1. ADR in the New Workplace: Raising the Bar on Employment Dispute Resolution Harry Jonas, Ph.D. Manager, Organization Effectiveness April 27 th, 2007

2. 2 Corning Incorporated Agenda Corning Background Corning Values Drivers of Employee Engagement Employee Engagement Strategies Summary

3. 3 Corning Incorporated Founded: 1851 Headquarters: Corning, New York Employees: Approximately 26,000 worldwide 2006 Revenues: $5.17 Billion

4. 4 Corning Incorporated Who We Are World leader in specialty glass and ceramics. We create and make keystone components that enable high- technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences We succeed through sustained investment in R&D, over 150 years of materials science and process engineering knowledge, and a distinctive collaborative culture. Display Technologies Telecommunications Life Sciences Environmental Technologies

5. 5 Corning Incorporated A Culture of Innovation Processes for mass producing the television bulb 1947 First low-loss optical fiber 1970 1915 Heat- resistant Pyrex® glass 1984 LCD glass for computers and flat panel TVs 1879 Glass envelope for Thomas Edison’s light bulb 1972 Ceramic substrates for automotive catalytic converters

6. 6 Corning Incorporated Awards Four time National Medal of Technology winner Malcolm Baldrige National Quality Award, Corning Optical Fiber in 1995 Multiple Winner: Catalyst Award Consistently one of FORTUNE magazine’s most admired companies “Top/Best” company lists for Forbes, Working Mother, Industry Week, ComputerWorld, Black Collegiate, Automotive Industry, Best for IT

7. 7 Corning Incorporated “Don’t look back…something might be gaining on you.” (Satchel Paige)

8. 8 Corning Incorporated Our values are the historic strength of our company, guide our every move and continue to set us apart from other companies. –Quality –Integrity –Performance –Leadership –Innovation –Independence –The Individual Corning Values

9. 9 Corning Incorporated Integrity Value Definition: Integrity is the foundation of Corning’s reputation. We have earned the respect and trust of people around the world through more than a century of behavior that is honest, decent, and fair. Such behavior must continue to characterize all our relationships, both inside and outside the Corning network. Behaviors: Act honestly and ethically in all relationships. Treat others with trust and mutual respect. Share thoughts, feelings, and information to make correct business decisions.

10. 10 Corning Incorporated Individual Value Definition Definition: We know that in the end the commitment and contribution of all our employees will determine our success. Corning believes in the fundamental dignity of the individual. Our network consists of a rich mixture of people of diverse nationality, race, gender, and opinion, and this diversity will continue to be a source of our strength. We value the unique ability of each individual to contribute, and we intend that every employee shall have the opportunity to participate fully, to grow professionally, and to develop to his or her highest potential. Behaviors: Values diversity in backgrounds, styles, and opinions of others. Takes responsibility for own development. Encourages the full contributions of colleagues and co-workers. Takes responsibility to help create a safe and organized work environment.

11. 11 Corning Incorporated Values Deployment Risks Definition Risk –Failure to provide specific behavioral guidance that reflects the Values Integration Risk –Key policies and processes do not incorporate the Values Alignment Risk –Absence of mechanism(s) to correct behaviors inconsistent with the Values Sustainability Risk –Failure to enforce accountability for living the Values (drives dilution over time) Source: Corporate Leadership Council: Engaging the Work Force (2003)

12. 12 Corning Incorporated Obvious Example of Deployment Risks Our Values Communication We have an obligation to communicate. Here, we take the time to talk with one another… and to listen. We believe that information is meant to move and that information moves people. Respect We treat others as we would like to be treated ourselves. We do not tolerate abusive or disrespectful treatment. Integrity We work with customers and prospects openly, honestly and sincerely. When we say we will do something, we will do it; when we say we cannot or will not do something, then we won’t do it. Excellence We are satisfied with nothing less than the very best in everything we do. We will continue to raise the bar for everyone. The great fun here will be for all of us to discover just how good we can really be. more

13. 13 Corning Incorporated Employee Engagement Index* Employee Engagement Index* *Results of Stepwise multiple regression (R 2 =.65) *Engagement index = overall satisfaction, feeling valued Items listed in descending order of contribution to overall variance Key Drivers of Employee Engagement How satisfied are you with your involvement in decisions that affect your work? I am given a real opportunity to improve my skills in this company. How satisfied are you with the recognition you receive for doing a good job? In my work group employees are treated with dignity and respect, regardless of their background.

14. 14 Corning Incorporated Selected Employee Engagement Strategies Partnership (late 1980’s) GoalSharing (early 1990’s) iDMAIC (early 2000’s) Values Toolkit (coming)

15. 15 Corning Incorporated Strategy & Leadership Partnership U.S. Manufacturing-driven (response to Asian competition) –Primarily in Union- represented facilities High Performance Work Systems framework –Socio-Technical Systems work redesign Led to new factory design principles and processes still in use today Branched out beyond manufacturing to salaried professional groups Organization Awareness & Support Steering Committee & Direction Organizational Improvement Plan for Implementation Evaluation & Renewal

16. 16 Corning Incorporated GoalSharing Largest variable pay program within the company; all levels Based on principles of reward sharing and broad- based business education Balanced scorecard of goal categories (quality, cost, service) Peer managers (not top management) review plans annually based on rigorous criteria Annual payout ranges from $20MM to $40MM

17. 17 Corning Incorporated iDMAIC Personalized approach to Six Sigma process improvement All employees encouraged to improve own work processes by applying Six Sigma tools Simple steps to implement improvements – minimum of bureaucracy Accelerates knowledge sharing across the company Employees in some divisions link completed projects to cash and non-cash reward systems

18. 18 Corning Incorporated Values Toolkit Response to accelerated globalization Objective to equip managers with options for corporate Values education (focus on two- way communication, real- life scenarios, and leadership modeling) Best interventions use combination of “top-down/ bottoms up” approach)

19. 19 Corning Incorporated Summary: Characteristics of the New Workplace*  Emphasis on eliciting engagement, knowledge and ideas of employees  Decentralization of decision-making, downward location of discretion  Task flexibility for employees  No expectation of long-term employment *Katherine Stone

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