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EEA Launches People Value Impact Calculator to Help Make Better Engagement and Compensation Decisions

The Enterprise Engagement Alliance and Talent Management Evolution have created a People Value Impact Calculator (PVIC) that organizations can use to make better compensation, engagement, sales, marketing and other decisions; to better estimate the cost of disengagement on sales, profits, stakeholder experiences, and other goals and objectives; and measure the effectiveness of engagement investments, and design. It is designed to make it easy for any organization to create highly measurable engagement efforts using the Master Measurement Model created for the Incentive Research Foundation by the American Productivity & Quality Center. A basic one-company license for PVIC comes with an EEA Enterprise and Solution Provider membership.

PVIC Is Included With EEA Enterprise and Corporate Solution Provider Membership
Track Cost of Disengagement; Where Stakeholder Value Is Created, and Engagement Impact
Multi-Company Licenses Available
Example: Employee Value Impact
Reports Can Track Value Creation, Cost of Disengagement, Impact of Engagement Efforts, and More

Click here for links to information about EEA preferred engagement solution providers.

A recent report by the management consulting firm Protiviti states that profitabilty and reporting analysis rank among the top concerns of CFOs (chief financial officers) in the coming year. In conjunction with compensation and technology company Talent Management Evolution, the EEA is offering a powerful new tool to help organizations rapidly identify new areas of value creation through people. 

Enterprise and Solution Provider Members of the Enterprise Engagement Alliance gain a unique new benefit: an easy-to-use SaaS platform enabling any organization to calculate the source of stakeholder value creation in organizations; estimate the cost of low engagement by stakeholder group; evaluate the impact of incentive, recognition, loyalty, or other engagement initiatives on employees, customers, distribution and supply chain partners, volunteers, or any stakeholders. It is designed to make it easy for any organization to not only quickly gain a much better handle on the source of value creation in the organization but to design highly measurable incentive, recognition, loyalty or other engagement efforts using statistical process controls commonly applied in quality management. Click here to learn about and join the Enterprise Engagement Alliance; PVIC is only available at no cost to Enterprise and Solution Partner members; otherwise, annual costs start at $2,000. 
This new SaaS platform, developed by the new Enterprise Engagement Alliance research division powered by the Talent Management Evolution technology, aims to do for stakeholder engagement what total quality management has accomplished in manufacturing: enable organizations to strategically enhance performance and experiences by fostering the proactive involvement of all stakeholders—customers, employees, supply chain and distribution partners, and communities—based on actual organizational data, explains Bruce Bolger, Founder of the Enterprise Engagement Alliance. “The goal is to obtain a better understanding of where value is created within organizations and which stakeholders have the greatest impact on achieving the purpose, goals, and objectives of the organization. For the first time, organizations can better understand  and correlate the contributions of different stakeholders on a more holistic basis so they can pinpoint where to make more investments. PVIC makes it easy to correlate whatever data exists in the system, using different types of line graphs or pie charts as appropriate to help visualize relationships between different engagement factors and stakeholders. 

To speed up the process, the PVIC handbook provides a template of recommended data designed to achieve the best results that organizations can use to upload the data either through file transfer or manual entry. By using recommended data fields, users gain access over time to aggregate benchmarking information. Within one month or less of receiving the available data, depending on what is provided for what purpose, PVIC can provide a preliminary analysis showing:
  • The stakeholders creating the most value for the organization, department, or team being analyzed, including their impact on the experiences of other stakeholders, internal or external. 
  • An estimate of the cost of disengagement, if any, among the stakeholders, based on actual data compared with previous time periods, and the potential return on investment of addressing the issue.
  • An overview of the effectivess of specific programs on the purpose, goals, and objectives of the organization, based on the data on engagement investments provided. 
PVIC licensees can begin using the Master Measurement model process for designing effective engagement efforts that correlate results- with process-goals to make sure the correct behaviors are encouraged. 
PVIC is a joint venture of the Enterprise Engagement Alliance and one of its preferred solution providers, Talent Management Evolution, a Minnesota-based compensation and total rewards software and advisory company. The logic is based on practices employed regularly in total quality management outlined in the Master Measurement Model, created by the American Productivity and Quality Center for the Incentive Research Foundation in the early 2000s. 

