First announced in a report yesterday afternoon by Government Executive, the Office of Personnel Management (OPM) has halted it’s $290 million contract with Hewitt to deploy the highly touted RetireEZ program for electronic retiree processing.  This was corroborated by a press release issued by OPM announcing the suspension publicly.  Per the release:

“OPM issued a stop work order for the implementation of the calculation engine, one of the three components of the modernization project known as RetireEZ.  In addition to the stop work order, OPM issued a show cause notice to Hewitt giving them 10 calendar days to respond to the performance issues OPM raised.” (OPM)

Commenting on the stop work order, a former OPM employee stated:

“I know that testing of RetireEZ has been going badly.  What Hewitt was trying to do was take an off-the-shelf program and squeeze the government computations out of that.” (GovExec)

A Hewitt spokesperson responded by stating:

“We successfully delivered on our first live date with OPM on Feb. 25, 2008 and as of the date of the stop work order, we were on track to deliver on successive dates as required by our contract.” (GovExec)

Director Linda Springer announced Wave 1 of RetireEZ on her desk page, and on February 25th, approximately 26,000 active employees from the GSA, OPM, National Archives and other agencies went live with the system.  All federal employees were to have been transferred to the system by February of 2009.  It is unclear how the stop work order will effect this timeline, with OPM conveying that the data conversion and change management portions of the project are continuing unabated.  RetireEZ’s home page states that the site is currently down for maintenance.

Let’s keep the conversation going.

Today’s guest post is authored by Chris Connolly, Director of Client Services for Convergys Employee Care.  Chris is a long-time advocate of alternative work schedules (and an extremely bright guy).  If you have questions or comments, Chris can be reached directly at chris.connolly@convergys.com.  Take it away Chris!

Filling my tank near the Kennedy Center in Washington, DC this past weekend, I waited nervously as the $4.25/gallon offering approached a $100 total.  I never thought I would worry about the credit limit on my Exxon Card, and I swear that just last week I could count “one-Mississippi” while the digits on the meter clicked off $1 increments…I fear those days are gone.

Having a little time to contemplate this situation, I began wondering when gas stations might start offering a fourth payment option at the pump: Cash, Debit, Credit or Hedge (i.e, pre-purchase X gallons of premium for $3.25 a gallon and draw down from this purchase over the next year).  Thinking I might have stumbled onto a million dollar idea, I  went home and performed the obligatory Google search only to find out that others had beaten me to the concept:  

• Chrysler is offering a program called “Refuel America” which locks in the price of unleaded at $2.99 for three years if you purchase a “qualifying (read slow-moving-gas-guzzler) vehicle”.   
• Also check out the Gasoline Price Protection Program (G3P) concept at the WTLTrading blog.

But back to the issue you raised Mark.  I am hopeful that employees and employers can discover opportunity in the energy and economic challenges that we face today.   The impact of fuel prices on the average commuter may help produce the momentum to bust through the paradigm that we’ve been stuck in for over 40 years.  Rather than waiting for the oil companies to discover new supplies, build more refining capacity, or offer “incentives” to pre-purchase their highly profitable commodity, employees might start asking their employers for the option of an alternative work environment (aka work-at-home and/or telecommuting).  If you want to begin developing a business case for reducing your commuting expenses,  check out the calculators at the following sites:

• Arlington County VA’s “Car-Free Diet” calculator
• Commute Solution’s “True Cost of Driving” calculator

Both tools demonstrate how an average commuter can save several thousand dollars per year by working at home just one day per week.  Many states (Virginia being one) offer significant incentives to businesses for developing and deploying telework/alternative work site solutions.  The reduced demand on highways and other municipal infrastructure helps subsidize these government incentives.  The benefits to employees, taxpayers, employers and the environment could be significant if we begin to approach our daily commute less as a requirement and more as a choice.  Let’s explore the alternatives.  

Greetings readers!  As Mark has us dusting off alternative work schedule policies and considering what to do next, some recent findings on creativity and productivity from the Harvard Business School might be of interest.  (Actually, I was wondering why these AWS policies might need to be dusted off, as it was not THAT long ago when we all were wearing bell-bottoms—was it??)

