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u s O Kd Ideas and Information for The Recognition Experience 

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PepsiAmericas Pops the Top on Recognition’s Potential David Tipton, Manager, Organizational Capabilities

Cola giant invigorates employee commitment and performance

W

hen PepsiAmericas’ Sales Manager Rudy Will walked into his weekly sales meeting he never expected it to be a career-defining moment. “These sales people have a tough job,” says Will. “They work in a very fast-paced environment in a hyper-competitive industry. We’re always focused on sales production, production, production. Our meetings usually center around what needs to be done and how fast we need to do it.” This meeting, however, had a different agenda. Will had been trained in PepsiAmerica’s new “Thirst For More!” Recognition Strategy and was charged to introduce the company’s new suite of performance, milestone, retirement and safety recognition programs to the group. “If I could have taken a snapshot of that day and their faces, it was something you very rarely see here,” says Will. “To say they were receptive to what I was showing them would be an understatement. When I finished introducing all the programs PepsiAmeicas had in place to recognize them, they were all standing up and cheering. Literally cheering — in a weekly meeting? They all left the meeting with huge smiles on their faces and things have been different ever since.” A major force in the soft drink industry, PepsiAmericas is the second largest anchor bottler for PepsiCo. The Chicago area-based company produces and distributes more than 100 different beverages to more than 122 million people in the U.S., Central Europe and the Caribbean. (continued on page 2)

RECOGNITION SNAPSHOT

Welcome to the Workforce Entry level hiring is expected to surge in 2007 by 17 percent, the fourth consecutive double-digit increase, according to the National Association of Colleges and Employers (NACE). And this may be just the beginning. By 2010, as the exodus of baby boomers from the workplace accelerates, census data suggest two employees will leave for every new hire that enters and new college grads will be a precious commodity. Source: Lindsey Gerdes, Businessweek September 18, 2006

INSIDE

this issue:  Jarden Consumer Solutions:

Recognition with Impact p.5  Carrots Goes to Vegas p.5


two PEPSIAMERICA (continued from page 1) The company’s 14,000 employees say it’s the company’s commitment to excellence in all their markets that keeps Pepsi at the top of its game. And now, many of them are feeling more committed than ever before. Just launched in April 2007, the PepsiAmericas Recognition Strategy is already quenching employees’ thirst for recognition. “The difference these programs are making is just amazing,” says Will. “I was shocked to be honest with you. I didn’t think that it would have that kind of impact. I knew there was a need to reach out and recognize

meaningful for every employee,” says Barbara Kallay, vice president of HR for the company. “When we took a look at it, we were able to see that recognition helps drive employee engagement which ultimately drives discretionary effort leading to higher productivity. Greater productivity leads to better results for PepsiAmericas. That made it the right thing to do for everyone.”

An All-in Approach PepsiAmericas new, reformulated Pepsi All-Stars Recognition strategy included the launch of five separate programs: Milestone, Retirement, Performance, Safety and Leadership. Although many organizations would shy away from such

“[Recognition] is generating excitement to the point where not only are managers recognizing employees, but employees are recognizing each other... It’s a great thing for the culture and sense of teamwork at PepsiAmericas.”

Beata White, Recognition Committee Member and HR Generalist

our people, but for the company to step up and make it a priority — it was huge for them.” PepsiAmericas decision to launch a suite of recognition programs came after the company’s most recent climate survey. The question, “My company’s formal recognition programs are motivational to me,” came in as one of the surveys bottom three responses. “We had a lot of programs in place,” explains David Tipton, recognition program creator and manager of organizational capability for PepsiAmericas. “But those many different recognition programs were carried out in many different ways across the organization. The results of our climate survey got our attention and we realized that despite having so many recognition programs, something needed to change.” As Tipton and his team began putting their arms around recognition at PepsiAmericas they soon realized that if they were going to fix one program, why not fix them all? In the end, says Tipton, it became an effort not just to correct what we were already doing, but also to create a complete recognition strategy — one that included critical components missing from existing programs. “We want to ensure the recognition strategy includes something special and

