driven—fall 2014
DESCRIPTION
Volume 14/Issue 2TRANSCRIPT
drivenM A G A Z I N E
VOLUME 14 / ISSUE 2
NEWSITA Group winsevent honorsP4
INCENTIVESSales channel incentive delivers huge ROI P12
AWARDSInnovative approach to wellness programsP20
BOOK REVIEWThe Power of Habit P22
A CLOSER LOOKEVENT TRENDSSHAPING OUR
INDUSTRYP6
Years of Service ProgramsBest Practices to Stand Out
Does Your Incentive Trip Actually Incent?Motivate Your Team and
Maximize Your ROI EVENT PORTFOLIO
Events are Big Investments
Manage Them That Way
IN EVERY ISSUE
3FROM THE
DESK OF
Mary Z. Bussone
Senior Vice
President of Event
Management
4NEWS
ITA Group
a Pacesetter for
United Way
6A CLOSER LOOK
Event Trends
20AWARDS
New Partnership
Makes Wellness
More Rewarding
22BOOK REVIEW
“The Power of Habit”
FEATURES
10THE TANGLED WEB
OF INCENTIVES
Bring Back
Simplicity
12CASE STUDY
Untapped Revenue
in Your Sales
Channel
18YEARS OF
SERVICE
Nobody Likes
a Copycat
// CONTENTS
Incentive TravelAnother Way to Keep Top Talent
Event Portfolio Management // Cover Story
Have a Plan, Reduce Risk,
Drive Revenue
14
8
“VALUE-ADDED” MIGHT BE ONE OF THE MOST OVERUSED BUZZ TERMS IN BUSINESS TODAY. It’s used to grab the attention of all kinds of potential buyers—from procurement departments to fast-food customers. “Value- added” can mean anything from specialized expertise to more French fries in a super-sized meal. That doesn’t make the term obsolete, just confusing.
I view the phrase “value-added” similar to “creativity.” Both are relatively nebulous in general application and tough to tangibly define in the business environment. I think what it really means is enhancing a common product or service to give it a greater sense of value or purpose for a customer.
I buy TOMS. Yes, the shoes are casual, and I could get something like them anywhere. I buy TOMS because of their value proposition. When you buy one pair of TOMS, they donate another pair to a child in need. The donation speaks to my consumer need and sense of social responsibility, so there’s a value-add.
“Value-added” is in the eye of the beholder. It’s a moving target,
but not an impossible one to hit. Companies simply have to study their customer demographics. All the time! That research is critical in making products and services more complete, meaningful and measurable. Your product/offering must mirror a customer’s culture, support their goals, and provide something they might not be able to achieve themselves.
In the event management industry, we add value by taking a hard look at key drivers of a great attendee and client experience. Then we take them up a notch. Things like world-class customer service through the entire event life cycle, distinct destinations and events, and a strategy that clearly ties to corporate objectives.
The late Maya Angelou said, “At the end of the day, people won’t remember what you say or do, but they will always remember the way you made them feel.” I think that’s the true measure of “value-added.”
CJ McKoyVice President of People and Culture
ITA Group
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“Value-Added”Overused, but not overrated.
// FROM THE DESK OF MARY Z. BUSSONE
Driven MagazineVolume 14 / Issue 2
Kent SchlawinEditor
Maura McCarthyCreative Director
Michelle Johnson Senior Writer
Janae TeclawGraphic Designer
Laura AveyJaimee Chism
Deb IbsenStacey Slifka
Rhiannon TaylorMaggie Wenthe
Content Contributors
HeadquartersITA Group, Inc.
4600 Westown ParkwayWest Des Moines, IA 50266
Phone: 800.257.1985itagroup.com
Sales OfficesAtlanta, Chicago, Dallas, Des Moines,
Detroit, Indianapolis, Los Angeles, Minneapolis, Philadelphia, Phoenix,
San Francisco and the greater New York City area
Send your questions or comments to [email protected],
and we may address them in the next Driven magazine.
?
drivenM A G A Z I N E
Mary Z. Bussone
Senior Vice President of Event Management
ITA Group
Volume 14 / Issue 2 driven magazine 3
ITA GROUP HONORS ITS PARTNERS WITH ANNUAL TIMELESS PERFORMANCE AWARDSEach year, ITA Group recognizes the efforts of event management partners who mirror the company’s own culture. The award is based on nominations from ITA Group’s sales and event management team members, as well as through client feedback.
ITA Group has given Timeless Performance Awards for 10 consecutive years. The 2014 winners were: Mandalay Bay Hotel & Casino, Las Vegas, Nev.; Odyssey International, Dublin, Ireland; and Mick Meegan Photography, Dublin, Ireland.
“We are proud to work with some of the best in the business,” said Mary Bussone, Senior Vice President of Event Management. “This award is our way of honoring their commitment to making every ITA Group event meaningful and memorable.”
