Doing Recognition Events the Right Way - Lessons Learned from Wells Fargo

[Roy Saunderson]

Wells Fargo Recognition Events Cancelled

Wells Fargo & Company recently cancelled a recognition event and conference, and all future events, after the furor of the public and media attention since they had previously received TARP bailout monies.

To get a little more context you can read an opinion editorial I wrote in today's National Post

Yesterday, U.S. Treasury Secretary Timothy Geithner introduced details of the Obama Administration's so-called "Financial Stability Plan," aimed at restoring national confidence in the financial system.

The week before Secretary Geithner provided new guidelines for executive compensation and other expenditures for companies benefiting from government bailout programs, which included one provision related to corporate travel, meetings and incentives. It stated that companies receiving "exceptional financial recovery assistance" must adopt a "company policy relating to approval of luxury expenditures."

U.S. Treasury Guidelines

Specifically the guideline states:

"The boards of directors of companies receiving exceptional assistance from the government must adopt a company-wide policy on any expenditures related to aviation services, office and facility renovations, entertainment and holiday parties, and conferences and events. This policy is not intended to cover reasonable expenditures for sales conferences, staff development, reasonable performance incentives and other measures tied to a company's normal business operations. These new rules go beyond current guidelines, and would require certification by chief executive officers for expenditures that could be viewed as excessive or luxury items. Companies should also now post the test of the expenditures policy on their web sites."

The meetings industry suggests that recognition events such as Wells Fargo was planning to hold may need to increase their focus on specific business purpose and accountability and will have to ensure an increased focus on public perception and corporate responsibility.

Lessons Learned from Wells Fargo

1. Stand Up For What You Believe In. Wells Fargo, CEO, John Stumpf, made a bold stand in defending his company's intentions and integrity around the recognition events and recognition practices for their employees - both in a letter style ad and before Congress. Some have questioned the cost and intent behind the ad. Knowing Wells Fargo employees as I do I know their company truly recognizes their people for the right reasons and their leaders strongly support these practices.

2. Plan Recognition Events With A Stated Purpose.
Any recognition event scheduled can't be seen as just an excuse for a glorified party. It should be a business meeting with recognition experiences that honor and value the contributions of those who earned the right to be there. All events must have a clear set of objectives that can be evaluated at the conclusion. Fun can be in there too!

3. Return and Report on the Outcomes. Maybe past recognition events haven't always done this but I am forever reminding clients that they must conduct post-review meetings. This entails doing surveys and interviews of participants. Did the event achieve the stated objectives? How did the participants feel about the event? Did they feel honoured for their contributions? Were any awards presented in a menaingful manner by the leader(s)?

4. Deliver a Solid Event ROI Statement. This is where engagement is truly measured by looking at the costs of a recognition event overe the return for the performance and financial results achieved by the attending employees. Costs for travel, accommodations and planned activities are always a small percentage of the bottom-line results obtained. You just need to provide the facts and dollar signs to prove it.

5. Provide a Public Perception and Corporate Responsibility Checklist. Determine the criteria your shareholders, employees, and everyday nextdoor neighbour would want you to hold to for such a recognition event. Now go through your plans, purpose, costs and desired outcomes and just validate that there would be no wrong perceptions if this ended up under public scrutiny.

We live in very different times and we have to do things differently and better than we have ever done before. The public and media attention to the Wells Fargo event is simply reminding us that if we are to engage our employees better, as well as the public, we need to create clearer objectives for our recognition events, measure how we did, and give an accounting by providing a report on the ROI for all of our recognition events.

Next time we'll be applauding the employees and not just the CEO!

Roy Saunderson, President
Recognition Management Institute

[maggie chicoine]

Hello Roy! Thanks for this post. On a personal note,it's been a long time since we've connected at CAPS. - Maggie