INSTRUCTOR GUIDEc.ymcdn.com/sites/ · Web viewWord-of-Mouth Polling through Recognition Liaisons....

NAERRecognition Management and Maintenance

Table of Contents

PagePurpose............................................................................................ iiLearning Objectives..........................................................................ii

Introduction..........................................................................1

Setting the Stage..................................................................4

Management Framework......................................................11Job Analysis – Designing and Maintaining a Recognition Strategy..16Job Analysis – Communication Planning.........................................18Job Analysis – Training...................................................................26Job Analysis – Events and Celebrations..........................................33Exercise – Roles and Responsibilities.............................................34Exercise – Progress Check..............................................................35

Program Management Components......................................37Managing Through Cross-Functional Networks..............................42Labor Unions Inclusion...................................................................46Formal Guidelines and Processes...................................................47Exercise – Progress Check..............................................................54

Budgeting and Outsourcing..................................................55Tax Implications.............................................................................57Outsourcing Considerations...........................................................63Exercise – Progress Check..............................................................69

Maintenance – Change and Flexibility...................................70Programmatic Life Cycle................................................................73Sarbanes-Oxley (SOX) ...................................................................80Exercise – Progress Check..............................................................82

Overall Summary.................................................................83Bibliography...................................................................................84Appendix........................................................................................85Acknowledgements........................................................................90

5/8/23 2007 by the National Association for Employee Recognitiondocument.doc

PG-i


Purpose

The purpose of this course is to provide you with a framework and tools to use for recognition management and maintenance. These methodologies are supported by the National Association for Employee Recognition (NAER) and are exhibited through several Best Practices examples.

Learning Objectives

By the end of this module, you will be able to:

Define management components based on current needs

Identify necessary key roles and responsibilities

Define a framework for a Formal nomination and selection process

Link budgeting industry standards to current organizational practices

List three key aspects for a successful Recognition Budget

Seek current tax data

Identify current and desired tracking and reporting capabilities based on success factors

Determine program maintenance, change, or exit strategies


PG-ii


Introduction – Recognition Management and Maintenance

Welcome to Recognition Management and Maintenance (RMM), which is part of the Certified Recognition Professional (CRP) series.

About CRP

To earn a CRP designation, candidates will complete four facilitator-led courses and pass the required testing. The NAER Certified Recognition Professional program sets the standard for assessment of an individual’s abilities and provides a means for Recognition Professionals to acquire the needed skills and knowledge in order to excel.

The performance standards include criteria for effective recognition strategy and programs with real, business results. For example, certified recognition specialists are trained to determine the ROI for a recommended recognition strategy. They learn how to align recognition goals with enterprise goals and develop programs that will meet them, resulting in measurable, bottom-line results for the organization. They learn how to establish cost-effective processes for nominations, and award procurement and fulfillment.

4/1/07 2007 by the National Association for Employee Recognitiondocument.doc PG-1


Activity

Based on your personal assessment, write down at least two or three recognition efforts or programs that were successful and what specifically made each successful:

RECOGNITION SUCCESS

If you had an unlimited budget, how would you envision enhancing or changing recognition to make it more effective?



Course Agenda

We will take one morning and two afternoon breaks with a working/networking lunch.

Setting the Stage

Management Framework

Multi-Faceted Management

Budgeting and Outsourcing

Maintenance

Summary

Study Time

Exam

Training Materials You Will Receive

Participant Guide

Includes:

Models

Worksheets

Best Practice Examples

Article Excerpts

Progress Checks

Reference and Resource Suggestions

Course Evaluation



Setting the Stage

Section Learning Objectives

Following this section, you will be able to:

Name the Seven Best Practice Standards

Describe the importance of alignment

Identify how the elements supported by the acronym SIRAR can help engage management



Key Management Elements

It is pretty safe to say that a successful recognition effort needs to actively incorporate the Seven Best Practice Standards. And although it may just be a matter of who does what and when, when reviewing your recognition systems, you will want to make sure you have someone covering each of these bases.

As we can see from the chart below, measurement is a part of each aspect, and the Seven Standards can be incorporated into four basic planning phases:

PHASE STANDARDS

I. Assessment = prework Measurement

II. Strategy 1. Recognition Strategy

2. Management Responsibility

3. Measurement

III. Implementation Measurement

4. Communication Planning

5. Recognition Training

6. Events and Celebrations

IV. Review Measurement

7. Change and Flexibility



Key Management Elements (cont'd.)



Recognition Management and Maintenance

In addition to some of the Seven Standards (highlighted below), this will also focus on:

General recognition program management

Communications

Training

Budgeting

Outsourcing

Events and Celebrations

Change and Flexibility - Maintenance



Strategic Alignment – Review

In Strategic Planning and Measurement we talk about this process flow. And for those of you who have the book, The 1001 Rewards and Recognition Fieldbook by Bob Nelson, this is an adaptation of that model:



Management Responsibility – Review

At a very high level, the recognition-related management focus should look at:

Identifying qualifications, responsibilities, and authority required for recognition personnel responsible for managing the recognition program.

Determining and obtaining the resources required to manage and maintain the recognition program.

As we discussed in Structuring Recognition Programs for Success, if we were to summarize management responsibility into five key aspects, it would be:

SIRAR

Can you name the five words that correspond with the acronym?

S _____________________

I _____________________

R _____________________

A _____________________

R _____________________



Management Responsibility – Review (cont'd.)

Here are the five corresponding words and general explanations for each:

Strategy Senior management defines and documents its overall recognition strategy, including policies, procedures, and program objectives that reflect its commitment to recognition.

Involvement Senior management supports the recognition program, communicates their support to all employees, and is personally involved in the program.

Resources Senior management identifies and provides adequate resources to manage and maintain the recognition program.

Accountability Senior Management makes recognition part of management review and agendas. All managers know that senior management will hold them responsible for participating constructively.

Review Senior management periodically reviews the recognition program to determine effectiveness.



Management Framework



Compare your organizational structure with those in a survey group

Identify key resources you need to manage / administer recognition

Outline general roles and responsibilities

Define comparisons / differences to your organization’s structure with other organizations



Survey Demographics

For your prework, you were asked to answer a series of questions. Let’s see how those of you from this class answered the assessment as compared to our survey sampling of 46 organizations:

QUESTION CLASS RANGE

SURVEYED ORGANIZATIONS(46)

1. How many employees are there in your organization?

1-99100-499500-9991,000-4,9995,000-9,99910,000-19,99920,000+

4% 4% 2%22%11%11%46%

2. Do you consider your recognition initiative to be:

a. Centralized

b. Decentralized

c. Other – please explain

Centralized

Decentralized

Other

48%

24%

28%

3. How many resources are solely dedicated to Recognition Management? (Per smallest business unit)

a. ____ full-time

b. ____ part-time

full-time

part-time

37%

i. 25%

ii. 50%

iii. 75%

25%

50%

75%

24%

4%

2%

33%

c. If it is not TRULY full-time OR part-time, please explain.

If it is not TRULY full-time OR part-time, please explain.



Survey Demographics (cont'd.)

