Undercover with the Boss

February 17, 2010

If you haven’t seen the new CBS TV show Undercover Boss, it’s worth checking out.  Perhaps not so much for the cheesy endings (at least on the first two episodes) where outcomes are achieved for individual employees that rival Queen for a Day in terms of bathos.  What is “new” here, though, is our ability to look over the shoulder of CEO’s from brand name companies while they experience first hand how hard their employees work to deliver a good outcome for their customers, often in spite of organizational obstacles imposed in the interest of greater efficiency.

I put “new” in quotes because the concept of understanding your front line employees as a means of understanding how to improve your business goes back to management research that Joseph Juran was pioneering in the 1950’s.  When I was teaching total quality management seminars in the 1980’s, we were preaching the value of understanding the moments of truth where your employees either delight or disappoint your customers.  What’s therefore so interesting about this show to me is what a revolutionary concept this field level view of the world has become for many organizations.

In the first episode, pictured above, Larry O’Donnell, President and COO of Waste Management experiences not only how difficult and dirty some of these waste disposal jobs are, but also how well meaning policies set at a corporate level can wreak havoc at the employee level.  He seems genuinely surprised to see that truck drivers have no bathroom breaks built into their routes or that cleaning 15 portable toilets an hour is a superhuman effort.  He appears equally surprised at the level of grace and humour that many of his brand ambassadors bring to their very tough jobs.  Larry takes action to address these issues when he goes back to his day job that hopefully will make the work environment more friendly for his employees.

How great could your organization be if senior leadership could experience life in the trenches?

P.S.  In the second episode, the CEO of Hooters seems perplexed that potential customers find the Hooters brand demeaning to women.  REALLY?

Mintzberg on Management

December 17, 2009

Our board member David Creelman has written a commentary on Henry Mintzberg’s new book, Managing.  You can find David’s discussion of this book here.  Dr. Mintzberg is a professor at the Desautels Faculty of Management at McGill University in Montreal and a frequent contributor to publications like the Wall Street Journal, BusinessWeek, Fast Company, etc.

David’s comment about the book below really rang a bell for me.  How about the rest of you managers out there?

The crazy world of the manager doing twenty things at once, working off-the-cuff in a situation only half understood is not a flawed system—that’s what management is.

Sick Yet? Managing Through H1N1 Season

November 17, 2009

As more and more of our friends and neighbors are experiencing the effects of the H1N1 virus, we thought we’d weigh in with some tips of our own.

As the flu season has unfolded, we’ve been receiving a variety of questions from our customers related to H1N1.  Because we sell data collection devices (time clocks) through which over 30 million people per day clock their time,  many of our customers are asking about strategies to reduce worker infection when many people are punching in and out through the same device.  In addition, customers are asking how to use our software to track absences specific to H1NI.  We created this resource guide to compile answers to these and other questions.  In addition to the resources listed in the above referenced resource guide, there are excellent recommendations in these OSHA and SHRM sites related to prevention, presenteeism and FMLA compliance.

I’ve written a few posts in the past related to presenteeism; i.e. sick workers coming to work and negatively impacting the productivity of their co-workers.   This phenomenon can affect all employers, some of whom still make it hard for sick workers to stay away.  See this story on Walmart demerits for sick employees.  This story is followed by over 100 comments from employees with similar stories to tell.

What’s your employer doing to minimize the impact of H1N1?

Announcing Kronos Retail Labor Index

September 8, 2009

The following guest blog post from Robert Yerex, chief economist at Kronos, introduces the Kronos Retail Labor Index being announced today:

The most interesting part of my job as chief economist at Kronos is working with the huge data sets made available through our hiring system. Based on application and hiring records from 69 of our retail clients, we have created a metric called the Kronos Retail Labor Index. Over the last three years, this Index has been a leading indicator of not only the retail economy but the U.S. economy overall. The Index is a measure of the relationship between the demand for, and supply of labor front-line labor in the retail sector. The jobs being filled are the front-end of the consumer-retail supply chain. Retailers can make changes at this end of the chain more easily and more quickly than anywhere else. As such these employees are figuratively the “canary in the coalmine” for the rest of the retail industry. Economists are always on the lookout for new leading indicators and this one has great potential. The Index is being made publically available for the first time today and can be accessed at: www.kronos.com/retail-labor-index. Going forward the Index will be updated on a monthly basis. I have had the chance to preview the Index with analysts and press, and the reception has been excellent.

