Creating a Carrot Culture: The Executive

Recognition Summit

Nancy Koury King

Chief Operating Officer

OPRS

10 Reasons Recognition Matters at OPRS

Top Predictors to “I am satisfied with my job.”

I often leave work feeling good. .64**At work my opinions count. .58**In my job I have the opportunity to do what I do best every day.

.58**

Management cares for employees. .58**My organization recognizes excellence. .57**My performance is evaluated in a manner that makes me feel positive about working here.

.57**

Top Predictors to “I am satisfied with my job.”

I have the opportunity to learn and grow at work. .56**

My supervisor cares for me as a person. .55**

My supervisor recognizes excellence. .55**

My supervisor does a good job of recognizing my contributions.

.54**

I am given recognition for my job performance. .54**

Employee Satisfaction and Health Department Surveys

26.6

18.3

0

5

10

15

20

25

30

Scope and Severity Points--ODH

High EmployeeSatisfaction

Low EmployeeSatisfaction

“This data screams to our nurse managers,” says King. “There is an overwhelming preponderance of evidence that the recognition initiative works. It results in overall better patient care, happier nurses, fewer headaches for our managers and on and on. It’s a win for everyone.”

Employee Recognition and Nursing Turnover

39

62

0

10

20

30

40

50

60

70

Nursing Turnover

Organization Recognizes Excellence High Organization Recognizes Excellence Low

Panel DiscussionMichele Cox, Quest Diagnostic

Joan Kelly, DHL

Amanda Merriman, McLane

Kal Mistry, VITAS Innovative Hospice Care

“We made the switch from cash awards to gifts and instituted training. We started with just one hour of recognition training for our managers, but they wanted more, so we’re working on that. Recognition has really begun to integrate into our culture—engagement is increasing by the minute.”

Michele Cox, Quest Diagnostics

 “Managers are the most important person in an employee’s life. We train our managers to know they make the difference. DHL looked at what’s driving business results and what’s important to the organization. Those are the things we reinforce all the way through our recognition initiatives—no matter where they are.”

Joan Kelly, DHL

“More often than not there’s no one to say good job when you’re sweating your butt off in Phoenix! That’s why focused, strategic recognition is so critical for maintaining the quality of our workforce. We offer recognition for everything we hope to motivate—performance, loyalty and even wellness. Our biggest focus is training—train, train, train!”

Amanda Merriman, McLane

“We can always improve our recognition efforts. The key is to not become complacent. Recognition helps us promote our brand internally, where it matters and where it translates into better services for our patients. People may have the skills to do a great job, but we have discovered that without praise they are not fully engaged.”

Kal Mistry, VITAS Innovative Hospice CareSHRM HR Business Leader of the Year

Bruce Pfau

Vice Chair Human Resources

KPMG

War for War for TalentTalent

Sarbanes-Oxley Sarbanes-Oxley 404404

KPMGKPMG’’s s Unique Unique IssuesIssues

Inadequate Inadequate CapacityCapacity

Less-than-Less-than-Positive Positive PressPress Legal/ Legal/

Regulatory Regulatory Complexities Complexities and Liabilityand Liability

Overall headcount is up 9% from last year and almost 12% over last two years

Annualized turnover is down over 5 percentage points and at historical lows

Experienced hires are 20% ahead of last year and well ahead of plan

Firmwide offer-to-acceptance ratio is at 85%

Firmwide, 39% of experienced hires come through employee referrals

Made nearly 300 new partners and over 60 Direct Entry Partners

Where We Are 2 Years LaterWhere We Are 2 Years Later

Where We Are 2 Years LaterWhere We Are 2 Years LaterP

erce

nt

Fav

ora

ble

Per

cen

t F

avo

rab

le

20032003 20042004 20052005 20062006

“Overall, I would say KPMG is a great place to work”

53%

75% 76%

62%

40%

60%

80%

Outreach to clientsOutreach to clients

HR at the tableHR at the table

Partner commitment Partner commitment and sacrificeand sacrifice

Multiple methods in Multiple methods in place to listen to our place to listen to our

peoplepeople

Laser-focused Laser-focused leadership teamleadership team

Followed through on Followed through on all commitments to all commitments to

employeesemployees

Leveraged positive Leveraged positive morale momentummorale momentum

Well planned and Well planned and executed executed

communications plancommunications plan

How Did We Get There – Summer 2005How Did We Get There – Summer 2005

“Those locations that use the Encore program more often have an average turnover rate two points lower than low-use locations. When you consider that each point of turnover means $10-15 million to the bottom line, it makes the $7 million we’re spending on recognition the least expensive thing we can do to keep employees.”