QUESTION CLASS RANGESURVEYED

ORGANIZATIONS(46)

4. What approximate employee per administrator ratio do you have?

HUGE range anywhere from:

1:601:10,000

5. To what functional area do your recognition resources report?

HRSalesAdministrationFinanceMarketingSpecific BUOther

50%2%9%07%11%22%

6. Are all your recognition initiatives administered out of the same functional area?

a. Yes

b. If no, please specify

Yes

No

41%

59%



Titles and Responsibilities

The titles and actual responsibilities of those who administer recognition within an organization might be as varied as the organization itself – and are less critical than the actual responsibilities.

Activity

Work with the others at your table to write down some possible titles and a list of possible responsibilities:

Titles:

Responsibilities?



Basic Job Analysis

In 2004, NAER conducted a general job analysis on the following general functions:

Designing and Maintaining a Recognition Strategy

Program Communications

Training


As we just found through the discussion, the number of potential titles and general responsibilities are varied. The following pages will outline general job duties for the functions listed above.

Activity

In the corresponding job analysis charts, take an opportunity to indicate whether your organization has assigned someone to each specific task.



Job Analysis – Designing and Maintaining a Recognition Strategy

Indicate who performs this function or whether it is a gap.

RESPONSIBILITIES YES / WHO NO

Work with the organization to design a comprehensive recognition strategy.

Define the recognition program goals and objectives and a means for tracking them.

Develop and administer recognition budgets.

Establish and define the structure of the recognition program (e.g., the employee recognition committee), including membership, empowerment, and administrative support.

Design incentive programs if appropriate. (That is, using rewards for meeting goals within a specified time period; e.g., sales incentive programs.)

Negotiate programs with labor organizations, if appropriate.

Document recognition program procedures for all aspects of the program, including nomination, selection criteria, notification, award selection, procedure for tax or income purposes, event-planning guidelines, tracking, etc.

Design program elements to implement the strategy.

Develop and manage a project plan for executing the recognition strategy.

Maintain a centralized process for procuring recognition resources and awards.

Select, negotiate with, and manage recognition rewards service providers.

Design a process for continuous improvement of the recognition program.




Work with appropriate resources to develop and deploy employee and customer surveys.

Analyze, report, and use results to improve the recognition program.

Facilitate a periodic audit of the recognition program.

Activity

Review the responsibilities listed on this and the previous page and summarize any activity gaps you may have uncovered.



Job Analysis – Communication Planning


Establish a strategic communication plan that communicates all aspects of the recognition strategy, including program objectives, recognition processes, events, or celebrations.

Work with others as needed to develop and disseminate messages using a variety of communication tools to reach audiences.

Periodically measure the effectiveness of the communication plan; modify plan and/or implementation as needed.

Solicit / welcome employee feedback and modify the communication plan and/or implementation as needed.

Identify changing organizational needs and modify the communication plan as needed.

Where could you spend more time to ensure a more effective communication plan?



Communication Planning Logistics

In Structuring Recognition Programs for Success, we outlined some communications basics for any communications plan. These are:

1. Message – What do you want to communicate?

2. Audience or stakeholders – Who is the recipient of the communications?

3. Method – What kind of communications vehicles will be used?

4. Resources and Responsibilities – How will the communications be executed?

Here’s another model / template from a 2006 executive summary report, How to Communicate Business Strategy to Employees, Melcrum Publishing provides the following communications plan template from RBC Financial:

COMMUNICATIONS PLANOVER-RIDING STRATEGY:KEY COMMUNICATIONS OBJECTIVES:

Target AudienceDesired

Outcome / Behavior

Issue Strategy Tactics Timing Measures Respons.



Recognition Communications – Measurement

In the same report, Melcrum Publishing provides the following matrix, which plots Employee Understanding and Support.

This communications measurement approach is used by Dow Corning. Employees are quizzed through multiple-choice questions on how well the corporate strategy is understood and their level of commitment.

The assessment results are then plotted into the four groups below from which they can track future movement from one quadrant to the next.

Employee Understanding / Support

INTE

LLEC

TUA

L

HIGH

Bystanders Champions

Weak Links Loose Cannons

LOW HIGHEMOTIONAL COMMITMENT

In addition to communications, what additional tools could be used to increase knowledge and commitment?

Into which quadrant do you think middle management MIGHT fall?



Recognition Communications – Measurement (cont'd.)

A 2006 Watson Wyatt study of 267 U.S. companies shows that companies with the most effective employee communication programs provided a 26 percent Total Return to Shareholders (TRS) from 1998 to 2002 compared to a -15 percent TRS experienced by firms that communicate least effectively. The study also found that a significant improvement in communication effectiveness is associated with a nearly 30 percent increase in market value.

The respondents are primarily large companies and represent all major industry sectors in the United States.

The study identified nine communication practices that are directly linked to an increase in shareholder value. The three practices associated with the largest increase in shareholder value are:

1. Driving managers' commitment to effective communication

2. Having a formal communication process in place (including a documented communication strategy and implementation plan), and

3. Creating a clear line of sight between business objectives and employees' jobs

The right kind of communication at the right time not only drives behavior change, but also offers tremendous potential for creating shareholder value and generating significant ROI.



Recognition Communications – Measurement (cont'd.)

Another key finding from the study is that it matters how a company measures communication.

Companies that use hard measures such as:

Productivity

Behavior change, and

Achievement of business goals

to measure their communication effectiveness show a positive impact on ROI. Companies that use only soft measures such as awareness, understanding, or satisfaction to measure their communication effectiveness actually show a negative impact on ROI.

http://www.watsonwyatt.com


http://www.watsonwyatt.com/


Communications Survey Responses

Here are some of the highlights from 20 respondents to the request: Please describe your recognition communications plans.

In the right-hand column, make a check for possible implementation ideas.

Note: The STAR icon throughout denotes a Best Practice Award Recipient response.

COMMUNICATIONS PLAN HIGHLIGHTS NOTES Monthly communications via employee portals and on program’s website. Bi-monthly articles in employee magazine.

Recognition is built into our organization's strategic goals and objectives, and that link is tied through our communications plan. New employees learn of our recognition programs from the start through new employee orientation. New supervisors and managers are given Recognition Tool Kits, which provide supplies, ideas, and suggestions to implement recognition within their own departments. Information is provided through department-based Recognition Liaisons, who carry institutional efforts forward, while relaying back department best practices to the team.

Our recognition communications plan is robust and focuses on successful evaluations from customers, monthly activity and earnings, sweepstakes winners, multiple news articles on the recognition site, banner ads for new opportunities, local activities at division meetings, earnings statements, etc. This permeates our work environment.

The Westfield Excellence committee encourages program success through frequent, open employee-manager communication: Quarterly recognition program reports are sent to executives, managers, and supervisors who are encouraged to share the information with employees and promote program usage within their areas of responsibility. Committee members speak at department staff meetings. Westfield Excellence Administrator hosts WestfieldEd lunch and learn sessions focused on program utilizations. New-hire orientation and manager orientation includes a section on the Westfield Excellence program and the importance of rewards and recognition. Company newsletter (DecPage) articles periodically update employees on program participation and highlights. Program award activity is posted on the Intranet.



Communications Survey Responses (cont'd.)

COMMUNICATIONS PLAN HIGHLIGHTS NOTES We have an extensive Recognition website that is updated monthly. We hold quarterly recognition contact meetings to discuss challenges and brainstorm solutions and best practices; plus we send e-mail communications government-wide to advise employees of upcoming events and programs available.

