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Posted on May 1, 1995July 10, 2018

Wedding HR to Strategic Alliances

You’ve seen them off the highway. You’ve probably even fidgeted behind one at the nearest pit stop: The long-haul trucker who’s tying up the pay phone. He could be calling home. But most likely he’s on hold, awaiting his fleet manager’s next road assignment. Wouldn’t it be great if we could just eliminate the frustration on his end, the manager’s and our own? That’s just what J.B. Hunt Transport Services, Inc. and IBM did in 1993. A strategic alliance between the two companies produced the on-board computer—a satellite technology that looks like a cellular phone and simplifies the trucking industry’s ability to track and assign its drivers while expanding IBM’s commercial market.


In addition, Armonk, New York-based IBM also introduced a new software program called Micromap® to simplify the logistics manager’s job by sorting through the difficult process of matching loads to truckers. This enabled the computer to consider more than 90 different assignment possibilities. “[The computers] also give us the ability to communicate back and forth with the drivers every minute and at any place in the world,” says Steve Palmer, executive vice president of human resources and risk management for Lowell, Arkansas-based J.B. Hunt. Already, the technology shared through the alliance has reduced the number of driving miles and has contributed to getting employees home on time. Moreover, the on-board computers have helped to reduce fatigue and the number of highway accidents, he says.


Companies are looking for ways to share resources and opportunities.
The strategic alliance between J.B. Hunt and IBM is only one of thousands springing up in the business world every day. One of the most visible partnerships announced recently is the one between Microsoft Corp. and DreamWorks, the entertainment studio founded by producer Steven Spielberg, former Disney executive Jeffrey Katzenberg and music mogul David Geffen. Others include Schering-Plough Corporation and Corvas International; Motorola and various enterprises in China; Amoco and Enron corporations. The list goes on. Today’s strategic alliances are cooperative arrangements between two or more companies that want to develop a win-win strategy. Primarily, both sides want to gain access to untapped geographic markets and resources, exercise more control and share risks. They can be created in response to a variety of needs and can take the form of anything from a technology licensing agreement to a full-blown joint venture. Both parties, essentially, want to reduce the time needed to get product to a greater market at the lowest possible costs. According to global management and technology consulting firm Booz Allen & Hamilton, more than 20,000 new alliances were formed between 1987 and 1992. Nearly 6% of the revenue generated from the top 1,000 U.S. firms now comes from alliances. But about 40% of U.S. alliances today are still considered failures because they don’t achieve their objectives, says John R. Harbison, vice president for BoozoAllen, based in Los Angeles.


No one knows exactly why they’re failing, but industry analysts, business consultants and organizational development specialists are beginning, at least, to understand their nature, to avoid some of the traps and to identify the keys to an alliance’s success. Some also advocate a stronger presence of human resources executives. Because most strategic alliances are initially driven by CEOs and marketing and sales executives, HR executives have been underrated and ignored in the process. But, as those involved in alliances are learning, HR professionals—such as the ones from Dresser Industries, J.B. Hunt Transport, Inc. and Lau Technologies—can contribute to an alliance’s success at any stage: They can help define the two partners’ culture, assess the alliance’s business needs and map out a common language. In addition, HR can take responsibility for the usual compensation and benefits issues that would apply to the alliance employees.


“HR needs to get on a really rapid learning curve,” says Jessica Lipnack, president of West Newton, Massachusetts-based The Networking Institute, Inc. and co-author of “The Age of the Network: Organizing Principles for the 21st Century.” “They need to facilitate interaction and communication and be electronically savvy to connect people and functions at different sites.”


Most strategic alliances, says Lipnack, are typically viewed as a deal. Executives often don’t get down to the level of what it means as far as implementation is concerned. “The most important thing is that the purpose be clear. If the purpose is clear, then everyone involved has a role. The alliance enables you to throw an anchor into the future and pull yourself toward it,” she says.


Today, many alliances are formed by larger companies that partner with smaller companies. For example, take a look at Maynard, Massachusetts-based Digital Equipment Corp. Here’s a company that recently traveled a very bumpy road. It has posted more than $3 billion in losses in the last several years, has restructured and faced several top-level resignations, and has slipped in ranking behind its competitors, IBM and Hewlett-Packard. To acquire more sophisticated systems expertise, Digital entered into an alliance with Acton, Massachusetts-based Lau Technologies. A company with 200 employees, Lau Technologies was the only minority-owned company of three technology firms designated by the state of Massachusetts as a supplier of personal computers, local area networks and other systems for state-agency purchases. In 1992, it had won a $10 million contract from the Massachusetts Registry of Motor Vehicles (MRMV) to provide equipment for automating the issuance of driver’s licenses. Digital provided the stand-alone system, and Lau customized it for the MRMV. By forming an alliance with Lau, Digital was able to take advantage of a state-agency contract targeted for a minority-owned company. It also gained an opportunity to improve its visibility and flash its name on the more sophisticated technology systems provided by Lau. In turn, the smaller company captured a new business opportunity outside of the waning defense industry. (About 90% of the company’s revenues still come from producing electronic systems for defense contractors.) “We needed to find new avenues for sharing the burden of defense cutbacks. So we researched what other businesses we could do,” says Joanna Lau, president of Lau Technologies.


Human resources, Lau says, plays an important role from a defense conversion standpoint. The skills set of many company employees have drifted from manufacturing to research and development and engineering. “Strategic alliances [spur] innovation, an entrepreneurial environment, more projects and more diverse customers,” she says.


Kathleen Camire, Lau Technologies’ training manager, says that human resources entered into the two companies’ alliance to assist in training.


First, Digital had to train Lau employees to use its hardware equipment. That part was relatively easy. But there were several other Lau employees that had to learn how to train the motor vehicle trainers. “We had to teach 14 [MRMV] trainers how to operate the work station that we were providing for them,” says Camire. It was a Windows-based application that allowed an operator to capture a digital image and print a license. The challenge, she says, was to train Lau employees who weren’t used to dealing with the commercial side of business. “Before they were trained to do contract-specific tasks like soldering and inspection. Now they had to learn how to set up computers, test software and train others how to use the equipment at the customer’s worksite,” she says. No longer could these Lau inspectors wear blue jeans and T-shirts to work. “Now, they had to wear a suit and rethink what they were doing. Because we didn’t hire people from the outside, we took people already here and trained them to think differently about the way they do business,” she says.


Since the alliance, Camire says, HR has spent more time on training, curriculum development, scheduling and choosing the right employees for new tasks. About 30 new types of jobs have been created for internal employees. They encompass customer service, maintenance and installation, software engineering and testing computers. Prior to the alliance with Digital, Lau Technologies didn’t even have a customer-service department, she says. “We formed it right before the alliance.”


Even rivals can become strategic partners.
J.B. Hunt Transport, Inc. also made headlines years ago when it allied with railroad companies to share the freight market. It began with Schaumburg, Illinois-based Santa Fe Pacific Corporation in 1989. Today, J.B. Hunt—a $1.2 billion a year company—has at least nine hauling arrangements and 47 ramp locations with railroads covering the 48 contiguous states, Canada and access to Mexico. Intermodal transportation has become big business at J.B. Hunt and generates more than 30% of total revenues. “We’ve been given a lot of credit for the [increased] intermodal activity,” says Palmer. In the past, the railroad industry had been tarnished by a reputation for high cargo claims, broken freight and unreliable schedules. Then railroad companies like Santa Fe began to change their image by improving their tracks and minimizing the jarring of freight. It also invested in high-speed locomotives to improve its transit time. “In the past, we all competed for the same customers,” he says. “But we already had a customer base and a great reputation for service and claims.” The bulk of J.B. Hunt’s customers were Fortune 500 companies with plants all over the country. Santa Fe, Palmer says, had the tracks and the rail expertise. “They used us as the marketing arm to improve their service, and we saved time in delivering freight to our customers. Together, we cut costs for the customer,” he says.


From a human resources standpoint, the alliance provided J.B. Hunt’s HR managers with better incentives for recruiting, career pathing and retaining employees. Before the alliance, HR was troubled by the high turn-over rate among long-haul truck drivers. “We couldn’t get them home as often as we’d like,” says Palmer. “A lot of drivers would call me fixing to quit. They’d say, ‘I need more stability for my family life.'” Long-haul truck drivers of the past would drive 2,500 miles at a time, with home stops about every two weeks. But today’s driver is younger, less experienced and more antsy to get home.


With the alliance, HR at J.B. Hunt was then able to create local and regional driver jobs. “It impacted turnover dramatically,” Palmer says. At first, the truckers viewed the intermodal services as a threat. Senior truck drivers usually earn up to 33 cents per mile. So when they make a 3,000-mile haul, they earn a hefty sum in addition to various performance bonuses. “They viewed [the alliance] as taking their miles away from them,” says Palmer. But after HR had held several orientation and training sessions, the drivers began to see the combined freight service as a career-path opportunity. “Every time we established a rail partner, we gained another rail lane that gave us the opportunity to open up more local and regional jobs.” Drivers would still have to pick up the supplier’s freight, deliver it to the railhead, unload it at the end of the line and take it to the final destination. In other words, more frequent short shops, rather than one long one. “If we could get them the same compensation and home every night, or two to three times a week, that was a big plus.”


Parent partners often give birth to new entities.
Strategic alliances have often been compared to the dynamics of marriage and the family. Harbison, of BoozoAllen & Hamilton, even describes some of the more common sense traps by using these analogies:


  • Picking the wrong spouse: Failing to take the time to select the right partner
  • Being vague with the prenuptials: Failing to explicitly agree on objectives and goals
  • Being a possessive child: Focusing on one’s slice and who controls the baker
  • Seeing through the eyes of a juvenile: Not developing much-needed trust
  • Causing the generation gap: Relying on inadequate or erratic communications
  • Living with the in-laws: Not solving the protective-parent syndrome.

Harbison also warns that partners should not be in a hurry to consummate an alliance as in a shotgun wedding. It usually takes about a year to put an alliance together. Armed with an understanding of the motivations for an alliance, it’s tempting for companies “to plunge ahead without understanding the perils in the path ahead,” he says. “It’s dangerous when the selection of a partner drives strategy rather than vice versa,” he says.


Ask Paul Bryant, vice president of human resources for Dallas-based Dresser Industries, Inc. He participated in his company’s alliance with Woodcliff Lake, New Jersey-based Ingersoll-Rand Company in the mid-1980s. Both were American companies, and both competed worldwide for products. Dresser is known for being a leading international supplier of products and services for the oil and gas industry. It offers everything from drill bits to gas pumps to pipe-coating services. Ingersoll-Rand, on the other hand, is a manufacturer of non-electrical industrial machinery and is one of the world’s largest makers of air compression systems, anti-friction bearings, construction equipment and air tools.


