Organisational energy concept and research

Dr. Heike Bruch and Dr. Daniela Brečko

Organisational Energy concept

FULLY CHARGED

What do we actually need for perform better – IQ or EQ

© Prof. Heike Bruch 3

What is Organizational Energy?

Organizational Energy is the force with which an organization works.

The strength of Organizational Energy manifests in the extent to which a company has mobilized its emotional, cognitive, and

behavioral potential in pursuit of its goals.

© Prof. Heike Bruch 4

Relevance of Organizational Energy

Lack of energy manifests as...

Change tiredness (Buchanan/Claydon/Doyle, 1999)

Cynicism (Dean/Brandes/Dharwadkar, 1998)

Lack of innovation (Sull, 2003)

© Prof. Heike Bruch 5

Different States of Organizational Energy

CorrosiveEnergy

ProductiveEnergy

Comfortable Energy

Resigned Inertia

positivenegative

Intensity

high

low

Source: Bruch & Ghoshal (2003): Unleashing Organizational Energy, MIT Sloan Management Review

Quality

Corosive Energy

Productive energy

Resigned Inertia Comfortable Energy

visoka

• negative internal tension• conflicts• rumurs• lack of problem solving • no teamwork• high level of negative stress • unclear goals• Unclear work instruction• People are often engage in activities to weaken others • the company are often cynical of company goals or objectives.

•Clear focus• High attention• Intensive work• co-operation• searching for solutions in teams (together), take action to resolve the problems• high performance• positive exitement, always looking for new opportunities• are proud on their work•are inspired on ther job

• lack of motivation• no activities, • bad communication• emotional burnout people are depressed in their job. are discouraged in their job. believe there is no "future" in our work.

• lasy athmosfere• calmness, satisfaction • easy work, easy tempo• lack of tendness, lack of „live“• no actions• employees are to much satisfy with their curent work tasks• doing by old patterns• Are easy in their jobs

„The crisis carried us to the limits of our possibilities. It was difficult but no one

complained. In contrast, we enjoyed the challenging situation. We achieved things, we had never believed to be possible. We were surprised at the enormous energy which was

revealed in that period of time.

(Wolfgang Mayrhuber, Until 2010 CEO Lufthansa AG)

Companies with high corrosive energy…

Companies with high productive energy…

based on a sample of 104 companies in 2007, 2008, 2009

+ 14,4% + 13,9%

+ 6,9%

+2,3%

+12,1% +12,1%

-8,1%

org. per-formance

efficiency of business processes

ROI growth customer satisfaction

employee satisfaction

turnover intentions

org. per-formanc

e

efficiency of business processes ROI growth

customer satisfaction

employee satisfaction

turnover intentions

- 24,6% - 19,8% - 19,7%

- 16,4%

- 13,3%

- 17,6%

+ 16,6%

Source: Study of the Institute of Leadership and Human Resources Management , University of St. Gallen, Survey results from more than 500 companies (2007-2009)

Consequences of Selected Energy States

2006/2011

PE– 48%

CE– 36 %

RI – 35%

KE – 56 %

PE– 69%

CE – 52 %

RI – 49%

KE – 49 %

…HOW WE ARE DOING?

10 % of best German companies i (all together 187 companies and 24.000 emloyess, (H. Bruch, B. Vogl, 2011)

PE– 81%

EUI – 74 %

ERI – 12%

KE – 18 %

SLOVENIANOE INDEKS 2011

OE INDEX Productive Energy

ComfortableEnergy

Resigned Inertia

Corosive energy

Slovenija 2006 48% 36% 35% 56%

Slovenija 2011 69% 49% 52% 49%

Benchmarking 81%

75% 12% 18%

PEProductive

energy

CE Comfortable

energy

RIResigned

Inertia energy

CECorosive energy

75%

Ideal 80%

70 % or more

But PE must be equal or higher

up to 25% up to 25 %

Slovenia 2011 69% 49% 52% 49%

HOW TO READ AND UNDERSTAND OE INDEX

CONCLUSION:

Measure and consciously use the Energy of Your Company

For increasing productive energy, lead not only in a transactional but especially also in a transformational way. Inspiring!

Take Charge of Your Own Energy

Excellence is in People, not in processes