success stor ies

About FranklinCoveyOperations:Franklin Covey Canada, Ltd. is a wholly owned subsidiary of the Franklin Covey Co., based in Salt Lake City, Utah. The Canadian headquarters are located in Cambridge, Ontario. The company has 6 retail locations across Canada: in Cambridge, Toronto, North York, Ottawa, Calgary and Vancouver. In Canada, the company has 108 employees. Worldwide, FranklinCovey has about 3,000 employees and 44 offices throughout 33 countries.

Products and Services:FranklinCovey provides solutions to help individuals and organizations use proven principles to increase effectiveness, build trust, improve performance and strengthen relationships.The company develops and distributes products and training in leadership, communication and time/project management. Its Franklin Planner™ and training products are printed in 28 languages and are distributed in 170 countries.

International Achievements:• The 7 Habits of Highly Effective People, one of the best-selling business

books of all time throughout the world, is currently available in 32 languages.

• The company trains more than 750,000 people annually and has certified more than 19,000 in-house corporate facilitators.

• FranklinCovey holds public workshops in more than 400 cities throughout the world.

• The company has over 15 million individual Franklin Planner™ users.• The company consults with more than 80 of the Fortune 100

companies, more than two-thirds of the Fortune 500 companies, thousands of mid-sized and smaller companies, governments, educational institutions, communities and families.

We help organizations succeed by unleashing the power of their workforce to focus and execute on top business priorities.

FranklinCovey MissionWe inspire change by igniting the

power of proven principles so that

people and organizations achieve

— what matters most.

FranklinCovey VisionTo be the premier personal and

organizational effectiveness firm

in the world:

• impacting millions of

lives a year

• generating superb financial

results; and,

• building a great enduring

company - a model of what

we teach.

Discover

how companies

are Unleashing Employee Power

to Focus and Execute

on Top Business Priorities

Memorial Medical Inc. p.4

Oakwood Healthcare p.6

JEA p.8

Lake Mead Recreation Area p.9

Kimball International p.10

Blockbuster p.12

Federal Express p.14

ScriptSave p.16

Younger Brothers Construction p.18

4

success stories

5

FranklinCovey training helps hospital boost employee productivity by 40%

Las Cruces-based Memorial Medical Center, Inc. employs 1,500 “team members” and serves 300,000 residents of the state’s second largest city and surrounding counties. Challenge: find new cost-effective approaches to quality care and retain qualified caregivers in a

market that’s experiencing high turnover, low job satisfaction and funding cuts. Solution: “Internal Experts”, a team of staff leaders certified in FranklinCovey training. Result: Memorial Medical Center—one of only two acute-care hospitals in southern New

Mexico—has created a culture of cooperation, communication and achievement, resulting in high job satisfaction, low turnover and removed barriers to improved patient care.

The hospital has realized a 40% 1 increase in employee productivity as a result of time saved or gained each week as well as return of $1.74 2 for every dollar spent on training.

40%increase

Memorial Medical Center, Inc.

Improving Employee Satisfaction and Patient Care in the Face of Oncoming CompetitionThere’s likely no more challenging business environment today than that of healthcare. Just ask Carter Campbell, director of Educational Services at Memorial Medical Center, Inc., in Las Cruces, New Mexico.

A registered nurse with years of critical-care experience, Campbell now leads training and education initiatives for what has been the only acute-care hospital in southern New Mexico. Memorial Medical Center, Inc., employs 1,500 ‘’team members’’ and serves the 300,000 residents of the state’s second largest city and surrounding communities and counties.

A fixture in the Las Cruces community since 1950, Memorial is also no stranger to the changing landscape of healthcare operations. Nationwide there’s a severe labour shortage of nursing, pharmacy, radiology, and lab professionals. Add lower job-satisfaction levels, high turnover, and shrinking federal reimbursements to the mix of national healthcare issues. Then pile on legislative funding cuts and direct competition from a new hospital opening in Las Cruces in August 2002. It’s soon apparent that new approaches to quality care, retaining qualif ied care givers, and finding ways to reduce costs are top priorities for Memorial.

“As a not-for-profit community hospital, our challenge is maintaining our community mission but acting like an investor-owned hospital in order to survive,” Campbell said. “The new hospital has an investor-owned mission, whereas we are chartered to provide for the needs of every member of our community. But we had to escape the mind-set that people should come here simply because we’ve been part of the community longer.”

“We’ve always had competition,” said Laura Pierce, Memorial’s assistant vice president of Human Resources. “El Paso, Texas is only a 40-minute drive from here. People live here and commute there, and vice versa. We’ve just never had competition within our own community before.”

She added, “The reason our team members work at Memorial is because they care about their community and their patients. But now it will be easier for them to go work for the new hospital, or work both places. We’ve found it’s really important to invest in the talent of our team members. Obviously we want to be their employer of choice.”

Answering the Training Call Button

Realizing the need to invest in training in order to help team members adapt to change, improve services, and make Memorial an attractive place to work, Campbell and Pierce first tapped traditional leadership-development and customer-service training, followed by a university-style program with professors doing the teaching. Later, business consultants came in with management training. While each program had its merits, none was specific enough for the healthcare issues facing Memorial Medical Center.

Collaborating with a colleague one day, Campbell discovered their common interest in The 7 Habits of Highly Effective People and concluded, “Wouldn’t it be great if we introduced these concepts to Memorial?” After an initial call to FranklinCovey headquarters, he was put in touch with Debra Larson, FranklinCovey Managing Client Partner, based in Phoenix, Arizona.

“When I called Debra with questions about how to certify to facilitate The 7 Habits training at Memorial, I was impressed that the first thing out of her mouth was not ‘this is how you do it,’” Campbell said. “Rather it was ‘Why do you want to do The 7 Habits?’ That comment intrigued me, because you don’t often get that from a company. Debra really exhibits the solution provider model.”

Memorial Medical Center signed a license agreement with FranklinCovey, then Campbell certif ied in both The 7 Habits of Highly Effective People leadership training and What Matters Most time management training. He has since certif ied in five additional FranklinCovey curricula. Two other Memorial team members are also certif ied FranklinCovey facilitators.

Getting the Executive Team On Board

With help from Debra Larson and Memorial’s guidance team, it was determined that the hospital’s executive team should experience The 7 Habits® training first, “so that they understood the principles and could see how we planned to facilitate the training around present-day challenges within the medical center,” Campbell said. “When it was over, our chief financial officer, Phil Rivera, said ‘everybody in the organization needs this.’ To hear something like that from a CFO is very reassuring,” Campbell said.

Executive Summary

With the help of FranklinCovey training in What Matters Most® (now FOCUS: Achieving Your Highest Priorities) and The 7 Habits of Highly Effective People®, Memorial Medical Center, Inc., in Las Cruces, New Mexico has created a culture of cooperation, communication, and achievement, resulting in high job satisfaction, low turnover, and removed barriers to improved patient care. The hospital has realized a 40-percent increase in employee productivity as a result of time saved or gained each week, as well as a return of $1.74 for every dollar invested in training.

What’s more, through continuously applying diagnostics of its Organizational Effectiveness Cycle™, FranklinCovey is helping Memorial prescribe the right training solution for each functional area of the hospital. Work processes continue to improve, helping the hospital get business done and enabling caregivers to do what they trained for.

4

success stories

5

FranklinCovey training helps hospital boost employee productivity by 40%

Leaders Lead the Way

The next management tier to be trained was the hospital’s 150 directors, managers, team leaders, and supervisors, who experienced a What Matters Most time management workshop designed to boost individual and team productivity. They were introduced to the Franklin Planner® as the tool to prioritize and carry out tasks critical to reaching team and organizational objectives. Participants also learned about Habits 2 and 3 of The 7 Habits: Begin with the End in Mind® and Put First Things First®. They then spent the next three weeks using the planner and honing newfound time management skills.

At 30 days, Campbell trained these leaders in The 7 Habits of Highly Effective People, introducing the methodology of principle-centered leadership, “with the understanding that we’d bring them back the following year for The 4 Roles of Leadership® workshop after they’d had a chance to practice and renew skills in The 7 Habits.”

Memorial teamed with FranklinCovey to develop Introduction to The 7 Habits for Healthcare, a new workshop now offered as the second day of new employee orientation. “It’s all about setting the stage for new hires in how we work together and want them to work,” Campbell said.

Standing Up to Scrutiny

Increasingly, corporations of all sizes are reticent to support training programs that can’t prove themselves. Memorial Medical Center tapped the Jack Phillips Center for Research, the measurement and evaluation arm of FranklinCovey that studies the return on investment (ROI) of training and performance-improvement programs.

Specifically concerning The 7 Habits training at Memorial Medical Center, the Jack Phillips research determined that the hospital realized an ROI of $1.74 for every dollar invested in training. What’s more, the training was responsible for 40 percent of the time saved or gained each week in increased productivity.

According to BusinessWeek Online, the most important key to increased earnings today is productivity.1 Getting workers and their managers focused on the truly important things may be the biggest untapped source of increased productivity and performance.

A Jack Phillips study of 46 organizations across 12 industries2 reveals that training in What Matters Most and The 7 Habits helps people become tightly focused on the key initiatives and goals of the organization: • They spend less time distracted by competing priorities and focus on what really matters.

They develop strategies for managing their time so that the truly important doesn’t fall victim to the merely urgent.

They become more committed and purposeful as they feel more engaged in work that matters to the organization.

