ADR in the New Workplace: Raising the Bar on Employment Dispute Resolution

1. ADR in the New Workplace: Raising the Bar on Employment Dispute Resolution Harry Jonas, Ph.D. Manager, Organization Effectiveness April 27th, 2007

2. Agenda • Corning Background • Corning Values • Drivers of Employee Engagement • Employee Engagement Strategies • Summary

3. Founded: 1851 Headquarters: Corning, New York Employees: Approximately 26,000 worldwide 2006 Revenues: $5.17 Billion Corning Incorporated

4. Display Technologies Telecommunications Life Sciences Environmental Technologies Who We Are • World leader in specialty glass and ceramics. • We create and make keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences • We succeed through sustained investment in R&D, over 150 years of materials science and process engineering knowledge, and a distinctive collaborative culture.

5. Glass envelope for Thomas Edison’s light bulb Processes for mass producing the television bulb Ceramic substrates for automotive catalytic converters 1879 1947 1972 1915 1970 1984 Heat-resistant Pyrex® glass First low-loss optical fiber LCD glass for computers and flat panel TVs A Culture of Innovation

6. Awards • Four time National Medal of Technology winner • Malcolm Baldrige National Quality Award, Corning Optical Fiber in 1995 • Multiple Winner: Catalyst Award • Consistently one of FORTUNE magazine’s most admired companies • “Top/Best” company lists for Forbes, Working Mother, Industry Week, ComputerWorld, Black Collegiate, Automotive Industry, Best for IT

7. “Don’t look back…something might be gaining on you.” (Satchel Paige)

8. Corning Values Our values are the historic strength of our company, guide our every move and continue to set us apart from other companies. • Quality • Integrity • Performance • Leadership • Innovation • Independence • The Individual

9. Integrity Value Definition: • Integrity is the foundation of Corning’s reputation. We have earned the respect and trust of people around the world through more than a century of behavior that is honest, decent, and fair. Such behavior must continue to characterize all our relationships, both inside and outside the Corning network. Behaviors: • Act honestly and ethically in all relationships. • Treat others with trust and mutual respect. • Share thoughts, feelings, and information to make correct business decisions.

10. Individual Value Definition Definition: • We know that in the end the commitment and contribution of all our employees will determine our success. Corning believes in the fundamental dignity of the individual. Our network consists of a rich mixture of people of diverse nationality, race, gender, and opinion, and this diversity will continue to be a source of our strength. We value the unique ability of each individual to contribute, and we intend that every employee shall have the opportunity to participate fully, to grow professionally, and to develop to his or her highest potential. Behaviors: • Values diversity in backgrounds, styles, and opinions of others. • Takes responsibility for own development. • Encourages the full contributions of colleagues and co-workers. • Takes responsibility to help create a safe and organized work environment.

11. Values Deployment Risks • Definition Risk • Failure to provide specific behavioral guidance that reflects the Values • Integration Risk • Key policies and processes do not incorporate the Values • Alignment Risk • Absence of mechanism(s) to correct behaviors inconsistent with the Values • Sustainability Risk • Failure to enforce accountability for living the Values (drives dilution over time) Source: Corporate Leadership Council: Engaging the Work Force (2003)

12. Obvious Example of Deployment Risks

13. Key Drivers of Employee Engagement How satisfied are you with the recognition you receive for doing a good job? I am given a real opportunity to improve my skills in this company. Employee Engagement Index* How satisfied are you with your involvement in decisions that affect your work? In my work group employees are treated with dignity and respect, regardless of their background. • *Results of Stepwise multiple regression (R2 = .65) • *Engagement index = overall satisfaction, feeling valued • Items listed in descending order of contribution to overall variance

14. Selected Employee Engagement Strategies • Partnership (late 1980’s) • GoalSharing (early 1990’s) • iDMAIC (early 2000’s) • Values Toolkit (coming)

15. Steering Committee & Direction Organization Awareness & Support Evaluation & Renewal Strategy & Leadership Organizational Improvement Implementation Plan for Implementation Partnership • U.S. Manufacturing-driven (response to Asian competition) • Primarily in Union-represented facilities • High Performance Work Systems framework • Socio-Technical Systems work redesign • Led to new factory design principles and processes still in use today • Branched out beyond manufacturing to salaried professional groups

16. GoalSharing • Largest variable pay program within the company; all levels • Based on principles of reward sharing and broad-based business education • Balanced scorecard of goal categories (quality, cost, service) • Peer managers (not top management) review plans annually based on rigorous criteria • Annual payout ranges from $20MM to $40MM

17. iDMAIC • Personalized approach to Six Sigma process improvement • All employees encouraged to improve own work processes by applying Six Sigma tools • Simple steps to implement improvements – minimum of bureaucracy • Accelerates knowledge sharing across the company • Employees in some divisions link completed projects to cash and non-cash reward systems

18. Values Toolkit • Response to accelerated globalization • Objective to equip managers with options for corporate Values education (focus on two-way communication, real-life scenarios, and leadership modeling) • Best interventions use combination of “top-down/ bottoms up” approach)

19. Summary: Characteristics of the New Workplace* • Emphasis on eliciting engagement, knowledge and ideas of employees • Decentralization of decision-making, downward location of discretion • Task flexibility for employees • No expectation of long-term employment *Katherine Stone

20. THANK YOU!