Our goal is to utilize every method and means to keep communication moving throughout the organization. One new method that we will begin putting into place is the concept of corporate storytelling. Other typical strategies use:

Elevator boards (using posters and signage)

Weekly hospital newsletter using articles to inform and remind

Individual Invitations to special events mailed and/or hand-delivered to employees

Web page on intranet

For the future, we are continuing to work toward an interactive web page for informal feedback

Focus Groups

Leadership Council announcements: Once a month, verbal announcements, as well as forum for education of leadership to HEART initiatives

E-mail announcements, previews of upcoming events, as well as ‘just-in-time’ notification of events. Information boxes in hospital hallways allow access to information by employees that do not have e-mail

Total Rewards Fair: Once a year hospital-wide initiative to inform and educate employees on sponsored activities.



Communications Survey Responses (cont'd.)

COMMUNICATIONS PLAN HIGHLIGHTS NOTES Day-to-Day and Informal Recognition: Our communication strategy is to keep recognition in front of employees and managers as a constant reminder of the importance of acknowledging employee contributions and accomplishments. Various recognition team members, along with HR Communications team, develop formal communication plans that regularly promote the program and content that sparks interest. A quarterly communication campaign is scheduled each year to keep recognition in front of employees and managers across the organization. Program enhancements are launched in conjunction with campaigns. Various avenues of communication are used in each campaign. The primary method is communication through several online publications and intranet websites.

Because we are constantly changing many aspects of our program (adding e-cards, enhancing our site, providing training and tips for managers) to keep recognition top of mind – we communicate in various media within our organization. Some of these include: brochure detailing formal program, online presentations, e-mail newsletters, reference and homepage articles on best practices.

Activity

Review all of the Communications Planning items on Pages 18 – 25 and capture 3-5 action steps you plan to use within your organization:



Job Analysis – Training

Here are the responses to the survey question: What kind of recognition training do you provide?



Include training as an element in the overall recognition strategy.

Work with a project manager and/or develop and manage a project plan.

Serve as a recognition subject matter expert and work with internal and/or external training functions (which may include an instructional designer, web-based training designer, facilitator, evaluator, administrator, etc.) to use a systematic instructional design process to analyze needs, design, develop, implement, and evaluate a training program. The process may include:

Identify training needs based on recognition strategy, roles / expectations for various populations, task / content analysis, and gaps between existing and required skills and knowledge.

Develop objectives.

Identify learner characteristics, resources, and constraints.

Select delivery method(s).

Select additional resources if needed (e.g., graphic artist, media specialists, web specialists).

Design and develop training and/or identify vendor training that meets needs.

Develop performance support tools that may be needed to implement recognition program elements.

Conduct formative evaluation and revise course as needed.

Communicate course description and availability.

Enroll participants and keep administrative records.

Deliver training.



Evaluate training effectiveness.



Training – Review

In Course I, Structuring Recognition Programs for Success, we talked briefly about the ADDIE model as a training design methodology.

Again, ADDIE is an acronym which stands for the following:

A – Assessment

D – Design

D – Development

I – Implementation

E – Evaluation

When you consider providing recognition-related training, make sure to conduct a thorough needs assessment. This will allow you to match the overall content to the needs of the audience. It is strongly recommended to go beyond a single source request such as one person saying, “This is REALLY what they need.” Also steer clear of broad requests such as, “Managers need recognition training.”

Get specific input from a variety of methods and stakeholders whenever possible.



Kirkpatrick’s Four Levels of Training Evaluation

For those of you who have taken Strategic Planning and Measurement, here is a review of some evaluation methods first introduced by Donald Kirkpatrick, Ph. D., who designed Four Levels of Measurement to evaluate training. In fact, the true name for these four levels is Kirkpatrick’s Four Levels of Training Evaluation.

LEVEL TITLE EXPLANATION1 Reaction How do the stakeholders feel about the recognition experience?2 Learning Is there an increase in knowledge, skills, and attitudes?3 Behavior Are the tools being used?4 Results What’s the impact on the business?

How many of these levels do you use to evaluate any recognition training you offer?



Training – Seven Learning Styles

As adult learners, we learn in a variety of ways. From the listing below, write each learning style to the right of the ICON:

1. Social

2. Visual

3. Solitary

4. Logical

5. Aural

6. Verbal

7. Physical

Which is the preferred method to use when developing recognition training?



Training – Survey Responses

Here are the survey responses to the question: What kind of recognition training do you provide?


GENERAL TRAINING HIGHLIGHTS NOTES

New employees are provided a welcome letter and directed to web site. Online managers’ tool kit.

Our Recognition website features tips, articles, strategies, and guidance for the design and implementation of recognition programs in departments. The Recognition Committee offers a number of tools to help supervisors and administrators, including a lending library of reference materials, monthly e-newsletters, tool kits, and brown-bag lunches to share information about best practices, different recognition methods, and success stories.

In addition to the ongoing WestfieldEd sessions, we train and communicate to new employees. In order to assure a proper understanding of the program and its desired outcomes, Westfield sponsored a comprehensive training on the new performance recognition program for each one if its more than 2,000 employees on the mechanics. Also talked about the importance of recognition and how it can reinforce the values and goals of our company.

Westfield’s recognition training included an overview of the importance of recognition, discussion on the strategy behind its creation, a review of the goals Westfield’s leadership set for the program, and a detailed lesson in how to use the web-based program. It was really important that managers and employees understand the program, its connection to Westfield’s performance management initiative, and other goals.

For employees, it was about education, getting them excited about the program, and how it connects to core competencies. As a current method of follow-up, an interactive CD version of the training was recently sent to service office managers in 17 states. Local service offices enjoyed face-to-face training.



Managerial Training – Survey Responses

Here are the responses to the question: “What kind of recognition-specific training do you provide to your managers / supervisors?


MANAGERIAL TRAINING HIGHLIGHTS NOTES

Recognition in a Box, which includes "Make their Day" binder with tips and tactics and tabs for local initiatives, "Priceless Motivation" book, Champions thank you cards, Noisemakers for meetings, "How do you like to be recognized?" form, "Think like a Champion" self-inking stamp, "Champion in the Making" certificates - "I LIKE WHAT YOU DID" post-it notes

Westfield –In the manager training, we spend time talking about what behavior should be rewarded, what awards were appropriate, and where they could go for training.

Leadership institute sessions on Using Recognition to Achieve Strategic Outcomes:

Manager Orientation: Introduction to R & R Book Clubs: Using different recognition books to review in book

club Web readings E-mail: Spotlights on ways to reward and recognize

Our online Manager’s Guide provides managers with detailed information, guidelines, tips, and ideas for employee recognition.

We currently provide online and face-to-face manager training. We are in the process of creating a new Recognition Workshop that will be interactive and will appeal to our busy managers.

Hold 2 classes for all new managers, teaching them what tools are available for giving recognition, tips, techniques, importance of giving recognition, etc.

Best Practices, recognition tools and tactics, reporting and recognition calendar.

Importance of rewards and recognition statistics related to turnover rates, employee survey feedback, and employee satisfaction scores.

Recognition as a tool for retention, ideas, and suggestions for management on how to recognize employees.



Managerial Training – Survey Responses (cont'd.)

MANAGERIAL TRAINING HIGHLIGHTS NOTES

Tools available, comfort level, overcoming obstacles, asking employees what kind of recognition is most important to them.

Value of recognition, employee recruitment and retention results, methods and types of R&R Performance Enhancers, Performance Improvement using R & R. Creating endurance and sustainability through recognition and structuring recognition programs.

