1 Introduction

2 The Current Candy Masters Center: David Shaffer, Co-CEO Right: Ross Born, Co-CEO

3 Matthew V. “Matt” Petronio Executive Vice President and Chief Operating Officer mmmmm m

4 An Inventor’s Touch

5 Just Born Brands

6 Peeps getting born

7 Beans Factory Tour

8Panning

9 Where in the World is… Just Born? Canada U.S. Mexico Caribbean/ Panama Puerto Rico South Africa Middle East Israel U.K. Ireland Singapore Korea Japan Philippines New Zealand Australia

10 Agenda Overview of Market Driven Research methodology Five practices of Market Driven HR Leaders Summary Q&A

11 Here is the foundation of the study: All areas and all levels of the company involved. Likely common people practices for HR Leaders. The purpose of this study –identify the characteristics and advantages of market driven businesses –define the most effective human resource practices involved.

12 Defining Market Driven Market driven organizations demonstrate superior skills in understanding, attracting, and keeping valuable customers. Customer Focus Delivering superior customer value Selectively nurturing customers with the highest profit potential Anticipating opportunities Responding to, or leading the dynamics of the industry Day, 1999

13 Customer Focus Customer Vision & Mission Distinctive Relationship Direct Contact Company Alignment Corporate Culture

14 Eye on the competitive landscape Competitor Product offerings Value as defined by customers Capabilities Role in the market Value proposition

15 Results of being market driven 31% more profitable –2% increase in customer retention has same profit impact as cutting costs by 10% –5% reduction in customer loss can increase profits by % depending on industry Twice as fast at getting new products to market –Ability to see and respond to market opportunities 10-20% higher in customer satisfaction levels –Customer relationships and loyalty Meyers 2008 Citing Pragmatic Marketing Study

16 Research methodology Literature review Quantitative data collection Survey Monkey 98 participants Business/ HR leader interviews 10 Business & HR leaders Variety of industries

17 Primary Research Quantitative Data Collection

18 Most considered market driven 2 way communication with customers Alignment with core values which kept customers in the forefront Nimbleness in the marketplace Not market driven at all –Not focused or not focused on the customer

19 HR’s contribution Organizational Des.

20 Most important thing HR can do 1.Talent Management 2.Strategic HR HR Business Partner HR practices aligned with strategy 3.Help employees focus on strategy 4.Demonstrate business acumen Know the key drivers, competitive landscape and financials of the business 5.Advocate for employees Make it a great place to work

21 Business Leaders said Common suggestions –Remain connected with customers Embassy Bank customer for life Heinz food’s diversity initiative to align with customer affinity groups –Keep employees focused on customer needs –Maintain external focus –Talent management –Become a great place for your employees to work

22 Implications from research

23 Five practices of Market Driven HR Leaders Relentless attention to Talent Mgt Deliver strategic action Market Driven HR Drive alignment Continuously improve External Focus

24 External focus starts with the business Vision Our vision is to be the earth’s most customer centric company; to build a place were people can find and discover anything they might want to buy online. Purpose statement Save people money so they can live better. Mission To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Mission statement Dedication to the highest quality of customer service delivered with a sense of warmth, friendliness, individual pride and company spirit.

25 External Focus for HR Learn the industry Understand the competitive landscape –Who are the customers? What do they want/need? –Who are the competitors? What are their strengths and weaknesses? What is their position in the marketplace? –What are the trends in the market? Identify the people practices of the customer, the competitors Stay abreast of best practices that may apply to your business

26 Deliver strategic action Immerse yourself in the company strategy Seek opportunities to create value Concentrate on delivering business impact Use metrics that matter and share them with business leaders Align HR strategy with overall business imperatives.

27 Relentless attention to talent management Right people in the right roles with the right skills for the current and future needs Identify the talent brand and value proposition –Embassy bank approach to hiring Drive improved performance Get clear about what the right competencies are, then build or find them Create an environment for retention –Workplace of choice

28 On becoming a workplace of choice Key strategic objective for Wal-Mart in 2005 is to make the company an even better place to work. Diversity training for all supervisors Cash registers set to shut down so people will take breaks HR available 24 hours a day Leadership development and mentoring for women Allbusiness.com HR Business Partners. Long term career paths for employees Amazonians on Amazon Amazon.com/inside careers

29 More examples Employees are called partners Focus on diversity HR Theme -Love what you do! All partners get an education in coffee from roasting to tasting Senior leaders hold open forums to connect with all levels of the organization Monthly mingle events and Partner Clubs Best place to work 5 different years Starbucks.com Power of relationship Recognition on the website of employees by CEO Best place to work The southwest Way –Warrior spirit –Servants Heart –Fun Loving attitude Investment in learning –University for people –Leadership development –Job shadowing –Promotion from within Southwest.com

30 Drive alignment Understand, interpret and clearly articulate the mission Communicate to build alignment Organize performance measures to align with the market driven approach Design the organization to respond to customer and market needs Reward market driven behaviors and accomplishments.

31 Continuously improve Good enough is NEVER good enough! Plan Do Check Act

32 In summary There are some common HR practices of Market Driven companies HR must demonstrate the five practices of market driven businesses –External focus –Strategic HR –Relentless attention to talent management –Align people with strategy –Continuously improve HR has a key role to play!

33 Questions & Answers

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