Scanlon December 2005 E-zine

Greetings!

In this issue of the Scanlon E-Zine our lead story is about Watermark Credit Union, the first Scanlon Plan in the financial services industry! Their EPIC plan is state-of-the-art and one of the most beautiful presentations we have ever seen. Members of the Network may download a copy in the member-only area of our web site.

About half of US and Canadian employees are unhappy with their employers and are looking for an employer where they will be appreciated. In this E-Zine we explain why most companies are unprepared to win the retention battle.


Watermark Approves EPIC Plan
EPIC, the first ever Scanlon Plan in financial services, was recently approved by the Board of Directors at Watermark Credit Union in Seattle, WA to improve employee involvement in the ways the organization does business.

Five years ago Chuck Cockburn, President/CEO of Watermark Credit Union, began doing extensive research on gainsharing plans and concluded Scanlon was the best solution for Watermark. He felt confident that everyone would be receptive to having a plan in place, and the last seven months have been dedicated to completing Watermark’s written plan.

The EPIC plan is based on the four Scanlon Principles: Equity, Participation, Identity and Competence. Cockburn anticipates that these principles will aid in maximizing the potential of the employees while enhancing productivity.

“Being this is the first Scanlon plan in financial services, we are on the cutting edge of other institutions,” explained Meredith Morse, Operations Coordinator and EPIC Plan Coordinator for Watermark. “The EPIC plan differentiates us from other credit unions because it places value on the knowledge and skill of the employees.”

Morse was selected as the EPIC plan coordinator because of her past experience and exposure to top management. Her role has been planning and facilitating meetings, coordinating activities, researching Scanlon questions, and serving as a bridge between management and hourly staff. As voting day drew nearer, Morse often found herself dedicating all 40 hours of her work week to EPIC duties.

“As coordinator, I have learned how much employees want to contribute to Watermark’s continued success,” explained Morse. “The employees will be the main contributor to constantly improving processes and making Watermark a better place to work.”

Design and implementation were among Watermark’s top priorities throughout the last year. A specific EPIC Plan Design Team was chosen by each department to play a key role in developing the plan. This team was granted as much time as necessary to research Scanlon and prepare for designing EPIC. All employees that were not involved in development were entitled to the meeting minutes and a two- week question-and-answer period.

Two main costs that Watermark faced during the entire process was in printing informative EPIC Plan booklets for all employees as well as hiring a consultant to prepare a high-quality presentation that was given for everyone at the credit union on the day of voting.

“We are confident these costs are beneficial because they have kept employees informed and will aid them in making suggestions for improvement down the road,” stated Morse.

On October 11, 86 percent of the Watermark employees voted in favor of implementing the EPIC Plan.

Implementation of the plan has brought specified training for each employee and special software to track the status of suggestions as well as to aid in communication of critical measures. Through advances like these, employees are expected to learn about their role in Watermark’s success while offering ideas for process improvements and innovation.

“Each organization needs a good strategic plan,” explained Cockburn. “In a few years I want to share our results of how a participative gainsharing system works. I hope other financial institutions will use Watermark as an example of intrinsic motivation being the key to productivity and employee satisfaction.”

On May 23, 1938, Ted Baer and his colleagues at Pacific Telephone & Telegraph of King County started what is known today as Watermark Credit Union. Opening with 178 members, Watermark was the 60th credit union established in the state of Washington and Baer was elected as its first treasurer.

Since its organization, Watermark has been served by six CEOs with two different locations. Significant changes have also occurred in products, services, delivery channels and field of membership – all contributing to its expansion and growth. Over the years, the credit union has become one of the largest in the state welcoming more than 70,000 members and $445 million in assets.

The credit union chose its name because a watermark is a symbol that represents the three characteristics it strives to deliver to customers – quality, security and excellence. Under the leadership of Chuck Cockburn, the credit union has established a goal to become a strong financial institution that can withstand both the anticipated and unforeseen events that will take place in the future. Watermark has become an organization that focuses on quality and is continuously improving the service for its members, as well as enhancing and improving the work environment for its employees.

To learn more about Watermark....



The Seven Reasons Employees Leave: The Rising Issue of Retention
Retention, which is critical to organizational success, is becoming a rising issue in today’s workforce. Statistics show that more than 50 percent of Americans and Canadians are dissatisfied with their current job and are getting ready to bail on their employers.

Recently Paul Davis, President of the Scanlon Leadership Network, discussed retention issues at the “Effective Employee Retentions Practices” program sponsored by the Chatham-Kent Workforce Committee, a group in Canada that is starting to take a look at the issue of retention.

