Page 4 - ESM17-4
P. 4
B ig Picture
Bruce Bolger, Managing Director,
Enterprise Engagement Alliance
Could The Pope Be
Talking About Engagement?
ever did I think I would fnd myself writng about Pope Francis, companies over the last six years. It found that in years three to six,
at least in the context of Enterprise Engagement. The world of the companies with high levels of engagement outperformed both
Nthe Pope might seem far removed from the issue of Enterprise the S&P 500 and (by an even wider margin) the companies with poor
Engagement, which of course has nothing to do with religion. And engagement scores. The margin was less pronounced in the frst three
it would be far beyond my expertse to in any way speak of God and years, but stll outperformed both groups.
His teachings on behalf of any religion, and how they might or might Afer startng a similar index last year, we’ve discovered
not apply to business. Yet, the issues Pope Francis recently has raised something intriguing. So far the companies with low engagement
about redistributon of wealth do have some bearing on our emerging have actually outperformed both the good companies and the S&P
feld, in that they touch upon the driving purpose of Enterprise 500. Even though McBassi’s team atributed at least some of this to
Engagement: the opportunity to create more wealth for everyone, not an unusually high volume of mergers and acquisitons among the
necessarily through redistributon of wealth – we’ll leave that to the low engagement companies over the last year, another possibility
politcians – but by understanding and proftng from the true value comes to mind: With CEO turnover an almost weekly occurrence
and investors focused on short-term returns, the easiest way to get
of people in a way that creates a virtuous circle beneftng consumers, results is to maximize revenue and cut costs, no mater the long-term
employees, vendors, communites and shareholders. By valuing consequences. It remains to be seen whether this is why short-term-
people in business, we not only elevate ourselves in the eyes of God, focused companies would do beter initally, but the research indicates
if the Pope is correct, we also elevate our own business practces and that it’s highly likely they will fall well behind in the long term, paying
outcomes. the price for having cut corners.
THE CONNECTION 2. IT CAN’T BE MEASURED IN MY ORGANIZATION
Companies that contnue to overlook this strategic focus on people Another reason many CEOs have ignored Enterprise Engagement
ignore overwhelming evidence that organizatons with highly engaged is because, while the macro data suggests it might work for other
customers and employees perform beter over tme in the stock organizatons, it’s not easy to make the engagement connecton on
market, generate higher earnings than their compettors over tme, the basis of one’s own company. How does a single organizaton
have lower marketng and recruitment costs and generally have realistcally gauge not only the level of engagement of its
beter relatonships with their surrounding communites. And more consttuencies, but also correlate that to actual results? Untl recently,
to the point, organizatons that focus on engagement almost always this was nearly impossible.
pay beter than their compettors and do more for their employees Today, Big Data promises to change that. It will become
and everyone in their communites because they see the connecton increasingly easy for organizatons to measure customer and
between people, performance and proftability.
employee satsfacton and turnover; willingness to speak positvely
It’s so logical that engagement is a critcal success factor, one of the company and its products; levels of productvity and quality;
wonders why there’s even a need for research to substantate it. overall employee wellness; involvement in organizatonal learning,
Despite the compelling results from multple credible sources and the communicatons, collaboraton and reward & recogniton programs;
clear-cut examples of organizatons whose results prove it – Whole etc., and correlate all that to performance in specifc regions or areas
Foods, Southwest Airlines, Costco, Alcoa and numerous others – so far of the company. This will make it difcult to ignore the engagement
only a small percentage of U.S. business leaders “get it.” I believe there connecton, when management can quantfy the impact within their
are two major reasons why. own organizatons.
