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

©2014 Walgreen Co. All rights reserved.

“Next Practices” at Walgreens: Metrics to Drive and Measure Strategy

Corinne A. WolcottManager, 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


Walgreens:At the Corner of Happy & Healthy®

• 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

Team: 248,000 Fiscal Year 2013:

• $72.2 billion sales

• $2.45 billion net earnings

©2014 Walgreen Co. All rights reserved.

Our Diversity & Inclusion Journey

• 2007 • 2008 • 2009 • 2010 • 2011 • 2012 • 2013 • 2014 • 2015

2011: Steve Pemberton is appointed the company’s first Chief Diversity Officer and the Office of Diversity & Inclusion is established.

2010: Community Corner rolls out in stores to allow consumers to easily identify and purchase products produced by diverse companies.

2014: D & I Team is featured in Diversity Executive Magazine.

2014: OFCCP Task Force for 503/VEVRAA launched.

2011: Initial pilot of REDI program which has now launched nationwide.

2012: Diversity & Inclusion ‘Next Practices’ comprehensive strategy launched and implemented enterprise-wide.

2007: Walgreens becomes a federal government contractor.

2007: Walgreens Anderson DC is the first to rollout our innovative DC Disability Program.

2007:Business Resource Groups launch at corporate offices.

2013: Regional Diversity Councils launch.

2011: Diversity Best Practices #26 for Supplier Diversity, published 5+ times since 2011.

2012: Integrated Supplier Diversity into D & I Strategy with full metrics across the business and doubled Tier 2 reporting.

2012: D & I Awareness training rolled out to all team members.

The “Next Practices” Model

© Copyright 2010 Walgreen Co.

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

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

STRATEGY• Comprehensive

D & I Strategy• D & I BU/

Functional Strategy

DIVERSITY & INCLUSIONNEXT PRACTICES



strategies






programs




Functional Strategy




strategies






programs




Functional Strategy


Measurement & Assessment


Design and Focusing in on Key Opportunities

•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

• 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


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


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

13

Engagement (Q12) ItemsComposite 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.

Measuring Engagement and Inclusion

• Copyright © 1993-1998, 2001, 2014 Gallup, Inc. All rights reserved.

• Note: Q07. My Opinions Count part of both metrics

Insights into Action


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.


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

Measure:

Stakeholders:

Culture • Engagement• Inclusion • Education & Skill

Building• Branding &

Communications• Accountability

Measure:

Stakeholders:

= On Track = Limited Progress = Lack of Progress


Key Takeaways

1. Inclusive collaboration and accountability drive sustainable change

2. Start the conversation with what works and build upon strengths

3. Design matters

4. Establish customized, specific and actionable strategies- avoid trying to “boil the ocean”

5. Align to business objectives and mainstream processes

Thank You and Be Well!

Please contact me:[email protected]

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Documents

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