Engagement: A Multiyear Affair: Karen B. Paul, Ph.D.

3M Human Resources Measurement
Engagement: A Multiyear Affair
Karen B. Paul, Ph.D. (kbpaul1@mmm.com) Benjamin Schneider, Ph.D. (BSchneider@valtera.com)

3M 2010. All Rights Reserved.
Karen B. Paul, Ph.D.

Background
Responsible for creation and execution of:

Assessment and testing Competencies 360s Organizational survey research and executive assessment ASTD, HRPS, SIOP, APA and APS Journal of Applied Psychology Training and Development Handbook of Employee Selection Managing Human Resources for Environmental Sustainability
Presented research for:
Published in professional journals:

Manager, HR Measurement 3M Company

Ph.D. Industrial and Organizational Psychology Bowling Green State University
Author of chapter in:

2 3M 2010. All Rights Reserved.
Benjamin Schneider, Ph.D.

Background
Responsible for advising on consulting projects, writing research papers, and working with clients. Special interests in organizational climate and culture, employee engagement, service quality, linking employee survey data to corporate effectiveness, and the role of personality in organizational life. Published nine books and 150+ professional journal articles and book chapters. The latest book (with W. Macey, K. Barbera, & S. Young is Employee Engagement: Tools for Analysis, Practice and Competitive Advantage (Wiley-Blackwell, 2009). Taught at the University of Maryland for many years as well as Yale University, Michigan State University and for shorter periods of time at Bar-Ilan University (Israel; on a Fulbiright), and Dartmouth College. Winner of several awards for his research including SHRMs 2009 Michael R, Losey Award for his work on service quality.
Senior Research Fellow, Valtera & Professor Emeritus, University of Maryland

Ph.D. in Industrial and Social Psychology University of Maryland
Little Bit of Background on 3M and Valtera
More Than 35 business Units Organized Into Six Market-Leading Businesses
Consumer and Office Display and Graphics Electro and Communications Health Care Industrial and Transportation Safety, Security and Protection Services
3Ms Technology Platforms

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Abrasives Biotech
Bi
Pm Sm
Polymer Melt Processing
Specialty Materials
Ac
Acoustics
Ceramics
Ce
Electronic Materials
Em Fc
Nanotechnology
Nt
Porous Materials & Membranes
Po
Su
Modification
Surface
Ad
Adhesives
Dd
Drug Delivery Display
Flexible Converting & Packaging
Microbial Detection & Control
Mi
Nonwoven Materials
Nw Op Pd Pe
Precision Processing
Pp Pr
Track and Trace
Tt
Am
Advanced Materials
Di
Flexible Electronics
Fe
Films
Filtration, Separation, Purification
Fs
Integrated Systems Design
Is
Metal Matrix Composites
Me Mf
Mo
Molding
Optoelectronics
Process Design & Control
Vapor Processing
Vp
An
Analytical
Dental & Orthodontic Materials
Do Ec
Fi Fl
Im In
Imaging
Lm
Light Mgmt
Mechanical Fasteners
Microreplication
Mr
Particle & Dispersion Processing
Radiation Processing
Rp
Se
Accelerated Weathering
We
Wound Mgmt
As
Application Software
Energy Components
Fluoromaterials
Inspection & Measurement
Md
Data Mgmt
Medical
Predictive Engineering & Modeling
Sensors
Wo
3M Facts
Year-End 2009
Sales Worldwide................................. $23.1 billion International (63% of total)........ $14.6 billion Earnings Net income................................ $3.19 billion R&D Expenditures For 2009................................... $1.29 billion Total last 5 years................... $6.86 billion Employees Worldwide......................................... 74,835 United States................................. 31,513 Where are We? Sell products in over 200 countries
Operations in more than 65 countries

35 international companies with manufacturing operations, 35 with laboratories In the United States, operations in 28 states 6700 researchers worldwide; 3,400 in the United States
Contributions: In 2009, donations of cash and products totaled more than $50 million in the U.S. alone
567 U.S. Patents Awarded

3M Human Resources Measurement 3M Human Resources
HR partners with the business to drive growth through people
GOVERNANCE

