Employee Engagement and Innovation with Louise Beardmore

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The key aspects of employee engagement and innovation as discussed by Louise Beardmore in a session focused on understanding roles, research findings, and future directions. The importance of engaged employees in organizational performance and the involvement of various sectors and experts in fostering innovation are highlighted.

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Employee Engagement and Innovation Louise Beardmore 25thSeptember

TODAYS SESSION >Who am I and where do I fit in to the Engage for Sucsess movement? >Engagement and innovation are we clear what we mean? >What did the research tell us? >Where have we focussed our attention? >What did we find? >What happens next? > The role of the guru group? 02/03/2025 ENGAGEMENT AND INNOVATION 2

WHO AM I AND WHERE DO I FIT IN? Louise Beardmore United Utilities We re the North West s water company. Hot showers, cups of tea, toilet flushes every morning, our core product gets used by 7 million customers An engaged employee is one that is fully involved in, and enthusiastic about, his or her work, and therefore will act in a way to improve their own and their organisations performance Towers Watson Our customer promise is Helping life flow smoothly FTSE 100 based in Warrington Our investment programme between 2010 and 2015 will see us spend more than 3billion, and create thousands of jobs in the communities we serve 02/03/2025 ENGAGEMENT AND INNOVATION 3

WHO AM I AND WHERE DO I FIT ON? 02/03/2025 ENGAGEMENT AND INNOVATION 4

WHO AM I AND WHERE DO I FIT IN? Team that represents all sectors and size from entrepreneurs and academics to Consumer, Manufacturing through to Defence and Utilities as well as the creative' s the real experts in innovation David Macleod Engage for Success Julian Birkinshaw London Business School Nita Clarke Engage for Success Lisa Duke London Business School Sir Eric Peacock Entrepreneur Mike Haffenden Strategic Dimensions Lara Morgan Entrepreneur Geoff Lloyd - Serco Matt Kingdon What If Colin Dixon BAE Systems Karen Callaghan Innocent Louise Beardmore United Utilities Alice Chapman Redgate Software 02/03/2025 ENGAGEMENT AND INNOVATION 5

ENGAGEMENT AND INNOVATION ARE WE CLEAR? Are we clear what we mean by engagement ? There are many Where do you start! An engaged employee is one that is fully involved in, and enthusiastic about, his or her work, and therefore will act in a way to improve their own and their organisations performance Towers Watson You know it when you see it! 02/03/2025 ENGAGEMENT AND INNOVATION 6

ENGAGEMENT AND INNOVATION ARE WE CLEAR? See and feel the impact of disengagement every day! 02/03/2025 ENGAGEMENT AND INNOVATION 7

ENGAGEMENT AND INNOVATION ARE WE CLEAR? Radical Advance Incremental Improvement Innovation is about harnessing and exploiting good ideas, whether big or small, to make us better at what we do People that have ideas and people who turn ideas to reality 02/03/2025 ENGAGEMENT AND INNOVATION 8

ENGAGEMENT AND INNOVATION ARE WE CLEAR? We have all seen and fundamentally get the connection between employee engagement and firm performance: - - - - Productivity Profit Customer service Efficiency But the link between engagement and innovation? 02/03/2025 ENGAGEMENT AND INNOVATION 9

WHAT DID THE RESEARCH TELL US? Julian Birkenshaw 1. We know employee engagement matters: there is solid evidence that companies with highly-engaged employees outperform those with less- engaged employees. 2. We know innovation matters. While there is no direct link between R&D expenditure and firm performance, studies looking more systematically at the underlying process provide evidence that companies investing in innovation outperform those that do not. 3. The link between engagement and innovation, while intuitively obvious, has not been carefully studied in the management literature. Page 10 02/03/2025 ENGAGEMENT AND INNOVATION

WHAT DID THE RESEARCH TELL US? Engaged employees find direct opportunities to innovate, they come up with ideas and follow them through (Pinchott, Kanter, Birkinshaw, Burgelman) Engaged employees simply work harder, so they provide greater and higher quality inputs (Sauermann & Cohen) Engaged employees look for new ways of adding value to the process, e.g. continuous improvement, making connections, collaborating (Sparrow) Innovation Outputs Innovation Inputs Innovation Process High levels of employee engagement lead to greater levels of innovation Page 11 02/03/2025 ENGAGEMENT AND INNOVATION

WHERE HAVE WE FOCUSSED OUR ATTENTION? Focussed our energy on identifying what drives and enables an innovative culture Identified how that links back to the four enablers of engagement Identified the measures, case studies and tools that will enable organisations of all sizes to realise the potential of all of their employees to innovate enabling incremental improvement through to radical advance 02/03/2025 ENGAGEMENT AND INNOVATION 12

WHAT DID WE FIND? The words and the music matched at all levels There was an energy and commitment to engagement to drive innovation There was a clarity that incremental and radical where both valued Most of all there was a link back to the four enablers . Enablers of Engagement ANd9GcS2pQnU0Nmy-pbNUatrzhlpKd3A-NlRsjfKp6hfZz02DNookwqdQtb_zg ANd9GcTD_4nl1rJx9FZQ8aBKhaXFbuvi8SpYdxW8q5s_PAUU9Ku5-XMZBnFZCahK 1.Strategic narrative 2. Engaging managers 3. Employee voice 4. Organisational Integrity 02/03/2025 ENGAGEMENT AND INNOVATION 13

ENGAGAMENT AND INNOVATION Links to the four enablers Enablers of engagement Enablers of innovation 1. Thought strategically and often take the long-term view 2. Customer-focused and market-oriented Strategic Narrative 3. Senior managers demonstrated through words, actions and resources that innovation was important 4. Employees where empowered to experiment and make decisions; things could happen without much bureaucracy or fear of blame if things don t go well 5. Transparent organisation; communicate clearly and often with each other, whatever the level or team 5. Encouraged to and have the opportunity to question and challenge the way we do business in our own and other parts of the business 7. Innovation is embedded in our values and is expected from everyone 8. Those who innovate get recognised and rewarded in our business Engagement and Innovation Engaging Managers Employee Voice Organisational Integrity 02/03/2025 14

