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Professional Development for Optimal Engagement Is 55 enough? A case study from the Pragma Group of Companies

Presented by:

Tm Beavon (Partner Support Manager )

Stéphan Pieterse (People and Organisational Development Manager)

Some perspective…

Fifty Five: PAS 55 / ISO5500X

Fifty Five – The way to Integrated Asset Management

Integrated Asset Management

“… management of assets across the full asset life cycle as well as across all functional departments in an organisation.”

“… asset management is not a stand alone function, but can only succeed

when the financial resources, the human resources, the technical knowledge and

the supply chain management are combined under a leadership corps…”

Some perspective…

Is 55 enough?

Professional Development

Optimal Engagement

Amazing Results

Workshop Agenda

“Show me the money”

How do adults learn?

The Pragma Way

Survey Results and Actions Plans

“Show me the money…”

The positive influence of high engagement

at Pragma

Improve effectiveness Maximize potential Effective corporate

culture

Model and foster

humanistic values

“Organisational Development is the practice of restoring humanity to

environments that have so dehumanized us in the pursuit of process,

performance and profit.” (Peter Block)

The OD function has a developmental mandate; in fact, our job is to increase the

effectiveness of the organization and to maximize the potential of the human beings

in the work force.

• Recruitment

• Performance Management

• Employee relations

• Staff well-being

• Equity and diversity

• Labour costs

• Avoid litigation

• Policy management

People and Organisational Development

In Pragma’s case the following are examples of what POD is responsible for:

Employee engagement

Best Company to Work For

University Student Training ProgrammeBEE: EE & Skills Development

Learning Management System

Profiling for Recruitment &development

Leadership Team Development

Strengths Programme

Development Discussions Process Enhancements

OD/Training Material Research and Development

Induction material

What is Engagement?

“Engagement, in simple terms, is an employee's

willingness to give discretionary effort. Discretionary

effort is the difference between the level of effort that

an individual is capable of, and the level of effort

required to "get by." Engaged employees feel an

emotional bond to their employers.”Heather Racansky

“Engaged employees are, by their very nature,

anxious to contribute - they want to make a

difference.”

Engagement categories

High Engagement = Benefits!

NOT Engaged high employee turnover, no innovation, poor customer service, high absenteeism, low productivity, poor profits…`

Engaged innovation, high productivity, ideas, profits, success, excellence…

MeasurementMethodology

The Gallup Q12 is a survey designed to measure employee engagement.

The instrument was the result of hundreds of focus groups and interviews.

Researchers found that there were 12 key expectations, that when satisfied, form the foundation of strong feelings of engagement.

I know what is expected of me at work.

I have the materials and equipment I need to do my job right.

At work, I have the opportunity to do what I do best every day.

In the last seven days, I have received recognition or praise for doing good work.

My superior, or someone at work, seems to care about me as a person.

There is someone at work who encourages my development.

At work, my opinions seem to count.

The mission or purpose of my company makes me feel like my job is

My associates or fellow employees are committed to doing

I have a best friend at work.

In the last six months, someone at work has talked to me about my progress.

This last year, I have had opportunities at work to learn and grow.

16%24%

45%

7% 4%

55%

63%

46%

30%

20%

29%

13% 9%

63%

76%

Pragma2005

*WorldAverage

*SouthAfrica

**WorldClass

Pragma2014

Engaged

Not engaged

Actively disengaged

Pragma employee engagement levelsMarch 2014

*Source: The State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide report highlights findings from Gallup's ongoing study of workplaces in more than 140 countries from 2011 through 2012 (Published 8 October 2013)

**World Class: Quoted from The State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide report:

“The median engagement level among all of Gallup’s

clients is 47%, and it is even higher among our best

clients, the winners of the 2013 Gallup Great Workplace

Award. These organizations have an average of 63%

engaged employees and boast ***nine engaged employees

for every actively disengaged employee — a ratio that

is more than 16 times the global average.”

(***Pragma: 19 engaged employees for every actively disengaged employee)

High Engagement = Benefits!

Analysis background

• Q12 scores of Oct. ‘13• 44 employees• Avg. tenure of both groups

= 5.5 years

High Engagement = Benefits!

Performance ratings

22 employeesAvg. Q12 score: 58

22 employeesAvg. Q12 score: 37

Avg. performance rating (Oct ‘13)

3.3 3.0Variance 0.3

High Engagement = Benefits!

