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Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams

The Learning and Reporting System on Corporate Culture. Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams. Values. Intern. policies & practices. Employee attitudes. Employee behavior. Delegation Dezentraliza-tion Leadership Communi-cation Participation Development

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Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams

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  1. The Learning and Reporting System on Corporate Culture Enterprise for Health May 7-8, 2007, Rouen, France Carsten Tams

  2. Values Intern. policies & practices Employeeattitudes Employeebehavior • Delegation • Dezentraliza-tion • Leadership • Communi-cation • Participation • Development • Job security • Health & safety • Entrepreneur-ship • Creativity • Citizenship • Workplace design • Job design • Employee selection & development • Employee rewards & recognition • Tools for serving customers • Identification with job and company • Autonomy and self-actualization • Participatory leadership • Development perspectives • Motivation • Employee retention • Employee productivity From values to business success • Our model for measuring organizational culture:The “values-profit chain” Goals • Businesssuccess (e.g., revenue growth, profitability) • Contribution to society Compare: Putting the Service-Profit Chain to Work; James L. Heskett; Thomas O. Jones; Gary Loveman; W. Earl Sasser Jr.; Leonard A. Schlesinger, HBR OnPoint Article, July 01, 2000.

  3. Interlinked tools for managing organizational culture • What are the mission and values that make us successful? • According to our employees, do we live up to these values and goals? The Essentials Employee Surveys • How do the people practices in our company compare to others? • What practices are available to enhance the culture in our company? The Corporate Culture Toolbox The Corporate Culture Survey

  4. From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Businesssuccess • Corporate Culture Survey: • A web survey for heads of HR on people related policies & practices

  5. From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Businesssuccess • Companies participating in survey 2001 2002 2003 2004 Redesign 2005

  6. From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Businesssuccess • Each company receives a customized, detailed report. • This report allows the company to compare the practices it has implemented with the practices implemented in the comparison group.

  7. Staffing/job security/job creation Employee information and communication Training & development Leadership development Compensation and benefits From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Businesssuccess • Aggregating the responses of multiple companies reveals shared priorities or challenges. • 240. In managing people in your company, which of the following topics will be among your top 3 priorities in the next 12 months? max. 3 answers

  8. From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Businesssuccess • The Corporate Culture Toolbox: • A directory of policies and practices of Bertelsmann companies

  9. Comp. • Eligible employees • 2002 • 2003 • 2004 • 2005 • 2006 • 2007 • 2008 • Since 2002, more then 20.000 employees were eligible to participate in a survey commissioned by their division or company. 30 11.296 DirectGroup 12 39 ca. 6.000 2.730 1 279 Bertelsmann Stiftung RTL Group Gruner + Jahr 2 2024 arvato From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Employeeattitudes Businesssuccess • High demand for employee surveys leads to foundation of Bertelsmann Survey Services.

  10. From values to business success • Putting the values-profit chain into practice: Values Intern. policies & practices Employeeattitudes Employeebehavior Businesssuccess • Corporate Culture • Survey (Heads of • HR): • Employee behaviors (turnover, sick rate, etc.)

  11. Administration of the Corporate Culture Survey • What were the topics addressed in the questionnaire? • The questionnaire asked about HR-related practices (e.g, Does your company have a succession management program?), workforce demographics (e.g., How many managers are female?) and employee behaviors (e.g., turnover). • Who filled in the survey? • Typically the Head of HR of the company. In some cases the GM or the works council representative participated. • Per company, only one questionnaire was filled out.

  12. arvato direct services Dortmund GmbH arvato direct services Kornwestheim GmbH arvato direct services, Springe arvato direct services Wilhelmshaven GmbH arvato services Gütersloh arvato services UK Liverpool arvato systems GmbH BAG Unternehmensbereich Mohn Media BCA Berryville Graphics BFS finance Ltd. BMG Direct Indianapolis BMG publishing Bookspan, US Circulo de Lectores Circulo de Leitores S.A. Corporate Center Donauland Eurohueco France Loisirs GGP Media GmbH inmediaONE JPK Bertelsmann Distribution Russia mb Tiefdruck Offset Paperback Manufacturing Random House Germany Random House UK Random House US - Adult Publ. & Sales Random House US - Childrens Books Random House US - Op. Cent. Westminster and Crawford Sonopress Germany Sonopress Irland Sonopress LLC SONY BMG Sony/SonyBMG Swiat Ksiazki Polen UFA Film & TV Produktion Who was invited to participate in Corporate Culture Survey?