The seeds of the alliance were planted by the two companies’ CEOs. Both had known each other through various industry associations. Because of the downturn in the energy market worldwide, both companies ended up with a surplus of products. “Both sides quickly went from being highly profitable to highly unprofitable. By combining [some facilities], we could put more resources into development and return to profitability as soon as possible,” says Bryant, who participated in the planning stages. As alliances evolve, partners often can assume different roles. Some might simply lend a name. Others might invest money, provide expertise or just roll up their sleeves and lend a hand. But regardless of the role, both partners must be committed to the alliance’s success. In the case of Dresser and Ingersoll-Rand, the alliance would give birth to a new entity.


The parent companies had to first agree on their strategic goals: To restructure in a way that would reduce the capacity and improve a new product line for their global customers. With the Dresser and Ingersoll-Rand alliance, HR played a pivotal role in the beginning by helping select the remaining sites that would evolve into the new entity known as Dresser-Rand company. The new entity, based in Corning, New York, was slated to manufacture compressors and gas turbines.


“Our philosophy was that the new company had to stand on its own. We decided there would be little interference from the parent companies,” he says. Instead, the parent companies would serve as consultants.


Under Bryant’s leadership, the then-combined work force of 9,000 [today there are 7,500] would have to be selected. HR had to determine the criteria with which to evaluate them and also establish a smooth transition for their transfer. Because the new headquarters for Dresser-Rand was in a small community, HR made arrangements for temporary housing. Some employees were offered accommodations in local motels within a 15- to 20-mile radius of Corning. The alliance also required that HR design a new set of rules and benefits program. “We had to use grandfathering techniques to look back at each employee’s history, pension formula and service credit with the parent company.” In other words, the Dresser-Rand alliance was different from an acquisition because a third entity was formed immediately as part of the alliance arrangement.


Bryant says that one of the most difficult aspects of any alliance is reconciling two operating cultures. Dresser Industries and Ingersoll-Rand were similar in some ways: Both had a long-service type of culture in which the average employee tenure was about 14 years. Both also came from engineering backgrounds. But the work styles were very different. One was from the East Coast; the other was based in the Southwest. Those regional differences impacted whether employees were more used to a formal or casual way of working, he says. HR facilitated both groups’ mingling by arranging special dinners and van pools to the local facilities. “Even though the purpose of the trips was to become familiar with our operations, you get to know each other better after spending two hours in the same [vehicle],” he says.


After serving six years as Dresser-Rand’s HR manager, Bryant was promoted in 1993 to his current position as vice president of HR for Dresser Industries. Today, he says, Dresser-Rand is more focused on team building and TQM initiatives that he led before his departure. In addition to the HR department, which includes a staff of 12 professionals, Dresser-Rand also established a quality department run by one vice president and one assistant. “We believe in quality so much that we wanted it to be on equal footing with the other departments,” says Bryant, who recommended that Dresser-Rand purchase and implement Corning Incorporated’s successful total quality program. “Total quality gave us the framework and initiative to harness our employees. People led teams for the first time and blossomed,” he says. Dresser-Rand’s alliance has been so successful, that in 1992 the two companies also combined their pump businesses and formed Ingersoll-Dresser Pump after gaining approval from the U.S. Justice Department. Today, IDP is a mammoth global enterprise, with reported sales nearing $900 million, factories around the world and 7,000 employees. By forming that alliance, the two companies were again able to shrink capacity, combine technology and become more cost competitive. In other words, the businesses brought complementary technologies and marketing strengths to the table.


“Strategic alliances are usually set up for one reason. But it often creates so many other possibilities,” says Lipnack. Adds Peta Penson, principal of Saratoga, California-based Co-Development International, Inc.: “All of these alliances mean new ways of working together. The most important stakeholders often lie outside one’s traditional boundaries. People have reached out to other suppliers and vendors.”


Upstart companies team up with global resources.
For William Koch, co-owner of Ontario, California-based Rexor Corp., forming a strategic alliance meant partnering with a Korean-American chemist with ties to Korea. Together, they formed Rexor, a small company with five employees that primarily has been a technology research and development firm. Now, the company is proceeding to commercialize by growing single silicon crystals called boules, which are sliced into wafers and used to form computer chips. The technology, Koch explains, is one in which Americans have virtually no knowledge. “The people who had been working in this [field] aren’t in the United States.” Koch’s company was exploring a way to grow the crystals in a cheaper and more efficient manner. “Technology is so expensive and so large that it requires more than one single-source provider. In our case, we grow this crystal, which is just one of many steps to get the computer chip to the market place. It requires a high degree of competency,” says Koch, whose background is in engineering organizational development.


When Rexor purchased a $500,000 machine to enable the process, the equipment manufacturing representative who came to install the machine had also installed one in India. Koch asked him to recommend someone who might have the required technical expertise. The representative gave him the name of an Indian professional who had been studying the crystal-growing method. Koch flew to India and negotiated to have the Indian join the Rexor staff. That was three years ago. Today, Rexor also is engaged in a strategic alliance with an Indian company that takes the manufactured crystal and converts them into solar cells, then sends them to Korea where they’re mounted onto boards and are prepared for worldwide export. “We’re getting a price enhancement on our materials by paying a strategic alliance partner a fee in India to do what they want to do—[make solar cells]. Then we pay another enhancement fee in Korea to put them into modules.”


The Korea connection was strengthened through the Korean-American co-owners’ ties to his native homeland. But even with that cultural advantage and insight, Koch quickly learned that conducting global transactions between two different cultures can still get sticky. “[Americans] have a tendency to do business as a contractual arrangement. Koreans are different. They rely more on verbal agreements. Contracts, dates, checkoffs don’t fit well with them. They view it as questioning their integrity. So you never know until the day a project is done, if it’s done.”


HR can contribute to an alliance’s success.
As with any marriage, there’s no guarantee that strategic alliance partners will “live happily ever after.” James Finnegan, director for Cambridge, Massachusetts-based Arthur D. Little, Inc., a management and technology consulting firm, believes the failures boil down to two factors: “After some period of time, either the alliance hasn’t achieved its objectives, or it’s met the objectives, but one of the two partners has changed its mission.” To ensure the best scenario, Finnegan believes HR should participate during the early stages of an alliance. As soon as two or more companies reach a consensus that an alliance is necessary, HR should help define the different cultures and objectives of the marriage. Even if an HR professional hasn’t participated in one before, some consultants advise that HR aggressively seek the opportunity. HR has often been responsible for its own lack of involvement, says Susan Studd, an organizational development consultant at Intel in Hillsboro, Oregon. What HR needs to do is apply its people skills to the overall business needs of the alliance. “Talk to a senior manager who’s participated in one and ask, ‘Could you help me understand what worked well and what didn’t?’ Then, if you hear of a strategic alliance being considered by your company, jump in and ask, ‘What can I do to make it more effective?'” advises Studd. “HR’s reputation and credibility [in strategic alliances] is still being established. Hopefully, it’ll grow over time.”


Personnel Journal, May 1995, Vol. 74, No. 5, pp. 28-36.


Posted on May 1, 1995July 10, 2018

1995 Innovation Optimas Award ProfileBRHotel del Coronado

As the oldest resort in San Diego, the Hotel del Coronado has been innovative since opening on February 19, 1888. The Hotel Del, as locals call it, is one of the world’s largest wooden structures, sprawling over 33 beachfront acres. When it was built, the hotel was the largest structure outside New York City to be electrically lighted. In fact, Thomas Edison himself supervised the installation of his incandescent lamp invention. (He returned in 1904 to throw the switch on the hotel’s first electrically lighted Christmas tree.)


Throughout the years, the resort has been the locale of choice to honor other pioneers, such as Charles Lindbergh after his solo flight over the Atlantic. And because it’s only 16 miles north of Mexico, the Hotel Del has hosted several summits between American and Mexican presidential leaders.


In March of this year, during a ceremony at the John F. Kennedy Library in Boston, Personnel Journal had a chance to honor the hotel’s human resources department for an innovation of its own — the creation of the first Mexican-based HMO. In accepting the Optimas award, Jerry Ramsdale, senior vice president, director of human resources — who pioneered the project — proclaimed that innovation is a proud tradition at the hotel.


But it’s the hotel’s 1,300 employees, Ramsdale said, that gives him and other managers at the resort their greatest pride. “We feel we get tremendous loyalty from them, and in turn we owe them something,” Ramsdale says. Which is why, four years ago, when the hotel learned it was providing inadequate health care for some of its workers, Ramsdale began a crusade to correct it. The hotel had just switched from an indemnity health-care plan to a Blue Cross HMO for its nonunion workers, “to be able to offer a better plan with more extensive coverage that would cost the company less,” Ramsdale says.


The HMO seemed an ideal program for both the company and the employees. There was one problem, however. The hotel employs more than 200 immigrant Mexicans (former Mexican citizens who have become legal residents of the United States), many of whom choose to live south of the border. And although these workers hold green cards that allow them to work in the United States and give them unlimited border-crossing privileges, some of their family members, who are Mexican citizens, don’t have that option. With the indemnity plan, it was no problem. People could use any health facility they chose, north or south of the border. But with the HMO, employees and their families would have to use hospitals and doctors that belonged to the Blue Cross plan — all of which were in the United States.


Ramsdale promised the immigrant employees that he would do his best to remedy the problem. “We’ve always felt at The Del that we have an obligation to provide our employees with benefits that are as good as we can afford to provide them,” Ramsdale says. “We particularly dislike the idea of not being able to provide for one group of employees something that we’re able to provide for another group.”


Solving the problem proved more difficult than Ramsdale imagined. But he didn’t give up, and the resulting HMO that he established with a Mexican health-care service company not only solved the hotel’s problem, but has impacted businesses up and down the Mexican border.


The search for solutions led to many dead-ends.
The first thing Ramsdale did was ask his Mexican staff what the biggest insurance company is in Mexico. They told him of La Republica, a national insurance company based in Mexico City. Ramsdale contacted La Republica’s nearest office in Tijuana, the town that borders San Diego. The company sent a representative to the hotel to meet with him. The HR executive asked the company what it could provide to the hotel’s Mexican employees and their dependents. The representative informed Ramsdale that the company provides private insurance only. And the insurance that it provides didn’t meet the hotel’s standards. For one, the insurance company said it would have to approve each employee individually based on his or her health, and then repeat the process each year. So if an employee gets sick one year, the insurance company could choose not to renew his or her policy the next. Another problem with La Republica’s insurance coverage was that it would require large deductibles from the employees. And to make matters worse, the employees would have to pay their own bills when receiving any services, then wait for the insurance company to pay them back.


Certain that this wasn’t the route he wanted to take, Ramsdale then contacted the hotel’s insurance broker in California, who recommended that he contact an insurance company called El Groupo de Kennedy in Mexico City. “This fellow came in from there and basically explained to me what I had already heard from La Republica about how Mexican insurance works,” says Ramsdale. When the HR director suggested doing it differently, he says the man looked stunned. “The company just had no sense of anything that would be new and fresh,” he says.