Strategy (HSSE) involvement

22 employeesAvg. Q12 score: 58

22 employeesAvg. Q12 score: 37

Avg. no. of items logged (since January 2012)

4.2 1.7Variance 2.5

High Engagement = Benefits!

Productivity

22 employeesAvg. Q12 score: 58

22 employeesAvg. Q12 score: 37

ROI of salary spend

R7,986,000R7,187,400

Unproductive spend:R798,600

(R36,300/employee)

R7,986,000R3,993,000Unproductive spend:

R3,993,000(R181,500/employee)

Variance R145,200 / emp.

90%

60%

40%

Assumptions:Salary bill R120 MilAvg/emp: R363K Productivity:Engaged: 90%Other: 50%EG: 90% x R363 x 22NEG: 50%

R23,958,000To the bottom line…

High Engagement = Benefits!

Client service

22 employeesAvg. Q12 score: 58

22 employeesAvg. Q12 score: 37

Avg. no. of VA nominations (sing Aug’ 2010)

2.1 1.5Variance 0.6

High Engagement = Benefits!

Turnover / View of company

4 employeesAvg. Q12 score: 52

4 employeesAvg. Q12 score: 40

Overall score

4.0(5.0) - manager

3.3(3.8) - manager

Variance 0.7

Dimensions checked:• Company as an organisation• Organisation’s management• Working conditions and hours• Your job role• Your manager• Career opportunities/progress• Training• Benefits and compensation

High Engagement = Benefits!

Turnover / View of company

2005% engaged: 26

2013% engaged: 72

Employee Turnover

22% 7%Variance 15

2.0

3.0

4.0

5.0

I know what is expected of me atwork.

I have the materials and equipmentI need to do my job right.

At work, I have the opportunity to dowhat I do best every day.

In the last seven days, I havereceived recognition or praise for

doing good work.

My superior, or someone at work,seems to care about me as a

person.

There is someone at work whoencourages my development.

At work, my opinions seem tocount.

The mission or purpose of mycompany makes me feel like my job

is important.

My associates or fellow employeesare committed to doing quality work.

I have a best friend at work. (Inother words: You have someone atyour company with whom you feelcomfortable with discussing yourwork and/or personal problems…

In the last six months, someone atwork has talked to me about my

progress.

This last year, I have hadopportunities at work to learn and

grow.

Overall score

2005 Mar 2014

Development Improves Engagement

Development Improves Engagement

“Show me the money …”

A quick survey…

Survey… results to be revealed later!

Survey… results to be revealed later!

How do adults learn?

In the beginning was Pedagogy

AssignedReadings

Fact-ladenlectures

Quizzes

DrillExercises

Examinations

Memorisation

Pedagogical Structure

Why does pedagogy work?

• If this system is so bad – how come it served us so well for centuries?

Human life-span versus time-span of social changes

Reference: Modern Practice of Adult EducationMalcom S. Knowles

Roman Empire

500 yrsRenaissance Period 200 yrs

25

yrs

30

yrs40 yrs 50 yrs 70 yrs 80+ yrs

18 & 19th

Centuries

Alexander Bell 1847

Alexander Fleming 1881

Bill Gates 1955

Mark Zuckerberg 1984

Then came Andragogy!!

• Early 1900’s demand for adult education rose with the expectation of better standards of living.

– Adults questioned the basis and relevance of facts and content previously not disputed

– Low adult learner retention rates

– Adults preferred untrained helpers to trained teachers

Knowles adult learning assumptions

Their self-concept moves from being dependent toward being self-directed

They accumulate experience and this becomes a resource for learning

Their readiness to learn becomes more focused upon the development of their social roles

Their time perspective changes from a postponed application of knowledge to an immediacy of application.

The implications for adult learning

• The learning climate: Care needs to be taken to ensure that the learners know that they are accepted, respected and supported. Driving the culture of engagement in an organisation validates the acceptance and respect.

The implications for adult learning

• Diagnosis of need: This consists of three elements:

– Self-diagnosis against a standard.

– Diagnostic tools against which the adult can assess their present level of competence

– Gap analysis in facilitate the self-improvement “motivation to learn”

The implications for adult learning

• The planning process: Recognise that the adult needs to be self-directed:

– The learner plans their learning program

– The teacher provides the procedural guidance and content resources

– The responsibility for the planning process is mutual between the learners and the teacher

The implications for adult learning

• Conducting learning experiences: Once again a mutual responsibility; the following nouns describe the role of the “teacher” most appropriately:

– Procedural technician

– Resource person

– Co-inquirer

– Learning catalyst

– Guide

The implications for adult learning

• Evaluation of learning: Evaluation must become a mutual process; strengths and weaknesses of the programme must evaluated as well as the strengths and weaknesses of the student.

