1. with Bob Nelson, Ph.D. Sponsored by Maritz, Inc. March 3, 2010 Best Practice Institute Keeping Up in a Down Economy: What the Best Companies Do to Get Results in Tough Times presents

2. Bob Nelson, Ph.D. President, Nelson Motivation Inc. Co-Founder, Recognition Professionals International NYT/WSJ Best-selling Author Your Presenter

3. Bob Nelson

4. 40% of today’s employees report that their job is very or extremely stressful 25% say its the #1 stressor in their life 60% feel pressure to work too much 56% are somewhat or completely dissatisfied with their jobs 85% feel overworked and underappreciated 54% say they plan to find a new job as the economy improves (75% for younger workers) Recent Research

5. 40% of those who weren’t downsized report being less motivated 74% say their productivity has dropped 64% say the their co-workers’ productivity has also declined Lost productivity costs U.S. businesses more than $4.4 billion each day More Recent Research

6. Stress = Excitement

7. 1)The relationship with one’s manager is the most important one at work 2)The best leaders are consistently positive and forward looking, especially in challenging times Research on Leadership

8. Acknowledging and Appreciating People for Their Achievements Recognition is…

9. When You Get Serious About Performance You Have to Get Serious About Recognition You Get What You Reward

10. Think of a recent time when you were recognized. What was done? Be specific. How did it make you feel? Activity

11. 5 times more likely to feel valued 7 times more likely to stay with the company 6 times more likely to invest in the company 11 times more likely to feel completely committed —A recent Poll Employee Value of a Recognition Culture

12. Source: Towers Perrin Engagement Research, 2008 Committed Employees Deliver 57% More Effort Than Uncommitted Ones

13. Because Organizational, Cultural and Financial benefits are realized through positive employee recognition and effectively engaging your entire workforce Recognition: A Strategic Imperative

14. All Behavior is a Function of its Consequences

15. Positive Consequences Negative Consequences No Consequences Three Types of Consequences

16. How to Keep Employees Focused and Committed in Tough Times? The Challenge

17. 6 Key Strategies to Use During Tough Times

18. 6 Key Strategies to Use During Tough Times #1 Create a Clear & Compelling Direction

19. All Performance Starts with Clear Goals and Expectations

20. Refine Your Focus During Tough Times

21. Groups: Ask “What are the most important things we should be focusing on at this time?” Refine Your Focus During Tough Times

22. Example Home Depot has cut jobs and closed 15 locations. They reset more realistic goals by lowering sales and profit targets that hourly employees need to achieve to receive bonuses. Result: The highest percentage ever of in-store employees recently received bonuses.

23. Groups: Ask “What are the most important things we should be focusing on at this time?” Individuals: Ask “What can you do in your job that can most help us right now?” Refine Your Focus During Tough Times

24. Top Ten Planner

25. 6 Key Strategies to Use During Tough Times #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication 95% of employees rate as a top priority* 48% of executives rate as a top priority** *Source: Based on post-doctoral research by Dr. Bob Nelson ** Source: Interviews with executives by Accountemps

26. Groups: Town hall meetings, CEO breakfasts, brown bag lunches, idea boards, etc Individuals: Personal support and “face time,” increased access and availability Communication Strategies For Tough Times

27. 6 Key Strategies to Use During Tough Times #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative 92% of employees want to be asked for their opinions or ideas 89% of employees want to be involved in decision-making Source: Based on post-doctoral research by Dr. Bob Nelson

28. To maximize buy-in and motivation, challenge people for ways to improve.

29. Groups: Explain how you need their efforts now more than ever before; provide new structure or processes and follow up Involvement Strategies For Tough Times

30. Texas Commerce Bank held focus groups with employees to determine what procedures most frustrated employees and customers. Result: Using the feedback, the company nearly doubled its $50 million cost-savings goal. Example

31. Groups: Explain how you need their efforts now more than ever before; provide new structure or processes and follow up Individuals: Ask them for their ideas and opinions; involve them in decision making, especially for decisions that affect them and their work Involvement Strategies For Tough Times

32. Amid severe cutbacks, Best Buy has set up online surveys to solicit ideas from its employees for cutting costs. Result: In just the first 3 weeks, some 900 ideas were submitted, which have led to significant cost savings. Example

33. Case Study: (Boardroom, Inc.)

34. 6 Key Strategies to Use During Tough Times #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative #4 Increase Emp Autonomy, Flexibility & Support

35. Work is becoming a state of mind more than a place to be.

36.  Give employees a greater say in how they do their work  Allow individuals flexibility, where possible, in their schedules & working hours Autonomy Strategies For Tough Times

37. Sun Microsystems allows employees to telecommute when possible as their work permits it. Result: The average employee saved $1700 a year in gas and vehicle wear-and-tear. Example

38. 6 Key Strategies to Use During Tough Times #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative #4 Increase Emp Autonomy, Flexibility & Support 94% of employees want their manager to support them when they make a mistake

39. “You can tell a lot about the long-term viability of any organization simply by looking at how it handles mistakes.” — Bill Gates Former Chairman Microsoft Corporation

40. #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative #4 Increase Emp Autonomy, Flexibility & Support #5 Continue Focus on Career Growth & Development 6 Key Strategies to Use During Tough Times

41. 90% of all development occurs on the job.