Davis’s presentation sited Leigh Branham’s book The Seven Hidden Reasons Employees Leave. Branham’s research concludes that while 89 percent of managers think employees leave the job seeking more money, 88 percent of those employees leave for one of the seven reasons discussed in his book.

Those reasons, which reflect employees’ feelings of loss in the areas of trust, hope, worth and competence, are: 1) The job workplace is not living up to expectations; 2) The mismatch between job and person; 3) Too little coaching and feedback; 4) Too few growth and advancement opportunities; 5) Feeling devalued and unrecognized; 6) Stress from overwork and work-life imbalance; and 7) Loss of trust and confidence in senior leaders.

Employees that are leaving their organization are said to be migrating to well-established companies that are considered better places to work. They want to fulfill a desire to be part of an organization that stands for something and can provide them with personal fulfillment.

“Every time an employee is replaced the company loses approximately one year’s salary”, explained Davis. “It also loses the institutional knowledge that is accumulated through work experience and found only in the employee’s mind.”

In his book, Branham also suggests that companies rely too much on tangible, easy-to-implement solutions revolving around pay, benefits, and perks when the most powerful solutions result from the management and culture of the organization.

The Presentation as a pdf file....



Best Practice Process Quick And Easy, Submissions Due
The Scanlon Leadership Network has made the Best Practice idea-submitting process quick and easy to promote optimum participation. With the New Year quickly approaching, the Network invites all members to take part in the 2006 Best Practices program by submitting a one-page form before the January 31, 2006 deadline.

“This is the first time that I have submitted a Best Practice idea,” explained Bethane Gilbertson, Production Coordinator at Thomson-Shore Inc. in Dexter, MI. Gilbertson was the first to submit a Best Practice idea for 2006. “The process was very simple and took approximately 45 minutes of my time.

“I submitted The Thomson-Shore Equity CAFÉ Best Practice idea online at the Scanlon Leadership Network Web site. The required one-page form was user friendly and acted as a guide for gathering all the necessary information,” said Gilbertson.

The Network notes that every idea has value and encourages members to participate because submissions can help others more effectively practice the Scanlon Principles and Process. Ideas should tie into the Scanlon Principles, be useful for all members, show effective results and be documented clearly.

“Everyone here at Thomson-Shore is proud of our idea,” explained Gilbertson. “Through our submission, we hope to spark interest and ideas in other Scanlon- based companies.”

All members interested in submitting a 2006 Best Practice idea should log onto the Network’s Web site at www.scanlonleader.org. Under the Main Menu portion of the Web page is a link to the site’s Best Practices section. Once on that page, members will find a detailed explanation about Best Practices and the link to obtain the online submission form. The Network office can also be contacted at 517-332- 8927 to aid members in submitting their ideas.

To submit a Best Practice


As I See It

Chuck Cockburn has been with Watermark Credit Union for more than four years and is currently the President/CEO. He is responsible for introducing the idea of having a Scanlon Plan in place at Watermark.

“I look forward to implementing the EPIC Plan at our credit union because it will tap into the creativity and ideas of the employees,” stated Chuck.

“EPIC will help employees understand our history, direction and our business. They will gain a better understanding of their role at Watermark and how to help the company excel,” he continued. “The knowledge and career enhancing skills that will result from implementing the plan can also help employees reach their fullest potential.

“The employees have been very cooperative and approved the plan with an 86 percent positive vote,” explained Chuck. “I am pleased with the enthusiasm everyone has for our training program and the election of representatives. I also want to compliment the Design Team on the tremendous job they did developing the EPIC Plan.

“EPIC will enhance productivity and aid in a successful future, not only for the credit union, but for the employees and its members.”



AJ Watson is a Programmer/Analyst at Watermark Credit Union in Seattle, WA. AJ has been with the credit union for the last four years. She serves on the company’s EPIC Plan Design Team aiding in the development and implementation of the plan.

“I was surprised with the amount of excitement that occurred upon introduction of the EPIC Plan to our employees. All the feedback and cooperation that I have received has been overwhelmingly positive,” explained AJ.

“EPIC has directly affected my job being a Programmer/Analyst because it is my duty to improve processes that hinder a fully productive workday for our employees,” she said. “EPIC has enabled the creation of new committees who review and accept suggestions. These suggestions are then passed on to me with a clear plan for implementation.

“I am excited to see how much of an impact our employees can have on Watermark’s success with the EPIC Plan in place,” AJ continued. “Once employees see that their ideas are making a difference, it will help boost their confidence.

“Employees feel empowered through the EPIC Plan. They have knowledge of where our company stands, what its long-term goals are, and where they fit in.”