2. Contents
February 007
4 Industry Leadership
2007 is a critical year in our
progress toward industry
leadership. Find out where
we need to focus.
Our Vision
The Standard will lead the financial
services industry in integrity, expertise
and customer service.
Our Purpose
To help people achieve financial
security so they can confidently
pursue their dreams.
6 Company Updates 7 Mentoring
Editor
What progress have we made on the Two soon-to-be graduates of the
Mark Goldstein
Invesmart integration and California PEAK mentorship program discuss
Teachers Association preparations? how the program has benefited them. Senior Designer
Steve Ferrero
Writers
Kathy Born
Jennifer Floyd
Tami Matthews
Michael Tevlin
Photographers
Eric Coleman
Corin Dupree
Director of Creative Services
Will Carter
8 Change Management 10 SMI Employees Take the Stage
THIS IS WHY. Making money isn’t really about making
money. It’s about the retirement you can build with it. For more
than 70 years, The Standard has been trusted by companies to help
As The Standard continues to
their employees build financial futures worth waiting for. They
Performances help make customer
pick the dream and the time frame. Together, we strive to make it
happen. To find out how we’re redefining what a retirement plan
change, how can you develop your The Standard is produced by Standard
service training come alive.
should be, talk to a pension consultant at 877.805.1127.
INSURANCE
Insurance Company’s Corporate
ability to adapt to our constantly RETIREMENT
Communications Department,
changing work environment? INVESTMENTS ADVICE
1100 SW Sixth Ave., P7A, Portland,
OR 97204. Please send story
ideas, comments or suggestions to
magazine@standard.com or call
971.321.6039.
Recycle! When you’ve finished
dibs.
reading this magazine, please place
it in a newspaper recycling container.
The Standard is printed on recycled
paper with soy ink.
12 Brand in Action
The Standard February 007 STANDARD.COM 877.805.1127
RETIREMENT PLANS 401(k) 403(b) DEFINED BENEFIT PROFIT SHARING MONEY PURCHASE
Group variable annuity and group annuity contracts issued by Standard Insurance Company are distributed by StanCorp Equities, Inc., member NASD/SIPC, which may also provide brokerage services. Third
party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc, a registered investment advisor. Standard
Insurance Company, StanCorp Equities, Inc., Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations.
3. President’s View
Eric Parsons
Chairman, President and Chief Executive Officer
I
magine Possibilities is one of our newly stated company values, but what exactly
does this mean? Among other things, it’s a reminder to all of us to be open to
the enormous potential that can result from change. When we look around our
company and see changes happening, as we often do these days, we should try to
envision future success. While that sounds good in theory, in practice change can feel
unsettling, or worse.
I’ve long thought that those feelings just come with the territory. That belief was
challenged last month when I attended a presentation by the employees of StanCorp
Mortgage Investors. SMI has been a great customer service organization for a long,
long time. They also have been among the most aggressive areas of our company at
working to improve what they already do well. They’ve reached the point where they
recognize that change is not only good for their customers but also for themselves, and
it isn’t something to be feared.
Our new change management model, specifically designed to help teams address the
many facets of change, is starting to spread across the company. I’m excited about
the new model, and I encourage all of us to keep an open mind. When we choose
to embrace change, we enhance our own ability to shape it and almost certainly
strengthen our feeling of accomplishment.
The reality is that the most successful organizations not only adapt well to change, but
also are keenly focused on the critical few things they need to do well. The Standard
has a short list of organizational priorities for 2007 through 2009 that clarifies where
we absolutely need to excel in order to achieve our vision. Completing the Invesmart
integration and preparing our organization to take on the California Teachers
Association account top the list. Other things need to happen in a logical sequence
to move us closer to our leadership goals. That means investing with the long term
in mind, and the IT Strategic Solutions Program will help us with that. By phasing in
our technology enhancements, we’ll be able to improve customer service and reduce
unit costs almost simultaneously. The more efficient we are, the more resources we’ll
have to reinvest in technology that provides service our customers and prospective
customers value.
