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

Harry Jonas, Ph.D.Manager, Organization EffectivenessApril 27th, 2007

2Corning Incorporated

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

3Corning Incorporated

Corning Incorporated

Founded:1851

Headquarters:Corning, New York

Employees:Approximately 26,000 worldwide

2006 Revenues:$5.17 Billion

4Corning Incorporated

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.

DisplayTechnologies

Telecommunications

Life Sciences

EnvironmentalTechnologies

5Corning Incorporated

A Culture of Innovation

Processes for mass producing the television bulb

Processes for mass producing the television bulb

19471947

First low-loss optical fiberFirst low-loss optical fiber

1970197019151915

Heat-resistant Pyrex® glass

Heat-resistant Pyrex® glass

19841984

LCD glass for computers and flat panel TVs

LCD glass for computers and flat panel TVs

18791879

Glass envelope for Thomas Edison’s light bulb

Glass envelope for Thomas Edison’s light bulb

19721972

Ceramic substrates for automotive catalytic converters

Ceramic substrates for automotive catalytic converters

6Corning Incorporated

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

7Corning Incorporated

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

8Corning Incorporated

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

Corning Values

9Corning Incorporated

Integrity ValueDefinition:• 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.

10Corning Incorporated

Individual Value DefinitionDefinition:• 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.

11Corning Incorporated

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)

12Corning Incorporated

Obvious Example of Deployment Risks

Our ValuesCommunicationWe have an obligation to communicate. Here, we take the time to talk with one another… and to listen. We believe that information is meant to move and that information moves people.

RespectWe treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment.

IntegrityWe work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won’t do it.

ExcellenceWe are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be. more

13Corning Incorporated

EmployeeEngagementIndex*

EmployeeEngagementIndex*

*Results of Stepwise multiple regression (R2 = .65)• *Engagement index = overall satisfaction, feeling valued• Items listed in descending order of contribution to overall variance

Key Drivers of Employee Engagement

How satisfied are you with your involvement in decisions that affect your work?

How satisfied are you with your involvement in decisions that affect your work?

I am given a real opportunity to improve my skills in this company.

I am given a real opportunity to improve my skills in this company.

How satisfied are you with the recognition you receive for doing a good job?

How satisfied are you with the recognition you receive for doing a good job?

In my work group employees are treated with dignity and respect, regardless of their background.

In my work group employees are treated with dignity and respect, regardless of their background.

14Corning Incorporated

Selected Employee Engagement Strategies

• Partnership (late 1980’s)• GoalSharing (early 1990’s)• iDMAIC (early 2000’s)• Values Toolkit (coming)

15Corning Incorporated

Strategy& Leadership

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

OrganizationAwareness &

Support

Steering Committee& Direction

OrganizationalImprovement

Plan forImplementation

Implementation

Evaluation& Renewal

16Corning Incorporated

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

17Corning Incorporated

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

18Corning Incorporated

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)

19Corning Incorporated

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

THANK YOU!