Creating Executive Commitment

1
Creating Executive Commitment a Culture of
Health

• Gary M. Billotti
• Leader, Health Human Performance, The Dow
  Chemical Company

HERO Forum for Employee Health Management
Solutions September 18-20, 2006 Chicago
2
Remarks

• Dow Background
• Culture Concepts
• The Dow Experience
• Summary

3
The Worlds Largest Chemical Company

• Sales exceeding 40 billion
• 165 manufacturing sites in 37 countries
• Changing global demographics brings new
  challenges
• China
• India
• Brazil
• Russia
• Middle East

4
More About Dow

• Founded 1897 in Midland, Michigan
• Strong Midwestern roots and values
• 43,000 employees around the world (22,000 U.S.)
• 54 percent of all employees are in manufacturing
  roles
• Major U.S. locations in smaller communities
• Ratio of male to female is 3 to 1
• Environmental Health Safety vs. Human Resources

5
Dow Essential Elements

• Mission - Why We're HereTo constantly improve
  what is essential to human progress by mastering
  science and technology.
• Vision - What We Seek to BecomeTo be the
  largest, most profitable, most respected chemical
  company in the world.
• Values - Who We AreIntegrity and Respect for
  People
• Strategic Themes How We Accomplish our
  Strategy
• Driving financial discipline and low cost to
  serve
• Setting the standard for sustainability.
• Building a people centric performance culture
• Investing in strategic growth

6
Organizational Culture Descriptions

• The integrated pattern of human behavior that
  includes thought, speech, action and artifacts.
• The prevailing behavior patterns and reflects
  what is acceptable or not acceptable, what is
  important or not important.
• How things get done around here

, Source Joel Levey, PhD, Michelle Levey, MA,
IHPM, 2001
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Levers That Impact Individual Behaviors

• Rewards/recognition
• Communication
• Structure of programs and services
• Organization health culture
• Individual beliefs and attitudes
• Personal health status

Source Benefits Roundtable 2003 Health Behaviors
Survey
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Source Benefits Roundtable 2003 Health Behaviors
Survey
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Organizational Health Culture

• In addition to incentives, communications, and
  program design, the Roundtables 2003 Health
  Behaviors Survey tested the influence of
  different cultural elements on health-related
  behaviors.
• The Roundtables analysis shows that some
  organizational health culture elements (such as
  caring about health and open communications)
  outpace other elements (such as visible senior
  management support and team-based work) in terms
  of participation influence.

Source Benefits Roundtable 2003 Health Behaviors
Survey
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Managing Complex Cultural Change
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The Dow Experience

• Design
• Communication Strategy
• Leadership Involvement
• Programs and Services
• Health Services Staff Culture
• Vendors and Providers

12
The Dow Experience

• Design
• Business Case
• Principles
• Integrated comprehensive approach

13
The Business Case

• Total Economic Impact related to Employee and
  Retiree Health likely exceeds 750 million/year
  for Dow.
• Keeping US health care benefit costs in the lower
  end of the trend estimates could save Dow as much
  as 0.07/ share in 2008.
• Many health care experts have estimated that a
  third of current benefits expenditures may be
  spent on unnecessary or inefficient care.
• Most experts agree that 30 - 50 of health care
  conditions and illness could be modified by
  preventive health interventions.
• Significant legislative and regulatory actions
  are developing and pending which will impact
  health care, particularly in the US.

