Whole Foods is All Teams Resourced from Charles Fishman Fast Company Issue 2 Page 103 April 1996 Presented by: Antoine Marcq David Rumer Keith Kinvig Matt Heynen Mimika Karountzos Hello Everyone. Thanks for coming today. My name is David Rumer and this is Antoine Marcq, Keith Kinvig, Matt Heynen, and Mimika Karountzos

Whole Foods The World’s Largest Organic Foods Retailer We’re here to talk to you about Whole Foods market. The world’s largest Natural and Organic Foods Supermarket.

Whole Foods “We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. We strive to offer the highest quality, least processed, most flavorful and naturally preserved foods”. Now let’s talk about History

History 1991: 12 Stores in 3 states Projected: 100 stores by Jan 2000 1980: Opened their first store in Austin Texas 1991: 12 Stores in 3 states Projected: 100 stores by Jan 2000 187 Stores in Canada, United States of America and the United Kingdom They opened their first store in Austin Texas in 1980.

Performance Measures Job Satisfaction 2006: Fortune Magazine named Whole Foods Market the15th best company to work for in America Whole Foods Market has place in the top 100 every year for the past nine years. 2006: Fortune Magazine named Whole Foods Market the15th best company to work for in America Whole Foods Market has place in the top 100 every year for the past nine years. Let’s take a look at some numbers…

Performance Measures Financial 2002: Revenue of $2.7 billion 2005: Revenue: $4.7Billion 3rd Quarter of 2006: YoY growth of 18% 2005: Net Profit of $136 million That’s more then double the industry standard! Finally on the bottom line…

Why are they successful All work is Teamwork Being Your Own toughest Competitor Anything worth doing is worth measuring Sustainable Success Success is based on three principles

All Work is Teamwork

All Work is Teamwork On average each profit centre is comprised of 10 teams Each of these teams has a team leader These Team Leaders are on a team with the store leader The store leader is on a team with other regional store leaders The company’s regional store presidents are on the final team

All Work is Teamwork Potential employees are recommended by store leaders to a specific team After a 30 day trial period there is a vote to determine if a full time position will be offered 2/3 of the team members must vote in favour of offering a full time position

All Work is Teamwork Teams, stores, and regions compete against each other in quality, service, and profitability The results of the competition translate directly into bonuses, recognition, and promotions The competition helps ensure the democratic process of selecting team members is working

All Work is Teamwork The teams create ownership and accountability among all employees Specific goals can be assigned to each team and the performance is easily evaluated Motivates employees at all levels to achieve their full potential

All Work is Teamwork Fortune 100 Best Companies to Work For 2006 — number 15 2005 — number 30 2004 — number 47 2003 — number 32 2002 — number 48 2001 — number 41 2000 — number 72 1999 — number 48 1998 — number 34

Anything Worth Doing is Worth Measuring

Anything Worth Doing is Worth Measuring What gets measured, gets done A “no-secret” management philosophy Every team knows sales information from every store

Anything Worth Doing is Worth Measuring Analysis reports monthly Profitability analysis Individual teams make decisions

Anything Worth Doing is Worth Measuring Yearly survey Company explains results of moral survey to shareholders Some team members are frustrated and concerned

Anything Worth Doing is Worth Measuring High Trust Organization Cannot have secrets Openness allows success in self competition

Be Your Own Toughest Competitor

Be Your Own Toughest Competitor Accountability Ambitious Targets Internal Pressure

Be Your Own Toughest Competitor Competition is everywhere Peer reviews

Be Your Own Toughest Competitor Store Tour -most intense -excessive competition

Be Your Own Toughest Competitor The Customer Snapshot -surprise visit -rates 300 items -important results

“If you don’t cross pollinate, you become a hick” -John Mackey CEO

Sustainable Success

Sustainable Success Refined Culture Culture put to the test Whole foods spent 26 yrs. Refining its culture of democracy and discipline Culture put to the test Plans to open more stores and increase sales

Sustainable Success Transferring cultural values In house recruitment Must transfer people who embody them In house recruitment Recruits up to 30% of new staff from existing supermarkets

Sustainable Success “It’s not the size of the company that creates the feeling. It’s the core values” All 187 stores exemplify the Whole Foods culture

Whole Foods

Four Things All work is Teamwork Being Your Own toughest Competitor Anything worth doing is worth measuring Strategies for sustaining success Success is based on three principles

Results Food marked up as much as 20% over other organic food retailers Double the average industry profit

Customer It’s wonderful It changes how you shop It’s a “Whole Food” experience

From the Peanut Gallery…