Bruce Pfau, KPMG

100 Best Places for Latinos to Work100 Best Places for Latinos to Work

Best Places to Work

Vision AwardVision Award

Honor RollHonor Roll

Top 10 Companies for People with Disabilities

Top 10 Companies for People with Disabilities

25 Noteworthy Companies25 Noteworthy Companies

David Ulrich

Best-selling Author

The HR Value Proposition

Context: What’s happening in business that is changing the game Technology

Connectivity: always connected

Accessibility: no boundaries

Ambiguity: uncertain future

Industry/economic trends

Transparency: open book management

Adaptability: the need to change

Intensity: market conditions

Convergency: overlap of industries

Demographics

Mobility: movement of talent globally

Diversity: globalization of work force

Spirituality: a need for trust and values

GLOBALIZATION

Talent Formula:Competence * Commitment * Contribution

contribution

competence commitment

talent

Company P/E ratio of company for the past 10 years

P/E ratio of industry (not counting the firm) for the past 10 years

Market Capital (in Billions)

GE 27.58 12.88 363.61

J&J 26.02 24.42 174.40

Teva 33.25 23.39 28.75

Pepsi 28.75 21.12 7.23

Boeing 23.82 15.83 70.17

Disney 27.15 19.57 70.53

P&G 27.0 21.2 199.29

Lexus (Toyota) 10.40 9.89 231.33

Nordstom 22.98 19.23 13.63

Why worry about leadership brand?

• Talent: individual performance• Organization: culture from the outside/in• Leadership brand: connecting customers to employees?

“We have to pay attention and make sure people are being recognized first and that they are being recognized for the right stuff.”

David Ulrich

Recognition implications:Have we linked our recognition to the right standards?

Chester Elton

Senior Vice President

The Carrot Culture Group

One of largest workplace surveys ever conducted:• Focus groups• Interviews

It isstatistically impossible

to be atrusted,

communicating, team-building,

goal-setting manager unless you use

praise and recognition.

The process to develop dedicated, productive and engaged new employees, who are more likely to stay

and stay committed.

Onboarding:

Champions Celebrate!

Best in Class Celebrate!

Carrot Culture™ AwardPresented by:

Dave PetersenPresident, O.C. Tanner

Carrot Culture™ Award 2007: DHL

Joan Kelly accepts The Carrot Culture Award for DHL

“I appreciate that The Recognition Summit was what it was billed to be—a high level forum for sharing ideas and getting the practice of recognition right in our organizations. Personally, I have so many events to choose from, that it is critically important that I make the most of the events I choose to attend…The Summit provided me with key takeaways.”

Jeff ShumanVice President Human Resources and Corporate RelationsRecipient 2007 Stevie® for Best Human Resources Executive, American Business Awards

Harris Corporation

Why Attend?

“The Summit is just phenomenal. We have decided to stay an extra day and do a debriefing on what we’ve learned. We had some ideas before we came, but now we know how we need to go about getting the recognition results we’re after.”

“The sessions have been top notch. I now know how to go back and sell recognition to our CEO and other members of our leadership team and to help them understand recognition’s value to the organization.”

Camille Chatman, OfficeMax 

Why Attend?

“The Summit has been exceptional. I believe that recognition is a key lever of business. I come to the Summit to actively network and participate. I believe in the concepts being presented here and plan to implement many new ideas.”Larry Callahan, Vice President HR, Norton Healthcare  

“We are at the beginning stages of forming a reward program and came to The Summit to better understand non-monetary rewards. My aha’s have come from the myriad of little things that companies are doing at little or no cost that have an impact on employees.” Rima Dagia, Marsh USA Inc.

Why Attend?