Current formal program – the four elements of recognition (thanks, praise, opportunity, and respect); Informal ideas and tools; Research and value of recognition to their organization and the company. Fun, interactive exercises.

Activity

Again, review the material – this time on Recognition Training – between Pages 26-32 and write down 3-5 actions you will plan to incorporate into your organization’s training.



Job Analysis – Events and Celebrations



Work with the organization to develop a process and assign responsibility for informal and formal celebrations and/or award ceremonies to recognize employees as part of the overall recognition strategy.

Recommend a budget for celebrations and events; administer budget if required.

Work with executive management to allocate funding and staff for the planning and execution of celebrations and events.

Develop and disseminate guidelines for informal celebrations.

Maintain a centralized process for procuring recognition resources and awards.

Schedule, plan, and facilitate events and celebrations as required.

Facilitate the sharing of ideas for celebrations.

Facilitate the documentation of celebrations / events and recommend ways to use the documentation to enhance the overall effectiveness of the recognition program.

Evaluate, document, and report to executive management on all components of the event such as effectiveness, process, and employee satisfaction.



Exercise

Roles and Responsibilities

From the Job Analysis pages only (Pages 16-18; 26; 33), capture the five KEY responsibilities that could use greater focus within your organization:

1. _________________________________________

2. _________________________________________

3. _________________________________________

4. _________________________________________

5. _________________________________________



Management Framework – Strategy and Scope Summary

Although the who is responsible for the list of responsibilities, the how should be determined by the recognition strategy, scope, and size of the organization.

Whether you are looking for internal resources or trying to hire / promote someone to work on recognition, keep the job analysis components in mind.



Exercise

Progress Check

TRUE or FALSE

Circle T for True and F for False.

1. T F The 2004 NAER job analysis identified a dozen common job titles for recognition practitioners.

2. T F When developing a communications plan, it is helpful to know that the same message can be communicated to all stakeholders through the same method.

3. T F When looking at the Employee Understanding / Support quadrants, those with HIGH emotional commitment and low intellectual commitment are called loose cannons.

MULTIPLE CHOICE

4. According to the 2006 Watson Wyatt employee communication study, which of the following would NOT be considered a hard measure:

a. Clear line of sightb. Productivityc. Behavior changed. Achievement of business goals

5. Select the correct sequential order of the Four Levels of Training Evaluation:

a. Behavior, Reaction, Results, Learningb. Learning, Results, Reaction, Behaviorc. Learning, Reaction, Behavior, Resultsd. Reaction, Learning, Behavior, Results



Program Management Components



Map key program management components to the three recognition dimensions

Define potential additional resources to ensure success

Name the five primary steps for a Formal recognition process



Decentralized and Multi-Site Challenges and Opportunities

Part of the challenge within any organization is, in many cases, not all the recognition initiatives are administered from the same place.

Some of the possible process owners may include:

Sales – sales incentives

Human Resources – service awards

Departments – informal awards

Corporate or business unit – formal awards

Individual managers – day-to-day

As a recognition professional, you will want to be aware of these decentralized pockets and be prepared to provide recognition assistance.



Decentralized and Multi-Site Challenges and Opportunities (cont'd.)

A total systems approach to recognition has many advantages. Even if you do not have direct responsibility for the myriad of recognition initiatives within your organization, it would be beneficial to solicit and capture general program data from these other areas for a variety of reasons:

Create synergy

Collect expense and results data

Align to overall strategy

Negotiate reduced costs

Measurement

General validation of effort

Continuity of reward levels

etc.

Even with a centralized recognition system, it is possible to offer the flexibility of decentralized tools – even while maintaining consistency.

Keep in mind your stakeholders’ needs when determining whether your system will be centralized or decentralized.



Day-to-Day Management –Survey Responses

Let’s see what responses were received in the benchmarking survey on day-to-day cross-functional teams and administration.

Here are the survey responses to the question: Please describe the purpose and structure of any cross-functional teams you have for day-to-day recognition – who administers this and how?


DAY-TO-DAY CROSS-FUNCTIONAL TEAMS NOTES

Recognition Liaisons (representatives from each department) distribute the day-to-day awards from patients, families, and staff.

Day-to-day recognition is administered locally by District VPs and Branch Managers using tools and rewards we provide at the national level.

Business unit-specific, however, we encourage all employees to express appreciation routinely; not a process that needs to be administered.

Ministry Recognition Contacts manage ministry-specific initiatives by providing training and tools (web-based, work books, gift inventories, thank you cards, etc.).

Recognition Programs Department reports to the Rewards and benefits function within corporate HR. This team consists of one Rewards manager and one Sr. Rewards analyst.



Informal Administration Management – Survey Responses

Here are the survey responses to the request: Please describe the purpose and structure of any cross-functional teams you have for Informal recognition - who administers this and how.


INFORMAL CROSS-FUNCTIONAL TEAMS NOTES

Program is an online solution whereby recognition links back to corporate culture.

SEVERAL – At the department level – managers or supervisors.

Employee Recognition Committee (cross-section of many departments) helps in coordinating informal recognition efforts, along with Recognition Liaisons (representatives from each department).

Awards from managers in various forms and also a Thanks award program, which enables an employee to spontaneously recognize another employee with an expression of thanks and a merchandise award.

HR distributes materials and managers implement.



Managing Through Cross-Functional Networks

In most organizations, you’ll need to cast the net beyond the primary people/person responsible for recognition to encompass others.

This might include champions or ambassadors at other locations, business units, etc., and through cross-functional groups or networks.

If the organization is large enough, each of these designated champions may have teams within their locations to facilitate recognition. Here are some guidelines to help form and develop successful teams.

Team Mission and Operation

As was mentioned in the previous day-to-day and informal management pages, many organizations rely on site-specific outreach teams.

Here’s a recommended framework for the team operation:

1. Develop a team mission – This sets out the mandate on how the team intends to serve the organization.

a. Improve awareness

b. Support, encourage, assist leaders

c. Measure and report progress

2. Develop a project plan – Identify annual goals, action plans, and responsibilities.

3. Designate a team lead, senior management mentor / champion, team members, and membership guidelines.

4. Provide recognition for the team!



Managing Through Cross-Functional Networks (cont'd.)

The composition of the cross-functional teams or networks will differ, depending on your organizational culture and structure. Here are some suggestions:

1. Designate an overall upper-management mentor who can provide strategic focus, provide resources and budget, help break down barriers, and serve as the leader liaison to the other top managers.

2. Name the teams and/or team members. Some suggested titles include:

Ambassador

Champion

Coordinator

Administrator

Celebration Team Member

Liaison

3. Establish guidelines, roles and responsibilities, and term limits. Also decide on how the team members will be selected and replaced.

4. Include team members from a variety of functions and levels.

5. Ensure the team itself has fun and is recognized!



Team Recruiting Considerations

Since most of us are interested in personal growth, try to position and deliver on the offer that taking on recognition team activities will provide career development opportunities.

Examples include:

Communications / Marketing

Training

Leadership Coaching

Program Design

Budgeting

etc.


