Caterpillar – Building Construction Products Division
Ovation Award:
Workplace Flexibility
1
A History of Progress
1960-1970: Rapid global expansion
1925: Holt & Best
companies merge
into Caterpillar
Tractor Co.
1925
$13.8
Million
1930
$45.4
Million
1931: First diesel
track-type tractor
1940
$73.1
Million
2001: Joined World
Business Council for
Sustainable Development
1950
$337.3
Million
1960
$716
Million
1942: Cat
machines serve
in World War II
1970
$2.1
Billion
1980*
$8.6
Billion
1990
$11.4
Billion
1986: Factory modernization
2000
$20.2
Billion
2010
2011
$42.5
Billion
2011: Acquired
Bucyrus International, Inc.
* In 1978, the company began reporting Sales & Revenues
2
A Global Reach

Global reach and presence is
unmatched in the industry

Serve customers in more than 180
countries around the globe

More than half of our sales are outside
the United States

Manufacturing, marketing, logistics,
service, R&D and related facilities
along with our dealer locations total
more than 500 locations worldwide

Fortune 100 company & #27 on
“World’s Most Admired” list

#12 on Forbes “Most Reputable Big
Companies” list
• 2011 Sales & Revenues: $60 billion
• 2011 Profit: $4.9 billion
Both all time records!
3
A Broad Range of Products and Industries
4
A Proactive Community Member
Caterpillar has been named to the Dow Jones Sustainability
Index (DSSI) for 11 consecutive years! Examples:
 Vision Zero safety culture
 The Caterpillar Foundation: “Making Sustainable Progress Possible in our
Communities” worldwide via investments in:
– Sustainable Humanity
(disaster relief, school feeding
program, Charity Water)
– Sustainable Education
(Junior Achievement Worldwide,
First Robotics)
– Sustainable Environment
(Great Rivers Partnership)
www.caterpillar.com/Foundation
5
Critical to Caterpillar’s Success
A leading
exporter from the U.S.
and North Carolina
Poised to meet the world’s
growing infrastructure needs
6
Building Construction Products (BCP)
• 7 product families
• 70 models
• Core, CCE and BHL
Skid Steer/Multi Terrain Loaders
Sanford, NC
Mini Hydraulic Excavator*
UK (Leicester), Japan, China
Backhoe Loader
UK (Leicester), Brazil, India
Compact Wheel Loader
UK (Leicester)
Small Wheel Loader
Clayton, NC, Brazil,
India, Belgium,
Japan
Telehandler
Alliance with JLG
Small Track Type Tractor*
Japan
* New facility announced to produce these in N. America
7
BCP – North Carolina Summary
 BCP is a global division of Caterpillar
– Several thousand employees, 7 manufacturing facilities, support employees in
many other locations
– Integrated, end-to-end business that includes its own Marketing & Distribution,
Purchasing & Supply Chain, Finance, HR and Product & Systems design teams
 Approximately 1,000 North Carolina employees, mostly in the Triangle region
(Cary, Sanford, Clayton)
– Cary – Administrative, global headquarters for BCP
– Clayton Plant – major source for many Caterpillar SWL
– Clayton Product Development Center – serves as a testing grounds for BCP
product and home of an integrated engineering systems team
– Sanford Plant – is the global source for all Caterpillar SSL, MTL, CTL
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Why Workplace Flexibility?
 Attraction of new employees
 Engagement of current employees
 Dolly Parton doesn’t work at Caterpillar!
– Integral part of the “new” Total Rewards
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Market Data

North Carolina “Family Friendly 50” honors the companies that excel in their commitment to Family
Friendly policies (Carolina Parenting, Inc.). 2010 data:
–
Bank of America, Bayer, Blue Cross & Blue Shield, CISCO, Ernst & Young, Hewitt Associates, Novo
Nordisk, Progress Energy, Rex Healthcare, SAS, Caterpillar?
–
96% offer Flextime and Part-time Work options
–
94% offer Telecommuting
–
78% offer Compressed Work Week
–
52% offer Job Sharing options

Gen Ys want a rewards remix, according to "Bookend Generations," a study from the Center for
Work-Life Policy. Instead of the traditional plums of prestigious title, powerful position, and
concomitant compensation, they value challenging and diverse job opportunities, stimulating
colleagues, a well-designed communal workspace, and flexible work options, with 89% of Ys
saying flexible work options are important consideration in choosing an employer. "Millenials view
work-life balance as their right," observes Ron Alsop in The Trophy Kids Grow Up. To obtain
that balance, they are becoming "agents of change, pushing flexibility to the top of the
workplace agenda.“

And so on……
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Market Data
Chartered Institute of Personnel & Development's survey report (UK):

“Seventy per cent of survey respondents believe that implementing flexible working
practices has a positive effect on employee motivation. Over half of organizations feel that
recruitment has benefited from the implementation of flexible working practices.”

