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Author: Nancy Breuer

Posted on November 30, 2000July 10, 2018

Achieving the Best Outcome

If you are in charge of a whole-company relocation, here are some steps youcan take to ensure success:

  • Contact the local economic development organizationearly, advises BarbaraHayes, executive director of the Sacramento Area Commerce and TradeOrganization, or SACTO. At no charge, SACTO brings the Sacramento RelocationCouncil to the relocating company’s place of business, offering anoverview of issues like real estate, temporary housing, and schools. Theyhelp to plan a “no-surprises” move.
  • Customize the move as much as possible for each employee. Fox FamilyWorldwide put Judy Morgan in charge of her fellow Virginia Beach employees’moves, then structured her own move to give her the greatest freedom to keepher colleagues productive and happy. A single mother, Morgan, who now servesas director of program operations, had to sell a home and manage two teenagedaughters who were on their own in Virginia for three months. Fox flew Morganand her associates to Southern California to meet with real estate people tohelp them make decisions about a move, then arranged corporate housing in L.A.for those who did move.

        “They did everything they could to make arrangements for us –corporate housing, rental cars, per diem for eating out. I flew back a fewtimes, which was also appreciated. And they even helped move my dog.” Asthe point person for the Virginia employees, Morgan communicated with themovers and knew where every van was every day, so she could reduce employees’anxiety. “We were launching a new television network, so it was importantto focus on the launch. There was no time or energy to worry about theday-to-day.” Morgan emphasizes how important customizing would be for afamily with greater challenges, such as a disabled child.

  • Prepare employees for culture shock. Morgan had never lived outsideVirginia, and she relied on her faith and sense of humor to help her throughthe difficulties. Still, she could have used a contact person who could orienther to local customs, such as the way public utilities connect (or disconnect)service in L.A. She now laughs about some of the differences, includingfashion trends: “I’ve never worn so much black in my life. Had to getrid of my beige and my cream and my olive.”
  • Address the cultural-diversity issues. Goodman recalls, “Some folksmay have been comfortable about being gay, Latino, African American, orAsian in L.A., but they had real concerns about life in other locations.Transamerica arranged for meetings with political leaders in Charlotte andKansas City such as the mayor and the governor to show that there would be areceptive environment. The Charlotte move succeeded largely because thefirst division to move there was headed by a charismatic African-Americanmanager. He set the tone for the others.”
  • Honor emotions with concrete help. Some employees may benefit enormouslyfrom classes in stress management or career planning, Goodman suggests.”You need to help people face the endings,” he explains. Somelong-term Transamerica employees “were very angry. They thought the dealwas security and retirement.” Transamerica’s classes for managers intransition management helped, as did a course in coping with change foremployees.
  • Stay in touch through the process. Glennon, of Lucas Digital, believesthat employees should be kept up-to-date on what’s happening with themove. His company has made sure that messages to employees coincided withthe company’s becoming a finalist for the space, its final selection, andits signing of the lease. Mitchell sends weekly e-mail updates and holdstown hall chat sessions.
  • Involve the stakeholders. Expecting employees to maintain productivity meanskeeping them involved and informed. Glennon’s observation of other companiestells him that too often, the stakeholders are not adequately involved, andtheir insights are lost. At Volvo, frequent communication is the road map, andMitchell isn’t afraid to ask directions. “If we don’t know something,we admit it, and tell the person when we’ll know it.”
  • Overestimate the time the move will take. What would Craig Heide change ifhe were making a whole-company move again? He’d allow himself a moregenerous time line than 11 weeks. Glennon advises that if directing thecorporate move is a job add-on for you, budgeting your time in line with thetimetable for the move is your major challenge.

Workforce,December 2000, Volume 79, Number 12, pp. 60-61 SubscribeNow!

Posted on June 1, 1999July 10, 2018

A Day in the Life of Rick Westbrook HR’s Internal Consulting Approach at DHL

Monday, May 10
Los Angeles


A gaping Boeing 727 cargo plane sits about 25 yards from Rick Westbrook’s desk at DHL Airways’ Los Angeles Gateway facility at the Los Angeles International Airport (LAX). From Imperial Highway, the auto-bound person’s approach to the building, an arriving plane’s wingtip seems almost to clip the structure. Work at this facility is governed by arrivals and takeoffs and time-sensitive deliveries, 24 hours a day and 365 days a year.


Inside, parcels from around the globe move through the hands of an equally diverse workforce as announcements blare from a public address system that reverberates from the high warehouse ceiling. Arriving guests must surrender their drivers’ licenses to acquire a visitors’ badge because of Federal Aviation Administration rules, an introduction to a workplace where the FAA, the U.S. Department of Transportation and U.S. Customs all set some of the rules. And they do check visitors’ badges.


