The ‘Healthy Organisation’; engaging the power of employees

1. The ‘Healthy Organisation’; engaging the power of employees James Slater - LifeWorks

2. Focus of the session ‘Healthy Organisations’ engage their employees ‘Engaged Employees’ stimulate ‘Healthy Organisations’ Profitability Vitality Focus Innovation Virtuous Circle Adaptability Sustainability

3. The UK Working Context Always on work structures Uncertainty and Instability Move from fixed to uncertain roles More for less Performance management Continual change and reorganisation Work intensification Breakdown in traditional psychological deal and trust Loss of Security and Loyalty

4. The State of Working UK Loss of productivity from those ill but still in work - estimated cost of £15 billion from mental ill health alone (Sainsbury Centre for Mental Health) 26% of employees don’t think they have the right work life balance MSD's affect 1 million in the UK - cost to society approx. £7 billion. (Work Foundation) 38% of employees feel under excessive pressure in their jobs 46% of employees have noticed an increase in stress levels Around 175 million working days lost to sickness absence each year cost to economy £13 billion a year (CBI)

5. Less than a quarter of employees are ENGAGED A climate of distrust is affecting many employees

6. The period of economic history from Enron to Lehman's was characterised by an obsessive focus on performance to the exclusion of health. As sure as burst follows bubble, organisations that failed to attend to their health have faltered and failed.Some organisations (e.g., Johnson & Johnson, Goldman Sachs, Southwest Airlines, Toyota, GlaxoSmithKline) not only outperformed their peers over the last decade, but now enter the next cycle in a fundamentally stronger position. How did they do this? They were able to hold two concepts at once - Performance and Health. Whilst relentlessly managing for shareholder returns, they also invested in their own health; the capabilities, attributes and competencies required for sustainable success. The Big Idea – Success requires focusing on both performance and health

7. The Big Idea – Success requires focusing on both performance and health • Most organisations fail to maintain above-average performance over time – very few sustain performance over the long-term • All organisations aspire to be healthy and thrive. However, the path to get there varies • The journey to health is a marathon, not a sprint

8. Organisations starting in the same era and the same field often have very different long-term performance • 2008 Revenues: USD 103.6 billion (Founded: 1889) • Burroughs merged into Unisys in 1986 and ceased to exist (Founded: 1889) • 2008 Revenue: £279.67m (Founded: 1878) • Accrington Stanley Football Club resigned from the Football League mid-season, entered liquidation in 1966 and ceased to exist (Founded: 1891)

9. 4 There are 9 vital signs of organisational health Direction Accountability Coordination and control External orientation Leadership Innovation Capabilities Motivation Environment and values Alignment • The organisation has a compelling vision and well articulated strategy, which is supported by its culture and values Execution • The organisation demonstrates executional excellence against its strategy and in delivering its services Renewal • The organisation effectively understands, interacts, responds and adapts to its situation and external environment

10. Healthy Organisations create psychologically healthy workplaces Effective Leadership Extrinsic Factors Social Environment Work Load and Pace The Psychologically Healthy Workplace Reduced Status Distinctions Work Schedule Workplace Justice Role Clarity Autonomy Career Path and Security

11. An Engagement Model

12. An engaged employee

13. The Drivers of Engagement

14. The service to profit chain The Healthy Employee engagement and commitment Company structure and Culture Customer satisfaction with service Change in sales Customer spending intention Effective Line Management Organisation Staff absence, presenteeism or disengagement

15. The Engagement Ladder

16. Managers are key!!!!!!! Management Practice Organisational Health