ITA GROUP MAKES CMI’S TOP 25 ITA Group has been named to the annual CMI 25 list, compiled by Penton Media’s MeetingsNet/corporate&incentives® Magazine. The CMI 25 offers a snapshot of the 25 most respected and experienced full-service meeting and incentive travel companies focused on the North American corporate market. The directory serves as a go-to resource for companies needing assistance with the sourcing, planning and operation of a
successful meeting or incentive travel program.
ITA Group has received this prestigious recognition each year since the list’s inception in 2007. In 2013, ITA Group operated 503 programs—a mix of 348 meetings and 155 incentives—and maintains a 99.6% client satisfaction rating.
GIVING BACK THROUGH UNITED WAYThis year, United Way of Central Iowa selected ITA Group as a “Pacesetter”
organization—one of 10 companies throughout Central Iowa handpicked to set the pace for the 2014 campaign season. In August, ITA Group’s two-week, company-wide campaign included a kick-off breakfast, team competitions, visits to United Way agencies, and a carnival-themed finale where senior leadership made a big splash in a dunk tank once the company met participation and monetary goals.
ITA Group’s 2014 campaign saw the
// NEWS & EVENTS// NEWS & EVENTS
» UPCOMING EVENTS
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NOV10
NOV3
JAN10
NOV14
ENGAGEMENT & EXPERIENCE EXPO Dallas, Texas http://engagement-expo.com/
EVENTTECH Las Vegas, Nev. http://eventtech.eventmarketer.com/
2015 RPI ANNUAL CONFERENCE Las Vegas, Nev. http://www.worldatwork.org/totalrewards2014/attendee/index-attendee.jsp
SITE GLOBAL CONFERENCE Rotterdam, Netherlands http://www.site-global.com/global-conference
See What’s Making News at ITA GroupNews and events impacting the industry.
4 driven magazine Volume 14 / Issue 2
// NEWS & EVENTS// NEWS & EVENTS
highest-ever employee participation rate—86% of the 380 Iowa employees—and a 23% increase in donation contributions from last year. Thanks to ITA Group employees’ generosity and commitment to the community, the company is now ranked among the top 20 charitable organizations in Central Iowa.
ITA GROUP ANNOUNCES OPERATIONS IN PHOENIXIn September, ITA Group expanded its operations with an office in Phoenix, Ariz. Business Development Manager Ariana Walicke will be working with companies in the Southwest to drive ROI and business results through employee and channel engagement.
“ITA Group is excited to tap into the diverse business landscape of the Southwest,” said Walicke. “We are behavior experts who not only understand how to motivate employees, channel partners and customers, but also how to deliver impactful results for an entire organization.” ■
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» 2014 ITA GROUP TIMELESS PERFORMANCE AWARDWINNER Odyssey International of Dublin, Ireland.
» 2014 ITA GROUP TIMELESS
PERFORMANCE AWARD
WINNER Mick Meegan
Photography of Dublin, Ireland.
» RONALD MCDONALD HOUSE FOUNDATION
ITA GROUP TEAM MEMBERS pitch in and clown around at the Ronald McDonald House in Des Moines, Iowa. In Fiscal Year 13/14, 332 ITA Group team members volunteered a total of 2,184.75 hours.
» 2014 ITA GROUP TIMELESS PERFORMANCE AWARD WINNER Mandalay Bay Hotel & Casino located in Las Vegas, Nev.
Volume 14 / Issue 2 driven magazine 5
// A CLOSER LOOK EVENT TRENDS
Integrating EventsEvents are no longer just a cost of doing business—they have become a vital part of corporate marketing and branding initiatives, and more companies than ever are measuring the success of their event programs. Take a look at these five event trends that are shaping our industry.
Event Portfolio Management—Changing FocusCompanies are turning their attention to how event portfolios can help drive sales, brand awareness and loyalty, and evaluating those portfolios to ensure they provide the necessary return.
Marketing and Event Alignment—Joining ForcesWith traditional forms of marketing not having the desired impact, companies are stretching their marketing budgets by coordinating their marketing and event efforts to reach new customers.
Authentic Storytelling—Creating TiesEvent producers are using storyboards to ensure their desired message is consistent across all channels and they craft an experience that creates emotional ties to their brand.
Attendee Journey—Planning Ahead Organizers are taking an all-inclusive approach to understanding attendee behaviors and preferences that allows them to manage and plan for touch points at their events.
Data-Driven Decisions—Influencing Strategy Events are now seen as a key way to understand customers, and event data is used to generate leads and revenue.
“ The health of events at a company will tell you about the health of the company.”
—Rob Pace, VP of Marketing and Events at HP
SOURCE: 2014 EVENT MARKETER’S SUMMIT
6 driven magazine Volume 14 / Issue 2
Sometimes numbers, not words, tell the most compelling story. So take a look at some numbers we think prove the power of a communications campaign by ITA Group.
Go online to see our great work:
www.itagroup.com/csgportfolio
Organizations that communicate effectively are 4.5 times more likely to report high employee engagement.* 4.5x
A recent survey says that’s how many consumers seek information from two or more mediums before taking action. Good thing, because ITA Group’s communications team creates international award-winning, cross-media campaigns.