Knowing by now that he would get nowhere with insurance companies, Ramsdale contacted the administrators at some of the major hospitals in Tijuana. They would agree only to set up a fee-for-service plan. “I’m a trustee for a union health plan and I learned a long time ago that [this type of system] allows for abuse,” says Ramsdale. “A company has no way of controlling the costs, it has no way of knowing if the fees being charged are feasible. A company simply can’t open itself up like that.”


Ramsdale explained the capitated system used in the United States to the administrators, and even asked if they would like to talk to some American-owned insurance companies to confirm that it works. As with the Mexican insurance companies, however, the hospitals simply weren’t interested in trying anything new. “It seemed that there was no solution to this problem,” Ramsdale says. “No one was interested in any sort of capitated approach because they had never done it before.”


And then Ramsdale saw an advertisement in a San Diego newspaper informing Americans living close to the border that less expensive health care was available at the new Hospital del Rio in Tijuana. The ad was put out by Servicios Medicos Internacionales (SMI), a Mexican-owned and operated health-service provider that had facilities within the Hospital del Rio. As a last hope, Ramsdale contacted SMI.


This was the right move. SMI already had started putting together an insurance policy arrangement that was close to what the Hotel del Coronado was looking for. However, the program was age-rated and health-rated and, according to Ramsdale, had all kinds of exclusions. Ramsdale explained the type of plan he wanted: That the company would pay SMI so much per employee per month regardless of health care received. Because the company already was interested in offering insurance to corporations, it was willing to try the arrangement that Ramsdale suggested. Says Tor Ewald, director of marketing for SMI: “We had been dealing mostly with individuals at that point, but through that service we had enough administrative systems in place to offer the HMO. In fact, things had already been put together to start accepting corporate clients, and when Jerry came along we were already open to that kind of business idea. The hotel was the first company willing to take that risk with us.”


Ramsdale gave SMI a list of the hotel’s Mexican employees and their dependents, and asked the company to come up with a figure for coverage. SMI came back with around $100 a month for individuals or family units. Because families average 4.5 kids in Mexico, this coverage was for an average family of 6.5 people. At $100, the cost was only approximately one-third of what the hotel was paying per family for the American-based Blue Cross HMO, which was approximately $400. SMI has raised their rates by $5 since that time, but, with the devaluation of the peso, Ramsdale doesn’t expect — nor would he pay for — another increase soon.


After agreeing on a price, SMI and Ramsdale negotiated coverage. SMI originally wanted to exclude AIDS, for example, but Ramsdale explained that was considered discrimination in the United States. Within a couple of months, the two parties came up with a workable plan and the program was put in place in 1991.


The new HMO saves the company, and employees, money.
Here’s how the SMI plan compares to the American-based Blue Cross plan. The hotel offers both plans to employees free of charge. For the American plan, Hotel Del charges employees $30 a month for one dependent and $60 a month for a full family. For the SMI plan, the hotel charges employees $14 for one dependent and $21 for a family. “Because it costs us less, we charge the employees a lesser proportion as well,” Ramsdale says.


In addition to the lower premium cost, the Mexican-based plan requires no copayment for most services performed, unlike the Blue Cross plan for which employees must pay $20 per office visit to both their gatekeeper doctors and to any specialists to whom they’re referred. Employees in the American plan also must pay a copayment for prescriptions, whereas prescription drugs are free in the SMI plan. In fact, most prescriptions are dispensed to patients right in the Mexican hospitals. Also, the Mexican plan includes dental care, which is taken care of in the same facilities as well.


Other coverage in the SMI plan includes prenatal care, psychological care, vision care and emergency care out of the area. If an employee gets into a car accident in San Diego, for example, and must go to a local hospital, he or she would be covered.


Within Mexico, employees enrolled in the SMI plan go to SMI’s facilities within the Hospital del Rio to see their primary-care doctors and their dentists, and for the pharmacy. If they need emergency service, they go to Hospital Ingles, also in Tijuana, which SMI owns. SMI also contracts with other facilities in Tijuana and in Mexicali, and will be opening a facility in Juarez, the Mexican town bordering El Paso, Texas, shortly — all of which employees and their family members enrolled in the plan have access to.


Maria Luisa Huizar, an employee of the housekeeping department who has been with Hotel Del for 18 years, likes being in the SMI plan for its hospitals’ convenience. She lives in Tijuana, so she’s able to make appointments for the mornings, evenings after work, or on her days off.


Although Irma de Anda lives on the U.S. side of the border, the engineering employee also likes the convenience that SMI offers her. The close proximity of Hospital del Rio to the border enables her to reach it quickly, without getting caught in the traffic of downtown Tijuana. As a single mother with a young daughter, however, her main reason for joining the plan is the price. “Medicine is much cheaper,” she says, “so even if I do have to put up with a line at the border [to get to the facilities], I don’t mind because I get compensated a great deal.”


De Anda, who has worked at the hotel for 16 years, says she’s been happy with the service she gets through SMI. “They have very good doctors and dentists, and they cover everything you might need. If they don’t have something you need, they’ll get it or they’ll send us where we can have that kind of service.”


Huizar agrees that the service she receives through the plan is as good as any. “I had an accident a couple of years ago, and everyone was very accommodating. They really helped me for a long time while I was in the hospital. I got a lot of support from everybody.”


Despite these employees’ good experiences, there were some problems with the program in the beginning, as can be expected with any new system. Some employees complained that it was difficult to access the hospital after certain hours, and that the hospital was understaffed. There were complaints about some of the doctors not being as friendly as the others, and about a receptionist who, as Ramsdale puts it, “was on a power trip, and was anxious to protect the doctors from what she felt were unreasonable requests, resulting in her being cold and distant with the employees.”


Some of the complaints came out of unrealistic expectations of the employees — such things as expecting the doctor to see four children on one visit when an appointment was made for only one child. But for all the legitimate problems, SMI made every effort to correct them. It added the Hospital Ingles, for example, to accommodate late-night emergencies, and trained or fired doctors and receptionists that gave bad service. “Although SMI had no competition — they were the only thing we could do, period — they never treated us as a captive audience,” says Ramsdale. “They always made every effort to try to do something about the problems.”


Ewald explains why. “For the first time, Mexican facilities were dealing with an American client that expected American standards of service. Having the Hotel del Coronado as a client, which wants its employees taken care of and is accustomed to American HMO customer service, requires SMI to react quickly to its requirements. That’s the only way SMI would be able to grow.”


In the American tradition, SMI now has customer-service departments, so if a member has a problem, they have someone to talk to. It also has a survey sheet it gives each person who comes for service. The patients are asked to mark Excelente (excellent), Muy Bueno (very good) or Malo (bad) for several different aspects of service. For example, the sheet asks if the patient’s appointment was kept, if the doctor treated the patient well and if the pharmacy provided satisfactory service. “Every sheet that doesn’t have an Excelente marked by every question goes to a customer-service person who calls the patient who filled it out and asks him or her why it wasn’t excelente and how it can be made better,” Ewald says.


The SMI plan started a trend that could be the wave of the future.
Although SMI was quick to ensure customer satisfaction when it was the sole provider of a Mexican HMO, it now has even more reason to do so. Since it has proven that the system works — and works well — other American individuals and organizations have contracted with Mexican hospitals in Tijuana and other border cities to provide HMOs. Hotel Del itself has signed on with two of the newer plans for its nonunion employees: Sistemas Medicos Nacionales (SMN) and Meca Internacional, S.A. De C.V. (Meca). “I added them primarily to give those employees who were complaining an option and some control over what they had,” says Ramsdale. The hotel also added the SMN plan for its union workers.


The hotel has approximately 110 employees enrolled in the three plans. Adding in their dependents, that’s somewhere around 500 people being serviced by these Mexican HMOs.


Having all three plans creates more competition and thus even better service. For example, when SMN came on-board, it included a provision to pay up to $2,000 of the cost of giving birth in a U.S. hospital — a benefit important to some Mexican employees because if a child is born in the United States, he or she automatically is a U.S. citizen. To keep people from transferring to this plan solely for this reason, SMI added a $3,000 U.S.-birth benefit.


The multiple plans also provide employees greater flexibility. The Meca plan, for example, offers a luxurious hospital on the beach in Tijuana that serves healthy foods with alfalfa-based liquids, is decorated with tropical fish-filled aquariums, and provides doctors with vibrating pagers so as to avoid paging people over the loud speakers. The SMN plan allows access to the greatest number of hospitals, including the largest and most well-respected hospitals in Tijuana. Ironically, a few of these hospitals were the same ones that Ramsdale approached in his initial quest to set up an HMO in Mexico. “It just had to be done once,” Ramsdale says. “Once the other hospitals saw that this plan was working and that SMI was making money, they were willing to try it when the next person approached them to set up an HMO.”


SMI indeed has profited from the arrangement. Ewald says since the Hotel Del has been with SMI, the company has been able to purchase the Hospital Ingles, open facilities in Mexicali, hire more people, buy more computers and grow quickly to facilitate new clientele.


That new clientele is employees of more than 100 businesses in the San Diego area. “A lot of companies in San Diego employ Mexican immigrants who live in Mexico and cross the border every day,” Ewald says. “The health plans that are available in the United States don’t address the concerns of these people. Their families are in Tijuana or elsewhere in Mexico; oftentimes they speak only a little English, and the health care is too expensive.”


These are all reasons why the National Steel and Shipbuilding Co. (NASSCO) joined both SMI and Meca. Like the Hotel del Coronado, NASSCO converted from indemnity health-insurance plans to HMOs for its 4,000 employees back in 1993. The new plans offered coverage only at U.S. facilities. “We knew we had employees who were commuting from south of the border, so we wanted to make sure we provided for them and their families,” says Steve Gould, manager of employee benefits. Because the company requires all workers to have a U.S. address, however, Gould isn’t sure exactly how many employees actually live in Mexico. He estimates it’s between 200 and 300, although other people tell him it’s probably more. “We have approximately 1,500 people in the shipyard with Hispanic surnames,” Gould says. “Some live in Mexico and commute daily, and some live in the San Diego area.”


Regardless of how many, Gould says that the company “wanted to find something reasonable in Tijuana that not only would allow those families to go to medical providers in Mexico, but also save us a little money.” Gould had heard about the SMI plan set up with the Hotel del Coronado, and contacted the resort to find out about getting the service at NASSCO. At the time, the Meca plan was just getting off the ground, and representatives from it contacted NASSCO directly after hearing the company was interested in a Mexican HMO.


Currently, approximately 170 employees are enrolled in the two Mexican HMOs: about 90 in the Meca plan and 80 in SMI. That number is growing. When NASSCO first began offering the plans only 60 employees joined them. Some of the growth can be attributed to hiring the company has been doing, but Gould says most of the growth comes from word of mouth. “People wanted to see the plans get started and see what other employees thought about them before they made a commitment to getting their medical care in Mexico,” Gould says. He believes that there even are some employees who, now that they know they can get medical care in Mexico, have decided to move back there. Because they earn U.S. wages, they can afford more housing in Mexico than they can on the north side of the border.


