Recognition Management and Maintenance

NAER

Recognition Management and Maintenance

Table of Contents

Page

Purpose ii

Learning Objectives ii

Introduction 1

Setting the Stage 4

Management Framework 11

Job Analysis – Designing and Maintaining a Recognition Strategy 16

Job Analysis – Communication Planning 18

Job Analysis – Training 26

Job Analysis – Events and Celebrations 33

Exercise – Roles and Responsibilities 34

Exercise – Progress Check 35

Program Management Components 37

Managing Through Cross-Functional Networks 42

Labor Unions Inclusion 46

Formal Guidelines and Processes 47

Exercise – Progress Check 54

Budgeting and Outsourcing 55

Tax Implications 57

Outsourcing Considerations 63

Exercise – Progress Check 69

Maintenance – Change and Flexibility 70

Programmatic Life Cycle 73

Sarbanes-Oxley (SOX) 80

Exercise – Progress Check 82

Overall Summary 83

Bibliography 84

Appendix 85

Acknowledgements 90

PG-i

4/23/07 ã 2007 by the National Association for Employee Recognition

PG_CRP III_Final 4.23

NAER

Recognition Management and Maintenance

Purpose

The purpose of this course is to provide you with a framework and tools to use for recognition management and maintenance. These methodologies are supported by the National Association for Employee Recognition (NAER) and are exhibited through several Best Practices examples.

Learning Objectives

By the end of this module, you will be able to:

·  Define management components based on current needs

·  Identify necessary key roles and responsibilities

·  Define a framework for a Formal nomination and selection process

·  Link budgeting industry standards to current organizational practices

·  List three key aspects for a successful Recognition Budget

·  Seek current tax data

·  Identify current and desired tracking and reporting capabilities based on success factors

·  Determine program maintenance, change, or exit strategies

PG-ii

4/23/07 ã 2076 by the National Association for Employee Recognition

PG_CRP III_Final 4.23

NAER

Recognition Management and Maintenance

Introduction – Recognition Management and Maintenance

Welcome to Recognition Management and Maintenance (RMM), which is part of the Certified Recognition Professional (CRP) series.

About CRP

To earn a CRP designation, candidates will complete four facilitator-led courses and pass the required testing. The NAER Certified Recognition Professional program sets the standard for assessment of an individual’s abilities and provides a means for Recognition Professionals to acquire the needed skills and knowledge in order to excel.

The performance standards include criteria for effective recognition strategy and programs with real, business results. For example, certified recognition specialists are trained to determine the ROI for a recommended recognition strategy. They learn how to align recognition goals with enterprise goals and develop programs that will meet them, resulting in measurable, bottom-line results for the organization. They learn how to establish cost-effective processes for nominations, and award procurement and fulfillment.

Activity

Based on your personal assessment, write down at least two or three recognition efforts or programs that were successful and what specifically made each successful:

Recognition success

If you had an unlimited budget, how would you envision enhancing or changing recognition to make it more effective?

Course Agenda

·  We will take one morning and two afternoon breaks with a working/networking lunch.

·  Setting the Stage

·  Management Framework

·  Multi-Faceted Management

·  Budgeting and Outsourcing

·  Maintenance

·  Summary

·  Study Time

·  Exam

Training Materials You Will Receive

Participant Guide

Includes:

·  Models

·  Worksheets

·  Best Practice Examples

·  Article Excerpts

·  Progress Checks

·  Reference and Resource Suggestions

·  Course Evaluation

Setting the Stage

Section Learning Objectives

Following this section, you will be able to:

·  Name the Seven Best Practice Standards

·  Describe the importance of alignment

·  Identify how the elements supported by the acronym SIRAR can help engage management

Key Management Elements

It is pretty safe to say that a successful recognition effort needs to actively incorporate the Seven Best Practice Standards. And although it may just be a matter of who does what and when, when reviewing your recognition systems, you will want to make sure you have someone covering each of these bases.

As we can see from the chart below, measurement is a part of each aspect, and the Seven Standards can be incorporated into four basic planning phases:

PHASE / STANDARDS
I. Assessment = prework / Measurement
II. Strategy / 1.  Recognition Strategy
2.  Management Responsibility
3.  Measurement
III. Implementation / Measurement
4.  Communication Planning
5.  Recognition Training
6.  Events and Celebrations
IV. Review / Measurement
7.  Change and Flexibility

Key Management Elements (cont'd.)