Standard

Levelof

Responsibility

Number of Tasks

Task1

Task2

Enriched

Task1

Task2

Enlarged

Task1

Task2

Task4

Task3

Task4

PG-44


Natural Team Stages

Remember, that with any team, no matter how energized and focused, there are natural team stages that need to be monitored and managed. These include:


Adjourning and Transforming• Disbanding and celebrating accomplishments• Building on synergies

Performing• Competence and cohesion• Goal: Complete task

Norming• Fine-tuning stage• Goal: Shift focus to task completion

Storming• Honeymoon is over• Goal: Recognize need for cohesion and reestablish team goal

Forming• Start-up period• Goal: Become familiar with team's mission, process, and

members

PG-45


Labor Unions Inclusion

If your organization is represented by labor unions, here are some considerations as you design and manage an organization-wide recognition system:

1. Consider labor organizations just as you would any other workforce stakeholder group.

2. Work internally with each assigned leader who normally interacts with each labor group. Begin this interaction early in the process.

3. Begin by assessing what each labor force currently does for its own recognition. This would help avoid duplication of efforts and help complement what is already in existence.

4. Any change in rewards and recognition is considered a change in employee benefits, and as such, becomes part of negotiations.

a. Review any current collective bargaining agreement for rewards and recognition language.

b. If rewards and recognition is not part of any current bargaining agreement, do not include it.

2. Get direct input from the labor leadership team. These internal leaders will provide information on the appropriate protocol of whom to invite to events, proper titles, etc.

3. Set up a rewards and recognition committee made up of labor partners.

4. The level of support and participation will vary, based on current workplace needs and environment.

General recommendation: Involve all stakeholders early in the process to shape programs.

Possible sources:

http://www.law.cornell.edu/wex/index.php/Collective_bargaining

http://www.ilr.cornell.edu/library/research/subjectGuides/collectiveBargaining.html

http://www.dol.gov/oasam/library/resources/labor_resources.htm


http://www.dol.gov/oasam/library/resources/labor_resources.htm

http://www.ilr.cornell.edu/library/research/subjectGuides/collectiveBargaining.html

http://www.law.cornell.edu/wex/index.php/Collective_bargaining


Formal Guidelines and Processes

As part of the prework, you were asked to provide information components of a Formal Recognition Program:

These include the following key steps:

Process Prototype

The following pages summarize the results from survey recipients:


NOMINATION

COMMITTEE REVIEW

NOMINATION FILED

2

1

No

SUPPORTING EVALUATION

SSELECTION

RECOGNITION EVENTS & AWARDS

3 4 5

Yes Yes

PG-47


Guidelines and Criteria – Survey Responses

Here are the survey responses to the request: Please briefly describe your organization’s Formal recognition nomination and selection process guidelines and criteria.


FORMAL GUIDELINES AND CRITERIA NOTES

Established by program office, based on program principles of fairness, inclusive participation, and in support of corporate culture.

Vision, values, business objectives

Sales and gross profit

Any individual may be nominated by staff or patients for the Shining Star award, which is given out quarterly. Nominations may be submitted hard copy or via the website.

Managers and employees are selected to attend the Champions Club event based on sales results and/or peer nomination for service.

Above and beyond in helping patient, coworker or community

We use our core vision/value statements to build award submissions for one time acknowledgement, consistent high performing awards, Team Excellence and Management Excellence.

Above and beyond

Top 15% of specified positions

Nominations focus on four key "STAR" criteria: Service, Teamwork, Achievement, Respect

Employee will have given of his/her time, talents, money, supports standards, team player

We have 6 award categories: Service Excellence; Innovation; Organizational Excellence; Partnerships; Leadership; Cross-Government Integration

The criteria is build around our core values in terms of serving our clients, customers and team members including innovation, project management, being a proud contributor and a team player



Selection and Evaluation –Survey Responses

Here are the survey responses to the request: Please briefly describe your organization’s Formal recognition selection and evaluation process.


FORMAL SELECTION AND EVALUATION NOTES

1st hurdle – Candidate pool is reviewed based on displayed desired behaviors. 2nd hurdle – Candidate pool is then ranked on achievement to make final selection.

A committee evaluates each nominee's performance from interviews with the supervisor / department and the nomination form submitted to determine if they are setting new standards of excellence and performance.

Against criteria, small team pulled together through HR.

Recognition team members and one senior leader.

Panel of specialists review nominations.

Done by management and may require significant high-level review.

Non-government adjudicators are selected to screen and identify 3 finalists for each category.

Special project teams oversee selection through team discussion and scoring of criteria.

The immediate manager endorses and/or declines an award. It is then sent to a committee for approval and awarded, if appropriate.

Manager submission, with manager once removed concurrence and executive approval.

Any regular staff member employed for a minimum of one year is eligible to be nominated. Nominees from any job family are eligible. Up to 6 Shining Stars are selected per quarter.

The Recognition committee reviews and votes, based on the written narrative of what makes staff stand out.



Selection and Evaluation (cont'd.)

FORMAL SELECTION AND EVALUATION NOTES

Candidates are reviewed by senior management team, however, there is minimal subjectivity. Recipients are selected based on sales results or service MVP status.

Various levels of management; some awards require Chairman’s' final selection

Non-government Judges Panel selects winners from the short list.

By committees – nominations can be upgraded, declined, or down-graded or approved as submitted.

Note: There are some examples in the website tool kit for your review.

http://www.recognition.org/associations/5847/files/Formal%20Program%20Matrix-Sacramento%20Superior%20Court.pdf

http://www.recognition.org/associations/5847/files/Nomination%20Form-Sacramento%20Superior%20Court.pdf

http://www.recognition.org/associations/5847/files/Rating%20System%20for%20Formal%20Program-Sacramento%20Superior%20Court.pdf









Selection Matrix Example

Here is an actual example of a Chairman’s Award selection matrix.Im

pact

Sig

nific

ant

Impa

ctM

oder

ate

Impa

ct

In-Scope Out-of-Scope / Special Project

Job Responsibility

What selection components enter into the selection according to this model?



Events and Celebrations – Survey Responses

Here are the survey responses to the request: Please briefly describe your organization’s Formal recognition celebration criteria.


EVENTS AND CELEBRATIONS HIGHLIGHTS NOTES SVP hosts a divisional celebration for top achievers.

Shining Stars are awarded at the Quarterly Reception and receive a $100 check, special lapel pin, trophy, framed certificate signed by the CEO, and a $10 gift certificate from the Friends Gift Shop.

A sit-down dinner for the service awards over 20, and an appetizer / award presentation for the ACE recipients.

500+ employees attend a formal dinner and awards ceremony, attended by the Premier.

Varies. Some business units have trips to exotic locations and others have events or banquets.

Town Hall meetings, staff meetings, and get-togethers allow for face-to-face celebrations. We also provide video conference and audio conference recognition and personal senior manager phone calls.

One award includes a weekend celebration.

Names are read to the entire university audience.

Our goal for celebrations is to grow emotional connection to the organization, and the event itself increased a sense of belonging.



Documentation

Although it is cumbersome and often boring, it is vital to document processes!

Potential things to capture include:

Nomination procedures

Selection process, timing, and responsibilities

Notification

Award selection

Tax implications (to be discussed soon!)

Event planning guidelines

Tracking

Feedback

Some benefits of documenting procedures include:

Reference and internal benchmarking capabilities – especially with a central online repository

Up-to-date information. Do not need to rely on printed material, the data is real-time.



Exercise

Progress Check

TRUE or FALSE


1. T F Day-to-day recognition management is usually centralized through HR.

2. T F Cross-functional networks are an effective recognition management strategy – particularly within larger, multi-site organizations.