• Move toward a process of re-diagnosis of learning needs

Adults have a deep investment in the value of their experiences; they will instinctively protect that investment

Adults have much to contribute to other people’s learning

Adults related to new experiences based upon their experiences of the past

Adults tend to be less open-minded because of their past experiences

The role of experience

How do we leverage this experience?

• Emphasis on experiential techniques: Tap into the adult learner’s experience and relate new learning to their experience:– Case studies

– Simulations

– Group discussions

– Projects

– Demonstrations

• Tap into their participation

and involve the ego

How do we leverage this experience?

• Emphasis on practical application:

– Practical case studies or experiential scenarios that tap into the learners experience

– Enable to the learner to plan or rehearse the application of the learning material in their day-to-day lives

70-20-10 by Charles Jennings

How do we leverage this experience?

• The timing of the learnings: Recognise that as with childhood and youth – adulthood too has it’s developmental periods.

Learning experiences must be tailored according to the appropriate developmental period i.e. supervisory type training when the learner was not yet secure in their understanding of the job requirements or preparation for retirement aimed at 40 year-olds

How do adults learn?

The Pragma Way

The Pragma WayTechnical DevelopmentTim Beavon

• Geographically diverse organisation with resources widely spread

• Need to engage employees, demonstrate our commitment to ensure that each individual is recognised, valued and developed to support the company strategy

• Sustainability, whatever is developed must be sustainable economically and according to the changing needs of the business

• Meeting the changing needs of our clients

The Elements

Engaged Employees

Assessment and

Evaluation

Training Matrix

Remuneration Policy

Personal Enrichment

Courses

Job Description

Access to Learning

Resources

Job Description

Training Matrix

Salary Scales

Making Resources Available

• Maintaining a balance

• Keeping the training relevant and meaningful

• Keeping learners motivated

• Maintaining flexibilitywithout loosingaccountability

E-Learning Environment

• e-Learning material available to all employees via LMS system on a self-enrolment basis

• Structured facilitated sessions with:

– Compulsory webinar sessions

– Quiz and written assessments

– Deadlines and accountability

Blooms Taxonomy

The Pragma Way – Asset Management TrainingA

MIP

17

Key

Per

form

ance

Are

as

Alig

nm

ent

Strategy Management

Information Management

Technical Information

Organisation and Development

Contractor Management

Financial Management

Risk Management

Health, Safety, Security and Environment

Asset Care Plans

Work Planning and Control

Operator Asset Care

Material Management

Support Facilities and Tools

Life Cycle Management

Shutdown and Outage Management

Performance Measurement

Focused Improvement

Strategic

Tactical

Operational

CPAM for Strategic Managers

CPAM for Tactical Managers

CPAM for Operational Employees

Strategic Managers Tactical Managers Operations Team

Certificate Courses in Physical Asset Management

The Pragma Way – Asset Management Training

Strategy Management

Information Management

Technical Information

Organisation and Development

Contractor Management

Financial Management

Risk Management

Health, Safety and Environment

Asset Care PlansWork Planning and Control

Operator Asset Care

Material Management

Support Facilities and Tools

Life Cycle Management

Project Shutdown andManagement

Performance Management

Focused Improvement

The Pragma Way – Asset Management Training

Course populations per AM KPA

Using the LMS

The Pragma WayPersonal DevelopmentStéphan Pieterse

I can’t focus!... There is just too much on my mind!

Why focus on personal development?

TechnicalDevelopment Personal

Development

“What should I do to ensure good career growth?”

“What are my strengths and how can I ensure that I use them most of the time?”

“My finances are in a mess! Am I saving enough for retirement?”

“What is success? How can I ensure growth?”

?

Courses on Offer

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

“Great value to understand how to best make

use of your strengths and to improve on them.

Also drives home the thinking of do what you

love doing and are strong in.... do not focus

on strengthening your weaknesses.”

