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Revised Version

Project: Employee Performance Review System

Client: National Starch & Chemical

The Problem

For over a hundred years, National Starch & Chemical has been manufacturing a variety of materials, including adhesives, specialty polymers, electronic & engineering materials, and specialty starches for pharmaceutical, food, and industrial uses. It has 10,500 employees in 140 manufacturing and customer service locations in 38 countries on six continents. Last year's sales were approximately three billion dollars.

Each year the company conducts an annual top-to-bottom performance review for all employees, including management. These reviews are crucial for feedback, promotions, bonuses, and raises, as well as for assessing the company's capabilities and expertise in a variety of areas.

National Starch's problem was that the technology it used for performance reviews had not changed much in over a hundred years: each employee's review relied on a variety of multi-page paper forms which were created, transported, and processed by hand. Once created, reviews were accessible to employees, but complex steps were required to preserve corporate security and employee privacy, as well as to prevent loss or damage to the individual paper forms themselves.

Because the data was analog pen and paper instead of digital, any automated analysis, such as data mining, was virtually impossible. By the time the data of interest was collected, keypunched, and analyzed the new review cycle would almost be underway. Late answers are very often wrong answers.

Entology was asked to automate, streamline, and revamp the whole process, with the goal of converting employee reviews from a large-scale passive data collection problem into an active information resource for both managers and employees.

The Solution

Entology worked closely with National Starch to understand how the data from performance reviews were used, and to explain and explore the myriad of opportunities made available by digital data. Paper is a highly limiting medium for data storage and companies often continue to think in terms of paper even when its restrictions and constraints are eliminated by adopting digital documents.

Entology wanted the performance review collection and evaluation process to be straightforward in order to avoid costly -- and time-consuming -- training efforts. That meant our solution had to be readily understandable by people who had never seen it before and who would only use it once a year. We also wanted to leverage National Starch's existing information infrastructure and employee expertise wherever possible, instead of replacing them. And we wanted the whole process to be monitorable and auditable, to ensure proper functioning by both humans and machines. Finally, whatever solution we created had to be totally secure to safeguard privacy and maintain corporate security.

These are complicated requirements and constraints, but Entology loves nothing more than a serious challenge. We ended up designing a straightforward performance review system automating everything that makes sense to automate, and adding interlocks wherever possible to ensure the review process keeps moving forward. The final workflow consists of:

A human resources administrator or senior manager initiates the annual review process.

Email is automatically sent to every employee and manager notifying them of the review process's start and supplying a URL (hyperlink) to the review worksheet Webpage specific to that individual.

Each employee then populates their specific worksheet using a browser, reviews and modifies it as needed, and marks it as complete. Relevant information like yearly goals, past reviews, etc. is available to the employee throughout this process. Email reminders to complete the review are automatically issued, when appropriate, to specific employees and their managers.

Each manager automatically receives ongoing notification upon the completion of each supervised employee's worksheet.

Managers review subordinates' worksheets, entering information for direct reporting subordinates and indirect ones, if needed.

Managers see a list of tasks, both open and completed, as well as a graphical view of the overall progress for their review responsibilities and those of any manager subordinates.

Review by each level of management is automatically tracked, with email reminders automatically generated, as appropriate, to ensure timely completion.

Each employees is notified when their review is complete, and can then access the completed reviews online, together with related information such as job goals and previous reviews. As part of reading the review, the employee also acknowledges its receipt.

For the implementation, Entology selected proven technology:

An Internet Explorer Web browser based user interface was picked for data entry, review, and monitoring. Since virtually all National Starch employees are familiar with Web browsers and online forms, new training would rarely be required. All Web pages are generated dynamically to maximize flexibility and easily support future expansion.

IBM/Lotus's Domino system was selected to implement information workflow, document management, monitoring, and employee notification. Using proven, robust technology like Domino chops months off a delivery schedule and ensures the resulting system is rock solid, flexible, and maintainable.

National Starch's existing PeopleSoft system was chosen for storing and managing all employee data, including yearly job objectives, performance worksheets, and reviews. Relying on existing technology -- with database structures and information already in place -- yielded significant cost and time savings.

Return on Investment

ROI analysis for a project like this couldn't be simpler. National Starch saved a pile of money and ended up a solution with incredibly low maintenance costs. To top it all off, they made everyone who used the system happy in the process. Entology's solution was, as usual, delivered on-time and on-budget. (We hate surprises even more than our clients.)

The ROI breaks down into:

savings from eliminating paper forms, including printing, populating, transporting, storing, accessing, and maintaining

savings by reducing the time employees spend creating review worksheets

savings from management's completing reviews faster and more accurately, with fewer hours expended per employee

improved business potential because data mining and other on performance data allows a better handle on employee capabilities, expertise, and skillsets

Everyone at National Starch is happier because of Entology's new performance review system:

Employees are happier, since they can see all facets of the review process online, instead of tracking down various pieces of paper, and because the process is less burdensome and yields more accurate results.

Managers are happier because it takes fewer hours and gives better results, including increased employee morale.

The company is happier because a necessary part of business can be completed with vastly lower employee hours, increasing productivity and decreasing overhead.

Client's Reaction

We could tell you how much National Starch liked our system, but we'd much rather let our client speak for itself.

Lynn Del Paoli, Human Resources Administrator for National Starch & Chemical, expressed the company's appreciation for our efforts:

"Entology's eBusiness solution helped National Starch & Chemical develop a system that will enable us to handle our HR Planning throughout the U.S. with the plan of being able to expand to other parts of the world next year.

Entology has continued to not only meet, but exceed our expectations in the development of this process.

Entology continues to meet deadlines and stay on budget. The expertise of the developers in technology and in understanding the business process have certainly helped make this project a success. They have worked at delivering a complex process involving various systems in the required timeframe.

We look forward to a continued relationship in the development of our various HR systems."

We know your reaction to Entology's solutions will be the same.

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