TFS Human Resources Deployment Strategy Tonya Miller.

TFS Human Resources Deployment Strategy

Tonya Miller

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HR Champion Team

Executive Steering Committee Daniel Casteel

Division HR Champion Tonya Miller

ADT HR Representative Mike Esposito

SimplexGrinnell HR Representative Anne Liming

Tyco Safety Products HR Representative Bob Hetzel

TFS – Communication & Training Lisa Turner

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HR Champion Fit in Six Sigma

Division and Business Unit Consistency

Sharing Business Unit Best Practices

Key Areas

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Make policy-setting decisions regarding six sigma deployment throughout the division

Support six sigma deployment across the division

Function as single point of contact for six sigma Human Resources issues and implementations

HR Champion Fit in Six Sigma

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Division and Business Unit Consistency

Selection

Job postings

Forms

Compensation

Reward and Recognition

Communication

Applicant tracking

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Communicating to employees• Office postings• Website

Recruiting employees• Post cards• Business Unit website

Leverage and share best practices – no need to reinvent the wheel

Business Unit Best Practices

SimplexGrinnell Human Resources Deployment Strategy

Anne Liming

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TFSS and Business Unit Consistency

Sharing Best Practices

Life Cycle of a BB & Professional Development

What Happens Next?

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Selection process

Compensation

Reward and Recognition

LPP

TFSS and Business Unit BB Consistency

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Selection Process

Self-select• Nomination checklist• Resume• Essay [Why I want to be a BB]• Demographic information• Structured interview questions – Lominger

competenciesIdentification of selected BBNotification of personnel not selectedDatabase

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Competencies and Qualities of the Black Belts

LeadershipDiplomacy

Analytical abilities

Trust and Integrity

Customer Advocate

Deep process knowledge

Diverse Work Experience

Open-minded

Eager to learn new ideas

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Black Belt Total Rewards

Compensation & Benefits

Career Progression

Training & Developme

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Work/Life

Total Rewards

Leverage all reward elements in attracting and retaining Black Belts

Compensation

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Objective is to provide Black Belts an increase in total cash compensation compared to existing business role

–Delivered through an increased incentive opportunity

Black Belt candidates will be selected from a wide range of roles and therefore, may have a wide range of base salary and target incentive opportunity

–Variation in pay is acceptable; no attempt to align compensation

–Higher compensated Black Belts should demonstrate higher competencies, and should generally focus on larger, more impactful projects

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Most Black Belts, retain current annual base salary

–Eligible for future salary increases in accordance with the company’s merit increase guidelines

–Annual salary review conducted by Project Champion

In some cases, an equity adjustment may be required. Examples may include:

–Selection to Black Belt program is considered a “promotion” for that particular employee

–Low base salary relative to internal and external market

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Guarantee incentive payment equal to the amount Black Belt would have earned had they remained in current position

Black Belt candidates not currently on an annual incentive plan in FY03 will receive an incentive opportunity equal to 10% of their current base salary

FY 2003

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80% - EBIT and FCF of business unit aligned to Six Sigma projects

–Provides strong “line of sight” to deployment projects as individuals in Black Belt role will focus on projects closely aligned to existing areas of responsibility

–Six Sigma savings and/or profit improvement are reflected in business unit financial measurements

20% - EBIT and FCF of next level up business unit

–Supports teamwork across the organization

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Individual Modifier

–Adjustment for individual performance not captured in the financial measurements

–Recognizes both superior performance (positive modifier) and underperformance (negative modifier)

–Amount of Modifier is discretionary, but reasonable, i.e. +/- 25%

–Frequent use to account for direct results of Six Sigma projects

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Incentives will be paid on an annual basis

–No quarterly payments; not consistent with timing of Black Belt contributions

Self-Select out or do not close projects

–Revert back to original incentive percentage opportunity upon exit from the program

–No incentive premium will be paid for the period of time that an employee was in the program

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Target incentive opportunity increased 10 percentage points compared to FY03 incentive target for current position upon completion of Black Belt Certification

Supports importance of role within the company and the impact of their contributions to overall business performance

Proration of Target Incentive Percentage – FY 2004

–10 percentage point increase in incentive opportunity will prorated to the time of Black Belt Certification…not acceptance to the program

FY 2004

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Cash Award - $2,500 immediately upon certification

–Immediate recognition

–Short time horizon to recognize value

–Greater alignment to individual results

Stock Options

–One time special option grant at the time of Black Belt certification (number of shares TBD)

–Immediate recognition

–Long-term time horizon to recognize value

–Greater alignment to Tyco International results

Reward & Recognition

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Black Belt Life Cycle

Identification

Training

Graduation

Application

Appraisal

Certification

Ongoing Projects

New Assignment

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LPP & Professional Development

LPP – done at the Business Unit Level with review at TFSS

Development plan with Project Champions and Deployment Manager

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Announcement of deployment – conference call with all offices

Communicating to employees• Office postings• Website• FAQ’s

Recruiting employees• Post cards• Personal contacts

Leverage and share best practices – no need to reinvent the wheel

Best Practices

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What Happens Next?

Dedicated HR Mgr: Mike Creed

BB Performance Appraisal: after 2 months then 6 months

Performance Appraisal – all exempt employees evaluated for the Six Sigma participation/training

Training requirements

Communication

Selection Process• Review process to determine best practice• Review assessment center/self-assessment addition to process• Include recent performance appraisal

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Black Belt Application Deadline • Wednesday, April 2

Interview Notification If Pass to 2nd Round• Monday, April 7

2nd Round Applicant Interviews • Wed/Thurs./Fri, April 9,10,11

Black Belt Candidate Notification • Thursday, April 17

BB Training Begins – Wave 1 (13 BB) • Tuesday, April 29

BB Training Begins – Wave 2 (15 BB)• Tuesday, May 13