1. with Bob Nelson, Ph.D. Sponsored by Maritz, Inc. July 28, 2009
Best Practice Institute Keeping Up in a Down Economy: What the Best Companies Do to Get Results in Tough Times
presents
with Bob Nelson, Ph.D.
Sponsored by Maritz, Inc.
The Leader in Employee Rewards
July 28, 2009

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

3. Bob Nelson

4. Recent Research

5. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?

6. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

7. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
A Clear & Compelling Direction
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

8. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
A Clear & Compelling Direction
Open & Honest Communication
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

9. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
A Clear & Compelling Direction
Open & Honest Communication
Continued Focus on Career Growth & Development
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

10. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
A Clear & Compelling Direction
Open & Honest Communication
Continued Focus on Career Growth & Development
Recognizing & Rewarding High Performance
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

11. Recent Research
What Most Distinguishes High Engagement Workplaces from Low Engagement Workplaces During Recessionary Times?
A Clear & Compelling Direction
Open & Honest Communication
Continued Focus on Career Growth & Development
Recognizing & Rewarding High Performance
Employee Benefits that Support Well Being
Source: Research from 5,000 companies conducted by Quantum Workplace
(n = 1.5 million employees)

12. Stress = Excitement

13. Acknowledging and Appreciating People for Their Achievements
Recognition = Energy
Acknowledging and Appreciating People for Their Achievements 13

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

15. of a Recognition Culture
Employee Value
of a Recognition Culture

16. 5 times more likely to feel valued
Employee Value
of a Recognition Culture
5 times more likely to feel valued

17. of a Recognition Culture
Employee Value
of a Recognition Culture
5 times more likely to feel valued
7 times more likely to stay with the company

18. of a Recognition Culture
Employee Value
of a Recognition Culture
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

19. of a Recognition Culture
Employee Value
of a Recognition Culture
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
—Maritz Poll, 2007

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

21. How to Keep Employees Excited and Committed in Tough Times?
The Challenge
How to Keep Employees
Excited and Committed
in Tough Times?

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

23. 6 Key Strategies to Use During Tough Times23

24. 6 Key Strategies to Use During Tough Times
#1 Revised Goals and Renewed Focus 24

25. All Performance Starts with Clear Goals and Expectations

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

27. Refine Your Focus During Tough Times
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?”

28. 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.

29. 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 got bonuses in the first half of 2008.

30. Source: Based on post-doctoral research by Dr. Bob Nelson
6 Key Strategies to Use
During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
Source: Based on post-doctoral research by Dr. Bob Nelson 30

31. Source: Based on post-doctoral research by Dr. Bob Nelson
6 Key Strategies to Use
During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
**Manager provides employee
information he/she needs 95%
Source: Based on post-doctoral research by Dr. Bob Nelson 31

32. Source: Based on post-doctoral research by Dr. Bob Nelson
6 Key Strategies to Use
During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
**Manager provides employee
information he/she needs 95%
**Manager asks employee for
opinions or ideas 92%
Source: Based on post-doctoral research by Dr. Bob Nelson 32

33. Source: Based on post-doctoral research by Dr. Bob Nelson
6 Key Strategies to Use
During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
**Manager provides employee
information he/she needs 95%
**Manager asks employee for
opinions or ideas 92%
**Manager involves employee with
decision-making 89%
Source: Based on post-doctoral research by Dr. Bob Nelson 33

34. Source: Based on post-doctoral research by Dr. Bob Nelson
6 Key Strategies to Use
During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
**Manager provides employee
information he/she needs 95%
**Manager asks employee for
opinions or ideas 92%
**Manager involves employee with
decision-making 89%
**Manager supports employee when
he/she makes a mistake 94%
Source: Based on post-doctoral research by Dr. Bob Nelson 34

35. “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

36. Communication Strategies
For Tough Times
Groups: Town hall meetings, CEO breakfasts, brown bag lunches, idea boards; being open and honest in explaining the situation and challenges going forward

37. Communication Strategies
For Tough Times
Groups: Town hall meetings, CEO breakfasts, brown bag lunches, idea boards; being open and honest in explaining the situation and challenges going forward
Individuals: Personal support and “face time,” especially for those doing desired behavior, achieving desired results

38. 6 Key Strategies to Use During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
#3 Involvement and Initiative 38

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

40. Guidelines for Involvement
Identify key influencers
Let teams do the problem solving
Make it a conversation
Follow through
Source: 40

41. most frustrated employees
Example
Texas Commerce Bank held focus groups with employees to determine what procedures
most frustrated employees
and customers.

42. most frustrated employees
Example
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.

43. Example
Amid severe cutbacks, Best Buy has set up online surveys to solicit ideas from its employees for cutting costs.