75%
There’s only one way to increase the power and potential of your engagement program. That’s through communications.1
Organizations with strong communications have twice the financial returns achieved by organizations with poor communications.
2x
*Watson Wyatt Communication ROI Study
Does Your Incentive Trip Actually Incent?
Does Your Incentive Trip Actually Incent?
How do you keep them satisfied and engaged, knowing they could make the same amount of money (or more) elsewhere? This is where a sales incentive trip comes into play. It can be a valuable retention strategy—but only if executed properly.
Follow these four tips to ensure you’re presenting the most compelling offer, while motivating your team and maximizing ROI:
DANGLE THE CARROTNever underestimate the importance of
momentum. One of the biggest mistakes companies make is delaying the announcement of the incentive trip destination. Launch the incentive as early as you can, with as much detail and fanfare as possible! If you have valuable salespeople who are on the fence about whether to stay or leave, this is a prime opportunity to keep their knowledge and talent for another year.
GIVE ATTENDEES AN EXPERIENCE THEY COULDN’T GET ON THEIR OWN
If your salespeople are good at their jobs, they probably make a pretty decent living. It’s likely they can afford to treat themselves, and their families, to a vacation at a top resort. This means you have to raise the stakes and offer them an experience they’re unable to acquire on their own, no matter how much money they make. Ask yourself this: Which would motivate you to sell more in the coming year? Dinner on the beach in Hawaii or dinner on The Great Wall? And which experience do you think would create the most post-program buzz? So how do you afford it all? It’s simple: Leverage your
buying power. Enlist the help of an experienced event management company. You’ll be surprised at the strings that can be pulled (and the amazing experiences that result) when you have a program budget for 250 attendees and a well-connected event partner.
BE IN SYNC WITH YOUR BRANDA sales incentive trip can seriously influence
your brand equity. A company that touts creativity, innovation and sophistication as their hallmarks can quickly be undermined by a travel destination that turns out to be mundane or too widely accessible. Build your brand with an aspirational program that has a built-in “buzz factor.” Consider a wine-tasting tour in France or an African safari.
Sure, it will require more effort to plan and execute, but you will get your investment back. And then some. Trips that are in sync with your brand’s attributes not only pay out in the short term, but also well into the future as attendees socialize their experience throughout your organization.
FAMILIARITY BREEDS INDIFFERENCERemoving the element of surprise is the kiss
of death for an incentive trip. This is especially true if a significant percentage of your sales force qualifies for the program year after year. Offering the same location, activities or room gifts leaves little to the imagination. As soon as your program becomes predictable or stale, you’ve lost your edge. And once this happens, your incentive no longer incents. Even worse, your ROI takes a nose dive. ■
BOTTOM LINE: Use your imagination and reap the rewards. And as you draft your budget, keep in mind that a well-designed incentive trip can essentially pay for itself.
Your organization has managed to assemble a very talented group of salespeople. Your competitors would welcome many of them with open arms. But, fortunately, they work for you—at least for now.
Volume 14 / Issue 2 driven magazine 9
And the list goes on. Channel and employee incentives are growing more complex by the minute, it seems.
Companies are struggling to run them efficiently; worse yet, effectively. All that work and the needle won’t
budge. That can be frustrating.
THE TANGLED WEB OF INCENTIVES BIG DATA. BIGGER EXPECTATIONS. SHORTER ATTENTION SPANS.
So what gives? There are a number of contributing factors. Here are a few we believe are changing the game. Gone are the days of the yearly sales contest—sell X amount, get a cash bonus at the end of the year. There’s no more “doing what we’ve always done.” This type of structure just isn’t as effective, with people staying on the job an average of only four years (the churn rate is even higher for millennials). Just this shift in mindset alone can be tough for some organizations.
Even if companies have embraced the new age of incentives—agile and flexible—the operational tasks mount quickly. And when your people are already being asked to do more with less, that’s a big problem.
Another big problem? BIG data! You can almost know too much these days. “One of the biggest hurdles for
companies when it comes to data—aside from just the pure volume of it—is accurate, reliable analysis,” said Maggie Wenthe, Incentive Solution Manager at ITA Group. “Any company can collect it. It’s taking that data and finding truths in it—creating that compelling story—that gives companies fits.” Organizations lack the incentive strategy expertise to look at all that data through the right lens.
The ever-changing face of the workplace also makes things tricky. Generational differences—up to five generations at work at once—have companies pulling their hair out trying to hit a moving target for program strategy, communication and awards.
Knowing how generations will engage takes research.How do they talk to each other? What are they shopping for? How do they view discretional effort, and more importantly, what will inspire them to part with it to go that extra mile?
10 driven magazine Volume 14 / Issue 2
Bring Back Simplicity. And Fast. More companies would probably be operating incentives to drive business results if they weren’t so darn difficult to get up and running. Ideal results require an outside partner with a deep well of knowledge in incentive structure, technology, awards, communications and measurement.