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The Dow Health Impact Opportunity

• The opportunity is to design and implement a Dow
  Health Strategy that supports an improved
  financial position relative to the economic
  impact from health AND creates a climate of
  support, engagement and satisfaction on the part
  of key stakeholders

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Total Economic Impact of Health
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Dow Study Overview
Achieved 63 participation No Incentive

• Research study
• 12,000 employees
• Three Survey Tools
• Email / web based administration
• Data merge with comprehensive extant data
• Characterize presenteeism, functional status
• Special focus on chronic illness

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Guiding Principles

• Employee advocacy
• Total Health approach
• Links to business strategies and priorities
• Investment approach
• Cross-functional
• Priorities determined by impact on both direct
  and indirect costs
• Data driven

18
The Importance of One

• You arx a kxy pxrson. Although my
  writing machinx is quitx old,
• it works wxll, xcxpt for onx kxy. At first, you
  may think if thx othxr kxys
• work wxll, nobody will rxalizx that onx kxy is
  not working wxll.
• Howxvxr, it is apparxnt that only onx kxy not
  xffxctivxly working
• can wrxck thx wholx xffort. You may say to
  yoursxlf wxll, I am
• just onx pxrson. Nobody will rxalizx if I dont
  do my job as wxll as I
• can. But, this is xxactly thx diffxrxncx,
  bxcausx a succxsful
• txam nxxds thx activx participation of xvxryonx
  with thx bxst
• possiblx capacity. So, nxxt timx you think you
  arx not important,
• rxmxmbxr my old writing machinx.
• You arx a kxy pxrson.

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Health and Human Performance

• Most companies have operated on the belief that
  high performance is exclusively linked with
  cognitive and intellectual capacity. Data and
  research have proven that for companies to
  achieve breakthrough growth and success, they
  must also focus on all of the elements of human
  performance the body, the emotions, the spirit
  - consider the person as a whole.

Harvard Business Review January 2001 Jim Loehr
and Tony Schwartz
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Is this a Health Issue or a Management Issue?
Health Issues
Management Issues
Source Dr E Teasdale and Dr R Heron AstraZeneca
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Dow Chemical Health Human Performance
EAP
Human Resource Development
Industrial Hygiene
Group Health Benefits
Health Promotion
Safety
Occupational Health
Employment Accident Benefit
Worklife/Diversity
Organizational Effectiveness
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Dow Health Strategy Vision

• We optimize health, human performance, and the
  long-term value for Dow by offering an array of
  health programs and services for employees,
  retirees, and dependents as part of being an
  employer of choice.

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Vision Elements
Advocacy
c o m m u n i c a t i o n
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Dow Health Strategy Metrics

• Health Care Costs
• Health-related Productivity (Absenteeism
  Presenteeism)
• Health Status / behaviors
• Health Risks
• Quality
• Advocacy
• Healthy Culture
• 1) My work environment enables me to maintain
  good health
• 2) Work-related stress does not interfere with
  doing my job well
• 3) Dow has a sincere interest in the health and
  well-being of employees
• 4) I am held accountable for doing my work in a
  manner that is safe//
• 5) People in my work area are protected from
  health and safety hazards.
• 6) The leader I report to enables flexible and
  innovative solutions for managing work and
  personal life

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The Dow Experience

• Design
• Communication Strategy

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Communication Strategy

• Focus on shared responsibility and behavior
• Emphasize the benefits to the individual both
  financial and health wise
• Integrate messages into existing communications
  and processes, i.e., expand safety culture to
  health and safety culture
• Recognize that health issues are very personal,
  therefore a heavy-handed approach will not be
  effective

• Sample objectives
• Create a corporate culture that supports people
  being healthy
• Extend the culture of health to include
  families and retirees

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Communication Strategy 2005-2006
Health Strategy Communications Update
Awareness
Questioning
Acceptance
Sustaining

• Unclear on scope, rationale, and nature of change
• Unrealistic expectations
• Rumor mill activity
• Seeking information

• Realization of the effort and complexity
• Uncertainty and confusion
• Fear of the unknown
• Concern over personal impact

• Recognition of personal benefits
• Value to organization is understood
• Comfort achieved
• Willing to use technology

• Change internalized
• Supporting behaviors demonstrated
• Improved performance

Response
Purpose
Market Sell Case for Change
Solicit Input and Educate
Encourage and Support
Reinforce and Reward

• Ensure that the compelling business reasons for
  change are clear to all employees
• Set expectations and begin preparing people to
  change

