The New World Reality of Benefits Communication Alexander, Sheri. Employee Benefit Plan Review 68.11 (May 2014): 13-14. One of the biggest challenges of modern benefits is explaining them to employees. Although the Affordable Care Act is mostly aimed at individuals outside the large employer marketplace, it is a fundamental game changer for organizational group benefits, due to the many moving parts and overlapping efforts that must be communicated to very diverse populations. This would be difficult in the best of times -- and these are certainly not the best of times -- which makes the stakes even higher. Organizations that get benefit communications right will have a significant competitive advantage. Steps to consider in benefits compensation are: 1. Know your audience -understand the generations. 2. Use the right communication channel. 3. Summarize the message. The challenge for benefits professionals is to do more than just keep up; they must lead the charge in adapting to modern communication styles. Get productivity and results out of your total compensation plan by building a culture based on transparency and good communication. One of the biggest challenges of modern benefits is explaining them to employees. Although the Affordable Care Act (ACA) is mostly aimed at individuals outside the large employer marketplace, it is a fundamental game changer for organizational group benefits, due to the many moving parts and overlapping efforts that must be communicated to very diverse populations. This would be difficult in the best of times-and these are certainly not the best of times-which makes the stakes even higher. Organizations that get benefit communications right will have a significant competitive advantage. So here are two key points to remember: KEY POINT #1: PEOPLE BASICALLY DO NOT UNDERSTAND INSURANCE It is not news that most people do not fully understand insurance, or how their health care is subsidized or paid for. They grudgingly understand deductibles and copays because that is one of the few "hands-on" parts of the benefits world that intrudes into their lives. People often do not understand insurance because the media does a poor job in explaining it, schools do not educate students on the subject, and movies tend to treat insurance companies as the "big business villain." The net result is a poorly informed and under insured populace. key Point #2: This is a complex, confusing subject That we insiders know a little Too well Employee benefits industry professionals know our world is full of acronyms and abbreviations, for example, ACO, PEO, ASO, SBC, and the list goes on. This familiarity with code words are handy for those of us "in the club," but it contributes to an impenetrable communication barrier for many of those we serve that we must first overcome. So what do we do? Here are some benefits communication "next steps" to consider: * Know your audience; * Use the right communication channel; and * Summarize the message. Know your audienceunderstand the generations To communicate across multiple generations, organizations must adapt to a more employeefocused communication style. This is a significant challenge for organizations with hierarchical "command and control" environments, who often struggle with attracting and retaining younger associates. Here is a simple summary of the age groups and their communication issues: * Baby Boomers (ages 54 to 71) tend to be competitive, moralistic, optimistic, and self-focused. They prefer formal communication patterns, with paper and email as the primary channels. * Generation Xers (ages 33 to 53) define success by creating the life they want, and view themselves as free agents not permanently tied to any organization. They created informal channels, and "pull" information from them on demand. * Millennials (ages 32 and under) love freedom and responsibility, expect consistent and positive feedback, and use technology transparently. This means instant, constant communication using "flat" hierarchies. Use the Right Communication channel Apply communication approaches that work in your organization. Do not cover too much: focus your messages on actionable information about available coverage, choices, and the impact of those choices on personal finances. Keep it Simple. Write to an eighth-grade reading level to make it as easy as possible for everyone to understand the message, and avoid using jargon as much as possible. Tailor the Message. The ACA may impact different employee groups in different ways. Think through the messages that affect all employees and those messages that affect only specific audiences. Make better communication a part of annual enrollment. Integrate messages, media channels, and the overall approach with your annual enrollment communication. Use multiple channels. Mix and match the methods and channels to increase your chances of getting the messages across: * Corporate Intranet. Note that many organizational intranets are stale and out of date. You will have better luck if this is cared for, updated, and kept relevant to be a successful employee communication tool. * Mobile. The rise of mobile is the most recent significant change in communications. There are now very few barriers to staying connected in or out of the office. * Social Media. This has changed the way businesses communicate with their customers, but it has done little to change the way people within the business communicate with each other. Facebook, Twitter, Pinterest, Google+, and YouTube are primarily business-to-consumer and consumer-to-consumer networks. They offer immense customer reach, but they are not great places to have meaningful conversations with employees and their families. * Email. Love it or hate it, email forms a major part of most workers' communication. It is increasingly difficult to separate signal from noise, and it lacks accountability. "Read Receipts" are notoriously unreliable, and you often don't know if the recipient is going to do what you requested, or whether they even received the message. Summarize the Message With the arrival of social technologies in our lives, the way we communicate with each other has changed forever. Texting eliminates face-to-face interaction, and we communicate in short bursts. Character limits on Twitter force us to summarize. More than 90 percent of human communication is conveyed through visual body language cues and vocal inflection. When technology leaves us only 10 percent to work with, we have to get better at the craft of communication or we will have a flood of communication without context. Humans require context to understand concepts. We need to become better storytellers. A story helps share understanding and gives us context to make decisions. Stories add the color, personality, and relevance about what you are trying to explain. In benefits communication, case studies and stories make benefits come alive and be understood. Fifty-two percent of consumers stop following a business' Web page because the content is boring and repetitive. So make your communications interesting. Create