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

45. 6 Key Strategies to Use During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
#3 Involvement and Initiative
#4 Autonomy and Flexibility 45

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

47. Autonomy Strategies For Tough Times
Groups: Allow groups to organize around problems and opportunities the organization faces

48. Autonomy Strategies For Tough Times
Groups: Allow groups to organize around problems and opportunities the organization faces
Individuals: Allow individuals flexibility, where possible, in their schedules & working hours

49. Example
Sun Microsystems allows employees to telecommute when possible as their work permits it.

50. Example
Sun Microsystems allows employees to telecommute when possible as their work permits it.
Result: Those employees who averaged 2.5 days at home each week saved $1700 a year in gas and vehicle wear-and-tear.

51. 6 Key Strategies to Use During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
#3 Involvement and Initiative
#4 Autonomy and Flexibility
#5 Learning and Development 51

52. Ninety percent of all development occurs on the job.

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

54. Example
During the recession of , Toyota shut down a plant for 10 months, but kept all employees and trained them.

55. Example
During the recession of , 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.

56. Development Strategies
For Tough Times
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

57. Example
American Express teaches its managers a delegation technique they call “Label and Link.”

58. Result: Employees better understand what is needed
Example
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.

59. 6 Key Strategies to Use During Tough Times
#1 Revised Goals and Renewed Focus
#2 Information and Communication
#3 Involvement and Initiative
#4 Autonomy and Flexibility
#5 Learning and Development
#6 Recognition and Praise 59

60. Source: Post-doctoral research conducted by Dr. Bob Nelson
99.4% of today’s employees expect to be recognized when they do good work
Source: Post-doctoral research conducted by Dr. Bob Nelson

61. Few Employees Feel Recognized Today
Only 12% of employees strongly agree that they were consistently recognized in ways that are important to them

62. Few Employees Feel Recognized Today
Only 12% of employees strongly agree that they were consistently recognized in ways that are important to them
Nearly three times as many (34%) disagree or strongly disagree that they are recognized in ways that are meaningful to them
– Maritz Poll, 2006

63. All Behavior is a Function of its Consequences

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

65. Recognition and Rewards
For Tough Times

66. Recognition and Rewards
For Tough Times
Groups: Celebrations, team-building activities, morale-building meetings, team awards and competitions

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

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

69. Recognition and Rewards
For Tough Times
Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, food
Symbolic Items, e.g., tokens, coins for vending machines, points for performance

70. Example
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.

71. Example
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.

72. Recognition and Rewards
For Tough Times
Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, food
Symbolic Items, e.g., tokens, coins for vending machines, points for performance
Employer Perks, e.g., soft drinks, bottled water, snacks, a celebration pizza, ice cream socials

73. Recognition and Rewards
For Tough Times
Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, food
Symbolic Items, e.g., tokens, coins for vending machines, points for performance
Employer Perks, e.g., soft drinks, bottled water, snacks, a celebration pizza, ice cream socials
Time-off Rewards, e.g., vouchers for time off, calling in well, schedule adjustments

74. Example
Boston-based Greenough Communications started “Winter Fridays” in which high-performing employees are awarded by being able to leave at 3 pm on Friday.

75. Example
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.

76. Example
Los Angeles-based JS Communications recently gave employees two free “I Don’t Want to Get Out of Bed” days in the forthcoming year.

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

78. Recognition and Rewards
For Tough Times
Low-end Rewards, e.g., e-cards for Starbucks, Amazon.com, gas cards, gift certificates, food
Symbolic Items, e.g., tokens, coins for vending machines, points for performance
Employer Perks, e.g., soft drinks, bottled water, 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 accessible, sincere thanks

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

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

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

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

83. Common Elements of Key Strategies
Key factors tend to be intangible
Key factors tend to be interpersonal
Key factors are all forms of recognition
Conclusion: In challenging times, increase the personal aspects of managing. 83

84. Creating a Culture of Recognition
A Best Practices Model
Essential Elements
Strategy and Commitment
Communication and Branding
Measurement and Tracking
Improved
Performance
Desired
Behaviors
Rewards and Celebration
Management Training
Process Improvement

85. The Core Element:
Management

86. Heads, Hands, Heart

87. Questions? Bob Nelson, Ph.D. bobrewards@aol.com (800)575-5521

88. Bob Nelson, Ph.D.
(800)
New Book: Keeping Up in a Down Economy
Speaking & Consulting Services
Resources, Articles and Assessments
Best Product and Bulk Book Discounts
Free Tip-of-the-Week Registration

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

90. Thank You! Best Practice Institute Maritz, Inc. 1-877-4MARITZ