1. Culture 1

2. Overall, Distribution is happy in the “harder” aspects of the business and frustrated in the “softer” issues
1.5 3
2.25
0.75 2
3.5 5
2.5
4.5 4
Complacent
Ambitious
Are we complacent about improving service?
Customer Focus
Is there a lack of drive for improvement?
Commitment to Quality
As-Is
Management Behaviour
Direction
Accountability
Feedback
Fairness
Cross-functional teamwork
Decision-making
Communication
Recognition
Learning environment
Valued
These are some of the largest gaps we have seen from our experience in other companies
Blind Spot
Frustrated
Gap
Source: Culture Survey responses n = 230.

3. Top Gaps Management vs Non-Management
In eight qualities there was a significant gap between the perception of management and other levels
Opportunities to improve both customer focus and quality are seen as small by everyone, yet non-managers recognise more of an issue than management.
This is a challenge in improving our service to stores
Top Gaps Management vs Non-Management
1.5 3
2.25
0.75 2
3.5 5
2.5
4.5 4
(Too) Happy?
Shopfloor employees explained why they are frustrated:
Feeling Valued: “We’re treated like monkeys in a cage the minute we walk through the door”
Consistency of Management Behaviour: “Over a year ago we were measured up for new uniforms but still no clothes - just a lot of promises”
Recognition: “If you are out of order you expect to get a bollocking. If you do something well, it is expected of you, so you won’t get praised”
“Supervisors who praise you make all the difference”
Accountability: “If anyone at Management level messes up, they’ll always pass the buck down”
To move ahead, this perception gap will need to be closed
Ambitious
Customer Focus
Commitment to Quality
As-Is
Feedback
Fairness
Accountability
Management Behaviour
Feedback on company and personal performance represents the largest gap between managers and workers. The fact that managers do not feel a need to improve on this could be a barrier to change moving forward
Management
Non-management
Recognition
Valued
Blind Spot?
Frustrated
Gap
Source: Management = M 5-7; E 3-MU, E1-E2; Focus Group, n = 61

4. “Culture change needs to start at the top”
Distribution has made a start in launching initiatives but they are yet to be felt by employees
The 3 Year People Plan
Initiative
Results
Lessons Learned
“People initiatives don’t hold the same importance; when we are hectic they get dropped”
Top line customer service
Highlighting opportunities to serve stores better
Adopt a Store
Store Visits
A limited pilot in 2 depots which has not been implemented elsewhere
Seen as a good idea but has fizzled out in most depots
The need to follow through, get a critical mass and not be seen as a “flavour of the month”
The need to involve the entire staff in an issue they can relate to
1. Customer Focus
2. Staff Involvement
Dignity at work
Training to deal with harassment
Establish Distribution Culture Developmental Board
Suggestion Schemes
Highly visible programme that was seen to have made a difference
Increased visibility of what Distribution is trying to achieve within the business
Project at a standstill
The need to involve the entire staff in an issue they can relate to
“Culture change needs to start at the top”
3. Staff Development
Personal reviews
PDP for section managers
Depot site newsletters
Distribution brief from support
Driver development plan
None yet (new)
Mixed reception at sites
Unknown
4. Supervisory Style
Section manager role redesign
Viewed as a good idea but some issues
The need to also redesign the roles that interface with the section manager
5. The Collective Relationship and the Individual
Salmon book
New way of negotiating with Unions
None yet (new)
A key factor in implementing cultural change is leaders role-modelling new behaviour.
Source: Distribution 3 year People Plan, Jan 1998; Initiatives Review.

5. Culture Map, Support vs Depots
A significant difference exists between Support and Depots on areas which link employees to (Client Name)
Culture Map, Support vs Depots
1.5 3
2.25
0.75 2
3.5 5
2.5
4.5 4
Complacent
Ambitious
There appears to be a correlation between how connected people feel to (Client Name) and the number of levels and spans
Feedback
Communication
Valued
As-Is
Support
Depots
Blind Spot
Frustrated
Gap
n = 42 Support, n = 188 Depots.

6. Surprisingly, there are some key differences in perceptions between depots
Top 5 Gaps
3.5
HINCKLEY
HINCKLEY
Quality
Direction
HINCKLEY
Management Behaviour
Depot J and Depot D had the largest overall gaps across all cultural qualities, showing a higher level of frustration in how things are versus how they should be
HARLOW
Communication 3
CRICK
HINCKLEY
Feedback
HARLOW
WELHAM
As-Is
CRICK
2.5
For executive use only
Blind Spot
Frustrated 2
1.5 3
2.25
0.75
Gap
There is no real correlation amongst Dry Grocery or Composite depots.
Source: Study Depots; Largest gaps between lowest depot score and highest, n = 188.

7. Characteristics of Low Performance Cultures
Implementing a high performance culture can provide significant financial benefits
“The economic and social costs of low performance cultures” ( )
(Client Name) on the whole, appears to be on the way to a high performance culture. Is Distribution keeping up?
Characteristics of Low Performance Cultures
682%
395%
166%
282%
71%
36%
901%
805%
74%
756%
540% 0%
(Client Name)
Unclear vision
Internally focused
Lack of accountability
Unclear roles and responsibilities
Success means following the rules
Emphasis is on status within the hierarchy
Poor information flow
Reactive vs pro-active
Source: Kotter, Heskell (1992), Datastream, (Client Name) Annual Reports.
Note: Companies in the supermarket sector may not be expected to grow as fast as other industries.

8. Distribution Radar Screen
Focusing people on delivering customer service requires tackling the cultural issues on their radar screen
Distribution Radar Screen
Feel valued and communicated to as part of a team
Feedback and recognition for job performance
Discipline in taking accountability and having managers keep their promises
What people want:
Commitment to Quality
Customer Focus
Managers need to be staff focused to ensure staff are customer focused.