a mood through imagery. Speak at your reader's level. Be smart and clever when you can. Engage me with a story, but don't lecture to the audience. Given this desire for simplicity, the true measure of communication is when the message is understood as you intended. With modern attention spans, this requires an ability to summarize concisely. Employees are confused and overwhelmed by benefits rules and options. With the power of an effective summary overview, benefits professionals can help explain complex benefits issues to help employees choose and implement their benefits plan. The challenge It is impossible to create a law that makes sweeping changes to the complex world of health insurance without having a significant impact on employer-sponsored coverage. Although many of us are not comfortable with the "new normal," the reality is that good communication will be rewarded with engagement and understanding. Our challenge as benefits professionals is to do more than just keep up; we must lead the charge in adapting to modern communication styles. Get productivity and results out of your total compensation plan by building a culture based on transparency and good communication. Use "next step" thinking to communicate and gain traction. It will make all the difference to employee engagement and morale. AuthorAffiliation Sheri Alexander, a Contributing Editor for Employee Benefit Plan Review, is a senior vice president of, and serves as the employee benefits division manager for, Gregory Sc Appel, the oldest independently owned insurance agency in Indiana. Word count: 1176 The Secret Weapon of Modern Benefits: A Strategic Plan Alexander, Sheri. Employee Benefit Plan Review 69.9 (Mar 2015): 12-13. Abstract Times are changing. Affordable Care Act (ACA) compliance, an aging and shrinking workforce, technology, and medical and pharmaceutical advancements are on a collision course that is changing the face of compensation and benefits. As a result, senior leadership is relying on their employee benefits professionals more than ever to help them navigate and mitigate risk. The secret weapon is deceptively simple: an Employee Benefits Strategic Plan. Organizational strategic planning sets priorities and goals for the future. An Employee Benefit Strategic Plan employs the same approach but is specific to the total compensation approach of the organization. By adopting a strategic employee benefit planning process, organizations can make decisions regarding their benefits with significantly less stress for all involved. You cannot anticipate every situation, but you can make decisions and react to changing market conditions with the end in mind. It is the difference between being proactive on offense or reactive on defense. Full Text Times are changing. Affordable Care Act (ACA) compliance, an aging and shrinking workforce, technology, and medical and pharmaceutical advancements are on a collision course that is changing the face of compensation and benefits. As a result, senior leadership is relying on their employee benefits professionals more than ever to help them navigate and mitigate risk. The secret weapon is deceptively simple: an Employee Benefits Strategic Plan. Employee benefits STRATEGIC PLAN For some, "strategic planning" is a series of formulaic meetings that result in a report that ends up on a shelf, rarely referred to or used until the next cycle. For a select few, however, it is a crucial part of the organization's sustainability-a road map used to guide decisions. Organizational strategic planning sets priorities and goals for the future. An Employee Benefit Strategic Plan employs the same approach but is specific to the total compensation approach of the organization. Simply put, in an environment of consistently rising healthcare costs and shifting healthcare regulations, it is essential for organizations to create longterm strategies with short-term objectives and have a quick-response review process in place. The fiscal realities of increasing healthcare costs mixed with ACA unknowns can impact your organization's financial performance in several ways. It may drag down shareholder value, become a drain on company performance, or negatively impact the culture and human capital within a business. Yet, with all these negative impacts, most organizations still do only a superficial short-term employee benefits plan for themselves. What constitutes a strategy and how do we actually build a plan? A good definition of strategy is "... choosing to perform different activities that will provide a sustainable competitive advantage. " It is a way of thinking about the world and approaching business. Strategic planning is a process to produce innovative and creative ideas that serve as the core framework for the organization and design its future. By adopting a strategic employee benefit planning process, organizations can make decisions regarding their benefits with significantly less stress for all involved. HOW TO CREATE A STRATEGIC PLAN Most strategic planning models share a common discover/analyze/design/build/review structure. This process appears to be simple, but it does have complex and powerful components within each category. First, confirm that the organization is ready. Building a comprehensive plan requires commitment from the top down. Next, make sure all stakeholders are represented. In addition to the C-Suite and human resources (HR), the committee should include representatives of all major employee groups and functions. It is not uncommon for a strategic planning committee to have 12 or more representatives around the table. That may seem like a lot, but having a broad range of areas represented helps identify issues that top management on their own may not have considered. Bring in an expert to facilitate, preferably someone who understands your organization's culture and brings objectivity to the process. Regardless of the industry, companies often find there is remarkable team building and several "Aha!" moments during the process. Establish rules of the road and encourage open and honest communication. * Begin with the past, and lead up to the present. Revisit core values and the mission statement. How did the organization get here, and how is the current system functioning? Are our people satisfied? * Review the context of the current economy and your business sector. Create a SWOT analysis: what are our strengths, weaknesses, opportunities, and threats? What does our trend line look like if we stay the course? What are the financial drivers and external forces present in the external environment? What are the projected human capital needs in the future compared to the talent available now? Are people retiring too early or not early enough? * Analyze and begin strategizing. Set metrics in place as guideposts for the future that are as forward looking as possible. Confirm that those metrics are aligned with the organization's guiding principles and core values. * Create a new plan. Consider innovation and "next step" alternatives instead of copying others. Use modeling