1. AN EXTRAORDINARY COMPANY

2. Agenda Company Overview Positive Deviance Employee Life & Culture
REI’s Leadership
Organizational Transformation

3. Recreational Equipment, Inc.
Began in 1938 as recreational cooperative
The REI of today…
Sells a variety of outdoor gear
Offers educational sessions
Promotes culture of sustainability

4. Company Structure and Operations
Privately held and operates as a consumers’ Co-Op
130+ stores in the US
More than $2 billion in annual sales
$114 million shared with Co-Op members through annual dividends

5. Positive Deviance…

6. The Co-Op
REI customers and employees can become members by paying one-time $20 fee
Members paid annual dividend (since 1966), receive special rewards, and get discounts on REI Adventure and Outdoor School packages
Allows REI customers and employees to literally become part of their company
Builds significant loyalty

7. REI Adventures
REI goes beyond a typical store by planning trips for avid adventurers; the company’s key target market.
“Getting people outdoors is our mission, our goal, and our passion. We handle the details—so you can have fun in the world's most amazing places.”

8. REI Adventures
Brings customers into REI mindset, builds trust that REI is more than just a store.
Employees can be hired to lead and plan these adventures!

9. REI Outdoor School
A forum for learning about and exploring the outdoors, designed for REI customers of all levels.
Classes in cycling, paddling, fitness, hiking & camping, snow sports, climbing, wilderness medicine, nature photography, and more!

10. REI Outdoor School Good business:
Classes directly relating to the store’s different departments
More ways for customers to interact with the store in a way other than pure retail.

11. Culture and Employee Life
Warm, inclusive culture - collection of people all passionate about the outdoors
Emphasis on a sense of Camaraderie
Participation in stewardship projects
Outdoor bonding trips with co-workers
REI Work/Life Program - encouragement of work/life balance by offering a wide range of services

12. Benefits Annual incentive (profit sharing) plan
Retirement plan that doesn’t require individual contributions
Healthcare for all FT & PT employees
Tuition Reimbursement to encourage employee betterment and growth
Paid time away from work- vacation, sick, 8 paid holidays, “Yay Day”, sabbatical

13. Leadership: REI’s Mission
“To serve our members by selling great gear and promoting an outdoor lifestyle; to help people have fun, appreciate nature, and become stewards for the environment.”

14. Exemplary Leaders
Jim Whittaker
Sally Jewell

15. Organizational Transformation
Gradual, Clydesdale-like growth
First store opened 6 years after founding
Importance of failure: Japan expansion
Largest consumer co-op in US
REI Values: Dennis Madsen
Started w/ Lloyd Anderson and 23 Pacific Northwest climbers who wanted Swiss mountain climibing gear (1938); Anderson leader for 30 years
First store came 6 years after forming co-op, and it was three shelves in the back of a Seattle gas station
Second store 31 years later, w/ spurts of expansion
Dennis Madsen: REI employee from age 17 to age 55, retired as CEO

16. Why REI Is Extraordinary
Organizational Structure
Organizational Culture
Leadership