Welcome

1. Welcome Recognition and Rewards Funding Allocation

2. Purpose Since we have limited time with you today, we ask that you make note of your questions and hold them until the end of our presentation. Since we have limited time with you today, we ask that you make note of your questions and hold them until the end of our presentation.

3. VUMC Recognition and Rewards ...you make a difference! Our initiative will be aligned with the Elevate Pillar of �People� � focusing on the difference they make toward our success!Our initiative will be aligned with the Elevate Pillar of �People� � focusing on the difference they make toward our success!

4. Welcome... Leadership endorsement of our Recognition and Rewards initiative... (discuss placement in Elevate org chart) Notice how Recognition and Rewards will enhance our ability to implement the Elevate principles: Commit to Excellence Measure the Important Things (we are aligning desired behaviors) Build a Culture around Service (standards of behavior) Create and Develop Leaders Focus on Employee Satisfaction Build a Culture around Service Focus on Employee Satisfaction Build Individual Accountability Align Behaviors with Goals and Values Communicate at All Levels Recognize and Reward Success Welcome... Leadership endorsement of our Recognition and Rewards initiative... (discuss placement in Elevate org chart) Notice how Recognition and Rewards will enhance our ability to implement the Elevate principles: Commit to Excellence Measure the Important Things (we are aligning desired behaviors) Build a Culture around Service (standards of behavior) Create and Develop Leaders Focus on Employee Satisfaction Build a Culture around Service Focus on Employee Satisfaction Build Individual Accountability Align Behaviors with Goals and Values Communicate at All Levels Recognize and Reward Success

5. Employee Satisfaction Survey We heard from staff that they want to share in the success of our organization.We heard from staff that they want to share in the success of our organization.

6. Performance Development Performance Evaluation Pay for Performance Success-sharing Recognition and Rewards The Recognition and Rewards is another tool within our overall Performance Development system which includes... Assessment of performance (on-going process of providing feedback to staff that promotes development and success) Pay for Performance (rewards work over the entire year) Success sharing (shares the success of the institution) 2001, 2004 Recognition and Rewards (immediate reward of behaviors and activities which align with our Elevate goals) The Recognition and Rewards is another tool within our overall Performance Development system which includes... Assessment of performance (on-going process of providing feedback to staff that promotes development and success) Pay for Performance (rewards work over the entire year) Success sharing (shares the success of the institution) 2001, 2004 Recognition and Rewards (immediate reward of behaviors and activities which align with our Elevate goals)

7. Our Vision Employer of Choice Engage staff to continuously Learn and develop Contribute to our success Motivate staff toward exceptional behavior Our vision is to be perceived by both our current staff and the community (prospective staff) as the employer of choice This will improve our retention and ability to recruit the best! Reward standards of behavior in order to have a positive impact on customer service Great leaders meet their staff wherever they are, they motivate inconsistent performers to be consistent performers Consistent performers to be exceptional performers Exceptional performers to continue to excel Susan will now walk you through the specifics of our Recognition and Reward initiative...Our vision is to be perceived by both our current staff and the community (prospective staff) as the employer of choice This will improve our retention and ability to recruit the best! Reward standards of behavior in order to have a positive impact on customer service Great leaders meet their staff wherever they are, they motivate inconsistent performers to be consistent performers Consistent performers to be exceptional performers Exceptional performers to continue to excel Susan will now walk you through the specifics of our Recognition and Reward initiative...

8. Recognition and Rewards

9. Timeline Overview timeline and where we are now Emphasize that this is a high level overview for the purposes of addressing funding allocation �details of the program will be provided as we rollout our initiative in May.Overview timeline and where we are now Emphasize that this is a high level overview for the purposes of addressing funding allocation �details of the program will be provided as we rollout our initiative in May.

10. What will we recognize? Behaviors, goals, and attitudes Aligned with: Standards of Behavior Credo Pillar Goal Results Categories tied to our Elevate Pillars: People Service Quality Growth Finance

11. Pillar Categories People Employee Satisfaction Professional Development Recruit the Best Respect for Others Teamwork Service Credo Moments Customer/Patient Satisfaction Improved Access Internal Customer Satisfaction Service Recovery

12. Giving and Receiving Non-monetary recognition �Thank You� cards Monetary awards given by designated �award givers� Awards may be made to any staff member $25.00 awards may be made across areas

13. Award Amounts Lowest award amount $25.00 Highest amount $200.00 Award increments will be: $25.00 - $49.99 $50.00 � $99.99 $100.00 - $149.99 $150.00 - $200.00