Recognition Management and Maintenance

In addition to some of the Seven Standards (highlighted below), this will also focus on:

·  General recognition program management

·  Communications

·  Training

·  Budgeting

·  Outsourcing

·  Events and Celebrations

·  Change and Flexibility - Maintenance

Strategic Alignment – Review

In Strategic Planning and Measurement we talk about this process flow. And for those of you who have the book, The 1001 Rewards and Recognition Fieldbook by Bob Nelson, this is an adaptation of that model:

Management Responsibility – Review

At a very high level, the recognition-related management focus should look at:

·  Identifying qualifications, responsibilities, and authority required for recognition personnel responsible for managing the recognition program.

·  Determining and obtaining the resources required to manage and maintain the recognition program.

As we discussed in Structuring Recognition Programs for Success, if we were to summarize management responsibility into five key aspects, it would be:

SIRAR

Can you name the five words that correspond with the acronym?

S ______

I ______

R ______

A ______

R ______

Management Responsibility – Review (cont'd.)

Here are the five corresponding words and general explanations for each:

Strategy / ·  Senior management defines and documents its overall recognition strategy, including policies, procedures, and program objectives that reflect its commitment to recognition.
Involvement / ·  Senior management supports the recognition program, communicates their support to all employees, and is personally involved in the program.
Resources / ·  Senior management identifies and provides adequate resources to manage and maintain the recognition program.
Accountability / ·  Senior Management makes recognition part of management review and agendas. All managers know that senior management will hold them responsible for participating constructively.
Review / ·  Senior management periodically reviews the recognition program to determine effectiveness.

PG-54

4/1/07 ã 2007 by the National Association for Employee Recognition

PG_CRP III_Final 4.23

NAER

Recognition Management and Maintenance

Management Framework

Section Learning Objectives

Following this section, you will be able to:

·  Compare your organizational structure with those in a survey group

·  Identify key resources you need to manage / administer recognition

·  Outline general roles and responsibilities

·  Define comparisons / differences to your organization’s structure with other organizations

Survey Demographics

For your prework, you were asked to answer a series of questions. Let’s see how those of you from this class answered the assessment as compared to our survey sampling of 46 organizations:

QUESTION / CLASS RANGE / SURVEYED ORGANIZATIONS
(46)

1. How many employees are there in your organization?

/ 1-99
100-499
500-999
1,000-4,999
5,000-9,999
10,000-19,999
20,000+ / 4%
4%
2%
22%
11%
11%
46%

1. Do you consider your recognition initiative to be:

a.  Centralized
b.  Decentralized
c.  Other – please explain / Centralized
Decentralized
Other / 48%
24%
28%

1. How many resources are solely dedicated to Recognition Management? (Per smallest business unit)

a.  ____ full-time
b.  ____ part-time / full-time
part-time / 37%
i.  25%
ii.  50%
iii.  75% / 25%
50%
75% / 24%
4%
2%
33%
c.  If it is not TRULY full-time OR part-time, please explain. / If it is not TRULY full-time OR part-time, please explain.

Survey Demographics (cont'd.)

QUESTION / CLASS RANGE / SURVEYED ORGANIZATIONS
(46)

1. What approximate employee per administrator ratio do you have?

/ HUGE range anywhere from:
1:60
1:10,000

1. To what functional area do your recognition resources report?

/ HR
Sales
Administration
Finance
Marketing
Specific BU
Other / 50%
2%
9%
0
7%
11%
22%

1. Are all your recognition initiatives administered out of the same functional area?

a.  Yes
b.  If no, please specify / Yes
No / 41%
59%

Titles and Responsibilities

The titles and actual responsibilities of those who administer recognition within an organization might be as varied as the organization itself – and are less critical than the actual responsibilities.

Activity

Work with the others at your table to write down some possible titles and a list of possible responsibilities:

Titles:

Responsibilities?

Basic Job Analysis

In 2004, NAER conducted a general job analysis on the following general functions:

·  Designing and Maintaining a Recognition Strategy

·  Program Communications

·  Training

·  Events and Celebrations

As we just found through the discussion, the number of potential titles and general responsibilities are varied. The following pages will outline general job duties for the functions listed above.

Activity

In the corresponding job analysis charts, take an opportunity to indicate whether your organization has assigned someone to each specific task.