As the senior HR person at LAX Gateway, one of seven DHL Gateway facilities in the United States, Rick appears to be in his element. His meetings are like refueling stops: short and busy, with a lot of information exchange and Rick’s clear, careful repeating of the key points at the close. He’s completely involved in every exchange, but when the meeting is over, clear the runway.


9:00 a.m.
Rick’s been up since 6:30 a.m., logging on to MSNBC as his coffee is brewing to check local and international news, and to see how his investments are doing. Rick is acutely aware that events anywhere in the world can have direct impact on the company.


At DHL, HR is a strategic business partner, and Rick makes it his business to know the world news as one of his HR skills. He plans his day, including whatever trades he may want to make during his lunch break, grabs his cereal bar and yogurt and is out the door for a half hour in Los Angeles traffic and arrival just before 8:00. He had been out of town last week, so on Friday he stayed at the office until 8:30 p.m. responding to mail and signing paperwork so he could start fresh on Monday.


Today he leaves the office at 9:00 a.m. to drive north up the San Diego Freeway (Interstate 405) to Van Nuys for a sales meeting at one of his five field-service offices. At 10:00, he’s ready for the sales meeting. The field service office receptionist gives him a warm welcome, and we settle in.


10:00 a.m.
Rick’s come to the field-service sales meeting to present the new “Drive to Deliver” program, an employee reward plan for extraordinary effort, good ideas and safe driving. His overheads, completed during his first hour at work this morning, reflect his pride in delivering a new reward program based on employees’ previous requests.


This year’s program redesign is based on an employee satisfaction survey, a feature Rick highlights. He closes his informal presentation by pointing out that the revised program is part of HR’s effort to align the culture with DHL’s strategic direction. Members of the sales staff, a productive, wisecracking crew of seven, appear pleased with the program changes.


Less than 15 minutes after it began, the sales meeting is over, and several agents remain with questions for Rick. They want to know when DHL will offer an insurance program for retirees.


Rick responds to them with empathy and honesty: It won’t be in the near future. DHL is financing a new hub and seeking to replace some of its older planes with Airbuses®. Those are the financial priorities. The agent who asked gets the 800 number for the retirement funds manager.


Rick fields questions about retention of sales staff and the cost of turnover, describing those issues as concerns that were expressed at the most recent regional meeting. He also writes down the questions and suggestions, promising to carry them to the senior vice president of human resources.


10:40 a.m.
Rick and the sales manager discuss the draft of a letter terminating an employee who has been out on disability leave for a year, agreeing not to send the letter via DHL so they can avoid getting couriers involved in the case.


10:50 a.m.
An employee has asked to meet with Rick at 11:00, so we wait in the open warehouse where DHL vans load and return. Rick describes how the employees’ concerns come to him directly because of HR’s open-door policy. During a training session Rick led recently, he learned that a couple of employees are frustrated with their supervisor. He wants to strategize with them about solving the problem.


Consulting—making recommendations rather than issuing orders—is the part of his job that Rick enjoys the most. He seems so well-suited to this work that his pleasure in it is unforced. More than once during the day, he says, “I find inspiration in my job.”


As a senior human resource generalist, Rick is a corporate employee, reporting to the senior HR manager at network transportation in Cincinnati, with a dotted line reporting relationship to field services in Tempe, Arizona. Within DHL, human resources is only four layers deep: HR representatives, senior HR managers, director of HR and senior vice president for HR.


Rick has worked for progressive organizations that developed HR staff and gave them respect. His career ambition is either to become the senior HR person at a company like DHL or to consult, with a focus on employee relations, investigations and recruiting. “The jobs I’ve had the most reward from are those in which I’ve learned the most from my boss,” he explains, citing an early mentoring relationship with an HR professional who recognized his talent when he worked in retail during college acquiring his degree in business administration.


And there’s been no career floundering for Rick: His first job out of college was as an HR assistant, and he’s been in the field ever since. He’s now 36. “I work in a diverse environment as an internal consultant. I love my job.”


He has quarterly performance goals that must be achieved, goals set during quarterly one-on-one meetings with his manager. As we move through his day, his actions clearly reflect ongoing awareness of those goals. Rick can wait when necessary, but his gears don’t include reverse.


11:50 a.m.
At last, the meeting with the concerned employee. At first, the employee suggests that he’ll just confront his boss. But Rick realizes that the boss intimidates the employee. “Okay, then that’s not the solution.” He asks the employee to put his concerns in writing and plans an alternate course. Meeting’s over.


12:00 noon
We head south on the freeway back to the LAX Gateway, Rick checks his voice-mail, then we head off to lunch and talk about his reading. He prefers to read business-related books—most recently he read Successful Manager’s Handbook: Development Suggestions for Today’s Managers, written by Brian Davis (Personnel Decisions International, 1996). He finds chapters that he can recommend to managers in his consulting role with them, and relishes the developmental gains they achieve when they follow through.