Research by Professors Amabile, Tripsas and Khaire is described by Julia Hanna in the article, Getting Down to the Business of Creativity.  Whether considering a new venture, restructuring a current operation, engaging in M&A, or launching an entrepreneurial endeavor, creativity from your workforce is a core necessity.   This is especially true for any business effort that is beyond the capacity and resources presently available.

Dr. Amabile describes two myths about creativity and the workplace:

• Myth 1: Creativity is dependent on a genius, artist or charismatic leader.  
• Reality 1: Creativity depends more on the collective work of a group of people.  
• Myth 2: Creativity requires a trade-off in productivity.  
• Reality 2: Creativity and productivity are intertwined and interrelated.

What is most exciting about this research is the notion that creativity can be learned.  Hence, if managers understand how to create conditions for creativity, such as bringing importance to the everyday interactions and working conditions of employees, then creativity can be developed.  By supporting the progress of employees through role clarity and feedback while tending to interactions to encourage diversity of thought, the “inner work-life” of employees can be related to creativity and, in turn, brought to bear on performance. 

So, the merits of alternative work schedules are certainly nested in the merits of creativity.  It is a relief that some good ideas never do go away—because while I am not much of a dancer, I do love those bell-bottom jeans!

Let’s keep the conversation going.

Note that Shannon is a better dancer than she’s letting on.

It started with the oil crisis of 1973, this simple idea that work week compression could make a positive impact on both our planet and pocketbook.  It never really captured the nation’s attention in a systemic and sustainable way, but like oversized sunglasses, bell-bottom jeans and dance competitions, some things from the 70s are bound to make a comeback.   

Welcome to May of 2008.  The average price of gas is $3.75 per gallon.  Oil is $126 a barrel.  And consumer confidence?  According to Director Lynn Franco of the Conference Board’s Consumer Research Center, April’s Consumer Confidence Index was anything but groovy:

“This month’s decline in Consumer Confidence was the result of yet another sharp decline in the Present Situation Index. This continued weakening suggests that not only has the feeble level of growth in the first quarter spilled over into the second quarter, but that economic conditions may have slowed even further. And, not only are lackluster business and job conditions eroding confidence, but rising gasoline prices are undoubtedly heightening concerns… Looking ahead, consumers’ outlook for the economy, the job market and their income prospects remains quite pessimistic and little changed from last month. Or, in other words, the glass remains half empty.”

So now you’re saying to yourself, “Thanks Mark!  Great start to my Monday morning.  Real uplifting stuff.”  Sorry about that.  But here’s the good news - many employers have been heeding the cry for relief by deploying alternative work schedules (AWS).  

• Saving Energy: Marion County (Florida) just approved a 4-day work week measure, which by their estimates will save about $250,000 in electricity through the remainder of 2008.  
• Saving Oil: Calculations by energy site The Oil Drum estimate that taking one commute day off the books would save about 8.3 million barrels of oil.  
• Saving Employees: If you want to take this idea to the fullest, embrace the work of CultureRx and their Results-Only Work Environment (ROWE), which declined voluntary turnover rates by 90%.

All good stuff, but what do the academics have to say about AWS?  According to the Sloan Work and Family Research Network (Boston College):

• Fifty percent of employees who have high access to flexible work arrangements on the job report high levels of life satisfaction (Bond, Thompson, Galinsky, & Prottas, 2002, p. 39).
• According to the National Study of the Changing Workforce, “employees who have more access to flexible work arrangements report fewer mental health problems” (BTG&P, p. 39).
• 32% of wage and salaried workers with high availability of flexible work arrangements report no interference of job and family life (BTG&P, p. 38).
• 34% of wage and salaried employees who have high access to flexible work arrangement report “low levels of negative spillover from job to home” (BTG&P, p. 39).

So If you have AWS policies, it may be time to dust them off and begin to promote their utilization.  If you don’t, look to a variety of sources (including the Office of Personnel Management) for assistance.  At a time when employees need to look to their employers for solutions, taking this proactive and empathetic step can make all the difference.

Let’s keep the conversation going.

