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Engaging for success: Enhancing performance through employee engagement One of the deepest insights that emerged was the role of the line manager in enabling and building engagement. As a result, there has been a steady and sustained commitment to improving the capabilities of all managers and to educating them in their role as team leaders. Richard Bide is not complacent though: “We are doing well, engagement levels and profitability have improved very significantly and we have successfully completed a huge business integration. We know we still have some way to go, however our successful approach to sharing the responsibility for engagement across our leadership, business operations, human resources, communications and marketing teams, is something we are extremely proud of and we believe is paying real dividends.” 46
Chapter 2: The Case for Employee Engagement – The Evidence Case Study KPMG In 2003, the business climate was challenging for consultancy and large accountancy firms such as KPMG.The workforce demographics were changing and the attitude towards ‘careers for life’ was shifting. KPMG was experiencing high turnover rates – approximately 50 per cent for newly qualified professionals – and it was proving difficult to retain exceptional performers. Staff feedback revealed that managers did not have the capability (skills, time, attitude) to fulfil their role in developing their staff, contributing to high turnover. This forced KPMG to become smarter about how it managed and engaged its people. Rachel Campbell was appointed to the KPMG Board as Head of People. She spent her first six months listening and talking to people managers and those they managed, to get a real feel for the issues. From this, KPMG developed the ‘Managing for Excellence’ (MfE) change management and engagement programme. MfE has underpinned some significant changes to the way KPMG manages and in particular has elevated the status and focus on effective people management. A key innovation was in the development of the role of the People Management Leaders (PML) which was introduced across all business areas. Around 350 people, typically senior manager grade, were identified as great people managers and given full accountability for people management activities for a group of people in their department (between 20-100 people). KPMG has developed a support structure behind the PML network, including one-to-one coaching, annual conferences and development centres. Now, this role has a high profile in the firm and is seen as career enhancing for many, and is ensuring that all staff are managed effectively and fairly in a way which brings out their best. In the first five years following the introduction of the MfE programme KPMG saw greater commercial success resulting in increased bottom line performance. 47
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