For his own development, Rick appreciates the choice DHL offers him from a catalog of courses. This Friday, he’ll take Fundamentals of Microsoft Excel®, with the goal of eventually providing all the mandatory training in that application for his region.


“Training is one of the reasons we have such strong leadership and such an effective organization,” he explains. I’m becoming a believer. Next he’ll read Managers as Mentors: Building Partnerships for Learning by Chip R. Bell (Berrett-Koehler Publishers, 1998). He eats this stuff up.


2:00 p.m.
Rick needs to meet with Lorna Martinez, import supervisor, to discuss a pending court case the company plans to appeal. Finding the key to the small conference room takes several minutes (only Security seems to have it), and as planes drone overhead, they agree on next steps. Total meeting time: 5 minutes.


2:50 p.m.
We begin a tour of the Gateway, and Rick drops in on a supervisor who has an issue to discuss. They chat briefly about keeping the supervisor’s door locked because of some recent evidence of unauthorized weekend visits to non-business-related Web sites.


2:55 p.m.
Rick runs across an employee who has married recently and wants to know when she can enroll her spouse on the company’s health plan. She has the information packet, but acknowledges that she hasn’t read it.


He tells her that she has 30 days. As they talk, it becomes clear that today is day 29. When she walks away, he reports empathetically that she can’t afford to miss that deadline and have to wait a year, so he’s glad he met up with her. I’m struck by his genuine concern.


3:00 p.m.
We finish touring the facility, crossing paths with employees who all seem to know Rick, and although 300 people work at LAX Gateway, he seems to know all their names.


3:20 p.m.
Rick checks voice-mail and explains that the papers in his in-box are there because they require his review and signature. That will consume the last hour or two of his day, and is his least favorite function. He’s managed to avoid the administrative detail by supplying field service offices with brochures and forms.


I notice that his office is remarkably uncluttered. The pictures of nieces and nephews that adorn his credenza don’t have to share the space with papers.


I ask him what challenges he faces as an HR professional. “To get employees to think internationally. We need more internal marketing on that issue,” he says. “Employees need to learn how volatile the international scene can be.”


His second concern is about the pending union vote among the airplane mechanics. “That one issue can absorb a day easily.”


4:00 p.m.
Rick calls his 4 p.m. telephone appointment—the colleague of this morning’s concerned employee—and he reaches voice-mail. We review his quarterly goals, which are remarkably detailed. “This is the most accountable I’ve ever been in HR. It’s neat.”


4:20 p.m.
His 4:00 appointment calls back. Rick advises the employee on meeting with his supervisor, stressing the importance of writing down his concerns so that he doesn’t get off track during the conversation. After the call, we return to the discussion of HR accountability and how it creates a context where Rick and his colleagues can thrive.


5:00 p.m.
The week’s “slow day” is over. Rick typically heads for the gym, makes a healthy dinner of chicken breast, rice and steamed vegetables, reads, watches the evening news and calls it another productive, positive day. The man loves his work. Clear the runway.


Workforce, June 1999, Vol. 78, No. 6, pp. 82-87.


Posted on May 25, 1999July 10, 2018

Plans Differ in Cost, Coverage and Convenience

What are your choices for health care plans these days? Most are familiar, but at least one is new. Here are the primary characteristics of each:


Health maintenance organizations (HMOs):
These plans offer a predetermined set of benefits for a fixed cost to the employer. They usually emphasize preventive care, and frequently there are minimal or no co-payments and no deductibles. Because the HMO absorbs the costs of any treatment that exceeds the premium, some employees may associate HMOs with media stories about refusal to cover a particular costly treatment. There are excellent HMOs and poor ones. Ask colleagues about their experiences.


Managed care:
According to the Health Insurance Association of America in Washington, D.C., 70 percent of Americans whose health coverage is through their employer are enrolled in managed care. The attraction for employers is that managed care allows employers to control costs far more effectively than in indemnity plans, where employees can see any doctor they wish. In managed care, each enrollee typically is assigned to a primary care physician who becomes the gatekeeper to all specialists in the plan. In a managed care plan, the employer contracts with selected providers for a comprehensive set of services to enrollees. Enrollees have financial incentives to use the providers covered by the plan. HMOs can be considered as managed care if there is a provider that decides which specialists a patient sees. PPOs usually aren’t considered as managed care-partcipants go straight to a specialist instead of through a primary care provider.


Preferred provider organizations (PPOs):
These are groups of hospitals and providers who form an organization and contract with employers to provide health care at a discounted fee. Employees enjoy that fee only when they obtain services from a PPO member provider or hospital.


Point of service plans (POSs, also known as fee for service):
Employees who select these plans want the full range of choice of providers and hospitals. Usually the employee is responsible for a deductible and a co-payment. Point of service plans are the most expensive option in health care plans. Often, if a group of employees insists on a POS option among the plan choices, the premium the employee pays is much higher than the premium for an HMO, managed care or PPO option.