Part of the appeal of the Mexican plans for the Mexican immigrants is the opportunity to receive care administered via their own culture. For example, Ewald says that in Mexico it’s customary for patients to spend a lot of time with their doctors. So at SMI’s facilities, doctors spend at least 20 minutes with their patients. “The patient is in the doctor’s office, the computer is in the doctor’s office, and the doctor is in the doctor’s office,” Ewald says. “That is what our clientele is accustomed to. So SMI has been able to mix the Mexican culture with American management.”


Sometimes the Mexican culture clashes with what’s standard in the United States. Ramsdale relates how one of Hotel del Coronado’s employees in the hospital was dying but the doctor wouldn’t tell the employee this because the family didn’t want him to know. “I got irritated with that because I thought the employee had the right to know,” says Ramsdale. “But over there, it’s whatever the family wants.”


For the most part, however, it’s the little things that make a big difference to the Mexican workers. “They like the fact that the hospitals are close to relatives so they can come visit, and that the doctors all speak Spanish,” Ramsdale says.


Martha Zendejas, a hostess in Hotel Del’s Crown Room restaurant who speaks fluent English, says it best: “If I’m dying, they can tell me ‘you’re dying’ in Spanish and I’ll understand that.”


Although Zendejas lives in the United States, she says she has never been in a hospital here because she feels more comfortable going to Mexican hospitals. Because of this, she’s currently facing a dilemma. Pregnant with her first child, she must decide whether to give birth in the United States, thus granting her child American citizenship, or use her doctor in Mexico, whom she says she loves. “I would have to change doctors, but I wish I could keep my doctor because she’s very nice and the hospital [Hospital Guadalajara under the SMN plan] is great,” Zendejas says.


Zendejas has had a difficult time with her pregnancy, and has greatly appreciated not only what she considers excellent care, but the ease with which she’s able to get it. Ramsdale, who because he’s at the executive level has a choice between an HMO or an indemnity plan, is an HMO member for the same reasons. “I’m perfectly happy to be referred to a qualified doctor, and if I don’t like that doctor, I can choose another one,” he says. “And I really like the system of no paper work. I go in, plunk down $20, and whatever is broke is fixed.”


Ramsdale believes that HMOs are the wave of the future throughout America, or at least should be. Ewald thinks that wave will splash across the border as well. Mexico’s current system of socialized medicine, Ewald says, is “bankrupt, isn’t providing quality service and is full of corruption. The people of Mexico would rather have a program more like American health care.”


Already the Mexican-based HMOs have spread to American companies in other towns along the border, including several in Texas. And some Mexican organizations are buying into the system as well. Mostly they are Maquilladoras: large companies that have twin factories on either side of the border that enable shipment of parts back and forth without paying duties. SMI recently also developed a domestic program for Mexican employers that may catch on as well. And in just the four years since SMI and the Hotel Del partnered to create the HMO, SMI has become the largest privately held health-care institution in Mexico.


It’s amazing how much impact one innovation can have. Surely Edison, as he ignited the glow of Hotel Del’s electric bulbs, could only speculate as to the enormity of his invention. Someday, Ramsdale will know the full effect of his.


Personnel Journal, May 1995, Vol. 74, No. 5, pp. 38-49.

Posted on May 1, 1995July 10, 2018

Learning to Understand Each Other by

Although a difference in communication styles is only one of the many differences men and women bring to the workplace, miscommunication does cause the most immediate and frequent frustrations. In her book, “Genderflex: Men & Women Speaking Each Other’s Language at Work,” Judith Tingley argues that men and women successfully can address their chronic conflicts and misunderstandings-without sacrificing their strengths-through a process she calls “genderflexing.” According to Tingley, all that genderflexing requires is that you consider a situation from someone else’s point of view. To begin addressing and modifying our very different communication styles, the author suggests:


WOMEN SHOULD:

 

MEN SHOULD:

1) Maintain their ability to discuss people, feelings and relationships because companies are finally realizing the importance of relationships in the workplace. What women need to do, however, is cut down on the quantity of such talk.


2) Maintain their “facilitative listening skills,” or their ability to really listen and hear what people are saying, and to gather information from others in a nonthreatening way.


3) They should, however, add more conversation about business, money and sports to their vocabulary, because these topics are important to men.


4) Add humor, but not self-effacing humor.


5) Acquire the ability to create win-win solutions.


6) Add forcefulness to their speech and power words to their vocabulary.


7) Be brief and specific.


8) Say what needs to be said concisely, without excessive apologies or disclaimers.


1) Keep their focus on sports, money and business. Men have talked about these topics with their fathers and their fathers’ fathers, and their sons and their buddies. It makes no sense for them to change.


2) Maintain a precise, concise structure of communication for this is one of their strengths.


3) They should, however, put more emphasis on people, feelings and relationships for the same reason women need to talk more about sports, money and business.


4) Use more active listening skills, which will increase the likelihood that the speaker feels understood and heard.


5) Adopt a win-win competitive style of communication, not a win-lose.


6) Use terms that don’t offend; replace “lady” or “gals” with “woman” or “women.”


7) Use general humor, not aggressive, sexual humor. Occasionally, also use self-effacing humor.


 

 

 

 

To fit reality with expectations about men, women need to:

 

To fit reality with expectations about women, men need to:

  • Recognize that men are as unique among themselves as are women
  • Generalize rather than stereotype after gathering data about individual men and don’t assume all men have bad motives
  • Decrease male-bashing.


  • Think about women as business beings rather than sexual beings
  • Recognize that women are as unique among themselves as are men
  • Communicate to women based on their individuality, rather than as members of a stereotypical group.

Personnel Journal, May 1995, Vol. 74, No. 5, p. 54.


Posted on May 1, 1995July 10, 2018

Minimize Distractions for Maximum Output

Are some of your employees functioning at roughly 70% of capacity, rather than the 100% you had in mind during the hiring process? It could be because of the crushing combination of business and personal pressures. They may be worrying about whether they have upward mobility in the company, how they’ll send their children to college, how they’ll retire someday and whether their own jobs will be obsolete soon. They may be reading articles suggesting that all of us are responsible for our own careers and can no longer assume that an employer will retain us in exchange for company loyalty and hard work. Many employees see an uncharted financial wilderness ahead of them.


In a changing climate, the challenge for every HR professional and corporate manager is to motivate each employee to give 100% at work and to help eliminate the nagging distractions that negatively affect productivity. One way to do that is to address the distractions head-on in efficient, effective ways that don’t trigger corporate liability issues and that don’t meddle in the employees’ private lives. Solutions include career counseling, financial-planning training and flexible schedules that allow workers to deal with family issues.


Career concerns head the list of stressors.
First, you need to identify the distractions. HR professionals are remarkably consistent in their replies when asked about concerns that distract their companies’ employees. At the top of their lists are career growth and employability, financial problems and work-life balance.


Employees troubled by these issues reduce the effectiveness of those around them as well as their own. Maxine McLean, whose company Awareness by Design in Tucson, Arizona, works with front-line employees in customer service and business protocol, has seen entire organizations hobbled by one 70% employee because that person is a manager or supervisor. She describes one manager who is under such great stress from financial worries, work-life issues and concerns about career growth/employability, that he must wear a heart monitor. His stress has caused him to treat his front-line managers with disrespect, sabotaging their and their workers’ productivity. However, he doesn’t realize that he’s doing it. Having witnessed front-line employees being rude to customers and seeing the slip in productivity, the manager called in Awareness by Design to counsel the employees on customer service. Those front-line managers told McLean that they find it difficult to treat others with respect when they aren’t being respected themselves. “This isn’t an unusual case,” McLean explains. “I think this happens frequently.”


Arthur Reedie, senior consultant with Dimension Five Consultants, Inc. in Monterey, California, believes that helping workers identify their career capabilities is the first step toward building their productivity. He sees HR responsible for helping employees identify their own strengths and get a better grasp of what it will take to use their talents to get ahead, either in their present organization or in another.


Unfortunately, notes Reedie, who founded an outplacement firm, most companies make their greatest investment in the individual needs of their employees when they lay them off. The companies help individuals being laid off deal with the job loss, build a marketing plan to get a better job, and cope with the financial consequences of job layoff through a “crash course” in financial planning. This can be enormously helpful, of course. But what if employers did all these things for the employees they retain? What if employers helped their employees market themselves internally? What if outplacement services could become “inplacement” services?


One bright young employee was having difficulty conforming to the corporate culture. An entrepreneur at heart, he really wanted his own business.


McLean has a positive example of inplacement from the same firm where the highly stressed manager is now getting individual attention to help him return to 100% productivity. Another bright young employee at the company was having difficulty recently in conforming to the corporate culture. In an interview, he explained that he had no financial worries—he made good money—but he hated his job. An entrepreneur at heart, he really wanted his own business. McLean helped him understand that he would have financial worries if he lost his present job, which was more likely than he supposed, but he could develop a plan to reach his goal of self-employment in several years. With her help, he made the commitment to being self-employed, set goals, made a plan, wrote a mission statement and set a time frame. They set those goals in the context of what he could learn in his present job to make him a more successful self-employed person eventually. The benefit of the process for the company is that, although the company may lose this employee later on, his current performance on the job has improved considerably. He has become a 100% employee.


Along with counseling, Hilary Kraft, an independent HR consultant associated with William M. Mercer, Inc. in Los Angeles, explains that many companies are beginning to define for employees what it takes to move to the next level by defining key behaviors, or competencies, needed in their work force. “Competencies cross over particular jobs. Competencies are the core for developing integrated HR systems,” Kraft insists. A focus on competencies shifts the emphasis from whether someone is the right person for the job to whether someone has the competencies for the task at hand. She believes that one management tool that helps put the emphasis on competencies rather than job descriptions is the 360-degree performance review, in which an employee’s evaluation is done by peers, subordinates and customers, as well as the supervisor.


According to Reedie, who now works in leadership enhancement and has an HR background, implementing solutions to concerns about career growth and employability means creating “learning organizations,” in which not just the individual, but the whole organization is committed to ongoing learning. “People want to be part of something that’s going somewhere,” Reedie points out, “and they want to see that they’re going somewhere.”


Sun Microsystems is a good example of a learning organization. The Silicon Valley-based firm has devised a creative response to the distraction of worrying about career growth by putting the issue on the table, not under it. Sun offers all of its employees “Career Management Services @ Sun: An Employee Benefit.” Every employee at Sun gets two hours of free career counseling yearly. The firm encourages each employee to think of herself or himself as self-employed within the organization. The philosophy is career self-reliance, according to Sun’s Lola Gerstenberger, project manager, Career Management Services. “In the 1990’s, you need the ability to actively manage your work life in a rapidly changing environment.”