By offering a complete education program on effective practices along with tools to clearly measure the results, the EEA provides a complete solution for the implementation of stakeholder management. 

PVIC Is Included in EEA Enterprise and Corporate Solution Provider Membership

A single-company license to the People Value Impact Calculator (PVIC) is included at no additional cost with the EEA Enterprise and Solution Provider membership level, with a one-time $300 setup fee. Says Bolger, “Using an organization’s own data uploaded quarterly on a confidential basis, PVIC enables organizations to more precisely correlate any investments in stakeholders--employees, customers, supply chain and distribution partners—with actual outcomes in terms of sales, profitability, referrals, or whatever purpose, goals, and objectives an organization is seeking to achieve. PVIC works with the data organizations already have related to their purpose, goals, objectives, and values, and levels of stakeholder engagement that can easily be manually entered or uploaded on a quarterly basis or other schedule as required for comparing performance across different time periods."

In addition, engagement planners can easily spin up measurement systems for any type of incentive, recognition, loyalty, event, trade show, or other initiative by inputting the goals, objectives, value of accomplishing them, and even weighting them consistent with the statistical process controls used daily in total quality management embodied in the Master Measurement Model with a module being completed in January. 
Summarizes Darwin Hanson, CEO, Founder, Talent Management Evolution: “PVIC is a low-cost tool based on actual data that enables organizations to pinpoint more accurately the true sources of value creation by stakeholder group; the costs of disengagement, and the effectiveness of engagement investments over time, based on actual data. This enables them to make better decisions related to the funds used to compensate and engage employees, customers, distribution and supply chain partners or other stakeholders.” He adds, “it all but eliminates any claims that people investments cannot be measured or that it is a burden to do so, because PVIC makes it so easy to gain better insights into where value is truly being created.”

Click here to learn about and join the Enterprise Engagement Alliance; PVIC is only available at no cost to Enterprise and Solution Partner members. 

Track Cost of Disengagement; Where Stakeholder Value Is Created, and Engagement Impact

According to Bolger and Hanson, PVIC is specifically designed to enable organizations to identify much more precisely which groups of internal and external stakeholders create the most value within organizations. This includes the ability to track the actual impact over time of investments in different classes of stakeholders on key organizational goals with a precision rarely possible by correlating actual data over time in easily viewed graphics with a click of the mouse. While PVIC comes with a template that includes almost any possible combination of people data an organization may wish to correlate, it can be easily customized to include the data any organization wishes related to its purpose, goals, objectives, and values, financial and otherwise. 
For instance, an organization can get a snapshot view of what happened in terms of sales, profits, referrals, or any organizational objective, correlated individually or within groups, of expenditures in training, communications, technology, incentives, meetings, or literally any activity for which there is either data for costs, revenues, or rankings in terms of impact on organizational outcomes, etc. Explains Hanson, “It can quickly run what-if scenarios showing what would happen to key organizational goals and objectives over time based on making changes in investments in compensation or other types of investments in engaging different classifications of employees, including senior management, or for that matter customers, distribution and supply chain partners, or any stakeholders within or outside the organization."   
As a result, organizations can make decisions on where to allocate investments related to compensation, rewards and recognition, learning, communications, recruitment, DEI (diversity, equity, inclusion) for employees, or marketing programs for customers and other stakeholders, based on actual value created using a transparent framework and actual data rather than on the traditional metrics of cost to replace or rule-of-thumb assumptions with often little connection to actual outcomes, Hanson points out.

Adds Bolger, "PVIC serves as an easy to use wizard to help planners rapidly explore different program scenarios aimed at not only focusing people on their goals but on the steps to success--those actions, which performed more effectively, will yield to better results. There will no longer be any excuse for companies not to better measure the quantitative and qualitive elements needed to succeed." 

Hanson says his company created the technology to make it easy to quickly visualize the impact of investments or actions on the organization's purpose, goals, and objectives as an enterprise or within a specific group. "Once the parameters and in data are in place, the user simply drags and drops the parameters into a central field, sets the time line, and the correlations come to life in a line graph, bar or pie chart in a way that can be changed with another few clicks of the mouse." 

