©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
©2014 Walgreen Co. All rights reserved. 3
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
© 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
© 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
Measurement & Assessment
©2014 Walgreen Co. All rights reserved. 10
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
©2014 Walgreen Co. All rights reserved. 11
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
©2014 Walgreen Co. All rights reserved. 12
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
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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.
©2014 Walgreen Co. All rights reserved. 16
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
©2014 Walgreen Co. All rights reserved. 17
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