To accomplish this sea change in employee attitudes about employment, Sun contracts with the Career Action Center, a not-for-profit organization that counsels Sun Microsystems employees to help them find their best work—the best investment of their abilities—within the company or beyond it.


Reedie believes the questions that distract employees can be reframed within a learning organization so that less distracted employees can pose a new, more important question: “How do I help the boss make decisions that will contribute to everyone’s growth?” That’s the kind of question that a “self-employed” employee in an organization is more likely to ask.


Employees today need financial-planning training.
After career stability, finances seem to be employees’ biggest stressor. Awareness of the employee’s dilemma in the new business climate is so pervasive that a new federal regulation, 404 (c), requires any employer who offers a qualified plan to educate employees about financial products and retirement plans. Why? Because employees have become, of necessity, their own financial planners in a world in which very few people work for the same employer from graduation to retirement.


Concern about the obsolescence of “lifetime” jobs with lifetime benefits packages has given most employees a new distraction; now they must be their own money managers and financial planners. Joseph Bonacci, a vice president with a large regional bank in New Jersey, is concerned about this development. “It amazes me how many people have no financial plan, no clue what they’ll live on when they retire,” he says. Bonacci manages corporate clients, and sees this problem from the banker’s and the employer’s perspective. He believes that helping employees understand and manage their finances better will increase the likelihood that the employee will be able to function at 100%. As a banker, he suggests employers provide financial planning education to their employees. “It will help get you some loyalty, improve the employees’ financial position and help employees become less transient.”


He comments that while many employers are probably offering a 401(k) plan, they probably aren’t explaining its benefits emphatically enough. Bonacci comments that most bank trust departments are willing to invest a great deal of energy in providing information about 401(k) plans to their corporate customers, such as putting on seminars and returning annually to answer questions about the plan.


However, Kraft believes few companies actually give employees investment education. “Companies have been doing more communication with their employees about investment options within their retirement plans, but we really need to sit down with small groups of people and give them an ‘Investments 101’ class.”


Recognizing the value of financial-planning services that can help a company create more “100%” employees, some firms have begun to tackle the issue. Prosper Marketing Group in San Antonio, Texas, markets innovative financial-planning products to corporations, banks and insurance companies. For example, “Financial Crossroads” is a personal financial self-development program that can be used as a self-study guide or as a workbook for onsite workshops administered by Prosper trainers or affiliated financial institutions. The program helps employees work through the financial aspects of life’s potential transitions: serious illness, death of a spouse or child, divorce, care of a parent, retirement or job loss in the family.


Mickey Batsell, president of Prosper Marketing Group, says: “When a company offers ‘Financial Crossroads’ to its employees, the guide doesn’t recommend specific strategies or products. It helps employees visualize their situations and possible consequences and identify potential defensive strategies. It then directs the employee to find an outside financial adviser to help him or her develop solutions. The employee becomes more responsible for his or her own financial health and becomes the owner of a plan that can relieve a great deal of distracting stress that could interfere at work.”


A second way to use the program, says Batsell, is for employers and banks to form a partnership to provide this education, customizing “Financial Crossroads” so the bank’s products are described and offered as part of the seminar. If the employee is satisfied with the bank products the seminar introduces, the employee is unlikely to sever the relationship with the bank, even if he or she leaves the company.


What’s the employee’s responsibility? They need to abandon the notion of employer as financial “parent.” No external force is responsible for doing an employee’s financial planning. HR, therefore, must communicate this responsibility to employees, and make resources available to give employees financial-planning help.


Balancing work and family is another stressful problem.
Employees troubled about financial planning or their own future employability are likely to have difficulty maintaining a work-life balance as well. Perhaps the greatest change emerging in the new workplace is the sense that each of us is self-employed, no matter where we work. Our colleagues are our internal customers. We’re responsible for upgrading our skills, knowing our options and thinking about our own future employability. This is all very exciting, but where is there any stability? If our family partners are going through the same reframing process, the strains on family can be enormous.


Linda Artel, a career consultant specializing in work-life issues with the Career Action Center in Palo Alto, California—and a working parent—believes that the most important message to employers who see employees struggling to balance work and family is, “Give them some flexibility so that they can avoid being distracted by personal needs.” She offers the example of a parent who could avoid arranging for a half-hour of child care before school every day if her work schedule could be adjusted to begin a half-hour later. The half-hour can be made up in a variety of ways. The point is that the employee whose personal needs are accommodated will be less “worried, distracted and resentful.”


Another suggestion that helps employees balance work and family is to put all the types of leave an employee earns—vacation, sick leave and personal leave—into one basket, allowing each employee to use it as she or he decides. This helps the employee avoid the dilemma of whether to call in sick when in fact his or her child is sick. Why not trust the employee to make the best use of leave time? The total number of hours of leave doesn’t change; only the administration of those hours changes.


A subsidiary of New York City-based American Express Co. Inc. is using a compressed workweek so that employees can take every other Friday off. In response to the predictable question—Why give them the 10th day off when in many places they’ll work 10-hour days anyway?—Artel stresses that a burned out 70% employee is the likely result of unbroken strings of 10-hour days.


Flexplace, a cousin of flextime, offers more options. Artel describes one San Francisco-area employer who gave an entire work group the opportunity to telecommute two or three days a week because their productivity went up so dramatically under that plan. Flexplace requires managers who can cope with not seeing employees for two or three days a week; indeed, the new business environment demands new attitudes and management styles.


What does the successful new manager look like? According to Swanie Schmidt, manager of corporate consulting at the Career Action Center, the new manager is a “mentor, expediter, arbitrator and facilitator”—not a parental figure. Artel stresses that managers must start managing people for results, not for how much time they work. There are few jobs where hours (“face time”) count more than product. She describes a focus on productivity as managing in the 21st century, not the 19th.


Employees troubled about financial planning or their own future employability are likely to have difficulty maintaining a work-life balance as well.


Artel summarizes the employer’s role in helping employees set work-life boundaries: “Many employees will work evenings and Saturdays for a while to meet a deadline or accomplish a project, but what puts people at 70% is constantly having to spend more than 40 hours a week at work.”


Many employees make “deals” with managers to accommodate family or personal needs, but unless such flexibility is company policy, the deals can collapse when the manager changes. If the new manager refuses to honor the arrangement, all the carefully crafted arrangements about child care, elder care, sharing of parental responsibilities, care for a seriously ill partner or exercise time can fall apart. If the flextime or flexplace agreement is perceived as fragile, Artel insists, it becomes a source of anxiety rather than relief from it. Employers won’t be able to retain the best employees in such a rigid environment.


Employees share responsibility with managers for avoiding burnout by setting boundaries and priorities, avoiding perfectionism and being flexible about the company’s needs. When the work group could make better progress if the employee taking a day off would spend 15 minutes on the telephone, then he or she must be flexible. Employees must “work smart,” recognizing most work is potentially infinite and that we all reach a point where return on extra effort is infinitesimal. Again, employees have to speak up for what they need.


Benefits of helping a 70% employee become a 100% employee.
One primary goal of helping a 70% employee become a 100% employee is improving productivity. Another, of course, is gaining and retaining the dedication of good employees. Reedie stresses: “Just giving them a better benefits package—that has no glue in it.” A company committed to implementing the kinds of ideas embodied in the practices of Sun Microsystems and the ideas of Prosper Marketing Group is committed to attracting and retaining high-performing employees.


Employers benefit when managers and their work groups develop more effective ways of producing. Creativity becomes a valued competency when everyone is freed up from distractions and has a role in shaping the work environment.


As the work force becomes more diverse, so too do the distractions. In the evolving business climate, it’s more important for each employee to be able to say, “I’m an investment for the company. The company is responding to my unique needs.” Then, Reedie believes, the employee gains a deeper sense of self-worth and the kind of peace of mind that allows full focus—100%—on the work.


Personnel Journal, May 1995, Vol. 74, No. 5, pp. 70-76.


Posted on May 1, 1995July 10, 2018

Career Development Gets a Charge at Sears Credit

Attention to career development is important at any stage of a company’s life cycle. But as Sears Credit learned, it’s especially critical after a major reorganization. The company’s strategic plan prompted the Hoffman Estates, Illinois-based firm to close approximately 50 small units, expand nine others, offer a major voluntary retirement program and accept third-party credit cards in competition with the Sears-Charge card—all of which impacted the careers of Sears Credit’s associates. To better align associates’ skills and work loads with the reengineered company, Sears Credit launched a major career-development initiative. The process Sears Credit went through is discussed below by Peg O’Herron, manager of training and development for Sears Credit, and Peggy Simonsen, president of Career Directions, a career-development consulting firm based in Rolling Meadows, Illinois, that Sears brought in to assist in the process.


Reorganization required new career strategies.
Sears Credit is responsible for all credit transactions in the retail stores and other field units of Sears Merchandise Group. In 1990, the firm employed about 13,000 people at 50 field locations. By 1994, consolidation had reduced the number of locations to 20 and shrunk the work force to 10,000. Although the firm closed several units, some of those remaining grew tremendously—from an average of 350 associates to 1,000 associates per operating center.


This reorganization had many career implications:


  • Virtually all jobs were newly created or significantly redefined
  • No longer were there career paths to emulate due to the number of new and redefined jobs and the elimination of others
  • There was a need for outside hiring at all levels to obtain new talent immediately. This was a major change for a culture that traditionally promoted from within and wasn’t used to external hiring
  • There was a need to develop new skills in the current work force to succeed in the new environment
  • There was a need to develop “bench” strength of associates prepared to fill future openings.

To respond to the major cultural, staffing and structural changes at Sears Credit, senior management worked with human resources and training professionals to establish the company’s overriding goals. The group determined that it wanted the company to have more open communication about career opportunities, the development needs of individuals and new staffing procedures.


The group also established that Sears Credit needed to help its associates and managers reframe their mindset—from “the company will take care of me” to a proactive attitude that redefined success in terms of what’s important to the individual rather than how fast one moves up the ladder. People would need to understand, not just hear, that career development wouldn’t be limited to promotions.


The company also needed to redefine responsibility. Not only would associates have to take on new responsibility for managing their own careers, but managers also would need to recognize their role as coaches in supporting associate development. The organization, too, represented by HR practitioners and senior management, had responsibility to provide information and resources so associates could take the initiative. In short, Sears Credit needed a partnership to ensure that individuals at all levels could continually add value to the company.


The group also determined that, to move beyond words to action, associates needed to know their skills and understand their marketability, and also know how to identify opportunities for development. They needed a planning process to create goals that included ones other than promotions. And to be viable, goals had to be linked to the business needs and the direction of the changing organization.


Finally, HR, trainers and senior managers realized that everyone needed to break away from “next job” thinking and take a longer, broader perspective of their careers and career-development options.