As a company, we are well-positioned for change. We’re small enough to be able to
implement new programs with relative speed but big enough to have the financial
resources to invest in new initiatives. Because our employees often wonder how they
can contribute to the vision, here’s what I say when asked: No matter what your job is,
keep an open mind when you see change coming and look for opportunities to jump in
and contribute your expertise and initiative.
The Standard February 007
4. It’s an appealing image, but continued
progress toward this vision requires that the
company focus on specific areas this year.
WhAT ArE ThE nExT STEPS?
If there was a mantra for 2007 at The
Standard, it would be focus. Focus on
customer service and cost reduction, on
integrating Invesmart and preparing to
take on the California Teachers Association
account, and on building our technology
capability. These critical steps toward
achieving our vision are what we need to
do this year, and our values tell us how to
do them. Our people provide the passion,
expertise and leadership to turn these goals
into reality.
The desire and need to serve our customers
better is the driving force behind our 2007
operational priorities: reducing unit costs
and improving customer service. Each of us
can make a difference in these two areas.
At the Forefront for 2007:
Unit costs are the costs associated with
activities such as getting a proposal out, a
mortgage loan underwritten, a claim paid,
Improving Service,
a 401(k) case set up. No process is perfect,
so there’s a good chance a process you work
with could be improved to make things
Reducing Costs run smoother, faster or with less waste.
Perhaps you’re aware of a better way. If so,
speak up! This is how most good process
Guided by our values, mission and purpose, improvements begin.
we’ll also focus on integrating Invesmart While it may not seem immediately obvious,
unit cost reductions go hand-in-hand with
and preparing for the CTA improving customer service.
T
“Our customers want accurate and easily
hey’re questions that have been The best and brightest prospective employees
accessible information and fair prices for
asked time and again the past few make us their first choice.
quality products,” Eric Parsons said when
years: How will we know when The
he addressed Quality Service Leaders in
Standard achieves industry leadership? What Cities where we have offices recognize
January. Making everyday transactions as
will industry leadership look like when we the value we bring to their communities
quick, as easy and as inexpensive as we can
get there? from both a business and a philanthropic
standpoint.
Imagine this: The year is 2014. Our customer
base is 50 million — and growing — because Investors are well rewarded for holding
people recognize our brand as synonymous our stock.
with expertise, integrity and top-flight
customer service. Our values are evident in both large-scale and
day-to-day decisions.
The Standard February 007
5. will give us more flexibility with pricing. It Developing more competitive pricing
•
also opens up more time to help customers for EB small cases. Small cases are a
with the things that are most important to valuable part of our business because
them. It comes down to continuing to deliver they diversify our risk and, with
on our promise to do what matters some producers, are a prerequisite
for customers. to winning large accounts. In the
small-case market we need to be
Among other things, this is all dependent on more competitive while recognizing
the strength of our information technology. that our value lies not exclusively in
That’s why IT is building a company-wide price, but also in our brand attributes
technology framework designed to address of personalized service, expertise,
multiple problems across the company, integrity, commitment and doing
instead of implementing “one-off” or things differently.
“point” solutions that solve one problem at
a time. In 2007, IT will begin building this Focusing on our immediate priorities
framework with an almost exclusive focus on doesn’t mean we won’t also be working
year, and more if we’re able to enroll more
Invesmart and CTA. The improvements put on long-term strategic priorities (see box
CTA members. Invesmart will improve
in place for these projects will then be used below). Looking into the future is imperative
our market position in the retirement
companywide. These are IT’s top priorities, because each year, 2014 grows nearer, and
plans business and help us meet our goal
and other approved initiatives will start later with it our goal of industry leadership.
of diversification. Our reputation and
in the year as IT resources become available. We will achieve it if we focus on our top
our brand hinge on these projects being priorities and are guided along the way by
executed well.
