DMTPDistribution Management Training

Program

Cindy Joice Director Training and Development

Agenda

• Overview of SUPERVALU and the Distribution group

Distribution Management Training Program (DMTP)

• Program Needs Assessment & Objectives• Content / Subject Matter• Return on Investment & Program Impact

About SUPERVALU

• Annual sales of approximately $44 billion• Headquarters in Minneapolis (Minn.) and

Boise (Idaho)• Employs about 192,000 associates

SUPERVALU Distribution

• More than 50 distribution centers coast-to-coast servicing: – 2,500 company owned stores– More than 2,000

independent,military, and non-traditional operators

Distribution Management Training Program (DMTP)

Pre-Development Phase

Distribution Leadership Needs Assessment• 25 years ago:

– Improve operations – Build bench strength

• Change is coming:– Evolving workforce– Already leveraged

productivity gains from new technology

– Competition for top talent– Aging workforce

• 2005 Program Re-evaluation– Cross-functional Project

teams • Surveys• Internal and external

Interviews • Best practices

– Adult learning research– Company goals– Local processes

Needs Assessment Process

Needs Assessment Process

– Increase Management effectiveness– Improve core competencies linked to leadership

success– Enable collaboration and sharing of best practices– Integrate training to enable readiness for advancement

Program Objectives

Improve operations and build bench strength

Alignment with Company Priorities

• SUPERVALU Fiscal Year 2009 Priorities for Associates– Develop and support associates

• Engage and involve employees• Recognize associates for their contributions

– Enable collaboration– Serve customers better than anyone else can– Foster value and growth for shareholders

Program Development Phase

• Personal Effectiveness• 7 Habits of Highly Successful People • Communication• Myers-Briggs• Reflection and Journaling

• Leading Teams• Setting Priorities• Recognition• Coaching• Decision Making and Problem Solving• Motivation and Employee Engagement

• Providing Shareholder Value• Financial Acumen

Program Content & Subject Matter

Program Design

On-LineClasses

Work-BasedLearning

Collaboration / Team Building

Distance Learning

Local Experts / Mentors

5 months

Classroom Training

Training by Executives

Case Study

Learn, Practice, Apply New Skills

Share Best Practices

2 Weeks

Follow-up

FeedbackSessions

Actionable Reminders

DevelopmentPlans

3 months

Behavior Modeling

• Coaching • Recognition • Reflection• Communication • Employee Engagement

We are more likely to repeat what we see and do than what we hear.

Motivating Adult Learners

• Connection between content and application• Active participation• Experiential activities• Opportunity for personal advancement• Escape / stimulation• Cognitive interest

Distribution Management Training Program 1988 - 2008

Wall of Fame

Post Development Phase

Measurable Results

• Results in the last 10 years– Net cost per case decrease each year– 49% of participants were promoted or moved laterally– 75% of distribution managers have completed the

program

• Results last year– Significant net cost per case decrease– 80% of open management positions were filled by

program graduates

*Assumption: 5% – 10% of cost per case and turnover reduction is directly related to the program

1 Year ROI ranged from 7 to 14.5%

Results: Operations Improvement

Warehouse Cost Per Case

3.0%3.1%3.2%3.3%3.4%3.5%3.6%3.7%3.8%3.9%4.0%4.1%4.2%4.3%4.4%4.5%4.6%4.7%4.8%4.9%5.0%5.1%5.2%5.3%5.4%5.5%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

WHSE & BLDG % to Sales

Whse & Bldg Exp w/3% increase

Employee Impact

• Group comments tell the story best:

“Great content…life-changing.”

“Giving recognition has neverbeen easy for me. I can’t

wait to get back so I can start trying out these new techniques.”

“My group is at least 40% more productive.”

“This has given me a license to Steal”

“Best training I’ve ever received. This has changed the

way I’m going to run my business.”