ENGAGAMENT AND INNOVATION Links to the four enablers Enabler Enabler Self rating Self rating Comments Comments Actions to improve Actions to improve Still in the blocks blocks Still in the Front of the pack pack Front of the In the game game running In the In the 1. 1. We think strategically and often take the long term view long term view We think strategically and often take the 2. We are customer-focused and market- oriented oriented 2. We are customer-focused and market- 3. 3. Our senior managers demonstrate through words, actions and resources that Our senior managers demonstrate through words, actions and resources that innovation is important for our company innovation is important for our company 4. 4. We feel empowered to experiment and make decisions; we can make change happen without much bureaucracy or fear We feel empowered to experiment and make decisions; we can make change happen without much bureaucracy or fear of blame if things don t go well of blame if things don t go well 5. 5. We are a transparent organisation - we communicate clearly and often with each other, whatever our level or team other, whatever our level or team We are a transparent organisation - we communicate clearly and often with each 6. We are encouraged to question and challenge the way we do business and give ideas on how things can be improved in our 6. We are encouraged to question and challenge the way we do business and give ideas on how things can be improved in our own and other parts of the business own and other parts of the business 7. Innovation is embedded in our values and 7. Innovation is embedded in our values and is expected from everyone is expected from everyone 8. 8. Those who innovate get recognised and rewarded in our business rewarded in our business Those who innovate get recognised and Once you know where you are we will provide you with the case studies and the tools to help you try to move your position 02/03/2025 Engagement and Innovation 15

ENGAGAMENT AND INNOVATION Links to the four enablers Enablers of engagement Enablers of innovation 1. Thought strategically and often take the long-term view 2. Customer-focused and market-oriented Strategic Narrative 3. Senior managers demonstrated through words, actions and resources that innovation was important 4. Employees where empowered to experiment and make decisions; things could happen without much bureaucracy or fear of blame if things don t go well 5. Transparent organisation; communicate clearly and often with each other, whatever the level or team 5. Encouraged to and have the opportunity to question and challenge the way we do business in our own and other parts of the business 7. Innovation is embedded in our values and is expected from everyone 8. Those who innovate get recognised and rewarded in our business Engagement and Innovation Engaging Managers Employee Voice Organisational Integrity 02/03/2025 16

ENGAGAMENT AND INNOVATION Links to the four enablers Our senior managers demonstrate through words, actions and resources that innovation is important for our company Still in the blocks Still in the blocks In the running In the running Front of the pack Front of the pack Innovation isn t a topic that s discussed by senior managers Innovation activity is reserved to a small number of people and teams and senior managers The organisation is fairly internally focused, with senior managers spending little or no time looking for ideas from outside the business There is little or no resource dedicated to innovation People focus on their day-to-day job and we are not encouraged / allowed to spend time exploring new ideas or Innovation isn t a topic that s discussed by senior managers Innovation activity is reserved to a small number of people and teams and senior managers The organisation is fairly internally focused, with senior managers spending little or no time looking for ideas from outside the business There is little or no resource dedicated to innovation People focus on their day-to-day job and we are not encouraged / allowed to spend time exploring new ideas or implementing innovation / change. implementing innovation / change. Some senior managers talk about innovation that is happening and needs to happen. It s a relatively recent thing and we are starting to hear more Some senior managers spend their time leading on and supporting innovation work inside the organisation Some senior managers spend time exploring innovation and seeking inspiration from outside the organisation Resources financial and people are allocated to experimenting with new ideas and implementing change in pockets of the business We can take time out of our everyday roles to explore new ideas and implement innovation / change from Some senior managers talk about innovation that is happening and needs to happen. It s a relatively recent thing and we are starting to hear more Some senior managers spend their time leading on and supporting innovation work inside the organisation Some senior managers spend time exploring innovation and seeking inspiration from outside the organisation Resources financial and people are allocated to experimenting with new ideas and implementing change in pockets of the business We can take time out of our everyday roles to explore new ideas and implement innovation / change from time to time time to time Many if not most senior managers regularly talk about innovation that is happening and needs to happen in the organisation Many if not most senior managers spend their time leading on and supporting innovation work inside the organisation Senior managers spend time exploring innovation and seeking inspiration from outside the organisation Resources financial and people are allocated to experimenting with new ideas and implementing change across the whole business We are regularly given time out of our everyday roles to explore new ideas and implement innovation / change. and implement innovation / change. Many if not most senior managers regularly talk about innovation that is happening and needs to happen in the organisation Many if not most senior managers spend their time leading on and supporting innovation work inside the organisation Senior managers spend time exploring innovation and seeking inspiration from outside the organisation Resources financial and people are allocated to experimenting with new ideas and implementing change across the whole business We are regularly given time out of our everyday roles to explore new ideas Indicators Top stories about this enabler Top stories about this enabler Innocent Redgate Software HCL Ella s Kitchen Innocent Redgate Software HCL Ella s Kitchen 02/03/2025 ENGAGEMENT AND INNOVATION 17

ENGAGAMENT AND INNOVATION The case studies Recruiting entrepreneurs Just go with it 70% confidence 10 Case studies that link back to the enablers Sweat the small stuff day Down tools 9 postcards Whiteboard tours The Value portal Mad Jam American Idol The Power of One Allow you to learn and apply HCL Ella s thinking day Give it a go programme Ella s classroom 02/03/2025 ENGAGEMENT AND INNOVATION 18