Improving Connections & Performance:

Building a Resilient and Engaged Sourcing Organization

August 22, 2010

“I dream, I test my dreams against my beliefs, I dare to take risks, and I execute my vision to make those dreams come true.”

What does every employee dream of? Opportunities!

The State of Employee Engagement, BlessingWhite, 2008, pg 13

Opportunities drive engagement

Without opportunities engagement is difficult.

Advancing Careers, Driving Results: Career Development for Business Success, Right Management, 2010, pg 5-6

Engagement increases employee performance

* Employee Engagement – What’s Your Engagement Ratio, Gallup, 2010, pg 7

** The State of Employee Engagement, BlessingWhite, 2008, pg 5

*

**

Stakeholder Engagement

Employee Engagement

So how can we TAP into talent and discretionary effort?...

…provide an OUTLET.

Providing an Outlet

• Provide employees with the opportunity to work together to address organizational needs

• Channel value delivery towards business areas people are most passionate about or interested in

• Build a stage to allow employees’ contributions to be better recognized

Employees should be proactively looking for opportunities to improve the value-add services they provided

and be encouraged to act upon their insights with others.

The Program is an idea for tapping into personal talent and discretionary effort

Channel is the framework for enabling the delivery of additional value

Talent is the entire set of skills and knowledge each person decides to bring to work

Effort is the amount of extra thought and energy put towards applying talent

# Employees is the total number of active participants

The Program – tapping DREAMS

Value is driven by applying talent, effort, and employees.Magnitude of value is delivered using channels.

Outlet = The Program = channel ( talent + effort )^(# employees)

The Program – employee opportunities

If every employee had the opportunity to work on their “official” responsibilities and contribute to “unofficial” activities, what could be accomplished?

■ What heights of stakeholder satisfaction could be reached?

■ What percent of influenced spend could be achieved?

■ How many additional millions could be saved?

■ What level of employee engagement could be experienced every day?

The Program – employee opportunities (cont’d)

Here’s just a few opportunities employees can contribute to:

■ Finding ways to increase stakeholder understanding of the sourcing process

Benefit: drive engagement, set expectations, clarify assumptions, increase ownership of process

■ Addressing buyer behavior that limit ability to deliver savings Benefit: sourcing results are more easily achieved

■ Developing methods of having contracts written in ways that assist the realization process

Benefit: more time spent on stakeholder relationships and finding value-add opportunities

■ Establishing communication channels up, down, and sideways Benefit: informed workforces are better prepared and more likely

to perform at high levels

The Program – channeling value (pre project)

(continued next slide)

This is where the rubber meets the road and determines if The Program creates value.

The Program:• 5 independent rounds• May be terminated at any time if critical mass of employees do not contribute• Rounds will be 3 months and offset financial quarters by one month• Employees submit opportunities before each round• Small team collates opportunities into subsets of specific or themed projects• Top 5 or 10 projects voted on by employees to determine:

# employees that think project is good idea (passive participants) # employees that want to work on project (active participants)

• Project will only be worked on if 3-5 active participants identified (due to 3 month time limit)

• Small team announce final list of projects for round

The Program – channeling value (during project)

Once projects for round are announced, project teams get organized and start to develop solutions.

The Program:• Teams define purpose of their project, identify affected audiences, and then

brainstorm solutions• Single-page summary document of project scope, purpose, audiences,

and general approach are placed in central location. Intention of doing this is to: Ensure team has a defined direction Allow others to view what is conceptually being worked on Provide visibility into activities that may change passive participants

into active participants Show initial value-add and improve likelihood of organizational support

and adoption• Team actions and tasks identified and dispensed• “Democratic leadership style” to be primarily used throughout project

(defined on next slide)• During 3 month round teams may poll/survey passive participants interested

in their project

(continued next slide)

Coercive Authoritative Affilliative Democratic Pacesetting Coaching0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

37%

77% 73% 72%

38%

71%

63%

23% 27% 28%

63%

29%

Leadership Styles:Affect on Team Interactions

Non-Positive

Positive

Leadership That Gets Results, Daniel Goleman, Harvard Business Review, 2000, pg 5/7-8

The Program – channeling value (project leadership)

The Program – channeling value (audiences)

When defining the scope of a project, think about who will be directly affected.

The Program – channeling value (during project)

Before 3 month round ends, each team will try to capture value they have worked so hard to create to ensure it can be shared with the rest of the organization. This stage in the process is very important because of the strong and direct influence on adoption.