The questions keep pouring in.  What does this merger mean to the HR outsourcing (HRO) landscape?  Does this lock HP clientele out of contention for other BPO and HRO service providers?  What happens to ExcellerateHRO?  Where does Towers Perrin fit into the mix?  Does this freeze the market?  I’d like to think of this as provider math, so get out your abacus and let’s get down to it…

Input Variable A) HP

HP has been an uncharacteristic dabbler in and around HRO for many years.  They had been rumored to be entering the market via asset acquisitions ranging from ACS, Convergys, and Hewitt for some time now, but I must say that few (myself included) would have imagined EDS as the target.  Within HR service delivery, HP does have a few arrows in it’s quiver:

1. Announces Nestle as it’s only public HRO Engagement (2006) - Scope includes European payroll with options for benefits administration, including call center administration and some back office operations.  Serves as an extension to the existing finance and accounting outsourcing agreement with Nestle.
2. HP and SAP Alliance - 50% of SAP applications globally run on HP platforms, and HP is one of SAP’s largest clients.  HP also offers SAP consulting and integration services including operations, implementation, upgrades, support and end-to-end outsourcing.
3. HP and Oracle Alliance - More than 100,000 joint customers across every line of business globally, including JDEdwards, PeopleSoft and Oracle HR applications. 
4. HP’s HR Department - Supports 156,000 employees in 170 countries.  In a recent presentation for the Conference Board, HR EVP Marcela Perez de Alonso speaks her efforts to rationalize global HR into functional Centers of Expertise such as total rewards and learning.

Input Variable B) EDS

EDS’ creation of the ExcellerateHRO joint venture in 2005 allowed the firm to move directly into the race for tier one HRO transactions.  However, many have questioned the structure and strategy of the JV and whether it is sustainable in light of formidable competition and increased price pressures.  Here’s how EDS adds up:

1. Current ExcellerateHRO Portfolio - According to published data, 400 clients across nearly all geographies (except APAC) servicing more than 33 million active and retired employees.  Notable clients include CIBC, Total (UK), Bank of America and 7-Eleven Stores.  No new client wins announced since April of 2007.
2. Towers Perrin Joint Venture - Powers the full HR transformation and consulting side of the Excellerate relationship.  Provides global reach in 24 countries and outsourced IT to EDS as part of the initial venture structure.
3. EDS and SAP Alliance - 220 implementations with more than 850,000 users in nine languages and 54 countries.  Over 2,000 certified professionals on staff.  Their internal implementation of SAP is one of the largest in the world. 
4. EDS and Oracle Alliance - Emphasis on applications management, outsourcing, modernization and development services under the brand of the Agility Alliance.  Applications are primarily focused on CRM and HR BPO with 500 professionals on Oracle and 270 on PeopleSoft.

Does A + B = HRO Domination?

In my opinion, it does not.  There is no question that the combined entity will be formidable as a global provider of BPO and ITO solutions, and no one can argue with the depth and breadth of their technological acumen and ability to configure, manage and deploy SAP and Oracle solutions in any location in the world.  However, the one hole that remains is that neither entity brings forth deep and meaningful HR domain and consulting expertise.  Thus, I feel that continued codependency on Towers Perrin will be required to present a credible HR transformation story to the market.  This puts HP/EDS/Towers Perrin next to the likes of Convergys/Deloitte in the HRO landscape.  Competitors such as Accenture, IBM and even ACS (with it’s Buck and Mellon assets) will maintain some advantage with wholly owned and internalized HR consulting capabilities.

This could be resolved with one additional tactical acquisition.  With BearingPoint trading at $1.61/share and lowering its 2008 outlook, I’d see them as one possible candidate for such a takeover.  Suffice it to say that the next 12 months in the market should be quite interesting.

Let’s keep the conversation going.

Greetings readers.  Inflexion’s recent post about Robin Wolaner’s book, Naked in the Boardroom, reminded me that there are not only differences in the way that men and women lead, but that there are some differences in the way that men and women learn to lead.  Using Wolaner’s metaphor, let’s think of this as Naked in the Leadership Classroom—a look at preferred learning behaviors, based on gender, used in ANY type of learning experience.