According to Campbell, use of the Franklin Planner is widespread throughout Memorial, “and it’s expected in some quarters. If you show up without your Franklin Planner, others ask you where it is.”

“Internal Experts” Make the Difference

Laura Pierce is convinced that FranklinCovey training at Memorial wouldn’t have been as effective without having an internal expert like Carter Campbell to facilitate it.

“Carter knows us inside and out and what our challenges are. He’s been with us a number of years and has built a level of credibility with the executive and leadership teams and knows how to tie everything in with healthcare. Plus, he has the perspective of a critical-care nurse. He knows what it’s like working those shifts. He’s instilled confidence with team members that they really can make the training work within their areas of responsibility, improve processes, and improve patient care.”

Focus on the Future

Campbell credits FranklinCovey curricula and the Organizational Effectiveness Cycle with helping the hospital not just identify issues, but to create full-circle processes to ensure leaders and team members implement what they set out to do and measure the impact on every department throughout the hospital.

“We applied the What Matters Most model to re-craft our mission statement and core values as an organization,” Campbell said. “We asked our stakeholders, ‘If a healthcare organization were operating at its best, what would its core values be?’ We solicited responses from patients, team members, and members of the hospital’s foundation, and distilled the core values down to: community, compassion, respect, and unity. And that drove our mission statement, which is: To Care for Our Community with Compassion and Respect.”

Laura Pierce acknowledges that processes are interwoven throughout the hospital. Once they’re ironed out and running well, what are the benefits? “A work environment where team members feel supported, satisfaction is high, and turnover is low,” she said. “We remove the barriers so team members can do what they went to school for, taking care of the patient with compassion and respect.”

1 US Productivity: Galloping to the rescue once again. BusinessWeek Online. Feb. 18, 2002.

2 Jack Phillips Center ROI study of 46 organizations across 12 industries; Feb. 2002.

Getting their workers and managers focused on the truly important things may be the biggest untapped source of increased productivity and performance

1.866.742.2487

www.franklincovey.ca

‘‘We remove the barriers so team members can do what they went to school for — taking care of the patient with compassion and respect.”-Laura PierceAssistant Vice Presidentof Human ResourcesMemorial Medical Center, Inc.,Las Cruces, New Mexico

6

success stories

7

Executive Summary

How healthcare organizations respond to industry reform is critical to their success. With third-party payers restricting the money healthcare providers can spend on patient care, doctors and administrators at Oakwood Healthcare System in Dearborn, Michigan, were placed in adversarial roles. This case study examines how Oakwood:

• Responded to the lack of trust, cooperation, and communication between physicians and administrators to meet future healthcare needs

• Implemented a four-phase leadership training approach—including FranklinCovey training—that helped physicians assess challenges, recommend solutions, and lead the process for implementing those recommendations

• Increased teamwork, reduced medical supply inventories, controlled costs, and improved patient care through principle-centered behaviour

Healthcare Reform Demands Trust and

Teamwork

In 1996, Oakwood Healthcare System launched a two-year reengineering process to reconfigure its expansive healthcare delivery organization to meet the needs of the new millennium. Oakwood consists of six hospitals and 30 clinics and employs a staff of 8,000 along with 1,100 affiliated physicians.

But according to Dr. Ron Larson, a physician and Executive Vice President of Medical Affairs, the reengineering process offered no real solution for developing personal leadership skills. Then members of the reengineering steering committee experienced The 7 Habits of Highly Effective People® public workshop. They recognized how bringing the training in house could foster trust and teamwork at all levels of the organization, particularly between physicians and administrators.

Turning the Expertise Inward

Oakwood’s reengineering effort encompassed four specific areas: leadership, managed care, integrated systems, and healthcare finance. Senior management mandated that the organization identify and prepare 70 physicians to assume key leadership roles within the Oakwood system. They knew that without the involvement and representation of physicians, Oakwood would not be able to maintain its competitive position and create future growth.

“Thriving within the turbulence of healthcare reform is all predicated on developing trust,” said Larson. “In the past, relationships between physicians and Oakwood administrators were nonexistent.” Internist and steering committee member Dr. Elaine Atallah added, “Restricted third-party payments placed physicians and administrators in adversarial roles. We were experiencing vulnerability, uncertainty, loss of control, and a lack of shared vision and strategy.”

Dr. Tim Love of Oakwood’s Critical Care Medicine Service echoed these concerns: “We worried about low trust levels. You have administration and you have the medical staff. While administration owns the resources, the medical staff is responsible for 80 percent of expenses. The need to form a partnership between administrators and physicians was paramount in order to control costs and improve quality at the same time.”

With the help of FranklinCovey, Oakwood structured a Physician Education and Leadership Program (PELP) to help prepare physicians for leadership roles. FranklinCovey coordinated the teaching of the managed care, integrated systems, and healthcare finance modules with university-level consultant specialists in these respective areas. The leadership component, based on The 7 Habits of Highly Effective People® workshop and elements of First Things First® (now FOCUS: Achieving Your Highest Priorities) and Principle-Centered Leadership® (now The 4 Roles of Leadership®) workshops, served as the foundation for training in the other three areas.

Oakwood Healthcare

“The outcome is

collaboration instead

of confrontation,

deeper understanding,

shared values,

stronger relationships,

synergy, and

higher trust. And,

ultimately, vastly

improved patient care

through applying the

7 Habits.”

How The 7 Habits® Training Helped Control Costs, Improve Care, and Build Trust between Physicians and Administrators

6

success stories

7

A Four-Phase Approach to Partnership

The plan to build a partnership between administrators and physicians was implemented through a four-phase approach: 1. Kickoff Meeting; 2. The 7 Habits of Highly Effective People workshop; 3. The 7 Habits Renewal™ and First Things First workshops; and 4. Principle-Centered Leadership workshop.

Phase 1: Kickoff Meeting

Seventy selected physicians, along with nursing leaders and Oakwood administrators and top executives, attended the kickoff—a celebration of Oakwood’s commitment to physicians and the physicians’ commitment to Oakwood. FranklinCovey facilitators explained the structure of PELP, how it would relate to the physicians personally and professionally, and committed them to make a serious effort to apply what they would learn so that change could occur.

Importantly, facilitators explained the 7 Habits 360° Profile™, a preworkshop peer profile the physicians would use to seek the insight and feedback of close associates in order to design a personal improvement plan. The profile served as a benchmarking tool to measure the effectiveness of the 7 Habits training. Physicians also received a copy of The 7 Habits of Highly Effective People book by Stephen R. Covey and The 7 Habits™ audio learning system. This opportunity for participants to become familiar with

the 7 Habits materials instilled a basic understanding of the Habits concepts and prepared participants for a meaningful, hands-on workshop experience.

Phase 2: The 7 Habits of Highly Effective People Workshop

Three FranklinCovey facilitators presented simultaneous workshops of the 7 Habits, consisting of 20 to 25 participants each. The focus was on physicians’ personal and professional leadership. Participants engaged in the mission statement process, received a physician-customized Franklin Planner™, and were given Oakwood-specific case studies on organizational issues, such as manpower planning and clinical pathways (treatment modalities or best practices).

In the past, administrators had sought physician input on issues affecting Oakwood, but many doctors were either too busy to respond or felt their ideas wouldn’t be valued. However, through the 7 Habits workshop experience, physicians were asked to work on solutions to challenges, communicate those recommendations, and lead the process for implementing their recommendations. The heightened trust and improved communication and synergy between physicians, nursing, and administration as a result of this process were remarkable. The work on treatment modalities alone helped Oakwood dramatically reduce medical supply inventories because of more uniform methods of treatment among physicians.

Each participant left the 7 Habits workshop with a copy of the First Things First book and the associated audiotape series as postwork for Phase 2 and prework for Phase 3.

Phase 3: 7 Habits Renewal and First Things First

One of the hallmarks of FranklinCovey workshops is the Empowered Learning Model™ (ELM) process, which is designed to improve performance. In a nutshell, ELM is not a quick-fix, one-time training event, but rather a process of preparation, participation, and performance measurement. Phase 1, with its peer profile and preworkshop preparation, and the Phase 2 hands-on 7 Habits workshop, were devoted to the first two ELM steps. The third step, performance, is about putting learned principles into action, which impacts the return on training investment.

Phase 3 served as a renewal of the 7 Habits, with emphasis on mission statement and the time-management principle, Habit 3: Put First Things First® (now FOCUS: Achieving Your Highest Priorities). The bulk of this phase was performed outside the classroom setting. Participants focused on performance, working through First Things First principles and completing assignments—looking for all the ways they can apply these principles within the Oakwood system. The self-paced video and homework helped them prepare for Phase 4.

Phase 4: Principle-Centered Leadership

In this phase, participants focused on the Organizational Effectiveness Cycle™ process. This process helped empower them to effect change in their personal lives, their teams, and, finally, within the larger Oakwood system. The objective was to have participants exit this phase with the knowledge and skills to solve their challenges more effectively by becoming organizational practitioners.

Dr. Larson explained that by incorporating the 7 Habits, First Things First, and Principle-Centered Leadership into the larger PELP program, Oakwood was able to bring physicians, management, and staff closer together in a quick, concentrated fashion.

He said, “Identifying case scenarios and commissioning physicians and other training participants to help us resolve these issues has resulted in improvements beyond what we imagined. The whole 7 Habits process began at a very personal level that reached beyond the work place to family life. Living the 7 Habits on and off the job brought about such a positive change that we were collaborating and providing solutions together instead of being confrontational.”

