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1 SUPERVALU Diversity & Inclusion Overview Darnell Allen Vice President, Diversity and Inclusion SUPERVALU

1 SUPERVALU Diversity & Inclusion Overview Darnell Allen Vice President, Diversity and Inclusion SUPERVALU

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Page 1: 1 SUPERVALU Diversity & Inclusion Overview Darnell Allen Vice President, Diversity and Inclusion SUPERVALU

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SUPERVALU Diversity & Inclusion

Overview

Darnell AllenVice President, Diversity and InclusionSUPERVALU

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About SUPERVALU

Fortune 50 company

Fortune “Most Admired” company

Third-largest grocery company in the United States

135 years of industry experience

Acquisition of premier retail properties from Albertson’s Inc. on June 2, 2006

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A legacy of service and innovation with 36 distribution centers deliveringbest-in-class supply chain services

Unique blend of retail formats and capabilities in geographically and demographically diverse markets

A legacy of service and innovation with 36 distribution centers deliveringbest-in-class supply chain services

Unique blend of retail formats and capabilities in geographically and demographically diverse markets

Supply Chain Services

Grocery Retail

Grocery Retail and Supply Chain Leadership

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The industry was evolving

ConsolidationEntry of mass and niche retailers

SUPERVALU had a long-term plan to grow retail presence through acquisition

September 2005: The game changes

Albertson’s Inc. announces decision to sell assets

The industry was evolving

ConsolidationEntry of mass and niche retailers

SUPERVALU had a long-term plan to grow retail presence through acquisition

September 2005: The game changes

Albertson’s Inc. announces decision to sell assets

We had the opportunity to changethe face of SUPERVALU and

the grocery landscape

Focus on the Future

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Acquired more than 1,100 premier retail properties

Acme

Bristol Farms

Jewel-Osco

Shaw’s and Star Markets

Albertsons in Idaho,Utah, Nevada,Southern California

Sav-On and Oscoin-store pharmacies

Acquired more than 1,100 premier retail properties

Acme

Bristol Farms

Jewel-Osco

Shaw’s and Star Markets

Albertsons in Idaho,Utah, Nevada,Southern California

Sav-On and Oscoin-store pharmacies

Company Sales

Wal-Mart Stores $ 317.3

Kroger Co. $ 59.9

The New SUPERVALU $ 44.0**

Albertsons $ 41.3

Safeway $ 38.6

Ahold USA Retail $ 22.6

Publix Super Markets $ 20.1

SUPERVALU $ 19.9

Delhaize America $ 16.6

Top U.S. Grocery Companies Based on Total Sales*

* Supermarket News “Top 75” Grocery Retail, January 2006.**estimated

June 2, 2006: A Monumental Date

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A Transformed Retail Powerhouse with Excellent Future Growth Potential

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“We know that driving towards deepening our understanding

of diversity every day is vital to continuing to serve our

customers and our associates better than anyone else can.”

“We know that driving towards deepening our understanding

of diversity every day is vital to continuing to serve our

customers and our associates better than anyone else can.”

Jeff NoddleChairman & CEO, SUPERVALU

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Our diversity and inclusion strategies and initiatives will always…

Meet our customer needs better than anyone else, coast-to- coast and border-to-border

Improve performance and profitability to be the best place to invest in our industry

Build an energetic and productive environment where diverse associates, customers and vendors are treated with courtesy, dignity and respect

Leverage talent and resources to be the best place to work in our industry

Our diversity and inclusion strategies and initiatives will always…

Meet our customer needs better than anyone else, coast-to- coast and border-to-border

Improve performance and profitability to be the best place to invest in our industry

Build an energetic and productive environment where diverse associates, customers and vendors are treated with courtesy, dignity and respect

Leverage talent and resources to be the best place to work in our industry

Diversity and Inclusion ~ Mission Statement

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Managing Our Diverse Workforce

Understanding Differences

External Marketplace

Diversity Representation

Managing Our Diverse Workforce

Understanding Differences

External Marketplace

Diversity Representation

The Four Pillars of Diversity and Inclusion

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2007 Supermarket News Champion of Diversity

100% on 2008 and 2009 Human Rights Campaign Corporate Equality Index

2008 Twin Cities PRIDE Corporate Achievement Award

Progressive Grocer recognized five of our women leaders

2007 Supermarket News Champion of Diversity

100% on 2008 and 2009 Human Rights Campaign Corporate Equality Index

2008 Twin Cities PRIDE Corporate Achievement Award

Progressive Grocer recognized five of our women leaders

Recognition

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What are Employee Resource Groups?

Groups of associates who participate in initiatives and activities with others of a similar race, ethnicity,

gender or common interest

Benefits of Business Resource Groups

Foster diversity and inclusiveness within the company

Recruit and retain diverse associates through mentoring

Support and participate in community events

Assist with marketing activitiesto drive shareholder value

Offer valuable viewpoints oncompany projects & policies

What are Employee Resource Groups?

Groups of associates who participate in initiatives and activities with others of a similar race, ethnicity,

gender or common interest

Benefits of Business Resource Groups

Foster diversity and inclusiveness within the company

Recruit and retain diverse associates through mentoring

Support and participate in community events

Assist with marketing activitiesto drive shareholder value

Offer valuable viewpoints oncompany projects & policies

Employee Resource Groups

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What is the difference?