Click here to listen to a podcast of my interview with Dr. Yerex and Steve Earl, director of product marketing at Kronos.

Get Sick? You’re On Your Own

March 6, 2009

Check out this discouraging news from a recent Hewitt survey, The Road Ahead: Emerging Health Trends 2009.  Nineteen percent of 343 Benefits executives they surveyed are planning to stop offering health benefits over the next three to five years, nearly five times as many as the 4% that said they were planning an exit strategy last year.

On the better news front,  those employers planning to continue to provide health benefits are citing keeping employees healthy as their primary workforce issue in 2009, up from the # 2 position in 2008.  This focus is reflected in workplace programs such as preventative screenings for common illnesses such as asthma, hypertension and high cholesterol as well as onsite weight management and exercise programs.  While these kinds of programs can certainly help employers manage their healthcare expenses, they also send a message to employees about their personal accountability for managing their own health risk factors.

Although the Workforce Institute doesn’t typically focus on benefits issues, this issue is one that dovetails with our recent observations that organizations that involve employees in being part of the expense management solution can drive better results in the long term than those who don’t.

Guest Blog: The Obama Workforce Agenda

January 30, 2009

The following guest blog post is submitted by our board member, Russell Klosk:

Even as we all watched the swearing in of our 44th President with the hope that things are going to get better,  we are grappling with current business and human resource environments plagued  by the  global economic recession and the worry that it will turn into the 2nd great depression.   The new administration looks to put its mark on the governance of the human capital function within the federal workforce,  and both a new administration and a new Congress take up the cause of reform of the laws that govern our workplaces.

It is in that spirit, and with an eye toward what the future MIGHT hold between the Obama administration and the 111th congress that I thought I would take a moment to put to paper some of the debates and intentions already taking place, and those that look like they will have traction.  My intent here is not to be all inclusive nor predict the future, but it seems likely some of it will come to pass, and as it does the HR environment will once again shift.   With that in mind,  I offer a discussion of the following workforce  items on the agenda of the new administration:

Potential Impacts on the Federal workplace:

1.    Obama has named Nancy Killifer, who comes out of McKinsey & Company with a fantastic reputation, as his Chief Performance Officer for the entire federal government.  This position does not currently exist, and while the President has the power to create it, for it to have any real teeth Congress is going to have to enable an individual in this role to have oversight over much of the executive branch.   That is a debate that is scheduled to be taken up in committee in early February.

Nonetheless, what Obama is envisioning is someone who can go through the government in a comprehensive way and increase performance by looking at certain functions holistically as a federal wide activity instead of an agency by agency activity.   Among other impacts this will focus on the acquisition process in general, in the human capital space the talent acquisition, promotion, and rewards (compensation / pay for performance) process, and logistics in general.   Other areas will certainly fall under the purview but have not yet been defined.  If you’d like to know more about what people like this typically do in the private sector go to http://www.chiefperformanceofficer.com and you will find a bevy of information

2.    Office of Personnel Management: Obama is interested in continuing President Bush’s formulation of Federal Centers of Excellence.  Among these are having one agency which is responsible for transactional level activity for key functions such as Finance, Accounting, Human Resources, etc.   This is highlighted by OPMs HR LoB initiative, and indications are that is going to get a kick up in implementation and authority going from a recommended federal architecture for the HR function to a mandated one.

Additionally the new administration sees waste in the duplicative efforts of multiple HR organizations.  Not sure yet if this will mean allowing OPM to become the chief HR provider for all federal agencies with only employee relation support in the individual agencies or if it will take the form of centralizing HR at the master agency level (i.e. DoD OSD level, DHS HQ level, etc.) and reducing the HR footprint in the sub agencies (i.e. Department of the Navy, Department of The Army,  and sub commands, DLA, etc.) but they are looking at both possibilities.   This would be a major shift to a more centralized HR model, and is not a small thing to get authority for, so lot of doubt if they will succeed in this area.   To date a new head of OPM has not yet been named.

