This is real competition, by the way. I just had a visit from someone who didn't get a job after a panel interview. He was very upset. I talked to the hiring manager, who told me, "This person didn't do his research. He didn't really understand the job, he didn't talk to the right people." I asked if he had provided that feedback, and he said he had. "Great," I told him, "that's what it's all about." There are no guarantees in this process. It's all about personal responsibility.

It's like you're creating a new company from the shell of the old company. How have people reacted?

We underestimated the visceral reaction some people would have. It's caused real stress. People say, "I've been here for 20 years, I've given my life to this company, now you want me to apply for a job? It's like everything I've done doesn't count anymore." If you apply for two or three different jobs, and you don't get any of them, your self-esteem takes a beating.

Those are the costs. What are the benefits?

We're unearthing skills and talents that might not have surfaced otherwise. We're rediscovering our own people. Because we interview candidates from all over the company -- all over the world, really -- many of us are meeting people we haven't had the chance to work with before. We're also learning new things about people we've worked with for a long time. Emily Morgan, our vice president for customer fulfillment in Asia, is a person I've worked with for years. I sat in on her panel interview and was amazed to learn she had a degree in chemistry. I had no idea, and I thought I knew everything about Emily.

This process will multiply those kinds of discoveries. People are moving all around this organization. A woman from finance is now director of sourcing and production planning for Dockers. The general manager of our Poland affiliate is now vice president of customer relations. A person who began in sales, and later became general manager for Hungary, is a vice president of customer fulfillment. The person who used to run our Japanese affiliate is director of global leadership development.

Is this job-application process something you'd recommend to other companies?

I'll be honest: I'm not sure I'd do it this way again. The disruption, stress -- we took a real hit for a while. This process takes time. I genuinely believe it's been consistent with Levi's values and culture. I also wish we could have found a way to ameliorate some of the trauma.

I'm not suggesting that pain is always bad. Not getting a job forces people to step back, look at themselves, and ask: "Where can I add value in this organization?" And that's a question every person at every company should be asking.

I had someone in my office just a week ago. She was very confident about her chances for a particular job, but she didn't even make it to the interview stage. It hit her pretty hard. She was crying.

We talked, and I gave her two messages. First, "Don't let this take away from what you've accomplished. You've contributed a lot to this company." Then I told her it was time to think more broadly about her role here. Every job she's had has been in one area of the company. Yet many of her skills are transferable. Why is she limiting herself? Where else can she add value?

That's the most important advice I can offer: Find where you can add value in your company and go after it. It may not be in the job you're in now. It may not be in the job you like best. But that's what matters -- adding value. That's where you find security and fulfillment.

David Sheff (dsheff@nbn.com) is the author of Game Over: How Nintendo Conquered the World (Vintage Books, 1996 . His interviews and profiles appear in "Playboy", "Rolling Stone", and other magazines.

Sidebar: Tools

1. "The Little Blue Book"

Spring 1994 was an anxious time at Levi's. The new supply chain had been designed, but rollout was months away. So the change team created a handbook to help people prepare.

"Individual Readiness for a Changing Environment" is an informal, 145-page binder (dubbed the "little blue book") full of self-assessment tools and self-improvement resources. One section, called Knowing Myself, contains diagnostics that measure personal values, interests, talents, and attitudes. Another section, Taking Action, offers advice on upgrading skills. A final section, Marketing Myself, presents a refresher course on resumes and interviews.

In the spirit of self-reliance, Levi's didn't blanket the company with books; employees had to request it. "It's amazing how long people kept asking for it," says Susan Weaver, a member of the "individual Readiness" team. "We had to keep producing copies." Ultimately, more than 4,000 people asked for copies.