Multi-Company Licenses Available

The EEA says a PVIC multi-company license is available for companies with multiple divisions or agencies and advisory firms seeking to help multiple clients identify their true sources of value creation within the organization or the effectiveness of engagement efforts based on actual impact, either financial or based on other goals and objectives. This includes the ability to correlate data within the groups and/or eventually with the aggregate data of all PVIC users on a strictly anonymous basis.
PVIC advisors help organizations create the appropriate reporting template for their needs and can include the new European Union Corporate Sustainability Reporting Directive, ISO 30414 human capital, ISO 10018 people engagement standards, or any standards desired. Click here for information on ISO standards. Security is ensured because PVIC does not identify companies by name, but rather with a code not linked via the Internet to Enterprise Engagement Alliance, preventing even a successful hacker from knowing the identity of any company in the system. 
Hanson says options for data entry include CSV file uploads or easy-to-use manual entry on the schedule required for comparing results over time, quarterly, annually, or whatever time frame desired. Data includes whatever information the organization can provide over whatever time frame, including, revenues and costs by stakeholder category; engagement survey results; customer service scores; referrals; safety incidents; legal claims; customer or employee turnover; DEI data (diversity, equity, inclusion); costs of customer or employee replacement; wellness; loyalty; or whatever data your organization deems important enough to keep track of. The system also includes a means for management to assign a weight to the value of and impact of various roles on the organization and other stakeholders and correlate this information with financial and other results or activities being tracked. 
PVIC uses the actual data the organization provides on a quarterly or annual basis under an NDA (non-disclosure agreement) to correlate almost any human resources, marketing, sales, costs or other activity for any stakeholder with the outcomes selected, starting with sales and profits but including any other purpose, goal or objective tracked by your organization, including repeat business, employee or customer referrals and retention or profitability, safety, diversity, etc.

All information is confidential to each organization, which enters an SIC code and size of company range only for the purposes of benchmarking aggregate data anonymously. 
Once the data is loaded, Hanson explains, with just a few clicks of the mouse, the user can select almost any of the data points the organization wishes to correlate, the time periods for comparison, and see the results displayed graphically in a bar graph, line chart, or combination. Select as many criteria as desired and for whatever period required, he says, to look for interesting connections an organization might ordinarily overlook. 

Example: Employee Value Impact

PVIC can be used to establish the value impact of any stakeholder group and/or the effectiveness over time of almost any combination of engagement investments based on actual data and management insights, points out Bolger. Here’s an example for its application for employees based on the type of data already available in most organizations, he says. 
Employee costs and trackable data. Using PVIC, companies can track all costs related to employees and other key data: total employee payroll, benefits; incentives, recognition, training, recruitment and/or costs to replace employees; voluntary turnover, etc.
Engagement data. PVIC enables companies to easily track and correlate voluntary turnover, employee engagement and/or willingness to recommend surveys; actual number of employee referrals, translated into a scale of one to 10, with 10 being maximum reasonable expectation for engagement defined by “proactive involvement in the organization’s purpose, goals, and objectives.”
Engagement practices. These fields account for the costs of specific practices used to engage people: pay, incentives, benefits, training, voice, perquisites, or, for customers, discounts, special payments, travel or other tangible reward incentives, etc., the cost of those practices, and any return-on-investment measurement practices. 
Stakeholder impact. These fields enable management to track the degree to which they believe the stakeholder group being analyzed has a financial or other direct impact on other stakeholders (internal customers) as well as an impact on their workplace experience, i.e., ability to do their jobs effectively. This is based on a one to 10 rating of the level of financial impact and of the level of experiential impact (i.e, level of friction) on other stakeholders.
Key calculations used to determine the financial cost of employee disengagement. Depending on the type of business and organization, financial indices can include human capital return on investment; human capital value add; costs and profitability per employee, customer, or distribution partner, etc. Qualitative indices include level of engagement and level of impact on other stakeholders rated on a 1-10 basis. This is defined as the level of impact a best- or worst-case scenario can have on other key stakeholders; for example, the level by which poor customer service will affect loyalty or willingness to recommend of customers, with 1 being the most extreme outcome. 