HR principles Strategic HR oversight Policy development and adherence Compliance
3M Source
24/7 Information and transactions
HR Contact Center
Resolution and referral services
INFORMATION SERVICES BUSINESS HR MANAGERS CENTERS OF EXPERTISE
Benefits Compensation Employee relations Employee services Measurement and assessment Mergers, acquisitions and transitions Talent acquisition Talent development Workforce planning and management
Leadership team counsel HR strategy supporting business strategy Human Capital plans emphasizing identification and development of talent Brokerage of resources required to meet business HR plans
2010-2014 Global
3M Strategies
Grow the current core business HR Vision HR partners with the business to drive growth through people.
HR Business Critical Ys
Engaged, Productive and Diverse 3M Employees 3M Strategy Acceleration Through HR Leadership and Expertise 3M Workforce and Organizational Readiness Operational Excellence and Productivity of Global HR Services Protect the Corporation
HR Strategies
1. Engage employees and strengthen employment brand 2. Enhance ability to acquire and retain the right workforce 3. Enable effective human capital planning and increased workforce productivity 4. Optimize HR administration including global web and call centers
Complimentary acquisitions
International growth
Build new businesses
HR Mission Provide workforce and organizational solutions to accelerate strategy execution and drive operational excellence.
5. Accelerate the development of talent
6. Design compensation and benefits plans to meet evolving business needs
About Valtera
Valtera provides premier human capital consulting and technology solutions to organizations worldwide in the following areas: Surveys and Analytics, Employee Engagement, Leadership Assessment, Testing and Selection, and HR Audits and Legal Support. Valtera was founded in 1977 and has been providing employee survey services globally since that time. Valteras long and successful history of providing employee surveys has been built on the basis of our consistently high standard of delivery for some of the worlds leading corporations. Valtera managed the international data warehousing and reporting for the Mayflower global survey consortium from 1992 to 2010 with 100% accuracy. Valtera corporate leaders are recognized authorities in the field of organizational/industrial psychology and they are intimately involved in the execution of large-scale projects. Their recently published work on the organizational drivers of customer satisfaction was selected as the winner of the 2009 Journal of Service Research Best Article Award sponsored by IBM. Valtera uses a fully integrated online survey platform to administer paper and web-based, multilanguage global surveys for hundreds of thousands of participants in a single wave. Beyond offices just outside of Chicago Valtera has offices in the Netherlands and the Czech Republic, and working partnership with firms across the world including firms in Europe, China and India.
Everybody wants to have an engaged workforce because it can forge a path to competitive advantage.
Yet ask five different people to define engagement and youll likely get five different answers .
What is Engagement?
3Ms Definition
engagement (in gjd/ mnt)
an individuals sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.
It is all about alignment.

Is Satisfaction the Same as Engagement?

Behaviors
Engaged employees behave: Persistence at difficult tasks Helping others Taking Initiative Going beyond expectations Satisfied employees behave: Low absenteeism Low turnover Low substance abuse
And so forth
Engaged employees are satisfied too And demonstrate satisfaction behaviors as well as engagement behaviors
Why Should We Care?

2006 Valtera Corporation. All Rights Reserved.
A Broader Business Case

True competitive advantage is indexed between MANY firms, not simply measured within ONE firm.

Engagement Even More Critical in a Tough Economic Climate

3M has learned strong leadership engages employees in tough economic situations and pulls us through faster than the competition
When the urgency and need are clear, employees deliver!

The Conditions that Yield Engagement Attitudes and Behavior
The Engagement Model

Organizational Outcomes
Engagement Behaviors Engagement Attitudes Conditions For Engagement

How to Build Conditions for Engagement

Treat people fairly
Accountability and Rewards metrics, pay, promotions, performance management Interpersonally respect, warmth Procedurally keep promises, involve people in decision-making, have an operational rhythm, distribute work equitably Technology
Pay attention to the seemingly mundane

Support
Internal battles
Recognize and celebrate

How Does Trust in Management Impact Engagement?
Legend
Poor Good Excellent
Resource Allocation Performance Management Job Satisfaction
<50% Favorable 50-80% Favorable >=80% Favorable
Conditions for Engagement
Growth
Feedback
Commitment
Leadership
Values
Total Compensation
Intention To Stay Engagement
Trust
Supervision
Communication
Diversity
Change
Bottom Line Results
Work Group
Recognition
Safety*
Innovation
Alignment
Career Progress
Responsibility
Customer Focus
Job Demands
Loyalty
20
Based on US 2009 Standard Opinion Survey Results & 2009 US Leadership Survey
Trust in Management
We know from our own research at 3M that this is the single best predictor of employee attitudes. The first lens of how employees view the workplace
56 28 16 Division Management has a high level of personal integrity.
57%
2000 3M Poll
YES
16%
NO
Division Management is good at driving the changes needed for growth.
9 19
72
21
Data from 3M Poll

Basic Building Blocks of Engagement

Engagement happens when people feel safe to take action on their own initiative People feel safe when they trust their environment People trust their environment when they feel fairly treated by it
Fairness Trust Feel Safe Engaged
The key is to create a culture of trust in organizations