The Obama administration is very concerned with the demographics of the federal workforce and the need to both ramp up hiring and retention programs as well as knowledge management programs to accomplish the work with a smaller workforce.   Overall they are talking about shrinking the size of the federal workforce, through attrition, to the tune of 10-15%, and see the most waste in what are loosely the GS 12-15 ranks.   The demographic trends say this will likely happen with or without a master plan as baby boomers begin to retire, and with only a very small Generation X contingent in the workforce, but this increased focus presents major shifts in the process and governance used in the executive branch over the next 4 years as well as major labor relations challenges.

Agenda Items of Interest to HR Professionals:

1.    Lilly Ledbetter Fair Pay Act (H.R. 11, S.181) passed the House on Jan 9 currently under debate in the Senate vote expected last week of January.   This is a response to an anti-discrimination law suit in which the courts held that issuing paychecks can not be challenged as a discriminatory act.   In other words it goes after unfair wage practice law, and issues revolving around facts such as women being paid less than men, etc.   Legally it states that every time a pay check is issued that would be considered an act of discrimination and opens the door for class action law suits.  In practical terms it mandates that compensation systems be modified so that the only differentiators for pay on a given job be seniority, merit, and production and that other factors such as sex, geography (that is a huge one), etc. are not valid.   The geography clause could result in the elimination of pay differentials based on geography and cost of living.  Of more import the act is retroactive, so it will force both employers and the federal government to go back and revue past pay policies and may force them to make restitution payments.

2.    Employee Non-Discrimination Act, not yet under debate, but would prohibit employment discrimination on the basis of sexual orientation

3.    Employee Free Choice Act (S. 2).  This is a major change to labor relations law in the US, and would mandate the certification of unions if a union could produce signed union cards totaling 50%+1 of a workforce regardless of how or when those cards were gathered.   It would eliminate secret balloting for unionizing a workforce and mandate set time frames under which union balloting must take place.   It would also mandate that once certified immediate collective bargaining must occur, and if unsuccessful in 90 days that the National Labor Relations Board would mandate an agreement through binding arbitration.

4.    RESPECT ACT. Narrows the legal definition of a “supervisor” under the provisions of the National Labor Relations Act.  Impacts include not only who could be part of a union bargaining unit, but also how companies formulate their organizational structures.

5.    Workplace Flexibility / Leave Act.   This is being pushed by Ted Kennedy as one of his legacy issues, and is also one of Michelle Obama’s stated focus areas.  It would have impacts on the changes to the FMLA regulations that take effect on February 1, 2009.   They would require any employer with more than 15 employees to provide paid sick leave (7 days minimum), prevent employers from altering existing leave policies that are more generous than that.  It would also, and perhaps far greater impact,  redefine full time workers (both exempt and non-exempt) as anyone working 30 or more hours in a week (1,020 hours in a year) ; which has impacts on benefits policies, job classifications, use of temporary workers, and use of season staff among other things.

6.    Family Leave Insurance Act.   Would provide for 8 weeks of PAID leave for any worker taking leave under the Family and Medical Leave Act (FMLA).  Funding for this program still to be formulated.

7.    Employment Verification:  The E-Verify program through DHS expires March 6, 2009, however, DHS has issued regulations saying that since it was funded in their appropriations bill they will continue providing the service, on a voluntary basis, beyond that date.  Comprehensive reform of this legislation is a key issue according to polls (# 3 with the electorate), and it is likely to see debate that would mandate among other things a stricter enforcement mechanism against companies employing illegal aliens.

8.    Health Care reform is going to be a major focus of the 1st year, just as it was a part of today’s inaugural address, and issues include expansion of the State Children’s Health Insurance Plan (SCHIP) which insures anyone under the age of 18 whose parents employers do not provide insurance.   This passed the house yesterday (Wednesday).   Also looking at mandating that health insurance be provided to employees of any prime contractor to the federal government with 300 or more employees and any sub contractor to the government that does more than $10,000 in business with the federal government in a given year.    This is not limited to “traditional” government contractors such as Lockheed Martin and Boeing, but anyone with whom the government does business.  That includes newspapers and television stations they buy advertising from for one example, consumer good companies that provide goods in the militaries commissaries for another, colleges and universities as a third example, and any number of business in between.