42. Groups: Know people’s strengths and interests, evaluate group needs and opportunities; constantly be training Development Strategies For Tough Times

43. During the recession of 2001-2003, Toyota shut down a plant for 10 months, but kept all employees and trained them. Result: Once it reopened, that plant had the highest global productivity and quality ratings, which helped secure a higher market share. Example

44. Groups: Know people’s strengths and interests, evaluate group needs and opportunities; constantly be training Individuals: Increase responsibilities and assign projects based on individual interests and abilities, especially for your most talented employees Development Strategies For Tough Times

45. American Express teaches its managers a delegation technique they call “Label and Link.” Result: Employees better understand what is needed and are more motivated to do those things. Example

46. #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative #4 Increase Emp Autonomy, Flexibility & Support #5 Continue Focus on Career Growth & Development #6 Recognize & Reward High Performance 6 Key Strategies to Use During Tough Times

47. 99.4% of today’s employees expect to be recognized when they do good work Source: Post-doctoral research conducted by Dr. Bob Nelson Although Most Every Employee Wants Recognition…

48. Only 12% of employees feel they are recognized in ways that are important to them Almost 34% feel they are NOT recognized in ways that are meaningful to them – A recent Poll Few Employees Feel Recognized Today

49. All Behavior is a Function of its Consequences

50. Positive Consequences Negative Consequences No Consequences Three Types of Consequences

51. Case Study: Walt Disney Company

52. Recognition and Rewards For Tough Times

53. Recognition and Rewards For Tough Times Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, points

54. Recognition and Rewards For Tough Times Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, points Symbolic Items, e.g., “Golden Banana,” spark plug award, tokens or medallions

55. Busch Gardens in Tampa, FL, supplies tokens to all supervisors to give to employees to reinforce core values. The tokens can be redeemed in their paycheck for $10. Result: Employees are more focused on desired behaviors that are rewarded and have fun in the process. Example

56. Recognition and Rewards For Tough Times Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, points Symbolic Items, e.g., “Golden Banana,” spark plug award, tokens or medallions Employer Perks, e.g., fresh coffee, soft drinks, snacks, a celebration pizza, ice cream socials

57. Recognition and Rewards For Tough Times Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, points Symbolic Items, e.g., “Golden Banana,” spark plug award, tokens or medallions Employer Perks, e.g., fresh coffee, soft drinks, snacks, a celebration pizza, ice cream socials Time-off Rewards, e.g., vouchers for time off, calling in well, schedule adjustments

58. Boston-based Greenough Communications started “Winter Fridays” in which high- performing employees are awarded by being able to leave at 3 pm on Friday. Result: Viable reward alternative to money for exceptional performance. Example

59. Los Angeles-based JS Communications recently gave employees two free “I Don’t Want to Get Out of Bed” days for use in the forthcoming year. Result: Employees love the benefit and consideration provided by the company. Example

60. Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, points Symbolic Items, e.g., “Golden Banana,” spark plug award, tokens or medallions Employer Perks, e.g., fresh coffee, soft drinks, snacks, a celebration pizza, ice cream socials Time-off Rewards, e.g., vouchers for time off, calling in well, schedule adjustments Constant Attention, e.g., checking in, asking questions, being assessable, sincere thanks Recognition and Rewards For Tough Times

61. Groups: Celebrations, team-building activities, morale-building meetings, team awards and competitions Individuals: One-on-One meetings, recognition activities, thanks and praise Recognition and Rewards For Tough Times

62. Personal Written Electronic Public Praise and Thanks Personal and Public Praise

63. Soon Sincere Specific Personal Positive Proactive ASAP-Cubed Praising Individuals

64. I saw what you did I appreciate it Here’s why it’s important Here’s how it makes me feel Praising Individuals

65. Think of someone you owe a praising to. Give that praising to the person next to you. Activity

66. Praise someone directly Praise them in front of others Praise them when they’re not around (i.e., positive gossip) Praising Strategies

67. #1 Create a Clear & Compelling Direction #2 Direct, Open & Honest Communication #3 Involve Employees & Encourage Initiative #4 Increase Emp Autonomy, Flexibility & Support #5 Continue Focus on Career Growth & Development #6 Recognize & Reward High Performance In Summary Six Key Strategies

68. Key factors are all intangible Key factors are all interpersonal Key factors are all highly motivating Conclusion: In challenging times, need to increase the personal aspects of managing Common Elements of the Six Key Strategies

69. Case Study: Walt Disney Company

70. Case Study: (Boardroom, Inc.)

71. Management Responsibility Performance & Results Management Responsibility Performance & Results Communication and Branding Measurement and Tracking Rewards and Celebration Management Training Process Improvement Strategy and Commitment Creating a Culture of Recognition A Systems Model

72. Management The Core Element:

73. Heads, Hands, Heart

74. Bob Nelson, Ph.D. bobrewards@aol.com (800)575-5521 www.nelson-motivation.com Questions?

75. Speaking & Consulting Services Resources, Articles and Assessments Best Product and Bulk Book Discounts Free Tip-of-the-Week Registration Bob Nelson, Ph.D. bobrewards@aol.com (800)575-5521 www.nelson-motivation.com Questions?

76. If You Don’t Recognize the Performance that Most Matters, You Won’t Get the Results You Most Want

77. Thank You! Maritz, Inc. 1-877-4MARITZ info@maritz.com Best Practice Institute