Organizational NarrativesTM: A New, Powerful Approach to Making Employee Engagement Efforts Stick THE IMPORTANCE: STRONG CULTURE MAXIMIZES PRODUCTIVITY AND PROFIT In the last ten years, research highlighting the business benefits of developing a strong organizational culture—from boosting moral to increasing productivity and profit—has prompted a wave of investment in employee engagement. To support these efforts, a new industry has emerged focused on “people analytics,” or applying data science to people decisions including how to hire, engage, and retain employees. Many of these metrics are designed to track or improve employee culture. Yet even with these new metrics, studies show that over 75 percent of culture change initiatives fail. Why is that? WHY CHANGE EFFORTS FAIL: LOTS OF DATA, LITTLE INSIGHT One reason why culture change efforts frequently fall flat is that leaders tend to focus on metrics that give a snapshot of employee satisfaction, engagement, and productivity without revealing the mindsets that underlie behavior. For example, the classic multiple choice employee engagement survey measures “favorability” towards aspects of the company and its culture, but does not reveal the “why” behind those answers. Let’s say 57% of employees agree with the statement “processes are well organized and efficient in my work group.” While you can benchmark this versus prior years and industry standards, it is not actionable and provides little value for decision-making. Without insight into employee motivations, leaders often launch culture and engagement initiatives that fall flat -- failing to see where their priorities are innately aligned or misaligned with underlying employee mindsets. We call these mindsets that employees hold “Organizational Narratives.” ORGANIZATIONAL NARRATIVES: A NEW TOOL FOR UNDERSTANDING AND MEASURING EMPLOYEE MINDSETS Organizational Narratives are the deeply-rooted, emotional stories that employees tell themselves about a company, its mission and culture, its leadership, and its future prospects. Like many other types of stories, Organizational Narratives are typically anchored in beliefs and perceptions rather than objective facts. Monitor 360 applies its proprietary Narrative AnalyticsTM process to help organizations understand, quantify, shape, and monitor Organizational Narratives by analyzing large volumes of qualitative employee data. This process is designed to support culture building by surfacing opportunities to reinforce positive elements of employee culture, and address sources of friction that impact satisfaction, commitment, and productivity. Because we quantify Organizational Narratives, we enable leaders to make cultural decisions that are datadriven, and to set goals and track progress in shifting those critical employee mindsets. 1 CASE STUDY: HARNESSING NARRATIVES TO RESONATE WITH EMPLOYEES A major public utility company recently came to us to help them understand how they could better engage their workforce of nearly 30,000 employees – who represented a wide range of business lines, skills, and roles. Our client had reams of data from employee satisfaction surveys and focus groups, but little insight into the mindsets that shaped behavior and influenced strategic priorities like safety, productivity, and retention. They needed a way to understand those mindsets so they could connect with employees in a meaningful way, and effectively shape a safer, more engaged, and more productive workplace. THE METHOD: RIGOROUS DATA-DRIVEN METRICS TO UNCOVER BELIEFS AT SCALE To capture and analyze these mindsets, we followed our proven Narrative AnalyticsTM process that combines cutting edge data analysis with rigorous qualitative analysis to unearth our client’s Organizational Narratives. This process has five steps: 1) Leverage prior investments in employee data gathering. We examined our client’s prior investments in employee data to identify sources of narrative-rich content from which we could derive Organizational Narratives. These data sources included internally captured data—“verbatim” comments from surveys, focus group transcripts, Yammer chats—as well as external data, such as Glassdoor reviews, public Facebook posts, and blogs. 2) Ensure data reflects the range of employee views. We validated that the sample size was not only statistically significant, but reflected a robust range of employees from different lines of business, functions, levels, demographics, and more. We organized and cleaned this anonymized data, and fed it through a proprietary data analysis tool that clusters content based on thematic similarity. 3) Analyze the data and derive Organizational Narratives. We analyzed the content clusters and extracted narrative themes and expressions, separating them from everyday chatter, individual grievances, and other “non-narrative” content. We then drafted Organizational Narratives in the voice of employees, carefully examining the data to ensure that the narratives reflected the full range of employee mindsets: we call this the Narrative LandscapeTM. We then refined and tested these narratives through qualitative interviews to ensure they authentically reflected the tone and content of employee beliefs. 4) Measure Narrative ImpactTM. We quantified the Narrative Impact with proprietary metrics to determine the volume of each narrative and how narratives changed over different employee segments (role, tenure, business line, etc.). We also honed in on specific behaviors or actions that triggered certain narratives. 