• Allow for two-way communications opportunities
  which allow for resistance and questioning
• Clearly define change

• Motivate people to let go of the old way of doing
  things
• Influence people to try to accept the new way of
  doing things
• Success stories

• Reinforce the desired behavior in the changed
  organization
• Promote the internalization of new behaviors to
  establish new culture
• Encourage sustained acceptance and
  internalization of the new technology
• Celebrate success

Goals
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Dow Health Message Map

• Employee Health Protection of health for
  workers, human performance optimization,
  financial performance
• Public Health Impact Product stewardship and
  community citizen responsibilities, financial,
  educational/ intellectual, physical/ security
• Products for Health Impact Meeting important
  societal human health needs

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The Dow Experience

• Design
• Integration and development of principles
• Communication Strategy
• Leadership Involvement
• Leading by Example
• 2015 goals Health Index
• Get Fit with Bob
• H H Dow Academy

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Organizational Health Culture Leaders

• While visible commitment from senior management
  is not as strong a driver of an individuals
  participation in prevention, senior management
  does have a significant role to play in forging a
  corporate culture in which employees believe that
  the organization cares about their health and
  well-being.

Benefits Roundtable of the Corporate Executive
BoardJanuary 2004
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Top Leadership

• Leading By Example, a CEO-to-CEO initiative
  sponsored by the Partnership for Prevention,
  focuses on the business priority of supporting
  health at the worksite.

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A Strategic Approach to Building a Culture of
Health

• I believe we need a sustained focus on
  prevention to maintain and improve the health of
  our people. Prevention has the power to make a
  real and lasting difference in our individual
  quality of life...
• Our analysis shows that prevention can improve
  both our direct and indirect health related
  costs. Our profit potential is inextricably
  linked to the capability and performance of our
  employees.
• We have recently strengthened our commitment to
  this effort by adopting a strategic approach to
  building a culture of health with prevention as a
  major pillar in our overall plan.
• Andrew N. Liveris, President and CEO

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2015 Sustainability Goals

• Local Protection of Human Health and the
  Environment
• By 2015, Dow will achieve on average a 75 percent
  improvement of key indicators for EHS operating
  excellence from 2005 baseline and community
  collaborative sustainable commitments.
• By year-end 2015
• Dow will achieve an injury and illness rate of
  0.08 per 200,000 hours
• All sites combined will have fewer than 75 leaks,
  breaks and spills
• All sites will reduce process safety incidents
  and the severity rate
• Dow will reduce the motor vehicle accident (MVA)
  rate for all Dow EEs ..
• Target sites will have achieved site-specific
  goals addressing needs such as security, waste
  generation and emissions, maintaining and
  improving employee health, and resource
  conservation.

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Get Fit with Bob!

• .... and get healthy
• While we are all working to get Dow "fit" for
  the future, we have another opportunity -- to get
  "fit" for ourselves. I'm initiating a program
  for myself, and need some company. Our Health
  Services group tells me that 85 of employees at
  our Texas site are either overweight or obese.
  That tells me that some of you may want to join
  in. We need to make some progress and I want to
  invite you as a leader to help get us started.
  Some of us need to lose, others need to maintain.
  Let's do this right. The plan is outlined below
  . . .
• June 2005

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HH Dow Academy

• "Dow must offer an extensive leadership
  development strategy to nurture talent for
  corporate-critical roles, we need to start
  building our next generation of top leaders
  today, and we need to equip them with what it
  takes to successfully meet complex future
  challenges."
• The program is designed to enhance participant's
  strategic and global leadership skills through
  action learning.
• Top Leaders at Dow (V3 and above)
• Energy for Performance Executive Course
  Human Performance Institute

36
The Dow Experience

• Design
• Integration and development of principles
• Communication Strategy
• Leadership Involvement
• Leading by Example
• Programs and Services

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Communication E-health

• Good Health for the Whole Self
• Global
• Brand builds trust through consistency
• Intranet site and Internet web-based self
  service
• www.dowfamilyhealth.com
• Coordinated with Benefits