an ambitious multi-program rollout, PepsiAmerica’s managers say the comprehensive nature of the company’s new recognition strategy is the best thing the company could have done. “You have to take a look at the big picture of what PepsiAmerica’s is trying to accomplish,” says Region Manager Dan Grzybowski. “If you only go half the way with the program, that’s what you’re probably limiting yourself to get — half the value out of it. When you look at taking the whole program as we have, you really look at the longer term and bigger picture of building a team through a vision of what you really want to accomplish — getting everybody unified as a team, working together, having passion, having integrity.” In order to make sure all of PepsiAmericas management felt comfortable with the new program, its ins and outs and the expectations associated with it, the company invested in a complete training program. “Training was critical so that everybody had a baseline,” explains Keith Sanders, vice president of compensation, benefits and HRIS for PepsiAmericas. “Training allowed us to make sure everybody knew fundamentally what we wanted to do, what tools were out there, and, as with any recognition, how they could personalize it to make the programs right for their people.” (continued...)

PepsiAmericas team members celebrate the Thirst for More! strategy Mike Pulcanio, Human Resources Director

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employees. “I’ve only been here a few months,” says Sales Assistant Kristin Nalepa. “But in that time things have changed drastically. Recognition has become a team-building thing. It’s bringing people together rather than just focusing on a paycheck and getting the job done.” Not to mention that the key chain and charm provided to PepsiAmericas newcomers on their first day and again at 90 days have become highly coveted awards. “I’ll tell you, something as simple as a key chain — people are so appreciative and surprised. They feel so special and they know we know they’re here. It’s been a great thing to see. It also gives managers and HR Generalist Kevin Langford and the new employee a chance to give and get feedback,” other PepsiAmericas team members rolled out the new recognition strategy says Tipton. in manager training sessions Aside from turnover statistics, PepsiAmericas’ leaders also report challenges managing a multi-generational workforce. “One of the great benefits of these programs is the interaction it creates within the ranks,” reports Grzybowski. “We have a large group of employees with 15 years of service or better then a large gap down to where our one- to three-year employees A Refreshing Start Tipton and his team carefully considered the demographics of its employee popula- form another majority. There are divisions there not just because of age, but because tion before deciding on the right programs to implement. Through their research they of the changes and experiences of each group. For us, recognition has closed that gap by allowing us a forum to share mutual experiences and learn to understand each discovered nationwide most employees decide to stay or leave a company between other better. It’s truly been a relationship builder for our teams.” years one and five. PepsiAmericas turnover statistics told the same story. Nalepa agrees, “Someone just celebrated their 25-year anniversary on my 24th “When we took a close look at turnover at PepsiAmericas we found that 69 perbirthday. We had a good laugh about it. I know he walked away feeling like he was cent of those who leave the company do it within the first three years. And over 46 worth something to this company to have been here for so long and to be honored for percent of those who leave left with less than one year of service,” reports Tipton. his accomplishments. For me, I saw an example of what it means to have a career here. “Knowing that turnover is one of the business metrics we expect recognition to help I considered it a bonding experience.” improve, we asked what is a strategic lever we can pull there? Our O.C. Tanner recognition consultant, Ford Campbell, asked us what we were doing to engage people in those early days and years of their careers. The truth was we weren’t doing Values: A Key Ingredient much. So to get strategic about moving the needle on turnover, the answer for Knowing that one of us was earlier milestone recognition — honoring employees at 90 days, one the key goals of any recogyear, three years, and of course, performance recognition in between.” nition program at The earlier recognition has been welcomed by PepsiAmericas’ newest PepsiAmericas was to move the Training and implementation at PepsiAmericas followed a “waterfall” approach — training senior management with extended training scheduled to cascade through each of the business units. “I was one of the managers that was trained to conduct training sessions for other managers,” says RoseAnn Fazio, human resource generalist at the company’s Elk Grove location. “It was great to see a light in the managers’ eyes as they started to understand recognition a bit differently than they had thought of it before. You can give out some pamphlets and notes or send an email, but I don’t think it has the same impact as being in a room together and sharing the energy of these programs. [The training] was really a time of rejuvenation and it got our managers pretty excited.” And it’s that type of energy Tipton and his training teams were trying to tap in to. “This is about more than another program,” says Tipton. “It’s about changing our culture. To do that we have to make sure we’re all on the same page — and that’s why training was so important. Training delivers the same message across the board. From our CEO to a driver in Wisconsin, people are saying the same thing about the program. They’re saying I understand what it’s trying to do and it’s pretty cool. And I think that consistency has come because we’ve concentrated on rolling out the program in a strategic way.” Of course crafting a suite of strategic recognition tools was of utmost importance as well. For that, Tipton and his team first took a closer look at the people that made up PepsiAmericas.