Dr. Larson added, “As an outgrowth of principle-centered behaviour and stronger relationships, we’re better positioned to control costs, improve patient care, and succeed in the turbulent managed-care environment.”

Real Results and the Road Ahead

As a result of the 7 Habits training, issues that Oakwood had been struggling with for years are being resolved. The organization has since trained 15 in-house facilitators to share these principles of effectiveness with hundreds more physicians, nurses, and administrators. According to Dr. Larson, Oakwood has seen the following benefits:

• Increased physician involvement with management concerning quality care issues in the managed care environment

• Heightened trust between physicians, administrators, hospital and clinic staff, and third-party payer organizations

• Improved personal leadership, empathic listening skills, and other core competencies among physicians

• A new Oakwood culture based on shared values that enhances the ability of physicians and staff to meet the challenges of the new business of medicine

Dr. Larson concluded, “With healthcare reform, we must have an attitude of teamwork in every situation. At Oakwood, we’ve taken ownership of our problems by making changes. The outcome is collaboration instead of confrontation, deeper understanding, shared values, stronger relationships, synergy, and higher trust. And, ultimately, vastly improved patient care through applying the 7 Habits.”

8

success stories

9

How FranklinCovey Solutions™ Helped Turn on the Lights at JEA

Executive Summary

Mike Brost, one of JEA’s (formerly Jacksonville Electric Authority) five Corporate Strategy Team members, knew that change was needed at the company. How to implement that change was the challenging issue. “We are a 100-year-old regulated monopoly, and with that comes a 100-year old culture,” explains Brost. “We had to get people to turn 180 degrees and look at things in a completely new—and initially uncomfortable way.”

JEA found context for this new competitive perspective in The 7 Habits of Highly Effective People® and The 4 Roles of Leadership® workshops. With complete support from executive management, JEA instigated a new training program for all employees. More than 700 staff members completed The 7 Habits® workshop and the results were—and continue to be—readily apparent. “There’s certainly been a positive impact on our culture,” reports Brost. “People approach their jobs with more enthusiasm and creativity.” That enthusiasm and creativity were also ref lected in additional training and consulting from FranklinCovey.

Full Power Application

The initial objective for bringing in FranklinCovey leadership was to improve company performance through the 7 Habits. But as the habits became part of the JEA culture, it became clear that a truly thorough change would involve a remoulding of internal operations. So JEA management immersed themselves in two more FranklinCovey programs: The 4 Roles of Leadership® and the Organizational Effectiveness Cycle™.

As part of this framework, JEA formed a senior-level Corporate Strategy Team (CST) responsible for leading the company through a complete reorganization of its mission, values, and strategies. Then, to help implement the new vision, the Corporate Strategy Team was charged with identifying areas for improvement—and more importantly, identifying the solutions that would bring about a positive change. Examples of change include alignment of major systems, improvement of high-level processes, and significant changes in organizational structure. “Making ‘change’ a responsibility of our own people was essential to the success of our mission,” remarks Brost. “Many companies bring in consultants hoping for a solution from the outside. We were fortunate to recognize that a sustainable, long-term change would only happen from the inside out.” To accomplish their goals, the CST focused on a top-down model and various elements of leadership assessment and development.

The Lights Are On

Positive changes aren’t hard to find today at JEA. Through clear initiatives set forth by the Corporate Strategy Team, activities undertaken by the entire company have brought impressive results. And an impressive new contract with the U.S. Navy is just one example.

With three bases in the Jacksonville area, the navy was one of JEA’s largest customers. And with potential competition stemming from deregulation, JEA needed a plan to continue servicing that account. Applying the “Seek First to Understand” and “Win-Win” principles from the 7 Habits, JEA jumped outside its earlier monopolistic mindset to suggest a long-term contract with the navy. The outcome was a never-before negotiated, 10-year, multi-million dollar agreement in which both sides got just what they needed: a low, locked-in rate for the navy, and a continuing, satisf ied customer for JEA.

Positive changes are breaking new ground within the company as well. With support and assistance from FranklinCovey’s organizational consulting and assessment group, JEA developed a methodology for major transformation and change titled “Work Smart.” More than a dozen Work Smart teams are working to address issues and provide creative solutions to improve a variety of areas. One team analysing the company’s vehicle f leet identified process inefficiencies in the fuelling and loading of the vehicles. Their suggestions saved the department $250,000 in 1997 alone—and will cut costs a whopping $2.7 million over the next three years.

Tracking successes like these has become a positive change itself in the company. JEA keeps a “corporate scoreboard,” which continually ref lects the high level corporate impact of the various activities, initiatives, and actions. Not only does this keep employee activities on track, it helps determine compensation for management—an additional incentive for ensuring the company’s success.

Outshining Themselves

Today JEA is not only maintaining and increasing its customer base, it is increasing customer loyalty by offering even more services. Merging with water and sewer utilities has allowed JEA to give more customers more of what they want. And the company continues to look forward with plans for bundling more valuable services. With a new mission clearly in place and every employee dedicated to ongoing initiatives, JEA is poised for many positive changes—changes that are creating a very bright future, indeed.

“We are a 100-year-oldregulated monopoly, and with that comes a 100-year old culture, We had to get people to turn 180 degrees and look at things in a completely new—and initially uncomfortable way.”

-Mike Brost, JEA

8

success stories

9

Lake Mead National Recreation Area Success Story How Lake Mead National Recreation Area Used the Power of The 7 Habits® to Improve Communication and Unify Efforts

A short drive from Las Vegas, one of the world’s most popular destinations, Lake Mead National Recreation Area, receives more visitors per year than even Yellowstone. Unfortunately, it receives more trash, traffic, and troubles as well. “There’s a huge trend in people wanting to reconnect with their families and with nature,” says Alan O’Neill, an employee of the Park Service. “It’s tremendous for the park. But with national restructuring and downsizing, our budgets had f lat-lined, and our staff members were burning out in the face of GPRA’s [Government Performance and Results Act] greater expectations.”

The challenge for Lake Mead was obvious: how to create a clean, safe, enjoyable recreation spot for millions upon millions of people. The underlying challenge was less clear: how to do it amidst rapid changes in doing business, competitive management, and parameters demanded by the GPRA.

Getting Their Hands Dirty

Prompted by previous training with FranklinCovey, O’Neill knew he needed to help his people f low through the challenges that were ahead. He began by introducing FranklinCovey’s The 7 Habits of Highly Effective People® workshop. “We knew, however, this was just the beginning,” says Bobbie Antonich, Park Service employee. “Teaching people isn’t a matter of simple training. It is a process—and a challenging one, at that.” More than 200 employees joined the initial workshops—with a tremendous response. Lake Mead went on to organize training for several other FranklinCovey offerings, including The 4 Roles of Leadership®, First Things First® (now FOCUS: Achieving Your Highest Priorities), Building Trust™, and Getting to Synergy™. The resulting changes in attitude were remarkable. “Communication in the park had been at an all-time low,” remembers Antonich. “But by learning and implementing new principles, we refocused our efforts on interdependent problem solving.” And they have put those problem-solving skills to the test.

Talking Trash

Lake Mead was struggling to unify the efforts of six divisions within the park. Rather than taking a proactive approach of individual responsibility, Park Service employees relegated tasks down the ranks, and finger pointing was common. “We had always been activity-oriented, not outcome-oriented,” explains Antonich. “Changing 60 years of traditional, independent management isn’t easy.”

A change came, however, during one of the management training sessions. Upon entering The 4 Roles of Leadership® workshop, each park manager walked by an empty cigarette pack lying on the f loor. Only after every person had taken a seat did the FranklinCovey facilitator pick up the litter and hold it in the air. The cigarette pack instantly became a metaphor for the team relationships Lake Mead so desperately needed. If management was not willing to fulfil basic tasks—such as picking up a piece of trash, there was little reason or incentive for the rest of the staff to do the same. The idea stuck. Before the conference’s end, managers were signing a written commitment to be part of a cooperative, whole-team approach to running the park. But the real commitment presented itself on the roads outside the conference center. Immediately after the workshop, every manager was on the side of the highway picking up trash—and showing how the leadership skills they had learned literally worked from the ground up.

Results that Really Come Clean

Today, Lake Mead has introduced dozens of cultural and operational improvements into their organization. A refined mission statement for the park is not only incorporated into each employee’s performance review, it is printed on pocket cards, memo pads, and decals for commonly used tools. A newly structured hiring process has enabled management to recruit and employ individuals whose philosophies match Lake Mead’s values—and who have proved to be invaluable in helping the park achieve new successes. Lake Mead has also set a course to build relationships both inside and outside the recreation area.

Enacting the concept of “Win-Win” learned through FranklinCovey, Lake Mead jumped in to assist Clark County, the neighbouring metro area experiencing a growth explosion. Together, they reached an agreement over adjacent land use in which the county received 400,000 acres to be used as habitat for the desert tortoise, and Lake Mead received base funding for many of its projects.

“Unlike the private sector,” says O’Neil, “we have a moral responsibility to respond in a proactive way to what the public asks. We are public servants. We have been given actions for improvement [through GPRA], and we believe in measuring their outcomes and being responsible for them.”

