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Feature: At Google, the Proof Is in the People   

Optimas Update: The Best Get Better
A roundup of what's happened with a few Optimas winners since their awards were given.
By Samuel Greengard
f there's one constant in today's business environment, it's that yesterday's award-winning initiative is today's old news. The rapid pace of change--and the enormous influence of technology--has forced organizations to continually evolve and adapt.

    Nowhere is this fact more apparent than in human resources. Since Workforce began recognizing best practices in human resources with Optimas Awards in 1991, the world has changed immeasurably. The Internet has obliterated paper, diversity and equality have become more than buzzwords, benefits have evolved, and human resources departments increasingly are assuming strategic responsibilities. Not surprisingly, many past Optimas winners continue to embrace change. In some cases, they've refined existing programs. In other instances, they've created new programs and adopted an assortment of HR technologies to ramp up performance. All of those contacted for recent interviews recognize that today's competitive landscape demands ongoing effort and innovation.

     One of the most prominent themes among these exceptional companies is an emphasis on developing human capital--through avenues such as training, e-learning, succession planning, and knowledge and performance management. "Today, developing skills and competencies is essential," says Lynda Spielman, deputy director of deployment at Deloitte Touche Tohmatsu. The firm, the 2002 winner in the Global Outlook category, recently has established a Global Professional Readiness Program to "prepare a 'farm team' of young professionals to work overseas, well in advance of their actual transfer." The goal: "Unleash the full potential of our people to be successful in their assignments." Deloitte Touche Tohmatsu has added the program to an already robust global-development plan.

    The same thinking permeates WellPoint, a 2002 Competitive Advantage winner. Over the last year, the health-care company has refined its performance-management system to include more specific metrics and more detailed objectives. Employees can monitor their progress, and the organization can track professional development more closely. "It is helping us create a more objective and uniform way to measure performance based on clearly defined goals," says Barbara McNamara, vice president of human resources.

    The 2000 General Excellence winner, SAS Institute, has turned to performance management and enhanced succession planning, using a combination of technology and business process re-engineering. Human resources director Jeff Chambers says that the idea is to have "the entire organization line up to the same set of common goals and ensure that everyone is rowing in the same direction. That way, we can achieve a higher level of organizational performance." The system complements expanding training and e-learning initiatives.

    Synygy, which captured the 2001 Vision award, has added refinements to its thriving performance-management system. Ed Steinberg, vice president of human resources for the software and services firm, has tweaked the system so that the organization can measure collaboration and team skills--two of the underpinnings of today's evolving workplace. "We're using the system to make key decisions about which employees to invest in and how much to invest," Steinberg says. "It's also factoring into hiring and firing decisions." Synygy also enhanced its mentoring process and added training and development for its 400-plus employees-up from 260 in 2001.

    At First USA--now a subsidiary of Bank One--career development has always served as a central theme. The company, a 2001 Quality of Life winner, used to have an employee-development adviser to help employees stay on a career track within the company. Last year, the bank eliminated the position and asked employees to take on the responsibility themselves. It recently added managerial training focused on satisfaction and retention and is currently in the process of adding a knowledge-management component "to better manage employee training, development, and professional growth," says Jane Trice, vice president of performance improvement. A December 2002 poll found that 81.2 percent of the firm's employees were satisfied or highly satisfied with the company.

    FedEx, a 1992 winner in the Competitive Advantage category, has pumped up its training to reflect its commitment to quality. FedEx University offers extensive classroom instruction and e-learning, the latter through a 24/7 Web portal. The system links to a performance-management application. The company also has improved skills testing to better match applicants with jobs--and cut down on turnover. Finally, an automated recruiting system is helping the firm to find better applicants faster than ever before.

    Solving the recruiting puzzle is no simple task. Yet several past Optimas recipients have achieved solid gains through a combination of vision and innovation. Texas Instruments, a 1998 General Excellence winner, now offers employees a $3,000 reward for successful referrals. It also began using a team interview approach for critical hiring decisions in 2002. "HR has helped our leadership understand that people are our most important resource," says Steve Lyle, director of worldwide staffing.

    Others, such as 2002 Partnership winner Blue Valley School District in Overland Park, Kansas, have been hit hard by the lagging economy. A staggering 86 percent of the district's budget is tied up in human resources, and cutbacks have created an enormous challenge. Assistant superintendent Al Hanna notes that the district has trimmed new-teacher orientation, has scaled back a successful mentoring program, and was forced to find a new partner when the University of Kansas dropped out of a teaching-development program. Nevertheless, Hanna says, "our program is still making a difference for new teachers." During the 2001-2002 school year, Blue Valley managed to retain 95 percent of new teachers--far above industry norms.

    Some past Optimas winners have used the downturn in the economy to their advantage. Qualcomm, which captured the 2000 Optimas in the Service category, is now able to hire from a deeper pool of available talent. Dan Sullivan, executive vice president of human resources, reports that the acceptance rate for new hires has increased from 70 to 90 percent. "We're in a better position to compete, particularly when the economy heats up," he says.

    A number of Optimas winners have increased benefits for employees. Bank of Montreal, a 1997 General Excellence winner, has expanded a job-sharing program, allowed a greater number of employees to work reduced hours or alternative schedules, and added an employee assistance program. "We want to provide everything needed to help people balance work life and family life," says Rose Patten, executive vice president of human resources. Likewise, The Container Store, the 2001 General Excellence recipient, has boosted contributions to workers' 401(k)s and added domestic-partner benefits--while maintaining pay rates 50 to 100 percent above industry averages. "We look for creative ways to build the business and attract and retain great people," says CEO and cofounder Kip Tindell. SAS Institute has added hair salons, car-detailing facilities, on-site dry cleaning, and coverage for experimental cancer treatments to an already extensive list of amenities, including free child care and exercise facilities.

    Some organizations, such as the City of Hampton, Virginia, a 1995 General Excellence Optimas recipient, have pushed forward with Total Quality Management. Within human resources, it has expanded training "so that employees are exposed to all functional areas of HR," says Dianne Randall Foster, director of human resources. The city also added performance-based rewards and pay, and uses human resources teams to solve employee issues. That has helped it achieve a 90 percent satisfaction rate with citizens and distinguish it as an All-America City--one of only 10 in the United States to receive the distinction from the National Civic League.

    There's no single formula for success, and past Optimas winners understand that the quest for excellence never ends. On the front lines of business, it's all about rethinking and reinventing human resources on a daily basis.

Workforce, March 2003, p. S1 -- Subscribe Now!


Samuel Greengard is a contributing editor for Workforce. E-mail sam@greengard.com to comment.



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Feature Contents
Top of Feature

1. Workforce Optimas Awards 2003
Each year, Workforce celebrates excellence in workforce management with these awards, given in 10 categories, ranging from Competitive Advantage to Vision. Their work is nothing short of inspirational.

2. Optimas Update: The Best Get Better


3. Award-Winning Companies
This past winning companies demonstrate how HR can drive business results.

4. Get the Recognition You Deserve
You know -- and maybe even your CEO knows -- how your HR initiative created positive business results for your organization. Now, share your experience with other HR professionals.

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