software (if available) to assess the impact of your proposals. Use a "clean sheet of paper" approach when possible to let your team think in terms of "what is possible" to consider all legitimate ideas. * Build and implement the new plan. Build, test, adjust, and implement. Remember that communication is often overlooked. When you feel you are overcommunicating the new plan, you have it about right. * Check the metrics and correct course. Compare actual performance to expected, and use the metrics you put in place during the design. The strategic plan is a "live" document, and is designed for in-flight adjustments. Make Your Future Happen, rather than Having It Happen to You You cannot anticipate every situation, but you can make decisions and react to changing market conditions with the end in mind. It is the difference between being proactive on offense or reactive on defense. Establish Direction Implementing the process clearly helps define the purpose of the organization and establishes realistic goals and objectives consistent with a mission that can be clearly communicated to all. This process allows you to measure progress and set boundaries for effective benefits decisionmaking among the group. Avoid 'Competitive Convergence' Organizations have gotten used to looking at their competitors and their "best practices," and duplicating them so that it becomes harder to tell the organizations apart. Strategy means having a unique differentiation that sets you apart from your competitors. Create Organizational Sustainability Organizations that do not have a solid foundation and have instead relied on luck or inertia most likely will not be sustainable over the long term. Data reflects that one out of every three organizations at the top of its industry today will not be there in five years. Do not allow stereotypes of "strategic planning" deter you from embracing the challenge of taking a deeper look at your organization. Having a variety of stakeholders involved can be empowering for them and for the company. The leadership behind such a process will be seen as principled and appreciated for taking the long view of the company and the relationship with its employees. Not enough organizations take the time to do this. Do not make the same mistake. AuthorAffiliation Sheri Alexander, FLMI, GBA, HIA, a contributing editor for Employee Benefit Plan Review, is senior vice president at Gregory & Appel. Word count: 1057 The "Ottawa Way" Thrives Vanderberg, Al; Capodagli, Bill. PM. Public Management 97.6 (Jul 2015): 14-18. Abstract Government officials in Ottawa County, MI, who have undergone training to learn "The Disney Way" of providing quality customer service. At least in the private sector, competitive forces provide an incentive to emulate outstanding customer service icons like Disney, Starbucks, or Four Seasons Hotels and Resorts. Surely, counties already have a monopoly on their services, many of which are regulatory in nature, and Ottawa County is no exception. If a visiting executive who is searching for a new location within a county has a good customer service experience, it certainly may help his or her decision to locate there. A terrible customer service experience, however, could result in a search for another location. This article presents the Ottawa ways: 1. Ottawa way customer service initiative, 2. management buy-in, 3. the rollout, 4. the hot seat, 5. storyboard treasure trove, 6. the leadership challenge, 7. brain trust follow-up and next steps, 8. and the future. Full Text Headnote A Michigan county adopts a customer-centric culture Does it really make a difference if a local government adopts a customer-centric culture? Yes, say government officials in Ottawa County, Michigan, who have undergone training to learn "The Disney Way" of providing quality customer service. Ottawa County, Michigan, is located in the southwestern section of the state. Located 174 miles west of Detroit and 150 miles northeast of Chicago, the county includes six cities, 17 townships, and one village within 565 square miles. More than 272,000 residents enjoy famous Lake Michigan beaches and 7,000 acres of county parks. Ottawa County is also a vacation destination with Holland, Michigan's Tulip Time festival and Grand Haven's Coast Guard Festival held during the summer. Some may wonder about a possible disconnect between the public sector and a Disney-like customer-centric culture. At least in the private sector, competitive forces provide an incentive to emulate outstanding customer service icons like Disney, Starbucks, or Four Seasons Hotels and Resorts. Surely, counties already have a monopoly on their services, many of which are regulatory in nature, and Ottawa County is no exception. Given its assets, why should the county be concerned with customer service? Responding to this question, a county official noted that the county has earned its reputation largely due to the people who live, visit, and do business with it. As such, it owes great service to visitors, residents, and employees. Besides, it's just good business. When a new business locates within a region, for example, the effect on employment is: 1) a direct impact from the jobs provided by the business itself; 2) an indirect impact if the business buys production materials and services locally; and 3) an induced impact or multiplier effect from the flow of wages spent by new employees, which may provide new jobs in other businesses, and in turn, the spending of those wages. The Michigan Multiplier 2013 (Montgomery Consulting, spring 2013, http://is0.gaslightmedia.com/northernlakeseconomicalliance/_ORIGINAL_/ fs27-137044219127000.pdf) reports that Ottawa County's employment multiplier is 2.12. This means that if a business locates within a county and provides 100 new jobs, 212 additional jobs will be created to support the new business. If a visiting executive who is searching for a new location within a county has a good customer service experience, it certainly may help his or her decision to locate there. A terrible customer service experience, however, could result in a search for another location. ''Ottawa Way'' Customer Service Initiative After reading the best-selling book The Disney Way, Ottawa County officials contacted the company created by the book's authors to help the county develop a Disney-like customer service culture. Training began in fall 2012 with the customer service steering team. This group continues to meet monthly to oversee the customer service initiative and to review accomplishments and next steps. The steering team included key leaders from the 33 departments, offices, courts, and agencies that make up Ottawa County. The first step was total immersion in the Disney Way experience through a series of three, one-half-day workshops over a period of two weeks (see Figure 1). During initial workshops, the county team came to realize that although the 33 areas ranged from law enforcement to social services, the same Disney Way experience should drive them all. From that point on, Ottawa County's customer-centric culture would