The federal accounting office currently uses Lake Mead as a model government agency achieving results in line with GPRA. In fact, the processes implemented by FranklinCovey and Lake Mead Recreational Area are being duplicated by other National Parks such as Yellowstone and Harpers Ferry. Proving that transformation in the face of competition and downsizing truly can be a day in the park.

success stories

10

success stories

11

Kimball International Success Story

Improving Teamwork and Turn-Around Time at Kimball International with The 7 Habits®

Fame in the Kimball Name

Chances are you’ve had first-hand contact with Kimball International products. The $1 billion company, headquartered in the small, southern Indiana town of Jasper, manufactures furniture for offices, homes, and hotels, as well as cabinets, pianos, electronic contract assemblies, and processed wood parts. Facilities are located throughout the U.S. and in Mexico, England, France, and Austria.The company’s Kimball Lodging Group division—with revenues of $100 million—has the mission to provide furniture products of exceptional value to nursing homes and assisted living facilities, hotels and motels, and government projects, such as military base housing. The Lodging Group’s Custom Projects business unit has furnished a wide variety of notable theme hotels, including Fort Wilderness in Disneyworld and the pyramid-shaped Luxor Hotel and Casino in Las Vegas.

Such market and customer diversity requires responsiveness, vision, teamwork, and improved communication. Kimball Lodging Group vice president Jim Birk attended The 7 Habits of Highly Effective People® workshop and recognized the organizational potential of the 7 Habits. He brought the training in house to implement a visionary idea in teamwork to increase productivity and profitability.

Executive Summary

This case study examines the efforts and success of Kimball International’s Lodging Group division in:

Developing cross-functional teams of people with different skills to respond more effectively to dynamic customer needs

Laying the foundation for effective cross-functional teams through the in-house workshop—The 7 Habits of Highly Effective People®

Improving internal communication and custom product through time, culminating in a better working environment and increased customer satisfaction

Building a Stronger Organization

Roughly two years ago, Kimball Lodging Group embarked on a plan to dismantle traditional departments and create Circles of Excellence—cross-functional teams of people with different skills to respond more effectively to dynamic customer needs. Individuals would lead out when a problem required their expertise and contribute ideas when someone else was leading. It’s a system that demands high trust, understanding of the company mission, and a willingness to listen and collaborate to serve customers better.

“Our customer is our business,” says Birk. “We must provide products and services that create customer intimacy and exceed their expectations of quality and features. We also must recognize and respond quickly and creatively to ideas of others, both internally and externally. We could not have reorganized with the required level of teamwork without the 7 Habits coming first.”

Birk explains that 7 Habits training employs an Inside-Out Approach, which builds stronger organizations by first strengthening the individuals who comprise them. The 7 Habits lay a solid foundation of principle-centered behaviour that supports organizational initiatives, such as the Lodging Group’s Circles of Excellence.

Birk says, “We saw both change and opportunity coming our way, and so the first step was to develop the personal trustworthiness and interpersonal communication of our employees.” Birk himself became a 7 Habits facilitator to lead this effort. John Light, the Lodging Group’s employee development manager, who also facilitates creative problem-solving training, was charged with the key responsibility to drive 7 Habits training throughout the organization.

10

success stories

11

1.866.742.2487

www.franklincovey.ca

The two executives spent the first year teaching the 7 Habits to all Kimball Lodging Group employees. Once employees had an opportunity to learn and live the principles on and off the job, Birk and Light focused on managerial effectiveness and empowering team members with Win-Win Agreements, greater decision-making authority, and accountability.

“Ultimately,” says Birk, “we worked on aligning team efforts with the Lodging Group’s mission to improve lead times, create customer intimacy, and exceed their expectations of value and quality. The Inside-Out Approach was culminating in a cycle of greater effectiveness within the organization as a whole.”

Communication Is Key

“Many results of 7 Habits training have been measurable,” says John Light. “Turn-around time or through time on custom products is a good example. We can now deliver customized product in 8 to 12 weeks. There’s no way we could achieve that without the improved communication and cooperation among our teams. Our vendors tell us our competitors can’t match our through times.”

Joyce Kibby, manager of Order Fulfilment, has first-hand experience with the value of 7 Habits training and its impact on the Circles of Excellence in improving through times.

“Prior to forming the Circles of Excellence, we’d have customers, sales reps, or both calling our different departments requesting that we develop or re engineer a product. Often what was requested of one department had already been addressed by another. The Circles of Excellence are the forum for weekly interchange of communications. One team member will mention a development request, and another member will say, ‘We’ve already done that; let me help you with that.’ “

Kibby says they are saving valuable engineering resources and not repetitively contacting the Quote Department for a cost factor. Much of the work is already done. “Sometimes we can save three to four days of work in a single meeting because of the suggestions and ideas offered. This works very well for us. We’ve discovered the bottom-line value of synergizing, of helping each other out and growing as a team. It’s a very positive thing for Kimball Lodging Group and our profitability.”

John Light says the focus on improved communication was largely a result of implementing the FranklinCovey Organizational Health Assessment™ (OHA) (now xQ™ Survey and xQ Debrief ), which provides a 360-degree view of the marketplace and the organization’s place in it. The resulting OHA Baseline Report analyses data collected from all of the organization’s stakeholders on key success factors, such as mission, strategy, structure, systems, and culture.

“It became clear to us that communication and valuing the diversity of experience among our employees were key issues. Through our organizational effectiveness efforts, team members are at the point of not just valuing differences, but celebrating them in order to find new solutions to meet customer needs.”

He adds, “With The 7 Habits® and our Circles of Excellence, we’re no longer operating in silos. We’re beginning with the end in mind to meet customer expectations, the walls are broken down, and we’re saving time, resources, and money.”

Expanding the 7 Habits Inf luence

Once word started getting around about the 7 Habits training within Kimball Lodging Group, more and more people from other Kimball divisions and business units wanted to get involved. “So we opened up our classes to more people, and the circle of inf luence keeps getting bigger,” says Light.

Adds Jim Birk, “It’s really quite thrilling to see what has happened in a two-year period. Sometimes I think two years is a long time. It takes patience to implement genuine organizational development and change. But the more I think about it, two years have gone by fast, and we’ve achieved a lot of change for such a big company.”

Birk summarizes the benefits of the 7 Habits training at Kimball Lodging Group this way:

An ability to view differences as strengths, enhancing problem-solving and conf lict resolution

Increase planning and preparation time, resulting in shorter, more focused meetings and more productive individual work time

Industry-leading, on-time product deliveries, achieved through improved clarity between teams and reduced redundancy

He concludes, “Executives should view the 7 Habits as a cost-effective means to achieve their business objectives because the training is aligned with natural principles leading to success. As vice president of Kimball Lodging Group, it’s thrilling to witness what we’re achieving—real business results and more focused and balanced employees because of this program. The 7 Habits help us realize our mission.”

“With the 7 Habits and our Circles of Excellence, we’re no longer operating in silos. We’re beginning with the end in mind to meet customer expectations, the walls are broken down, and we’re saving time, resources, and money.”-John Light, Kimball International

12

success stories

13

Blockbuster Inc. Adopts FranklinCovey Solutions™ to Increase Productivity Amid Explosive Growth

Beginning with a single store in 1985, Blockbuster has experienced the kind of growth that is fitting of its name. Today, Blockbuster believes that almost 60 percent of the U.S. population lives within three miles of one of its almost 4,800 stores. Additionally, Blockbuster now operates more than 2,300 stores in 26 other countries.

Working with FranklinCovey to develop and implement effective training solutions, Blockbuster has experienced significant results. Both skills-based and principle-based training programs have been key aids in managing the explosive growth and changes within the company.

Executive Summary

This case study examines how Blockbuster successfully implemented in-house training solutions from FranklinCovey to:

• Improve productivity of employees by providing the skills and tools to help them accomplish key goals while maintaining a balanced lifestyle

• Provide a common language for improved cooperative efforts within and between departments

• Attract and retain high-caliber employees

Premier Showing

Blockbuster’s rapid growth presented many challenges, one of which was the need to provide exceptional and effective training for its employees who were devoting so much time for the continued success of the company. Blockbuster began a relationship with FranklinCovey. Blockbuster’s Corporate Learning and Development Department selected a representative to be certif ied as a FranklinCovey Time Quest® (now FOCUS: Achieving Your Highest Priorities) instructor. The time management training was presented in house to corporate personnel, distribution center management, regional staff, and zone management. The program was well received and, subsequently, a success.

“The training was a welcome relief,” recalled Julie Normington, manager, Corporate Learning and Development for Blockbuster. “I believe people can learn different and better ways to be more effective at work and in their personal lives.” The training, which introduces the Franklin Planner™, provided the skills and perspective to increase productivity.

Moving Picture

In the spring of 1997, the Blockbuster corporate headquarters were moved from Ft. Lauderdale, Florida, to Dallas, Texas. One particularly challenging part of the move was that approximately 70 percent of the senior leadership didn’t follow the company to Dallas. Annie Nichols, who recently had been promoted to manager of Management and Skills Training, began developing a training department and curriculum to meet the changing needs of the company. As Nichols examined Blockbuster’s needs and FranklinCovey curriculum, several additional training programs were selected.

Nichols, Normington, and members of the Blockbuster training team travelled to FranklinCovey headquarters on multiple occasions to achieve certif ication as instructors in First Things First (now FOCUS: Achieving Your Highest Priorities), Rethinking Stress™, FranklinCovey Project Management™, Presentation Advantage™, and Writing Advantage® workshops. The corporate training team created the Blockbuster Training Course Catalogue built primarily around FranklinCovey Solutions.