3. T F One benefit for recruiting recognition team members would be to position the experience as a career development opportunity.

MULTIPLE CHOICE

4. Which of the following descriptors most closely fits the team storming phase:

a. Fine-tuningb. Competence and cohesionc. Building on synergiesd. Honeymoon is over

5. Which might be considered an optional step in a formal selection process:

a. Initial committee reviewb. Nomination formc. Selectiond. Event



Budgeting and Outsourcing



Identify key components for budgeting

Seek tax-related information on the IRS website

Follow a recommended supplier selection process


PG-55


General Budgeting Concepts

Although it may seem rudimentary, the general purpose of a budget may bear repeating. A budget is designed to:

Ensure sufficient funds are earmarked to support necessary plans

Monitor and control expenses

Make confident financial decisions

Some general budgeting characteristics include:

Input should be realistic and achievable

Consider both fixed and variable costs

Consider including a contingency

Build in regular reviews for possible adjustments


PG-56


Tax Implications

Put simply, please be aware of IRS tax implications for items and/or cash given to employees.

Work closely with your accounting department on how to handle these taxes.

Please consult the IRS website at:

www.irs.gov

http://www.irs.gov/pub/irs-pdf/p535.pdf

http://www.irs.gov/govt/fslg/article/0,,id=155764,00.html

For non-U.S. organizations, check your comparable tax guidelines.


PG-57

http://www.irs.gov/govt/fslg/article/0,,id=155764,00.html

http://www.irs.gov/pub/irs-pdf/p535.pdf

http://www.irs.gov/


Budgeting – It's What You Count That Counts

Given the following generalizations, it is hard to know what exactly is in the mix. Many considerations need to be taken into account such as:

Does the total include a roll-up of all incentives, service awards, and formal, day-to-day, and informal recognition costs?

Are direct and indirect labor costs included?

How about training and communications time / costs?


PG-58


Budgeting – It’s What You Count That Counts (cont'd.)

Often, people ask, “How much will I need?” Obviously, the answer is dependent in what you want and need to do to support your objectives. You may budget differently for a total enterprise-wide recognition system in comparison with isolated programs.

Here are some guidelines:

Budget .005 (one-half of 1%) to.03% (3%) of payroll.

Identify an amount per Full-Time Equivalent (FTE) – something between $100 and $150/FTE. (Consider the difference between budgeting for FTEs vs. headcount.)

Benchmark with other organizations your size and/or within your industry and calculate their costs per FTE.

At this point, it is unknown exactly what is included in the payroll calculations, so again, consider these guidelines and ranges to consider.

Averages

“Sixty-nine percent of respondents indicated that their organization has a specific budget forrecognition programs. Among this group, the average sets aside roughly 3.8 percent of their payroll budget for recognition programs.

And in the 2003 survey results it said:

“On average, responding organizations indicate their recognition program budget is 2.0% of payroll, with a median of 1.0%.”


PG-59


Budgeting Checklist – Review

Put a checkmark next to the costs that you currently include in your budgeting:

Communications pieces

Technology upgrades

Training development and delivery

Supplier administrative fees

Inventory costs

Administrative fees

Postage

Celebrations

Airfare

Petty cash

Staff costs

Meeting time

Video production

Photo processing

Award purchases

Gift certificates

Printing costs

Decorations

Food

Office supplies

Other


PG-60


Budgeting Process – Survey Responses

Here are the survey responses to the request: Briefly describe your organization’s recognition budgeting process.


BUDGETING PROCESS HIGHLIGHTS NOTES

Based on historical data, the different recognition elements are identified and funded centrally.

Percent of payroll.

Each manager is allocated a certain dollar amount per associate.

Annually, the budget is established and is set similarly to the previous year. Major events (Recognition Receptions, annual Ice Cream Social, Talent Showcase) are accounted for, as well as routine administrative costs (pins, certificates, brochures, etc.).

There are multiple budgets for various recognition needs. Some are budgeted based on results, some are budgeted as a percent of payroll.

All formal recognition is budgeted through the Employee Programs area. It is approved by the immediate manager, Executive of HR, and then to CHRO for inclusion in overall HR budget.

A generous budget is allocated to each element of the program and managed and maintained by the R&R team.

Budgets are based on previous year's budget, however, Administration also supports the recognition programs that they routinely make budget amendments to provide support.

Each business unit is funded discretionary dollars at the beginning of each year, and some of that needs to be set aside for awards. BUs typically use a percentage of payroll to determine amount to set aside.


PG-61


Budgeting Process (cont'd.)

BUDGETING PROCESS HIGHLIGHTS NOTES

We are given a budget each year for corporate programs, based on expenditures from previous year. We do not recover costs from clients.

Comply with organizational business planning cycle of 1) review current budget line items, 2) project annual project for next fiscal year, 3) submit to VP for approval, 4) ongoing monthly operational statement review.

All items including recognition and meeting are budgeted. Managers submit budget requirements, senior managers approve or adjust.


PG-62


Outsourcing Considerations

Based on the extensive job analysis outlined earlier, you may find it advantageous to outsource some of the Recognition Management and product sourcing.

Here are some considerations that may help you determine whether it will be beneficial to outsource:

Cost advantage with comparable or better service capabilities

Necessary outside skills and/or technology (information security)

Low business risk

Low administrative costs

Generally, the cost and cost savings can be calculated by looking at comparisons of internal vs. external labor, fees, technology, compliance, space, etc.

In addition to actual hard-cost savings, the organizational impact also needs to be considered. Some points here include:

Will the culture support outsourcing?

What will the change impact be?

Does this fit with the strategic plan / direction?

Information security


PG-63


Selecting Service Providers

Once a decision has been made about outsourcing, it will be necessary to determine the necessary selection criteria and success factors.

Here are some things to consider:

Compatibility

Cost

Capabilities

Reporting and communications

Customer service, reliability, quality

References


In some organizations, the procurement or purchasing function will lead the selection and negotiation process with your input. Regardless of the process, most of the client / service provider relationship success comes from clear selection criteria.


PG-64


RFIs and RFPs

Two common up-stream methods to selecting outsourcing partners are Requests for Information (RFI) and Requests for Proposal (RFP). Here is a brief overview:

RFI

May be suitable primarily for smaller projects

Requests general information

Used to qualify or disqualify candidates

Basic components usually include:

Project overview Company background Project requirements General fees How to respond

RFP

An invitation to submit a proposal or bid

Clearly identifies future working arrangements, deliverables, timelines, etc.

Components include all those listed for RFI, plus the following:

Organizational demographics General reporting requirements Decision criteria References


PG-65


Selection Process Steps

A reasonable rule of thumb would be to assess between three to five prospective service providers. Once you’ve received input from the entire pool, it may be possible to automatically narrow the selection to two or three potential providers.

Once the field is narrowed, consider the following next steps:

1. Meet with the candidates

2. Consider a weighted point evaluation (see below)

3. Conduct reference checks

4. Take an on-site visit

5. Discuss all factors

6. Make a decision

7. Prepare a letter of intent/contract – including performance standards

If at any time doubt exists, you may want to suspend the process, and consider the second-place provider.