“I knew what my strengths were, but never

knew what an important role it played in my

personal and working life. Thanks for helping

us recognising our roles through our

strengths! ”

4.3

4.7

4.3

1 2 3 4 5

The amount of homework wasmanageable

The sessions were well structuredand the presenter well prepared

The sessions added value to my life(personal and/or working life)

PDS: Strengths

max

Feedback

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

4.5

4.7

4.7

1 2 3 4 5

The amount of homework wasmanageable

The sessions were well structuredand the presenter well prepared

The sessions added value to my life(personal and/or working life)

PDS: Career

max

“I really enjoy these sessions. They definitely

keep you part of the Pragma Team and you

get to know everyone you work with. I really

enjoy the sessions as it has an impact on my

private life as well as my working career

which has just started at Pragma”

“I thoroughly enjoyed the sessions as it was

insightful and it related to everyone in their

own way. It helps to step back and think about

your life at that point in time; and have a

deep/meaningful think about what is actually

going on in your life, and if you are where

you want to be. Thank you, Stephan!”

Feedback

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

Courses Content Examples

4.6

4.8

4.5

1 2 3 4 5

The amount of homework wasmanageable

The sessions were well structuredand the presenter well prepared

The sessions added value to my life(personal and/or working life)

PDS: Growth

max

“Both session teach me how I as an individual

can grow and what tools i can use to better

my career The structure of the sessions was

well prepared - Thank You Stephan ”

“The homework was quite 'challenging' as it

was something I have never thought about

before, and I realised how important it is

when I sat down and took time to think about

it. Once implemented in one's life, I'm sure

there will be positive results as an outcome!

Definitely an eye-opener”

Feedback

The Pragma Way

Survey Results

4

12

5

19

0-150 151-250 251-500 501-1000 1000+

Organisation size: 44,850 employees

Survey Results: focus on learning & development and engagement

Annual salary bill = R14,455,000,000Avg per employee = R300,000

31

Survey Results: focus on learning & development and engagement

48%

52%

Do you believe your organisation is spending enough resources on training and development?

Yes

No

Survey Results: focus on learning & development and engagement

39%

61%

Does every employee in your organisation have a specific training and development plan?

Yes

No

23%

77%

Are managers in your organisation being held accountable for the execution of training plans?

Yes

No

Survey Results: focus on learning & development and engagement

13%

87%

Is the effectiveness of training and development of employees being measured at your organisation?

Yes

No

Survey Results: focus on learning & development and engagement

35%

65%

Does your organisation focus on the improvement of their employees engagement levels?

Yes

No

Survey Results: focus on learning & development and engagement

13%

87%

Are managers in your organisation being held accountable for ensuring high engagement levels?

Yes

No

Survey Results: focus on learning & development and engagement

Survey Results: Engagement Benchmark

16%24%

45%

7% 4%

45%

55%

63%

46%

30%

20%

48%

29%

13% 9%

63%

76%

6%

Pragma2005

*WorldAverage

*SouthAfrica

**WorldClass

Pragma2014

SAAMA

Engaged

Disengaged

Actively disengaged

Survey Results: per question

1.0

2.0

3.0

4.0

5.0

I know what is expected of meat work.

I have the materials andequipment I need to do my job

right.

At work, I have the opportunityto do what I do best every day.

In the last seven days, I havereceived recognition or praise

for doing good work. (I amhappy with the recognition I…

My superior, or someone atwork, seems to care about me

as a person.

There is someone at work whoencourages my development.

At work, my opinions seem tocount.

The mission or purpose of mycompany makes me feel like

my job is important.

My associates or fellowemployees are committed to

doing quality work.

I have a friend at work or I workin an environment where

opportunities are created forcolleagues to become friends.

In the last six months, someoneat work has talked to me about

my progress.

This last year, I have hadopportunities at work to learn

and grow.

Overall score

Pragma 2005 Pragma 2014 SAAMA

Survey Results: focus on learning & development and engagement

Annual salary bill = R14,455,000,000Avg per employee = R300,000

Average productivity 53%

Productive spent R7,102,500,000

Unproductive spent R6,352,500,00

Unproductive spent per employee R141,639

Is 55 enough?

% productivity 55

Annual T&D budget 5.5%

% engaged employees 55

PAS / ISO 55X

Take action

Thank you

Contact details:

Tim BeavonPartner Support Manager

(021) 943-3900

tim.beavon@pragmaworld.net

Stéphan PietersePeople and Organisational Development Manager

(021) 943-3900

stephan.pieterse@pragmaworld.net

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