  13. Learnings 1. Bottom-up learnings Aggregating the responses of multiple companies reveals shared priorities or challenges

  14. Top 3 Priorities for HR professionals in arvato companies • 240. In managing people in your company, which of the following topics will be among your top 3 priorities in the next 12 months? max. 3 answers Staffing/job security/job creation Training & development Leadership development Employee information and communication Human resource strategy Compensation and benefits Customer relations Work/life balance... Employee relations/employee representation Awareness of company mission and values Other Occupational health & safety Delegation Bertelsmann (N= 37)

  15. Practices currently of greatest interest to Bertelsmann companies • 241. Which of the following programs/policies/practices is currently of particular interest to you? (49 possible answers) Leadership training programs Developmental training programs Goal setting and performance evaluation Leadership performance evaluation Regular review of company’s human resource strategy Succession planning programs Programs for planning employees’ T&D activities Performance objectives / competency models Programs to promote communication btw. CEO and employees Market rate comparison of compensation package Mentoring and coaching programs Technical training programs Health/wellness-related benefits Performance recognition programs for outstanding performance Departmental bottom-up feedback meetings Bertelsmann (N= 37)

  16. Practices currently of greatest interest to Bertelsmann companies • 241. Which of the following programs/policies/practices is currently of particular interest to you? (49 possible answers) 65% Leadership training programs Developmental training programs 62% 57% Goal setting and performance evaluation 51% Leadership performance evaluation 51% Regular review of company’s human resource strategy Succession planning programs 49% • 3 areas are of particular interest to Bertelsmann companies: Programs for planning employees’ T&D activities 49% Performance objectives / competency models 46% Programs to promote communication btw. CEO and employees 43% Market rate comparison of compensation package 43% • Leadership development Mentoring and coaching programs 43% Technical training programs 40% Health/wellness-related benefits 40% Performance recognition programs for outstanding performance 38% Departmental bottom-up feedback meetings 38% 0% 50% 100% Bertelsmann (N= 37)

  17. Practices currently of greatest interest to Bertelsmann companies • 241. Which of the following programs/policies/practices is currently of particular interest to you? (49 possible answers) 65% Leadership training programs Developmental training programs 62% 57% Goal setting and performance evaluation 51% Leadership performance evaluation 51% Regular review of company’s human resource strategy Succession planning programs 49% • 3 areas are of particular interest to Bertelsmann companies: Programs for planning employees’ T&D activities 49% Performance objectives / competency models 46% Programs to promote communication btw. CEO and employees 43% Market rate comparison of compensation package 43% • Leadership development Mentoring and coaching programs 43% Technical training programs 40% • Training Health/wellness-related benefits 40% Performance recognition programs for outstanding performance 38% Departmental bottom-up feedback meetings 38% 0% 50% 100% Bertelsmann (N= 37)

  18. Practices currently of greatest interest to Bertelsmann companies • 241. Which of the following programs/policies/practices is currently of particular interest to you? (49 possible answers) 65% Leadership training programs Developmental training programs 62% 57% Goal setting and performance evaluation 51% Leadership performance evaluation 51% Regular review of company’s human resource strategy Succession planning programs 49% • 3 areas are of particular interest to Bertelsmann companies: Programs for planning employees’ T&D activities 49% Performance objectives / competency models 46% Programs to promote communication btw. CEO and employees 43% Market rate comparison of compensation package 43% • Leadership development Mentoring and coaching programs 43% Technical training programs 40% • Training Health/wellness-related benefits 40% Performance recognition programs 38% • Performance management Departmental bottom-up feedback meetings 38% 0% 50% 100% Bertelsmann (N= 37)

  19. Expertise offered by Bertelsmann companies • 242. About which of the following programs/policies/practices would you be willing to share your expertise with other Bertelsmann companies? (49 possible answers) Developmental training programs Flexible work arrangements Goal setting and performance evaluation Leadership training programs Performance objectives / competency models Orientation/induction program for newly hired employees Occupational health and safety programs Employee handbooks, outlining company’s policies & programs Work/life balance-related activities Market rate comparison of compensation package Employee suggestion programs On-the-job training programs Insurance plans for medical/health/life Performance recognition programs for outstanding performance Employee intranets Bertelsmann (N= 37)

