1. Danny B. Gant Managing Director Customer Services
The FedEx Approach To A Fully Customer-Centric Culture
Service is all we sell…no widgets..just service.
Danny B. Gant
Managing Director
Customer Services

2. Over 40 years ago, FedEx was built around a single focus…
I’ve been around a long time – 35 years – FWS established the culture and operating philosophy of our company with a simple belief – PSP …It is still alive today and extremely strong
Living PSP…
The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take care of our people; they in turn will deliver impeccable service demanded by our customers, who will reward us with the profitability necessary to secure our future. –Frederick W Smith
P-S-P 2

3. the company has evolved over time…
FedEx has grown from the small Express company that created a new industry in the US.
50K packages to 11MM per night service 220 countries with over 300K employees worldwide. 3

4. T More than 300,000 team members worldwide
Handle more than 10 million shipments per day for express, ground, freight and expedited delivery services
Serve more than 220 countries and territories, including every address in the United States
fedex.com Support over 32 million unique visitors monthly; more than 6.5 million package tracking requests daily and more than 20 million labels generated via FedEx Ship Manager monthly
Annual Revenue – Approximately $46 Billion 4

5. 649 aircraft; 375 airports served worldwide
More than 100,000 motorized vehicles for express, ground, freight and expedited delivery service
Dropoff Locations
690 FedEx World Service Centers
1,750 FedEx Office locations
6,300 FedEx Authorized ShipCenters® and Alliance Partners
37,000 FedEx Drop Boxes
Operating Facilities
Express: 1,200 stations; 10 air express hubs
Ground: 33 ground hubs; over 500 pickup/delivery terminals
Freight: Approximately 370 service centers
Office: More than 1,800 locations 5

6. The FedEx Brand Our reputation transcends all FedEx companies….
…and our reputation rises and falls with the reputation and experiences our customers have with each and every part of FedEx
And our reputation is a very important driver of the loyalty of our customers 6 6

7. Customer Loyalty is Core to Our Success The Customer is at the heart of everything we do!
Sustainable Growth
Lower Customer Acquisition Costs
Business Growth
Customer Loyalty Willing to recommend to others Intend to continue to use Highly satisfied
So that we all understand the strategic importance of growing the loyalty of our customers, let’s take a quick look at what loyalty is and what creates it.
Loyalty is when a customer consistently chooses your product or service over the competition and recommends it to their friends. It’s when price is not the driving factor in their choice.
We know that loyalty also has a significant impact on our bottom line and is a good predictor of future revenue growth.
If we move 1% of our customers from disloyal to the loyal, that generates an additional $100MM in revenue. 7

8. Worldwide FedEx Team Members Deliver the “Purple Promise” Daily to Strengthen Customer Loyalty
~22MM customer interactions per day = 22MM opportunities to put our best foot forward in influencing our customers.
Because our people are the closest to the experience, we arm them with the knowledge and tools necessary to deliver an outstanding experience
Focus employees on being the person that the customers want as a partner
Design structures, processes, tools and practices to drive the right result – teach employees that Quality = experience
The “Purple Promise” – I will make every FedEx experience outstanding
-An oath that is simple, but far reaching…unites across regions, roles and companies
What is the difference between Service and Experience – “Service lives in the head. Experience lives in the heart.”
We look for that discretionary effort that drives the difference between customer satisfaction and customer loyalty
-Must deliver an approach to Customer Experience that differentiates FedEx from competitors in a world where products, pricing and technology are very similar.
The Purple Promise: “I will make every FedEx experience outstanding” 8

9. Quality Driven Management (QDM) Drives Delivery of the Purple Promise
People, Service, Profit
FWS was a student of Deming. Quality and continuous improvement as always been a hallmark of FedEx
QDM is a quality methodology and philosophy that was created by FedEx for FedEx….a complex service enterprise.
It provides a set of methods, techniques and tools to drive quantifiable results – a common language and approach for all operating companies
99.9% - dissapoint 4000 customers per day, or every one of our customers in just 1000 days.
99.99% - disappoint each of our customers only once every 27 years.
Purple Promise – our goal for Cust Sat – It’s what we do
Customer Loyalty – is why we do it
QDM – is how we do it.
“QDM will give us common ways to improve Quality across our entire enterprise. For the first time, we will all use the same language, tools, and metrics to analyze the causes of problems and plan corrective actions. QDM is the way FedEx will manage our business to drive Quality and brand loyalty to new heights.”
Fred Smith
Chairman, President and CEO
FedEx Corporation “ 9