A FEW ProjECTS TAkE PrECEdEnCE our values, mission and purpose. S
If it sounds like the Invesmart and CTA
Two other projects also demand immediate
projects will get a lot of attention this year,
attention:
it’s because they will. These two projects
are critical to our future because they help
Understanding EB claims fluctuations
•
set the stage for future acquisitions and
and taking action if required. Higher-
large accounts.
than-expected claims led to an earnings
decline in 2006. Such fluctuations
are normal in our industry; in fact, a
lower-than-expected number of claims
contributed to our earnings boost in
late 2005. Additional analysis will help
us gain a better understanding of the
causes of fluctuations so we can address
them if needed.
2008 and beyond
Diversifying our earnings base through acquisitions — StanCorp Investment Advisers will
•
continue acquiring investment advisory firms. Other acquisitions are possible as well.
Extending our brand awareness — This year, that will involve focusing on customer first
•
impressions, such as our Web sites and telephone system.
Of course, there’s also the impact to our
Increasing our organizational capacity — Our expanded values and the Managing at The Standard
•
bottom line. The CTA account, which takes
program are examples of how we’ll enhance management and leadership skills, promote a culture of
effect in September, is our biggest ever in
innovation and readiness for change, focus our planning, execute crisply and reward results.
terms of premium — about $40 million a
The Standard February 007
6. Invesmart Integration Update
The Standard’s acquisition of Invesmart was finalized last July. New participant statements and enrollment materials are in
•
Since then, integration teams have been working in earnest to development now and will be introduced this summer with an
combine the two companies. Here are some recent developments: updated look and format.
A new StanCorp Financial Group subsidiary has been
• The first step toward developing uniform processes is nearly
•
formed. Standard Retirement Services includes many of complete — a comparison of all business processes within the
the employees who were formerly part of Invesmart and organization and creation of a gap analysis.
The Standard’s Retirement Plans business unit. All sales,
marketing and advisory employees now work for StanCorp All former Invesmart employees now have e-mail accounts at
•
Equities, Inc. The Standard and access to most system resources.
The sales forces of the two organizations merged and are
•
now selling The Standard’s trust and group annuity products.
We also merged our broker/dealer and registered investment
advisor organizations.
California Teachers Association Update
In September, The Standard will begin administering group life The CTA Marketing team hired its first team member —
•
and disability for the California Teachers Association. In terms Danielle Flagg, senior marketing analyst. The CTA marketing
of premium, it will be the biggest case in the company’s history. manager position is also being recruited.
Here’s what’s happening with the preparations:
Nicole Steuch, Human Resources associate business partner,
•
• John Granato, CTA general manager, and Cristi Dayton, has been working closely with the CTA’s leadership team
director of CTA benefits and services, are actively recruiting since before the case was sold. Mark Johnson, senior staffing
for key leadership positions on the 75-member CTA team, partner, joined the project last fall to coordinate and execute
including CTA sales manager and supervisor positions for the the team’s staffing plan. To ensure focus on CTA as a unique
Operations Call Center and Member Services teams. hiring project, HR has contracted with Monica Rotzien to act
as a program manager and recruiter on the project. She will
In addition to essential functional and behavioral skills, partner directly with Nicole, Mark and CTA’s leadership.
candidates are being evaluated on their abilities as
entrepreneurs, innovators, change management leaders and • Once the entire CTA team is in place, the project plan calls
champions for delivering an exceptional customer for moving the team to the new building currently under
experience. Once hired, each leader will begin recruiting his construction at the Tanasbourne Home Office in Hillsboro,
or her respective teams. Ore. The 72,000-square-foot building will have the capacity to
house 300-400 employees.
The Standard February 007
7. First PEAK
Participants Reach
the Summit
Two soon-to-be graduates
of the mentoring program
discuss how it worked for them
Brian Leet, sales training and development consultant in Individual DI Sales and
Marketing, said his PEAK mentor, Ellen Steel, taught him the importance of
A
adaptability to change. Ellen, vice president of Employee Benefits Operations, said she
participated in the program because of a responsibility to help train the next generation
s The Standard continues to expand and diversify, leadership
of leaders.
ability at all levels in the company becomes increasingly
important.