These skills-based programs were presented primarily to corporate, distribution, and zone personnel. Each course focused on increasing the productivity of Blockbuster employees through improved communication, time management, or stress management. “When you have the right skills, you’re more relaxed, more productive, a better communicator, a better sales associate, a better ‘you fill in the blank,’” explained Nichols.” And in the long run it makes you more profitable.”

The Culture of Pop Culture

During 1998, as Blockbuster continued to grow both domestically and internationally, Nichols and Normington were exposed to The 7 Habits of Highly Effective People® curriculum. The timeless principles taught in the 7 Habits® training seemed to fit perfectly with the challenges of a fast-paced, growing company like Blockbuster.

Adding principle-based training provided immediate impact. The corporate Human Resources Department was the first audience for the 7 Habits training. “It became the building block to begin the tough process of examining how we were organized and how we treat and interact with each other,” said Nichols. “The bottom line is the 7 Habits are built on timeless principles that help build better relationships and a more balanced lifestyle. When you come out of the training, you decide to change something about yourself—if not several things.”

“This started as a tiny idea, a hope that the corporate world can be a more human place. It can be a place where work gets done, money is made, and win-win systems and processes are in place. And, while accomplishing our company’s mission, we can all work together in such a way that we earn mutual respect and the passion to meet our objectives,” explained Normington. “My belief is that every day, whether it is in a corporate workshop, in a team meeting, or in a one-to-one interaction between coworkers, the proven principles [taught by FranklinCovey], when applied, are helping all of us at Blockbuster to achieve our personal and professional goals.”

12

success stories

13

1.866.742.2487

www.franklincovey.ca

Following the implementation of 7 Habits training, Blockbuster subsequently added Building Trust™, Power of Understanding™, and Getting to Synergy™ programs to its training curriculum. These programs take a more in-depth look at key principles presented in the 7 Habits training.

A Script for Success

In-house training has proved to be an effective option for Blockbuster. Every month, all corporate employees receive a calendar of training opportunities. What Matters Most® (now FOCUS: Achieving Your Highest Priorities) and the 7 Habits® workshops are the most requested programs and are offered monthly. In What Matters Most, all participants are provided with a Franklin Planner. In the 7 Habits, participants receive a copy of Stephen R. Covey’s The 7 Habits of Highly Effective People book and audio cassettes, and The 7 Habits® workbook. According to Dan Satterthwaite, vice president of Corporate Human Resources for Blockbuster, the most effective workshops come as a result of an entire work group taking the training together.

The Human Resources Department encourages Blockbuster department heads to use the FranklinCovey workshops to establish a shared language. “The most significant benefit of the training is a common vocabulary that allows people to deal with issues and express feelings and concerns in a way that everyone can understand,” explained Satterthwaite.

Additionally, in a tight labour market, competition for quality employees can be intense. “Being able to offer FranklinCovey training helps us in retaining talent,” Satterthwaite said. The message of FranklinCovey training, that a balanced lifestyle is important, helps keep quality employees. “Very frequently we receive letters [from training participants] that say that the training was a life-changing experience. It’s very gratifying to be able to offer that kind of benefit,” explained Satterthwaite.

Fast Forward to Successful Sequels

The relationship between FranklinCovey and Blockbuster appears to be headed for more “smash hits” in the future. Building upon the tremendous success of the 7 Habits training, Blockbuster has recently decided to add The 4 Roles of Leadership® training to enhance leadership skills throughout the company. “I believe we have a true synergistic relationship,” Normington said. “But it goes beyond training materials and curriculum. They [FranklinCovey] believe in the power of change; they believe that people, work teams, and individuals can change and want to change to make their work experiences and personal experiences richer and more productive.”

By creating a partnership to collectively examine difficult questions and define strategy, FranklinCovey and Blockbuster have created unique, effective solutions. “Obviously ‘training’ isn’t the answer. It is only part of a multi-faceted solution. [My account manager at] FranklinCovey convinced me that you can start anywhere and go everywhere. Different departments at Blockbuster have chosen different paths, ... but ultimately the answer lies in each one of us pulling together as a collective whole and facing these challenges together,” concluded Normington.

“This started as a tiny idea, a hope that the corporate world can be a more human place. It can be a place where work gets done, money is made, and win-win systems and processes are in place. And, while accomplishing our company’s mission, we can all work together in such a way that we earn mutual respect and the passion to meet our objectives”

- Julie NormingtonManager, Corporate Learning and Development for Blockbuster

14

success stories

15

Embracing Change and Improving Customer Service with FranklinCovey Learning Solutions

Executive Summary

This case study examines how Federal Express successfully implemented The 7 Habits of Highly Effective People®, What Matters Most® (now FOCUS: Achieving Your Highest Priorities), Rethinking Stress™, Building Trust™, and Power of Understanding™ learning solutions, resulting in:

It’s a business miracle that happens overnight—every night.

And it all started on April 17, 1973, when Federal Express

launched 14 small aircraft from Memphis International Airport.

On that night, the company served a network of 25 cities—

from Rochester, New York, to Miami, Florida—with a total of

186 packages shipped.

Today, the company of 148,000 employees serves 210 countries and 366 airports, and handles millions of packages and documents every business night. FedEx aircraft, which comprise the world’s largest all-cargo f leet, have a combined lift capacity of more than 20.6 million pounds daily. In a 24-hour period, FedEx planes travel nearly one-half million miles. FedEx couriers log 2.5 million miles a day, the equivalent of 100 trips around the earth.

A Proactive Approach to Change

The only constant in the high-velocity world of express shipping is change. FedEx and its competitors wage a persistent battle to offer customers more delivery options, at lower cost, with greater convenience and reliability. And the boom in e-business, home shopping networks, mail-order catalogues, and just-in-time distribution of parts, components, and other supplies for manufacturing has created exciting new opportunities for FedEx. No longer just an overnight package shipper, FedEx is a full-service logistics provider, orchestrating the f low of goods and information between customers, retailers, and suppliers.

Fuelling the company’s growth and success has been the development of strategic information systems that enable FedEx to provide superior service to its customers. The FedEx Information Technology Division (ITD), employing approximately 5,500 people, supports all computer-based functions of the company, including all customer computer use, such as ordering FedEx services and tracking delivery status. Sharon Sirrell, a senior development support analyst, is also a certif ied facilitator of The 7 Habits of Highly Effective People training, used extensively within ITD. She says the 7 Habits® training, both for managers and computer programmers, systems analysts, and other professionals, has helped the division

FedEx

proactively embrace the ever-changing technology environment rather than merely react to it.

“Technology is constantly evolving, and we must be able to deliver the latest technology that will improve the efficiency of our delivery services. The 7 Habits training gives our people greater capacity to deal with rapid change and to be proactive in harnessing technological advances.” Sirrell, who started out as a volunteer facilitator within ITD in 1993 teaching the 7 Habits once a quarter, says benefits of the training extend to improved communication among individuals and interdependent teams, as well as strengthened human relationships.

“The nature of our business means we have a lot of interdependencies,” she says. “We support information system functions throughout the organization as well as for a growing number of manufacturers and retailers.” She explains that Federal Express is no longer just a delivery service but a linchpin of customer operations. Businesses are able to complete entire shipping transactions from their desktop computers, call for courier pick-ups via modem, and trace the status of their shipment at all possible locations along the delivery route through the use of on-premises FedEx PowerShip terminals or the FedEx home page on the World Wide Web.

“Our work is all very interrelated with other FedEx divisions and customers,” Sirrell says. “The 7 Habits principles help us listen, synergize, and arrive at creative solutions to answer the needs of customers and internal clients. The training really meshes well with what we’re about as a company and what we’re trying to achieve.”

Sirrell adds that both managers and information systems professionals continue to fill 7 Habits training classes. ITD has even opened up the training to FedEx employees in other divisions. Other FranklinCovey training programs offered through ITD include What Matters Most (now FOCUS: Achieving Your Highest Priorities) time and life management training, Rethinking Stress, and Power of Understanding. FranklinCovey productivity consultants Blaine Lee and Henry Marsh have addressed large gatherings of FedEx employees at the company’s World Technology Center auditorium in Collierville, a Memphis suburb.

Sirrell is convinced that investing in these FranklinCovey

Improved service and response to customer needs through a proactive embrace of rapidly changing technology

Reduced bureaucracy and costs and improved business effectiveness through greater interdependence and cooperation among work teams

Improved time management and life balance skills among employees for a greater focus on priorities

Energized spirit within FedEx as the company continues to grow

14

success stories

15

1.866.742.2487

www.franklincovey.ca

programs makes an impact on employees’ ability to meet customer needs and improve results. “What Matters Most (now FOCUS: Achieving Your Highest Priorities) training and use of the Franklin Planner™ help our employees stay focused on key tasks and priorities, reduce stress levels, and improve productivity. Employees have a clearer view of themselves, and how they approach their careers, their performance, and their relationships on and off the job.”

The Leadership Institute—Where The Best Educate Others

Sirrell’s training sentiments are echoed in other areas of the company, such as the Leadership Institute, an in-house educational “university” for management. Its mission supports the FedEx philosophy of “People-Service-Profit.” In other words, as FedEx cares for and provides resources for its people, they in turn deliver the impeccable service that customers demand, which then produces profits that are reinvested in the people.

Anyone who enters a FedEx management position attends the Leadership Institute. The Institute challenges leaders to think critically and deeply about issues that don’t have easy answers, specifically as they relate to leading people. This type of education addresses the need for strong leadership that builds trust based on the dignity and respect of every person working at or with FedEx (employees, customers, vendors, stock holders, etc.).

