1. “Next Practices” at Walgreens: Metrics to Drive and Measure Strategy
Corinne A. Wolcott
Manager, Diversity & Inclusion
October 23, 2014
©2014 Walgreen Co. All rights reserved.

2. Diversity & Inclusion Next Practices at Walgreens
Diversity & Inclusion at Walgreens
The “Next Practices” Model
Measurement & Assessment
Insights into Action
©2014 Walgreen Co. All rights reserved.

3. Walgreens: At the Corner of Happy & Healthy®
Team: 248,000 Fiscal Year 2013:
$72.2 billion sales
$2.45 billion net earnings
8,200 drugstores in all 50 States, District of Columbia, Puerto Rico and the US Virgin Islands serving nearly 6.3 million people daily
821 million prescriptions filled in fiscal 2013 (nearly 1 in 5 retail prescriptions in the US) with prescription labels in 14 languages
8.5 million vaccines administered in fiscal 2013 (#1 retail provider)
Nearly 2/3 of Americans live within 3 miles of a Walgreens and approximately 65% of stores serve medically underserved populations
©2014 Walgreen Co. All rights reserved.

4. Our Diversity & Inclusion Journey
2011: Steve Pemberton is appointed the company’s first Chief Diversity Officer and the Office of Diversity & Inclusion is established.
2007: Walgreens becomes a federal government contractor.
2012: Diversity & Inclusion ‘Next Practices’ comprehensive strategy launched and implemented enterprise- wide.
2014: OFCCP Task Force for 503/VEVRAA launched.
2007:Business Resource Groups launch at corporate offices.
2011: Diversity Best Practices #26 for Supplier Diversity, published 5+ times since 2011.
2007
2008
2009
2010
2011
2012
2013
2014
2015
2007: Walgreens Anderson DC is the first to rollout our innovative DC Disability Program.
2010: Community Corner rolls out in stores to allow consumers to easily identify and purchase products produced by diverse companies.
2011: Initial pilot of REDI program which has now launched nationwide.
2012: D & I Awareness training rolled out to all team members.
2012: Integrated Supplier Diversity into D & I Strategy with full metrics across the business and doubled Tier 2 reporting.
2013: Regional Diversity Councils launch.
2014: D & I Team is featured in Diversity Executive Magazine.
©2014 Walgreen Co. All rights reserved.

5. The “Next Practices” Model

6. DIVERSITY & INCLUSION NEXT PRACTICES ACCOUNTABILITY & REVIEW
Definitive D & I Goals
GPS Measures
Diverse Slates
Review and modify strategies
MEASUREMENT
& ASSESSMENT
D & I Scorecard
Gallup Employee Survey
HRBP Partnership
Talent Management
Compliance
Bi-annual review of data
STRATEGY
Comprehensive D & I Strategy
D & I BU/ Functional Strategy
DIVERSITY & INCLUSION
NEXT PRACTICES
EXECUTION
Implement BU/Functional Strategy
EDUCATION
& SKILL BUILDING
D & I Awareness Training
D & I Skill Building for Managers
D & I integration into current programs
BRANDING
& COMMUNICATION
Walgreens World
Inter/Intranet
Publications/Journals
Annual Report
Social Media

7. DIVERSITY & INCLUSION NEXT PRACTICES ACCOUNTABILITY & REVIEW
Definitive D & I Goals
GPS Measures
Diverse Slates
Review and modify strategies
MEASUREMENT
& ASSESSMENT
D & I Scorecard
Gallup Employee Survey
HRBP Partnership
Talent Management
Compliance
Bi-annual review of data
STRATEGY
Comprehensive D & I Strategy
D & I BU/ Functional Strategy
DIVERSITY & INCLUSION
NEXT PRACTICES
EXECUTION
Implement BU/Functional Strategy
EDUCATION
& SKILL BUILDING
D & I Awareness Training
D & I Skill Building for Managers
D & I integration into current programs
BRANDING
& COMMUNICATION
Walgreens World
Inter/Intranet
Publications/Journals
Annual Report
Social Media