Ellen: “Brian takes his responsibilities as a mentee seriously. I sit back
In 2005, a group of employees participating in our Advanced
and talk with him, coach him, but he does all the work, including
Leadership Program recognized this and proposed an internal
setting up the meetings.”
mentoring program to nurture people from within our own ranks
and help them become the leaders of the future. The Organization
What are some of the most significant things you’ve learned as
Development Center (ODC) took it from there, and in January 2006,
a mentee?
the PEAK (Performance, Excellence, Achievement, Knowledge)
Brian: “At first I didn’t know what to make of the shift in my
program welcomed its first participants.
responsibilities. Ellen emphasized the importance of being adaptable
because change is constant. I’ve also enjoyed the opportunity to learn
Last year, PEAK ran as a pilot program, seeking 30 members to begin
about the company from someone who works in a different division
cross-divisional mentor/mentee relationships. However, due to the
and is well-respected.”
volume and quality of participants, the ODC and the management
committee ultimately agreed to accommodate 88 people. This
Why did you want to participate as a mentor?
March, 42 pairs of mentors and mentees graduate, including 13 pairs
Ellen: “I feel that I have a responsibility to help prepare a new
who are participating from our field and regional offices.
generation of leaders.”
Brian Leet, sales training and development consultant in Individual
What have you learned about coaching that you didn’t know before?
Disability Insurance Sales and Marketing, and his mentor, Ellen Steel,
Ellen: “That many of the challenges people face are universal, no
vice president of Employee Benefits Operations, recently discussed
matter where in the company they are, so the coaching skills you
how and why the PEAK Mentoring Program worked for them.
acquire in your department may be applicable in other departments,
Why do the two of you click? even across business units.”
Brian: “For one, we’re both going through changes within the
What were some of the hurdles you faced?
company. Shortly after Ellen and I started meeting, I was assigned
Brian: “The time spent understanding how things work in Ellen’s
to be an acting supervisor for a team outside my department. At
area of the company was a bit of a challenge. With that said, I
the same time, Ellen had a number of changes going on in her
personally haven’t encountered too many challenges that we haven’t
department. We’ve been able to use real-life experiences. And even
been able to overcome through communication, and I look at Ellen
though she’s in a different business unit, she’s passed on to me a lot
as someone in the company I can really trust.” S
of wisdom from her experiences during 24 years with the company.”
7
The Standard February 007
8. Change Management
earnin
H
elen Bibb has the smoothest transition she’s ever
L
some advice experienced. Helen credits this
gt
for managing improvement to skills and tools
hanges
change: communicate she discovered in a workshop
o roll
early and often. in September, part of a new
companywide effort focused
The disability on change management.
benefits supervisor wi
c
is currently running “The change management we’re
t h t he
Consultants in training: Isaac Doyle, supervisor of an effort to redefine talking about here is the people
corporate imaging services in Corporate Administration; the role of the processor side of change,” says Jane Paligo,
Sekhar Chatterjee, senior project manager in the IT
position, a key frontline support for a performance consultant with The
Project Office; and Tony Petrillo, project manager in the
benefits analysts. She’s been involved in Standard’s Organization Development
IT Project Office look on as colleagues present their
spearheading change before, but this is Center. Jane is leading the change
change management plan.
The Standard February 007
9. integrating a newly acquired company,
“
implementing a new process or technology,
You have to communicate or reorganizing a business or service unit,
the volume of change is growing and
to ensure that people the pace is quickening to meet customer
demands and competitive challenges. And,
as our 2006 employee survey indicated,
have time to process the
there’s room for improvement in how we
” manage change.
idea of the change.
So far, more than 60 employees have
Helen Bibb earned change consultant certificates
disability benefits supervisor
— the cornerstone of the program —
and they in turn help project and line
managers implement changes. The change
management program, an initiative
consultants include process-improvement
designed to develop our ability to adapt
consultants, project managers,
to change and master transitions. The
performance consultants, human resources
program includes online resources and
business partners and business managers,
tools available to all employees, as well
all of whom become deeply skilled in the
as trained employees who can help guide
change management methodology.
teams through changes.