“Companies have to look at incentives holistically— a series of moving parts that are 100% dependent on each other—or you might not see the results you’re after,” said Wenthe. “But if you choose to go it alone, there is a framework of best practices.”
Companies have to look at incentives HOLISTICALLY—
a series of moving parts that are 100% dependent on each other—or you might not see the results you’re after.
Maggie Wenthe, Incentive Solution Manager at ITA Group.
““
➊ BE SPECIFIC. Analyze and assess your objective. Historically, what’s worked? What specifically do you want to see? Increased sales for one particularly profitable product? Increased revenue dollars overall? The more focused your goal, the easier for a participant to understand and achieve.
➋ GET PERSONAL. Give each person a goal that’s attainable, yet challenging. Seems like an oxymoron, but it isn’t. Just make sure your participants feel like their goals are within reach with some hard work. Biggest bang for the buck: Give participants an individual incremental goal over their previous year’s production. Don’t pay out until your participants bring more business to your company than they did last year.
➌ TALK ABOUT THE GOAL. Over and over. And over again. Share the goal (individually and overall). What does success look like? Individually: What is my goal? How was it created? Overall: Define program success. If everyone reaches their goal, X happens for the company. Communicate shared goals across your organization—clarity is critical here. So is repetition, so communicate often. (Studies show you have to repeat yourself at least 10 times before people take action.)
➍ IGNITE THE (FRIENDLY)COMPETITIVE SPIRIT. Sales teams are generally very competitive. Tap into that by publishing results in some way. Percent-to-goal is a good method if you don’t want others seeing personal goals.
➎ CELEBRATE! Peer recognition is a powerful thing. Announce winners and overall goal achievement throughout your company. Recognize winners—research shows public recognition paired with individual, trophy-value awards is most effective. You’re rewarding participants for successfully changing behavior, but also inspiring them to reach for next year's ambitious (yet attainable) goal!
At the end of the day, incentives are about people. What drives them and how to ignite their passion. More and more companies are partnering with experts who know how to connect a bottom line to employee engagement. Because according to Wenthe, those companies understand that once employees are aligned with an organization’s mission and fully engaged, they are unstoppable. ■
Volume 14 / Issue 2 driven magazine 11
Three years of flat loan volume. A cash-for-contract program that simply wasn’t moving the needle. And too much reliance on top-performing dealers. This was the struggle for one Fortune 500 financial institution. F&I Managers at auto, RV and marine dealerships simply weren’t driving loan volume. Our client needed serious momentum in their dealer channel. NOW! This is the story of how ITA Group created a channel sales incentive that tripled the loan volume of enrolled vs. non-enrolled dealers. (And we’re still driving results…10 years later.)
Motivate dealers to increase loan
production, especially mid-
performers
Grow market share
Maintain momentum among top-performing
dealers
Increase loyalty among all
participating dealers
• Enrolled dealers out-performed non-enrolled dealers by 95%. That’s billions in increased loan volume.
• Program has generated a 254% ROI in 10 years of operation.
• 89% of enrolled dealers said the program motivates them to increase loan volume.
• Ongoing participant surveys say…F&I Managers remain loyal to our client because of this program.
Their Objectives
OUR RESULTS
254% ROI and Billions in Revenue.
Hello, Happy Client.
12 driven magazine Volume 14 / Issue 2
ASSESSMENT We identified performance success and gaps by reviewing
36 months of historical loan volume data by registered dealership. We found a staggering 52% of the audience was doing zero business with our client. And we identified clear seasonal sales cycles. This helped us build the right program strategy.
COMMUNICATIONS For maximum impact, we customized our communications campaign to fit each audience segment and utilized a cross-media approach.
TECHNOLOGY Our client loved having a flexible, segmented technology solution to accommodate varied messaging,
goals and metrics within their audience. Targeting the right audience at the right time made all the difference.
AWARDS We researched our client’s brand and demographics to offer relevant, meaningful award options. We added tuition reimbursement and charitable giving to the mix. We also offered a personal shopper option, enabling participants to redeem points for all kinds of exceptional purchases. Like parts to restore a ’67 Mustang and a special breed of dog for an anniversary gift.
MEASUREMENT We let data rule. We conduct a year-over-
year sales analysis at the end of each program year to identify gaps and tweak performance. We never stop learning.
Audience segmentation and targeted strategy mean better alignment, increased productivity and greater ROI.
VISIT ITAGROUP.COM TO VIEW THE FULL STORY.
3
5
14
6
STRATEGY Our assessment told us we needed
to segment our audience in order to drive maximum results. Dealerships were segmented into three earning tiers. This enabled us to reach mid-level performers who were so close to elite status.
C Players B Players A Players
Their Objectives
HOW WE FIXED IT — OUR APPROACH
Hello, Happy Client.
2
There’s a science to what we do. Not beakers and Bunsen burner science.