In addition to a shared affinity, Business Resource Groups emphasize the value the associates provide on the business perspective and help leaders and business units proactively reach out for assistance from them.

What is the difference?

In addition to a shared affinity, Business Resource Groups emphasize the value the associates provide on the business perspective and help leaders and business units proactively reach out for assistance from them.

Employee Resource Group

Employee Network Group

Affinity Group

At SUPERVALU, Affinity Groups evolved to

Business Resource Business Resource GroupsGroups

What is in a Name?

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Asian: Southern California

African American/Black: So Cal, Home Office

Hispanic/Latino: Southern California, Home Office, Boise

Women: So Cal, NW, Boise, Salt Lake City, Shaw’s, ACME, Home Office, Cub, SUPERVALU India

Multicultural: NW, ACME, Jewel-Osco, Northern Region, So Cal, Save-A-Lot, Shoppers, MPLS DC, Hornbacher’s, Shop ‘n Save, Las Vegas

GLBTA: Boise, Shaw’s, Home Office

Asian: Southern California

African American/Black: So Cal, Home Office

Hispanic/Latino: Southern California, Home Office, Boise

Women: So Cal, NW, Boise, Salt Lake City, Shaw’s, ACME, Home Office, Cub, SUPERVALU India

Multicultural: NW, ACME, Jewel-Osco, Northern Region, So Cal, Save-A-Lot, Shoppers, MPLS DC, Hornbacher’s, Shop ‘n Save, Las Vegas

GLBTA: Boise, Shaw’s, Home Office

Business Resource GroupsTotal Business Resource Groups Currently: 29

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The 2008 Catalyst Benchmarking Survey

showed that 83 percent of surveyed companies support employee resource groups.

The 2008 Catalyst Benchmarking Survey

showed that 83 percent of surveyed companies support employee resource groups.

2008 Catalyst

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Reduction in turnover

Less absenteeism

Increased associate productivity

Improved bottom line

Increased organizational competitiveness

Require little financial backing

Reduction in turnover

Less absenteeism

Increased associate productivity

Improved bottom line

Increased organizational competitiveness

Require little financial backing

Source: www.SHRM.org

Top Business Reasons for Resource Groups

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Find a champion and gauge associate interest

Craft a Mission statement or statement of purpose

Establish goals – both short-term and long-term

Detail tactics on accomplishing the goals, along with a timeline

Enlist support of an executive sponsor

Define how the group’s mission and goals relate to the company’s core values

Find a champion and gauge associate interest

Craft a Mission statement or statement of purpose

Establish goals – both short-term and long-term

Detail tactics on accomplishing the goals, along with a timeline

Enlist support of an executive sponsor

Define how the group’s mission and goals relate to the company’s core values

How do you start a Business Resource Group?

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Provide Structure

Operating Policy

Leadership Structure

Ask for solutions, not just problem identification

Determine how budget dollars will be

Establish goals around objectives

Support and further business objectives

Support recruitment for affinity of the group

Support the professional development ofthe group

Contribute to the community

Increase awareness of diversity

Provide Structure

Operating Policy

Leadership Structure

Ask for solutions, not just problem identification

Determine how budget dollars will be

Establish goals around objectives

Support and further business objectives

Support recruitment for affinity of the group

Support the professional development ofthe group

Contribute to the community

Increase awareness of diversity

How do you start a Business Resource Group?

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Goals and Objectives

Event Planning form

Monthly Webinar meeting

Annual Diversity & Inclusionforum

Goals and Objectives

Event Planning form

Monthly Webinar meeting

Annual Diversity & Inclusionforum

Resources to support BRGs contributions at SUPERVALU

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Monthly Business Resource Group call

E-mail: [email protected]

Home Office Diversity & Inclusion Bulletin Board

Web site

Mission statement

Business Resource Group sites

Quarterly newsletter

Monthly Business Resource Group call

E-mail: [email protected]

Home Office Diversity & Inclusion Bulletin Board

Web site

Mission statement

Business Resource Group sites

Quarterly newsletter

How we Communicate

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Business Opportunity: Gain increased market share with growing segment and buying power of the GLBTA community.

Goal: Achieve 100% rating on Human Rights Campaign Corporate Quality Index.

Action: Identify gap and communicate the internal and external benefits of closing this gap.

Outcome: Addressed gaps with support of senior leadership and achieved 100% rating on 2008 HRC Corporate Quality Index becoming the first grocery chain to do so.

Business Opportunity: Gain increased market share with growing segment and buying power of the GLBTA community.

Goal: Achieve 100% rating on Human Rights Campaign Corporate Quality Index.

Action: Identify gap and communicate the internal and external benefits of closing this gap.

Outcome: Addressed gaps with support of senior leadership and achieved 100% rating on 2008 HRC Corporate Quality Index becoming the first grocery chain to do so.

BRGs are Good for Business

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Successful companies learn to recognize the potential of Business Resource

Groups and to harness the potential to drive business results.

Successful companies learn to recognize the potential of Business Resource

Groups and to harness the potential to drive business results.

Final Notes

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2008 NEW Integrating

Diversity