(continued...)



Erin Gough, Compensation Analyst

RoseAnn Fazio, Human Resource Generalist, Rudy Will, Sales Manager, Kristin Nalepa, Sales Assistant


four needle on business results, Tipton and his team turned to O.C. Tanner for suggestions on how best to use the suite of recognition programs the company planned to offer to their full advantage. “Initially we weren’t tying our program to specific values,” says Erin Gough, compensation analyst and recognition committee member. “When our consultant asked us what values PepsiAmericas espoused, we listed off the five corporate values and it was like a light bulb went on. The values would be our criteria for recognizing employee performance and we would train managers to emphasize the values in presentations. That realization has been key to the success of the programs.” Managers say the values-based programs make sense and help employees better understand both program relevance and importance. “By tying recognition to the values employees understand why the actions they take matter to the company,” says Gough. “People understand they do important, significant things for this huge organization; that their actions make the difference.”

Keep it Simple With the launch of so many programs to so many areas of the company, PepsiAmericas recognition committee focused in on the practical aspects of making the programs easy to use. They knew the systems they put in place had to provide a great experience or the values awareness and business results they were seeking to improve simply would not happen. “I cannot tell you how much easier the new programs are to use,” says Sales Manager Rudy Will. “The process we had in place before was very time-consuming. There would be times I’d sit at my computer and stare at the monitor because I didn’t know what to say. The new programs guide you through the entire process. Now, when I recognize someone I am much better at communicating the accomplishment. And that makes my people feel a lot better about themselves.” That type of user-friendliness is exactly what recognition committee members worked to develop. “We definitely want the tool to help facilitate recognition here, talk to the culture,” says committee member and HR Generalist Beata White. “The programs will continue to saturate the employee base. Already it’s generating more excitement to the point where not only are managers recognizing the employees, but the employees are recognizing each other. That is something that historically did not happen. It’s a great thing for the culture and sense of teamwork at PepsiAmericas.”

Keith Sanders, Vice President of Compensation, Benefits and HRIS

PEPSIAMER IC MORE! REC AS’ THIRST FOR OG — KEY GO NITION STRATEGY ALS: 1. E

asy-to-use, manager-dr 2. Create “ iven progra Recognition m Center” in e location ach 3. Address any gaps in current effo 4. Align pro rts gram with c o r p o r a and busines te values s priorities 5. Involve e mployees in designing th recognition e system 6. Provide fr equent feed back to par and manage ticipants rs 7. Reward individuals and teams 8. Keep it fr esh

Creating a Win-Win Company leadership expects the Thirst for More! Recognition Strategy to make a tangible difference in the next climate survey due out later this year. “The program is easy to administer, was quick to deliver results the organization can see and makes it easier to recognize employees in a meaningful way,” says Tim Donnelly, the company’s vice president of U.S. supply chain. And, according to Donnelly, those factors combine to make it a tool managers and employees are willing to use. “The volume of tasks on everybody’s plate in corporate America is extreme,” says Mike Pulcanio, human resources director for PepsiAmericas’ Upper Midwest Division. “There’s a lot to do and you organize your priorities according to what contributes to the business. Sometimes that means pushing to the side the things that are the “nice-to-dos.” This program helps us move recognition into the priority column because it is relevant, strategic and easy.”



IDEAS FOR GETTING

MANAGERS INVOLVED: PepsiAmericas’ Managers Thirst for More! Recognition:

How do you encourage busy managers to take the time to recognize? Here are some ideas that have turned recognition from a task to a habit for PepsiAmericas’ managers: Dan Grzybowski, Region Manager



 Make sure each manager attends recognition training so they understand the importance and impact recognition can make in the organization  Create materials that give managers the tools they need to recognize their team members, including a supply of thank you notes and spot awards  Put weekly reminders in your managers’ online calendars  Encourage thank you letters be sent to the home for employees who work in the field — it allows them to share the moment with their families

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Values-based Recognition Drives Exceptional Products, Outstanding People