be known as the "Ottawa Way." Here are the steering team accomplishments from its initial workshops: * Developed preliminary dream and vision. Here is the last paragraph of The Ottawa County Customer Service Story: "Imagine a team with a variety of skills-collaborating, engaging one another, and having fun. . .that work to improve, protect and serve their citizens and the environment. This is Ottawa County and you are the Ottawa Way!" * Identified preliminary values. The customer service value statement reads: "Empowered to Solve Problems with Integrity and Empathy to Inspire Trust." * Established preliminary codes of conduct. Examples of Ottawa County codes: "We live the Golden Rule." "We take accountability for our actions and decisions." "We create a culture of service in which every customer is valued!" * Storyboarded potential barriers to the implementation. A storyboard is a visual display and problem-solving technique that captures, organizes, and prioritizes the thoughts and ideas of everyone on the team. This tool was developed by Walt Disney. * Developed a road map for change. One of the main tasks was the commitment for everyone in the organization to experience the three-day, customercentric culture training. Management Buy-in The next step to implementing the Ottawa Way was a three-day leadership workshop for 100 front-line leaders. Becoming customer-centric is not an activity to be checked off during an annual strategic planning process or a performance review, or briefly communicated in a retreat setting. An organization-wide cultural change driven by top management is required for success. Front-line leaders must not only embrace the new culture, they must also believe they have ownership in its development and results. This was the main focus of the leadership workshop. Here are the front-line leaders' accomplishments from the three-day workshop: * Finalized dream and vision. * Finalized values. * Finalized codes of conduct. * Storyboarded potential barriers to the implementation. * Understood road map for change. * Understood the Disney Way experience, which means beginning to live the dream, believe, dare, and implement principles. The Rollout Upon completion of the leadership workshop, the steering team planned a three-day "Ottawa Way" experience for all employees. For the ensuing year, approximately 60 to 100 employees per session participated in the training that was facilitated on a monthly basis, with a total of 973 employees completing the training. Local government managers might question why the training needed to be conducted for three days. Couldn't the principles required for any new culture be communicated in less than a day? If it was that simple, however, countless organizations would be as magical as Disney. When employees arrive at the threeday training, they do so with a set of values that has been ingrained in them over the course of their careers. Now they are expected to embrace a new set of values, yet they need time to realize that the old values are no longer the best for the organization as a whole. Here are the employee accomplishments from the three-day training: * Participated in the Disney Way Experience. * Storyboarded potential barriers to the implementation. * Storyboarded solutions to eliminate key barriers. The Hot Seat During the afternoon of the second day of training, participants experienced the "Hot Seat" segment. The county administrator and two of the steering team department heads were members of the Hot Seat panel. Participants were invited to ask the panel any questions pertaining to the Ottawa Way or to County operations. How the "Hot Seat" benefits the staff: 1) top leaders being available, displaying candor, and demonstrating support to employees; and 2) trust and open communication established between management staff and the workforce. A question asked at every session was "How can we provide excellent customer service when in government the answer is not and cannot always be yes?" The answer: It is all about how you treat someone. We use the Golden Rule that stresses that people treat others as they wish to be treated. Storyboard Treasure Trove Something of extraordinary and unanticipated benefit resulted from the training. As many as 480 storyboards provided a wealth of information about what county employees think; 452 storyboards displayed concerns that pertained to management and leadership. Lack of trust in management, poor communication, and little coaching and feedback were a few of the topics of concern. Participants, by way of 1,406 storyboard response cards, communicated that improvements in leadership, empowerment, accountability, encouragement, and setting clear expectations and direction were needed. Lead by example, live the Golden Rule, and provide more feedback were some of the ideas for improvement. The Leadership Challenge The storyboard process is an ideal way for leaders to gain anonymous feedback and to engage their entire teams. A powerful way to begin helping leaders to become more effective, which was one of the concerns that emerged through county employee storyboards, is to conduct a leadership storyboard. As an author of this article and the workshop trainer, I challenged Al to allow his direct reports to participate in this exercise in which they answered the question, "What is the ultimate leader?" After an initial briefing with staff, Al left the room so that they would have total freedom to continue the process by ranking what is most important to them, what Al "does best," and which areas are "opportunities for improvement." Al admitted being a little nervous with the process, but he saw great value in the results. As a next step, both elected and appointed county leaders completed the leadership storyboard process within their own departments. Brain Trust Follow-up and Next Steps Ed Catmull, president of Disney and Pixar Animation Studios, was quoted in the book as saying that "A hallmark of a healthy creative culture is that its people feel free to share ideas." One of the best ways to produce this type of environment is by establishing a brain trust, which is a group of people who assist, advise, and support one another but do not have authority to make decisions for each other's teams or departments. In general, the members also help each other become more effective leaders. The county is on the verge of creating a leadership brain trust, which will be seven groups composed of 15 to 20 middle-management leaders and one facilitator, along with one group of upper management with a facilitator. Like the leadership storyboard, the brain trust is intended to improve county leaders' effectiveness. Each leader will complete a self-assessment customer service implementation questionnaire by rating teams in these categories: * Constant purpose and improvement and forever using the system of customer service. * Institute training in codes of conduct, customer service values, and quality. * Believe in elements of the show or customer experience. * Eliminate fear. * Break down barriers between departments. * Remove