Whole Foods is All Whole Foods is All TeamsTeams

Presented by:Presented by:Antoine MarcqAntoine MarcqDavid RumerDavid RumerKeith KinvigKeith KinvigMatt HeynenMatt HeynenMimika Mimika KarountzosKarountzos

Resourced from Charles Fishman

Fast Company Issue 2 Page 103

April 1996

Whole FoodsWhole Foods The World’s Largest Organic Foods RetailerThe World’s Largest Organic Foods Retailer

Whole FoodsWhole 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”.

HistoryHistory 1980: Opened their first store in Austin Texas1980: Opened their first store in Austin Texas

1991: 12 Stores in 3 states1991: 12 Stores in 3 states Projected: 100 stores by Jan 2000Projected: 100 stores by Jan 2000 187 Stores in Canada, United States of America and the United Kingdom187 Stores in Canada, United States of America and the United Kingdom

Performance MeasuresPerformance MeasuresJob SatisfactionJob Satisfaction

2006: Fortune Magazine named Whole Foods Market the152006: Fortune Magazine named Whole Foods Market the15thth best company to work best company to work for in Americafor in America

Whole Foods Market has place in the top 100 every year for the past nine years.Whole Foods Market has place in the top 100 every year for the past nine years.

Performance Measures Performance Measures FinancialFinancial

2002: Revenue of $2.7 billion 2002: Revenue of $2.7 billion

2005: Revenue: $4.7Billion2005: Revenue: $4.7Billion

33rdrd Quarter of 2006: YoY growth of 18% Quarter of 2006: YoY growth of 18%

2005: Net Profit of $136 million2005: Net Profit of $136 million

That’s more then double the industry standard!That’s more then double the industry standard!

Why are they successfulWhy are they successful All work is TeamworkAll work is Teamwork Being Your Own toughest CompetitorBeing Your Own toughest Competitor Anything worth doing is worth measuringAnything worth doing is worth measuring Sustainable SuccessSustainable Success

All Work is TeamworkAll Work is Teamwork

All Work is TeamworkAll Work is Teamwork On average each profit centre is comprised of 10 On average each profit centre is comprised of 10

teams teams

Each of these teams has a team leader Each of these teams has a team leader

These Team Leaders are on a team with the These Team Leaders are on a team with the store leaderstore leader

The store leader is on a team with other regional The store leader is on a team with other regional store leadersstore leaders

The company’s regional store presidents are on The company’s regional store presidents are on the final teamthe final team

All Work is TeamworkAll Work is Teamwork Potential employees are recommended Potential employees are recommended

by store leaders to a specific teamby store leaders to a specific team

After a 30 day trial period there is a vote After a 30 day trial period there is a vote to determine if a full time position will to determine if a full time position will be offeredbe offered

2/3 of the team members must vote in 2/3 of the team members must vote in favour of offering a full time positionfavour of offering a full time position

All Work is TeamworkAll Work is Teamwork Teams, stores, and regions compete against Teams, stores, and regions compete against

each other in quality, service, and profitabilityeach other in quality, service, and profitability

The results of the competition translate The results of the competition translate directly into bonuses, recognition, and directly into bonuses, recognition, and promotionspromotions

The competition helps ensure the democratic The competition helps ensure the democratic process of selecting team members is workingprocess of selecting team members is working

All Work is TeamworkAll Work is Teamwork The teams create ownership and The teams create ownership and

accountability among all employeesaccountability among all employees

Specific goals can be assigned to each Specific goals can be assigned to each team and the performance is easily team and the performance is easily evaluatedevaluated

Motivates employees at all levels to Motivates employees at all levels to achieve their full potentialachieve their full potential

All Work is TeamworkAll Work is Teamwork

2006 — number 152006 — number 152005 — number 302005 — number 302004 — number 472004 — number 472003 — number 322003 — number 322002 — number 482002 — number 482001 — number 412001 — number 412000 — number 722000 — number 721999 — number 481999 — number 481998 — number 34 1998 — number 34

Fortune 100 Best Companies to Fortune 100 Best Companies to Work ForWork For

Anything Worth Doing is Anything Worth Doing is Worth MeasuringWorth Measuring

Anything Worth Doing is Anything Worth Doing is Worth MeasuringWorth Measuring

What gets measured, gets doneWhat gets measured, gets done

A “no-secret” management A “no-secret” management philosophyphilosophy

Every team knows sales information Every team knows sales information from every storefrom every store

Analysis reports monthlyAnalysis reports monthly

Profitability analysisProfitability analysis

Individual teams make decisionsIndividual teams make decisions

Anything Worth Doing is Anything Worth Doing is Worth MeasuringWorth Measuring

Yearly surveyYearly survey

Company explains results of moral Company explains results of moral survey to shareholderssurvey to shareholders

Some team members are frustrated Some team members are frustrated and concernedand concerned

Anything Worth Doing is Anything Worth Doing is Worth MeasuringWorth Measuring

High Trust OrganizationHigh Trust Organization

Cannot have secretsCannot have secrets

Openness allows success in self Openness allows success in self competitioncompetition

Anything Worth Doing is Anything Worth Doing is Worth MeasuringWorth Measuring

Be Your Own Toughest Be Your Own Toughest CompetitorCompetitor

Be Your Own Toughest Be Your Own Toughest CompetitorCompetitor

Accountability Accountability

Ambitious Targets Ambitious Targets

Internal PressureInternal Pressure

Be Your Own Toughest Be Your Own Toughest CompetitorCompetitor

Competition is everywhereCompetition is everywhere

Peer reviewsPeer reviews

Be Your Own Toughest Be Your Own Toughest CompetitorCompetitor

Store TourStore Tour -most intense-most intense -excessive competition-excessive competition

Be Your Own Toughest Be Your Own Toughest CompetitorCompetitor

The Customer SnapshotThe Customer Snapshot -surprise visit-surprise visit -rates 300 items-rates 300 items -important results-important results

““If you don’t cross pollinate, you If you don’t cross pollinate, you become a hick”become a hick”

-John Mackey CEO-John Mackey CEO

Sustainable SuccessSustainable Success

Sustainable SuccessSustainable Success Refined CultureRefined Culture

Whole foods spent 26 yrs. Refining its Whole foods spent 26 yrs. Refining its culture of democracy and disciplineculture of democracy and discipline

Culture put to the testCulture put to the test Plans to open more stores and increase Plans to open more stores and increase

salessales

Sustainable SuccessSustainable Success Transferring cultural valuesTransferring cultural values

Must transfer people who embody themMust transfer people who embody them

In house recruitmentIn house recruitment Recruits up to 30% of new staff from Recruits up to 30% of new staff from

existing supermarketsexisting supermarkets

Sustainable SuccessSustainable Success ““It’s not the size of the company that It’s not the size of the company that

creates the feeling. It’s the core creates the feeling. It’s the core values”values”

All 187 stores exemplify the Whole All 187 stores exemplify the Whole Foods cultureFoods culture

Whole FoodsWhole Foods

Four ThingsFour Things

All work is TeamworkAll work is Teamwork Being Your Own toughest CompetitorBeing Your Own toughest Competitor Anything worth doing is worth measuringAnything worth doing is worth measuring Strategies for sustaining successStrategies for sustaining success

ResultsResults Food marked up as much as 20% Food marked up as much as 20%

over other organic food retailersover other organic food retailers

Double the average industry profitDouble the average industry profit

CustomerCustomerIt’s wonderfulIt’s wonderful

It changes how you shopIt changes how you shop

It’s a “Whole Food” experienceIt’s a “Whole Food” experience

From the Peanut Gallery…From the Peanut Gallery…