Improving Business Performance by Creating a Feedback Rich Culture

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Improving Business Performance by Creating a
Feedback Rich Culture
Bill Redmon
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Topics

• Bechtel Company Profile
• Overview of Employee Engagement Movement
• Review of methodology for increasing feedback on
  a corporate-wide basis
• Report of results from ongoing work at Bechtel
• Implications for OBM

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EC Industry Profile
Bechtel

• 3.5 trillion global construction market
• Highly fragmented
• High Risk --- Low Margins
• Top 225 firms have about 400 billion revenue, or
  11 percent of the global market
• Bechtel is the leading international contractor
  with 14 billion revenue

Top 225
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Some History

• Dams, bridges, highways by 1920s
• First pipeline, petroleum work by 1930
• International work starting in 1939
• First power, mining projects in 1940s
• First space projects in 1950s
• Major mass transit, offshore oil, aviation
  projects in 1960s-70s
• Launched Bechtel Enterprises to invest in power
  and infrastructure projects in 1980s
• Significant Government Operations and Maintenance
  Contracts in the 1990s
• Massive Telecommunication Infrastructure Projects
  in 2000 and beyond

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Hoover Dam (1931 1936)

• Largest concrete dam in U.S., weighs 6.6 million
  tons
• 3,000 workers per shift
• Generates 4 billion kilowatt hours per year,
  serving 1.3 million people

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Hong Kong Airport (1990 1998)

• At 20 billion, worlds largest infrastructure
  program
• 10 distinct projects
• New Island
• High-Speed Railway
• 2 Tunnels
• 2 Bridges
• 2 Expressways
• 1 Highway
• and....The World Class Airport

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Kuwait Oil Fires (1991 1993)

• 120 million/day in lost revenues, environmental
  nightmare, recovery hurdle
• 650 oil wells on fire
• Fires could reach 2,000 degrees F
• Flashlight required at high noon due to smoke
• 70 MM barrels in lakes covering EO
• No infrastructure
• Brought in 125,000 tons of equipment
• Provided 21 MM gallons H20 per day
• Provisioned workforce of 10,000
• Fires out /wells capped in 8 months
• Pre-invasion production in 15 months

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Bechtel by the People

• 29,000 non-manual employees
• 77 North America
• 5 South/Latin America
• 13 EAMS
• 5 Asia Pacific
• 108 nationalities
• 77 U.S. Citizens/23 non-U.S. Citizens
• 73 male 27 female
• 16,700 craft employees

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Industry Leadership Drivers

• Apparent
• Reputation and Systems
• Global Reach, Local Touch
• Risk Management
• Financial Strength
• Innovation and Discipline
• Culture
• Partners

• Root
• Customer Needs and Desires
• Financial Capital
• Human Capital
• LEADERSHIP

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High Performance Model
Leadership scorecard
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Employee Engagement Movement
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Engagement Model

• Measure engagement of leadership/company with
  employees
• Measure productivity
• Correlate engagement and productivity
• Continuously improve engagement to produce high
  levels of commitment and discretionary
  performance

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Gallup Q12 Questions Measure Engagement

• Twelve factors predict strength of commitment in
  the workplace, as described in First, Break All
  the Rules
• 1.      Know whats expected
• 2.       Have materials and equipment
• 3.       Opportunity to do my best daily
• 4.       Received recognition in last seven days
• 5.       Care about me as a person
• 6.       Encourages my development
• 7.       My opinions count
• 8.       Feel my job is important
• 9.       Coworkers committed to quality
• 10.   Have a best friend at work
• 11.   Progress discussion in last six months
• 12.   Learning/growth opportunities in last year

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Employee Engagement as a Leading Indicator -
Gallop Research

• Measure engagement with the Q12 survey 12 items
  that define level of engagement.
• Metrics for business units with high employee
  engagement
• Productivity 50
• Employee retention 44
• Profitability 33
• Customer loyalty 56
• Safety 50
• Overall performance 78

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Bechtels Performance Based Leadership
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Bechtels Business Model
Leadership
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Behavioral Approach to Execution
DCOM
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Behaviors
Maximum Results

• GGood short-term results
• Fearful, uncommitted employees

• SSustainable results
• Engaged, committed employees

• PPoor resultsgo out of business
• Disengaged employees

• PPoor resultsgo out of business
• Engaged employees

(What is produced by behaviors)
Minimum results
Negative Impact
Positive Impact
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Performance Based Leadership (PBL) at Bechtel
Top 20 Workshops 11 Coaching
Cascade
Next 200 Top Leaders Workshops 11 Coaching
Next 1000 Managers and Supervisors Online
training, Application Workshops, Leadership
Scorecard
Next 2000 To be determined
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Workshop Topics

