High Performance Work Place

1. High Performance Work Place

2. Early History

3. Changing Times

4. Today

5. Core Values

6. HPWP Successful organizations that want to move to the “next step” are changing their approach toward people. WHY?

7. HPWP Profits vs. People “80% of what any organization does can be done equally well by any other organization; competitive success depends entirely upon the other 20%---which is people.”

8. HPWP Why are Organizations Changing… People are the Key Asset The Workforce is Changing Traditional Methods are Less Effective

9. HPWP Traditional Assumptions People by Nature… • Lack integrity • Are fundamentally lazy and desire to work as little as possible • Avoid responsibility • Are not interested in achievement • Are incapable of directing their own behavior Are indifferent to organization needs Prefer to be directed by others Avoid making decisions whenever possible Are not very bright

10. HPWP Adversarial Relationships Us vs. Them

11. HPWP Symptoms of Disharmony Absenteeism Tardiness Turnover Low Productivity Frequent Accidents Discrimination Charges Low Morale Theft Vandalism Spoilage/Damage Low Quality Unionization

12. Symptoms of Harmony Workers’ Comp MOD 45% Decrease 2008 1.85 2012 .98 Turnover 66% Decrease Productivity Receiving 103% Increase Shipping 30% Increase Inventory Control Losses 94% Decrease

13. HPWP A Different Approach Contrast This… With What it Could Be

14. HPWP A Different Approach A Philosophy based in the belief that… Approximately 95% of All Employees at All Levels are Responsible Workers and Good People Most of our Management Policies and Practices were Focused on Protecting PDC from the 5% Marginal Employee Group When these Policies and Practices were Applied and Enforced Equally to All, They had a Negative Impact on the 95%.

15. HPWP Let’s define the 5%er— Someone whose motives are not good Their goal is to work as little as possible and to get away with as much as possible They are not a team player and are not trustworthy How many 5%ers work for you?

16. HPWP High Performance Work Place It’s a Work Place that fosters maximumperformance and is supported by the following 8 key elements: • Positive Assumptions about People • Identification & Elimination of Negatives • Mutual Trust & Respect • Open, Two-Way, Adult-to-Adult Communication • Training and Development • Employee Involvement & Empowerment • Competitive Wages and Benefits • High Expectations

17. Positive Assumptions About People HPWP People by Nature… Have Integrity Work Hard toward Objectives to which they are Committed Assume Responsibility with those Commitments Desire to Achieve Are Capable of Directing their own behavior Want the Organization to Succeed Are Not Passive or Submissive Will Make Decisions Within their Commitments Are Bright

18. Positive Assumptions About People HPWP One Standard of Conduct “Every associate is expected to act in the best interest of Pate Dawson Company and his/her fellow associates.”

19. Identification & Elimination of Negatives HPWP A “Negative” is defined as: Anything that minimizes vs. maximizes a person’s feeling of VALUE to the organization.

20. Identification & Elimination of Negatives HPWP Negatives take Four Forms: Management Behavior based on Negative Assumptions Policies/Practices created for the 5%ers Creation of a Two-Class Citizenship Culture Disproportionate attention to equipment and facilities vs. PEOPLE

21. Mutual Trust & Respect HPWP APPLICATIONS Elimination of Traditional Management Practices Probationary Period Behavior-based work policies and rules Security checks on all bags in/out Locked cabinets, doors and segregated building access Progressive Discipline Designated number of annual sick leave/days Etc.

22. Open, Two-Way, Adult-to-Adult Communication “The way you talk to a neighbor you like” • Open: • We are not trying to hide anything – No Secrets • Adult-to-Adult: • We are all adults • Two-way: • You get better understanding, more involvement, and a better outcome

23. Training HPWP “The time and dollars invested in personal and professional development reflects an organization’s VALUE for its people”

24. Employee Involvement & Empowerment “People should be involved in every decision that affects them”

25. Employee Involvement & Empowerment Opportunities for Employee Involvement Setting Performance Goals and Objectives Productivity, Quality, Safety, Scheduling Problems and Solutions Development of Team Work Policies, Practices & Standards New Team Member Selection/Hiring Teams Termination of 5%ers

26. Competitive Wages & Benefits Objective is to make it a “non-issue” Surveys conducted/researched annually All market data and range data open to all employees

27. High Expectations HPWP • The first 7 elements guarantee: • Employee loyalty and retention • Excellent community reputation • Ability to attract the best people • High Expectations guarantees: High Performance

28. Bottom Line Philosophy HPWP PEOPLE Building PROFITS with

29. HPWP We Couldn’t Change Our People

30. HPWP We DID Change The Environment in which Our People Function

31. HPWP Then Helped Them Change Themselves