Category: Archive

For years Circuit City used classroom training to get salesreps up to speed on new products and technology. But by the late 1990s, theclassroom model wasn’t fulfilling the company’s increasing training needs,says Bill Cimino, director of public relations. “Associates would be out ofthe store for a week to train, and by the time they got back and started to feelgood about what they’d learned, the technology would change again,” he says.They needed a faster, more flexible solution, so the training department beganexploring e-learning.

In late 2000, with the help of DigitalThink, they rolled outa company-wide custom e-learning program, and within a year, Circuit Cityemployees had completed more than 1 million courses. Cimino attributes the earlyhuge success of the program to two significant factors: tracking andcertification.

To ensure that the training is effective, the trainingdepartment tracks every user’s performance in the courses and on the floor.”We know, by associate, who takes what training, how much time they spend in acourse, how they scored on the tests, and how they are performing on the job.”DigitalThink and Circuit City’s training department use the data to evaluatecourse effectiveness and constantly improve the offerings. “E-learning has tobe organic,” Cimino says. “It has to grow with the company and change asemployees’ needs change.”

To reinforce the training on the job, many of the new productcourses feature “try it” exercises, in which associates are instructed to gointo the store to identify certain features on a product or to demonstrate theproduct for a manager who then signs off on the lesson. “The ‘try it’exercises are an example of our corporate culture,” Cimino says. “This isnot just a place to work, it’s a place to learn.”

To further tie training to performance, Circuit City rolledout an e-learning certification program in 2002. Product lines are now tied tospecific certificate tracks, and in order to sell those products, associatesmust first complete the learning for that track and pass the certification exam,Cimino says. The more training they take, the more products they can sell. Forexample, if associates are trained on Sony’s new digital camera, they can workin that area of the store, but if they have the full technology certification,they can work anywhere and sell anything, he says. “It’s a win-winsituation.” Because associates work on commission, the more products they cansell, the more money they can make.

The combination of tracking and certification is enough toinduce most Circuit City associates to seek out training opportunities, he says,which is why the learning program is such a success. While Cimino won’t quotespecific numbers, he says e-learning returned its investment within months ofimplementation and continues to add value every day.

Workforce, March 2003, pp. 60-62 — Subscribe Now!

Two years ago, Siemens Medical Solutions decided to change its “knowledgeis power” culture into one in which “knowledge sharing” was the norm. Thecompany wanted employees to have easy access to information and expertise acrossbusiness units so that they could do their jobs better and faster withoutreinventing the wheel, says Richard Wetherell, corporate director for quality,knowledge management, and process improvement.

The problem was that many employees associated sharing knowledge with losingpower. For example, says Wetherell, if a software engineer is the only one in adepartment who can perform a certain skill, he sees that as job security anddoesn’t want to give that knowledge away. There was also a scheduling issue.Taking the time to share information or to coach someone in a new skill can beburdensome to busy employees, he says. Employees saw no value in this sort ofcommunication.

Wetherell knew that in order to change that attitude, employees had to see animmediate and personal advantage to sharing information. “If we reward andrecognize people for sharing, then it doesn’t feel like losing power.”

To support the new environment, the company built three Web-basedknowledge-sharing tools, through which employees can collect and disseminateuseful information to the rest of the company:

“People of Med” is an online database of employee profiles that includeseach member’s contact information, experience, areas of expertise, andphotograph. Now, if there’s a need for someone with a specific skill set,employees can search the database and instantly find out if there is someone inthe company who fits their requirements, Wetherell says.

“Communities of Practice” is an online meeting place where employeesvolunteer to host forums on specific topics, such as ISO 9001 certificationchallenges. Any employee interested in that topic can register and participatein conversations, and share materials that may be of value to the group.

The “Knowledge Square” is an online database filled with presentations,Web sites, technical papers, specs, and any other materials that might be ofvalue to the company. Employees can search the database to quickly findinformation related to their area of interest.

“The technology is great, but they only work if people use it,” Wetherellsays.

To encourage employees to take advantage of the knowledge-sharingopportunities, they receive bonus points every time they use one of the threetools. These can be used to purchase items from a gift catalog that includeseverything from T-shirts to vacations. Whether they store their profiles inPeople of Med, participate in a community, or download information from theKnowledge Square, they get rewarded.

Community leaders are also encouraged to throw parties for their members, andWetherell regularly shares the stories of successful knowledge-tool users incompany newsletters, marketing materials, and broadcast e-mails. Last year acommunity was launched to evaluate how different business units teach members tovalidate their processes. The members discovered that each unit spent roughly$10,000 a year hiring different consultants to teach this subject. To remedythis, they chose one consultant for training across the company, creatingconsistency and reducing training costs by $100,000.

These days, employees naturally turn to the knowledge-sharing tools to gatherinformation and connect with other employees, Wetherell says. He still offersthe bonus points, but says the incentive program was intended primarily to lureemployees online and get them using the tools. “They see the intrinsic valueof knowledge-sharing now,” he says. “It makes their lives easier and helpsthem be more productive.”

Workforce, November 2002, p. 82 — Subscribe Now!

Before 1999, employees at Humility of Mary were extremely dissatisfied, unions were organizing yearly, and patient satisfaction was at an all-time low, says Mary Seals, senior vice president of HR and organizational development. There was little trust among employees or patients, and the hospital was struggling to survive. “We had a culture of apathy,” she says.

Four years later, it is one of the top-rated health facilities in the country, recently winning Magnet Designation from the American Nurses Credentialing Center, which places it among the finest hospitals in the nation. This improved status is thanks in great part to an internal campaign to improve communication between employees and management, and to build commitment to the hospital’s values and mission.

