Acceleration to Business Results

As our book The Carrot Principle illustrates, the greatest challenge for leaders in growing their organization is not introducing a revolutionary strategy but engaging employees in executing their current strategy. The foundational element of our Recognition Effectiveness Model stems from the research - that goal setting, communication, trust and accountability are the Basic Four elements of effective management.

So to boost engagement and create the results you're going for, recognition must have:

ALIGNMENT with what matters most in an organization - whether it's the culture, values, mission or business objectives.

IMPACT through recognizing people the right way - having inclusive programs and creating human and personal recognition experiences that are meaningful and performance based.

Is your organization seeing a positive change in the culture and meeting their mission, values and business objectives?

Do your recognition moments have ALIGNMENT and IMPACT?

Building a rewards & recognition program: One size does not fit all

Remember the baseball movie epic Field of Dreams? In it, Kevin Costner’s character, Iowa farmer Ray Kinsella, hears a voice saying, “If you build it, he will come” with the accompanying vision of a baseball diamond. Heeding the call, he plows under his cornfield in favor of the turf and “he,” Shoeless Joe Jackson, and later “they,” others from the 1919 Chicago Black Sox, do come.
Hoping that life imitates art, many HR managers and leaders hypothesize that a recognition program is as easy as 1, 2, 3: sign up with a gift vendor, put your company logo on the standard web template and begin dispensing points, gifts or other awards. That works…if your only goal is marking 1, 2 & 3 from the to-do list. In reality, once it’s built, not too many come, not too much is accomplished and sooner or later senior management starts asking, “So why are we doing recognition again?” Effectual, strategic employee recognition, like other lasting and essential objectives, is not quite that straightforward.
Having seen companies go through this for over two decades, my first piece of advice: don’t pre-suppose that you or your vendor know what solutions are best for your organization without first doing your homework. In addition, don’t let your unique circumstances be pressed into a standardized program. Your focus needs to be on working with your vendor and stakeholders to design an employee recognition solution that produces the maximum impact within your unique business environment and truly effects staff morale. But how do you do this?
A good way to start is by working through a solution design process. Do a thorough assessment of your current recognition state by reviewing relevant employee survey data, conducting focus groups and executive interviews. Next, conduct a facilitated design session where you bring all your key stakeholders together. Find a seasoned facilitator/design consultant either internally or externally who will work with you to answer a few questions like:
What are our objectives and key success factors?
What recognition program criteria will reinforce our desired objectives and goals?
What guidelines should we consider to ensure consistency and fairness across our organization?
What award currencies–cash, gift cards, points, merchandise–and what value should we use in our programs? What are the pros and cons of each?
What should be the approval process for each program, i.e. peer-to-peer vs. manager to employee, or team recognition?
How do we communicate to and train our managers and leaders so they understand the what, why and how of recognition?
How do we measure our return-on-recognition-investment (RORI)?

A key deliverable from the design session is a recognition blueprint. A good blueprint includes plans for:
Alignment and impact – Your recognition reflects your organization and aligns with your goals, objectives, mission, vision, and values.
Leadership development and training – Train your managers. Companies who invest in training deliver on average return on equity three times higher than those who don’t.
Communications – Keep recognition top of mind and bolster what’s most important at your company. With effective communications your recognition takes off; without, it pancakes.
Measurement and assessment – Focus on metrics to drive RORI and validate to your key stakeholders that strategic employee recognition is good business and can improve your bottom line. A Towers Watson study on global recognition showed that a 15% improvement in your employee engagement scores can lead to a 2% improvement in operating margin.
Awards – What award currency works best for you? How often should your people be recognized (frequency) and what percentage of your employee population should be recognized (reach)? How much should you plan to spend on awards in Year 1, 2, 3 and so on?
Ongoing impact management – After implementation and launch, you need to ensure that your solution continues to meet the ongoing goals and purposes of your strategy. Continually review and fine-tune to meet your changing needs.
Technology – Technology is important and an assumed component of any recognition program–dashboards to track activity and results in real-time, social appreciation tools to extend the reach for the recipient and great fulfillment systems. Technology will be most effective as it supports the key strategies outlined above.
Whether you develop a recognition program internally or work with a vendor, look for a stable software platform that is customized to your brand, is easy to use, and has recognition tools and reporting to assist your users, managers and administrators in their unique recognition roles.
Build your employee recognition solution the right way and they will come. You can drive sustained, positive culture change and lasting business impact.

Chris Vyse – O.C. Tanner
www.octanner.com/blog

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Measure Your Team Engagement
In our work with global organizations, we find that teams with the most engaged people have the best results. Here’s a simple test to determine the engagement level of your squad. If your team members answer 'yes' to the following questions, there’s a good chance they are engaged.