Dimensions of Managerial Trust

Managerial consistency
Acting with integrity

Sharing and delegation of control Openness of communication Demonstration of concern
23
* From Whitener, Brodt, Korsgaard & Werner (1998)

Achieving Employee Engagement

What are We Doing?
Engagement Objective
Improve employee engagement levels to drive organizational outcomes Key Components
Corporate-wide:
Improve employees understanding of 3Ms vision, future and decision-making Increase communication of business goals, plans and achievement Involve employees to help them understand what is engagement and what is the business case Provide support to the Big B/Area/Staff Groups to take action on the concepts communicated in and through the corporate-wide components of the strategy Additional areas of focus to address identified gaps
Within Businesses:

2008-9 Strategy Summary

Global Goal Tree (1 of 4)
HR Strategy HR Sub-strategies HR Tactics In Support of Sub-strategies
Career paths project Mentoring Coaching Job rotation 360 Connection to work / life benefits Connecting engagement to employment brand
How to make my work challenging and meaningful
Engage Employees
Align to the big 3M
NEO Linking with sustainability Integrate innovation into the story Built into leadership competencies Emails from CEO Imbedded in leadership programs (GM/MD; ALDP, etc) Messaging of engagement as a leadership responsibility
Leadership responsibility to build the environment
Where Are We?

Got most of the pieces in place
Differences in U.S. / international structure require more attention

Built Corporate Tools and Resources Train HR WW Business Unit Intervention Country Level Intervention Corporate Level Intervention
Driving a Growth Culture

Engaging Every Employee to Serve Our Customers, Shareholders and Communities
Customers
Brand
Innovative products with superior quality, value and service
Employees
Employment Brand
Acquire, retain, value and develop employees diverse talents, initiative and leadership
Shareholders
Shareholder Promise
Provide attractive returns through sustainable global growth
Customer loyalty and share growth
Employee engagement, mind share and productivity
Growth in 3M stock
Our communities, our world. Respect our social and physical environment around the world.
Alignment of HR Practices
Human Capital Planning Succession Planning Performance Appraisal
Development
Leadership Attributes
Assessment Tier Reviews
Consensus Review
Leadership Attributes
Thinks from outside in
Drives innovation and growth

Develops, teaches and engages others Makes courageous decisions Leads with energy, passion and urgency Lives 3M values
Engagement is essentially a leadership responsibility.

2009 Engagement
Seeing Worldwide Improvement in Scores Book on Employee Engagement Came Out
Named by APQC as one of the Best for Rewarding, Engagement, & Retaining Key Talent
Profiled by SHRM, Conference Board and webinar with i4cp 2008 Named by CEO Magazine #1 Best Companies for Leaders Named by Fortune #16 Global Top Companies for Leaders Engagement Video Series for Supervisors & Managers Well-Received Blog In Place HR Vendor Conference on Engagement Employment Value Tool was Rolled Out
Great things going on in the businesses and countries
Employment Brand
32
Key Messages: Driving 3Ms global leadership Inventing the future with technology Succeeding through collaboration Creating solutions to sustainability challenges Developing diverse talents, building careers
Building a Stronger Brand

Start Here
Employee Engagement
Customer Engagement
Share of Customer
Sales Revenue
Definitely in Social Media www.facebook.com/3MCareers.US

Whats Next Globally?
Sales, Lab/TS:
Facebook Linked In Twitter Landing Pages SEO Pay-Per-Click Campaigns
Employee Engagement
A Green 3M Employee Assistance Program Community Giving A Healthier You
Taking Care of the Environment

Taking Care of Others
Taking Care of Our Communities
Taking Care of Yourself
3M Poland Green Week Program 15-19 June 2009

Program Objectives:
Building and enhancing 3M image (Employment Brand) as a socially responsible company

Creating positive impact on the Employees Engagement and work atmosphere Ecological education including 3M best practices Increasing environmental awareness among the Employees
36
Joint program of CMPA, EHS and HR

Monday to Friday Activities

Monday: Recycling
Presentation of the film: The Inconvenient Truth global warming documentary movie Collect used paper, cans etc. to gather money in return and donate the money to local ZOO Mailing recycling!
Wednesday: Switch Off

Take back event a small gift for employees Contest Green eco-photo (awards: books, calendar with ecological advices), exhibition of best works Clean your office (one hour desk cleaning) Mailing switch off!
Friday: Make It Green