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Stress Management Measurement Domains
Sources
Individual Differences
Effects
Job Satisfaction Organisational Satisfaction
Organisational Security Organisational
Commitment State of Mind Resilience Confidence
Level Physical Symptoms Energy Levels
Workload Relationships Recognition Organisational
Climate Personal Responsibility Managerial
Role Home/Work Balance Daily Hassles
Sources ofPressure
IndividualDifferences
Effects
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History Corporate Smoking Policy

• U.S. Policy First U.S. policy implemented in
  1993
• Owned by Human Resources
• Supported by Health Services
• Current U.S. Policy - Implemented January 1, 2003
• All Dow property and meetings are smoke free.

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Case Management Overview

• Program Objectives
• Rapid return to health and return to work
• Effective and efficient use of services
• Highly satisfied participants and Dow Management
• Key Program Features
• Global Operating Discipline from broad engagement
  (HR, EAP, Workers comp, employees, supervisors)
• Voluntary
• Health Advocacy Model
• Early Identification, Triage and Action
• Site Pilot (Midland Operations) 2000-2002
• A Six Sigma project used to create the model
  program

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Health Surveillance

• 90 participation in 2004 globally
• 95 of employees responded that health assessment
  is a valuable service provided by Dow
• Built from the existing safety culture
• Includes counseling referral follow up

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Overweight Obesity Study

• Partner with the National Heart Lung and Blood
  Institute,
• Cornell University, Medstat, and the University
  of Georgia . . .
• Study Purpose Design, implementation and
  evaluation of innovative and evidence based
  approaches to organizational/supportive
  environment interventions aimed at reducing the
  prevalence of obesity and overweight among Dow
• Twelve sites participating
• Evaluation documentation of interventions that
  impact overweight and obesity at the workplace .

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Interventions

• Employees have access to healthy food choices
• Access to physical activity
• Site health goal (in alignment with Site MI Plan)
• Work group alignment to the site health goal
• Tracking and reporting (to Gary Veurink) of site
  and work group goal activities
• Leadership learning/training
• Site leadership and cross-discipline team
  recognition

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The Dow Experience

• Design
• Integration and development of principles
• Communication Strategy
• Leadership Involvement
• Leading by Example
• Programs and Services
• Health Services Staff Culture
• Vendors and Providers

45
Health Services Staff Culture

• Global Integration
• Prevention Focus
• Focal Point Roles
• Performance tied to health improvements
• Cross functional involvement
• Professional Development

46
The Dow Experience

• Design
• Integration and development of principles
• Communication Strategy
• Leadership Involvement
• Leading by Example
• Programs and Services
• Health Services Staff Culture
• Vendors and Providers

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Vendor or Partner ?

• ven-dor
• 1 one that vends seller
• part-ner
• 1 one who shares one or two or more persons
  who play together in a game against the opposing
  side one of the heavy timbers that strengthen a
  ships deck to support the mast.

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Dow Health Partner SummitPurpose and Objectives

• Purpose
• To convene key Dow health-related service
  providers for an intensive review of Dow's Health
  and Human Performance efforts, and to determine
  how each provider plays a role both independently
  and interdependently in helping Dow achieve its
  objectives. This effort will enable a more
  efficient and effective approach to providing
  services to enhance the health of the Dow
  community.

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Summary

• Business Case provides the platform
• Effective Communication is critical
• Integration across functions and with partners
• Alignment with Business Priorities
• Champions at all levels
• All strategy and implementation approaches impact
  organizational culture whether intentionally or
  unintentionally.

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References

• HeartCentered Leadership Susan Steinbrecher
  Joel Bennett
• Flow The Psychology of Optimal Experience
  Mihaly Csikszentmihalyi
• The Corporate Athelete Jack Groppel
• The Power of Full Engagement Jim Loehr and Tony
  Schwartz
• Seven Habits of Highly Effective People Stephen
  Covey

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