If your morning routine includes brewing a pot of coffee, making some toast or whipping up a breakfast smoothie, chances are you count on Jarden Consumer Solutions and its more than 13,000 employees to make your life better. Home to such well-known brands as Bionaire, Crock-Pot, FoodSaver, Health o meter, Holmes, Mr. Coffee, Oster, Patton, Rival, Seal-aMeal, Sunbeam and VillaWare, Jarden Consumer Solutions focuses on making life easier for its customers by delivering consistency, reliability and convenience. So it was only natural for the company to bring these same values to its recognition programs. “We’re looking to create an umbrella of recognition across the organization,” says Rocki Rockingham, vice president of community relations and communication for Jarden Consumer Santa Forgét, Solutions and administrator of the company’s HR Representative recognition programs. “We want to make sure we can capture and replicate the practices that are most effective throughout our businesses. Organization-wide programs give us a better opportunity to drive a culture of recognition.” Rick Gayle, senior director of organizational development and training, agrees. “We know that recognition is a huge factor in employee engagement,” says Gayle. “We also know that employees need to know what’s expected of them to be truly engaged. By tying recognition to our core values and communicating the types of behaviors that are important to the company, recognition becomes a tool that drives our culture.” According to Jarden Consumer Solutions’ recognition consultant Dan Norman, the company was one of the first to tie their core values to their service award program. “Jarden Consumer Solutions was one of the first to understand that recognition can be strategic,” says Norman. “By incorporating their core values they elevated recognition to a business tool and went on to reap the rewards of that decision.”

Carrots Hits the Strip: The Carrot Principle Research Unveiling Tour Arrives in Vegas

It’s rare that a large group of Vegas high rollers gathers at 9 a.m. to place major bets. But this summer, The Palms hotel played host to a community of Vegas hotel and casino managers ready to learn how to use recognition to strike it rich with employees. In fact, in 49 cities across the country managers have gathered to hear the astounding results of a 200,000-person research study that outlines the central characteristics of the most successful managers. Through the nationwide 2007 Carrot Principle Research Unveiling Tour, thousands of attendees have learned about world-class organizations such as KPMG, DHL and Pepsi Bottling Group, who found dramatically greater business results when managers offered constructive praise and meaningful rewards. We caught up with The Carrot Guys in Las Vegas. Here’s what attendees had to say about the event: Kennan Wolff, manager of service excellence for MGM University, gained a new understanding or recognition’s importance. “A lot of people have different theories on recognition and reinforcement and reward,” says Wolff. “Today, I saw some new ideas and understand why Carrots can make a difference. I really didn’t know that there was such a strong basis for recognition as a business practice.” The lights went on for Pat Smith, too. An officer for Southwest USA Bank, Smith and her colleagues came to the unveiling looking for answers. “When our company started six years ago we lost our entire staff at least twice over,” says Smith. “Today’s research showed me that if I want the

“By applying our core values, people understand the direction of the company because it provides consistency,” says Rockingham. “They identify with and trust the values of the program because they see company leaders exhibiting those same values. When a leader recognizes someone and speaks about how that person exemplifies teamwork, honesty or integrity, people begin to see that those values are significant to the organization. They are the core values employees should demonstrate, and when they are demonstrated through above and Rick Gayle, Senior Director of beyond actions, they will be recognized.” Organizational Development And, adds Santa Forgét, HR representative, those values are understood on a global scale. “This past year, our employees in Canada, Mexico and Hong Kong have begun taking part in our recognition programs,” says Forgét. “Each location has been receptive to the program. Recognition is a universal need; a universal idea. And no matter where they are, every Jarden Consumer Solutions employee is working toward the same company goals and demonstrating our shared core values.” While Rockingham says qualitative evidence suggests recognition is a sure winner for the organization, she continues to work on developing more quantitative tools to gauge the recognition program’s impact across the organization. “This is not about creating more work for managers or about creating another program. It’s really about streamlining something that’s already there and creating a platform that makes it easier for people to do their jobs, to share recognition or share rewards with other people and recognize the good work employees are doing,” says Rockingham. “We are convinced our numbers will show that by engaging employees, recognition is creating bottom-line results that ripple throughout the entire organization.”  Rocki Rockingham, Vice President of Community Relations and Communication