10. QDM: The Way We Work At FedEx
Institutionalizing QDM Principles within our culture is critical to a holistic adoption
QDM Principles are designed to drive desired organization behaviors
Behaviors demonstrate what a culture values
What a culture values guides decision-making on a day-to-day basis 1 2 3 4 5 6
Customers Define Quality
Be Scientific
Measure, Measure, Measure
Optimize Business Performance
Quality Involves Teamwork
View Failures as Opportunities
Strive to understand customer requirements and expectations:
Who are our customers?
Are they satisfied with the services we provide?
What areas do they want us to improve?
Base decisions on facts and data, not guesses or opinions:
Have we gathered an adequate fact base?
Do we understand the root cause of the problem?
Will our solution address the root cause?
Measure failures, measure variation:
Do we have measurements in place?
Do we monitor measurements to identify continuous improvement opportunities?
Does the measurement tie to strategic objectives?
Minimize unnecessary effort, time, and cost:
Do we recognize value-added vs. wasteful activities?
Do we apply QDM/Waste Reduction Workshop (WRW) tools to proactively minimize waste?
See work as a collaborative process:
Have we engaged all our key stakeholders?
Have we built common understanding of our key objectives, deliverables, timeline, etc.?
Seek the truth and end the blame game:
Do we appreciate those who identified the failures
Do we understand root causes of the failures and do we gather learning to confirm our hypotheses?
Do we develop action plans?
Do we share learning?
de Principle define Organizational behaviors
fine desired organizational behaviors
QDM Principle define Organizational behaviors
ABLE provides the continuous improvement and problem solving methodology for both QATs and daily tasks
A comprehensive Quality toolset is made available that covers beginner, intermediate, and advanced levels
A consistent, and disciplined way for the company to keep customers at the heart of everything we do.
QDM: The Way We Work At FedEx 10

11. Quality Action Teams (QAT) use the ABLE Quality Improvement Process
Assess opportunities to improve
the customer experience or
business performance
Evaluate the
implementation to
confirm its
real-world success
Build understanding of the Quality issue, build a solution for addressing its root cause, and build the business case
Formal QAT’s are for more complex issues that normally span across organizations and operating companies.
Launch the solution
successfully through
careful planning and control 11

12. Connecting with the Customer “Customer Service is not a Department”
FedEx OneCall
Customer Advocate Team
Executive Services
Social Media
Couriers/Sales/Technicians
1-800-Go-FedEx
Moments of Truth/Focus Sessions 12

13. Connecting with the Employee
REACH Program-
Reps Engaged And Connected At Home
Employee Surveys
Leadership, Culture, Service
Pay and Benefits/Tuition Reimbursement
Competitive, Attract and Retain!
Recognition Programs
Bonus Programs-All Levels!
Bravo Zulu
PP Award
Celebrations!
Births, Graduations, Weddings, Service Awards 13

14. Community Support
Humanitarian Awards

15. Living P-S-P I contribute to a positive FedEx Spirit
I act accountably to support our Living PSP Culture
I am a vital link in the chain of success
I am committed to personal growth 15

16. 2013 “Top 10 Most Admired Companies,” FORTUNE Magazine
Selected awards and recognitions
2013 “Top 10 Most Admired Companies,”
FORTUNE Magazine
2013 “100 Best Companies to Work For in America,”
FORTUNE Magazine
2012 “Top 10 Best Multinational Workplaces – FedEx Express,” Great Place to Work Institute
2013 “Top 100 Best Corporate Citizens,” Corporate Responsibility Magazine
2013 “Top 15 (#12) Most Reputable U.S. Companies,” Forbes
#8 World’s Most Admired Companies 16

17. “I will make every FedEx experience outstanding”
“Keeping the Promise”
“I will make every FedEx experience outstanding” 17

18. Culture Matters- People
Take Aways
Culture Matters- People
Customers and Employees deserve an outstanding experience- Service
Happy People and Good Service = Profit

19. Over 40 years ago, FedEx was built around a single focus…
I’ve been around a long time – 35 years – FWS established the culture and operating philosophy of our company with a simple belief – PSP …It is still alive today and extremely strong
Living PSP…
The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take care of our people; they in turn will deliver impeccable service demanded by our customers, who will reward us with the profitability necessary to secure our future. –Frederick W Smith
It still works! 19

20. Questions? 20