Reports Can Track Value Creation, Cost of Disengagement, Impact of Engagement Efforts

Using the above process and data, organizations can better determine: 1) the source of value creation and better (or worse) experiences within the organization; 2) the cost of disengagement by stakeholder category; 3) the impact of specific engagement efforts, including incentives, recognition, loyalty, training, technology, etc. on the purpose, goals, objectives or other key factors, and 4) design more effective incentive, recognition, and loyalty programs by easily weighting qualitative and quantitative factors to keep people focused on the appropriate goals and actions. 
PVIC offers the unique benefit of enabling organizations to base their metrics on their purpose, goals, objectives, and values, and the data they already have available, rather than having to make any changes in organizational processes or data collected. With a few clicks of a mouse, organizations can quickly run multiple combinations of scenarios to determine what specific actions have the greatest impact on achieving their goals and objectives.
Correlations can include: 
  • Estimated level of engagement now versus past three years (or period for which data is available) versus sales, profits, or any other metric for which data is available.
  • Estimated level of impact on other stakeholders over past three years (based on management/stakeholder estimates of relative value contribution)—on a scale of 1 to 10, how much has the performance of the targeted group affected other stakeholders tracked in the system.
  • Current state of value creation by stakeholder group measured by form of value creation: sales, profits, productivity, quality, retention, referrals, safety, wellness, human capital ROI, human capital value add.    
  • Any of the above financial or other information correlated with expenditures in specific activities combined or separated, including surveys, incentives, recognition, technology, literally any activity for which the organization has budget information.
  • Estimated change from the previous two years or longer (or other pre-determined timeframe) on any of the above metrics.
  • The relationship between goals achieved and the actions taken to achieve them. 
The system can be used to correlate literally any data available to the organization to better identify the source of value creation. For instance, any company can easily set up an incentive, recognition, and loyalty program with quantitative and qualitative measures weighted to create state-of-the-art programs consistent with the Master Measurement Model from the American Productivity and Quality Center--a feature available by the end of January 2024. 
Note: If this process is used to analyze all key stakeholders, it is possible to have a more precise understanding of the actual financial and experiential impact on other stakeholders as well. This can be representated as a pie chart to more easily visualize the people investments likely to yield the greatest results and the areas where less investment may be warranted. 
For More Information

Click here to learn about and join the Enterprise Engagement Alliance; PVIC is only available at no cost to Enterprise and Solution Partner members. 

Bruce Bolger, Founder
Enterprise Engagement Alliance
914-591-7600, ext. 230

Sign up to become an Enterprise or Solution Provider Member of the EEA for $1,500 to set up a brief meeting to discuss the data your organization has available and the best process for uploading it.

ESM Is Published by The EEA: Your Source for Effective Stakeholder Management, Engagement, and Reporting

Through education, media, business development, advisory services, and outreach, the Enterprise Engagement Alliance supports professionals, educators, organizations, asset managers, investors, and engagement solution providers seeking a competitive advantage by profiting from a strategic and systematic approach to stakeholder engagement across the enterprise. Click here for details on all EEA and ESM media services.

 1. Professional Education on Stakeholder Management and Total Rewards

2. Media

3. Fully Integrated Business Development for Engagement and Total Rewards

 Strategic Business Development for Stakeholder Management and Total Rewards solution providers, including Integrated blog, social media, and e-newsletter campaigns managed by content marketing experts.

4. Advisory Services for Organizations

Stakeholder Management Business Plans Human Capital Management, Metrics, and Corporate Sustainability Reporting for organizations, including ISO human capital certifications, and services for solution providers.

5. Outreach in the US and Around the World on Stakeholder Management and Total Rewards

The EEA promotes a strategic approach to people management and total rewards through its e-newsletters, web sites, and social media reaching 20,000 professionals a month and through other activities, such as:
Earn Big $ In EEA Referral Program
Enterprise Engagement Resources
Committed to Stakeholder Capitalism   Refer, Rate, Suggest & Earn
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