An analysis how the Balanced Score Card approach could enhance the personal contentedness considering the change in the society from a Work/Life balance to a multi-duty-life of individuals in consulting companies in Germany

Fachstudie von Christian Friedrichs

Introduction:

1.1, Introduction and background:

‘Social changes are making their mark. Current developments constitute a tremendous upheaval that, over the next ten years, will exert a lasting influence on people’s everyday lives, their desires, values, and their behavior as consumers’.

‘‘Work vs. Life’ turns into a ‘Multi-Duty-Life’: The uncommitted ‘self-time’ is diminishing’.

The GIM (Gesellschaft für Innovative Marktforschung) developed the Delphi 2017 study where they came to the conclusion mentioned above.

The results are significant information how the individuals will change their behavior and needs over the next years. But how does this affect the approaches of consulting companies that want strengthen the work/life balance of their employees?

‘To help our people balance work and life Accenture has flexible work arrangements in more than 30 countries around the world.’ ‘We also offer a wide variety of traditional and non-traditional work/life programs for employees and their families.’ Especially in times when well educated employees are a rare property the necessity is high to offer more then just good salaries. The innovative fantasy is needed to develop solutions that differentiate a company from their competitors (competitor in case of different employer). Particularly in cases when highest assignment is questioned from the employees, the employer must find uniquely solutions.

The author wants to analyze the existing tools that are used to support the work/life balance. After questioning a representative number of consultants from different consulting companies based in Germany he wants to elaborate areas that are important for the employees. The survey structure will be oriented on the four perspectives of the Personal Balanced Scorecard. The Personal Balanced Scorecard is based on an approach from Hubert K. Rampersad and integrates personal goals with career goals. Based on the results the author wants to develop tools that support the individual needs. Additionally the Personal Balanced Scorecard will be used to support employees to manage their needs and to support the employer to measure the current satisfaction level and the improvements.

1.2, Aims and objectives:

The aim of the dissertation is an analysis how existing tools support an enhancement of the contentedness of employees within consulting companies based in Germany. Based on the results of the survey and on expected cultural changes evaluated in the Delphi 2017 study of the GIM new tools should be developed to enhance the contentedness of employee. The described aim can be divided into four objectives.

First objective is the evaluation of current tools that are used by consulting companies to enhance the contentedness of their employee. The evaluated tools will be rated by the level of usage and effectiveness.

Second objective is the evaluation of the current satisfaction level of employees in consulting companies within the four perspectives of the Personal Balanced Scorecard. Additionally needs should be evaluated where consultants demand more support from the employer.

Third objective is the comparison of the survey results and future cultural changes with existing tools. For evaluated gaps new tools should be developed to ensure continuing increase of the consultants’ satisfaction level.

Fourth objective is the introduction of a measurement approach using the Personal Balanced Scorecard to control the success of used tools.

1.3, Relationship to previous work:

The planned Master Thesis combines different areas of research. On one side it uses the Delphi 2017 study that analysis the change of cultural and individual behavior in the next ten years. The study will be used as a guideline to develop new tools to support the enhancement of the employee’s contentedness considering the mentioned cultural changes.

Other aspects that will influence the Master Thesis are the different studies about employee motivation. A focus will be set on scientific studies that describe ways of employee motivation and newer approaches.

For the survey structure, tools development and the measurement approach literature about the Balance Scorecard Approach will be used, especially ‘The Balanced Scorecard. Translating Strategy into Action’ and ‘Personal Balanced Scorecard’ will be used to derivate the theoretical background.

1.4, Methodology:

The work starts with a literature desk research focused on motivation approaches and the Balanced Scorecard approach, especially the Personal Balanced Scorecard approach by Rampersad. The aim is to get an overview about available literature and to identify the relevant papers. It is expected to strengthen the available knowledge about motivation theories and tools. Additionally the relevant information from the Delphi 2017 study should be extracted from the study results.

Within the second part a combined field and desk research should evaluate current tools to enhance employee contentedness including their grad of usage and effectiveness. Therefore online available information from different consulting companies should be evaluated in a first step. Second step are discussion with HR representatives from different consulting companies to complete the list of used tools and include information about usage and effectiveness.

The third phase includes the questionnaire with a representative number of employees from selected consulting companies based in Germany. The goal of the questionnaire is the contentedness with existing tools and consultants demand for more support. The areas that should be evaluated are oriented on the four perspectives of the personal balanced scorecard. The results will be collected and compared with results from phase one and two. A second goal of the questionnaire is to validate how the results from the Delphi study reflect the needs of the employees.

Based on results from phase three and the Delphi 2017 study tools will be provided to support the increase of employee contentedness. Within selected telephone interviews with attendees of the survey the effectiveness of developed tools will be verified.