barriers to pride of workmanship. Every 10 weeks after the initial meeting, brain trust meetings will be held to provide updates on the progress of implementing Ottawa Way and to help leaders identify and solve problems. The Future After the Ottawa Way training sessions were completed in the fall of 2014, the county created an 18-member customer service team with representation from county department operations. With the same lead facilitator, the team can coordinate with the brain trust. Here are team initiatives: * Determine next steps to customer service training. * Determine ways to help customers better navigate county buildings and the phone system. * Find ways of providing more services to residents with the use of technology. * Implement customer service best practices. * Implement an ambassador program to assist new employees with on-boarding as they transition to county employment and to create a network, which provides a resource to all employees seeking information on programs, departments, people, buildings, and more. Early successes have been amazing, particularly considering that the Ottawa Way is still relatively new. A quarterly Outstanding Customer Service Award that began in January 2014 has netted an average of 70 employee nominations each quarter. A sheriff's deputy was nominated for a customer service award after issuing a traffic ticket to a motorist. The Public Health Department's restaurant inspection division, heavily criticized by many restaurants just three years ago, has received 87 customer service nominations from the private businesses they serve. Businesses praised the transition from a highly regulatory "gotcha" attitude to more of an attitude of educating and coaching, thus becoming a valued partner. These are just a few examples of great stories emerging that celebrate county employees going above and beyond the call of duty. The county references achievements on its website at http://miottawa.org/CustomerService/ outstanding_current.htm. A few years ago, the notion of having the 33 different areas of the county singing the same customer service tune seemed like an impossible dream; however, as Walt Disney said, "If you can dream it, you can do it." That is the Disney Way, and now it is the Ottawa Way, too. Sidebar Front-line leaders must not only embrace the new culture, they must also believe they have ownership in its development and results. A quarterly Outstanding Customer Service Award that began in January 2014 has netted an average of 70 employee nominations each quarter. AuthorAffiliation AL VANDERBERG is county administrator, Ottawa County, Michigan (avanderberg@miottawa. org). BILL CAPODAGLI is president, Capodagli Jackson Consulting, Winter Garden, Florida (dreamovations@aol.com) and coauthor of The Disney Way (2nd edition, McGraw-Hill, 2006). Word count: 2103 Here's the Plan. (cover story) Authors: Bernstal, Janet Bigham Source: ABA Bank Marketing. Sep2004, Vol. 36 Issue 7, p1822. 5p. 1 Color Photograph. Document Type: Article Subject Terms: *Strategic planning *Business planning *Banking industry United States Geographic Terms: United States Company/Entity: Northeast Bank (Company) DUNS Number: 079729091 Machias Savings Bank (Company) Northrim Bank (Company) DUNS Number: 622505659 Ticker: NRIM Abstract: Discusses the strategic planning process used by several banks in the U.S. Northeast Bank of Minneapolis, Minnesota; Machias Savings Bank of Maine; Northrim Bank of Anchorage, Alaska. Full Text Word Count: 2377 ISSN: 15397890 Accession Number: 14402320 Here's the Plan Contents 1. Northeast Bank, Minneapolis 2. Machias Savings Bank, Machias, Maine 3. How to create a strategic plan 4. Northrim Bank, Anchorage, Alaska 5. Strategic Plan Checklist 6. Use this tool to review your strategic plan. Answer each question with a "yes" or "no." Section: Strategies Planning Don't be intimidated when creating a strategic blueprint for your bank. Strive for an uncomplicated approachwith a simple outcome. There's an old saying that if you don't watch where you're heading, you'll wind up where you're going. It's a good forewarning for anyone seeking the road to ,success, but particularly appropriate for a bank culture without a practical, easily applicable strategic plan. "Community banks are all over the landscape with strategic planning," claims John Owens, director of financial services for the Fort Lauderdale office of RMS McGladrey Inc., a company that provides consulting to the financial services industry. "Some feel four hours a year is enough planning, and others have written plans bigger than the Atlanta phone book." On average, though, most community banks spend less than 30 minutes a month discussing strategy. Owen believes that's because many people are inherently frightened of strategic planning and avoid what they think is a complicated process. But the most effective plans, he says, are the simplest. "What they provide is focus, and focus is power," says Owens. First, he's adamant that you must involve the board of directors. "One of the challenges, and one of things board members are responsible for by regulation is strategic direction," he says. "It also ensures they' re on the same page." The key elements of a bank's plan should revolve around your knowledge of the bank. In other words, understand your people, your processes and your market. "Ninety percent of community bank presidents would tell you that their employees are the bank's most important asset," says Owens. "Yet most don't have performance management systems, train only onthejob and spend very little time on corporate cultural surveys." Also, he says, employing only the most efficient processes will lead to better staff morale, and ultimately help you deal with your customers in the best manner. As for the competition, it's not enough to be on top of their rates, you need to know where they're going strategically. And above all, keep focused on your plan. "That doesn't mean it should be written in concrete or you'll miss strategic targets of opportunity," says Owens. "But you should go back to it often and really know the plan." Northeast Bank, Minneapolis The leadership team for Northeast Bank in Minneapolis, Minn., keeps their bank's strategic plan from collecting dust by meeting and reviewing it quarterly. "Different people on the team have responsibility for certain action plans, so we constantly do updates," explains Sue Sjoselius, senior vice president of marketing. "That information is driven back down through the organization via newsletter, employee meetings, etc., so everyone is really aware of what our strategic plan is about." That wasn't always the case. Sjoselius has worked for Northeast, a community bank with three locations and $300 million in assets, for 19 years. There was usually an annual planning meeting and goal setting. But it wasn't until the year 2000, when they hired RMS McGladrey Inc., that they developed a more systematic approach. "Now it's not just 'Oh, let's grow the bank this much,'" says Sjoselius. "It's looking at the total systems of the bank, from the customer all the way through." Initially, there were several weeks of indepth market research and employee focus groups. The team used that data and the consultant's recommendations to write a formal plan. "It's allowed us to dearly define who we are," says Sjoselius. "What our current business strategy is, what our marketing position is, where to compete geographically and how to compete. It allowed us to really develop key marketing goals and strategies." Along with a detailed action plan for marketing, there are action plans for several other areas, all updated quarterly: Quality service: The marketing director and the human resources director work to keep a "superior, exceptional customer service level." Human resources: The human resources director is solely responsible for the recognition, retention, education and development of employees. 