Physician practice management companies (PPMCs):
This is the new kid on the block, created by health care providers who dislike the constraints on them in other types of plans. According to Davis Fansler, San Francisco-based consultant to Towers Perrin in New York City, PPMCs are building their strategies to become fully integrated medical groups that deliver care more cost effectively. They’re still in the capacity-building stage, but their goals include marketing services directly to employers.


Workforce, January 1999, Vol. 78, No. 1, p. 90.


Posted on May 25, 1999July 10, 2018

Health Care Help Is Out There

Health care coverage options are tricky. Luckily, there are plenty of resources available to help. Below are a few.


State Insurance Commissioner’s Office:
Contact this office for lists of mandated benefits in your state.


Benefits consultants:
They can help you navigate available health care plans. Among the best known are William M. Mercer Inc., Towers Perrin, and KMPG Peat Marwick. An especially helpful tool is William M. Mercer’s “International Benefit Guidelines,” an annual report on insurance practices worldwide, sorted by country. The study can be found at Mercer’s Web site in the “Resource Center” under the “Publications” listing.


Chamber of Commerce:
Especially for small businesses, the local Chamber often has groups of employers who’ve been through similar experiences.


Health Insurance Plans of California (HIPC):
HIPC is a coalition of insurers that gives Community Partners employees a choice of 12 to 15 HMOs and a POS (point-of-service) option. Call 800/HIPC-YES (800/447-2937).


Health Insurance Association of America (HIAA):
This organization’s Web site provides HIAA booklets. Go to Consumer Information. Call 202/785-3910 for copies, or print them from the Web site.


HIAA also recommends these sources of information:


Managed Care: An AARP Guide
American Association of Retired Persons, Washington, D.C., 202/434-2277


Choosing Quality: Finding the Health Plan That’s Right for You
National Committee for Quality Assurance, Washington, D.C., 800/839-6487


Consumer Coalition for Quality Health Care
Washington, D.C., 202/789-3606


Workforce, January 1999, Vol. 78, No. 1, p. 86.


Posted on May 18, 1999July 10, 2018

Should You Outsource Payroll

Issue:

Your manufacturing plant doubles its number of employees from 75 to 150 after adding a second shift. The workload of the person who handles your company’s payroll has just doubled as well, and you are considering contracting with an outside vendor to handle the increasing payroll duties. What are some of the advantages and disadvantages of outsourcing your company’s payroll? What criteria should you consider when choosing an outsourcer?


Answer:

There are several factors that might influence a decision to outsource payroll, including the costs associated with doing payroll, the complexity associated with the payroll department, and management’s desire not to keep an “in-house” function that does not relate to its primary business goals. Or, as illustrated in this example, your company may have grown large enough that it has become difficult to process payroll.


Advantages:

Outsourcing your payroll function may have the effect of reducing head count, reducing costs, eliminating hardware and leasing or buying costs, and reducing interfaces with other internal systems. Outsourcing the payroll function can also leave management alone to concentrate on its priority business activities.


Disadvantages:

Disadvantages include a loss of flexibility in using and managing data, a loss of control over the payroll function, a loss of control over costs, lack of an employee technical staff, and the potential lack of responsiveness to the employer’s needs.


Criteria for choosing an outsourcer:

When selecting an outsourcer, consider the following:

  • Does the corporate culture of the vendor compliment that of your company?
  • What is your impression of the vendor’s employees and workplace?
  • Do you have a sense of mutual trust?
  • How stable is the outsourcer?
  • Is the outsourcer flexible so that it can react quickly to your changing needs?
  • Is the outsourcer forthcoming with information?
  • Is the outsourcer’s technology adequate?
  • How does the outsourcer report mistakes or problems to you?
  • Will the outsourcer come to you with innovative ideas and technology options?

SOURCE: CCH Inc. is a leading provider of information and software for human resources, legal, accounting, health care and small business professionals. CCH offers human resource management, payroll, employment, benefits, and worker safety products and publications in print, CD, online, and via the Internet. For more information and other updates on the latest HR news, check its Web site at http://hr.cch.com/.

Posted on January 1, 1999July 10, 2018

Prevailing Winds Lessons from Viagra

Workforce talked with Lynn Franzoi, senior vice president for benefits at Fox Inc., an experienced benefits negotiator based in Beverly Hills, California, about the climate for the debate about what health care should cover. Fox Inc. was a 1997 Workforce Optimas winner because of Franzoi’s creativity in benefits management. She made these points about lessons from the Viagra story:


What’s your greatest challenge in providing health insurance coverage to Fox employees?
Employees often expect that everything they medically want or need will be covered. A pregnant employee whose physician prescribed vitamins not covered on the Fox plan declared that for its refusal to pay the $10 per month, Fox could cause her child to have birth defects. I asked her, ‘For $10 a month, you would take that risk for your child?’