Potential Weighted Point Evaluation

Service Anniversary Awards

Criteria Points Provider A Provider B Provider C

Selection Variety 35Value 25Service 20References 15Other 5TOTAL 100


PG-66


Managing the Project / Service Provider

Whether you negotiate a one-time delivery or multi-year contract, regular monitoring and communications is beneficial to both parties. Some things to consider are:

Data collection

Performance metrics

Audits

Communications

How to handle changes

Transition


Budget reconciliation (accounts receivables) management

Fill rates

Customer service


PG-67

Ensure qualityis maintained

Verify, report on compliance with

system, process,

product, service

Survey and validate

satisfaction levels


Outsourcing – Survey Responses

Here are the survey responses to the question: What recognition-related functions or purchases do you outsource to service providers or others?


OUTSOURCING HIGHLIGHTS NOTES

Site and reward fulfillment is outsourced.

Holiday Gift Card Program.

We use destination management companies to help fulfill our travel-related recognition rewards.

A web-based program allows us to run the programs through the systems they provide.

Service Anniversaries – bank debit cards.

We do everything internal, except the award books for gift selection, which is done by a Michigan company to promote our own state due to the tough economic times in Michigan.

Event planning, premiums, etc.

Purchase recognition materials from vendors, etc.

Day-to-day operational items are sourced out and for the Thanks! Program, a vendor administers that globally for the corporation.

Gifting, celebration communication invitations / flyers.

Gift certificates, travel.

Usually creative – developing themes and creating templates. Some messaging and hard copy (calendars, CDs).

Products, gift cards, programs.

None (several responses).


PG-68


Exercise

Progress Check

TRUE or FALSE


1. T F If you wanted three suppliers to bid on a project, you would ask for a RFI.

2. T F One budgeting method could include benchmarking.

3. T F It is always more cost-effective to outsource day-to-day recognition.

MULTIPLE CHOICE

4. Which is NOT a usual outsourcing consideration:

a. Cost advantageb. SWOTc. Low business riskd. Necessary outside skills

5. Which is generally part of the outsourcing selection process:

a. Data collectionb. Prepare a letter of intentc. Auditingd. Balloons


PG-69


Maintenance – Change and Flexibility



Define reporting tools and frequency

Build change and flexibility into your programs


PG-70


Change and Flexibility – Review

As was mentioned in Structuring Recognition Programs for Success, recognition programs need to be flexible so they are able to adapt to changing conditions. Here are some points to consider:

The organization:

Has demonstrated flexibility in its recognition program / process

Has described how changes to the recognition program / process are determined

Adjusts the recognition program to reflect organizational goals

Adjusts recognition to meet the diverse needs of individuals and teams in the organization


PG-71


Program Change and Flexibility – Review (cont'd.)

Some things that might drive or cause change include:

Organizational change (merger, acquisition, etc.)

Managerial change

Change in strategic objectives

Lack of program participation

Some tools that will help assess any potential need for change include:

Surveys

Measurements

Recognition dashboards

Anecdotal feedback


PG-72


Programmatic Life Cycle

Just as with any consumer product, there’s a natural life cycle to recognition initiatives. In the book The 1001 Rewards and Recognition Fieldbook, Drs. Bob Nelson and Dean Spitzer outline the cycle with the following terms:


Preparation AnnouncementPromotion

Excitement

Steady State

Decline

Termination

Revitalization

PG-73


Rely on Input to Constantly Assess During Steady State

During the design phase, it is important to build in touch points to regularly assess the effectiveness of any recognition initiative – whether it is a large formal system, informal items or gatherings, or day-to-day activities.

According to Drs. Nelson and Spitzer, some of the common missteps worth noting include:

TYPE ISSUE

Day-to-Day Missed opportunities Untimely Insincere Public recognition for private people Mixed messages Unrewarding selection

Informal Treating everyone the same Leaving people out No input

Formal Insufficient planning Insufficient strategic linkage Rewards that are not rewarding One size does not fit all Loss of relevance Subjectivity Entitlement Take-aways Inappropriate Zero-sum (win/lose) Untimely


PG-74


General Assessment Considerations

Whatever assessment tools you select, keep the following in mind:

Review and assess progress against success factors

Revisit regularly for strategic alignment

Analyze, report, and use results to enhance

Regularly report to management

Use communications as a maintenance tool


PG-75


Possible Metrics

Satisfaction levels

Participation levels (usage)

Results – Return on Investment

Productivity Quality Actual cost savings


PG-76


Survey Considerations

Whenever possible, if you have the luxury of having a complete recognition focus in a survey, consider some of the following:

Demographical segmentation – consider breaking out by employment level, business unit, etc. This way you can find out if there is any difference in what managers value vs. non-managers

Include both numeric / quantifiable questions and open-ended / qualitative questions

Communicate the results AND action plans

Build metrics around the results

Focus Groups

Focus groups can provide additional specific feedback and include more opinions and specifics.

They require special facilitation skills, and either need to be recorded or with careful note-taking to capture all of the input.

From the website Tool Kit:

http://www.recognition.org/associations/5847/files/Recognition%20Questionnaire%20for%20Focus%20Groups.pdf


PG-77




Maintenance – Tools – Survey Responses

Here are the survey responses to the question: What tools do you regularly use to assess the success / improvement areas for your recognition initiatives?


MAINTENANCE PROCESS HIGHLIGHTS NOTES

Monthly reporting, quarterly detailed reviews, annual employee / manager surveys.

Reports on nominations and reward redemption.

Surveys (several).

Word-of-Mouth Polling through Recognition Liaisons.

Employee surveys, manager participation rates, business unit measures (team performance, productivity, leadership culture scans), transactional customer feedback on how we are doing.

Our programs have online feedback surveys and we use our employee survey and other survey feedback. Our survey asks specific questions related to: 1) Recognition for good performance and 2) How Westfield Excellence is viewed in the departments as a meaningful way to recognize.

Bottom-line results. Our company has had 16 consecutive quarters with double-digit earnings. We do semi-annual surveys to get feedback from our employees and we include Sr. Regional employees in annual program planning. In our recent points for merchandise launch, we were able to measure the engagement of employees, and within 4 weeks, we had over 12,000 employees registered! Finally the Sr. Manager, R&R meets monthly with the VP, SVP, and EVP to review all R&R initiatives and results. We are in the process of establishing a base state so we can do some regular ROI reporting.

Surveys, focus group feedback, blogs, administration forums, Q & A communications, newsletters, and online reporting structure.

Measurement of number of awards, number of managers trained. Ratings on evaluations of value of training to managers.. Employee survey results in terms of our recognition efforts (we improved 8% over the past two years).


PG-78


Maintenance – Frequency – Survey Responses (cont'd.)

Here are the survey responses to the question: How often do you assess the effectiveness of your recognition initiatives?


MAINTENANCE PROCESS HIGHLIGHTS NOTES

50% of those responding conduct annual reviews.

We constantly monitor the usage and do quarterly reports for usage. Our employee survey is completed every other year.

Every 2 years.

We are now doing quarterly surveys (2).

Post-event and comprehensive annually.


PG-79


Sarbanes-Oxley (SOX) Considerations

The following incentive and recognition considerations are outlined in an Executive White Paper published by The Performance Improvement Council – a unit of the Incentive Marketing Association.