Planning the project.
With these goals in mind, the organization formed a project planning team led by us—the manager of training and development at Sears Credit and the president of Career Directions. We began planning in January 1992 and anticipated to roll out the process in May. We felt it was important for both internal consultants from HR, training and senior management, and the external consultant to partner throughout the process.


We recognized that for a major cultural change to occur, Sears Credit needed a comprehensive, organizationwide career-development process. And each process component had to contribute to creating organizational culture change and promoting individual growth.


Some firms start wherever they can when launching career-development systems. We decided instead to complete as many of the components as possible and ensure senior management support before launching associate and manager training.


In fact, a key element was sponsorship by senior managers. Jane Thompson, Sears’ executive vice president of credit, was a leading champion of the career-development initiative and provided periodic updates for the organization throughout the roll-out. “In Sears Credit we had a number of elements of a high-performance team,” she says. “We had a strong commitment to performance evaluations that entailed a real dialogue between the manager and the associate. We had a commitment to training. We had gainsharing in many of our units. What we were missing, however, was a chance to make it clear to people what the career opportunities are, what it takes to take advantage of opportunities and move ahead, and what skills are needed to do one’s job better and prepare for the future.”


Defining the skills and competencies needed for success within the restructured jobs was another key element of the process. We defined the competencies after surveying associates and reviewing their responses with managers. They fell into five major categories: business knowledge and contribution to financial results; leadership; customer focus; individual effectiveness; and associate development.


After identifying detailed competencies and skills and communicating them to the organization during career-development workshops, we developed manager/peer-assessment and self-assessment inventories. These allow associates to identify growth areas for themselves. We then expanded the annual career discussion that associates had with their managers and separated them from the appraisal review. We also made the career discussion optional. This allows associates to take the initiative in leading the discussion and scheduling it at a time that best fits their personal goal-setting process.


Because this proactive approach to career development was a relatively new concept for all associates in the organization, we planned training to help reframe thinking and give people tools to use in their career planning. All exempt associates participated in a two-day workshop, “Managing Your Career Within Sears Credit.” The workshop incorporated new models of career development, self-assessment activities, organizational information and a development-planning process.


Managers attended an additional workshop—”Managing Career Development”—because they needed career-coaching skills for discussions with their subordinates as well as advice on how to manage their own careers. Although participation in some other company programs is voluntary, we mandated the introductory training on this issue for all salaried staff, after which associates could choose whether to participate further in the career-development process. However, further involvement of managers whose associates request career discussions was mandatory.


Since the old, known ways had changed, Sears Credit had to adopt a more open philosophy about opportunities and company information. We needed HR systems such as position descriptions, organizational competencies and a new compensation structure to support career-development efforts and reinforce the overall message of development to meet company needs. This prompted us to write position summaries of the many new jobs that the organizational restructuring created and make them available to all associates via E-mail. In the past, Sears had treated this information as confidential. HR managers safeguarded it, and it wasn’t available to associates.


We also created a data bank of associates’ desired career goals to be used for organizational planning and staffing decisions. The associate and his or her manager develop the information for the data bank. The input includes details such as, “job next aspired to,” “preferred location” or “education needed.” This information is available to match against specific jobs in specific locations and to assist in planning training for a particular population.


One of the most important components of the career-development system was a new compensation program. When the message is that development doesn’t necessarily mean promotion, associates perceive a conflict if a highly rigid compensation structure rewards only upward moves. Tom Cataruzolo, director of HR, spearheaded a change to a broadbanding compensation program that rewards developmental moves previously considered “lateral” and not entitled to a promotional increase (see “Broadbanding Compensation Aligns With New Career Development”).


Communication was, and continues to be, essential throughout the career-development process. Once we determined the initial design, components, responsibilities and deadlines, we created a brochure to communicate these aspects first to managers at a semi-annual national meeting, then to all exempt Sears Credit associates nationwide. In addition, we had continual discussion and correspondence from the executive vice president.


To continue communications, Sears Credit issues a quarterly newsletter entitled “Career Developments.” The newsletter highlights various segments of Sears Credit to familiarize associates with opportunities; introduces associates and describes directions their careers take; reviews career-related books; and delivers messages from management.


Career development process proves positive.
Six months after all exempt associates and their managers participated in training sessions, we conducted surveys and focus groups to ensure that the program’s design met associates’ and managers’ needs. We also used surveys to collect base-line data that would allow us to measure the impact of the career-development initiative and to determine if we achieved our program objectives. We did.


Most associates now are taking responsibility for their own career management. In fact, 93% report they have specific career goals and a plan to reach those goals. They also report that they’re more aware and realistic about their interests, strengths and development needs, and that they’re more knowledgeable about the competencies needed for different levels of responsibility and compensation bands.


Approximately 80% of associates have had career discussions with their managers, and a majority of those recorded their goals into the database to communicate them to HR for staffing decisions. We’ve put in place a systematic method of accessing associates’ goals and managers’ recommendations for job placement.


Managers are more knowledgeable about associate career goals and are involved in associate development. A forthcoming development guide will provide even more creative development options and resources to managers and associates. Also, senior executives are involved in planning and actively supporting career development throughout the organization.


Sears Credit continues to experience change. New opportunities and challenges surface rapidly, requiring associates to be proactive in their current assignments and in their career planning. The company has learned that a comprehensive career-development process is a critical contributor to organizational success, especially after major restructuring. Support for individuals such as that provided by a career-development process, results in a motivated work force eager to accomplish business initiatives.


Personnel Journal, May 1995, Vol. 74, No. 5, pp. 103-106.


Posted on May 1, 1995June 29, 2023

Sexual Politics

So you think your company is dealing with gender issues? Think again. Men and women have had it with each other and it’s high time you paid attention. Picture the U.S. workplace as a boxing ring. In one corner, the American male worker—seething, resentful, a little smug, and sick and tired of all the accusations leveled at him by members of the “fairer” sex. In the other corner, the American female—jaw set, fists up, and bound and determined to gain more respect, power, money and understanding from the men who rule corporate America.


She, quite frankly, is sick of accommodating men, proving herself over and over again, and waiting patiently for the creeps in the big leather chairs to “get it;” to stop being such insensitive, narrow-minded jerks who only encourage and promote clones of themselves. “Pay me what I’m worth,” she says, “and promote me on my merits. What’s so hard about that?”


He, on the other hand, wonders if she’ll ever stop whining and start acting like an adult. He’s tired of censoring everything he says, and sick to death of being blamed for the oppression of women in this society. “You want my respect?” he asks. “Earn it. And take a look around. Lots of women are making it today. What’s your problem?”


If you were the bookmaker for this match, on whose head would you place higher odds? His, because men do hold the power in this society and the situation isn’t likely to change significantly in the near future? Or hers, because she does deserve better treatment and more authority than she’s been getting? Your answer, of course, may depend on who wears the pants in your family. But, frankly, you shouldn’t be betting on either gender. Any clear winner in the battle of the sexes means a giant loss for American enterprise.


Does all the tension between men and women sound grossly overstated? Hardly. The fact is, gender relations in the workplace are worse than they’ve ever been because we’ve patently ignored the real reasons behind gender warfare: Women want more power, and men don’t want to share it; men and women really are different, and we’ve overlooked those differences for far too long; and the ceaseless change in our society has all of us feeling overwhelmed, vulnerable and more eager to find scapegoats than ever before. And let’s face it: the opposite sex makes for an easy target.


What’s more, the things human resources professionals think they’re doing to mitigate gender strife, including sexual harassment workshops, work-family programs and diversity initiatives, may actually be exacerbating the conflict.


Conflict arises from the pursuit of power.
Let’s talk about what everybody in corporate America is afraid to talk about: power and power-sharing between the sexes. Men, who have held all the power positions for years, are feeling more vulnerable than ever. In terms of sheer numbers, more white men have lost their jobs through downsizing and restructuring than any other group of Americans, and those who are left with a paycheck are determined to keep it come hell or high water.


Unfortunately, their job losses have come at the same time that more companies are recognizing the need to recruit and promote more women into management positions. These men, to put it mildly, aren’t eager to share their power, especially with women they feel may not be qualified for the job, or worse, may abuse that power once they attain it.


“Women who have gotten into good positions are afraid men are going to take their jobs away, so they take a ‘CYA—cover-your-ass’—approach to management,” says Jim Hart, a private psychotherapist in Acton, Massachusetts, and former vice president with Mediplex behavioral treatment centers in Boston. Hart, who has been looking for a management job since Mediplex was sold six months ago, has been interviewed by women for five different positions. In each case, he says, he believes the females who interviewed him were threatened by his credentials. “I was perfect for those jobs, but the women interviewing me were afraid I would eventually overtake them, even though I told them I didn’t want their jobs. And I’m not alone,” he adds. “A lot of men I know are running into this.”


Hart may have a point. A recent study conducted by Drake Beam Morin Inc. found that for the third year in a row in 1994, women at the executive level were able to find new jobs about a month faster than men on average. However, women still feel that corporations—or, more to the point, the men who run them—don’t want them at the top no matter how exemplary their performance. A survey conducted for Working Woman magazine by the Louis Harris polling firm found that female executives still feel like aliens who are “frozen out of the old-boy network and unable to advance beyond an unshatterable glass ceiling.” After 20 years of fighting the battle for advancement, women are tired: Tired of being patient; tired of waiting until their numbers are large enough to challenge the status quo; tired of waiting for the wage gap to narrow; and tired of adopting male work and communication styles in an effort to play by their rules.


“Women are mad because they feel like they’ve been doing the adapting for years,” explains Judith C. Tingley, author of “Genderflex: Men and Women Speaking Each Other’s Language at Work.” Women have believed that the more they’re “like men,” the more likely they are to be admitted to the inner circle. They’ve worn the navy blue suits, they’ve altered their styles to be more manly, and now, when they hear disgruntled men accuse powerful women of protecting their hard-won turf, they have very little sympathy.


Women especially are tired of having to be better than men just to keep on par with them. A communications manager at a Southern California-based pharmaceutical company says, “Women are regarded as harder workers around here by both the male and female bosses. Yet you look at all the corporate veeps and there’s only one woman—and she’s pretty manly. What does that tell you?”


Women, and probably most men, have long recognized that people in power exhibit certain behavioral characteristics and, to get ahead, it’s best to assume those characteristics to the greatest extent possible. But are those characteristics associated with gender or with power itself? Although little scholarly study has been done on the issue, strong opinions abound.


A group of eight men who are suing their former employer, Del Mar, California-based Jenny Craig International, for sex discrimination and sexual harassment, would probably support the latter theory—that power leads people to oppress others, and that men are not oppressors by nature. According to a New York Times report, the “Jenny Craig Eight” are saying they were fired, denied promotion or given unfavorable assignments because they were outsiders in a female-dominated corporate culture. The men complain about sexual remarks—one plaintiff said his female supervisor told him she dreamed of him naked; another was told he had “tight buns.” They say they have been negatively stereotyped. For example, one was told he was “sensitive for a guy.” They claim they have been assigned tasks, such as shoveling snow, because of their gender rather than because of their job description. And they protest being bombarded with “girl talk,” about pregnancy and menstrual periods.


