Karina Awad People Division

Way of Working

The relevance of Culture

81% of leaders believe that an organization that lacks

a high performance culture is doomed to mediocrity.

But fewer than 10% succeed in building one.

Source: Bain Consulting, Building a Winning Culture.

“ “

Companies with strong performance cultures have 11 percent higher annual

total return to shareholders (TRS) and 5.2 percent

higher ROIC than those with weak performance

cultures.

“ “

Source: McKinsey & Company, On Performance Culture.

Our Challenge

Business is more complex

What got us here won’t get us there

Some of what got us here has been lost along the way

Our strategy

50% Way

Of Working

50%

Half the way

3% growth in comp sales

3% new stores

1% eCommerce

Grow profits faster than sales

Doubling total sales in 10 years and growing profits faster than sales

50%

The other “better” half

Process What an enterprise delivers and how it

delivers

Culture The ability of an

organization to align, execute and renew itself to

sustain exceptional performance over time

Change how we work by improving our processes and aligning our culture.

50% Way of

Working

Performance Culture

Way of Working

Rei

nfor

ce tr

ust

Performance Culture Change Management

Place customer at center

Process

• Customer Advocacy Phase 1 (Customer KPI + External Feedback loops)

• Spokesperson to elevate the voice of the customer

• Store actions to improve customer experience

Culture

• Sign Up program/ Listen to the Customer

• Customer-centric training

• Reinforce principles: Orientation / Reorientation

Traslate insurgency into integrated strategic plan

Process

• Develop 10-year integrated strategic plan

Culture

• Seedbed Programs (Trainees)

• MBA’s • Short-term

assignments • Women leaders

development

Enable merchants and operations to serve customers

Process

• Setup Merchants and Operations Council

• Re-define role and zero-based responsibilities and activities of merchants and operations

Culture

• Special Certificate Course for District Managers

• Academies: Operations Merchandising eCommerce Logistics

Reinforce trust

Process

• Unvarnished communication plan

• Simplify: Push down 5-10 VP

approvals Zero-base Company

and department policies

Culture

• Development leadership • 4 key actions

(Accountability, Empowerment, Collaboration, Make it Simple)

Align staff to support merchants & operations

Process

• Create / review internal feedback loops

Culture

• Branding / Employment value proposition

• Service training for Staff

• Store visits

Revive engine 2

Process

• Omnichannel strategy

Culture

• Reinforce focus on Owner Mentality/Insurgency during training programs

• TT bench strength/ Replacement grids

I worry about keeping our culture, keeping the things we believe in. Our future lies in our associates. If we can instill in them the feeling that they are out there to serve we can keep the company right-side-up.

“ “

Sam Walton

Performance Management

Story Teller

Role Model

Team Player

The roles leaders play in delivering culture change

Way of Working

Leaders Leading Change

High aspirations and a desire to win

External focus

Think like owners

Bias to action

Individuals who team

Passion and energy

Outstanding leaders go out of their way to boost the

self-esteem of their personnel. If people believe in themselves, it's amazing what they can accomplish.

“ “ Sam Walton