The one thing for certain, change is coming, and change is probably overdue.  So I encourage everyone to keep your eyes open and watch for what the next 6 months may do to the HR profession.

Workforce Stimulus Plan

January 20, 2009

As our new President is inaugurated today, we’re all keen to see the audacity of hope converted into the realization of productive change that can restore our economy and put our growing numbers of unemployed Americans back to work. One of the most burning issues for many Americans is what the new administration will do to stimulate the economy through government spending. Our board member, Jared Bernstein, has recently joined Vice President Joe Biden’s staff as an economic policy advisor. You can read some of his thoughts about what an economic stimulus package needs to achieve in his testimony before the House Committee on Education and Labor on October 24th of last year.

While most of us don’t have much say as to where those government dollars will land, we do have choices to make about how to keep our organizations healthy and our employees engaged.  Many organizations worldwide are cutting budgets, including headcount, in an effort to remain viable.  Following are suggestions from our board members and other Workforce Institute stakeholders about how organizations can keep their employees engaged and stimulate workforce productivity, even as they are forced to make tough workforce budget decisions.

Leadership is More Critical Than Ever:

• Get extremely focused on setting and aligning employees around key business goals.   It is critical that everyone in the organization be spending time on those things that matter most for the company’s survival.  Set realistic goals.
• Employees will be looking to their managers to share the pain of wage freezes, reductions of perks, and increased workloads driven by headcount reductions.
• Paying attention to employee engagement as a key business driver is as important now as it is when employees may have more opportunities elsewhere in the market. Our newest board member, CEO Andy Brantley of the College and University Professional Association for Human Resources, writes about how cutbacks are impacting the academic workforce in his blog.

Involve Employees in Business Improvement Efforts

• The employees closest to the work can have great impact on improving revenue and margin opportunities.  Mel Kleiman cites the example of one of his dining clients holding meetings with frontline workers to enlist their ideas to increase profit margins. This client has seen a reduction in food cost of almost 2%. In another case, following an employee resignation, a manager offered a 50 cent/hour raise to the remaining employees if they could come up with a plan to get the job done without a backfill.
• Being assigned to a strategic project is often viewed as a reward/recognition for above-average performance and when these projects dry up, it can negatively impact top performers.  Creating strategic initiatives focused on operating improvements provides learning and recognition opportunities for top performers while driving needed organizational efficiencies.
• Conduct company-wide contests for ideas on how to improve operational efficiency.  If you want to get really creative, turn such an initiative into an American Idol-type format, hopefully without the lunatics.  Winners can receive monetary rewards equal to a percentage of the savings/benefits generated.

Communicate, Communicate, Communicate

• Complete transparency is difficult when individuals’ jobs are on the line, however keeping the lines of communication open about what’s happening in the market and what the organization is doing to respond is critical to keeping employees engaged and productive. In the absence of information, employees will assume the worst case scenario.
• Russell Klosk notes that the debate about whether you let employees know when they are identified as high potential has resurfaced. The majority view on this is to let top performers know they are considered high potential so that they’ll be more invested in remaining with the organization.

Get Creative with Rewards

• One company in the office cleaning business gives a cleaning crew member the vacuum cleaner they have been using to take home at the end of the year. They say the results have been amazing: less theft, better care of the equipment, reduced turnover and more motivated employees.
• Tim Lett suggests team-building efforts focused on helping out in the local community. “We participated in a toy drive in Toronto just before Christmas and it’s amazing how good people feel when they contribute to things like that.  The cost is nil, you get to help a worthy cause and you get people together to work as a team and feel good about themselves.  Executive management participation is critical.”
• Deb McGrath suggests increasing the contribution to stock option plans (so that employees can benefit from the recovery). She also suggests giving employees loans for cars and mortgages. There was an interesting article in Sunday’s New York Times on the latter.
• Reward outstanding performance through public recognition – at meetings, in newsletters, in the CEO blog
• Make available to managers small “gifts of gratitude” to be handed out on the spot to reward and reinforce great efforts – for example: movie tickets, free meal ticket, $5 or $10 iTunes gift card.
• Throw an ice cream or pizza party on all three shifts and have the Executive Team serve to show their personal appreciation