results these other organizations are showing — improved turnover, engagement, etc. — I need to get better at recognizing my people.” Recognition manager Sharon Louie of the Excalibur casino says Smith and others like her are on the right track. “I have a passion for recognition. It’s what I do at Excalibur and it’s great to come and understand that big companies like DHL and Xcel Energy have quantitative measurements that show it’s working,” says Louie. “The results of the study are impressive, but they don’t surprise me. With our own program roll out I can see the energy from our employees improving. We have more buy-in and ownership when employees see and understand the types of values and actions we recognize.” Cheri Gould, training manager for The Palms, willingly played host to the event after seeing Carrots work for her managers. Cheri Gould, “It’s been great,” says Gould. “As Training Manager managers who bought in early to for The Palms the idea of recognition watch their guest service scores go up, we get the more skeptical managers coming to us to be trained again. Carrots gives our managers the tools they need to meet their business goals and make their employees happy.” You can read up on the research in The Carrot Principle by Adrian Gostick and Chester Elton. Learn more at: www.carrots.com


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And the Stevie goes to... ®

Jeff Shuman Honored as Best Human Resource Executive by The American Business Awards

Roll out the red carpet, please. Jeff Shuman, vice president of human resources and corporate relations for Harris Corporation, recently received the Best Human Resources Executive Award at the fifth annual American Business Awards, also known as the Stevie  Awards, in New York. Often referred to as “the business world’s own Oscar Awards,” Shuman received the award for his work overseeing the human resources and corporate relations functions for all of Harris Corporation, which has more than 15,000 employees worldwide. “I was thrilled and honored to receive this level of recognition by the American Business Awards,” says Shuman. “I felt it was a great tribute to the Harris organization because Harris truly values our people and this award underscores the vital connection between people and an organization’s success.” Shuman has been an architect of change for the company’s human resources organization. Under his management, Harris has brought human capital management processes such as performance management, workforce planning, skills management, succession planning, recruiting, and resource scheduling into an integrated whole. In addition to being a champion for strategic recognition practices in the organization, in 2006 Shuman oversaw the development of a corporate-wide set of values and has led the internal branding campaign to promote these values to Harris employees worldwide. Says Shuman, “Recognition transcends beyond being a nice thing to do. Recognition provides the leader an opportunity to motivate people, highlight behavior and actions that are desired and help focus an organization around what is important. Recognition is an extremely valuable tool for the leader to have in her/his toolkit and to deploy appropriately.” Shuman believes HR must bring business tools to the table, like recognition, that help leaders align employee actions with business values and goals. “[HR leaders] must be fully aligned with our businesses, we must possess strong business acumen, each of us must demonstrate that we are credible and trusted activists and we must lead rather than wait for someone to tell us what to do,” says Shuman. ® Beginning with The American Business Awards in 2002, The Stevie Awards were created to honor and generate public recognition of the efforts, accomplishments, and positive contributions of companies and business people worldwide. In 2007, more than 2,000 nominations were submitted for consideration in more than 40 categories. O.C. Tanner congratulates Jeff Shuman and the Harris Corporation on this important accomplishment.

COMPANY Recognition tran“scends beyond being a nice thing to do. Recognition provides the leader an opportunity to motivate people, highlight behavior and actions that are desired and help focus an organization around what is important.

Jeff Shuman, Vice President of Human Resources and Corporate Relations for Harris Corporation

ON THE COVER: Holiday gifts from thanks ™: “you shine” Orrefors “ICE” Votive Candle, V Chocolates Caramel Apple, “ICY” Orrefors Snowman

Kudos Volume 11 Number 3 Publisher Managing Editor Design/Layout Graphic Supervisor Award Photographer

O. C. Tanner Recognition Co. Mindi Cox Janice Takagi Shauna Raso Rick Hayward

KUDOS is published by O.C. Tanner Recognition Company, 1930 S. State St., Salt Lake City, UT 84115. Copyright 2007 by O.C. Tanner. All rights reserved. Reproduction in part or whole without written permission is prohibited. Not responsible for unsolicited materials. Second-class US postage paid at Salt Lake City, UT 84101 and additional offices. Postmaster send address changes to above address.

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When PepsiAmericas’ Sales Manager Rudy Will walked into his weekly sales meeting he never expected each other... It’s a great thing for the...

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