalCommunications

PerformanceManagement

EmployeeEngagement

LearningAnd

Development

HumanResources

ChiefHumanCapitalOfficerPreviously,ExecutiveVicePresident

andCOOforENSR

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Overview- ENSRandAECOMCorporatesnapshot- ENSR“CaseStudy”- Lessonslearned- TransitioningintoAECOM

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ENSRCorporateSnapshot

• HeadquarteredinWestford,MA

• GrossSales- $400M

• 87%PrivateSector

• 5thLargestEnvironmentalFirm

• 3,000Staffin80globallocations

AcquiredbyAECOMin2005

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• GloballeaderinProfessional,Technical,andManagementSupportServices

• Keymarkets:Facilities,Transportation,Water,Environmental

• 500GlobalOfficesinover100countries

• 50,000employees• $6billionofrevenue

AECOM Overview (at the time)

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Markets RankTop 500 Design FirmsPure Design 1Transportation 1Mass Transit/Rail 1Airports 1General Building 1Education 1Government Offices 1Transmission and Distribution 1Program Management 2Correctional Facilities 2Marine and Port Facilities 2Hotels & Convention Centers 2Highways 3Bridges 3Sanitary and Storm Sewers 3Site Assessment and Compliance 3

Top 200 International Design FirmsBuilding 1Transportation 1Asia 1

2008ENR Rankings

AECOMisaleadingglobalproviderofprofessionaltechnicaland

managementsupportservices

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GeographicallyDiverseEmployeeBase

Americas U.K./Europe Asia-Pacific Middle EastCanadaMexicoLatin AmericaUnited States

EnglandFranceGreeceIrelandItalyPolandScotland

AfghanistanEgyptIraqKuwaitLibyaQatarSaudi ArabiaUnited Arab Emirates

AustraliaChinaHong Kong MalaysiaNew ZealandSingapore

400+OfficesinMoreThan100Countries

3,000

11,000

7,00020,000

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History of Employee Engagement at ENSR and AECOM

ENSR’sBusinessStrategyEngagement was the Foundation

EmployeeEngagementTimeline(1998-2002)

EmployeeRetentiongetstheattentionofSeniorManagement

ClientFeedback:“turnoverisaproblem”

1998

“EmployerofChoice”becomesstrategic

Initiative

Turnoverreached22%

1999

MgtLBOwithWingate

NeedtohaveSMTandBODalignment

2000

-Messagegoes“ontheroad”

- NewMissionStatement

“Rhetoricvs.Reality”

2001 2001 2001 2002 2002

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ENSR’sMission



1998


Initiative

Turnoverreached22%

1999

MgtLBOwithWingate


2000




2001

LeadershipWorkshops

Supervisorsweren’tembracingmessage

2001 2001 2002 2002


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“LeadershipWorkshops”

CommunicationStaffDevelopmentRecognitionandMotivationBalance

Alignedwithnewmissionstatement…



1998


Initiative

Turnoverreached22%

1999

MgtLBOwithWingate


2000




2001

LeadershipWorkshops


2001

- TrainingbecomesanInvestment(notaCost)

EmployeeSatisfactionSurvey Results:- TrainingNeeds

2001 2002 2002


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CreatedaLearningCulture



1998


Initiative

Turnoverreached22%

1999

MgtLBOwithWingate


2000




2001

LeadershipWorkshops


2001

- TrainingbecomesanInvestment(notacost)

EmployeeSatisfactionSurvey Results- TrainingNeeds

2001

- EmployeeDevelopmentPlans(with360’s)

SurveyResultsPerformanceReviews

NotWorking

2002 2002




1998


Initiative

Turnoverreached22%

1999

MgtLBOwithWingate


2000




2001

LeadershipWorkshops


2001

-TrainingbecomesanInvestment(notacost)


2001

LaunchedLEAP1

- SurveyResults:

MarginalperformanceAccepted

2002 2002


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LEAP1HighPerformanceResourceMatrix

Performance

Potential

High

Low High

Low

InvestmentPerformer

PotentialTransition

X%

0%

2X%

X%


ClientsFeedback“turnoverisaproblem”

1998


Initiative

Turnoverreached22%

1999

MgtLBOwithWingate


2000




2001

LeadershipWorkshops


2001

-Trainingbecomesaninvestment(notacost)


2001

- EmployeeDevelop–mentPlans(EDPs)

created- LaunchedLEAP1

SurveyResultsPerformanceReviews

NotWorking

2002

RecognitionBudgetsand

CelebratoryCulture

SurveyResults:NotenoughRecognition

2002


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RecognizeandCelebrateSuccesses!!!

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AndOurResultsofFirst4YearsofFocusedEmployeeEngagementEfforts…

– Voluntaryturnoverreducedtoindustry-leading9%

– First-ever100%retentionofourtop15clients

– Recordprofitability

– RecipientofEnvironmentalBusinessJournal’s“GoldMedalAward”forManagementandTransition

– BostonBusinessJournal Awardfor“OneofBoston’sBestPrivateEmployers”

– Short-listedforFortuneMagazine’s “100BestCompaniestoWorkFor”

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TheSetback(2002)

• SignificantbusinessdownturnstartedtooccurinJanuary2002, causedbythefollowingfactors:

• 9/11• ENRON(andourrelianceontheEnergy

sector)• Overalleconomy• Regulatoryclimatesoftened

• CompanywideReductioninForceof10%• SignificantmomentumlostinEmployerofChoiceinitiative

ShiftedfocustoEmployee

Engagement

“EmployerofChoice”Stalled

2002 2003 2003 2003 2003 2004 2005 2006 2007


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• “UnlockingEmployeePotentialtoDriveHighPerformance”