At least the personal balanced scorecard will be modified to support a measurement of used tools and control the satisfaction development of employee.

The master thesis follows the inductive research method. For citations the author-date (Harvard) referencing guide will be used.

Table of Contents:

	ABSTRACT	II
	ACKNOWLEDGEMENTS	III
	TABLE OF CONTENTS	IV
	LIST OF ABBREVIATIONS	VIII
	LIST OF ILLUSTRATIONS	IX
1.	INTRODUCTION	11
1.1	Introduction and background	11
1.2	Aims and objectives	12
1.3	Relationship to previous work	13
1.4	Methodology	14
2.	THEORETICAL BACKGROUND	16
2.1	‘Classic’ Balanced Scorecard Approach	16
2.1.1	Origin of the Balanced Scorecard	16
2.1.2	Elements of the Balanced Scorecard	19
2.1.2.1	Vision	19
2.1.2.2	Mission	19
2.1.2.3	Strategy	20
2.1.2.4	Perspectives of the Balanced Scorecard	20
2.1.2.5	Goals	23
2.1.2.6	Arrangements	28
2.1.2.7	Key figures	28
2.2	Motivation of employees	30
2.2.1	Definition	30
2.2.1.1	Need	31
2.2.1.2	Motive	31
2.2.1.3	Stimulation	32
2.2.1.4	Motivation	33
2.2.2	Theories about Motivation	35
2.2.2.1	Theory about needs by Maslow	35
2.2.2.2	Two factors theory by Herzberg	36
2.2.2.3	VIE-Theory by Vroom	38
2.2.2.4	Motivation approach by Porter and Lawler	39
2.2.2.5	Equity theory by Adams	41
2.2.3	Myths about motivation	42
2.2.4	Conclusion and consequences	44
2.3	Personal balanced scorecard approach	47
2.3.1	Description of the PBSC method	47
2.3.2	The four perspectives of PBSC	49
2.3.2.1	Financial perspective	50
2.3.2.2	Internal perspective	51
2.3.2.3	External perspective	51
2.3.2.4	Knowledge and learning perspective	52
2.3.3	Alignment of PBSC with OBSC	52
2.4	Trend research	54
2.4.1	General approaches	55
2.4.2	Delphi approach	57
3.	CURRENT SITUATION	60
3.1	German society	60
3.1.1	Financial aspects	60
3.1.1.1	Financial situation	60
3.1.1.2	Pension plan	62
3.1.2	Individual aspects	63
3.1.3	Society aspects	67
3.1.4	Education and qualification aspects	68
3.2	Situation in the consulting business	69
3.3	Used tools to support employees to improve their contentedness	71
3.3.1	Financial perspective	73
3.3.1.1	Mandatory direct support	73
3.3.1.2	Optional direct support	75
3.3.1.3	Optional indirect support	77
3.3.2	Individual perspective	77
3.3.2.1	Mandatory direct support	78
3.3.2.2	Optional direct support	78
3.3.2.3	Optional indirect support	81
3.3.3	Social perspective	81
3.3.3.1	Mandatory direct support	81
3.3.3.2	Optional direct support	82
3.3.3.3	Optional indirect support	85
3.3.4	Educational und learning perspective	85
3.3.4.1	Mandatory direct support	85
3.3.4.2	Optional direct support	86
3.3.4.3	Optional indirect support	87
4.	CHANGE OF THE SOCIETY (DELPHI 2017 STUDY)	88
4.1	Five general orientations of the future	88
4.1.1	Managing Dutility	88
4.1.2	Living Substance	89
4.1.3	Embedding Individuality	90
4.1.4	Creating Lifeholder-Value	91
4.1.5	Engaging in a Sane Society	91
4.2	Future changes of employees life	92
5.	QUESTIONNAIRE	95
5.1	Target group and method	95
5.2	Questions	96
5.2.1	Survey structure	96
5.2.2	Aims of the questions	97
5.2.2.1	Entrance part	97
5.2.2.2	Main Part	99
5.2.2.3	Statistic part	108
5.3	Analysis of the survey results	112
5.3.1	Survey statistics	112
5.3.2	Survey results	116
5.3.3	Cross relations	129
6.	EXTENSION OR DEVELOPMENT OF TOOLS	134
6.1	FIT/GAP Analysis of existing tools	135
6.1.1	Educational perspective	135
6.1.2	Internal perspective	137
6.1.3	Managing Dutility	141
6.1.4	Living Substance	141
6.1.5	Embedding Individuality	142
6.1.6	Creating Lifeholder Value	142
6.1.7	Engaging in a Sane Society	143
6.2	Development of new tools	143
7.	PBSC AS A MEASUREMENT TOOL	149
7.1	Method to define KPI’s	149
7.2	Case study	151
7.3	Agglomeration and connection of tools and KPI’s	153
8.	CONCLUSION	156
8.1	Summary of the results of the analysis and recommendations	156
8.2	Forecast and next steps	158
9.	BIBLIOGRAPHY	159
9.1	Books & Journals	159
9.2	Web pages	163
	CONFIRMATION	167