Commenting on the case, Jane Brayton, an official at the Massachusetts Commission Against Discrimination, says: “It’s the same stuff; it’s just that sometimes the “he” turns into a “she.” Nothing’s changed. The majority keeps putting down the minority.”


Stories like this aren’t at all surprising to Hart, who strongly agrees that power, and not gender differences per se, is at the root of all this seething tension. “Women have complained for years about all the ‘Hitlers’ in power in corporate America,” he says. “But now, as more women have attained powerful positions, I’m seeing a ton of ‘Hitlerettes.’”


Mary Mattis, vice president of research and advisory services for Catalyst in New York City, also believes that escalating gender tension is a result of power, or more specifically, a power imbalance between men and women. “This isn’t so much about gender as it is about power-sharing,” she says, “and we shouldn’t be so totally alarmed that this issue is coming to a head. There’s a national shifting of power under way, and we’re naive if we think men don’t feel threatened.” It’s much easier for us to talk about more superficial differences in communication and management style, she adds, than it is to talk about power-sharing.


The experience of young men and women entering the work force further substantiates this theory of power as the root cause of gender combat, because male-female relations are best among young adults. They’ve gone to school together, they’ve roomed side by side in dormitories, they’ve played in co-ed intramural sports. Men and women enter the work force as chums, but when the first set of promotions and blue-chip projects are offered, and they must compete against each other for those opportunities, suddenly it’s the boys against the girls. The young women think men get better jobs because men in power are more comfortable hiring others who are like them, and men think women have a leg up, so to speak, because of some hidden Affirmative Action or diversity agenda. Apparently, it’s much harder to set aside differences when you’re talking about economic survival than it was when your only worry was what to be when you grow up.


The power struggle intensifies in an unstable work environment.
This competition for a paycheck is another reason why men and women are locking horns more these days. When human beings feel vulnerable, they lash out more at those with obvious differences. And with the enormous restructuring under way in corporate America, everyone feels threatened these days. The eroding recession, the changing nature of jobs and the fact that the corporate pie no longer is big enough for everyone has all of us bewildered, under stress and suspicious of our colleagues. Promotions used to be the reward for hard work, but flatter organizations have fewer top spots toward which to advance. For better or worse, men and women are being forced to compete more against each other—not only for the precious few advancement opportunities, but to hold the positions they’ve already attained.


“When people are threatened, they start to behave in a primitive survival mode,” says George Simons, a gender and diversity consultant in Santa Cruz, California. They start looking for places to put their anger, for people to blame. In this kind of environment, everyone who’s “different” becomes a target, he says. A man working with a female sales partner, for example, may start to feel threatened if she becomes more successful. But instead of attributing her success to hard work, he, who is under pressure already, may claim she seduced customers. A female, on the other hand, who witnesses a male partner’s success, may be more likely to attribute that success to the old-boy network.


“Popping off, name calling and gender slurs are becoming much more common because of the stress we all are operating under,” Simons adds, which also partly explains the increase in such things as gay bashing and white supremacist groups. People are harried by the changing nature of work, they’re irritable, and as a result they’re less likely to overlook differences and more likely to ascribe problems to them. The fact that men and women have ignored their differences for so long has only added fuel to the fire.


“I have completely shut down. I don’t even know how to be friendly without getting strange looks.”


“It used to be politically taboo to talk about the differences between men and women,” says Simons, because different meant inferior and equality meant sameness. In seeking equality, the idea was to downplay any behavioral characteristics associated with gender. The goal was androgyny. Men were supposed to be more sensitive, women more assertive. Men started wearing floral ties; women, padded shoulders. It wasn’t long before all employees started to check their hormones at the office door because the way to deal with our differences became to ignore them, to neuter ourselves.


Unfortunately, ignoring the very real differences between men and women has only heightened our inability to deal with them. Women still don’t understand why men express friendship by punching each other. Men still don’t understand why women seem to share so many secrets among themselves. Women don’t understand why men cuss. Men don’t know why women care. Women are exasperated because men still don’t listen. Men still want women to say exactly what’s on their minds. And on and on and on. It’s why men and women are keyed up on opposite sides of the boxing ring.


Granted, we’re starting to talk about our differences, but the discussion is tentative; it makes us nervous, and our discomfort shows up as intolerance. Until we get to the point where we can acknowledge those differences, be proud of them, and embrace the benefits of varying approaches and perspectives, men and women likely are to be stuck in an antagonistic, “he-said, she-said” mentality. Furthermore, before we begin to grapple like adults with the many ways our differences impact the workplace, we have to look at the ways HR professionals have unwittingly been fueling the gender fire.


Sexual-harassment, diversity-awareness and family-friendly programs can serve as kindling.
Indeed, well-meaning HR programs can increase gender tension. Take, for example, programs to prevent sexual harassment. These programs, which are designed to raise awareness of the kinds of sexually-oriented behaviors that are inappropriate for the workplace, have in many companies polarized the work force, making men feel defensive and women feel victimized.


Even though blatant sexual harassment is perpetrated by only a very small percentage of males, the awareness of the issue and the emphasis on “thou shalt nots” have many working men afraid to interact too closely with women. Increasingly, stories are told about men who won’t lunch with a woman, travel with a woman, have discussions with a woman behind closed office doors, or even ride in an elevator with a woman unless other employees are present. A sales and marketing manager who supervises nine women at a San Diego based publishing company put it this way: “I have completely shut down. I don’t even know how to be friendly without getting strange looks.”


According to Aaron Kipnis, co-director of the Gender Relations Institute in Santa Barbara, California, sexual-harassment programs have been extremely successful at raising fear and anxiety, inhibiting spontaneity and communication, and distancing women and men. Fearing their behaviors will be misinterpreted, both sexes have become “like robots.” Men find themselves talking much more slowly because they’re evaluating everything they say. They wonder why the term “lady” has become such a no-no. Women, on the other hand, start questioning whether or not they should wear perfume or jewelry or dress the way they normally would. “Am I somehow encouraging harassment?” they wonder.


“Awareness of the issue is good,” Kipnis says, “but we have to move away from the kind of reactive training we’ve been offering (since much of this training was established in the wake of the Anita Hill-Clarence Thomas debacle) and move toward more proactive, inclusive training that increases our overall understanding of each other’s behaviors.”


If sexual harassment courses have created a hairline fracture between men and women, diversity-awareness programs have become the wedge that’s cracking those relationships apart. Not that awareness of our differences is bad, especially since greater understanding of each other is our goal. The problem is that in many companies diversity programs have been mismanaged. They have become what George Simons calls “a faddish fix-all,” offered by inexperienced trainers to fulfill some vague HR mandate. Furthermore, white males believe diversity programs simply encourage women and minorities to vent their anger, which only increases the simmering antagonism between women and men.


Ken Richardson, a white male administrator with the Licking County Sheriff’s office in Ohio, was one of five white males in a racially and sexually diverse group of 30 who attended a week-long diversity program in 1992. Having lived in a mixed neighborhood and abroad, Richardson says he has always respected differences. But, as reported in Business Week, Richardson says other participants at the training session blamed him for everything from slavery to the glass ceiling, and the instructor fed into this white-male bashing. “I became bitter and remain so,” he says.


In an attempt to address this bitterness, companies such as AT&T have started to offer workshops with titles such as: “White males: The label, the dilemma.” The goal, according to AT&T spokesperson Burke Stinson, is to allow men to talk about their growing feelings of resentment. “White men don’t want to be categorized or reduced to a cliche anymore than anyone else does,” he explains. Courses such as this bring the diversity issue full circle by addressing everyone’s concerns, and they’re a good first step toward bringing white men back into the corporate melting pot. But male resentment runs deep and stems not only from diversity-awareness programs, but from strategic diversity goals as well.


Recognizing the business benefits of a diverse work force, more and more companies are establishing goals and timetables for hiring more women into management positions and “non-traditional” jobs. Some companies are even holding management personnel accountable through their paychecks for promoting more women. It’s an important step on the way to diversity and equality, and women champion these efforts. Some men, however, believe these programs lead to the promotion of less-qualified females, especially in organizations where, because of past discrimination, managers are forced by consent decree to hire a certain percentage of women.

Several years ago, at the Angeles National Forest in Arcadia, California, a consent decree mandated that the organization hire more females, provide written justification whenever a woman wasn’t hired, file quarterly reports on the makeup of the work force, and provide ongoing training on issues related to sexual harassment and sexual discrimination.


According to Sandiann Engh, employee development specialist, the male workers believed that some of the women hired into positions such as police officer and smoke jumper weren’t nearly as qualified as many of the men who had applied, and that managers had hired women simply to fulfill quotas and avoid the paperwork hassle. The men believed hiring less-qualified people put their own lives at risk, and they were angry about it. Furthermore, after several years of mandatory sexual-harassment training, everybody—men and women alike—was on edge and “closed down.” The women felt defensive; the men, resentful.


Resentment is something many men in the work force are feeling these days, and who can blame them? Diversity programs and sexual-harassment courses have been designed primarily with the needs of women in mind. Men are portrayed as the bad guys, the perpetrators, the oppressors, the force to fight against. Because of this, men feel their needs go unrecognized, and this is nowhere more apparent than in the way work-family programs have been marketed to employees.


According to Harris Sussman, president of Workways, an organizational consulting firm in Cambridge, Massachusetts, many men are starting to feel marginalized and neglected because their needs as family members are being overlooked. “Family-friendly policies are written as if only women are parents and, as a result, a lot of men believe their role as a parent isn’t valued by management,” he explains. These policies talk about working mothers, single mothers, mothers with sick children. “But men are parents too, and my advice for HR people is to understand that these directives shouldn’t address women only. This only adds to the tension between men and women.”


Relieving the tension requires first recognizing there’s a problem.
Consultants who deal with workplace gender issues seem to agree that managers have ignored the mudslinging between men and women just about as long as they can. “It’s been possible to push gender issues out of the way, so we’ve been doing it to the greatest extent possible,” explains Mary Martinez, leader of the work force diversity center at Organization Resources Counselors Inc. in New York City.


One theory of why gender issues have been ignored says that because women are the keepers of relationships in this society, they’re more likely to notice tension and inequities before their male counterparts. Prior to conducting a class on gender issues, Tingley asked 100 lawyers—50 men and 50 women—if they thought gender relations were a problem at their firm. Not one male lawyer recognized that there was a problem, whereas 100% of the women said there was.


“Because men aren’t very relationship-oriented, they might not be as compelled to pursue programs designed to alleviate gender tension,” Tingley says. And since men still hold most of the top HR positions, this could explain why gender relationships at work aren’t being adequately addressed.