14. Evaluation Staff Satisfaction Survey Results Patient Satisfaction Survey Results Focus Groups Fortune 100 Survey Results Recruitment/Retention

15. Recognition and Rewards Demo Site

16. Recognition and Rewards Funding Allocation How does it work? You just saw a short demonstration of how a manager will make an award in the system. We showed you how the manager was able to check their recognition and reward funding allocation before issuing an award. In the next few minutes, I�m going to... - Give you an understanding of how we at VUMC will determine the award funding allocation for Recognition and RewardsYou just saw a short demonstration of how a manager will make an award in the system. We showed you how the manager was able to check their recognition and reward funding allocation before issuing an award. In the next few minutes, I�m going to... - Give you an understanding of how we at VUMC will determine the award funding allocation for Recognition and Rewards

17. Where does the award money come from? Centrally budgeted Funded through fringe benefit rate Funding allocation and usage tracked One of the first questions you might have is, �Where does the award money come from?� The medical center has allocated one million dollars for recognition and rewards to be distributed across the medical center. The funds for recognition and reward are centrally budgeted... And will be included in the fringe benefit rate. The impact to the rate is insignificant with an impact of less than a tenth of a percent. Award Givers will see their total dollar award allocation and usage tracked in our Recognition and Rewards system only. One of the first questions you might have is, �Where does the award money come from?� The medical center has allocated one million dollars for recognition and rewards to be distributed across the medical center. The funds for recognition and reward are centrally budgeted... And will be included in the fringe benefit rate. The impact to the rate is insignificant with an impact of less than a tenth of a percent. Award Givers will see their total dollar award allocation and usage tracked in our Recognition and Rewards system only.

18. How much money will each area be given to award? Staff headcount by home department Revised annually At a specific point in time The Recognition and Reward funding distribution will be based on staff headcount by Home Department. At the beginning of each fiscal year, a new award allocation will be made based on headcount at that point in time. (Please note that for this year, our goal is to try to have the system available right after the May Leadership Development Institute sessions. If we meet that goal, this year�s award allocation would cover the remainder of fiscal year �05 and all of fiscal year �06, or approximately 14 months instead of 12. The Recognition and Reward funding distribution will be based on staff headcount by Home Department. At the beginning of each fiscal year, a new award allocation will be made based on headcount at that point in time. (Please note that for this year, our goal is to try to have the system available right after the May Leadership Development Institute sessions. If we meet that goal, this year�s award allocation would cover the remainder of fiscal year �05 and all of fiscal year �06, or approximately 14 months instead of 12.

19. List of �Award Givers� Percent of funding per �Award Giver� What will you need to provide? After this meeting, you will need to go back to your areas and determine Which individuals you would like to designate to issue awards. We are calling these individuals �award givers.� You will also need to decide what percent of your overall funding allocation that you want each of your award givers to have We will send you an Excel spreadsheet so that you can input this data and return it. I will show you a sample spreadsheet later in just a few minutes so that you can see the type of data you will have to work with We must have these returned no later than Monday, April 11, so that we will have enough time to get the data into our Recognition and Rewards system After this meeting, you will need to go back to your areas and determine Which individuals you would like to designate to issue awards. We are calling these individuals �award givers.� You will also need to decide what percent of your overall funding allocation that you want each of your award givers to have We will send you an Excel spreadsheet so that you can input this data and return it. I will show you a sample spreadsheet later in just a few minutes so that you can see the type of data you will have to work with We must have these returned no later than Monday, April 11, so that we will have enough time to get the data into our Recognition and Rewards system

20. Who will give the awards in each area? YOU decide Who will give the awards in each area? You will make that decision based on the structure and needs of your area. Who will give the awards in each area? You will make that decision based on the structure and needs of your area.

21. How do I choose the award givers and allocate award funding? Principles to consider Sample award funding models How do you make decisions about who to choose to become the award givers? Let�s look at the basic principles of the program and what we are trying to accomplish in our areas and as an institution. (Change slide) Once you have determined your award givers, you need to think about how you want to distribute your award allocation. Again, you have the choice as to how you distribute the award allocation in your area; however, we thought it might be helpful to show you a few different examples of how you might structure this. How do you make decisions about who to choose to become the award givers? Let�s look at the basic principles of the program and what we are trying to accomplish in our areas and as an institution. (Change slide) Once you have determined your award givers, you need to think about how you want to distribute your award allocation. Again, you have the choice as to how you distribute the award allocation in your area; however, we thought it might be helpful to show you a few different examples of how you might structure this.