•My team consistently puts in extra effort beyond what is expected.
•My team is highly motivated to contribute to the success of the organization.
•My team has a strong sense of personal accomplishment from its work.
•My team understands how its roles help the organization meet its goals.
•My team always has a positive attitude when performing its duties at work.
•My manager does a good job of recognizing employee contributions.
•My team consistently looks for more efficient and effective ways to getting the job done.

How did your team do? What have you done this week to build engagement within your team?

What can YOU do to motivate your team? Funny you should ask! Here are a couple of suggestions:

Give each team member a stack of thank-you cards and ask them to recognize co-workers when they see them furthering your organization's values.

One day a week, let team members work on a self-defined project. The only qualifier is that the project benefits the team!

Take responsibility for your own mistakes; but share the credit for your successes. Fun follow-up: Whenever you make a team-related presentation, make it a point to mention, by name, team members who helped- even if they just cheered you on!

Make a list of what you know about each person on your team. What do they do at work? What do they hang on their office/cubicle walls? Do they have kids/pets? If so, what are their names? Then ask yourself: Which co-worker do I know the LEAST about? Take time today to visit that person in their office and get to know them better!

At the end of each day, take a moment to gather the team and write down three things that went right. Getting in the habit of looking for the positives around you will pay dividends at the office, at home and socially. It also gives you many things to recognize as a team!

The Corporate VP of Station Casinos talks Recognition!

Bestselling author and motivational speaker, Chester Elton, recently met with Valerie Murzl, Corporate VP of Station Casinos in Nevada. Valerie talks about her people and the need for more recognition in the workplace. She also provides some great advice. To listen to the podcast of this interview please click on the following link ....http://chesterelton.com/images/uploads/podcasts/10/Chester_Elton-Station_Casinos.mp3

Chester has been featured in the Wall Street Journal, Washington Post, Fast Company magazine and the New York Times and has been featured on CNN, ABC “Money Matters,” MSNBC, National Public Radio and 60 Minutes. A sought-after speaker and recognition consultant, Chester is Senior Vice President of the Carrot Culture division with the O.C. Tanner Recognition Company.

Source: Chester Elton Podcast, January 16th, 2010 and http://www.chesterelton.com/.

Why does engagement matter?

Despite the downturn, employees remain engaged but there are important signals managers shouldn’t miss. Here are some suggestions to help managers keep employees energized amid ongoing uncertainty.

Despite the turbulence in the U.S. economy over the past two years, Gallup has found that employee engagement has remained relatively stable. But there are subtle changes going on that managers need to keep an eye on to help their workgroups -- and their companies -- remain competitive.

Worker engagement is an emotional response, so one might expect employees to become less engaged as the recession deepened. Surprisingly, they haven't.

The current U.S. recession began in December 2007, according to the National Bureau of Economic Research. During the heart of the recession -- throughout 2008 and 2009 -- Gallup surveyed American workers on a wide range of measures, including its Q12 survey -- 12 items that measure employee engagement. Employee engagement is the psychological and emotional attachment people feel for their workplaces. It's based on the fulfillment of basic human needs in the workplace, and the more people feel those needs are met, the more engaged they are.

Why does engagement matter? Because there's also a clear link between engagement and profitability, which makes engagement a more urgent issue now than it has been in prosperous times. Worker engagement is an emotional response, so one might expect employees to become less engaged as the recession deepened. Surprisingly, they haven't: Gallup has found that there have been only slight changes in overall engagement, but there have been significant changes on specific elements of engagement.

Ups and downs less traumatic for the engaged
In general, Gallup's tracking of the U.S. general public's daily mood throughout 2008 and 2009 shows that there have been "significant changes in average mood by month as we've tracked it throughout the year," says James K. Harter, Gallup's chief scientist of workplace management and wellbeing. (See "Gallup Daily: U.S. Mood" in the "See Also" area on this page.)
This same tracking indicates that several key wellbeing variables have been affected: There have been increases in worry and stress. The amount of time people spend socializing has decreased. And obesity is on the rise. But "the ups and downs have been less traumatic for people who are engaged in their work," says Harter.

Gallup has tracked the engagement levels of the U.S. working population for the past decade. Its most recent employee engagement research shows that 28% of American workers are engaged, 54% are not engaged, and 18% are actively disengaged. Throughout the decade, the percentage of engaged employees ranged from 26% to 30%, while the percentage of actively disengaged employees ranged from 15% to 20%.

In addition, from July 2008 to March 2009 -- during the heart of the recession -- Gallup tracked a large sample of employees and found only slight (1%) changes in overall engagement. In July 2008, 31% of employees were engaged, 51% were not engaged, and 17% were actively disengaged. In March 2009, these percentages had changed very minimally: 30% were engaged, 52% were not engaged, and 18% were actively disengaged.

Why did these engagement levels remain so stable despite the dire economic conditions? "This likely has to do with the fact that engagement is based on very local, everyday, worker experiences," Harter says. "Therefore, engagement can serve as an anchor during troubled times."

