Canadian Tire WayA framework to energize and align the organization behind our Statement of Purpose, Vision, Team Values& Leadership Expectations

Engagement Strategy – Taking the next Steps

July 18, 2002

Meeting Agenda

• Review current state (where we’re at)– feedback from Senior Team Offsite

• Present/discuss upcoming plans & activities– Communication– HR– discuss cascading process

• Next steps

Executive Summary

Since Canadian Tire communicated its Statement of Purpose and Vision alongside the Corporate Strategic Plan in September 2001, considerable work has taken place to:

a) evolve the Statement of Purpose and Vision further; andb) engage the organization to create common Team Values

andLeadership Expectations

STRATEGIC PLAN LAUNCH

PURPOSE &VISION

DEVELOPMENT

EXECUTIVE/CTDA

VALUES

VALIDATION &

REFINEMENT

VALUES INTERVIE

WS

CT WAY LAUNCH TO

SR. LEADERSHI

PJan-July ‘01 Sept. ‘01 Jan. ‘02 April ‘02 June ‘02 Sept. ‘02

ROLLOUT

Executive Summary

On June 14th the new Canadian Tire Way was launched to the Senior Leadership team.

A window of opportunity now exists toenergize and align the entire Canadian Tire team around the Canadian Tire Way and engage them in our new Team Values. People understand our business direction and priorities, now we must move to create excitement and energy behind our largest lever in the organization -- the strength and alignment of our team.

While the first step has been taken, there is significant work to be done in order to truly embed the Canadian Tire Way with every single team member across the enterprise.

Key Principles Review

• Leadership should lead

• However, bottom-up engagement is one of the most powerful aligning mechanisms available. Bottom-up engagement and involvement is therefore key

• One-off tactical communication will not work

• Tailoring the delivery is essential, but the core essence must remain intact

Phased communication approach

Sca

le

of e

ngag

emen

t

Timelines to Execute

Senior Leadership Engagement

Awareness-Building

Communication

OrganizationalEngagement

Awareness Strategy: Updating Signage/Materials

• One of the most obvious places to start in building awareness of the Canadian Tire Way across the organization is to look at the things people see and read every day:– on the walls– on their computers– in the materials they receive

• A signage review has been conducted at Home Office, the DCs and CTFS and a number of immediate and longer-term opportunities have been identified.– we have a large number of vehicles in various locations that still

use wording from the old vision statement– some work has been done in pockets, but a planned update

across the board is required

Awareness Strategy: Updating Signage/Materials

• A number of elements have already been updated/revised to reflect our new Statement of Purpose, Vision and Team Values:– ID Cards/Security Badges

• new and replacement cardshave updated purpose

• we believe we shoulddevelop a plan for updatingcurrent employees’ cards

– Information on ourcorporate website

– PR materials:Fact Sheets, Backgrounders

Our Statement of Purpose, Vision, Team Values and Leadership Expectations have been translated.

Awareness Strategy: Updating Signage/Materials

• A number of opportunities have been identified that require immediate updating to reflect our new Statement of Purpose, Vision and Team Values:– 8th floor reception signage– painted and hanging wall signage at the DCs– information on InTireNet

• A number of new ideas have been identified and will be pursued:– business card– email signature– screen saver– bulletin boards on

each floor– on-hold phone

messages

WE AREA PROUD CANADIAN FAMILY

We exist to serve and enrich the lives of our customers, our shareholders, our

team and our communities.

Awareness Strategy: Updating Signage/Materials

• A number of additional opportunities have been identified that will be made available to the organization on a ‘pay-for-use’ basis:– 18 x 24 wall poster (can be framed or laminated)– trinkets: mugs, mousepads, calendars, etc.– lanyards and laminated cards

Awareness Strategy: Updating Signage/Materials

• In addition, our new Statement of Purpose, Vision and Team Values will be incorporated into the following materials the next time they are created:– Annual Report– Seasonal Gift Box - message from Wayne

• Through the review, a number of opportunities were also identified within HR, including:– New Employee/Orientation information– Retail 101– Recruitment materials– Job descriptions– Dealer Selection applications/materials– Petroleum agent applications/materials– Leadership Resource Process

Awareness Strategy: Creating Energy

• It’s important to support the launch of information (through senior leadership) and the updated signage with additional elements that will build energy and excitement around the Canadian Tire Way.