But people science. The science of motivation. We approach motivation by integrating assessment, program design,
communications, technology, awards and measurement.
INDEPENDENT DEALER CHANNEL INCENTIVE PROGRAM // CASE STUDY
Volume 14 / Issue 2 driven magazine 13
// COVER STORY
[ Outline your business and marketing strategies and objectives to connect your events to them.]
14 driven magazine Volume 14 / Issue 2
EVENTS ARE BIG INVESTMENTS
Companies are beginning to apply the same principles of portfolio management to event planning. And it’s paying off. Big time.
It makes sense… events are substantial investments. Why wouldn’t you align them with your overall business objectives and marketing strategy? Your next event is the perfect platform to reinforce where you’re going as a
company. And make sure your attendees understand where they fit in that—their purpose. If attendees can’t walk away with a clear connection to your business objectives after your next event, you’re doing something wrong.
Your event is a primo marketing opportunity. Captive audience, energy, excitement—the stage is set to drive home your message
and build powerful brand awareness and loyalty. Think about it. Would you be able to create that level of interest and passion with a radio or TV ad?
Doubtful. Not to mention, those mediums can be turned off and tuned out. It’s pretty difficult to tune out an experience.
Sure, you recognize portfolio management—the art of
managing your investment mix, analyzing risk against
performance, asset allocation, etc. All designed to maximize
returns. But what has that got to do with your next event?
EVERYTHING.
MANAGE THEM THAT WAY
Volume 14 / Issue 2 driven magazine 15
EVENTS ARE BECOMING SUCH A POWERFUL WAY TO BOOST BRAND AWARENESS AND DRIVE SALES. FOR THAT REASON, AS BUDGETS INCREASE, CMOS ARE SPENDING MORE DOLLARS ON EVENTS AND MORE TIME ON STRATEGIC PLANNING. THE DAYS OF LOOKING AT EVENTS AS INDIVIDUAL ONE-OFFS ARE OVER.
Assess and Evaluate As an investor, your portfolio should meet your future needs and give you peace of mind. In order for that to happen, you first have to understand what assets you have. So what is your current event landscape? Who is operating what? What is the purpose of the event?
Next, develop the lens you’ll look through to determine the suc-cess of current and future events. Decide if an event aligns with your business and marketing strategies.
Now, set some baselines and benchmarks based on your an-swers. What data do you need to gather and analyze? Define both financial and operational metrics.
• Unique registrations• Marketing and sales
qualified leads• Registrant conversion rate• Attendee conversion rate• Participant satisfaction• Training scores• Incremental sales
Truthfully, none of this really mat-ters if you don’t see results. The good news—you have more control than you think when it comes to ensuring the impact of your event. Evaluating the ongo-ing return on your events lets you make adjustments as needed to position yourself for success. You need to think of your event as a living, evolving thing. Therefore, evaluation is an
ongoing process, not just facts and figures you deliver at the end of an event. This is a shift in mindset. But a necessary one.
Manage and EvolveEssentially, what we’re suggesting is a Performance-Weighting Strategy to manage your event portfolio. What does that mean? It simply means you define a set list of criteria based on corporate business and marketing objectives to weigh every event against. Those criteria are used consistently and frequently to determine if changes need to be made to ensure event performance. Similar to a financial portfolio, your set criteria will help you determine when to “sell” (change your event landscape).
Sure, some events in your existing portfolio will simply require ongoing maintenance—no major changes. But there will be some tough decisions ahead when you implement a Performance-Weighting Strategy.
Set a Stop-LossA stop-loss is a common term in financial portfolio management. It’s the decision to sell a security or commodity rather than suffer further losses. You should establish a stop-loss for each of your events.
Evaluate your event against your established criteria. If that event is underperforming, identify ways to gain confidence in it, or reinvest in a better-performing event. This becomes particularly difficult for some companies with long-standing traditional events. But we would argue if those events no longer are in line with the direction of your company, and they aren’t
1. What are your company’s top business objectives for the short-term and long-term?
2. How are you defining success for those objectives?
3. What are your company’s top marketing objectives and strategies for the year?
4. Does your company have three to five key marketing messages you’re trying to consistently deliver?
5. What are your marketing segments, customer profiles and targeted audiences?
6. In your current event portfolio, are events reaching the right audiences?
7. Is the timing right for each event?
8. How have your events performed in the past?
9. Are events creating leads and opportunities you can leverage across your organization?
10. Do your events match industry standards—can they hold their own against competitors’ events?
10 Questions to Ask Yourself when assesing Your EVENT
16 driven magazine Volume 14 / Issue 2
» SUMMARY: Effective portfolio management aligns a company’s investments, people, and programs with its overall strategic objectives. It is a continual process that integrates business strategy with operational performance to synchronize resources, strategies, and schedules.
making you money, there’s no benefit there. Add elements to bring them up-to-par, or put your budget elsewhere.