At one-day workshops facilitated by the
“People are the factor that makes or
consultants, employees get away from day-
breaks a change, so the ways we help them Laura Graham, lead systems analyst in IT Business
to-day operations and learn to incorporate
adapt to it are critical to our success,” Solutions, works with her team on its change
management plan presentation.
strategies for change into project plans
Jane says.
from the beginning. The program also
provides a way for the consultants to share
The workshop Helen attended was led
Tools for independent learning
experiences and learn from each other.
by Nicole Steuch, an associate business
“Having those of us responsible for change
partner in Human Resources and one
initiatives go through the certification class
of the first employees to be certified as Everyone can learn to better manage change
creates a community of change consultants
a change management consultant. One by using the material on StandardNet’s Change
that can share success stories, questions or
of the things Nikki showed Helen in Management site.
concerns,” says Nikki.
the workshop was how to put together
a communication plan to explain the Online tools include:
The program is so new that it’s too early
change and keep employees updated. • change management overview and best
to gauge results, but anecdotal evidence practices
is encouraging. Helen says the tools
“You have to communicate to ensure that • downloadable change management
have “absolutely” helped. “I’ve been
people have time to process the idea of the templates and assessments
involved in new projects before, and I’ve
change,” Helen says. “The plan helped me • troubleshooting guides for common
had more positive feedback, and more
think about who the audiences would be, problems
understanding, in communicating this
how to deliver the message to them, who • guidance for specific change management
project than with the other projects,”
the primary stakeholders would be, how roles such as project managers, sponsors
she said
their communication message should be and project teams
different and why it’s important to ensure • online learning
“For many people, change can seem
that you have the right sponsor for the
sudden, unnecessary, uncertain,” Jane says.
change — a strong leader who buys into
“But with this program, we can reduce that.
and participates in the communication.”
Find it on standardnet
Change management has been proven to
Change Management
help organizations succeed in achieving
One thing is certain at The Standard as
home.standard.com/pres_staff/ed/
their initiative’s business objectives.” S
we strive toward industry leadership:
changemgmt/index.html
Change will continue. Whether it’s
The Standard February 007
10. “As we were looking at the case studies, we thought
‘Wouldn’t it be great if we had case studies related
to our business?’ ” said Mark Fisher, vice president
and managing director of SMI. “How much more
meaningful would it be to translate the course material
to commercial real estate lending?”
And so the case study assignment was born. Teams
of employees from all parts of SMI were challenged
to create case studies based on their own business to
illustrate the principles they had learned in one of the
customer service training courses. They would present
their case studies to each other, and just to make it
exciting, they would compete on stage at PCC in front of
judges — Eric Parsons, chairman, president and CEO;
Performances bring customer and Kim Ledbetter, senior vice president of the Asset
service case studies to life Management Group.
discovery through training
A
It can be tough to remember everything you learn in a training
lthough the theater at Portland Community session. By asking employees to create case studies based on
College’s Rock Creek campus buzzed with their own work, SMI supervisors helped ensure that the
anticipation, this was no ordinary dramatic lessons would stick. Here’s what a few employees took away
performance. This was fierce competition — among from the experience:
employees from StanCorp Mortgage Investors.
Astoria Howard
When did taking to the stage become part of the job loan closing supervisor:
description at SMI? The story began last year, when SMI “The simplest things can dazzle a customer; we just need to
employees participated in two customer service training take the time to get to know our customers’ needs.”
courses offered by the Organization Development Center.
Reaching for Stellar Service and Dazzling Your Customers use Nichole Martin
case studies — real-life examples — in their curricula. mortgage loan servicer:
“We began to realize just how large a part we all play in our
borrowers’ lives and in the lives of each other. Through these
sessions we understood better how our roles and various job
responsibilities affect one another. It was valuable to hear about
the life of a loan through the eyes of a different department.”
Holly Nakada
senior mortgage loan service specialist:
“I want to be aware of opportunities to make someone’s day. It
could make a huge difference to the person on the other end of
the phone.”