Job Analysis – Designing and Maintaining a Recognition Strategy

Indicate who performs this function or whether it is a gap.

RESPONSIBILITIES /

YES / WHO

/

NO

/
Work with the organization to design a comprehensive recognition strategy.
Define the recognition program goals and objectives and a means for tracking them.
Develop and administer recognition budgets.
Establish and define the structure of the recognition program (e.g., the employee recognition committee), including membership, empowerment, and administrative support.
Design incentive programs if appropriate. (That is, using rewards for meeting goals within a specified time period; e.g., sales incentive programs.)
Negotiate programs with labor organizations, if appropriate.
Document recognition program procedures for all aspects of the program, including nomination, selection criteria, notification, award selection, procedure for tax or income purposes, event-planning guidelines, tracking, etc.
Design program elements to implement the strategy.
Develop and manage a project plan for executing the recognition strategy.
Maintain a centralized process for procuring recognition resources and awards.
Select, negotiate with, and manage recognition rewards service providers.
Design a process for continuous improvement of the recognition program.
Work with appropriate resources to develop and deploy employee and customer surveys.
Analyze, report, and use results to improve the recognition program.
Facilitate a periodic audit of the recognition program.

Activity

Review the responsibilities listed on this and the previous page and summarize any activity gaps you may have uncovered.

Job Analysis – Communication Planning

RESPONSIBILITIES /

YES / WHO

/ NO
Establish a strategic communication plan that communicates all aspects of the recognition strategy, including program objectives, recognition processes, events, or celebrations.
Work with others as needed to develop and disseminate messages using a variety of communication tools to reach audiences.
Periodically measure the effectiveness of the communication plan; modify plan and/or implementation as needed.
Solicit / welcome employee feedback and modify the communication plan and/or implementation as needed.
Identify changing organizational needs and modify the communication plan as needed.

Where could you spend more time to ensure a more effective communication plan?

Communication Planning Logistics

In Structuring Recognition Programs for Success, we outlined some communications basics for any communications plan. These are:

1.  Message – What do you want to communicate?

2.  Audience or stakeholders – Who is the recipient of the communications?

3.  Method – What kind of communications vehicles will be used?

4.  Resources and Responsibilities – How will the communications be executed?

Here’s another model / template from a 2006 executive summary report, How to Communicate Business Strategy to Employees, Melcrum Publishing provides the following communications plan template from RBC Financial:

COMMUNICATIONS PLAN

OVER-RIDING STRATEGY:
KEY COMMUNICATIONS OBJECTIVES:
Target Audience
Desired Outcome / Behavior / Issue / Strategy / Tactics / Timing / Measures / Respons.

Recognition Communications – Measurement

In the same report, Melcrum Publishing provides the following matrix, which plots Employee Understanding and Support.

This communications measurement approach is used by Dow Corning. Employees are quizzed through multiple-choice questions on how well the corporate strategy is understood and their level of commitment.

The assessment results are then plotted into the four groups below from which they can track future movement from one quadrant to the next.

Employee Understanding / Support

INTELLECTUAL / HIGH
Bystanders / Champions
Weak Links / Loose Cannons
LOW / HIGH

EMOTIONAL COMMITMENT

/

In addition to communications, what additional tools could be used to increase knowledge and commitment?

Into which quadrant do you think middle management MIGHT fall?

Recognition Communications – Measurement (cont'd.)

A 2006 Watson Wyatt study of 267 U.S. companies shows that companies with the most effective employee communication programs provided a 26 percent Total Return to Shareholders (TRS) from 1998 to 2002 compared to a -15 percent TRS experienced by firms that communicate least effectively. The study also found that a significant improvement in communication effectiveness is associated with a nearly 30 percent increase in market value.

The respondents are primarily large companies and represent all major industry sectors in the United States.

The study identified nine communication practices that are directly linked to an increase in shareholder value. The three practices associated with the largest increase in shareholder value are:

1. Driving managers' commitment to effective communication

1. Having a formal communication process in place (including a documented communication strategy and implementation plan), and
2. Creating a clear line of sight between business objectives and employees' jobs

The right kind of communication at the right time not only drives behavior change, but also offers tremendous potential for creating shareholder value and generating significant ROI.

Recognition Communications – Measurement (cont'd.)

Another key finding from the study is that it matters how a company measures communication.

Companies that use hard measures such as:

·  Productivity

·  Behavior change, and