Recent research suggests that many people have no idea what their employer-sponsored health care costs. Is that your experience?
Employees often understand the total cost of their health care coverage for the first time only when they leave the company and receive their COBRA paperwork. Most often, they believe that their payroll deduction, deductible and co-payments represent the total cost of the plan.


What expectations of health care coverage have you seen that you consider out of bounds?
Employees often expect the employer to cover the costs of personal decisions. Employees who travel internationally for personal reasons to countries that require vaccinations against such diseases as yellow fever may expect their employers to cover these costs. Fox offers a medical evacuation policy for $18 a day for 10 days; employees expect the employer to pay for this, as well, despite the choice to travel and the minimal cost of the insurance compared with thousands for medical evacuation.


What other trends have you been seeing?
Employees will request highly advertised treatments. Employees at Fox did ask for coverage for Viagra. Fox’s decision on Viagra, birth control and infertility treatments is that they’re not medical necessities, so they’re not covered.


What about cosmetic surgery?
Not covered, unless it’s to correct a disfiguring injury that occurred while the person was covered under the plan. We do pay for breast implant after mastectomy, or surgery to correct a birth defect that impairs a bodily function.


What about treatment for obesity?
It’s not covered. That’s a pretty standard decision in health plans. It goes to the question of where you draw the line. We can’t mandate behavior change.


What’s the principle at work in these decisions? What could make you change your mind about one of them?
If we had a lot of requests for a particular treatment, we would seek expert medical review of the pros and cons. Cost and efficacy are the major factors. For example, often we will decide to pay for an uncovered treatment if it is cost-neutral, but the potential results are greater than the standard treatment.


In the mid-1990s, we covered drug implants for CMV (cytomegalovirus, a condition often associated with AIDS that can lead to blindness). The alternative was infusion, which often led to kidney failure and the need for dialysis treatment. It was an outpatient visit, the drug was free because it was experimental, and we faced only the cost of the anesthesiologist and the facility. The outcome was much better for the patient, so we covered it. That’s how we decide.


Franzoi constantly looks for ways to remind employees that an employer can’t possibly pay for every perceived health need, that they must absorb some of their health care costs-especially when those costs reflect personal decisions-and that, like financial well-being in retirement, wellness during working years is a personal responsibility. But the winds seem to be against her.


Workforce, January 1999, Vol. 78, No. 1, p. 87.


Posted on December 1, 1998July 10, 2018

The Power of Storytelling

After a cross-country flight one rainy evening in July, my husband and I stopped on the way to Cape Cod at a well-known family restaurant outside Boston to have dinner. When we arrived, a harried greeter seated us near the kitchen.

While waiting for someone to take our order, we noticed that the waitstaff looked sweaty and disheveled, and the patrons seemed to be impatient. Our waitress mumbled something about the manager doing the cooking because the cook had failed to show up.

We weren’t in a hurry. Being optimistic, we waited.

Soon, angry patrons appeared at the kitchen entrance, asking when their orders would be ready. We couldn’t recall having ever seen that before. As the buzz in the store grew louder, one portly patron marched into the kitchen with his plate and yelled: “This pot roast is s___!” He then scooped handfuls of mashed potatoes and pot roast and threw them — overhand — at the manager. Back at his table, his wife tried to disappear into the vinyl banquette. We knew we hadn’t ever seen that before.

We canceled our dinners. Our waitress could only say, “I don’t blame you,” as we left the restaurant, still hungry.

We now tell the story to friends as a sign of America’s breakdown of civility. But what if we were restaurant managers? We would use that story to illustrate the importance of the staff working together — and what could happen if they didn’t. We would use it to illustrate a powerful image of everything going wrong and ask employees to think of ways to head off a similar disaster in one’s own restaurant. We would turn the story to our advantage by using it to teach employees about teambuilding.

Storytelling in the workplace is a dynamic strategy for empowering employees to understand and embody an organization’s core values. Leaders at all levels can learn how to use storytelling to educate, inform, motivate and inspire their employees.

Storytelling can impart the corporate culture and values.
Chris Dunblazier, who is in the restaurant business, says, “Storytelling is the most effective way to show what happens if you don’t do [something] the right way, and what happens if you do. Stories stick in a person’s mind.”

Dunblazier, director of operations at Souper Salad in Oklahoma City, has worked for the company since its inception 15 years ago. During the first 12 years, Souper Salad, a privately owned restaurant chain based in San Antonio, Texas, opened 50 stores. (Fifty more have opened in the last three years, and there will be about 200 more by the year 2000.) In her region alone, Dunblazier will open 20 stores next year.

In the face of such rapid growth, regional directors of operations and the company’s officers need to impart company culture to large numbers of new hires very quickly. She explains, “We expect stories to come in handy.”

One story Dunblazier shares explains why the company insists on uniform appearance standards, especially among store managers. “Once I had a call from a general manager who told me, ‘You won’t believe this, but our manager, John, just walked in here in full makeup, in uniform, with long red fingernails.’