Talent Management is Still Important

• Help employees use the recession as a chance to take on new challenges and build their skills and experience.    It’s a challenge we have to get through, so we might as well use it as a chance to learn.
• Many of the contributors to this post indicated that leading companies are using the current slowdown as a time to invest in employee training – both internally and through encouraging employees to seek outside development. This is an immediate skill building benefit for employees, that can also enable the organization to redeploy or advance employees as opportunities arise.
• Tim Lett cites an airline client with a program where employees can take foreign language classes on their lunch breaks.  Employees seem excited about the opportunity to expand their skills and the company benefits by having a larger pool of employees with language skills to handle international customers or work in international locations.
• Invest in internship programs to build your talent pipeline while providing college students with important resume building opportunities. If the opportunity to learn is good, students will consider unpaid internships.

Creative Labor Cost Management Strategies

• While many organizations are downsizing to trim operating expenses, Russell Klosk cites a recent article in the New York Times by Matt Richtel about the extraordinary length some companies are going to in order to avoid layoffs and hold onto their workforce. Specifically “Cisco implemented a four day shutdown (no pay for anyone). Motorola asked staff to take salary cuts across the board”. Other employers are shifting to 4-day work weeks and trimming benefits. The interesting quote was “Companies taking nips and tucks to their workforce say this economy plunged so quickly in October that they do not want to prune too much should it just as suddenly roar back.”
• Workforce management technologies such as scheduling and analytics can help ensure that employee resources are optimized for the job at hand.  Already stressed managers will benefit from better control over expenses such as overtime and absenteeism while automated scheduling solutions ensure that shifts are covered.  Even better is to implement employee self service options so that shift bidding is handled fairly while accommodating employee preferences.

What would you add to the list above?

Climbing the Hourly Ladder - An Interview with Paul Facella

December 31, 2008

I recently had the pleasure of interviewing Paul Facella, a former Regional Vice President of McDonald’s Corporation and now CEO of Inside Management.  He is author of Everything I Know about Business I Learned at McDonald’s (McGraw-Hill, 2008).   During Paul’s 34 year career with McDonald’s, he learned a lot about growing his own career as well as how to motivate and develop others to do so.  He was kind enough to share some of those lessons during our discussion and in a guest blog he wrote for us (below).

Click here to listen to a podcast of our discussion and read on to enjoy Paul’s blog below.

(Paul’s blog post is presented here as he submitted it to us)

The jobless figures for the U.S. economy in November were the worst in 34 years. With more than 9.5 million Americans now out of work–and rising–many job seekers are wondering if the American Dream is fading. Is it still possible in today’s economic climate to work hard, rise up the corporate ladder, and get ahead?

No doubt about it. As someone with firsthand experience, I encourage you not to lose heart in this tough job market. There are opportunities hiding in some of the least likely places–namely, in the hourly workforce.

Like four out of seven McDonald’s CEOs and three out of four senior-level managers, I started my stellar career climb at the bottom rung–as a crew member. That scenario is as likely today as it ever was.

But there’s a caveat. If you want to grow in a company, you have to find one that has aggressive talent development policies and is committed to promoting from within. McDonald’s, for example, has created more millionaires–including more women and minority millionaires–than any other American company. That’s because the company culture is based on rewards and recognition. If you work hard there, you will be rewarded.

Job seekers who are willing to work for hourly pay initially, want to learn and develop, are ambitious, and have a clear vision of where they’d like to be in three to five years are good candidates for such jobs. But don’t waste your time at the bottom unless you are confident that the company hiring you has your best career interests at heart.

So how can you find out which companies have the right stuff for career advancement? The Bureau of Labor Statistics puts out a detailed and excellent set of guidelines and resources, at http://www.bls.gov/oco/oco20046.htm, for finding out more about a prospective company before you say yes. Do as much homework as possible before an interview so you can be reasonably sure this will be a goal-and-growth-oriented job–not a dead-end job.

In your job interview, ask such questions as: What percentage of your mid- to senior-level managers are promoted from within? What programs and policies are set up for helping high-achieving employees develop new skills? Is mobility at your company limited, or could one apply for jobs for which one qualifies elsewhere in the company?

