Team Values Executive CTDA Session January 18, 2002

2 Agenda Introduction Opening Remarks Appreciative Interviewing Paired Interview Exercise Break Team Values Video Table Group Work on Value Themes Lunch Break Out Group Work on Value Statements and Actions Break Out Groups Report Back Closing

3 “In the last analysis, organizations exist because stakeholders who govern and maintain them carry in their minds some sort of shared positive projection about what the organization is, how it will function, and what it might become.” David Cooperrider Change Consultant

4 Overall Purpose To collectively establish a set of values which will guide Canadian Tire into the future.

5 Today will be Successful if you: 1Learn 2Are Inspired 3Leave Committed

6 The World of Business is Changing... Explosion of information & communication Accelerating changes in technology Increasingly intense global competition New business models… e-commerce Shorter product life cycles More diverse, multi-cultural workforce Higher expectations for quality, value and service

7 The Key to Competitive Advantage “The ability to learn faster than your competitors may be the only sustainable competitive advantage.” Arie de Geus V.P. of Strategy, Royal Dutch Shell

8 How does an Organization Learn Faster? Deep alignment on purpose, values & vision Culture that fosters risk-taking & accountability Agreement on goals, strategy, structure & process Commitment to teamwork & coordinated action Free flow of high quality information & feedback Optimism, energy & openness to change Leadership that inspires through personal example Positive reinforcement & rewards for learning Commitment to personal & organizational success

9 Foundation for Sustainable Success

10 Foundation Definitions PURPOSE: The central, never-ending reason for which the company exists; timeless TEAM VALUES: The core beliefs and shared principles that guide decision-making and behavior; timeless VISION: An envisioned future for the enterprise; a vivid description of what the company is “becoming”; bound by time & environment MISSION: A tangible, large scale, long-term objective that inspires, challenges and focuses creative energy; bound by time & environment Source: Built to Last

11 What’s Different About Companies with a Strong Foundation? Source: Collins & Porras, “Built to Last”, 1994

12 Team Values: Who are we? Examples: “Integrity, quality, excellence, meritocracy, innovation, work hard / have fun, social responsibility, care for employees...” It’s not someone else’s list… It’s what’s in the gut… bone deep… no artificial flavors… not nice sounding platitudes… not words but true beliefs… not words but deeds. There’s no right ideology. What matters is the authenticity of the values and the complete alignment of the people, organization and processes to them. The crucial variable is not the content of the ideology but how consistently the company lives and breathes it in all that it does.

13 Team Values Development Process January - July 2001 September - October2001 November - December 2001 TODAY July 2001 STRATEGIC PLAN PURPOSE & VISION DEVELOPMENT PURPOSE/VISION/ STRATEGY COMMUNICATION EXECUTIVE/CTDA VALUES VALIDATION & REFINEMENT VALUES INTERVIEWS INTEGRATION Ongoing

14 Appreciative Inquiry: An “Open Moment” We live in worlds our questions create “ Be patient … and try to love the questions themselves. Live the questions now. Perhaps you will then gradually, without noticing it, live along some distant day into the answer.” Rainer Maria Rilke “Answers reflect the past. Questions advise you about the future.” Margaret Somerville, Founder McGill Centre for Medicine, Ethics & Law

15 Appreciative Inquiry: Simple Principles The way we know is fateful. Seeds of change are implicit in the very first question we ask. An organization’s story is constantly being co-authored. Positive images of the future lead our positive actions. Building and maintaining momentum for change requires large amounts of positive affect and social bonding.

16 Many Voices In total 366 employees were interviewed from all areas of the enterprise: Store & Dealer Level (includes CTDA) 94 AJ Billes 15 Brampton Dist 44 CTFS & Burlington Office 78 EAP 5 Home Office114 PartSource 12 Petroleum 4

17 “Today’s customers are leading a revolution against business as usual: They are demanding that companies recognize them as individuals and conduct business on their terms…today’s empowered customers are crying out to be treated with respect, dignity and courtesy.” Fred Crawford The Myth of Excellence

18 Exploring Moments of Leadership in Your Life Tell a story of a high point moment... A time when you were most alive, most engaged, most successful! When you reflect on this high point, what are the things you value most about your work and about Canadian Tire? Work in pairs. Take 15 minutes –10 minutes for each interview, –5 minutes to capture the essence of the interviews on post-it notes. –Switch roles and repeat.