The Program:• When capturing value, team will determine best methods to:

Store information Communicate information

• Medium – PowerPoint, Word, Web, Excel• Channel – Brown Bag, SharePoint Announcement, Email

• Communication plan will be developed based on method of information communication and storage. Aspects to be included in plan may be: Audiences targeted for communication Message for audiences; including changes that affect them, why, benefits of

change, storage location Timing for original communications and timeframes for follow-ups (as

necessary)• Project documentation compiled into single package:

Communication plan and accompanying documentation Documents that fully explain solution and how it can be applied (including an

executive summary)(continued next slide)

The Program – channeling value (post project)

The total magnitude of value from The Program is ultimately delivered during the post project stage.

The Program:• Team uses communication plan to deliver solution to audiences

All communications will be coordinated so they can be timed and batched as appropriate

• Training sessions held to showcase the team’s work and help early adopters use solution

• As employees use the solution we will be able share and explore ways to adopt by: Connecting with others who are also using the solution Posting questions and comments in designated areas Talking with the original team members to understand thought-process for

developing solution

* Diffusion of Innovations, Everett M Rogers, Free Press, 2003; image from Wikipedia; 30% not from book

Innovators2.5%

Early Adopters13.5%

Early Majority34%

Late Majority34%

Laggards16%

Total Adoption

Stages of User Adoption 100%

75%

50%

25%

0%

*

~30% is often critical massfor maintaining momentum

The Program – building a stage

Celebrating a job well done!!...

The Program:• In celebration of successfully completing a round, actively participating

employees will be publicly recognized for their thoughtful contributions

• Team solutions will be housed in a central location as testament to their work and provided as examples of what the organization can accomplish when it works together Team member names will be associated with their solution

• Central location will function much like Google labs (showcasing solutions from The Program)

• Each year a vote will take place to determine: Best solution Best communication plan Best documented solution Most creative solution Most adopted solution from previous year (vote biannually) Best executed communication plan from previous year (vote

biannually)

“I am convinced that there is a scientific approach to this business, and I think we shouldn’t give up until we have found out all we can…not so that we may be able to accomplish the actual, but so that we may have a basis upon which to go into the fantastic”

(1935)

Appendix

Frederick Winslow Taylor

“The search for better, for more competent men [and women], from the presidents of our great companies down to our household servants, was never more vigorous than it is now. And more than ever before is the demand for competent men [and women] in excess of the supply.”

(1911)

* Frederic Taylor is considered the ‘father’ of modern management

*

Determining performance potential of teams

(graph) The Wisdom of Teams: Creating the High-Performance Organization, Katzenbach, Harvard Business Press, 1993 (descriptions) http://www.lmcuk.com/management-tool/the-team-performance-curve(descriptions) http://www.oedconsulting.com/assets/oed_high_performing_teams.pdf

Working group – rely on sum of individual contributions

Pseudo-team – individuals work together, but real business issues are superficially glossed over

Potential team – members actively involved and real business issues addressed, but with little coordination

Real team – members coordinate involvement to address real business issues

High-performance team – members maintain high-level of coordination and involvement to address real business issues

Team Performance Curve

Competitiveness + Knowledge = Performance

Competitiveness alone is not enough. It must be coupled with learning.

S&P culture

S&P history

Daily work

Strategic Supply Chain Management: Improving Performance Through a Culture of Competitiveness and Knowledge Management, Hult, Strategic Management Journal, 2007

Developing social networks

Social Computing Upends Past Knowledge, Brown, Forrester Research, March 2007

Ten Faces of Innovation

• Anthropologist - extremely good at reframing a problem in a new way [and has] the ability to "see" things that have gone unnoticed

• Experimenter - invites others to collaborate, while making sure that the entire process is saving time and money

• Cross-Pollinator - draws associations and connections between seemingly unrelated ideas or concepts to break new ground

• Hurdler - problem-solver who gets a charge out of tackling something that's never been done before

• Collaborator - person who truly values the team over the individual• Director - has an acute understanding of the bigger picture, with a firm grasp on the pulse of

their organization• Experience Architect - person relentlessly focused on creating remarkable individual

experiences [by turning] something ordinary into something distinctive• Set Designer - looks at every day as a chance to liven up their workspace. They promote

energetic, inspired cultures by creating work environments that celebrate the individual and stimulate creativity.

• Storyteller - captures our imagination with compelling narratives of initiative, hard work, and innovation

• Caregiver - is the foundation of human-powered innovation. Through empathy, they work to understand each individual customer and create a relationship.

The Ten Faces of Innovation, Thomas Kelley, Doubleday, 2005; excerpts above from http://www.tenfacesofinnovation.com/tenfaces/index.htm.