Linda Bounds Vice President – Financial Services Focus on Results Balanced Scorecards

Focus on Results

What approach do you use to achieve and maintain excellent results? -- Results that create loyalty customers and value for your employees, vendors/partners and shareholders. The Question

Focus on Results – Balanced Scorecard Learning Objectives –Approach to Focus on Results Identify key stakeholders and requirements Alignment of requirements and strategies Systematic review through Balanced Scorecard –Approach to Creating Value Process improvement actions Innovation –Key to Achievement Leadership System Results - Sustainability

Focus on Results – Creating Value

A Balanced Scorecard is simply: Your key stakeholders Their key requirements Indicators of your performance Displays your goals All of your important results on one page Balanced Scorecard

Key Elements - Performance Measurement System Set the Direction Align with Key Stakeholder Requirements

Key Elements - Performance Measurement System Set the Direction Linked to Organizational Goals

Key Elements - Performance Measurement System Set the Direction Align with SWOTS, Core Competencies and Company Strategies

Key Elements - Performance Measurement System Establish the Measures Align with performance and process areas

Key Elements – Performance Measurement System - Link Goals and Requirements to Department and Individual Scorecards Company Goals Customer Satisfaction Company Requirements Product Availability Accurate, Intact Shipments Easy to do business with Department Scorecard In-stock Rate Shipping package quality Fast Delivery Abandoned Calls Individual Scorecard In-stock rate by product line Package quality rate Picking error rate Ship QC invoices per hour

Key Elements - Performance Measurement System Establish the Measures Integrate stakeholder requirement, process, measure and value

Key Elements - Performance Measurement System Balanced Scorecards - Measures p rovide depth and breadth for fact-based decision making * Not actual numbers. Numbers are for illustration purposes only.

Customer Satisfaction * Not actual numbers. Numbers are for illustration purposes only.

Customer Satisfaction Detail * Not actual numbers. Numbers are for illustration purposes only. 7.1 Customer Satisfaction Detail 2011April/Q2 Measure ActualGoalActualGoal Fast shipping and delivery94.0% 94%93%94.0%95% Customer Satisfaction Survey Question #1394.0% 93%94.0%95% Same Day Shipping (all orders)98.9%95.0%88.4%99.0%92.0%99.0% Same Day Shipping (Pick-up orders)Coming Friendly, courteous, respectful, ethical service93.0%94.0%93.0%92.6%93.0%92.5% Customer Satisfaction Survey Question #194.0% 93%94.0%93% Customer Satisfaction Survey Question #1592.0%93.0%92.0%92%92.0%92% After Call CSR surveyN/A92.0%93.8%92.0%94.4%92.0% Time Service Factor69.3%75.2%83.2%75-85%84.1%75-85% Abandoned Calls2.6%2.5%2.0%3.0%1.4%3.0%

Logistics Department Scorecard * Not actual numbers. Numbers are for illustration purposes only.

Employee Performance * Not actual numbers. Numbers are for illustration purposes only.

Company Daily Dashboard * Not actual numbers. Numbers are for illustration purposes only.

Company Scorecard Company Scorecard Employee Performance Area Process Measures Department Scorecard Monthly SLT Review Supervisor Daily Review Monthly DLT Review Monthly Review with President Key Elements – Performance Measurement System Systematic Review Process

Key Elements – Performance Measurement System Take Action – Value Creation Creating Value

Key Elements of Performance Measurement System Take Action - Value Creation Review of results generate process improvement and innovation Three categories at Midway: –Corrective Actions from review of process measures –Innovation from continuous improvement ideas –“Bucket List” for strategically significant ideas

Key Elements – Performance Measurement System Take Action - Value Creation - Results not meeting goal for three months - establish Action Plan * Not actual numbers. Numbers are for illustration purposes only.

Key Elements – Performance Measurement System Take Action – Company Action Plans (CAPs) Department Action Plans (DAPs) - Track Action Plan Results through integration into the process MidwayUSA Strategic Plan Execution Measure % Complete16% % Goal16% Initiative (1) Status (2)Start (2)Complete (2)Proj Compl Date (2) VAT RedesignIn progress4/1/201210/30/2012 UPC Acquisition*Completed2/1/20125/31/2012 Slotting (2-Year Plan)*In progress1/3/201111/7/2012 Sitka Niche Marketing Campaign*Completed1/23/201212/31/2012 Reward and Recognition Process Re-engineeringIn progress1/3/20129/30/2012 Relocate Support Departments to Roosevelt BuildingIn progress11/15/201110/31/2012 Receiving Rewrite (2-Year Plan)In progress7/1/201111/19/201211/13/2012 Product RecommendationsIn progress2/1/20128/31/2012 Product Page ImprovementIn progress2/6/201210/31/2012 Product Center Re-engineering to Support Merchandising Work System ( )In progress10/1/201212/31/2013

Key Elements – Performance Measurement System Communicate Communicate Improvements – SOTB and Qtrly DKS – Monthly DLT and staff review – Daily dashboard review Celebrate Improvements – Formal/informal R & R – Engages Employees

Key Elements – Performance Measurement System Value Creation – Repeat the Process Creating Value

Value Creation – Driven through Leadership System

“Results” of Excellent Performance Measurement System-- Value Creation and Performance Excellence 1.Deliver every improving value to customers and stakeholders –Loyalty –Growth –Sustainability 2.Improves overall organizational effectiveness and capabilities –Continuous Innovation 3. Organizational and personal learning –Engagement –Organizational DNA

Questions?