• Day 1
• Welcome Introduction
• Using a Behavioral Approach (employee engagement)
• Prioritizing Results Pinpointing Behaviors
• Analyzing Behavior (ABC)
• Understanding Your Behavior
• Day 2
• Measuring Behavior
• Communication Skills (Speaking, Questioning,
  Listening)
• Delivering Feedback (Positive Constructive)
• Plan for extending learning back to job
• Wrap Up/Evaluate Workshop

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11 Coaching (Assessment, Feedback and Behavior
Change)
Kick off working session with leader
Provide feedback, pinpoint behaviors and track
change

• Review existing feedback
• performance appraisal
• upward feedback
• 360º feedback
• other

• Observe leader
• during meetings
• (when possible)
• with direct reports
• with peers
• public forum/speaking

• Observe leader
• receiving 360º feedback
• (when possible)
• if done orally/dialogue
• using clients 360º process preferably

Conduct interviews with 10 to 15 people selected
leader and their manager
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Extend PBL to next 1000 Need Efficient Approach

• Use Performance-Based Leadership (PBL) online
  modules to introduce participants to core
  concepts and skills necessary to pinpoint,
  measure and analyze behavior
• Conduct application workshops to provide
  participants with the opportunity to apply the
  skills learned in the online course
• Perform structured skill practice activities
• Provide coaching following application workshops
• Implement a leadership scorecard as our system of
  measurement to imbed consequences in natural work
  environment

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Employee Engagement at Bechtel
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Implementation

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EMPLOYEE ENGAGEMENT
Coach
Identify
to influence desired behaviors
business goal, result target
Leadership Toolkit
Leadership Toolkit
Measure
Pinpoint
results, behaviors
performer, critical behavior
Analyze
how to understand and influence current
desired behavior
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Leadership Scorecard
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How the Scorecard Works
Scorecard sent online to direct reports of each
participant every 90 days.
Report is sent to each participant and their
manager.
Direct reports anonymously complete scorecard
online
Participant and manager prepare developmental
plan.
Item averages and a total score are calculated
for each participant.
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Role Descriptions
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How Will It Be Used?

• Current
• Initially used for development during a
  socialization period
• Individual results shared with manager and direct
  reports only
• Aggregate reports shared with organization
  management
• Future
• Longer term used for assessment of supervisory
  performance
• Used as a data point in decision making, not a
  formula or fixed percentage

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Some Results from Initial Efforts
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Employee Engagement Highlights

• Employee Engagement (EE) is a behavior
  based leadership development program designed to
  improve business results through better
  interaction between managers and the people they
  supervise.
• 2002 - Start-up
• Piloted program at 6 locations (Support by CLG)
• Reduced costs by creating internal delivery
  capability
• Redesigned/improved EE program scorecard
• 2003 - Delivery Accomplishments
• Major GBUs (Power, Telecom, BNI (NTS), PC
  London, MM, Civil)
• Several functions (Finance, IST, BBS, Corporate
  Affairs, HR)
• Two major projects (WTP CTRL)

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Employee Engagement Highlights

• 2004 - Strategy and Approach
• Shift from corporate funded to pay for services
  due to overhead cost reductions
• Continue penetration within GBUs, functions,
  projects
• Maximize deployment with minimal resources
  demand/pull approach
• Current Involvement Level
• 563 managers have participated in program
• 3,883 direct reports have provided feedback on
  scorecard
• 38 EE workshops have been conducted

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EE Effectiveness Data
Did managers like Employee Engagement?
Overall average based on 214 responses for
Workshop 1 96 responses for Workshop 2
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EE Effectiveness Data
Did managers learn anything in Employee
Engagement?
PBL Tools Self Assessment
Overall average based on 188 responses for
Workshop 1 and 86 responses for Workshop 2
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EE Effectiveness Data
As a result of EE, did managers change their
behavior back on the job?
Direct reports who agree their manager interacts
better with them on the job
Direct reports who agree their manager provides
positive feedback more effectively
Managers who found the scorecard effective in
providing feedback on their behavior
Managers who found the upward feedback meeting
with their reports valuable
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EE Effectiveness Data
PBL tools used the most back on the job by
manager
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Implications for OBM

• The applied behavior analysis tools work (e.g,
  ABC analysis, pinpointing)
• Concept learning is best done online with
  application done in face-to-face sessions
  (blended)
• Delivering and receiving feedback is the key
  skill
• Training effects are sustained by embedding
  consequences (through a reciprocal relationship
  between manager and employee) in the natural work
  setting