Day with a car (bicycle, car sharing) small awards for those who arrive first to work on bicycle Seat trees, sow grass Bicycle race options: For each km 3M pays 1 PLN and donates the money to local ZOO Training bike on the site. Mailing Green Office!
Tuesday: Save
Contest Eco-film (ecological films recorded on mobile phones) award the best film employees voting Presentation of 3M ecological and sustainability projects Calculate the energy you use! Mailing
Thursday: Go On Foot
Quiz Eco-knowledge on the base of 3M materials and mailing Voting and selecting the best Eco-film Event Exchange or forward: bring your old books or any products you are not going to use and exchange for other products you might use. Mailing go on foot. Economic driving.
3M Thailand
"Green Touch Campaign" to Enhance the Employee Engagement For Sustainability
As one part of Green Touch campaign, Employees' Children Environmental Protection Painting Contest was launched from July to September. Over 60 lovely kids' paintings were collected. Finally 19 paintings won the awards thru online voting and some of them were selected for making 3M China's New Year eCard
Employee Engagement and Sustainability 2010 Need to Be Doing So Much More

Engagement video for supervisors and managers (Top Ten Things You Should Know about Sustainability) Video contest
Leadership survey roll-out on January 27th
Employee Engagement
A Green 3M Employee Assistance Program Community Giving A Healthier You
Taking Care of the Environment

Taking Care of Others
Taking Care of Our Communities
Taking Care of Yourself
Making a Difference: Healthy Living Resources

A diversified four-part program designed to:
Lower our long-term health care costs and enhance employee productivity
Reduce the demand for costly medical interventions and minimize employee productivity loss
Help employees better manage their lives physically, socially and emotionally
Other employee objectives: Engagement | Recruitment | Enhance organizational commitment
Where Weve Been: Key Accomplishments to Date

17,899 employees participated and received $100 incentive Health plan administrators have reached out to at-risk employees and offered coaching classes and additional programs
August 2008 Program Launch December 2008 March 2009 Health Screenings and Assessments
Employee Engagement:
Key Strategy to Growth, Innovation and Retention
Engagement: Aligning Individuals Purpose and Energy with Organizational Goals
Brand ambassador Community partner Social responsibility and sustainability Family appreciation events Media coverage External recognition and awards Performance oriented company Challenge and growth Career advancement and broadening Personal career development Effective supervisor and peer relationships Safe working conditions Equitable compensation and benefits Ethical business practices HR principles 3M values
Pride in 3M
Career Fulfillment
Basic Employee Needs
Regular and Open Communication
Active visible leadership is needed to promote stronger levels of engagement.

Engagement as a Leadership Responsibility
Global vs. Local Debate

Fundamentals of engagement are universal
The desire for meaning and purpose in the workplace knows no borders
How you capitalize on the fundamentals is local

People have needs Organizations have needs How you align these 2 facts can produce engagement and financial success but is context specific
After all, results from their recent survey showed that 3M Mexico employees boast a 95 percent favorability rating. That feedback, according to Shivitz, is the best indicator of future financial success. Ed Shivitz,
Managing Director, 3M Mexico Stemwinder April 23, 2007
Best Employer
Enthusiastic Work Climate Remain at 3M Adapt to New Ways Take on New Roles & Responsibilities Recommend 3M
Engagement
Pursue Development Excited About Contribution
Best Places to Work Spain
2009 Best
2008 Best 3M Czech Republic
Quick Hits You Can Do

Focus on the customer
Read a book or journal article together and discuss

Random lunches Buy 1001 Ways to Energize Employees by Bob Nelson
Engagement isnt just recognition but it is a small start in the right direction.
Innovation and Engagement

(Whats the relationship?)
Three Work Areas: With Innovation at the Core
Employment Brand
Perception of your company In the market place and the Value our employees derive from working here
Sustainability
Triple bottom line: People, Planet and Profit Social responsibility Environmental sensitivity Economic viability
Engagement
an individuals sense of purpose and focused energy, evident to others in the display of personal initiative, effort and persistence directed toward organizational goals.
Sweet Spot
Culture of Innovation
Submit Your Ideas for Products
Gary Hamel The Future of Management

Formidable Challenges that Confront Companies in this New Century
Dramatically accelerating the pace of strategic renewal in organizations large and small Making innovation everyones job, every day Creating a highly engaging work environment that inspires employees to give the very best of themselves
(p.40-41)
We Know From Our Own Research

Those 3M business labs that are more engaged have a more positive view of Innovation and 2 years later were more profitable (r=.56 Innovation and Engagement)
How can we do better?

William L. McKnight

Engagement: A Multiyear Affair: Karen B. Paul, Ph.D.

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