The institute seeks out “management preceptors”—senior managers and managing directors who are recognized as outstanding leaders. Upon joining the Leadership Institute for a tenure of 24 to 30 months, Preceptors develop and facilitate courses offered to members of FedEx management. This approach not only allows managers to learn from those who have excelled, but provides the Preceptors the chance to immerse themselves in leadership and management principles.

At the end of their Leadership Institute assignment, Preceptors move back into the mainstream of management with fresh perspectives and a solid foundation for expanding their leadership responsibilities. The complement of men and women rotating through the institute as Preceptors is the most critical factor in the institute’s success.

According to Thonda Barnes, Leadership Institute Advisor, the 7 Habits is the only course the Leadership Institute offers that has been developed outside the company. “We offer an open-enrollment 7 Habits course every month (except December) and conduct several dedicated classes throughout the year for intact work teams.”

Complementary Philosophies

She continues, “The reason we chose to offer 7 Habits training is because the leadership philosophy of FedEx and the 7 Habits material are so aligned. The foundational principle we both share is that leadership is an inside-out approach; that you can only lead other people if you are first able to lead yourself. We have enhanced the 7 Habits material by making it FedEx specific where possible, but the core and integrity of the course remain the same.”

Barnes says the Leadership Institute has offered the course for over four years, and it continues to generate high approval from participants. “At FedEx, we consider the 7 Habits course an investment in the whole person because we care deeply about our people and believe that the more we can do to develop someone’s individual effectiveness, the more it will improve our effectiveness as an organization.”

She concludes, “One of the greatest benefits of 7 Habits training is that leaders see it as a tangible demonstration of the company’s concern for them as individuals and not just as employees. It reinforces the FedEx core belief in the value and dignity of every human being and the leadership responsibility of each FedEx manager to model those beliefs in everyday actions.”

David Gagnon, Senior Manager, Management Preceptor, is among those exemplary FedEx leaders who facilitates the 7 Habits training across the world. “We’ve taken this course to Brussels, to Hong Kong, to Dubai, to Latin America and discovered that the principles hold true. Participants, wherever they are located, find the material insightful and renewing.”

He continues, “One of the most useful applications I have seen at FedEx is the way the 7 Habits language establishes a shared meaning for dialogue when leaders are faced with operational problems. Phrases like ‘Think Win-Win’ and ‘deposits/withdrawals’ weave themselves into the FedEx culture as leaders and their teams work through operational issues.” Gagnon says he’s witnessed a greater win-win attitude among employees in working across divisional lines to improve service and increase profits.

Another Preceptor, Marco Chan, joined the Leadership Institute after an assignment in China as managing director. He cites another benefit resulting from applying Habit 5: “Seek First to Understand, Then to Be Understood. By understanding the power of empathic listening, managers are much better at listening to employee and customer concerns, and strengthening the relationships by building trust.”

But the most significant benefit for Chan has been on a personal level—in the area of life balance. Believing that leadership is an extension of one’s self, Chan has applied the concepts and processes of the 7 Habits in his own life, which has resulted in a better understanding of his own values and how they enable him to become a transition person. He describes it as an “intrinsic calm” that allows him to be a more effective employee, friend, family member, and leader.

“That’s what leadership is all about,” says Chan, “walking the talk, modelling the way. My purpose in life is to be a person like “Stone” [an individual featured in one of the 7 Habits videos], who is a transition figure for others to help them grow and develop.”

And a transition person he is. Chan has been instrumental in several initiatives in the company that focus on developing future leaders, such as the Asian Leadership Forum. “If we can help our employees conquer those private victories, it will build self-esteem and confidence. Then they will be able to remain calm and think clearly in the middle of the incredibly fast FedEx pace where we are dealing with changes by the second.”

Throughout its existence, Federal Express has led the industry in introducing new services to help customers improve their business performance. As technology changes, and as the manufacturing and retailing demand for comprehensive logistics services grows, FedEx will be there, embracing change and providing those services with excellence. And FranklinCovey training will be there, too, helping FedEx employees fulfil their mission.

“Technology is constantly evolving, and we must be able to deliver the latest technology that will improve the efficiency of our delivery services. The 7 Habits training gives our people greater capacity to deal with rapid change and to be proactive in harnessing technological advances.”

— Sharon SirrellSenior Development Support Analyst, FedEx

16

success stories

17

Throwback to Yesteryear Yields Present-Day Profitability PaybackScriptSave

Executive Summary

Training in The 7 Habits of Highly Effective People® and The 4 Roles of Leadership® at ScriptSave has helped the company create a level of customer care and concern reminiscent of decades past—and unheard of in the industry today. Senior management attributes the company’s revenue growth, dominant market share, solid customer relationships, and job-satisfaction levels to the team spirit and corporate culture enhanced by The 7 Habits®.

ScriptSave has been listed in the Inc. 500 for the years 2000 and 2001, with five-year growth rates exceeding 1600 percent. Revenues for 2001 were $15.6 million, and are projected at $19.8 million for 2002. All calls to the company’s Customer Assistance Team are answered in person, with 95 percent of calls answered within 15 seconds. The “call abandonment” or customer hang-up rate is one of the lowest in the industry. What’s more, the rate of employee turnover is less than half the industry average.

Remember when the milkman delivered to your door, the doctor made house calls, and the nice kid pumped your gas, washed the windshield, and gave candy to the children? If you do, you might understand the world of Tucson, Ariz.-based ScriptSave, a leading provider of prescription-drug discounts and pharmacy savings programs for senior citizens.

Dial most customer-service phone numbers these days and you get an impersonal, automated message and a menu of buttons to push. ScriptSave, however, is a notable exception to the prevailing customer-care mentality. The company’s CEO, Charlie Horn, believes that looking back to a simpler time has been the key to ScriptSave’s phenomenal success and growth.

Founded in 1994 as the Medical Security Card Co., the firm changed its name to ScriptSave in 1998 to ref lect the focus on providing maximum prescription savings for individuals who don’t have insurance coverage for prescription medicines. ScriptSave serves its plan sponsor clients—hundreds of leading insurance organizations, Blue Cross Blue Shield plans, major employers, and healthcare organizations—by managing and explaining the details of the prescription discount cards to individual cardholders who number in the millions. Virtually all ScriptSave cardholders are over age 50, and 80 percent are over age 65.

ScriptSave has developed a national network of pharmacies that grants discounts to ScriptSave cardholders. Discounts average more than eight dollars per prescription at over 30,000 pharmacies nationwide (95 percent of all pharmacy chains). Plan savings for cardholders are projected to exceed $180 million in 2002.

Man Over Machine

ScriptSave has three main service teams, each charged with providing “positively outrageous service.” Roughly 35 call center professionals in the Customer Assistance Team (CAT) answer more than 1,400 toll-free calls per day—personally. The second team, Account Services, works with new plan sponsors to install and provide critical, ongoing support for the ScriptSave card program. Pharmacy Assistance, the third team, serves the needs of ScriptSave’s pharmacy partners, enrolling new stores in the network.

“A Smile in Her Voice”

A stroll through the call center creates the feeling that you’ve stepped back a few decades to a simpler time when you could linger with a customer, swap stories, or even make a friend.

When ScriptSave was founded, Horn grappled with the challenge of how to best handle customer service. He knew that most calls would come from cardholders aged 65 and older, and that they would need the type of friendly, compassionate, personal service and attention not possible with an automated system. Horn first outsourced the customer service function to a call center but never had a good handle on how well cardholders were being served. By 1997 he had moved customer service in-house.

Horn credits the near miraculous harmony and zeal of ScriptSave employees to three factors:

Belief that cardholders are deserving of a calm, human voice and a listening ear—each time, every time they call for help. In a world driven by automation, this is unheard of.

Trust in the judgment of carefully screened and trained call-center professionals, who are authorized to take whatever time is necessary to help customers who are trying to navigate the rules, regulations, and paperwork required to preserve health and dignity.

Corporate-wide embrace and individual belief in a set of core principles adapted from The 7 Habits of Highly Effective People training and literature.

These three factors intertwine to ensure that those served are provided “positively outrageous service,” which ScriptSave cultivates with rewards, personal and group recognition, and training that enhances skill and sensitivity to clients. Feedback from one client praising a ScriptSave associate for her wonderful service noted “she always has a smile in her voice and is consistent with her positive attitude.”

ScriptSave hires those who possess most of the skills required to serve its customers, and helps them acquire the skills they still need. New employees receive up to three weeks of formal training before they take their first call, plus another 60 hours of training per year. “Ninety-five percent of our calls are answered within 15 seconds by a warm, caring human voice,” Horn said. “Our call-abandonment, or hang-up rate is one of the lowest in the industry.”

16

success stories

17

Throwback to Yesteryear Yields Present-Day Profitability Payback

Vital Role of The 7 Habits Training

Horn said the team spirit that pervades ScriptSave was sparked by the vision and desire of his executive team to create a company culture based on respect for individual needs, talents, and capabilities. The team figured that once everyone understood what the business was all about, and had been given a reason and the tools to deliver unparalleled service, that breakaway growth would follow. The team was right.

The catalyst for the ScriptSave culture was Gloria Centofanti, Vice President of Organizational Development. Buoyed by her experience implementing The 7 Habits with a former employer, Centofanti was thrilled with the prospect of introducing the training when the company was a fraction of its current size. She, along with her OD team members Cyndi Sparks, Manager of Learning and Development, and Melissa Roadman, Director of Human Resources, shaped the culture. FranklinCovey partners Debra Larson, Managing Client Partner, and Susan Dathe-Douglass, Leadership Consultant, have worked hand-in-hand with the ScriptSave team to provide the best resources to achieve the desired results.