  20. Expertise offered by Bertelsmann companies • 242. About which of the following programs/policies/practices would you be willing to share your expertise with other Bertelsmann companies? (49 possible answers) 16% Developmental training programs Flexible work arrangements 16% 16% Goal setting and performance evaluation 14% Leadership training programs 14% Performance objectives / competency models Orientation/induction program for newly hired employees 14% • Expertise offered in 3 areas are of particular interest: Occupational health and safety programs 14% Employee handbooks, outlining company’s policies & programs 14% Work/life balance-related activities 14% • Training: some Market rate comparison of compensation package 14% Employee suggestion programs 14% On-the-job training programs 14% Insurance plans for medical/health/life 11% Performance recognition programs for outstanding performance 11% Employee intranets 11% 0% 50% 100% Bertelsmann (N= 37)

  21. Expertise offered by Bertelsmann companies • 242. About which of the following programs/policies/practices would you be willing to share your expertise with other Bertelsmann companies? (49 possible answers) 16% Developmental training programs Flexible work arrangements 16% 16% Goal setting and performance evaluation 14% Leadership training programs 14% Performance objectives / competency models Orientation/induction program for newly hired employees 14% • Expertise offered in 3 areas are of particular interest: Occupational health and safety programs 14% Employee handbooks, outlining company’s policies & programs 14% Work/life balance-related activities 14% • Training: some Market rate comparison of compensation package 14% Employee suggestion programs 14% • Performance management: some On-the-job training programs 14% Insurance plans for medical/health/life 11% Performance recognition programs 11% Employee intranets 11% 0% 50% 100% Bertelsmann (N= 37)

  22. Expertise offered by Bertelsmann companies • 242. About which of the following programs/policies/practices would you be willing to share your expertise with other Bertelsmann companies? (49 possible answers) 16% Developmental training programs Flexible work arrangements 16% 16% Goal setting and performance evaluation 14% Leadership training programs 14% Performance objectives / competency models Orientation/induction program for newly hired employees 14% • Expertise offered in 3 areas are of particular interest: Occupational health and safety programs 14% Employee handbooks, outlining company’s policies & programs 14% Work/life balance-related activities 14% • Training: some Market rate comparison of compensation package 14% Employee suggestion programs 14% • Performance management: some On-the-job training programs 14% Insurance plans for medical/health/life 11% • Leadership development: little Performance recognition programs for outstanding performance 11% Employee intranets 11% 0% 50% 100% Bertelsmann (N= 37)

  23. Learnings 1. Bottom-up learnings 2. Top-down learnings Feeding back aggregate (!) data to companies provides them with a more comprehensive picture of the state of their company.

  24. What are some of the key findings that this report reveals to “Sample Company”?

  25. Leadership Development is one of the areas in which relatively few practices are implemented.

  26. “Sample company” has implemented fewer practices in the category “Leadership development” than 50% of the companies in the comparison group.

  27. “Sample company” has implemented 20% of all practices related to “Leadership development”. • In the comparison group, companies implemented on average 41% of all practices related to “Leadership development”. This means: “Sample company” does considerably less than the average company in the comparison group. • Let’s take a closer look inside the category “Leadership development”.

  28. “Sample company” uses 360-degree feedback. • But is has only partially implemented a training program for leadership development. • It has no program to evaluate managers’ leadership performance.

  29. “Sample company” does not track who amongst its managers is ready for promotion.

  30. The 360 survey about managers’ leadership style is not conducted regularly.

  31. Succession planning is not conducted regularly.

  32. Members of the senior management group have short tenure. Only 11% have been with the company for more than 3 years. • This is less then in 93% of companies in the comparison group (7th percentile).

  33. A lot of change in the Management Team! • Leadership Development might be an important issue in this company.

  34. “Leadership development” is not marked as one of the 3 priorities in the next 3 months.

  35. However, the company identifies 9 Leadership Development-related practices as of current interest.

  36. Summary of learnings about Leadership Develop-ment that “Sample company” can draw from this report: • Leadership Development is one of the areas in which relatively few practices are implemented. • To the extent that Leadership Development practices exist, they tend to be partially implemented and not applied regularly. • However, Leadership Development might be an important issue: The Management Team’s tenure in the company is very low. Many senior managers have been promoted from within. • Not surprisingly, “Sample company” identifies 9 Leadership Development-related practices as of current interest. • There are a number of other companies who share interest in these practices. Is there potential to cooperate or exchange expertise?

  37. Any questions or comments? • Please contact: • Carsten Tams • Vice President HR Policy and Corporate Culture • Corporate Human Resources • Bertelsmann AG • carsten.tams@bertelsmann.com • phone: • +1 212 782 1057 • +49 (0) 5241 80 89026

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