• These activities will build upon each other to build and sustain momentum around the Canadian Tire Way over time.

• The objective of these tactics is to reiterate the key messages of the Canadian Tire Way by:– bringing the Statement of Purpose, Vision and Team Values to

life with illustrative examples– having some fun

Awareness Strategy: Creating Energy

• Internal newspaper special feature– reflect Globe & Mail look -- masthead,

font, newsprint– communicate the framework and spend

time articulating each of the keyelements of the Canadian Tire Way

– elements to include:• pictures (people winning WOW award)• articles, editorials, letters to the editor,

first person/opinion stories• fun stuff (crossword, horoscope, comic)• ads for Team Values, etc.

Awareness Strategy: Creating Energy

• Employee brochure– leverages work done on Leadership

Guide (look, messaging)– supports information being

cascaded by senior team– can be used as a reference

guide for the Canadian TireWay (handbook)

– distribution will be customized(eg. desk drop at HO, homemailing at DCs)

– opportunities to leverage in newemployee/Orientation packages

Awareness Strategy: Creating Energy

Other Ideas• Significant coverage in Team Canadian Tire publication

– Fall issue

• CEO voicemail program to reinforce keymessaging

• Regular messaging on back of pay stubs

• Dealer Convention– significant coverage in CEO’s address

(specific messaging being discussedand crafted in the coming weeks)

Engagement Strategy: Supporting Sr. Leadership

• Support senior team with launch of the Canadian Tire Way– received guide at senior team offsite– received message (with slides) from Janice asking them to begin

engaging their teams– thank you letter and framework sent to 400 participants

• Ensure upcoming Quarterly Contact Forums are used as an opportunity to actively engage the organization on a divisional-specific level about the Canadian Tire Way– IT Forum: September 25th– Supply Chain Contact Forum: September/October (TBC)– CTFS Contact Forum: October 2nd– CTR Forum: October/November (TBC)

Do we need a formal process to support/track/monitor the cascade from the senior team?

Engagement Strategy: Organizational Engagement

• Roundtable on the Future (HR-led)– Groups of approximately 35-50 pulled together from across the

enterprise and engaged in a dialogue about the Canadian Tire Way• Customer, market and competitive inputs• Statement of Purpose, Vision, Team Values, Leadership inputs• Are we living what we are saying? • Create an action plan for the future -- the things we must change as an

organization to be successful in living the Canadian Tire Way, a rallying cry to energize the organization.

• Video of event used to “story tell” in other engagement activities

• Executive Roundtable/”Coffee with” sessions– Sessions hosted by an individual Officer monthly with random groups

of 10-15 team members -- all levels• Are we living the values, personal perspectives, snapshot of team views,

etc.

Engagement Strategy: Recognition Activities

• Recognition Activities:– Launch new recognition program (replace Wall of Winners)

• criteria matches team values

– redo WOW wall on the 8th floor• leverage current Canadian Tire Way look (eg. flag, black and red,

etc.)

– Revamp ‘WOW Zone’ on InTireNet

– Create regular video profiles of stories thatexemplify team values to show at groupForums

Communication Approach

• High-level ideas for how we’re going to approach this launch to ensure success:– engage everybody -- all levels, all parts of the business

(includes two-way communication)– make it real, bring it to life -- right now it’s just words on a

page– leverage State of the Tire messaging, look & feel -- the

presentation resonated with our team– leverage technology (eg. CT Live, InTireNet) -- signals change /

something new

• Two tiers to the approach– Awareness Strategy– Engagement Strategy

Timing: A Six Month View

JULY –AUGUST

Reconnect with senior leadership team re.cascade process

Develop implementation plan for replacingsignage and executing other tactics

Begin signage/materials updating

SEPTEMBER Desk drop internal newsletter (target Sept. 3) Distribute Employee Handbook Dealer Convention (Sept. 14-17) Support Contact Forums Continue signage/materials updating

OCTOBER –DECEMBER

Execute other awareness & engagementactivities

Support Contact Forums Continue signage/materials updating