According to Centofanti, training in The 7 Habits has helped ScriptSave “operationalize” its mission statement: We serve others as we would like to be served. We are advocates for each other and our customers.

“ScriptSave professionals at all levels are not judged solely by the speed and efficiency of their work, but by the responsiveness that empathetic listening allows them to leverage with each client to create a lasting impact,” Centofanti said. “Although certainly not as simple as it might sound, The 7 Habits provides practical insight on how to handle individual client requirements, no matter how far outside the norm. We’re also better at planning and organizing for the expected, and reacting to the unexpected.”

“Code Blue”

Centofanti cited the company’s creation of “Code Blue” as a response mechanism for the unexpected.

Due to a snafu in the enrolment of a new plan sponsor, ScriptSave was f looded with thousands of unanticipated calls from new cardholders. The company’s response to such a dramatic work overload was to mobilize every employee from every department for two solid weeks to serve the customer. “There’s no question as to priority or to individual or organizational responsibility,” Centofanti said. “Company values, embraced at the very beginning, dictate that the customer is in the preeminent position.”

Shedding New Light on “Focused Productivity”

ScriptSave has gone to creative lengths to help employees focus on its mission and devote as much time as possible to “Quadrant II” activities.

As described in the time management best-seller First Things First by Stephen R. Covey, Roger A. Merrill, and Rebecca R. Merrill, Quadrant I represents things that are both important and urgent. ScriptSave’s “Code Blue” response to the tidal wave of new cardholder calls is a prime example of important and urgent Quadrant I activity.

By contrast, Quadrant II is the “quadrant of quality.” It’s where employees “… anticipate and prevent problems, empower others, … or invest in relationships through deep, honest listening.”

ScriptSave created and supplies each employee with a “Quadrant II light,” positioned outside offices and cubicles. When lit, it signifies that the employee is focused on an extremely important priority—usually tied to customer service—and fellow employees know to respect this highly productive time.

CAT Specialist Serves, Consoles Cat Owner

The following story illustrates the “positively outrageous service” provided to cardholders by ScriptSave’s Customer Assistance Team (CAT):

Mary Williams, a ScriptSave Customer Assistance Specialist, took a call from a Mrs. Smith on the east coast. Mrs. Smith had just received her ScriptSave discount card in the mail, and was calling to obtain names of pharmacies in her area that would honour the card. Mary gave her the information, and also provided an educational overview of the card’s additional features.

During the conversation, Mary sensed that her customer was somewhat distraught. After listening patiently, Mary learned that Mrs. Smith’s close, long-time companion was very ill—so ill that his survival was in doubt. Mary ultimately discovered that Mrs. Smith’s priceless companion was … her cat.

For the next 20 minutes, Mary continued to listen to her customer’s concerns, validated her feelings, and tried to reassure her. Mrs. Smith was overwhelmed that anyone would take the time to listen to an “old woman” fuss over her cat. Not only did Mary take the time to listen and answer all of her customer’s questions about the program, she followed up after the call with a brief personal note to Mrs. Smith, expressing her best wishes for the cat’s full recovery.

“The most critical habit of The 7 Habits is Habit 5: Seek First to Understand, Then to be Understood®,” said Maria Lopez, Director of Service Operations, the heart of the customer response system at ScriptSave. “Our objectives within the call center are to make a difference in someone’s life, to know that we’ve acted with integrity, and to be constantly learning, adapting, and evolving.”

Such emphasis on quality vs. quantity translates into increased job-satisfaction levels as well. According to Lopez, ScriptSave is an employer of choice in the Tucson area. Recruiting is driven by word of mouth through employees, and the turnover rate is less than half the industry average.

Future Focus

Rod Dunmyre, ScriptSave Executive Vice President and a former ScriptSave customer, said The 7 Habits has allowed the company to create its own culture, rather than suffer culture by default. “Our success in the marketplace of largely senior citizens is attributable to the time deposits we make in the ‘Emotional Bank Accounts’ of those who call us. In order to have a clear sense of what we must do next in the marketplace we need to make an intense investment in seeking first to understand. While ScriptSave was first to the market, larger competitors have entered the industry. What we do next—and how we make ourselves different and valuable—will shape our future.”

Added CEO Charlie Horn, “We rely on The 7 Habits to align us as we grow. It provides a common language—a common mentality for our entire organization. Our corporate culture is a true team environment, and our employees understand how we interrelate, how we are linked. I lead our new-employee orientation, and afterwards the comments frequently are: ‘I see how I fit into the organization.’ That’s important!”

Horn concluded, “Our revenue growth, our dominant market share, our major industry relationships are, I believe, an indicator of the positive financial impact attributable to The 7 Habits.”

Fast Growth Creates “License to Lead”

ScriptSave employees experienced The 7 Habits training to establish a code of conduct for how they would work together and treat their customers. An internal needs assessment revealed other gaps in leadership skills. ScriptSave’s fast growth had spawned numerous management positions filled internally by employees with no previous leadership experience.

According to OD team member Cyndi Sparks, who is certified to facilitate The 7 Habits of Highly Effective People® and The 4 Roles of Leadership® workshops, ScriptSave developed a 12-month “License to Lead” training initiative for all supervisors and executives. The 4 Roles course—which teaches the key roles of pathfinding, aligning, empowering, and modelling—launched the initiative. Monthly “development dialogue” sessions followed over the next 11 months covering topics that tied back to The 4 Roles framework.

In turn, “License to Lead” inspired a new, six-month effort dubbed “Leadership Readiness”—also based on The 4 Roles—which trains employees wanting to become leaders.

“Our business path is a winding one,” Sparks said. “Markets and strategies shift and change, but The 4 Roles has given us the leadership framework to determine if we’re aligned properly and if we have the right processes and systems in place to adapt to change and reach key objectives successfully.”

18

success stories

19

Raising Satisfaction Levels and Market Share in a Competition-Rich, Labour-Scarce Building Environment

Younger Brothers Construction

Executive Summary

Since implementing in-house facilitated training in The 7 Habits of Highly Effective People®, Younger Brothers Construction has enjoyed clearer communication, better cooperation with its trade partners, less rework, improved cycle time, and reduced costs.

With results like this, it’s easy to see why the company has consistently increased customer- and employee-satisfaction scores, growing market share by two percent in 2001. In 2002, new orders are up 10 percent over the same time last year and 18 percent over this year’s projections in the extremely competitive and f lat Phoenix housing market.

Ranked 63rd among Arizona’s top 100 private companies, Glendale, Ariz.-based Younger Brothers Construction (YBC) has experienced remarkable success and growth since its founding in 1975 by then 22-year-old, part-time student Jim Younger III.

Today, YBC is one of Arizona’s top housing trade contractors, employing nearly 1,000 workers in four companies: 1) framing, 2) roof trusses and wall panels, 3) door and trim installation, and 4) lumber supply. The fast-paced housing industry in the Phoenix metro area has been averaging 30,000 housing starts annually for several years. In fact, the Phoenix housing market has traditionally ranked No. 1 or No. 2 in total housing starts, just ahead or just behind Atlanta, GA.

Growing Pains and Labour Shortages

According to Younger, his company was framing roughly 300 homes a year back in the mid-1980s. Then the October 1987 stock market crash hit and housing starts plummeted. Many contractors moved out for greener pastures. By 1990, however, “this place took off once again, almost overnight,” said Younger. “There was a severe manpower shortage, and the No. 1 challenge for all contractors was finding skilled labour. Many of the qualified workers still in the area took management positions as the market improved, further depleting the labour force.”

Finding adequate labour for the Phoenix market remains a problem today. “And a scarce labour force creates other problems, such as quality and cycle time, and all of that drives up costs,” Younger said.

The Timely Inf luence of Shea Homes Arizona

Today, YBC frames homes for such successful builders as Shea Homes Arizona, Shea Active Adult Communities, Ryland Homes, Lennar Homes, T.W. Lewis, Beazer Homes, Monterey Homes, Edmunds Toll, Journey Homes, Sivage Thomas, Greystone Homes, and US Homes.

Shea Homes Arizona, a subunit of J.F. Shea Company, Inc. based in Walnut, CA, has been a fixture in the Arizona market since 1989, when it purchased the assets of Knoell Homes. By the mid-1990s, Shea Homes Arizona president Garth Weiger recognized an escalating problem tied to the labour shortage. Homes were not being built quickly enough, plus there was a quality problem. In the extremely competitive Phoenix market, where no home builder has a 10-percent market share, not keeping up with demand means losing out to other builders.

According to Jim Younger, Shea Homes’ Weiger called him on the phone with some good news and some bad news. The

good news was that Shea Homes was starting a Total Quality Management (TQM) program and was inviting its “trade partners” such as YBC and others to participate. The bad news was that it would cost each trade partner $5,000 to get involved, and a consultant would be sent out to review their operations.

“I wasn’t open to the idea of training at the time,” Younger said. “I was doing a lot of Shea’s business and felt I was pretty good at what I do. Although I’d recognized the same problems Garth had, I felt we were doing the best we could do. I didn’t realize until after I got into the TQM training how wrong I was.”

Supporting TQM with The 7 Habits®

Buddy Satterfield succeeded Weiger as president of Shea Homes Arizona, and carried the torch to find new ways to build homes better, faster, and cheaper to reduce cycle times while improving quality and reducing costs.