But an even more likely reason is that gender tension is such a loaded topic. It’s fraught with emotion and disagreement. Men and women not only have trouble agreeing on the source of the problem, but within each sex there’s great debate.


The first step toward defusing the tension is for HR people to acknowledge there is a problem between men and women in the workplace, and that a lot of those problems are subtle. Blatant sexual discrimination and harassment come to the attention of the HR department, but HR never hears about a lot of the awkwardness of micro-inequities—such things as a woman’s point of view not being acknowledged at meetings. It’s up to personnel professionals to go looking for those problems.


At Deloitte & Touche, L.L.P., based in Wilton, Connecticut, partners formed a task force in 1991 to find out why so many talented women were leaving the firm prior to becoming candidates for partnership. One of the reasons, the task force discovered, was that women were constantly confronting negative stereotypes about them by the male senior partners. During a 10-year period, the company had an enormous influx of women into professional positions but there had never been any discussion about what it was like to be a man or woman working at Deloitte & Touche, explains Karen Graci, senior manager for national HR.


Once the firm understood that sexual differences were getting in the way of productivity, it was able to initiate a dialogue between men and women. Through a series of two-day workshops, attended by some 5,000 managers and partners, the firm sought to understand its gender issues, uncover assumptions related to gender, and recognize the business implications of gender tension. To keep the dialogue going, the company regularly brings in external speakers on gender topics, covers gender issues in in-house newsletters and memoranda, and sponsors focus groups where men and women can air their concerns.


Creating an environment, like Deloitte & Touche did, in which people can air their concerns and confront each other in a nonthreatening way, is a crucial second step—after acknowledging there is a problem—toward thawing the big chill between men and women. Remember the situation at Angeles National Forest, where women were ostensibly hired over more qualified men, and everybody was tense because of the mandated sexual-harassment prevention courses? Well, in an attempt to remedy the situation, Engh hired Kipnis and his partner, Elizabeth Herron, from the Gender Relations Institute, to host a series of what they called “gender summits.”


“Too many companies rush for a quick-fix solution and then are disappointed. I don’t think a four-hour training course will fix anything.”


Male and female employees were brought together in groups of approximately 20 to air their issues about working with the opposite sex, including their frustration over quotas, communication-style differences and the way sexual-harassment training and the forced “reporting environment” made everyone feel as if they were working in a fishbowl.


As Kipnis and Herron explain, relations between the sexes had gotten so contentious that the men and women had to be separated at the start of each summit—the men went with Kipnis, the women with Herron—before they would talk openly. When they were brought back together, the problems experienced by each group were shared and, together, the men and women talked about their feelings related to the work environment. Each summit then ended with a discussion about what employees liked about working with the opposite sex.


What kind of impact did the summits have on gender relations back at work? “By allowing people to air their views, a great deal of tension was alleviated,” Engh says. And does she think the change will have a lasting impact? “Probably not. I think a change of this magnitude—men truly accepting women in the workplace—will require a generation. Too many companies rush for a quick-fix solution and then are disappointed. I don’t think a four-hour training course will fix anything, but in the short term, it helped.”


E.I. DuPont De Nemours and Company in Wilmington, Delaware, also has started to grapple with gender differences through a three-day program called “Men and Women Working as Colleagues.” The voluntary workshop is designed, as the title suggests, to help men and women deal effectively with co-workers of the opposite sex. Open and promoted to everyone in the company, it covers interpersonal and leadership skills, raises issues related to workplace changes, and includes a host of team-building exercises. What prompted DuPont to offer such a course? “Our industry, like many others, has historically been male-dominated,” explains Bob Hamilton, diversity consultant in HR. “We realized that our male employees have had little experience and training in how to work with women. We’ve never learned how to compete with women, and we’re unsure as to whether the way we interact and compete with men will work as well with the opposite gender.”


Although ahead of most companies in terms of dealing with gender issues, even DuPont has a long way to go. Since launching its course five years ago, only 2,500 employees—out of a U.S. work force of 90,000—have participated. Realistically speaking, how much impact can less than 3% of the work force have on the rest of the employees? The point is, truly positive changes in gender relations will take time. “Trying to change an attitude isn’t like learning a new software program,” Tingley says.


Personnel professionals who are courageous enough to begin grappling with gender issues can rest assured that by recognizing there’s a problem they’re already ahead of the game. In contemporary American society, everybody’s role is undergoing revision, and the standards of acceptable behavior are changing rapidly. “The workplace needs to catch up with the rest of the world,” says Sussman, because HR policies that make archaic assumptions about men and women will only contribute to the tension that already exists between the two sexes. HR professionals should be looking at the realities of people’s lives today.


If George Foreman and Mohammed Ali were brought together in that boxing ring described earlier, we’d expect them to fight using their particular strengths. Although their skill might be equal, they would probably exhibit different techniques. It’s what makes the sport interesting. It’s what encourages each fighter to improve. It’s what keeps the spectators engaged. Furthermore, between Ali and Foreman, we accept that the battle is about power, about being the best, about coming out on top.


Unlike in a heavyweight match, in the battle of the sexes we don’t want a clear winner. But we do want our differences to make our companies better. And before we can tap into the power of our differences, we have to acknowledge the differences in our power.


If you find yourself thinking that for the most part men and women do get along fairly well together at work, you’d be both right and deluding yourself. Yes, we get along together because we’re forced to, but a lot of men and woman are having trouble with that forced togetherness, and it’s high time HR paid attention. As Catalyst’s Mary Mattis says, “Corporate America would like to think it has got this thing licked. But it doesn’t.” In fact, it has only just begun.


Personnel Journal, May 1995, Vol. 74, No. 5, pp. 50-61.



Posted on May 1, 1995July 10, 2018

How to Deal with Gender Strife in the Workplace

Because corporate executives are so afraid to admit that escalating gender tension is a problem in the American workplace, Personnel Journal could find no companies that have a comprehensive strategy for tampering it. Because no good program models exist, no one is really sure how to best deal with gender tension among employees.


Based on our research, we suggest that HR professionals:


  1. Admit that gender strife might be a problem at your company.
  2. Conduct employee surveys to learn how gender issues manifest themselves at your particular workplace.
  3. Start an ongoing dialogue between your male and female employees. Gender “summits” and communications workshops are a good first step, but don’t stop there. Recognize that men and women may have different reactions to every corporate initiative. Learn what those sensitivities are, then address them as an ongoing part of business planning.
  4. Review HR programs such as sexual harassment prevention courses, diversity initiatives and work-family programs to make sure the needs of both men and women are addressed. Also, don’t market these programs to just one gender or the other.
  5. Address employee stress pro-actively by searching for ways to alleviate the sources of that stress, such as overwork, miscommunication, restructuring, and so on. When employees feel threatened and overwhelmed, they’re most likely to lash out at people with obvious differences. By keeping stress to a minimum, you’ll be well on your way to creating a harmonious work force.
  6. Be patient. Men and women working together is still a relatively new phenomenon. Whereas younger people are more adept at overlooking sexual differences, older adults may still be guided—or misguided—by outdated stereotypes. Getting used to the co-ed workplace will take time.

Personnel Journal, May 1995, Vol. 74, No. 5, p. 52.


Posted on May 1, 1995July 10, 2018

Guidelines for Managing an Alliance

Guidelines for managing an alliance:


  • Conduct a cost-benefit analysis of favorable and unfavorable conditions. Control them to maximize revenues, minimize costs and lower risks
  • When possible, start an alliance small and build on trust
  • Avoid exchanging market access between competitors
  • Identify and address conflicts over activities critical to success, time horizons or government regulation
  • Generate widespread internal political support
  • Place operating managers on the negotiating team
  • Send divisive topics to higher-level negotiation groups
  • Structure the alliance with its own board of directors to speed up the approval process
  • Select a CEO on the basis of appropriate skills, style and ability to develop an understanding of goals and competitive advantages that are to be shared between the alliance partners
  • Do not require the alliance to prepare two sets of financial control reporting systems, one for each partner
  • Stay alert to early signs of termination: inflexibility in adapting operating procedures; combative negotiation style; conflict over management appointments; politicking; and a reluctance to reinvest
  • In the termination process, determine what must be accomplished in order to allow the remaining partner to keep the former joint activity going
  • When negotiating termination procedures, do not establish a precise termination value formula nor take a detailed, legalistic approach that breeds mistrust.

SOURCE: The Conference Board


Personnel Journal, May 1995, Vol. 74, No. 5, p. 30.


Posted on April 1, 1995July 10, 2018

Are You Depressed

The following questions, developed by the National Institutes of Mental Health, can help you determine whether you or someone you work with suffers from serious depression.


(Answer yes or no)


  1. I (you) feel downhearted, blue and sad.
  2. I (you) don’t enjoy doing the things that I (you) used to do.
  3. I (you) feel that I’m (you’re) not useful or needed.
  4. I am (you are) losing weight.
  5. I (you) have trouble sleeping through the night.
  6. I am (you are) restless and can’t keep still.
  7. I am (you are) frequently tired for no reason.
  8. I am (you are) not thinking as clearly as I (you) should.
  9. I (you) feel hopeless about the future.
  10. I (you) have felt so low that I’ve (you’ve) thought about suicide.

You or someone you work with may be suffering from depression if you or they answered yes to at least 5 questions and the symptoms noted in questions 1 or 2 have persisted beyond two weeks. If you answered yes to question 10, you should seek professional help immediately.


SOURCE: Personal Best, May 1994, Vol. XII, No.5


Personnel Journal, April 1995, Vol. 74, No. 4, p. 123.


Posted on April 1, 1995July 10, 2018

Domestic Violence Warning Signals

People living with domestic violence may not talk about it, but they do show signs that HR people should be aware of. Some of the warning signals are:


Repeated physical injuries. An abused person may show up with a broken finger one month and a bruised arm the next, both of which she explains away.


Isolation.
A person who’s being abused might be quiet and refuse to make acquaintances or friends at work. She may always eat lunch alone and will rarely talk unless someone speaks to her first.


Emotional distress.
An abused person may be found crying at work or be very anxious.


Despondence or depression.
Everyone may feel this way once in a while, but where there’s a pattern there’s probably a problem. The person will show no affect, have no intonation in her voice.


Distraction.
An abused person’s quality of work will vacillate for unexplained reasons. She may have a few weeks when everything is fine, then the quality of her work may suddenly diminish for no apparent reason.


Reaction to phone calls.
If she is being beaten, she may also be receiving a lot of harassing phone calls or faxes. She becomes physically upset with each call.


Absenteeism.
Domestic violence leads to frequent medical problems and fears about leaving children home alone with the abuser.


SOURCE: Jude Miller, domestic violence therapist for five years and director of operations for United HealthCare’s OPTUM Medical and Human Risk Management Services.


Personnel Journal, April 1995, Vol. 74, No. 4, p. 65.


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