8. DIVERSITY & INCLUSION NEXT PRACTICES ACCOUNTABILITY & REVIEW
Definitive D & I Goals
GPS Measures
Diverse Slates
Review and modify strategies
MEASUREMENT
& ASSESSMENT
D & I Scorecard
Gallup Employee Survey
HRBP Partnership
Talent Management
Compliance
Bi-annual review of data
STRATEGY
Comprehensive D & I Strategy
D & I BU/ Functional Strategy
DIVERSITY & INCLUSION
NEXT PRACTICES
EXECUTION
Implement BU/Functional Strategy
EDUCATION
& SKILL BUILDING
D & I Awareness Training
D & I Skill Building for Managers
D & I integration into current programs
BRANDING
& COMMUNICATION
Walgreens World
Inter/Intranet
Publications/Journals
Annual Report
Social Media

9. Measurement & Assessment

10. Design and Focusing in on Key Opportunities
Establish how D & I aligns to and supports business objectives
Define what success looks like
Assess what data is available
Communicate data that is both relevant and actionable
Establish appropriate benchmarks or goals
Marketplace
Total Spend with diverse suppliers (Tier 1 and 2)
Diverse spend as percentage of total spend
Talent
Representation
Talent Mobility/ Progression
Performance Management
Succession Planning
Culture
Engagement
Inclusion
Education & Skill Building
Branding & Communications
Accountability
©2014 Walgreen Co. All rights reserved.

11. Talent: Representation, Talent Mobility/Progression, Performance Management, Succession Planning
Representation: Methodology leverages US Census job code mapping to establish diversity benchmarks by level and highlight areas of opportunity by business unit
Analysis of hires
Talent Mobility/Progression: Analysis of promotions and voluntary terminations
Performance Management: Analysis of performance management ratings
Succession Planning: Analysis of successor identification, potential and readiness ratings
Make specific recommendations
Integrate diversity in processes and systems
Invest in training for HR and Leadership
Focus on development
Drive accountability
©2014 Walgreen Co. All rights reserved.

12. Culture: Engagement and Inclusion
Diversity
Inclusion
Engagement
Superior Business Performance
Gallup® Q12 ® Survey
Data specific, relevant and actionable
Measures by generation, gender, race/ethnicity, tenure and location
Normative data for benchmarking
Review differences in engagement and inclusion
Explore changes year over year to identify trends, develop differentiated strategies and measure progress
©2014 Walgreen Co. All rights reserved.

13. Measuring Engagement and Inclusion
Engagement (Q12) Items
Composite Score: GrandMean
Q01.
I know what is expected of me at work.
Q02.
I have the materials and equipment I need to do my work right.
Q03.
At work, I have the opportunity to do what I do best every day.
Q04.
In the last seven days, I have received recognition or praise for doing good work.
Q05.
My supervisor, or someone at work, seems to care about me as a person.
Q06.
There is someone at work who encourages my development.
Q07.
At work, my opinions seem to count.
Q08.
The mission or purpose of my organization makes me feel my job is important.
Q09.
My coworkers are committed to doing quality work.
Q10.
I have a best friend at work.
Q11.
In the last six months, someone at work has talked to me about my progress.
Q12.
This last year, I have had opportunities at work to learn and grow.
Note: Q07. My Opinions Count part of both metrics
Copyright © , 2001, 2014 Gallup, Inc. All rights reserved.

14. Insights into Action

15. Turning Insights into Action-D & I Business Plans
Establish strategy based on data and aligned to business objectives, mainstream processes and areas of focus
Foster inclusive collaboration with shared ownership and accountability
Communicate to leadership team and organization to engage all team members to achieve goals
Focus on specific actions with measurable results
Regular reporting to evaluate effectiveness and account for continuous improvement.
©2014 Walgreen Co. All rights reserved.

16. Sample D & I Business Plan
Strategic Areas of Focus
Change Pillars
Customized Goals
Actions/Metrics
(Reported on Bi-annually) Q1 Q3
Marketplace
Supplier Diversity
Measure:
Stakeholders:
Talent
Representation
Performance Mgmt.
Talent mobility/ progression
Succession Planning
Culture
Engagement
Inclusion
Education & Skill Building
Branding & Communications
Accountability
= On Track
= Limited Progress
= Lack of Progress
©2014 Walgreen Co. All rights reserved.

17. Key Takeaways
Inclusive collaboration and accountability drive sustainable change
Start the conversation with what works and build upon strengths
Design matters
Establish customized, specific and actionable strategies- avoid trying to “boil the ocean”
Align to business objectives and mainstream processes
©2014 Walgreen Co. All rights reserved.

18. Thank You and Be Well. Please contact me: corinne. wolcott@walgreens
Thank You and Be Well! Please contact me: Connect via LinkedIn