Younger credits Satterfield and Shea Homes vice president Paul Kalkbrenner with turning Shea Homes Arizona into a learning organization that continuously seeks ways and means to make itself and its trade partners better.”All of the TQM pieces and parts Shea Homes gave us initially were wonderful, but until they brought in The 7 Habits of Highly Effective People training, the trades were still doing business the old way, which was to back-charge each other for mistakes, fix the work, and never talk about the issues,” Younger said. “Then all of a sudden we had this new approach called Think Win-Win®, and a new language.”

Younger explained the way to make TQM work is to get all the trades to a place where they truly understand each other, where they can cooperate.

“The language of Think Win-Win means I’m not only looking out for YBC but also for my other trade partners—concrete, plumbing, electrical, drywall—and providing an end product that makes it easier for them to do their jobs, to care about what they care about, and in the end, build relationships and improve things for everyone,” he said. “I can’t believe we worked all those years and never figured that one out. It took Shea Homes and The 7 Habits to help us discover the business benefits of improved human relationships.”

YBC now has six licensed facilitators that teach The 7 Habits of Highly Effective People workshop, held at the headquarters facility and at YBC’s Door and Trim site. “We’ve put the entire management team through the training and continue to conduct workshops throughout the year,” Younger said. Lorie Bonzo, director of Human Resources at YBC added, “We’ve witnessed extraordinary changes in people’s professional and personal lives.”

success stories

Younger Brothers Construction

“Becoming a learning corporation is the greatest thing that’s ever happened to us. Where we once saw ourselves as just a trade contractor framing houses, we now see ourselves in the people business. The language we now speak has really defined specific behaviours amongst ourselves, how leaders need to operate, how people need to interact, and how we need to respond to each other.”— Jim Younger

18

success stories

19

Raising Satisfaction Levels and Market Share in a Competition-Rich, Labour-Scarce Building Environment

1.866.742.2487

www.franklincovey.ca

Skilled Labour Pool

The labour shortage in the Phoenix area has positioned Hispanics among the most available skilled labourers. While not all trade contractors in the area have adapted well to the current labour environment, YBC has embraced the challenge proactively. Indeed, out of the roughly 450 workers in the framing operation, nearly 70 percent are Hispanic.

“We’re very pleased with the work ethic and loyalty among our Hispanic associates,” Younger said. “Bridging cultures in a business environment is a two-way street. We’re committed to learning Spanish, we’re developing The 7 Habits training in the language, and we’ve complemented our Human Resources department with a Spanish-speaking staff, some of whom will be trained as facilitators for The 7 Habits. Plus, we publish our newsletter in Spanish. We’re also assisting our Hispanic employees in learning English and in how to adapt to our culture a little bit better.”

Measurable Results

YBC has conducted satisfaction surveys for the past six years. Are customers (builders like Shea Homes, Ryland, and Lennar) satisfied? Younger considers increased market share a strong indicator. He said YBC has boosted total market share in the Phoenix valley from seven percent to nine percent in a f lat market. “What’s more,” he said, “we’re 18 percent over our housing-start projections for this time last year, again in a f lat-market environment.”

He added, “Training in The 7 Habits has inf luenced our customer relationships to an exceptional degree. The magic in home building is in the hand-off from trade to trade, and in what we can do to make other trade contractors’ jobs easier in order to reduce cycle time.”

On a scale of 1 to 5 (with 5 being best), external customer-satisfaction survey grand mean totals were 3.5 in 1996, 4.01 in 1998, and 4.09 in 2000. As for employee satisfaction results, the grand mean total was 4.0 in 1997 and 4.09 in 1999.

“As we’ve put The 7 Habits in place, I don’t think it’s any coincidence that we’ve seen improvement in our grand mean total each year, so we’ve really built a incredible culture around The 7 Habits principles,” Younger said. “We’ve identified our core values, we know our purpose, we have our commitments to our customers, team members, and community, as well as to our finances and profitability. We’ve worked hard to bring definition to who we are, what we stand for, and what we want to be. The 7 Habits is not the training ‘f lavour of the month.’ It’s sustaining us quite well.”

Future Focus

To say that Jim Younger is very excited about the future is an understatement. His five-year plan includes finding and applying better building technologies and continuing to improve ways builders and trades work together.

“Until we put The 7 Habits in place—and more recently Win-Win Agreements—synergy and teamwork were vague concepts to us,” Younger said. “Becoming a learning corporation is the greatest thing that’s ever happened to us. Where we once saw ourselves as just a trade contractor framing houses, we now see ourselves in the people business. The language we now speak has really defined specific behaviours amongst ourselves, how leaders need to operate, how people need to interact, and how we need to respond to each other.”

He concluded, “The 7 Habits enabled us to go places we never thought we could. I couldn’t be more proud of the people I work with. I’ve also developed good business relationships with other trades. I enjoy my work and the homebuilding industry more than ever.”

What Makes it Work for the Good of Business

When Jim Younger attended FranklinCovey Symposium in Salt Lake City a few years ago, he discovered the concept of balanced scorecards—a framework that links business strategies with day-to-day activities in order to make improvements and track progress.

According to The American Productivity & Quality Center, a non-profit consulting organization based in Houston, Texas, organizations tend to juggle a number of improvement initiatives simultaneously, but often lack the alignment to structure these initiatives in a cohesive way that addresses an overall strategy. Integrating the four related perspectives of finance, customers, internal processes, and innovation and learning, balanced scorecards are a means of understanding the overall performance of an organization. Plus they’re a way to focus people’s attention on desired behaviours and desired results.

“After Symposium, I knew that balanced scorecards were something we needed to do,” said Younger, “but we struggled for two years on how to implement them. I called Debra Larson, our FranklinCovey Client Partner, and she hooked us up with FranklinCovey consultant Jim Stuart, who has since taken a very complicated subject and made it something we can all understand, implement, and maintain.”

Younger added, “If we claim to be an innovative company, we need a gauge that shows we are; if we’re committed to safety and to customer satisfaction, we need gauges that prove it.”

Respond Instead of React

Younger said his company has had no lack of measurements. “We have measurements everywhere. Prior to balanced scorecards, when a problem arose, we’d start looking in one haystack, then another. You can be in the seventh or eighth haystack when a new problem crops up.”

He explained that balanced scorecards provide a focus on “lead and lag” indicators. In the area of safety, for example, a lead indicator would be a safety violation written. No one’s been injured at this point. A lag indicator would be an incident—the accident itself.

“If you’re doing a good job of tallying up the number of violations written and witnessing that the percentage is going up, then the lead indicator is that accidents will increase if we don’t get this under control. You’re not waiting until after an accident to fix the problem. You get a chance to be proactive and do something about it ahead of time. Balanced scorecards give you hyper-focus at a higher level, allowing us to respond instead of react,” Younger said.

The Support of Win-Win Performance Agreements

With balanced scorecards comes accountability, as various members of the leadership team are responsible for specifics being measured. The concept of Win-Win Agreements® is one in which the organization is accountable to its people for overall results, individuals are accountable to the organization for their performance, and all parts of the organization are accountable to each other for the integrity of the organization.

“Jim Stuart sat down with each member of the leadership team to work through a Win-Win Agreement,” Younger said. “It’s a piece that’s been missing for a long time.”

“For example,” he continued, “we’re always pursuing new and better ways of doing things to reduce the amount of re-work and improve cycle time. We’re looking at closed panel systems, which are wall panels that include the electrical and plumbing components right in the panel—something not typically done much in the west. The Win-Win Agreement really spells out accountability, defines outstanding behaviour for executives in implementing strategy, and how a leader is going to treat another leader.”

Younger concluded, “The Win-Win Agreement is a means of initiating cooperative action so that people can do their jobs better and more accurately measure success. Without question, this is one initiative that makes us enthusiastic about the future.”

20

success stories

FranklinCovey Synergy Solution

Helps leaders and employees achieve superb results by pulling together at the highest levels of effectiveness and teamwork.

FranklinCovey Focus Solution

Helps employees from top to bottom in your organization voluntarily and passionately focus

and execute on your highest priorities.

Focus Solution

AssessmentxQ™ Survey and xQ Leadership Debrief

LearningFOCUS: Achieving Your Highest Priorities

LearningAligning Goals for Results

Application ToolFranklinCovey Planning System

Synergy Solution

AssessmentxQ™ Survey and xQ Leadership Debrief

LearningThe 7 Habits of Highly Effective People®

LearningThe 4 Roles of Leadership®

LearningFranklinCovey Leadership Week™

Application ToolFranklinCovey Planning System

Create your own success story with FranklinCovey® solutions to help you focus and execute on top business priorities.

1.866.742.2487

www.franklincovey.ca

Complete Solutions with Assessment, Learning, and Tools

Changing current behaviours and ways of doing things in your company is daunting.

Creating habits of individual and organizational effectiveness can best be achieved with a complete

development solution that combines assessment with compelling learning and a daily implementation tool. Our

Focus and Synergy Solutions help your people sift out competing priorities to the essential few and team together to succeed.

Contact Us TodayTo discover the extent to which your organization focuses and executes on top priorities, and how we can help you close the “execution gaps,” creating sustained, measurable improvement.

Please contact the FranklinCovey Client Partner in your area, or call toll free 1-866-742-2487. We provide solutions that will change the way employees throughout your organization envision their responsibilities, focus on key objectives, and team together for success.

© 2003 FranklinCovey Printed in Canada 6071