22. Award Givers are Individuals who can� Provide specific feedback Directly relate to the accomplishment Award staff at their current level Elevate them to the next level Recognize excellent examples With this program, we want to align specific behaviors by... Providing staff with specific feedback and recognition that directly relates to their accomplishments Awarding staff at their current level and as their performance progresses, try to elevate them to the next level through recognition and rewards Recognizing those employees that set excellent examples of our standards of behavior - When you choose award givers for your areas, consider those managers and supervisors who can most easily identify staff accomplishments and would be able to provide this type of specific feedback and recognitionWith this program, we want to align specific behaviors by... Providing staff with specific feedback and recognition that directly relates to their accomplishments Awarding staff at their current level and as their performance progresses, try to elevate them to the next level through recognition and rewards Recognizing those employees that set excellent examples of our standards of behavior - When you choose award givers for your areas, consider those managers and supervisors who can most easily identify staff accomplishments and would be able to provide this type of specific feedback and recognition

23. Department �A� Funding Allocation Here we see a graph which is representing the total VUMC Reward and Recognition Funding Allocation of one million dollars, divided by departments (Please note that I am using the word department in the generic sense of area, division, department or group of departments). Department A will get a certain portion of the million dollars based on the total headcount in their area. As you can see, Department A has chosen to divide their allocation and give half to their front-line supervisors, while keeping half as a central recognition pool for their area. Here we see a graph which is representing the total VUMC Reward and Recognition Funding Allocation of one million dollars, divided by departments (Please note that I am using the word department in the generic sense of area, division, department or group of departments). Department A will get a certain portion of the million dollars based on the total headcount in their area. As you can see, Department A has chosen to divide their allocation and give half to their front-line supervisors, while keeping half as a central recognition pool for their area.

24. Department �B� Funding Allocation Area �B� Distributes funds to every supervisor in the department based on that supervisor�s headcountArea �B� Distributes funds to every supervisor in the department based on that supervisor�s headcount

25. Department �C� Funding Allocation Area �C� Keeps the entire funding allocation with the area administrator who functions as the sole award giver When you return your funding allocation to us we will load it into our Recognition and Rewards system so that the �award givers� will be able to see their allocation and track usage in the system. Once the system is live, the award givers you designate now may further identify other award givers; however, the additional award givers would be linked to the original award giver�s allocation and will have the added complexity of not having a separate allocation in the system. Therefore, it is important that you thoughtfully consider who you want to be award givers and allocation percentages prior to submitting your spreadsheet by April 11. Let�s now look at an example of how this will work�Area �C� Keeps the entire funding allocation with the area administrator who functions as the sole award giver When you return your funding allocation to us we will load it into our Recognition and Rewards system so that the �award givers� will be able to see their allocation and track usage in the system. Once the system is live, the award givers you designate now may further identify other award givers; however, the additional award givers would be linked to the original award giver�s allocation and will have the added complexity of not having a separate allocation in the system. Therefore, it is important that you thoughtfully consider who you want to be award givers and allocation percentages prior to submitting your spreadsheet by April 11. Let�s now look at an example of how this will work�

26. Example Department C designates John Smith as the �award giver� by April 11 John Smith has an allocation of $10,000 Recognition and Rewards System goes live in May 2005 John Smith further designates two other awards givers in the system in July 2005 Each is told they may spend $1,500 John must monitor the $3,000 as part of his $10,000

27. Summary Identify Award Givers Determine percent of total allocation Return spreadsheet by April 11 With our initiative, we want to align specific behaviors by... Providing staff with specific feedback and recognition that directly relates to their accomplishments Awarding staff at their current level and as their performance progresses, try to elevate them to the next level through recognition and rewards Recognizing those employees that set excellent examples of our standards of behavior - When you choose award givers for your areas, consider those managers and supervisors who can most easily identify staff accomplishments and would be able to provide this type of specific feedback and recognitionWith our initiative, we want to align specific behaviors by... Providing staff with specific feedback and recognition that directly relates to their accomplishments Awarding staff at their current level and as their performance progresses, try to elevate them to the next level through recognition and rewards Recognizing those employees that set excellent examples of our standards of behavior - When you choose award givers for your areas, consider those managers and supervisors who can most easily identify staff accomplishments and would be able to provide this type of specific feedback and recognition

28. Questions?