I consulted with HR, then explained to John that he was free to wear whatever he wanted outside of work, but the restaurant doesn’t even allow heavy makeup for women employees, and no restaurant employee can have long fingernails at work. I told him that anything that makes a guest look twice at the manager is not a good idea. The next day, John didn’t have the nails, and had just a small amount of eyeliner.

Months later, I was wearing my corporate shirt on a flight. I found myself seated on the plane beside a visitor who told me he’d gone into one of our stores once and an employee — he was pretty sure it was the manager — had been in full makeup. He said he’d never gone back.”

When Dunblazier tells this story, she hopes that it will remind an employee to think twice about wearing a particular “look” at work. Could this story help employees make decisions consistent with the company’s appearance standards? Could it help them understand why the appearance standards exist? Employees will know that those decisions matter in the company’s overall goal of increasing guest counts.

Stories can build an organization’s identity. “Anyone who has had an experience has a story to tell and, with some coaching, has the capacity to tell it,” Kaye believes.

Stories like Dunblazier’s can shape an organizational culture and build an organization’s identity, according to Beverly Kaye, organizational consultant and author of Up Is Not The Only Way (Consulting Psychologists Press, 1997). Kaye has worked with numerous Fortune 500 companies on using stories to convey a company’s corporate culture. “Anyone who has had an experience has a story to tell and, with some coaching, has the capacity to tell it,” she believes. Leaders, she adds, can learn to tell stories and can be taught to be more effective. Kaye often finds that they warm to the experience because storytelling gives them a forum they otherwise wouldn’t have. She also believes the telling is as good for the teller as it is for the audience.

Kaye offers a dramatic example of a business leader who told employees the story of his own episode of acute stress and depression.

“Many in the organization knew about it, but not how it happened or why. He told it to a group of ‘high potential’ employees with such honesty and such detail. He described how he had been driven to the point of the episode, what acute stress and depression was like, what it took to recover and how he runs his life now as a result.

When I asked if he had heard that story from someone else when he was in his 30s, could it have prevented his episode, he said yes.

‘This is my legacy,’ he explained. ‘To tell them, warn them, help them avoid it.’”

Will the 30 year-old “high potential” who is tempted to go into overdrive remember that story? A high potential forgets it only at his or her own peril.

Kaye calls stories “devices for creating and maintaining a widespread understanding of the subtle cultural and political realities underlying a specific organization’s life.” One of those political realities is the risk of driving oneself too hard. How can a story help someone avoid doing that?

Kaye explains that we can “view our lives as a movie rather than a slide show, seeing connections among actions and significance in experiences.” Remembering the story helps people “watch” the movie of their lives inside their heads, casting themselves in the role portrayed by the storyteller.

Storytelling can help employees accept a new initiative.
When HR needs to facilitate acceptance of a new initiative or program, telling a story can help people imagine what the workplace will be like after the change — not something that many people do very easily.

Managers at TRW’s Space and Electronics Group (S&EG) in Redondo Beach, California, tell the story of competing for the contract to build China’s first satellite. By doing so, they’re selling employees on the benefits of TRW’s Workforce Diversity Program.

In 1994, TRW bid for a satellite contract with the People’s Republic of China’s National Space Program Office (NSPO). The successful bidder would build the first Chinese satellite.

Chinese-American TRW employees organized themselves into a Chinese Employee Network Group, and assumed a major role in making sure that the proposal was compliant and culturally coherent, according to Lou Rosales, then HR manager for TRW. Chinese-American employees who were skilled in speaking Mandarin, and reading and writing Chinese, took a leadership role in representing TRW to the customer. They helped develop the proposal and reviewed it before submission to NSPO. They videotaped an executive summary of the proposal, explaining that the group also would be working on the satellite development team.

Well into 1995, after TRW had won the bid and was developing the satellite, members of the Chinese Employee Network Group reported that the customer’s comfort with the proposal and development teams contributed strongly to the success of the ongoing project. Rosales reports that their achievement spurred other Employee Network Groups based on a workforce diversity variable such as country of origin.

The story continues to be told as managers recount TRW’s Space and Electronics Group’s success in entering the Asia/Pacific market.

TRW also has other ways of explaining its workforce diversity program. Through the organization’s newsletter, Infolink, employees read the following: “Because of growing global opportunities and declining domestic defense markets, S&EG is now competing in the international marketplace. One major reason for the company’s success so far is the involvement and contribution of a diverse group of employees who often reflect the diversity of our new customers.” How much more power does that statement acquire in the context of the Chinese satellite contract story?

Since that experience, TRW also tells the story of the successful bid for the Korean Multipurpose Satellite, relying on a proposal and development team that was comprised of — well, now you know.

Storytelling can create a shared vision of the company’s future.
Another story comes from the history of Celanese Corporation, before its merger with American Hoechst to become Trevira, based in Houston and now known as KoSa.