Lock in GainsOnce your events start gaining momentum and driving profit, you should adjust accordingly. By gradually raising your stop-loss levels as your events rise in value, you can lock in gains. This is how
your events (and your company) continue to grow.
Stick to your planYou have to set your criteria to measure event success, and stick to it. Constantly evaluate whether an event is gaining momentum and value. If not, fix it or redirect your budget. As events become more successful, it’s time to up your measurement criteria. Expect
more and make sure you get it. By having a sound plan and following it with discipline, you can reduce your risk—all those would-haves, could-haves and should-haves.
Aligning your event portfolio to your business and marketing objectives will give you the clarity and governance needed to ensure every event is helping your company grow and succeed. ■
if CERTAIN events ARE no longer in line with the direction of your company, and they aren’t making
you money, there’s no benefit there.
ST
RA
TE
GIC
IMP
AC
T
EVENT AEVENT B
EVENT C
EVENT D
EVENT EEVENT F
POTENTIAL FOR IMPROVEMENT (BASED ON EVALUATION CRITERIA)
ACT
KEEP
LO
W
STABLIZE
AND EVOLVE
HIGH
ANALYZE
HIGH
[ [
Volume 14 / Issue 2 driven magazine 17
For example, we find ourselves offering a variation of that old parental gem to clients simply wanting to jump on board when it comes to Years of Service programs. Market prevalence is not a best practice. Not ITA Group’s anyway.
“Trends in Employee Recognition,” a recent study by WorldatWork and ITA Group, found that out of the 88% of organizations that reported having recognition programs, Years of Service programs were by far the most prevalent (84%). But make no mistake, we didn’t say all of those programs were seeing impact and ROI.
Does it make sense that every company, including yours, should be operating a Years of Service Program? Ideally, yes… just not the same program. Your program should be strategic to drive behavior in your organization, aligned
with your company objectives, and allow for departmental flexibility and corporate oversight. Your specific award strategy also has to mirror your culture.
Let’s dive deeper and put this in context. We often hear, “What’s an appropriate dollar amount per milestone for Years of Service programs?” Well, tradition tells us the answer would be about $25 annually on five-year milestones (5, 10, 15, 20, etc.). Tradition also tells us the five-year increments are directly related to tax implications for both employee and employer.
But without considering your employees and your company’s unique culture, $25 per year may be way off the mark. There is no one right answer.
Growing up, just about everyone probably received the “Well, just because so-and-so is doing it, doesn’t mean you have to” lecture after some misguided shenanigans. Deserved or not, the goal of that sage advice was to foster independent thinking and decision-making. Following the masses isn’t always the best course. Same is true in the recognition industry. So much for not sounding like our parents.
18 driven magazine Volume 14 / Issue 2
Think about these different industry examples of Years of Service awards: • A tech company less than 25 years
old competing for highly sought- after technical talent offers $100 cash per year to its relatively young and technical workforce.
• A stable, 70-year-old logistical company gives $10 cash per year to its employees (who tend to be more experienced with a blue-collar mindset).
• Somewhere in the middle is a 20-year-old retail organization that gives a combination of symbolic awards and cash to its generationally blended workforce.
The specific tactics of these three Years of Service programs vary greatly. That’s because their employee demographics, company cultures and Total Rewards Strategies are vastly different. But these are the very factors, among others, which must be considered if a Years of Service Program is truly to drive engagement and performance.
One Size Does Not Fit AllWe’ve established the need to look through your organization’s unique lens when it comes to building or revising your Years of Service program. Pay attention to things like your company’s culture, employee demographics, past and present perception of recognition, available resources, and how a Years of Service program can help support your company’s mission, vision, values and overall goals. Allow some flexibility in your program framework, so specific workgroups can adapt program tactics to be meaningful to them. Your teams will shine the spotlight in different ways at different times. Give them the freedom to do so, and you
will find managers more willing to own the program.
Don’t Wait Five Years to Recognize There are clear reasons why companies don’t provide any type of monetary award for Years of Service before an employee’s fifth year. But this is an opportunity missed. Those first few years of employment are critical when it comes to connecting with an organization’s goals and culture. Something else to consider… does that practice really make sense when the Bureau of Labor Statistics says the average employee tenure is less than five years? That means half your employees never make it to the five-year milestone! We find it’s important to tie employee behavior to brand as quickly as possible. Get new employees engaged in your organization and recognition initiatives now, not later. The quicker you get employees engaged, the more productive they are and the more likely they are to stick around. Think about incorporating 30-day, six-month, and one-year milestones into your recognition efforts.
Make It SocialDon’t hide your employees’ milestones. Get loud. Be proud. Make it social. You can do this formally, such as a company newsletter or intranet site. Or take a more casual approach with announcements in department meetings or manager emails. Do you use an internal communication tool like Chatter or Yammer? Leverage that collaborative communication technology as a way to spread the word about significant employee milestones.
