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CASE STUDY
BMW Empowers Employees While Managing Increased Healthcare Costs




Executive Summary
Faced with healthcare costs that were increasing more than                Organization
10% a year, BMW of North America wanted to inform their                   BMW Manufacturing
employees of how those costs were affecting the BMW company,              Corporation of North America
and consequently BMW employees. Projections helped BMW
management communicate with their employees about ways to                 Solution Implmented
manage healthcare costs that would benefit the employees as               Fully Custom Video to explain
well as the company. BMW implemented a program that not only              benefit future benefit plans,
cut costs but helped employees to become better healthcare                featuring the VP of Human
consumers. By using a member of upper management as a                     Resources as a narrator.
narrator, who was straightforward and open about changes BMW
would have to make to adjust to rising costs, the video proved to
                                                                          Benefits
be credible and effective in communicating with employees.
                                                                          • Positive message about
                                                                          company’s response to
About BMW Manufacturing Corporation
                                                                          healthcare crisis
In 1992, BMW announced that it would build a manufacturing
facility in the United States to strengthen its international
                                                                          • Up-to-date information about
production system. The location, a 1,150-acre site in Spartanburg
                                                                          the rising costs of healthcare
County, South Carolina, remains the only plant located in the US,
                                                                          provided to all employees
and now serves as an integral part in the company’s five-plant
production network. BMW builds some of the world’s finest luxury
                                                                          • Consistent explanation
performance vehicles, and unlike many other automobile factories,
                                                                          of the new benefit plans,
all of the manufacturing processes in the South Carolina facility
                                                                          including steps for employees
are under one roof, creating an open communications environment
                                                                          to become better healthcare
that enhances the focus on quality.
                                                                          consumers
Benefits Crisis                                                           • Employees and their families
BMW of North America, like so many companies, needed to                   informed about choices they
address the problem of rising health care costs. Healthcare costs         would have in their health
were becoming a dangerously large part of their operating budget,         benefits coverage
and they needed to develop a plan to prevent these costs from
interfering with their business success. BMW management wanted
to keep their employees informed of changes taking place, and
also to enlist the support of the employees in the installation of the
new plans.


                                                                         www.projectionsinc.com
CASE STUDY
BMW Empowers Employees While Managing Increased Healthcare Costs

 The Right Approach
 To communicate the information with employees, Projections
 worked with BMW to create a custom video that would help BMW
 employees understand, believe, and accept all the challenges
 facing the company. The underlying reasons for the national
 healthcare crisis were explained, and BMW stressed how they
 could manage rising healthcare costs by working together. BMW
 utilized unique solutions to not only lower costs but to enable     Projections
 employees to become better health care consumers.
                                                                     Projections is arguably the
 New programs, such as an on-site pharmacy, flexible benefit plan,   foremost provider of employee
 and an emphasis on prevention (including a full-service family      communication resources to
 medical clinic), were being planned. These changes would not        North American companies.
 only lower costs but benefit the employees. BMW also reassured
 their employees that no cost-shifting would take place in the       With capabilities ranging from
 upcoming year, and the employees would be informed in a timely      custom video to websites
 manner of any impending changes.                                    and interactive eLearning,
                                                                     Projections has been serving
 Communication Helped Employees Feel Empowered                       the communication needs of
 Because BMW took a proactive approach to educate their              companies large and small
 employees before the changes took place, the employees              since 1979 by providing all
 could have a part in the transition and therefore be part of the    services from consulting
 solution. By using the Spartanburg VP of Human Resources as         to scriptwriting, producing,
 a narrator, the video showed important information was being        editing, graphic design and
 communicated to them in a straight-forward, credible fashion, and   more in-house.
 that management trusted the employees to take responsibility in
 the choices about their health.                                     Over the last 30 years,
                                                                     Projections has crafted the
                                                                     right message in the right
                                                                     medium for thousands of
                                                                     corporations and millions of
                                                                     employees.




                                                                     www.projectionsinc.com

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BMW Empowers Employees While Managing Increased Healthcare Costs

  • 1. CASE STUDY BMW Empowers Employees While Managing Increased Healthcare Costs Executive Summary Faced with healthcare costs that were increasing more than Organization 10% a year, BMW of North America wanted to inform their BMW Manufacturing employees of how those costs were affecting the BMW company, Corporation of North America and consequently BMW employees. Projections helped BMW management communicate with their employees about ways to Solution Implmented manage healthcare costs that would benefit the employees as Fully Custom Video to explain well as the company. BMW implemented a program that not only benefit future benefit plans, cut costs but helped employees to become better healthcare featuring the VP of Human consumers. By using a member of upper management as a Resources as a narrator. narrator, who was straightforward and open about changes BMW would have to make to adjust to rising costs, the video proved to Benefits be credible and effective in communicating with employees. • Positive message about company’s response to About BMW Manufacturing Corporation healthcare crisis In 1992, BMW announced that it would build a manufacturing facility in the United States to strengthen its international • Up-to-date information about production system. The location, a 1,150-acre site in Spartanburg the rising costs of healthcare County, South Carolina, remains the only plant located in the US, provided to all employees and now serves as an integral part in the company’s five-plant production network. BMW builds some of the world’s finest luxury • Consistent explanation performance vehicles, and unlike many other automobile factories, of the new benefit plans, all of the manufacturing processes in the South Carolina facility including steps for employees are under one roof, creating an open communications environment to become better healthcare that enhances the focus on quality. consumers Benefits Crisis • Employees and their families BMW of North America, like so many companies, needed to informed about choices they address the problem of rising health care costs. Healthcare costs would have in their health were becoming a dangerously large part of their operating budget, benefits coverage and they needed to develop a plan to prevent these costs from interfering with their business success. BMW management wanted to keep their employees informed of changes taking place, and also to enlist the support of the employees in the installation of the new plans. www.projectionsinc.com
  • 2. CASE STUDY BMW Empowers Employees While Managing Increased Healthcare Costs The Right Approach To communicate the information with employees, Projections worked with BMW to create a custom video that would help BMW employees understand, believe, and accept all the challenges facing the company. The underlying reasons for the national healthcare crisis were explained, and BMW stressed how they could manage rising healthcare costs by working together. BMW utilized unique solutions to not only lower costs but to enable Projections employees to become better health care consumers. Projections is arguably the New programs, such as an on-site pharmacy, flexible benefit plan, foremost provider of employee and an emphasis on prevention (including a full-service family communication resources to medical clinic), were being planned. These changes would not North American companies. only lower costs but benefit the employees. BMW also reassured their employees that no cost-shifting would take place in the With capabilities ranging from upcoming year, and the employees would be informed in a timely custom video to websites manner of any impending changes. and interactive eLearning, Projections has been serving Communication Helped Employees Feel Empowered the communication needs of Because BMW took a proactive approach to educate their companies large and small employees before the changes took place, the employees since 1979 by providing all could have a part in the transition and therefore be part of the services from consulting solution. By using the Spartanburg VP of Human Resources as to scriptwriting, producing, a narrator, the video showed important information was being editing, graphic design and communicated to them in a straight-forward, credible fashion, and more in-house. that management trusted the employees to take responsibility in the choices about their health. Over the last 30 years, Projections has crafted the right message in the right medium for thousands of corporations and millions of employees. www.projectionsinc.com