Incentive - May 2008 - (Page 30)

Where Have You Gone, Vince Lombardi? otivating a team of employees with old-fashioned sports psychology and tactics still holds sway in some quarters. Last September, distressed mortgage lender Countrywide Financial Corp. was fighting to endure daily negative media coverage, defaults by existing customers, a huge drop in new customers, and layoffs of as much as 20 percent of its workforce. So management decided that part of the solution should involve reenergizing its demoralized workforce with the classic “us-versus-the-world” philosophy reminiscent of that portrayed by Kurt Russell as USA hockey coach Herb Brooks in the 2005 movie Miracle. In this case, the head coach was Andrew Gissinger III, executive managing director of residential lending at Countrywide—and a former pro football player for the San Diego Chargers. On a September conference call with 250 select employees, Gissinger unveiled the firm’s “Protect Our House” campaign, for which the company asked thousands of its employees to sign a pledge “to demonstrate their commitment to our effort,” one executive explained in the Wall Street Journal. What’s more, employees who signed the pledge would be given rubber wristbands inscribed with “Protect Our House” to wear at the office. As the call was winding down, Gissinger channeled his best lockerroom persona. He bellowed: “It’s gotten to the point where our integrity is being attacked. Now it’s personal and we’re not going to take it!” Sometimes, though, there is no pep talk that can save a team that’s behind at halftime. At the end of October, Countrywide reported a third-quarter loss of nearly $2 billion. And in late March, Bank of America bought Countrywide for $4.1 billion. How to Be a Hero: Cut Costs, Keep Quality M I t seems that 2008 is shaping up to be a tough year for everyone—including incentive planners. After all, they must maintain the quality and reputation of their travel awards while keeping costs to a minimum. So we enlisted the help of two veterans—Kevin Devanney, president of Charlotte-based Incentive Travel Solutions, and Wayne Wallgren, president of Dallasbased WorldWide Incentives—to identify the best ways to cut travel program costs so that only the CFO will notice, and not your top performers. Here they are: Look to run the program just as shoulder season starts in your chosen destination. Most destinations still have fine weather for a few weeks after high season ends, but the price of four- and five-star accommodations comes down considerably, says Wallgren. Consider all-inclusive properties. This keeps your F&B budget (particularly for alcohol) under control. And because leisure options such as tennis, volleyball, windsurfing, snorkeling, beach olympics, and others are often part of an all-inclusive package, you can plan fewer structured events and activities that cost extra. If Europe is the place your program needs to be in 2009, be prepared to pay dearly. However, “a number of individual properties, and even some hotel consortiums in certain destinations, will honor the exchange rate of the U.S. dollar at the time of the contract signing, rather than when the program takes place,” says Devanney. For Mediterranean cruises, programs operated by U.S.-based cruise lines such as Regent also let you sidestep exchange-rate uncertainty.” You pay the cruise line in U.S. dollars but get to visit European destinations,” says Devanney. South America is the new hot spot; it’s a safe and cost-effective destination, Devanney notes. Consider Argentina and Brazil as sophisticated alternatives to Europe. Monitor participants’ arrival times to see if everyone will attend the welcome reception; you might be able to get away with setting a guarantee for 90 percent of the group. way we work with clients is to make sure that their incentive and recognition programs are tied to their long-term strategy. And good program design should have positive reinforcement along the entire path towards reaching the strategy’s end goals—it should not be just the top people getting a single big award. But if that’s what the plan already is, then I’d definitely avoid making changes late in the game.” For those executives who think that it’s motivating enough to employees that they still have their jobs in an economic slump, consider this: “Your best people always have options,” says Chester Elton, senior vice president of performance recognition for Salt Lake City–based recognition firm O.C. Tanner and co-author of the popular book The Carrot Principle. “And if a top I.T. manager or customer-service rep or salesperson walks out, you’ll feel it even more in these tough times, because those are the people you’re counting on to lead the way through it. If you get complacent on recognition now, the result could compound your difficulties for a long time.” In the coming months, some executives will be tempted to create shortterm incentive programs to boost revenues. But “there are real traps with monthly or quarterly programs created with only revenue in mind,” says Elton. “You can actually incent the wrong behavior that ends up putting you in a worse position down the road. For instance, a plan that motivates your reps to drain their backlogs to meet a monthly or quarterly target is just making it more likely that you will have a disastrous next month or quarter.” On the other hand, if the firm is not making its quarterly financial goals, and likely won’t reach the full year’s desired numbers, what is there to recognize and to celebrate? “Behaviors that create the conditions not just for getting the company through this rough patch intact, but also for preparing the foundation to really roll once the economy starts to turn around,” Elton responds. Godar concurs. “This is the critical time to ramp up incremental motivation, and find ways to keep people focused on the steps that lead to success rather than just the success,” she says. “If a company sees that many people won’t hit their goals and they’re becoming discouraged, management can put more emphasis on the milestones toward the sale.” Here’s another tack: “Some departments could probably use some sort of training refresher, not just for the current situation but also for 30 | Incentive | May 2008 | incentivemag.com http://incentivemag.com

Table of Contents Feed for the Digital Edition of Incentive - May 2008

Incentive - May 2008 Contents Editor's Note: Turn to Incentives in Hard Times In The News: At IMRA Conference, Trade Show Talk; In Utah, Team-Building Trauma Cover Story: Can Incentives Save the Media Business? Incentive Interview: Our New Columnist, Christi L. Gibson Case Study: Architecture Firm WESKetch Builds a Recognition Plan Incentives in a Recession: Advice on Adjusting Your Plan Office Bullies: The Scourge of the Workplace Can Be Reined In Original Research: Incentive Sales IQ Report Recognition@Work: Stop Driving Your Top People Away Incentive Primer: Ways to Foster Creativity in Your Organization Travel News Puerto Rico: Shining Star's Trendy Makeover Mexico: Cancun and Cabo Still Have It Potentials Here and Now Luggage and Leather Goods Gift Cards: F&B Advertiser Index Last Word: Stanley Bing Gives Wimpy Bosses a Nuggie

Incentive - May 2008

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