“Work–life balance is identified as one of those HR policies or practices that is particularly
influential on employee attitudes. Where this influence is positive, employees are more likely
to exhibit ‘discretionary behavior’ or to ‘go the extra mile’ for their organization.”

“The beneficial effects of flexible working on managing absence levels were noted by almost
one-quarter of survey respondents (24%). The CIPD working party made the observation
that when, for example, individuals are equipped and able to work from home, they may feel
able to do some work on occasions when a long commute would not be possible. One
member of the working party commented that, in her organization, responsibility for devising
the staffing roster has been handed over from the manager to team members. This has
contributed to an improvement in absence levels (for example, employees were more easily
able to swap shifts when necessary).”
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Flexible Work Arrangements –
Value Proposition
FWA’s included as
A Total Reward!
BCP is committed to attracting and retaining a high performance workforce and creating a more
diverse and inclusive culture, which is needed to achieve our Vision 2020 goals and beyond…
Benefits of offering FWA:

Helps retain quality employees

Improves engagement

Can increase employee productivity

Provides a recruitment edge – it is an expectation for some talent

Creates a non-traditional pool of qualified candidates

Improves tardiness and absenteeism

Helps alleviate traffic congestion & air pollution and lowers fuel expenses

Enables employees to handle ongoing or unexpected non work-related responsibilities while
fulfilling their job responsibilities

Promotes BCP’s results driven culture (Accountable for Results)
B U I L D I N G
C O N S T R U C T I O N
P R O D U C T S
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Flexible Work Arrangements – Examples


Telecommuting (periodic “work from home” or full-time)
–
Performing work in locations other than the standard office site
–
Telecommuting agreement needs to be made for full-time
–
Periodic telecommuting - only manager agreement is necessary
Flextime
–

Work schedules that allow employees to choose their starting and ending times within limits set by management
Compressed Work Schedule
–
Work schedule that allows employees to complete their regularly scheduled work in less than the usual amount
of days
–
Typically is most applicable to production support employees in a compressed work schedule
production environment

Part Time

Job Sharing
–

Two part time employees share responsibility of one job
Unpaid Time Off
B U I L D I N G
C O N S T R U C T I O N
P R O D U C T S
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Selling the Value
 Leadership buy-in
 Employee pull
 Real examples of it working
– Ideally, recognized top talent
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Implementation
 Leader-delivered announcement; HR as support
 Re-enforced & integrated into regular Total Rewards
and Diversity & Inclusion communications
 Personal demonstration
 Ask “why not”?
15
Results
 Employee Opinion Survey scores and comments reflect positive
impact of workplace flexibility efforts
 Usage is contagious!
 Carolina Parent’s “Family Friendly 50 Companies” in 2011
 Productivity!
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Specific Employee Comments – Positive

“Introducing flexible working hours policy and working from home policy has made positive impact on work environment.”

“For me work life balance has improved due to the fact that there is a lot more flexibility in the hours you can work and
also the ability to work from home.”

“I feel the changes implemented by our workgroup's EOS teams and management in the last two years, such as flexible
working, have addressed some of my colleagues issues and concerns resulting in a more relaxed and pleasant working
environment.”

“I am very proud of our group and the improvements that have been made in the past year. The group has adopted a
more flexible work schedule, which has improved employee moral and has not affected the high level of work done.”

“Flexible work schedule is now being promoted instead of allowed. The ability to take two weeks off unpaid is also
a nice option.”

“Overall, personal engagement has been higher than last year. Contributors to this have been: Flexible working
arrangements…”

“I appreciate the opportunities and benefits that BCP has worked to make available for their employees. From the
Leadership Summit and having the chance to interact with other leaders from across the division, to benefits such as
flexible work schedules and the option to take two weeks per year without pay, these add to the many reasons that make
BCP a great place to work.”

“I am excited about the Flexible Work Arrangements and hope to see those implemented widely within HR. It feels as if
the HR team works the most hours of any department within BCP at times. We're in a support role and tend to put
ourselves last, but it's also important we take care of ourselves so we're at our best for our customers.”
17
Specific Employee Comments – Opportunities
 “Need to continue the discussions & progress towards rolling out a flexible
work schedule policy.”
 “Still require more focus on work life balance and flexible working and core
hours, and for management to be actively promoting it - is seen by some but
not all.”
 “I encourage our supervisors to talk to their employees and see if an
alternative work schedule could help improve their work life balance and
therefore their overall happiness with CAT and life in general.”
 “Flexible time – (We need) Faster computers”
18
Lessons Learned & Next Steps
 Implementation is not a one-time event
 Resistance/reluctance should be expected
 You’re never there…
19
Questions?
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