Empower Managers with InformationMake sure managers know the significant milestones ahead
for their team, such as birthdays, anniversaries or other significant dates/accomplishments. Not a six-month spreadsheet, just a 30-day calendar should do. At the very least, managers should acknowledge significant professional milestones. But there are many reasons within life’s landscape to recognize and celebrate—wedding anniversaries, new homes or the birth of a child. If a team is small enough, don’t overlook these milestones.
Continue to Assess Don’t allow decades to pass before you formally assess the performance of your Years of Service program.Examine the program and the process to ensure it matches the culture you are trying to create in the organization. Have you made recent changes to your vision, mission or organizational values? Have you shifted your Human Capital Strategy or Total Reward Strategy in the past few years? Chances are, if you’ve not made any meaningful changes to your organization’s Years of Service program in the past five years, it’s not as aligned and effective as it could be.
Recognition initiatives are designed to have a positive, sustainable impact on your employees and organization. At least, they should be. That means ongoing analysis, flexibility, ownership, and sharing of information. Remember, just because everyone else is doing it… ■
Volume 14 / Issue 2 driven magazine 19
// AWARDS
WELLNESS INCENTIVESARE TAKING SHAPE
20 driven magazine Volume 14 / Issue 2
Companies Finding Healthier Bottom Lines with Wellness Incentives.It’s no secret performance can skyrocket
when your people are fully engaged,
healthy and happy. There’s plenty of
research to prove it. But encouraging that
kind of sustainable lifestyle change is
tough. It’s a process, and it’s personal.
For more than a decade, Live Healthy
America has created wellness campaigns
for organizations to lower healthcare costs,
increase productivity and create greater
employee loyalty. Lately, we’re seeing
an interesting trend in wellness program
design. Companies are using points-based
incentive structures to meet wellness
objectives—awarding points for those
healthy behaviors they want to promote,
reinforce and reward. Employees bank
points to redeem for personalized rewards.
These unique wellness incentives are
becoming an essential vehicle for sustaining
healthy behavioral change in companies
across the country. Teaming up with
ITA Group, Live Healthy America has
created Live Amplified—an innovative,
turn-key approach to employee wellness.
“Being able to earn health-related
wearables, fitness products and equipment,
and other incredible merchandise is igniting
engagement everywhere,” said Troy W.
Vincent, Live Healthy America Founder.
“It’s a trend we see continuing well into
the future.”
Wellness is a personal decision. So it
makes sense that people love rewarding
themselves with something tangible that is
equally personal and memorable to them.
Being flexible in the awards offered also lets
companies meet employees wherever they
are on their wellness journey.
Combining employee wellness with
incentives is a smart way to drive positive,
healthy outcomes and make wellness more
measurable. And that means a healthier
bottom line. ■
www.livehealthyamerica.org
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➎ Get down to your favorite tunes with JBL Reflect Ear Buds. ➏ Track your healthy life-style with a FitBit Flex. ➐ Work up a sweat on the Body Flex Magnetic Cardio Dual Trainer.
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Volume 14 / Issue 2 driven magazine 21
Tony Dungy, the first African-American NFL coach who reached the play-offs for 10 consecutive years and won a Super Bowl, used coaching techniques founded on the science of habit that eventually turned woeful teams into the winningest teams. Dungy’s strategy shifted his team’s behaviors until their performances were routine. He wanted his team to learn a few key moves and get them right every time. Dungy did it by getting his team to recognize their existing habits and accept new routines.
Today, his approach is widely used throughout the league and throughout sports.
“Habits can be changed if we understand how they work,” says Charles Duhigg, Pulitzer Prize-winning author of the NY Times best seller, The Power of Habit. Good news for those of us who want to lose weight,
quit smoking, be more productive or put a ding in the universe.
The problem is that our “brains can’t tell the difference between bad and good habits.” Despite this fact, Duhigg believes habits can be changed if we know how they work. He describes the Habit Loop, where triggers set off routine behaviors which are reinforced with rewards. Sounds a bit like a rat in a maze, but the point is we can take charge of how we function at home or in business by understanding the
reasons behind what we do.
Every habit, no matter how complex, is malleable. Group or team dynamics, organizational crisis or life-changing events present opportunities for transformation. People must first decide to make changes and then believe it’s possible to control
change. Duhigg doesn’t leave us guessing how that might work. Every chapter illustrates a different aspect of why that control is real.
“People want to be in control of their lives,” says Kris Engskov, a VP at Starbucks. Howard Schultz, founder of Starbucks, understands the implication of giving employees genuine decision-making authority, which underlies change. As a result, turnover has gone down and customer satisfaction is up. Since Schultz’s return, and his stronger
focus on employees, revenues have been boosted by more than $1.2 billion per year.
The reporting in this book is based on hundreds of interviews and thousands of studies. Duhigg makes a compelling case for us to get out of our comfort zone and start practicing habit change. ■
FOR MORE INNOVATIVE THOUGHTS ON HABIT:
THINKING, FAST AND SLOW BY DANIEL KAHNEMAN
NUDGEBY RICHARD H. THALER AND
CASS R. SUNSTEIN
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ABOUT THE REVIEWERJane Larson is the Resource Manager—Strategic Design & Integration at ITA Group.