1. SHORT-TERMISM EARTHLY REWARDS
About a year ago, the EEA began a stock index based on research Big Data will not prove to top management that there is a reward
provided by McBassi, a leading analytcs company. Using a database afer death for engaging all of their people, but it does promise to
of companies with high engagement scores with both customers and demonstrate that such organizatons are rewarded in this lifetme.
employees and a list of companies with low customer and employee What beter way for the Pope to make his point about a more humane
engagement scores, McBassi studied the stock performance of those approach to capitalism? It’s good for business. ESM
4 engagement strategies Vol.17 Issue 4
4 engagement strategies Vol.17 Issue 4
Bruce Bolger, Managing Director,
Enterprise Engagement Alliance
Could The Pope Be
Talking About Engagement?
ever did I think I would fnd myself writng about Pope Francis, companies over the last six years. It found that in years three to six,
at least in the context of Enterprise Engagement. The world of the companies with high levels of engagement outperformed both
Nthe Pope might seem far removed from the issue of Enterprise the S&P 500 and (by an even wider margin) the companies with poor
Engagement, which of course has nothing to do with religion. And engagement scores. The margin was less pronounced in the frst three
it would be far beyond my expertse to in any way speak of God and years, but stll outperformed both groups.
His teachings on behalf of any religion, and how they might or might Afer startng a similar index last year, we’ve discovered
not apply to business. Yet, the issues Pope Francis recently has raised something intriguing. So far the companies with low engagement
about redistributon of wealth do have some bearing on our emerging have actually outperformed both the good companies and the S&P
feld, in that they touch upon the driving purpose of Enterprise 500. Even though McBassi’s team atributed at least some of this to
Engagement: the opportunity to create more wealth for everyone, not an unusually high volume of mergers and acquisitons among the
necessarily through redistributon of wealth – we’ll leave that to the low engagement companies over the last year, another possibility
politcians – but by understanding and proftng from the true value comes to mind: With CEO turnover an almost weekly occurrence
and investors focused on short-term returns, the easiest way to get
of people in a way that creates a virtuous circle beneftng consumers, results is to maximize revenue and cut costs, no mater the long-term
employees, vendors, communites and shareholders. By valuing consequences. It remains to be seen whether this is why short-term-
people in business, we not only elevate ourselves in the eyes of God, focused companies would do beter initally, but the research indicates
if the Pope is correct, we also elevate our own business practces and that it’s highly likely they will fall well behind in the long term, paying
outcomes. the price for having cut corners.
THE CONNECTION 2. IT CAN’T BE MEASURED IN MY ORGANIZATION
Companies that contnue to overlook this strategic focus on people Another reason many CEOs have ignored Enterprise Engagement
ignore overwhelming evidence that organizatons with highly engaged is because, while the macro data suggests it might work for other
customers and employees perform beter over tme in the stock organizatons, it’s not easy to make the engagement connecton on
market, generate higher earnings than their compettors over tme, the basis of one’s own company. How does a single organizaton
have lower marketng and recruitment costs and generally have realistcally gauge not only the level of engagement of its
beter relatonships with their surrounding communites. And more consttuencies, but also correlate that to actual results? Untl recently,
to the point, organizatons that focus on engagement almost always this was nearly impossible.
pay beter than their compettors and do more for their employees Today, Big Data promises to change that. It will become
and everyone in their communites because they see the connecton increasingly easy for organizatons to measure customer and
between people, performance and proftability.
employee satsfacton and turnover; willingness to speak positvely
It’s so logical that engagement is a critcal success factor, one of the company and its products; levels of productvity and quality;
wonders why there’s even a need for research to substantate it. overall employee wellness; involvement in organizatonal learning,
Despite the compelling results from multple credible sources and the communicatons, collaboraton and reward & recogniton programs;
clear-cut examples of organizatons whose results prove it – Whole etc., and correlate all that to performance in specifc regions or areas
Foods, Southwest Airlines, Costco, Alcoa and numerous others – so far of the company. This will make it difcult to ignore the engagement
only a small percentage of U.S. business leaders “get it.” I believe there connecton, when management can quantfy the impact within their
are two major reasons why. own organizatons.
1. SHORT-TERMISM EARTHLY REWARDS
About a year ago, the EEA began a stock index based on research Big Data will not prove to top management that there is a reward
provided by McBassi, a leading analytcs company. Using a database afer death for engaging all of their people, but it does promise to
of companies with high engagement scores with both customers and demonstrate that such organizatons are rewarded in this lifetme.
employees and a list of companies with low customer and employee What beter way for the Pope to make his point about a more humane
engagement scores, McBassi studied the stock performance of those approach to capitalism? It’s good for business. ESM
4 engagement strategies Vol.17 Issue 4
4 engagement strategies Vol.17 Issue 4