In general, companies subject to Sarbanes-Oxley (SOX) reporting are more likely to be more demanding in their reporting of previously undisclosed incentive payments, be they cash or non-cash awards

Executives who are signing off on corporate financials will be more interested in detailed documentation from incentive program suppliers

Make sure your incentive program has a measurable business purpose

Base program design on research-supported practices

Document the business goals, measures, strategies, and actions

Track all expenditures

Use incentive and recognition program experts with demonstrated experience in creating performance-based programs

Additional SOX-related resources:

www.incentivecentral.org

www.performanceforum.org

www.incentivemarketing.org

www.recognition.org

www.site-foundation.org


PG-80

http://www.site-foundation.org/

http://www.recognition.org/

http://www.incentivemarketing.org/

http://www.performanceforum.org/

http://www.incentivecentral.org/


Time to Maintain, Change, Exit?

Going back to the Programmatic Life Cycle on Page 73, use the input and results you have collected to determine whether the program should be:

Maintained (steady state)

Changed (revitalized)

Retired (decline)


Preparation AnnouncementPromotion

Excitement

Steady State

Decline

Termination

Revitalization

PG-81


Exercise

Progress Check

TRUE or FALSE


1. T F When designing a recognition system, it is beneficial to make adjustments to meet

the diverse needs of individuals and teams.

2. T F One example of a change tool is a merger.

3. T F Focus groups provide an opportunity to collect more opinions and specifics.

MULTIPLE CHOICE

4. In a programmatic life cycle, which would usually be the last in this sequence:

a. Announcementb. Promotionc. Excitementd. Steady state

5. Which of the following is generally NOT considered an informal misstep:

a. Entitlementb. Treating everyone the samec. Leaving people outd. No input


PG-82


Overall Summary

Recognition Management and Maintenance

For purposes of this session, we highlighted the following:

General recognition program management

Communications

Training

Budgeting

Outsourcing


Change and Flexibility – Maintenance


PG-83


Bibliography

Sources directly used for development of this material:

Nelson, Bob and Spitzer, Dean. The 1001 Rewards and Recognition Fieldbook.New York, New York: Workman Publishing, 2003.

Articles

How to Communicate Business Strategy to Employees, 2006 Executive Summary, www.melcrum.com.

Web Sites

www.recognition.org

www.watsonwyatt.com

www.irs.gov

www.incentivemarketing.org

Other helpful resources include:

www.astd.org

www.iabc.org


PG-84

http://www.iabc.org/

http://www.astd.org/

http://www.incentivemarketing.org/

http://www.irs.gov/

http://www.watsonwyatt.com/

http://www.recognition.org/

http://www.melcrum.com/


Appendix

Job Description Samples (3)

Job Title Delivery Manager

Job Description Implements sold recognition programs by working with internal customers, Recognition Design Managers and suppliers to ensure awards are delivered on time, error free and on budget.

Education / Experience Required

College graduate preferred

Skills & Abilities Organizational, verbal and written communications are strong requirements. Ability to multi-task and work with several internal operational systems necessary to manage ongoing work load. Inventory management skills considered a plus.

Roles & Responsibilities(the “deliverables” in the position)

Must act as a intermediary between the customer and the supplier to ensure expectations are met. Ideal candidate must have the ability to work on several projects simultaneously.

Level of involvement in each phase of Customer Delight Process

DiscoveryNot Involved

DesignLow Involvement

DefinitionHigh Involvement

DeliveryHigh Involvement


PG-85


Job Title Recognition Design Manager

Job DescriptionWork directly with Marketing Directors, Account Managers, Account Executives and clients to develop award solutions that can be delivered on time and error free. Development of award solutions includes the study of recipient demographics and past customer award programs as well as integration into the total program solution from BI.


College graduate preferred.

Skills & AbilitiesVerbal and written communications, organization and presentation skills are strong requirements. Ideal candidate will also possess the ability to direct creative development of custom awards.


Ability to work on several projects simultaneously. Ideal candidate needs to track and forecast sales throughout the year.


DiscoveryLow Involvement

DesignHigh Involvement


DeliveryLow Involvement


PG-86


Job Title Director of Recognition Services

Job DescriptionManage a team of Design and Delivery managers that work directly with Account Executives, Design Directors, Account Managers and clients to develop award solutions that can be delivered on time and error free. Other responsibilities include: - Work directly with the field sales team to discover and develop new recognition opportunities- Manage department budget and P&L- Accurately track and manage sales forecast- Manage and continuously improve packaged solutions - Explore recognition industry for opportunities


College graduate preferred.

Skills & AbilitiesVerbal and written communications, organization and presentation skills are strong requirements. Ideal candidate will also possess the ability to direct a team of associates that create and deliver custom awards and merchandise.


Ability to work on several projects simultaneously.


DiscoveryHigh Involvement

DesignHigh Involvement


DeliveryHigh Involvement


PG-87

13/ 5/ 2007

R&R ’07: Budget

.91010.2609.350Total02.1002.100Campaign Rewards0.200.200Big F0.360.360Roadshow0.300.300DMT

(.025).060.100•Momentum.010.040.040•Membership

0.040.075•Training0.160.100Communications: • Launch02.2002.200Quarterly Team Cash

.9002.7001.800Regional Champions Club

.025.100.075Project P02.0002.000Champions Club

’07 vs. ‘06’07 Plan’06 PlanProgram


Budget Samples (3)


PG-88


Quantity2006 spent Quantity

2007 projected

spend Jan# awards @ $15 level 0 $0 0 $0 $0 # awards @ $25 level 0 $0 0 $0 $0# awards @ $50 level 0 $0 0 $0 $0# awards @ $100 level 0 $0 0 $0 $0Shipping and Freight $0.00 $0.00 $0

Total Website or Alternative Spending 0 $0 0 $0 $0 Day-to-Day Recognition Awards 0 $0 0 $0 $0 Informal Recognition $0 $0 $0 Formal Recognition $0 $0 $0

Grand Total $0 $0 $0

Items budgeted through Employee Programs for Employee Relations/RecognitionWestfield Excellence (performance)All Employee gifts - 2 per yearCareer Achievement Program (service)Gross up for recognition awardsRefreshmentsFuneral Flower Fund & life eventsScholarshipsCelebrations - Nat'l Customer Service Wk, Nat'l Volunteer Wk, Nat'l Housekeeping Week, Breast Cancer Month, Admin Prof DayBest Employers in Ohio processBring Your Child to Work DayToastmastersWestfield CircleWestfield Appreciation NightAll Employee EventGolf for Recreation CommitteeGolf League


PG-89


Acknowledgements

Our sincere thanks to the following education team members for their hours of input and review. These members include:

Theresa Howell – Tesoro – NAER Board Member and Education Team Chair

Linda Butler – BMW Manufacturing

Christi Gibson – NAER

Tommy Lee Hayes Brown – MetLife – NAER Board Member

Sonja Hutchinson – BI – NAER Board Member

Rita Maehling – Achieve Consulting, Inc.

Pamela Pongetti – Pongetti Publishing

Roy Saunderson – Recognition Management Institute

Special thanks to a dedicated group of Twin Cities Recognition Professionals who provided their time and talents in a pilot session/review of these material. These participants include

Anne Florin, Wells Fargo Laura Jendersee, Crystal D

Mary Frickstad, Wells Fargo Ryan Maddux, Wells Fargo

Michele Grant, Hallmark Insights Mary Mathiason, Thrivent Financial

Sonja Hutchinson, BI John O’Brien, BI

The following organizations have provided financial support for this educational endeavor.

Special Thanks to Baudville the 2007/2008 CRP Pin/Plaque Sponsor


PG-90



PG-91

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