Scott Tumbleson
Alex Do, loan participation mortgage loan specialist:
specialist in SMI Investment
“I think sometimes we are so caught up in doing our jobs we
Administration, and Marguerite
don’t realize we are providing the service that differentiates us
Schmidt, compliance
from our competition. The case studies allowed us to step back
specialist in SMI Investment
Administration, make and acknowledge the service employees provide daily.”
convincing newlyweds in their
case study, Life’s a Beach.
10 The Standard February 007
11. Customer service training
available to all
Delivering exceptional customer service is a
priority for The Standard and is crucial to our
vision of industry leadership. The following
classes can be customized for intact teams:
Reaching For Stellar Service
This class, with online learning and classroom-
based practice components, explores the value
of stellar service and the service provider’s role
in achieving it.
Dazzling Your Customers
This class enhances a team’s ability to make
customers feel valued, thereby creating
experiences so surprisingly positive that
customers will tell others about them and will
build their relationships with the organization.
Prerequisite: Completion of Reaching for
Stellar Service.
Healing Your Customer Relationships
This class will help teams develop skills to
assist customers who are concerned, angry or
upset after a service breakdown. Prerequisite:
Completion of Reaching for Stellar Service.
Caleb Coffman, mortgage loan analyst in SMI Real Estate Finance, plays a gas station tycoon in his team’s case
study, Scott Gets Gas: A Case Study on the Phillips Oil Transaction. ServiceMentor
This class is available for teams and individuals
and is designed to achieve measurable results.
According to Mark, the project was designed One team took the stage to perform a
The series prepares people with customer
to improve the quality of learning. “It case study called “SMI Superheroes.” They
contact to take control of the call, quickly and
helped us make connections between the depicted the behind-the-scenes teamwork
clearly identify what customers really want and
training and the real world,” he said. “It — and scrambling — that goes into closing
offer solutions.
reinforced and promoted behavior that’s a loan quickly for a customer. They poked
focused on delivering exceptional customer fun at themselves and their co-workers, and
service, which Eric has emphasized as an in the end they won the competition. It’s the If you’re interested in offering one of these
organizational priority for The Standard.” win for our customers, though, that matters courses to your team, contact one of these
most of all. S performance consultants in the Organization
Development Center:
Cathy Miller, at cmiller4 or ext. 1
•
Jan Spradlin, at jspradli or ext. 7
•
BACk CovEr
“Dibs” is a new ad designed to build name and brand awareness for our retirement plans business. The ad is aimed at plan sponsors, brokers
and other retirement plan intermediaries. It will run in Investment Advisor in February, March, April, August, September and October;
PLANSPONSOR magazine in February through December; and planadviser, a quarterly sister publication of PLANSPONSOR, in April, July
and October.
11
The Standard February 007
12. THIS IS WHY. Making money isn’t really about making
money. It’s about the retirement you can build with it. For more
than 70 years, The Standard has been trusted by companies to help
their employees build financial futures worth waiting for. They
pick the dream and the time frame. Together, we strive to make it
happen. To find out how we’re redefining what a retirement plan
should be, talk to a pension consultant at 877.805.1127.
INSURANCE
RETIREMENT
INVESTMENTS ADVICE
dibs.
STANDARD.COM 877.805.1127
RETIREMENT PLANS 401(k) 403(b) DEFINED BENEFIT PROFIT SHARING MONEY PURCHASE
Group variable annuity and group annuity contracts issued by Standard Insurance Company are distributed by StanCorp Equities, Inc., member NASD/SIPC, which may also provide brokerage services. Third
party administrative services are provided by Standard Retirement Services, Inc. Investment advisory services are provided by StanCorp Investment Advisers, Inc, a registered investment advisor. Standard
Insurance Company, StanCorp Equities, Inc., Standard Retirement Services, Inc., and StanCorp Investment Advisers, Inc. are subsidiaries of StanCorp Financial Group, Inc. and all are Oregon corporations.