Shiftthemessage…

CompanyPerformance

EmployeePotential

EmployeeEngagement

…neededalignmentbetweenCompanyandEmployees“WeMustWinTogether”

ShiftedfocustoEmployeeEngagement


2002 2003

CreatedCommunication

Protocol

InconsistentMessages

2003 2003 2003 2004 2005 2006 2007




2002 2003

CreatedCommunication

Protocol


2003

- DevelopedLEAP2

Cultureof“OKPerformance”

2003 2003 2004 2005 2006 2007


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LEAP2ProfitandGrowthMatrix– DecFY04ENSR International

North America Operations

-55.0%

-45.0%

-35.0%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%

-70.0% -50.0% -30.0% -10.0% 10.0% 30.0% 50.0%

Growth from 2Q03 to 2Q04

Ope

ratin

g Pr

ofit

2Q04

as

a %

of N

et S

ales

Pittsburgh

Chicago

N. CA

Santa Ana

Water & Nat'l Res.

Milwaukee

Camarillo

Minneapolis

Anchorage

Ft. Collins

Seattle

Energy

Cincinnati

Texas CSC

Petroleum Services

Mid Atlantic

Southeast

ISC

Tox-Ft. Collins

NY CSC

-1.7%

9.4%



2002

CreatedBalancedScorecard

EmployeeswerenotawareofBusiness

Challenges-Misalignment

2003

RevitalizedCommunication

Program


2003

- DevelopedLEAP2


2003 2003 2004 2005 2006 2007




2002




2003


Program


2003

- Developed“Vision07”- LEAP2


2003

EnhancementsToIncentivePrograms

InconsistentRewardsandRecognition

2003 2004 2005 2006 2007


EnhancedRewards

• Incentivesbasedon“Balanced”approach(notjustProfit)

• Bonusesgiventhroughouttheyear



2002




2003


Program


2003



2003



2003

“EmployerBranding”

DifficultyHiring

2004 2005 2006 2007


Give Your Friends the World

Bring Them to Ours

Revitalized Employee Referral Program

Eventually,50%ofAllNewwereviaEmployeeReferrals



2002




2003


Program


2003



2003



2003

“CreatedLEAP3”

AreWeHiringEngagedEmployees

2004 2005 2006 2007


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LEAP3- AttributesMatrix

InvestmentPerformers

PotentialsTransition

• Does not deliver expected results

• Self-limiting

• Major deficiency that’s difficult to overcome

• Client and quality issues

• Poor technical match for market

• Some skills- still developing• Not yet producing, but projects great

confidence• In spite of production limitations, still inspires

others• Looking to take on more

• Solid problem solving skills

• Do what is expected

• High level of competence in core skill areas

• Cause no problems

• In Comfort zone – not willing to go beyond

• Innovative and creative

• Impact growth of company

• Inspire others

• Active pursuit to achieve goals and values

• Function above and beyond norm

• Give more than you ask

• Go-to person, most trusted to pull through

Performan

ce(Edu

catio

nan

dSkills)

Potential(BehaviorandTraits)

High

Low High

Low

ItisAttitude,notAptitude,thatequalsAltitude







Program






- “EmployerBranding”


AcquiredbyAECOM

AchievedRecordProfits/Growth

2002 2003 2003 2003 2003 2004 2005 2006 2007








Program








AcquiredbyAECOM


2002 2003 2003 2003 2003 2004 2005 2006

AECOMIntriguedbyEmployeeEngagement

ENSRaskedtoleadEmployeeEngagement

forAECOM

2007








Program








AcquiredbyAECOM


2002 2003 2003 2003 2003 2004 2005 2006

AECOMIntriguedbyEmployeeEngagement

ENSRaskedtoleadEmployeeEngagement

forAECOM


Howdoweget47,000employees

engaged?

2007

“LeadinganEngaged

Workforce”Training

“Leading an Engaged Workforce”A Workshop on Leadership “Best Practices”

ResultsofRevitalizedEmployeeEngagementEfforts–2002–2007

• In2005,voluntaryturnoverreducedagaintoindustry-leading7%

• Best36monthoperationsperformanceinCompanyhistory

• Employeeengagementbecameamarketdifferentiator– HBScasestudy

• TheHRguybecametheCOO

• AttractivetoAECOMasMergerPartner

• AECOMasksENSRtoleadCompanywideengagementefforts

Voluntary Turnover FY95 - FY07

6

8

10

12

14

16

18

20

22

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FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

UltimatelyIbecametheCHROofAECOM

07

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The AECOM StoryLife is NOT a Disney Story

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LessonsLearned:– EngagementmustsurvivethegoodtimesANDthebadtimes– YouneedalignmentwithBOD,SRMgt,

HR,andEmployees– RewardandRecognizetherightbehaviors– Beconsistentwithyourcorevalues– Youcando100thingswellforyouremployees,butthefirst

“takeaway”oftenmeansstartingover– Firstlinesupervisoristhemostimportantlinktocreate

employeeengagement– Investinanddevelopyouremployees– “oryourcompetition

will”– Ifyouincludeemployeesintheprocess,theytakeownership– Communicate,communicate,andcommunicate

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- ThereneedstobemutualcommitmentandalignmentwithEmployerandEmployee

Employeegivesback:•Alignment•Trust•Commitment•Accomplishments•Responsibility•Repetitivebehavior•“Aboveandbeyond”effort

WhenEmployergives:• Vision• Trust• Respect• Opportunity• Empowerment• Recognition• Empathy

Andremember- thereisnodestination!…itisanendlessjourney!

LessonsLearned:

Thankyou

[email protected]

www.EmployeeEngagement.com

how hr led a culture revolution keynote€¦ · balanced scorecard employees were not ... market...

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