In the early 1980s, Celanese began a cultural transformation using the Japanese quality awareness program that was influencing American businesses at the time. Celanese was working on adapting quality awareness to suit its own culture. That process allowed what HR department manager Tom Holmes calls “the genesis of a vision.”

Holmes’ story of Macomber is a story of visionary leadership energizing and empowering the corporation’s employees. Corporate values now include the profound commitment to excellence that the story reflects.

At a high-level meeting, the corporate director for quality was meeting with the operating officers. John Macomber, the CEO of Celanese, was in the room. The presentation by the corporate director for quality focused on approximately 20 areas where progress was being measured.

Macomber leaned back in his chair and posed what became this famous question: “We’re at a stage where we’d rate about a three on a scale of 10. But I’m not as interested in where we are as in where we’re going. What I’d like to know is what 10 out of 10 would look like.”

Everyone acknowledged that it was a great question, and the corporate director for quality promised that he and the directors for quality management would develop an answer.

That answer came back as a “quality document,” now known as the “Ten Out of Ten” document. “‘Ten Out of Ten’ became the statement of the corporation’s cultural goals, a vision of excellence for what our organization would look like,” Holmes explains. “It was enormously powerful; it galvanized people to close the gap between where we were and where we were headed.”

Celanese surveyed all employees, rating progress on each point, in a process of 360-degree feedback for the entire corporation. Holmes is convinced that “things moved much more quickly than if Macomber had lectured.

“The statement empowered employees,” Holmes continues. “The document — and the story of Macomber’s question — held sway for a couple of years. Then in the merger with American Hoechst, it became embedded in the Hoechst Celanese values statement.” The story of the CEO “earning his pay that day” by asking such a powerful question remains alive at the new company.

Holmes’ story of Macomber is a story of visionary leadership energizing and empowering the corporation’s employees. As long-term employees have told others the story, it has conveyed the company’s cultural shift to quality improvement. Corporate values now include the profound commitment to excellence that the story reflects.Kaye explains that the Macomber story describes a “visionary leader who creates completely new stories to inspire transformation in organizations.” According to Kaye, the story is a good example of a leader using “words to convince others of a point of view, and the story is the best way to convey the point.” She also notes that leaders can use stories “to revive neglected or existing themes that need to be communicated.”

Orchestrate the story to convey a meaningful message.
A good story is hardly complicated. Significant experiences can easily be translated into a memorable lesson.

First, the teller describes a situation. (“The corporate director for quality was meeting with the operating officers.”) Second, he or she describes the action. (“Macomber leaned back in his chair and posed what became this famous question.”) Third, the teller describes a memorable resolution. (“‘Ten Out of Ten’ became the statement of the corporation’s cultural goals, a vision of excellence for what our organization would look like.”)

People are going to talk. By understanding and using the power of storytelling, HR can influence managers to frame the discussion into stories that will accomplish the company’s goals. Try it when the cook quits and the customer throws pot roast. Frame it so it’s useful. It will make a great story.

Workforce, December 1998, Vol. 77, No. 12, pp.36-41.

Posted on December 1, 1998July 10, 2018

Employees Will Tell Stories — Send the Right Message

What do you do when stories run counter to the company’s core values? Could you harness them to make them useful? What kinds of stories are circulating in your workplace?

Employee Disempowerment
We recently replaced our windows, which were about 30 years old. The new windows have cranks that allow you to roll the window out to open them. The president of the company collected all the window cranks and announced that he would hand them out on days when it may be appropriate to open a window. All cranks had to be turned back in to him personally at the end of the day. This is done by the president of a multi-million dollar company owned by a multi-billion dollar company!

The lesson: Employees watch how you spend your time and prestige.

Discouraging Creativity
Working as an engineer for a major defense manufacturer, I was summoned to the factory to deal with a problem involving a critical part of one of our defense systems. The problem had existed before, prior solutions had been tried without success, and production came to a halt. This was important, as there was a penalty clause in the contract.

I went home weary. That night I took my wife out to a movie, during which a unique approach to solving the problem came to me. We left the movie, drove to the plant, and I went in and marshaled the second shift (it was 11 pm) to try the new approach. It worked and solved the problem once and for all. The next day I was chewed out by my supervisor for entering the plant and working without prior authorization.

The lesson: Solve problems at your own risk.

Whose Idea Was This?
I work for one of the nation’s leading insurance providers. We have a large campaign for customer service. One planned event required us to dress up in NASCAR (National Association for Stock Car Auto Racing) attire. I never understood how that would increase customer service, since we had no ties to NASCAR whatsoever. The event was canceled because there was a customer visiting that day. I don’t know; I just work here.

The lesson: Send a consistent, clear message.