0perations: The executive vice president focuses on the difficult task of keeping "high touch" along with "high technology." "It's tough for a community bank because we're always watching our budget," she says, "Yet we have to be able to offer the technology services our higherend customers need while not losing sight of what makes us successful, the relationship we have with the customer." There are also action plans for investment services, Community Reinvestment Act and the capital plan. The committee discusses new branch development opportunities annually. For now, the team has decided against formal offsite annual planning meetings for expense reasons. Instead, they decided to hire an outside consultant every three to five years to "shake things up a little bit." "We have a lot of staff longevity, which is wonderful but challenging when it comes to innovative thinking," claims Sjoselius. "An outside person can help break us out of our mental models." Machias Savings Bank, Machias, Maine Every October, the senior managers and the board of directors for Machias Savings Bank (assets: $429 million) go someplace fun for a weekend retreat. It's a long weekend, beginning on a Thursday, but there's a lot of strategic planning to be done. "We do a nice retreat because it's a reward and also an opportunity to network with each other," explains Traci Sanborn, vice president of marketing and branch administration for the Machias, Mainebased bank. Sanborn begins organizing the whole strategic planning process in June. By October, she's got it all laid out. The first meeting sets the stage by examining past progress and where they stand in terms of their vision, mission and six critical outcomes: effective management; growth and sales; revenue enhancement and expense control; productivity; asset quality; and profitability. "In the outcomes, we have what we need to accomplish in three to five years to make our vision reality," says Sanborn. "Our outcomes haven't changed over two years, but we do have different performance targets." Each outcome is assigned a member of senior management, called the champion. During the retreat, two outcomes a day are discussed. They're first examined by the indicators of success. "First we look at the 2004 performance targets we told the board we'd do," says Sanborn. "Those range from one to 10 items, depending on area." For example, under effective management, do the employees and managers have SMART: Specific, Manageable, Attainable, Realistic Timetable job expectations? Are employees being well informed and is employee turnover decreasing? Then they set performance targets for the next year for each outcome. "We'll discuss how much deposit growth we expect over the next three years, and then further define it for the upcoming year," she explains, "say, $100 million in three years, but $40 million in 2005." The strategic plan is written up in booklet form. Senior management bring the plan to the branches during a "road trip." Every branch and department hears what took place at the treat and hears the goals for 2005. "We try to let the branch department managers know about it in November so they can start work on their yearly plan," she explains. "We just give them a snapshot of the strategic plan, focusing on the upcoming year with them." In the two years since Machias Savings Banks started this systematic approach, bank employees have taken giant steps toward achieving their vision. They want to become the #1 community bank in asset size among the peer groups of Maine. In 2002 they were #18. By the end of 2003 they were #5. Sanborn credits part of that success to sharing the strategic plan with the whole bank, and part to consultant Mary Baker, of Baker Company from Nashville, Tenn., for her direction as a communicator. "We've developed a good relationship with Mary for management and strategic thinking," says Sanborn. "She gives me ideas on which approaches to take, and how to open communications with senior management and the board." How to create a strategic plan Mary Baker has a fourstep process to bringing an organization back in focus, once they recognize that its in trouble. She's used to dealing with confusion and conflicting priorities, commonplace reactions in an organization without a plan. She's also used to the land mines along the way. "There are pitfalls and barriers that can occur at almost every stage," says Baker. "At the beginning there's usually someone who's been through the strategic planning process before, but saw no changes. I have to help them avoid the negatives and design a process so they won't repeat mistakes." The first step in her process is to collect and analyze data, both externally and internally. Externally, you need to dig into customer satisfaction and the depth of the relationship. "Done well, data collection helps you find out why people aren't banking with you." Then look around you. Conduct company benchmarking of like and unlike businesses. "Ask critical questions about their customer services, how they run their business and turn different departments into revenue producing business." Internally you have to gather the numbers and check trends over the last five years. Also, look into employee satisfaction. Meanwhile, for step two, you've created a planning group comprised of the board of directors and senior management to analyze the data. "Take them through a visioning process, and ask 'What assumptions can we make from our data?'" she says. "If they're clear about the mission, they can say, 'If this is what we do, what's the vision we have for our customers over the next five years?'" Now it's time for step three, setting the outcome. "You ask the question, 'How do we get from where we are today to what we want to be?'" advises Baker. "Answering that question is the third phase of the process." Target the critical areas you want to address and the results you expect. From that you can map out a three to five year plan with very specific, timed action steps or performance targets. Once you agree on performance targets, managers can create their action plans. The final phase consists of implementation and ongoing accountability. Implementation: Review the plan on a quarterly basis at an