What types of companies have the peachiest low-end jobs that are likely to lead to bigger and better positions? One rule of thumb is size. Large Fortune 500 companies usually have well-developed promote-from-within policies and are dedicated to career advancement for their lower-end employees. Some of the names that consistently come up, in addition to McDonald’s, are Walgreens, GE, FedEx, Enterprise Rent-a-Car, and LL Bean. Each of these organizations has a track record for fast-tracking low-rung workers, such as store clerks, drivers, and low-end office workers into managerial positions. Also, the US military is well known for recognizing exceptional smarts and talents and promoting promising people quickly.

The take-away message is this: If you’re discouraged about the job market, don’t forget that a great job may be staring you in the face. Bottom-level jobs are not always dead-end jobs. In the right organization, they are a first stepping stone to rich career opportunities ahead.

What was your best hourly job?  What did you learn from it?

Reasons to be Optimistic in 2009

December 24, 2008

If I hear “Brother Can You Spare a Dime” one more time on the radio, I’m going to scream.  One of the fundamental principles you learn when you study finance is that the value of organizations is more than the sum of their actual parts - and that the confidence that investors feel about their future has a big impact on the market value of those organizations.   So, growth and prosperity, as difficult as they are to envision in the current climate, still persist in the future for those who can act on the courage of their convictions.  If you want to read a cogent explanation of what’s gone wrong in the current economy, read this article by Ben Stein.

If you’d like to reflect on a few things that may be going right, I offer a few ideas from our board members about reasons to be optimistic in 2009:

• Ruth Bramson talks about the persistence of philanthropy in this Boston Business Journal letter -Generosity is Still Very Much Alive.
• Deb McGrath feels that people are setting more realistic goals that are achievable.
• David Creelman noted that many people are curbing their consumption, spending more time with their friends and families, and finding more peace in their lives as a result.
• David also noted that recessions can create space for good businesses to thrive.  A slow down gives us time to re-think and re-focus our business for the future.
• Steve Hunt believes that organizations are still pursuing critical talent during the recession, and that they are increasingly willing to support telecommuting as a means of removing geography as an obstacle to attracting and retaining that talent.  You may also want to check out this recent podcast that Steve did with Rich Moran, a partner at venture capital firm Venrock in which they discuss the heightened importance of aligning employee actions with organizational intent in order to manage through the current economic climate.
• Russell Klosk says that in order to goose the economy the government needs to spend money.  That means jobs that benefit from government spending are likely to take an upswing - everything from the approximately 8,000 jobs that are being stood up as part of the TARP sub-agency (within Department of Treasury) to administer the 750 Billion dollar financial services bail out to infrastructure (roads, subways, etc.) where Obama is already talking about spending up to 800 Billion.  He also comments that gasoline prices continue to plunge due to lack of demand in the current economic situation, and as a result the drag on consumers and the economy has lessened significantly.

Me, I’ve worked through multiple economic downturns and lived to tell the tale.  I don’t take the current world situation lightly - I have two children in private college - nor do I believe that wishful thinking alone will drive results.  I do believe, however, that maintaining a spirit of optimism can only enhance thoughtful strategies for managing through tough times.

What do you have to be optimistic about in 2009?

Put Down the Technology and Step Away from the Keyboard

November 24, 2008

Our latest whitepaper, Empowering the Hourly Workforce Through Enterprise Workforce Management, comes to us courtesy of our board member Tim Lett of the Axsium Group.   Tim addresses the importance of engaging employees as part of the implementation and ongoing use of workforce management technology.

Tim’s company helps organizations deploy a wide range of workforce management technology solutions.  While the products they work with may vary, the time tested advice Tim offers is consistent.  Take the time to scope your requirements fully and involve representatives of the relevant stakeholders in your project to ensure project success.  Here are a few tips:

• Involve representatives of the end user community in your pre-implementation requirements gathering.  Incorporate returns related to employee empowerment and self service in the business case for the project.
• You need to have an executive sponsor with sufficient authority to push a project through the normal obstacles to any change effort.  To make that sponsorship work, you need to arm that executive with communications support to ensure that all stakeholders are informed and persuaded to participate and cooperate throughout an implementation project.
• Establish a balanced scorecard of relevant metrics that will be used to measure progress and success over time.
• There is no such thing as over communication during a major change effort.

Read the whitepaper and listen to a podcast of my discussion with Tim to learn more.

> Listen to the Podcast with Tim Lett of the Axsium Group

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