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21.5.2012 1 Employee Engagement: The Means to Superior Quality Juran Body of Knowledge (JBOK) All Rights Reserved, Juran Institute, Inc. 6218 Improving the Management of Quality.PPT

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Page 1: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

21.5.2012

1

Employee Engagement:

The Means to Superior Quality

Juran Body of Knowledge (JBOK)

All Rights Reserved, Juran Institute, Inc.6218 Improving the Management of Quality.PPT

Page 2: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

21.5.2012

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Session Objectives

My main purpose for being here today is to…

1. Share our understanding on our approach to gaining employee engagement.

2. Learn how employees can be engaged in quality management activities.

3. Share some real-life examples.

How Did They Build The Pyramids?

All Rights Reserved, Juran Institute, Inc. 4

Engaged Employees

Page 3: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

21.5.2012

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Time1950 to today

Improving Performance

Lean Six Sigma

TQM

Engaging Employees – A Bit of Quality History

QI Teams

Quality Circles

Employee Engagement & Managing Quality

SPC Teams

All Rights Reserved, Juran Institute, Inc.6218 Improving the Management of Quality.PPT

An "engaged employee" is one who is fully involved in, and enthusiastic about their work and

thus will act in a way that furthers their organizations’ interests.

Page 4: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

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Recent Study

All Rights Reserved, Juran Institute, Inc. 7

� In a study of professional service firms, the Hay Group found that offices with engaged employees were up to 43% more productive.

� The most striking finding is the almost 52% gaps in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores.

� High-engagement companies improved 19.2% while low-engagement companies declined 32.7% in operating income during the study period[citation needed].

Employee Perceptions

All Rights Reserved, Juran Institute, Inc. 8

Employee perceptions of job importance ...an employees attitude toward the job's

importance and the company had the greatest impact on loyalty and customer service then all other employee factors

combined.

Page 5: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

21.5.2012

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1. Employee clarity of job expectations 2. Career advancement/improvement opportunities 3. Regular feedback and dialogue with superiors 4. Quality of working relationships with peers,

superiors, and subordinates 5. Perceptions of the ethos and values of the

organization 6. Effective Internal Employee Communications7. Reward to engage

More Employee Perceptions

"Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment

to their job, colleagues and organization which profoundly influences their willingness to learn and

perform at work".

Page 6: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

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Financial Impact

� For example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged.

� Those not engaged generated 23% less revenue than their engaged counterparts.

� Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions.

All Rights Reserved, Juran Institute, Inc. 11

Hewitt Associates Large HR Firm

Page 7: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

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• Alignment to Plans & Values• Clear Workforce Practices• Policies & Procedures

• Training • Problem Solving Teams• Health, Safety & Security• Effective & Efficient

Processes Design

• Leadership Lives JCI Values• Commitment to JCMS • Develop Support

Infrastructure• Earns the Trust of Workforce• Leaders Credibility

• State of Self-control• Effective Scorecards• Regulate Process and Stop

Work• Results

Control Commitment

CommunicationCollaboration

Juran Model

forEngaged Culture

Time2012 to tommorrow

Improving Performance

Engaging Employees – A Bit of Quality History

Employee Engagement & Managing Quality

Process Innovation

All Rights Reserved, Juran Institute, Inc.6218 Improving the Management of Quality.PPT

Quality by Design

Managing Value Streams

Self Managed Design Teams

Page 8: Employee Engagement: The Means to Superior · PDF fileFor example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that ... Employee Engagement

21.5.2012

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Thank You