Text Sample:

Chapter 2.2.3, Myths about motivation:

‘All motivating is demotivating’, is the initial statement of Sprenger’s theory about motivation. It is critical to understand that he does not mean the state of motivation that an individual has. He means the activity of motivating people. Therefore it is important to differentiate between motivating as an activity and motivation as a state. Motivating is mostly used to manipulate someone to do what he wants and does not take into account what the manipulated person wants. This controlling aspect of motivating is evident for the ‘motivated’ person and can lead to resistance. Even in case that the affected person does not see the manipulation from the beginning he will see trough sooner or later.

Sprenger criticizes that existing theories see people as:

• effort deniers.

• bunch of hierarchal needs.

• stimulus-reaction machines.

In his opinion every employee brings his own motivation too work and influences his motivation depending on inner attitude and external influences. But what can be done to obtain this motivation?

Leading instead of trying to motivate is the key. Sprenger subdivides this approach into two areas:

• Demanding instead of misleading.

• Avoiding demotivation.

The first part of his advice based on deliberations from Dostoevsky and Nietzsche. People are not happy if they can get everything they want without spending any effort. ‘Nothing is more difficult to endure as several happy days in a row’. People are motivated and this motivation needs to be used to do something meaningful. They are happier about a success if they had to fight for it instead of getting it without any effort. The risk of the ‘Motivation’ as it is used in many companies is the spoiling of employees with the result of bored and demotivated employees. The better approach is to believe that employees are motivated and to demand this.

To explain this approach three dimensions of effort need to take into account:

• Commitment.

• Ability.

• Opportunity.

Commitment will be brought by the employee. Therefore ability and opportunity needs to be supported. In consequence this means to agree with the employee what are the expectations under consideration of his abilities and give him the opportunity to fulfill these expectations.

The second part tends to avoid demotivation. It is not necessary for the dissertation to explain all aspects of Sprenger; just some examples should be described to get an understanding of his intention.

If an employee does not meet the expectation then something has demotivated him or he did not have the ability or opportunity. In many cases Salesmen are paid by commissions. If the revenues shrinking because of unattractive products then management try to attract the payment terms to ‘motivate’ the Sales force. In the short run this can raise the revenue because the sales force will try to get the payment. On the long run this will not eliminate the real issue of uninspired salesmen that are not willing to invest in a bad product.

A key role of demotivation is the direct responsible manager. He has the most power to demotivate with his behavior. Responsibility of the manager is therefore to avoid this demotivation by showing real interest in the employee instead of building an image as leader. Additionally the manager should not concentrate on motivating the employees. He should rather focus on the elimination of work hindering aspects.

Finishing this aspect of demotivation the following list shows some ways of successful demotivation:

• The manager knows it always better.

• Lonely decisions by the management.

• Announcements and behavior are coincident.

• Permanent interfering of the manager.

• Mental under load.

• Ignoring of the employee.

2.2.4, Conclusion and consequences:

Summarizing the different theories and approaches we have an employee that brings his own motivation to work and wants a meaningful and demanding assignment. On the other hand he has needs that he tries to satisfy. As long his elementary needs are not assured he cannot use his motivation to fulfill the demands of the company. Therefore the goal of the management must be to support the employee in reaching satisfaction of his needs and give him space and opportunity to fulfill the requirements of the company.

‘On one hand we are too tolerant against companies that procure us a sense and safety. On the other hand we demand self determination. In fact we demand simultaneous self determination and safety with the same resoluteness’.

With a look on consulting companies the support of the motivation of ‘junior professionals is harder today than it used to be, and it is more important to the success of the professional service firm’. Beside the recommendations of Maister to spend ‘more attention to personal supervisory skills and a reexamination of the firm’s recruiting, work assignment, feedback, and outplacement system,’ even the ‘private’ needs of the employee should be taken into account. ‘Effectiveness [of the employee] lies in the balance – what I call the P/PC Balance. P stands for production of desired results, the golden eggs. PC stands for productivity capability, the ability or asset that produces the golden eggs’.

Only a balanced employee can ‘meet the intensity demand by today’s practice’.

An approach how to support employee finding this balance is described in the following chapter.