Plexus Consulting Group    Success Stories

Consumer Electronics Association (CEA)


Consumer Electronics Association
2500 Wilson Boulevard
Arlington, VA 22201-3834
703-907-7600
[www.ce.org]
Contact: Gary J. Shapiro, President and CEO


CEO: Gary J. Shapiro
Budget: $38 Million
Staff Size: 110




Plexus Consulting Group, LLC
1620 Eye Street, NW
Suite 210
Washington, DC 20006
Phone:  202-785-8940
Fax:      202-785-8949
Email:   info@plexusconsulting.com


Vital Stats:

The Consumer Electronics Association's membership includes 680 leading consumer technology companies.

The Challenge | The Solution | The Process | Unintended Consequences | Unforseen Benefits | Measurements & Results | Lessons Learned

 

The Challenge

How "to get and keep good people" in a highly competitive market?

Since 1990, CEA has grown from 80-860 members and 40-100 employees. As the association at the forefront of the high-tech consumer electronics industry, it routinely competes with local for-profit technology companies to hire and retain the most talented employees in the field. For CEA president Gary Shapiro, workforce development is a top priority. How can a nonprofit organization compete with lucrative companies to attract and retain top employees?

The Solution

To create a corporate culture that empowers employees, fosters creativity, demands accountability and rewards success.

Four years ago, with the full support of the Board of Directors, CEA began to institute radical human resources policy changes to create a corporate culture that epitomizes "quality of life" in practice as well as on paper. Since it established a policy of incentive compensation, CEA has created a wide variety of "quality of life" culture incentives that continue to motivate employees to high levels of achievement.

The Process

"If you have a good idea, you will probably have the opportunity to implement it."

CEA's top priority is to foster a corporate culture that "makes a difference." Establishing quality internal communication and candid, timely feedback cycles are considered a top priority, and CEA is committed to hiring and supporting employees who share the association's sense of excitement about the industry and its mission of "making the world a better place to live."

Part process and part philosophy, CEA's new workplace model has evolved as an incremental, continuous improvement exercise, with incentives extended to all staff. Since CEA's board and volunteer leadership are entrepreneurs, they know how to reward entrepreneurial behavior. CEA has a "smart board" that sets the overall strategic direction but avoids micro-managing the enterprise. According to Shapiro, a "good leader doesn't just decide. CEA has strong groups of staff that are empowered to decide 99 percent of the time and usually get it right. People have to know they can fail and a leader has to set the tone for the organization." Shapiro seconds Hewlett-Packard CEO Carly Fiorini's view that leadership is not just about shareholder value but about creating a better workplace.

In developing its programs, CEA management sought input from private sector experts about what works. At the outset, CEA's interview process is geared toward evaluating the degree to which potential hires possess self-motivation and would welcome the opportunity of working within a culture that encourages and rewards it. CEA goes through several rounds of new hire interviews to make sure that every prospective employee fits within the culture. Once they are hired, CEA encourages employees to pursue public speaking and to become active in other organizations. Sales incentives are encouraged along with a team approach to sales goal setting.

Of the 5 goals that CEA's Board approved for 2000, based on the input of employees surveyed via e-mail, Quality of Work Life remains the key to achieving each one:

  • International CES: Position CES (Consumer Electronics Show) as THE International Show for critical emerging consumer technologies
  • Membership: Position CEA as the premier trade association representing companies involved in all consumer electronics product categories, including critical emerging technologies
  • Entrepreneurial Spirit: Promote CEA as a pro-growth organization
  • Growth of New Technologies: Position CEA as the premier industry organization
  • Quality of Work Life: Be recognized as a top employer in the Washington, DC area

Currently, CEA's standard menu of benefits and perks to achieve the association's Quality of Work Life goal include:

  • Medical Care: Choice of two plans. Employee pays either $4.23 per pay period for single or $11.31 per pay period for family coverage
  • Retiree & Spouse Health Benefits at COBRA rates to age 65
  • Flexible Spending Accounts: Employees have the option to defer up to $5,000 per year of pre-tax income for reimbursement of eligible out-of-pocket medical, dental and dependent care expenses
  • Term Life/Additional Life/Accidental Death & Dismemberment InsuranceTravel Insurance for $100,000 with up to $2,500 for medical payments
  • Disability Insurance including short-term, long-term, workers' compensation
  • Cash Balance Pension Plan that guaranteed at a 6% annual rate
  • 401K Salary Deferral Plan
  • Banking Services including direct deposit and credit union with Washington Telephone Federal Credit Union
  • INOVA Employee Assistance Program: Employees receive free and confidential family and mental health counseling, financial counseling, retirement planning, legal counseling, and dependent-care referral assistance
  • Pre-paid Legal Services through Legal Resources LegalCare Plan, which covers attorney's fees via monthly payroll deductions
  • MetroChek Subsidy Program: Full-time employees are eligible for up to $65 a month in Metro fare
  • Tuition Assistance Program: 75 percent tuition reimbursement up to $5,000 each calendar year for job-related courses after one year of service in good standing.
  • On-site Exercise Facility
  • Gold's Gym Corporate Membership
  • Causal Dress Policy which includes a five-day a week casual dress schedule
  • Parking
  • Employee Referral Program which provides bonuses for referrals hired for full-time employment

Since the initial development of these benefit programs, CEA has also added the following:

  • Palm Pilot incentive program for new employees
  • Enhanced 401 K plan
  • CEA invests $34,000/year in a "total fitness" Boot Camp Friday program
  • Meeting training program focused on conducting, facilitating and building consensus to achieve successful meeting outcomes
  • Project management training
  • Matching charitable contributions of up to $500 per year to an employee's charity of choice. If 5 or more employees share the same charitable goals, CEA will match $300 per employee


Moreover, telecommuting is common throughout the organization, CEA offers 35-hour weeks and flex-time along with compressed workweeks during the summer, which give employees the option of working 4 days "on" one day "off".

Unforeseen Benefits

In conducting an e-mail survey of employees to gather their thoughts for the 2000 plan, CEA tapped into a core competency, research. In fact, CEA built a handy million-dollar market research business on the side and requests for e-mail surveys are pouring in.

Measurements & Results

"Laughter in the halls is a sign of a good workplace."

To achieve recognition as a top employer in the Washington, DC area, CEA set the following measures for 2000:

  • Retain 90 percent of staff excluding involuntary departures and departures for lifestyle changes
  • Implement top recommendations of recognition committee in 1Q 2000
  • Foster communication between departments, including development of Intranet, CEA orientation plan and cross-department teams
  • Invest in and implement training to support the Key Success Factors


CEA has accomplished its workplace goals according to many measures, including "whether conversations are focused on the past or the future." According to CEO Gary Shapiro, an organization in an industry that thrives on change cannot dwell on the past. Since 1990, CEA has grown from 80-680 members and boosted its headquarters staff from 40 to 110 employees. Burgeoning revenues and increased surpluses also bear witness to the association's success.

To illustrate one success story, CEA's new workplace model has helped the association to achieve its goals with regard to the Consumer Electronics Show. CEA takes pride in the fact that CES is the number one show in its class, drawing 125,000 attendees each year. To support CES, interdepartmental staff committees work together and most employees attend the show each year. In particular, CEA's meeting training program has contributed to the show's success. CEA continues to dominate for-profit trade show companies who routinely attempt to poach CEA's employees. For example, while the association can't offer equity, it does offer employees unmatched visibility by allowing them to serve as industry spokespeople. To encourage this, CEA hires media training consultants on a regular basis to coach employees in public speaking and business writing.

 

Lessons Learned

While CEA's workplace model may be considered beyond leading-edge for many associations, there is still room for fine-tuning. If CEA had to reinvent its new workplace model from scratch, it would have implemented a fitness program much earlier. While an open door policy is 'a given' throughout the organization and senior staff meeting minutes are routinely distributed to all employees, internal communication still remains a challenge, perhaps due to the association's size and the scope of its activities. For example, employees do not appear to fully understand or appreciate the time and financial resources that went into designing the pension program.

"Technology is change so we are change-oriented by definition."

As the leading association in a rapidly changing industry, CEA has encountered no resistance in implementing cutting-edge programs to establish a flexible yet accountable workplace culture. While the will to develop a leading-edge workplace culture to the extent that CEA has managed to do this is critical, the means are also essential. The association's financial strength is a major plus and a key enabler behind its diverse and overwhelming array of work-life benefits.