What managers can do?
Although overall engagement levels seem to be stable, there were significant changes at the individual Q12 item level that managers would be wise to monitor in their own workgroups. Managers who focus on just a few items -- such as making expectations clear, providing frequent feedback and recognition, encouraging development, and helping workers connect their efforts with the mission and purpose of their company -- can enjoy a big payoff not just for their team but for the organization as a whole.

Knowing what's expected
"The element that dropped the most during the recession was 'I know what is expected of me at work,'" Harter says. "I think that speaks to the reality that as the economy has changed, workers have role clarity issues. Layoffs are happening, organizations are restructuring, and workers' roles are changing. People are uncertain about the future." To counter this, managers need to work particularly hard at clarifying expectations with their employees.
The majority of people just want their managers to realize that they're here, that they're making a difference, and that they're working really hard.

Opportunity to do what I do best
Over time, many employees can do more of what they do best because they continue to refine and optimize their role. In a down economy, when companies are struggling to do more with less, employees may have to pick up the slack for colleagues who have been laid off or who have had job changes. As a result, they might be taking on new tasks and responsibilities they are uncomfortable with or aren't as good at.

To help workers find opportunities to do what they do best, managers can focus on their employees' strengths and work to understand the barriers that get between employees and performance -- and try to remove those barriers. "During a down economy, it isn't difficult to notice what is going wrong," Harter says. "It is more challenging, and useful, to think about and leverage individual strengths to get done what needs to get done."

A connection to the mission of the company
During turbulent economic times, people might feel less connected to the mission of their company, especially if they think their job is threatened. "When changes are happening, it's either a threat or an opportunity," Harter says. "When people around you are losing their jobs, employees are more likely to see it as a threat, and they revert to basic survival needs." And when employees are in survival mode, it's more difficult for them to connect to the broader purpose of the company.

For managers, the key to helping employees overcome this is to get them to understand how they are part of the organization's future. Managers should conscientiously and assertively help employees see how what they're doing is part of something bigger -- and how it connects to the future of the organization. That produces substantial benefits for the organization's performance "because it helps workers focus on thinking about how the organization can get better in the future, rather than getting into a 'hunkering-down' mode," Harter says. "Even though the economy is down, there are opportunities for the company to grow."

Talking about progress
During a challenging time, some managers can also feel threatened or that their job may be at risk, and they might not communicate with employees as well as they should. "But people want to be part of the future, and progress discussions help them see how they can contribute to that future," Harter says. "Managers can help employees by continually communicating how they are progressing and showing them how their work benefits the organization."

Opportunities to learn and grow
Many companies have reduced their budgets for training and education, so managers have less discretionary income to allocate to employee training programs. But learning and growing isn't just about buying training -- it's about helping employees continue to grow in their jobs, and there are many ways to do that outside the training budget. "Providing employees with meaningful opportunities to learn and grow starts with getting to know each person one on one, thinking about their strengths, and thinking about the ways they learn best," Harter says.

Recognition and praise
One item did go up significantly from July 2008 to March 2009: More employees agreed with the statement "In the last seven days, I have received recognition or praise for doing good work." Why was there significant positive change on this item? It could be that managers are leveraging the non-monetary means they have to motivate their workforces during a down economy. If a company's financial situation precludes things like development training or job role changes, managers can still perform a crucial function: recognizing and praising employees for hard work and quality productivity.

"Many companies can't recognize people for their work with financial rewards right now," says Denise McLain, a Gallup principal. "And truthfully, financial rewards are important to some people, but the majority of people just want their managers to realize that they're here, that they're making a difference, and that they're working really hard."

In a healthy economy, engagement makes good companies better. During challenging times, engagement might be what helps keep companies solvent. As the economy begins to improve -- and it will -- organizations with strong engagement will be poised to grow, and engagement may well play a role in that recovery.

Source: Jennifer Robison is a Senior Editor for the Gallup Management Journal.