2 5) Monitor the changes over time. To help the client refine its employee engagement strategy, we tracked shifts in these narratives to gauge the effectiveness of different culture change initiatives over time. THE RESULT: UNEARTHED EIGHT KEY NARRATIVES DRIVING CULTURE Our analysis uncovered eight key narratives that cut across lines of business and key demographics, and drove our public utility client’s organizational culture. These narratives spanned from positive stories about company progress; to stories of frustration with bureaucracy and structural obstacles; to entrenched mindsets questioning leadership intentions. One positive narrative embodied a deeply-held belief about the mission of the organization that inspires employee dedication and commitment: Proud to Serve - I’m proud to work at my company because this job truly matters. We keep the lights on for millions, bringing energy, productivity, and possibility to one of the largest economies in the world. At my company, I’ve built new skills and worked with really great people—I love my team! Each morning, I’m proud to put on my company shirt and contribute to my community. When I’m out in the field, customers are happy to see me. While there’s always room for improvement, I can’t see myself making a career anywhere else. I see a path to grow professionally at this company, and I hope to retire as a proud employee. On the other hand, there were narratives that questioned leadership motivations and colored many well-intentioned employee engagement efforts: 3 Climbing Ladders, But Not Poles - Outsiders in management may have good intentions, but they’re completely out of touch with what actually happens in the field. Executives and managers who didn’t grow up in this company and have never gotten their hands dirty in the field don’t understand the job I do and the craft it involves. What’s worse, they continue to push competing priorities and conflicting metrics for safety and productivity that prevent me from practicing the craft I know best. This disconnect is having a serious negative impact. We’ve seen enough of management by decree—leaders need to spend more time in the field. They need to recognize our expertise, listen to us, and start making decisions with input from those of us that know the work. Once we generated and analyzed these narratives, we worked closely with our public utility client to apply the insights to priorities ranging from retention to productivity to employee safety. THE IMPACT: ENSURING THAT CULTURE CHANGE INVESTMENTS PAY OFF Long-Term Strategy Policy Communications Simply put, understanding Organizational Narratives can be the difference between success and failure in culture change initiatives. To help our client leverage Organizational Narratives to their advantage, we collaborated on a series of initiatives designed to enhance employee engagement. • Conducted data-driven analysis of leadership communications to understand what could trigger each narrative • Engaged senior leaders in a series of workshops to build awareness of how they help shape these narratives • Developed a comprehensive communications strategy centered around helping leaders attach to themes that trigger positive narratives, and avoid themes that trigger negative narratives • Used data to pinpoint specific lines of business and roles where narratives more acutely stood in the way of desired culture change • Identified quick wins for leaders to improve employee engagement through targeted and easily implemented policy changes • Uncovered deeper cultural challenges that leaders may need to address through carefully designed initiatives that combine open conversation, policy reform, and long-term investment • Developed a set of measurable goals for culture change initiatives • Created a monitoring system to track narrative changes over time to measure progress in shifting culture 4 Our client made clear progress in each of these key business areas—helping them to build a more engaged, productive, and empowered workplace. As a result of these activities, our client: • Increased perceptions of alignment with core employee values by intentionally shaping communication to amplify positive narratives that resonate with employees, like the mission-focused “Proud to Serve” • Demonstrated responsiveness to employee concerns by implementing targeted policy changes to address frustrations, like management’s perceived disconnect from the field workers revealed in narratives such as “Climbing Ladders, But Not Poles” • Enabled consistent tracking of return on investment for culture change initiatives by incorporating Organizational Narratives into existing quarterly surveys In sum, Organizational Narratives provide leaders with a powerful lens through which to navigate employee culture. They offer critical insight into deeply held employee beliefs and mindsets in a uniquely quantifiable and trackable way, and point to specific, highimpact strategies for creating a more aligned organization. Interested in making your own employee engagement efforts stick? We can help. The benefits of Organizational NarrativesTM for business and human resources leaders: • Provide unique insight into employee mindsets and what drives their behavior • Allow leaders to better diagnose business risk connected to company culture • Offer a new, actionable toolkit to increase the success rate of critical culture change initiatives • Get true insight “beyond the survey” and connect the growing volume of external and internal data to business outcomes • Ultimately, improve employee engagement, performance, and retention 5
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