While it is somewhat complicated to understand how one learns to lead (because it is measured by personal, tacit and subconscious acts), identifying gender differences may enrich talent management initiatives and leadership development programs.  Currently, there is not much information about the differences in gender-based leadership learning preferences.  If more was known, it would be possible to address gender differences more intelligently.

I recently conducted a study of aspiring leaders, males and females, and asked them which leadership learning behaviors were used most frequently.  Of the thirty behaviors offered, nineteen showed no differences between males and females.  However, there were eleven behaviors which were selected by females as being highly important in their leadership development.  These include:

1. Learning about leadership from a mentor.
2. Performing self-directed leadership development activities.
3. Contemplating what is expected of a leader by planning how leadership concepts, decision making processes and strategies can be used.
4. Using new language, new strategies, and new ideas to solve problems, mediate conflict, manage change or connect leadership theory to generalized situations.

While this study was not large enough to generalize from, these four leadership learning behaviors describe an approach used by females that ranges from self-reliance to co-dependence on a trusted confidant, and from deep thinking about strategizing/decision making to saying what you mean precisely.   Peeling the onion on leadership learning differences by gender holds promise for creating bias-free pathways for leadership development…all the way to the boardroom. 

Let’s keep the conversation going.

Did we mention she has a PhD?  Any questions for “Dr. Shannon” can be emailed to shannon.flumerfelt@inflexionadvisors.com.

This happens to me all the time.  I find something “cool and interesting and new” only to discover that I’m the one who is very late to the (informational) dance.  Such is the case with Robin Wolaner’s 2005 hit novel Naked In The Boardroom.    

Robin has had a fascinating and somewhat unconventional career by any measure.  She began as a copywriter for Penthouse, helped Runner’s World with its national launch, and eventually founded Parenting Magazine through a JV with Time Inc.  Her pre-launch negotiations with Time are memorialized in an HBS Case that has been studied by over 10,000 MBA students.    

The introduction rightly sets the tone, with Robin stating that, “The lessons I learned in business all point to one broad truth: Success follows when you use what you’ve got. You will succeed because of, not in spite of, your personal traits. The trick is to make your aptitude and flair work for you in a style that is uniquely yours.”  

Robin then offers 80 “Naked Truths” to aid others in learning from the good, bad and ugly of her experiences, ranging from:

• “Sometimes it’s better to be female in business, sometimes it’s worse, but it’s rarely the same.” (#1)
• “Viva la difference. When being a female is an advantage, use it.” (#5)
• “You can learn, and benefit, from others’ ethical lapses.” (#30)
• “Return phone calls and emails.” (#59)

What did Tom Peters think?

“It is by far (assuming I know the turf, which I think I pretty much do) the best book on strategy and tactics for women aiming to make it big in business—big biz or entrepreneurial biz. Moreover, I think any male—myself included, at age 63—can learn an enormous amount from this book.”

So you’re probably wondering why a guy in his late 30s would go on and on about a book for women in business.  Here’s why - I had the pleasure of meeting Robin for lunch in New York (her hometown is San Fran) a little over a month ago.  We discussed her new venture, TeeBeeDee, an online community for those in the middle of life’s adventures.  More importantly, I had an opportunity to listen and watch, to hear the passion in her voice and plans for the future, to see an experienced executive apply her gut instincts while admitting that she didn’t know all the answers.  It was very refreshing and reminded me that sometimes we need to stop aspiring to be the people others want us to be and fully embrace who we are, warts and all.

So pick up a copy if you’re so inclined and let’s keep the conversation (and enlightenment) going.

Greetings Readers!  I think everyone can relate to Mark’s story of employee apathy.  What bothers me most is that Mark’s experience, repeated billions of times per day, carries with it a great cost.  Frustration to customers, waste of capacity, damage to the brand and the organization’s goodwill, are just a few of the negative consequences of this problematic workplace phenomenon.  While many leaders would love to use a single event or focused approach to solving this problem, as J.B. Kassarjian points out, we have to shed a mindset of simplistic ideals and move beyond the hopes that “prescribing a little blue pill” mentality works. 