The Art of the Thank-You Note

During the holidays, Geoffrey Parker, branding consultant for Parker Pen Co. and great-grandson of its founder, George S. Parker, is careful not to overlook what he calls a "critical" aspect of the gift-giving season: thank-you notes.
"It's common courtesy," he says. "If someone does something for me, I need to acknowledge that." Mr. Parker sometimes thanks a gift-giver or party host with a phone call, email or text message. But he believes that these modes are "insufficient" and always follows up with a handwritten message. "As these modern electronic devices become more common and overused, they become cheap," he says.
Mr. Parker usually sends his thank-you notes on four-by-six-inch cards with his name and address printed across the top. He favors heavier paper and cards with printed words that are raised, noting that people often subconsciously run their fingers over the printed portion of stationery when they receive a note. "People are establishing impressions based on a lot of subtle things," he says.
When writing a card, Mr. Parker eschews everyday ballpoint pens. "I feel fountain pens allow me to be more expressive," he says. He likes using a pen with a broad nib, saying that the fatter script and signature "doesn't look as if it's something that's been mass-produced." He uses ink in a different color from the printed message on the card, usually favoring a striking bright royal blue for his black-printed stationery.
Before he writes his note, he sometimes practices writing a line several times to see how it looks on paper. "People are writing less and less these days ... a lot of people have forgotten how to write," he says. "You don't want something to be difficult to read, misunderstood or simply not understood."
He typically begins the note with a line "harking back to the last time I saw or communicated with them" and then goes on to ask about an associate or family member. "By doing this, you establish a sort of conversation, more than a blunt 'Thanks for the necktie,'" he says. While he tries to keep his message brief, he makes sure it is always more than one or two lines.
Finally, he signs off informally with his first name. "Do not use your business signature for a personal note," he says. "It can seem too formal, and a personal note should not be done in any sort of mechanical or perfunctory way." His rule of thumb: "The thought behind the thank-you should be equal to or greater than the thought that went into the gift."
From the Wall Street journal, Dec 24, 2009

A review of THE CARROT PRINCIPLE in Financial Executive Magazine

The Carrot Principle: How the Best Managers Use Recognition to Engage Their People, Retain Talent and Accelerate Performance; revised edition. By Adrian Gostick and Chester Elton.

In this, their second look at the use of corporate carrots--the first edition was a big 2007 seller--authors Gostick and Elton offer further evidence that praise and recognition belong in every manager's toolkit. In fact, they write, in the long-standing recession, "the Carrot philosophy has never been more relevant."

Indeed, finding ways to recognize people and honor their work doesn't require new resources, just new ways of thinking. Recognition isn't simply the softer side of leadership, they write, but a "secret ingredient that great leaders add to their companies for [a] direct impact on profits."

Organizations that more effectively recognize and reOward excellence, according to a 10-year study of more than 200,000 employees cited in the book, had triple the return on equity as companies that did the worst at recognition. And of employees reporting the highest morale, more than 94 said their managers were good at recognition.

These numbers stand in sharp contrast to others evincing the general sorry state of recognition efforts. Almost two-thirds of North American workers cited in the study said they had no recognition at all in the past year, and 79 percent of top performers who left their companies said "lack of appreciation" was a key reason.

The authors do a superb job of sketching out how and why recognition programs work, citing companies like Quest Diagnostics, KPMG, WaltDisney Co., Avis Budget Group and DHL. As they write, "Smart companies have realized that workers are being asked to do more than ever, and find work less fulfilling. Recognition that builds motivation is essential to keeping them and to getting the most from them."

Employee Engagement Rooted in Managers' Leadership Skills

To drive higher levels of employee engagement, companies should work on improving the leadership skills of frontline managers, says a new report from Aberdeen Group. "Employee engagement is something world-class organizations need to be effective at in today's competitive environment," says Mollie Lombardi, an Analyst at Aberdeen. "Learning programs provide individuals and managers with the skills and tools to align goals and priorities, and give a strong foundation which organizations can build on in order to achieve success."

According to Beyond Satisfaction: Engaging Employees to Retain Customers, more than half of best-in-class organizations provide training and tools to managers to help them better engage employees, and nearly all of the rest (45%) are planning to extend this type of training in the future. The report also found that two programs – onboarding and development plans agreed to by manager and employee – are critical to building high levels of engagement. Onboarding ensures that employees are aligned with the organizational mission and priorities from their earliest days, and development plans ensure that employees and managers remain in alignment when it comes to their role in achieving organizational success.

"This study is important because it highlights the need to develop strong leadership skills at all levels in the organization, not just in the corner office," notes John Ambrose, Senior Vice President of Strategy, Corporate Development and Emerging Business at SkillSoft, which conducted the research along with Aberdeen Group. "The challenge comes in finding ways to deliver leadership training that are cost-effective and scalable."

Companies Plan to Increase Focus on Employee Engagement in Reward Programs

57% of companies plan to increase their focus on employee engagement in measuring their reward programs during the next two to three years, according to a recent study by WorldatWork and the Hay Group. In addition, 64% will also increase their future focus on the motivational value of reward programs.
The "Reward Next Practices Survey" queried approximately 763 organizations in 66 countries from a cross section of industries to determine the reward practices of global organizations during the next two to three years. According to the study, current reward program performance metrics are more heavily weighted toward financial performance than employee engagement, with companies reporting a current focus of 71% on using financial performance measurements and 40% on employee engagement. Other performance standards, such as customer satisfaction, innovation, talent management and employee engagement are all at less than 40% of current focus by organizations. Of all of these metrics, organizations report a more intense future focus (57%) on employee engagement performance.