// BOOK REVIEW
We are all creaturesof habit...or are we?
“ ”Habits can be changed if we understand how they work.
22 driven magazine Volume 14 / Issue 2
The Next Level of Employee Wellness.ITA Group and LiveHealthy America are partnering on a whole new approach to employee wellness. Your people live and work healthier. And are rewarded for it!
Here’s how it works: • We work with you to design a points-based incentive
around your organization’s wellness objectives. (Or we can integrate Live Amplified into an existing incentive.)
• When your employees adopt healthy behaviors, they earn points to go shopping in our intuitive online awards catalog.
• Along the way, we give you valuable, robust reporting on your organization’s progress toward overall wellness—participation, achievement, redemption, etc.
• And we offer creative online and print communications focused on participation, motivation and fueling redemption—keeping wellness top of mind.
Live Amplified is an exciting new way to approach wellness in your organization. It’s relevant, flexible, and measurable. And it fits comfortably inside your existing technology platform.
Let’s talk about how your organization can Live Amplified. Contact ITA Group at [email protected].
Connect with us.
4600 Westown Pkwy.West Des Moines, IA 50266
itagroup.com
5I07F4-156 Relax. You’ve Got This. And We’ve Got You.
A new Recognition Buyer’s Kit from ITA Group will help you stand up that recognition program—large or small—in your organization. Or make significant tweaks to an existing program. It’s the ultimate guide for HR professionals. This kit takes the complexity out of managing a recognition initiative. Each document can easily be leveraged for your organization. But let’s go one step further. ITA Group will hold an informational workshop on site in your organization if you need us.
Relax. You’ve Got This. And We’ve Got You.
Inside the Kit:Buying – what to expect, seeking an outside partnerImplementing – policies and proceduresManaging – engaging your leadership and employeesMeasuring – showing value, impact on productivity/profit
itagroup.com/RecognitionMadeSimple
Organizations are becoming more complex and reacting
with fewer resources. That might be why we’re seeing
project management become increasingly important in
determining the success of big initiatives. Poor project
management can derail an initiative before it even gets
off the ground, frustrating teammates and making you
look unprofessional. But so many professionals simply
aren’t good at it.
We’ll be the first to say, “it’s not your fault.” After all,
sizable change doesn’t happen all the time. Take, for
example, evaluating and selecting a new outside partner
for certain aspects of your recognition program(s).
Perhaps you’re making small tweaks to your program(s)
annually. But large, significant changes are probably
happening once every few years, if at all. So managing a
project that involves sizable changes to your recognition
programs isn’t all that familiar. But necessary.
Our colleagues in purchasing or procurement are subject-
matter experts in selecting new partners after you’ve
decided what you want from a partner. But there’s a lot
to consider—program assessment, strategy, design and
measurement. And don’t forget the most critical element
of any successful organizational change—selling the
change to the impacted stakeholders, including team
members and senior leadership.
The goal of this Buyer’s Kit is to provide a structure to the process, as well as some common
resources. You don’t have to be a certified project manager to be successful, but there is a
sequence of important steps to ensure your project meets everyone’s expectations.
Recognition Programs Made SimpleHow to buy, implement, manage and measure recognition.
OverviewProject Management
Framework
Request for Proposal (RFP)
Program Policy
Measurement Process
Whether you’re in a particular recognition buying stage or just managing change in your existing
program, you can leverage the following materials in your organization:
Project Management
Framework
Request For
Proposal (RFP)
ProgramPolicy
Measurement
Process
(These are generic samples. Your programs may differ depending on your objective and organizational culture,
among other factors.)
Make your boss think you’re a
GENIUS.
Download Our Recognition Buyer’s Kit!
Insightful Analytics
The goal of any program is to show results. End-to-end measurement does that by asking some simple questions:1. What should the program accomplish?2. What does success look like?3. How will success be measured?
4. What’s next?
For ITA Group, End-to-End Analytics happens in three steps: Define, Track and Act.
Within each step, there are five levels of measurement:ManagementHere, we’re looking at operations—the day-to-day.
Any roadblocks? Is ITA Group delivering on what we promised?
We agree. The trick is figuring out the difference.ITA Group is a proven leader in end-to-end measurement and analysis. Our ability to measure and
analyze your program from beginning to end—to tell a compelling story—is what makes ITA Group
a strategic partner.
EngagementIt’s critical your people form a connection to your program. Are participants actively engaged? Does the program have momentum?BehaviorChanging behavior is the end game. So is it happening?
Are new and better behaviors being adopted? ImpactThe ultimate goal is that your program impacts your
business in a positive way. Did you move the needle? ValueYou know the investment—both time and money—your company made in your program. Was it worth it? Did you see ROI?
A measurement process for program optimization
“Not everything that can be counted counts, and not everything that counts can be counted.” - Albert Einstein