One aspect of the campaign is the opportunity for employees to share information and exchange ideas, including weekly newsletters and CEO-grams–a suggestion box that delivers employees’ thoughts directly to the head of the hospital, who responds to every one of them with personal feedback.

The most significant impact to performance, satisfaction, and cost-savings came from the Suggest It program, in which employees can submit money-saving ideas to a team made up of employees and managers. The team analyzes every idea within two weeks of receiving it and implements all those that are feasible. “Suggest It encourages employees not just to do their jobs, but to take part in improving their workplace,” Seals says.

Every employee who offers a qualified suggestion automatically receives $50 within two weeks of the submission. And if the team decides to implement the suggestion and believes it can save the hospital money, the employee also receives 10 percent of the projected savings that will result from the idea–equaling no more than $10,000.

“They don’t have to wait until the idea works to get the reward and recognition; they get it on the spot,” Seals says. “We believe that’s why it’s so successful.”

In addition to the money, employees whose suggestions are qualified have their ideas read in a monthly management meeting where they are recognized and given their award. Anyone whose job will be affected by the idea is also invited to participate in the reward ceremony, and many of the ideas are shared in the company newsletter.

About 80 percent of Suggest Its receive some level of payout, and many of them have had a significant impact on hospital procedure, Seals says. For example, an employee suggested that the hospital change the way materials used in surgery are packaged. In the past, they were wrapped in bulk, which meant that once a box was opened, even those materials not used had to be resterilized. By packaging items separately, they eliminated unnecessary resterilization costs.

That is just one of hundreds of ideas that Seals has received through the Suggest It program. There have been 390 submissions this year alone, and she’s paid out $7,036 in $50 bonuses and additional savings awards. Their highest single payout this year was $1,826 for an idea that saved the hospital $18,260.

The best thing about the program is that it’s got people sharing ideas in a way they never have before. Hospital employees had been frustrated by problems such as wasted resterilization costs for years, but they had nowhere to go with their ideas, Seals says. Now they do.

Workforce, November 2002, pp. 81-82 — Subscribe Now!

Church & Dwight is the largest producer of baking soda products in theworld, but to achieve its goal of being a leader in all packaged goods, thecompany had to add major product lines. When Carter-Wallace, a manufacturer ofpersonal-care and pharmaceutical products, came on the market, at first itdidn’t seem to fit their needs, says Steve Cugine, vice president of humanresources. “There was significant synergy between their personal-care productsand ours,” but Church & Dwight had no market for the rest of their lines.

    Eventually, after months of negotiating, Carter-Wallace agreed to split thebusiness, freeing Church & Dwight to buy the entire consumer-productsbusiness, which includes Trojan condoms, Arrid antiperspirants, Nairdepilatories, and First Response pregnancy-test kits, in a partnership with theprivate equity group Kelso & Company, for $739 million. It was a hugepurchase for the company, nearly doubling its staff size, and it immediatelybalanced the size of the company’s personal-care division with that of itshousehold goods division. The additional product lines and manufacturingcapabilities also enabled the firm to ramp up production in many of itsfacilities, get lower prices on shipping, and have greater leverage in themarketplace.

    It was a great strategic move, but culturally the companies were verydifferent, Cugine says. Even though Carter-Wallace was a public company, theoriginal family had a significant presence in the workplace. Their approach tocompensation was also different: Carter-Wallace paid high base and bonuses withfew long-term incentives and had a rich benefits package, whereas Church &Dwight’s compensation packages were average for the industry but above marketfor bonuses and incentives, and its benefits were less attractive.

    The other concern was that, after a year of being on the market,Carter-Wallace employees were frustrated and cynical about the future. “Thedeal had dragged on for so long, they were demoralized,” Cugine says. “Wewalked into a real challenge. It was a massive change for them and us.”

    Some of those changes would be quite painful, especially for theCarter-Wallace plant in Cranbury, New Jersey, which was one town over fromChurch & Dwight’s Princeton headquarters. Because it was so close,executives opted to shut down the plant, leaving most of those hourly workersunemployed. On the bright side, however, those who did keep their jobs didn’thave to relocate, Cugine says, which made the transition easier.

    To minimize resentment and shed light on the process, Cugine, who wasinvolved from the beginning in negotiations for the acquisition, went into theCranbury plant immediately after the deal was complete to manage theintegration. Within days he held group meetings to explain the situation toemployees, lay out the transition strategy, and share details about the newcompensation plans, which they agreed would be implemented over three years toease the impact of the change.

    He and his team also began interviewing employees one-on-one at all of thenewly acquired plants, to determine who would stay and who would go. In a matterof weeks, Cugine’s team hired 300 of the 590 salaried people and 600 of 900hourly people from Carter-Wallace. “As hard as this process was, we had tosettle the issues as soon as possible,” he says. “Not knowing whose job issecure is a real stumbling block to getting people on board.” For those whoweren’t offered jobs, Cugine’s team negotiated severance packages andjob-placement assistance.

    His team also made a point of working with division leaders and employees atthe Cranbury plant to evaluate their processes and procedures to see what theycould incorporate into Church & Dwight’s environment. “We have an intenselyentrepreneurial, hands-on culture,” Cugine says. He worked hard to communicatethose values to the new employees, encouraging them to share their ideas andparticipate in the growth of the company. “We showed them that they were animportant part of this deal and that in the end we were all focused on thesuccess of the company.”

    Cugine calls the merger “an absolute success” and believes the company hasachieved the business goals it set when the deal was made. But there are thingshe would have done differently. He wishes the companies could have had a moreopen dialogue earlier on with employees to assuage their fears.

    “It’s a matter of balance. Carter-Wallace was understandably reluctant togive us access to employees in case the deal fell through, but if I had it to doagain, I would have pushed harder to let them know what was going on.”

Workforce, February 2003, p. 62-63 — Subscribe Now!