executive level, with managers reviewing their sections weekly. Accountability: The executive teams are responsible for reviewing the strategic plan and determining if goals and objectives are being met. "If they're not on target, they need to decide why and what to do," says Baker. "Did we learn that we weren't being realistic, or have we allowed ourselves to divert focus?" This, then, becomes the work of the organization. Northrim Bank, Anchorage, Alaska The senior management from Northrim Bank (assets: $738 million) in Anchorage, Alaska, can also be found offsite on retreat in October. The crosssection of department heads adds up to about 14 people, and they spend two days discussing key challenges, customer research and the competitive situation. But the written strategic plan isn't the first document to come out of that retreat, the budget is. "It may be backwards, but we start with the budget process before going into a written plan that may be cut," explains Lori PhiloCook, CFMP, senior vice president and marketing director. "I feel it's really important that everyone in the bank is involved in strategic planning, and the foundation is the budget we develop." A marketing department brainstorming session follows the retreat. That's followed up by meetings with each key area marketing supports to determine what's been effective or what's changed in their market and department. "So the budget goes out first, and everything everyone needs is in that budget," says PhiloCook. "Once that document is done, the marketing department meets with the president, the chief operating officer, the chief financial officer and the head of accounting." It's a long grueling meeting, she says, while they decide what to approve and what to cut. Although she claims, "We have a lot of credibility going into it as a result of all our planning, and that's a whole lot better approach than padding it with extra anticipating cuts." ~~~~~~~~ By November they've moved on to the written strategic and action plans. "I used to do the overall goals and specific goals for everyone, but found they weren't really reading them through," she says, "so now I update what's been done and give goals of what to improve or change." She then reviews and edits everyone's individual action plans to help them with the big picture view. The final result is a notebooksized written plan that includes an overall calendar for major projects, employees' schedules and those for customer and community events. "This year we've had some turnover from military people," says PhiloCook. "Without the written plan we'd be lost, because it's so helpful for new people to come in and know exactly who we are and what to do." Strategic Plan Checklist Use this tool to review your strategic plan. Answer each question with a "yes" or "no." Does the plan detail the bank's strengths, weaknesses, opportunities and threats? Yes No Does the plan build on the bank's strengths and address its weaknesses? Yes No Does the plan realistically appraise the bank's markets, customers and competition? Yes No Do the mission and vision statements give a dear direction to the bank? Yes No Are goals and objectives dearly spelled out and measurable, both in time and dollars? Yes No Does the plan support the mission, vision and goals of the bank? Yes No Does the plan provide a framework for decisionmaking? Yes No Does the plan focus attention on the bank's major issues? Yes No Does the plan help coordinate the bank efforts? Yes No Does the current structure of the bank support the plan? Yes No Are the action plans specific, assigned, measured and monitored? Yes No Are the action plan items prioritized and budgeted? Yes No Are risks and returns noted, measured and balanced? Yes No Is the plan realistic in terms of effort, timing and cost to implement? Yes No Has the plan been properly communicated to and accepted by all stakeholders? Yes No PHOTO (COLOR) ~~~~~~~~ By Janet Bigham Bernstal Janet Bigham Bernstel specialize in writing about marketing and financial services industry issues. She works in Jupiter, Fla. Unit Lesson Introduction As Sheri Alexander (2015) discusses in \"The Secret Weapon of Modern Benefits: A Strategic Plan,\" organizations that use strategic planning tend to deal with it in two ways. Some organizations schedule meetings and create a report that is rarely referenced in day-to-day operations. The work is formulaic and only completed because it is something that organizations are expected to do. Other organizations take the opposite approach and use the strategic plan as a crucial element in the day-to-day decision-making process; it is important in the stability and sustainability of the company and helps to set priorities and goals. What is the key difference between these types of organizational outlooks? Why will one company embrace strategic planning while another ignores the process or treats it as a yearly obligation that offers little to no benefit for an organization? First, it is important to understand the concept of a strategic plan. Such notables as Vince Lombardi, former coach of the Green Bay Packers, and Margaret Thatcher, who was the longest serving Prime Minister of the United Kingdom, have stated a variation of the adage \"plan your work, and work your plan.\" This phrase is an effective nutshell statement as it includes two of the three fundamental aspects of strategyplanning and execution. It does not include the third fundamental aspect of communication, but it is still a good place start. The plan itself is a document that is used to communicate the organizational goals and the actions needed to achieve these goals. There are many different frameworks and methodologies for creating a strategic plan. While there are no absolute rules, most strategic plans follow a similar pattern and have common attributes. Plan Your Work 1. Analysis or Assessment: Alexander (2015) suggests beginning with a review of past and current organizational values, including any mission statements. It is important to understand how the company arrived to its current position and how the current system is functioning. Management needs to make choices about what the organization wants to achieve and how to best achieve those goals. In \"Here's the Plan,\" Mary Baker describes a fourstep process to bring a troubled organization back into focus (as cited in Bernstal, 2004). The first step is collecting and analyzing external and internal data. Look into customer satisfaction. Gather numbers, check trends, and also review employee satisfaction (Bernstal, 2004). Know where the organization currently stands and where leaders want to take it. 2. Strategy Formulation In this stage, it can be helpful to create a clear organizational mission statement. Cover the key steps that need to be taken that are critical to achieve the required changes. Alexander (2015) recommends creating a SWOT analysis (strengths, weaknesses, opportunities, and threats). Work from a blank slate, Alexander (2015) advocates, which will give a team the ability to consider all possibilities and ideas. Determine the