Mark, you point out that even though these behaviors are widespread, they must be overcome.  In fact, while employee apathy is common, it is not insurmountable.  Recent research I have done might provide helpful insight into the solutions to employee apathy.  What I have discovered aligns with Brandi’s ideas of leaders helping employees internalize what value is (from the view of stakeholders) and McKeown’s view that leaders must provide the chain of evidence that leads from employee performance to organizational performance.  I have surveyed employees from two levels of the organization, top executives and clerical staff, across multiple firms.  I was surprised to find out that both groups suffered from the same problems, and that these issues caused them to experience stress and be less productive (a situation that often is expressed in employee apathy).  These common problems include:

1.     A lack of clarity regarding roles and responsibilities

2.     A lack of communication

3.     A lack of strategic planning

4.     A lack of analysis of understanding root causes of problems

(Interestingly, measuring outcomes and taking more action on ethical beliefs were not areas of concern.) 

So, what I have learned to date is that there is a common understanding the outputs of work, namely the outcomes.  There is also an understanding of the parameters of work, and specifically ethical behavior.  What is missing on all levels is an understanding of how to proceed with processes, protocols and structures that make a difference.  Hence, there is no little blue pill solution here.  Rather, acumen for systemic thinking, skills in process-based approaches and the mental discipline needed for sustaining continuous improvement are called for. 

Dr. Shannon Flumerfelt leads the Organizational Development Practice of Inflexion Advisors.

This story is fairly typical and should have been entirely predictable:  

1. - I enter the DMV in Washington, DC and step into the queue.
2. - The counter employee (who I did not identify as “on duty” given her disinterested elbow-lean and gaze into space) literally screams at me to come forward.
3. - After I convey my need, she turns (with no visible signs of comprehension) and silently waits for her colleague to become available to answer my question.
4. - Now two employees are yelling at me, between moments of angry staring.
5. - Following some sarcastic commentary on my part, I leave without my issue having been resolved.

Shocking, I know.  Unfortunately, this plays into so many preexisting stereotypes that it’s hard to have expected anything but this outcome.  That being said, I am 100% certain that each of you have had a similar experience either at your local DMV, with your cable provider, your cellular company and/or at the local mall.  As consumers of a wide variety of goods and services, we constantly encounter this sense of complete and utter customer disinterest.  As professionals in the HR industry, it’s our duty to try and overcome this employee apathy in some systemic way.  Here are some ideas to consider:

• Max McKeown of Management Issues suggests that, “Those who become apathetic (or give up) do so because they see the situation as a problem they have personally caused or something that happens everywhere (pervasive) and always.”  McKeown believes, “A leader’s task is to provide evidence that effort is worthwhile and that things can be better – both generally and particularly. In so doing, they will succeed in overcoming apathy, beating boredom, and restoring purpose to people’s lives.”
• Joanna Brandi of Customer Care Coach thinks that service givers are suffering from what she calls “E.D.S. - Empathy Deficiency Syndrome”.  Among a variety of suggested improvements, Brandi emphasizes that, “it is the manager who is really the connection between the customer and the company. When a manager understands and communicates the importance, the lifetime value, of the customer to the company, people begin to understand why delivering great service should be something they want to do. It’s the responsibility of today’s managers to get people excited about interacting with the customer.”
• Babson Insight’s J.B. Kassarjian has a different point of view, offering that, “The current conventional wisdom suggests that involvement and participation are critical to getting buy-in for any change, and the key is empowering your people. Unfortunately this is more likely to produce cynicism and confusion than to produce measurable change. The optimism of a single dynamic to overcome employee apathy, release creative potential, and mobilize human talent to ease the road to renewal, is in fact a hollow promise.”  He adds that, “to be real it has to be earned, it cannot be bestowed.”

The fact of the matter is that there is no silver bullet in addressing this issue.  It takes time, emphasis and the proper behavioral motivation to be applied in a systematic way to each individual stakeholder.  Many forgot the simple WIIFM rule (”What’s In It for Me?”), and if you can’t provide your front line employees with an answer to this most basic question, I fear this behavior will continue to plague our service industry.

Let’s keep the conversation going.