1. 1 Managing the Employee-Customer Encounter

2. 2 “A chance for something to go wrong…” “We just don’t trust them that much…” “Get a life!…” Are People Assets or Liabilities?

3. 3 HumanSigma ® Performance Bands Copyright © 2007 Gallup. Inc. All rights reserved. 1.8x 3.8x 2.5x 5.2x 4.5x

4. 4 Customer Engagement Hierarchy Can’t imagine a world without Perfect company for people like me Treats me with respect Feel proud to be a customer Fair resolution of any problems Always treats me fairly Always delivers on promise Name I can always trust Your company is irreplaceable to me. I feel passionate about you. Your company is prestigious. It is part of who I am. When we have a problem, you always treat me fairly. I can safely assume that you will always keep your promises. Copyright © 2000 Gallup. Inc. All rights reserved. Passion Pride Integrity Confidence

5. 5 Copyright © 2007 Gallup. Inc. All rights reserved. All Advocates Are Not Created Equal Commercial Banking Air Cargo Shipping 100 “JDS”

6. 6 Amygdala Ant. Cingulate r=.789 r=.766 Differential Neural Activity: Passion Copyright © 2007 Gallup. Inc. All rights reserved.

7. 7 Employee Engagement Copyright © 2007 Gallup. Inc. All rights reserved.

8. Daily Pulse 8 Happiness/Enjoyment without a lot of Stress/Worry Stress/Worry without a lot of Happiness/Enjoyment Copyright © 2008 The Gallup Organization, Princeton, NJ. All rights reserved.

9. 9 1.Friends 2.Relatives 3.Significant Other ---------------------------------- 3 rd from last: Customers 2 nd from last:Co-workers Dead last: Boss Housecleaning People We Enjoy Being Around Source: Kahneman, D., et al. (2004). A Survey for Characterizing Daily Life Experience: The Day Reconstruction Method. Science. 306. 1776-1780. 9 Copyright © 2007 Gallup, Inc. All rights reserved.

10. 10 Copyright © 2007 Gallup. Inc. All rights reserved. What Does Employee Disengagement Look Like?

11. 11 Note: Differences are between top and bottom quartile workgroups. Absenteeism statistic is the difference between engaged and actively disengaged employees. Employee Engagement and Performance Copyright © 2007 Gallup. Inc. All rights reserved.

12. 12 Copyright © 2007 Gallup. Inc. All rights reserved. Employee Engagement and EPS 2.6x Higher Growth Rate for High Engagement Companies Note: Based on analysis of data from 89 publicly traded companies. Engagement data collected from 2002 to 2004. Comparables averaged 7.3 competitors per company.

13. 13 The 12 Elements of Great Managing T HE F IRST E LEMENT Knowing What’s Expected T HE S ECOND E LEMENT Materials and Equipment T HE T HIRD E LEMENT The Opportunity to Do What I Do Best T HE F OURTH E LEMENT Recognition and Praise T HE F IFTH E LEMENT Someone at Work Cares About Me as a Person T HE S IXTH E LEMENT Someone at Work Encourages My Development T HE S EVENTH E LEMENT My Opinions Seem to Count T HE E IGHTH E LEMENT A Connection with the Mission of the Company T HE N INTH E LEMENT Coworkers Committed to Doing Quality Work T HE T ENTH E LEMENT A Best Friend at Work T HE E LEVENTH E LEMENT Talking About Progress T HE T WELFTH E LEMENT Opportunities to Learn and Grow Copyright © 2008 Gallup. Inc. All rights reserved.

14. 14

15. 15 Pr( MORT i,s,h = 1 | x i ) 1 - Pr( MORT i,s,h = 1 | x i ) ( ) ln = α0 + α 1 ·Z i + ε i,s,h

16. Individual Contributions 16 Employees need to experience success in their performance. A key to this is the degree to which the job fits their talents, skills, and preferences. It’s also crucial that employees feel that they are contributing to the organization and that those contributions are valued. Honest feedback is essential to an accurate assessment of performance, but more than that, it provides the kind of data our minds need to learn and eventually master new tasks and demands.

17. Teamwork: Do I Belong? 17 Employees have a need to belong to something bigger than themselves. This sense of belonging starts with the social membership benefits we expect from any group to which we belong. Making an emotional commitment requires: Continuity in your social and material conditions — a sense of the reliability of people and things. Confidence in your place in society and your right to be yourself. Faith that you can achieve your maximum “you-ness”

18. How Can We Grow? 18 A psychologically committed employee in an engaging work environment is primed for innovation and growth. Employees who have the opportunity to discuss their progress develop a deeper emotional commitment to the organization. Once this longer-term commitment is formed, the employee naturally raises the question of where am I going from here? A deeper psychological affiliation: “ I AM Gallup

19. Improving Engagement 19 Manage by outcomes not behaviors. Liberate don’t legislate. Engagement is for everyone. All politics is local.

20. 20 The Tactics of HumanSigma ® Evaluation –Objective data are necessary to provide an accurate assessment of current performance and to set out realistic short-range and long- term goals. Intervention –Activities should target identified areas for improvement and capitalize on identified strengths at both local team and enterprise levels. –“Meet them where they are.” Activities must be appropriate for each team’s current level of performance. Encouragement –Recognition and reward programs provide incentive for continued improvement. Copyright © 2007 Gallup. Inc. All rights reserved.

21. Curing Disengagement? Copyright © 2007 The Gallup Organization, Princeton, NJ. All rights reserved. Ignored 2% 58% 40% Weakness 22% 33% 45% 100% 80% 60% 40% 20% 0% Engaged Not Engaged Actively Disengaged Strengths 61% 38% 1%

22. Workplace Ratios Productivity Positive-to-negative ratio Workplace Ratio (3:1) Upper Limit (12:1) Copyright © 2007 The Gallup Organization, Princeton, NJ. All rights reserved. Source: Fredrickson, B. L. & Losada, M. (2005). Positive affect and the complex dynamics of human flourishing. American Psychologist, 60 (7) 678-686.[4]

23. 23 Strengths Net Gain Study: Higher Productivity Productivity was 12.5% higher (post-treatment) among teams whose manager received any form of strengths education or intervention. Increase in Productivity n = 530 business units

24. 24 Copyright © 2008 Gallup. Inc. All rights reserved. The Tactics of HumanSigma ® Transactional Transformational Evaluate InterveneEncourage Measurement Logistics Analysis Performance Zones Road Map & Targets Brand Promise Alignment Action Planning SWAT Teams Customer Advisory Boards Preferred Recognition Performance Communication/ Celebration Local Celebrations/ Recognition Formalized Rewards Institutionalize Accountability Build a SBO Learn and Leverage Strengths Select for Talent Peer Group Mentors Level 5/6 Summit Performance Linked to Advancement/ Promotion Case Studies

25. 25 Reported plan helped make progress Reported plan did not help make progress “Working the plan” is strongly related to actual improvement Copyright © 2007 Gallup. Inc. All rights reserved.