priorities for the organization in this phase. Evaluate how to focus on the strengths of the organization. A common criticism of the SWOT analysis technique is that organizations can use the technique to justify remaining in the same place rather than changing and growing. However, this is not an issue of the strategy tool itself, but rather, this is an issue of how an organization applies the tool. If the focus is on aspirations and moving forward, the SWOT analysis will be helpful in achieving these goals. A key element is to have specific indicators of successactionable objectives with specific end points. Neil Gaiman, who is a famous author of both adult and children's books, discusses the benefit of focusing on aspirations and moving forward in his 2012 commencement address to the University of the Arts. He visualized his goal of being a writer as a distant mountain that he would continuously walk toward. Gaiman (2012) explained to the graduating class that as long as he kept walking toward the mountain, he knew he was on the right path. He evaluated every job opportunity on the basis of whether it took him closer to his goals or pulled him further away. Even if the jobs were attractive and paid a great deal of money, the first evaluation had to be if they brought him closer to the metaphorical mountain. Although Gaiman speaks about his individual goals, this system works just as well for an organization. Bernstal (2004) encourages the same type of a system: Make assumptions from the data, and then ask how to get the organization from its current state to the new goal. Use the SWOT analysis to focus on the most important areas for change and the desired results. Work Your Plan 3. Strategy Execution Executing a strategy represents a disciplined process or a logical set of connected activities that enables an organization to make it work. When the strategy is complete, recognize the fact that the document is not set in stone; it can be adjusted. 4. Evaluation or Sustainment Results of the implementation process need to be evaluated: This is a continuous process. As Alexander (2015) explains, no one can anticipate every situation, but an organization can be proactive and make decisions that react to changing conditions. If the company is missing the target, Baker explains, employees first need to find out what has caused the diversion and then decide what they need to do about the situation (as cited in Bernstal, 2004). Steps for planning your work Employee EngagementThe Key Difference Employee participation is vital when an organization decides to embark on a program of change. Whatever aspect provides the eventual impetus, one aspect is clear; the old way is not working, and a new framework of operation is needed. When that happens, companies need to include employees in the process; this is a key part of communicating with people during a change. Employees who understand the strategy will be able to make day-to-day decisions that support it. 5. Develop a Strategy for Communication How information is presented to employeesthe channel that is used for communicationis an essential step in the process. Alexander (2014) explains that it is important to use the right channel for communication and to focus messages on actionable information, as listed below: Corporate Intranet: Note that many organizational intranets are stale and out of date. You will have better luck if this is cared for, updated, and kept relevant to be a successful employee communication tool. Mobile: The rise of mobile is the most recent significant change in communications. There are now very few barriers to staying connected in or out of the office. Social Media: This has changed the way businesses communicate with their customers, but it has done little to change the way people within the business communicate with each other. Facebook, Twitter, Pinterest, Google+, and YouTube are primarily business-to-consumer and consumer-toconsumer networks. They offer immense customer reach, but they are not great places to have meaningful conversations with employees and their families. E-mail: Love it or hate it, e-mail forms a major part of most workers' communication. It is increasingly difficult to separate signal from noise, and it lacks accountability. \"Read receipts" are notoriously unreliable, and you often do not know if the recipient is going to do what you requested, or whether he or she even received the message (pp. 13-14). Each type of channel has both positive and negative aspects. Depending on the audience, the purpose of the communication, and the situation, one channel may be better than another. A corporate intranet has the advantage of privacy. It is generally only accessible to those within the company. Management can control which employees have access to areas within the intranet, and, with the addition of cloud computing, it can often be accessed from anywhere. This brings in the advantage of a mobile channel, as well, and is ideal if a company wants a more flexible workforce. On the negative side, a corporate intranet is an additional expense and may not be feasible for all organizations. Social media accounts have the advantage of being relatively inexpensive. Many of the accounts are free to create. However, these accounts are often less secure, lack privacy, and, as Alexander (2014) notes, may not be the best platform to develop meaningful conversations between employees. E-mail can also be relatively private and secure, but response time is an issue in many organizations. 6. Create a Process for Feedback The Unit I Lesson stated that the desired outcome of any communication process is to have the receiver (or receivers) understand the message. Creating a system of feedback for employees to address concerns and make suggestions about the strategic plan is a good way to check if the \"receivers\" understood the message. Whatever channel is employed, an organization must be prepared to work with employees and provide guidance until they become familiar with their new responsibilities and the changes in the culture of the organization. Many organizations also request feedback from their clients/customers and use this to evaluate the effectiveness of their strategic plan. It is a way to check if the goals are being met for customer satisfaction and, in the case of continuing evaluation, it indicates the areas where the organization should concentrate its efforts. References Alexander, S. (2014). The new world reality of benefits communication. Employee Benefit Review, 68(11), 13-14. Alexander, S. (2015). The secret weapon of modern benefits: A strategic plan. Employee Benefit Review, 69(9). 12-13. Bernstal, J. B. (2004). Here's the plan. ABA Bank Marketing, 36(7), 18-22. Gaiman, N. (2012). Keynote address 2012: 134th commencement. Retrieved from http://www.uarts.edu/neilgaimankeynote-address-2012 Suggested Reading The article below highlights some of the issues discussed in the Unit II Lesson. Gaiman, N. (2012). Keynote address 2012: 134th commencement. Retrieved from http://www.uarts.edu/neilgaimankeynote-address-2012