Devaluing Employees
Several years ago, I worked for a large credit card company. One day a very sick person put a bomb in the basement cafeteria. We never learned how this person got into the building, so we think it must have been an employee. Upon receiving word of this bomb, upper management immediately left the building. While leaving, they instructed the security guard at the entrance to let no one in or out.

The security guard, taking his instruction very seriously, refused to let any of the middle management or employees out of the building, and refused to let the police and fire department in! He had to be arrested and removed. Adding insult to injury, the police and fire department wouldn’t let middle management or employees out either, citing the need to interview all who were on the premises. While this interviewing process was going on, the bomb squad was defusing the bomb — inside the building!

Once it was defused and everyone was interviewed, we were allowed to leave. The next day, some very quick-witted individual put out a tongue-in-cheek memo on bomb evacuations. It was very clever, citing how to step over management and what windows to exit from following the blast. Unfortunately, someone let the cat out of the bag. The author was found, then fired for bad-mouthing the company. We were ordered never to speak of the incident again, and were told that speaking to the media would result in immediate discharge.

The lesson: Whose life has value in this company?

Workforce, December 1998, Vol. 77, No. 12, p. 38.

Posted on June 1, 1998July 10, 2018

Tips for Re-integrating Employees

When people want to return to work after battling a serious illness, the last thing they need to do is battle negative workplace policies, practices and attitudes that could be changed with HR’s proactive attention and help. Following are five of the most important steps employers should take in making the transition stage for returning workers more successful.


  • Communicate with existing and prospective employees in plain English (or plainly in the languages your employees use) about what the policy does and doesn’t allow. Most people don’t “speak insurance” and don’t understand the “explanation of benefits” published by insurers.
  • Spell out the provisions of your disability insurance coverage with the “return-to-work” phenomenon in mind, so that prospective employees and recruiters who interview them can know right away how to calculate their risk.
  • Make sure employees know about the provisions of the Family and Medical Leave Act (FMLA), which provides for up to 12 weeks of unpaid leave to deal with a personal or family medical crisis.
  • Educate employees about people returning to work after battling a life-threatening illness, explaining why they pose no threat to anyone else’s health. Of course, never disclose the specific diagnoses of any individuals. This should be part of your general education and training of employees.
  • Think about your attitude before you ask about that gap in the candidate’s employment history. Are you able to welcome back into productive worklife a person who has faced down a life-threatening illness—and won? What’s the attitude toward returning to work from disability leave among your interviewers and recruiters? Will they deny you access to this skilled, highly-motivated labor force?

Workforce, June 1998, Vol. 77, No. 6, p. 106.


Posted on June 1, 1998July 10, 2018

Why Returning to Work After Battling AIDS Carries Special Baggage

Battling and beating any life-threatening illness is a tremendous accomplishment. However, those people who have stared down AIDS and won often have additional demons to battle. AIDS carries with it a certain stigma that other illnesses don’t carry, making it much more difficult for people who’ve fought AIDS, and lived to tell about it, to return to work.


Cornelius Baker is executive director of the National Association of People with AIDS (NAPWA) based in Washington, D.C., whose mission is to advocate for people living with HIV and AIDS. Baker explains: Suppose a prospective employer asks an applicant about a three-year gap in employment history. A person with cancer might reply with a story of chemotherapy and radiation, spending time with family during what were thought to be the remaining months, and preparing to die. The candidate would describe unexpectedly recovering from the illness, re-engaging in life, setting new priorities and finally wanting to return to work. Most HR people would see that as saying something about character. In many workplaces, the agency would plan time for the person to work back in.


Baker doubts that in many workplaces, the scenario would play out the same way for a person returning to work from an AIDS-related disability. His doubt arises from the experience of his organization’s members and from the following issues:


  • While the cancer patient is likely to be seen as a hero, the returning person with HIV or AIDS may re-introduce troubling issues to a workforce.
  • Neither cancer nor heart disease arouses fear of contagion among co-workers.
  • Most co-workers wouldn’t respond to news of other diagnoses with the intrusive, moralistic question, “How did you get it?”
  • Most people aren’t afraid to provide first aid to someone with cancer or heart disease.
  • Co-workers are unlikely to refuse to share work spaces or equipment with a person returning from another illness, yet those refusals still occur with HIV/AIDS, even in 1998.
Baker stresses that “once [a person with HIV] enters a workforce, we have to be as competitive as others. People with HIV don’t get any special breaks. But we don’t expect any special disregard either.” He defines “special disregard” as being viewed as a threat to others. “Special disregard” is an especially daunting prospect for someone who seeks to reclaim a full life after facing death, and sees how warmly others returning from their own private medical agonies are welcomed.

Employers can improve the chances for success of a person returning to work with HIV/AIDS by making sure that co-workers understand that HIV/AIDS doesn’t threaten anyone else’s health. Improve the chances even more by giving everyone returning to work with HIV/AIDS an informed mentor or support person who will ease the transition.


Workforce, June 1998, Vol. 77, No. 6, p. 108.


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