The Canadian Tire WayUpdate

August 15, 2002

Today’s Objectives

• An update and open discussion on The Canadian Tire Way

– Recap of where we are;

– Update on activities since the Senior Leadership Meeting;

– Discussion on conceptual approach to broader organizational engagement.

Recap of where we are

Since Canadian Tire communicated its Statement of Purpose and Vision alongside the Corporate Strategic Plan in September 2001, considerable work has taken place to:

a) evolve the Statement of Purpose and Vision further; andb) engage the organization to create common Team Values

andLeadership Expectations

STRATEGIC PLAN LAUNCH

PURPOSE &VISION

DEVELOPMENT

EXECUTIVE/CTDA

VALUES

VALIDATION &

REFINEMENT

VALUES INTERVIE

WS

CT WAY LAUNCH TO

SR. LEADERSHI

PJan-July ‘01 Sept. ‘01 Jan. ‘02 April ‘02 June ‘02

ROLLOUT

OF CTW

We have taken a phased approach to build alignment

Sca

le

of e

ngag

emen

t

Timelines to Execute

Senior Leadership Engagement

Awareness-Building

Communication

Organizationaland Tactical Engagement

Activities since the Senior Leadership Meeting

• Audit of “obsolete” Vision and Values material around the organization

• Planning for next level of awareness and engagement– Enterprise-wide– CTFS / Fall Contact Forums– Supply Chain / Fall Contact Forums

• Creation of supporting materials and integration of “quick wins”

• Further engagement and discussions with Associate Dealers

• Updating of high profile applications– Canadian Tire website– InTirenet– Dealer materials– Recruitment materials

Approach to broader organizational engagement

• A “product launch” approach won’t work -- this change must be integrated into our operations, sustained with supporting tools & materials and led from the top

• The Senior Leadership Team meeting represented the first formal engagement to build senior level alignment

Now the tough work must begin to build awareness and engage the entire organization, energize our people behind the concepts and drive alignment.

CEO and Executive Leadership: Change is led by CEO, actively supported by Officers of the organization, who hold the senior team accountable for sustaining the Canadian Tire Way

– Cascading engagement within the businesses tailored to their circumstances

– Approach is tailored to the business needs of each unit, but central themes and messages MUST be consistently applied

Two tracks to gain alignment: Top-down engagement and bottom-up pressure will be applied organizationally to ensure we gain traction

– awareness building communication – tactical engagement.

Active Dealer Engagement to drive the change to the store level

Conceptual Approach

2.

3.

1.

Conceptual Approach

CEO & Executive Leadership

• Create a CEO platform (Personal Communication Plan) to create opportunities to lead this change and demonstrate by example:

– Illustrative Platform: • Dealer Convention: Keynote address using Purpose, Vision, Team Values

and Leadership Expectations as the primary message• Performance management: Include personal objectives by Officers related

to Canadian Tire Way, and hold Officers accountable to these objectives.• Incorporate key themes into all CEO communication channels (voicemails,

State of the Tire, publications, etc).• Create and execute the Coffee with the CEO program, creating a forum for

15-20 team members to meet informally with CEO to talk about the organization.

• Incorporate values into CEO’s personal communications (tagline on email messages, personal letters, etc)

1.

Conceptual Approach

CEO & Executive Leadership (continued)

• Ensure the Executive Leadership champions The Canadian Tire Way and is held accountable for its integration as a way of life.

– Illustrative Platform: • Each Officer will have a personal objective related to Canadian Tire Way in

which they will be held accountable• Extend the Coffee with the CEO program concept to all Officers on a rotating

basis to create opportunities for them to engage team members in discussion about our values, priorities and related issues

• Where necessary, implement development plans to foster additional alignment with The Canadian Tire Way

• Align Performance Management system closer to Canadian Tire Way, including recruitment decisions, promotions and feedback / coaching

– Ensure Officers actively communicate people issues in context of Canadian Tire Way

1.

Conceptual Approach: Awareness & Engagement Strategy

Awareness Building Communication

• Illustrative Program

– High Profile Applications (Change the Symbols)• Signage, ID Cards/Security Badges, Business cards, Email Signature, On-hold messaging,

seasonal gift box

– Tactical Communication• Desktop screen saver, 12-month calendar, Framed Posters 16x20 posters in high traffic

locations, pay stub values communication• “Pay for use” catalogue: laynards, mugs, caps, etc• Canadian Tire Times (see sample)• Little Red Book

The approach we propose taking is to use leadership influenceto drive top-down engagement, supported by bottom-up pressure from awareness building communication

2.

Samples

Samples

WE AREA PROUD CANADIAN FAMILY

We exist to serve and enrich the lives of our customers, our shareholders, our

team and our communities.

Conceptual ApproachAwareness & Engagement Strategy (continued)

Engagement

• Illustrative Program

– Continued “pressure” to engage our teams• Message from CEO to senior leadership, highlight wins in engagement to the rest

of the team and “remind” them of their commitments• Updates and request for feedback to senior leadership on the engagement process

– Revamping of core programs• Ie: Recruitment ads, orientation programs, performance management forms and

approach, job descriptions, training and development programs, LRP, etc.

The real driver of our success in sustaining change will be real,meaningful engagement that helps “institutionalize” Canadian Tire Way

Conceptual ApproachAwareness & Engagement Strategy (continued)

Engagement (Illustrative Program - continued)

• Interaction with Executives– Execute the “Coffee with the Executive” program in which small groups of

randomly selected team members will discuss our Purpose, Vision and Team Values

• Revamp core recognition activities:

– Launch new recognition program (replace Wall of Winners), redo WOW wall on the 8th floor, revamp ‘WOW Zone’ on InTireNet, and execute WOW letters immediately.

Conceptual ApproachDealer Engagement Strategy

3. Dealer Engagement Strategy

More than two-thirds of the Canadian Tire team works in the store network -- to affect wide-spread change, we must reach out to the Dealer network and ensure alignment with The Canadian Tire Way

Illustrative Program

• Keynote address at Dealer Convention with Team Values and Leadership Expectations as the core theme

• Working with CTDA and select Dealers, develop a pilot program that tests and validates our values and the most effective approach to rolling-them out organizationally

• Execution of Little Red Book tailored to CTR, extending to include customer standards

Timing: A Six Month View

JULY –AUGUST

Further engage senior leadership team Develop implementation plan for replacing

signage and executing other tactics Begin signage/materials updating

SEPTEMBER Desk drop CT Times, Team Canadian TireGuide, and Calendar

Dealer Convention Support Contact Forums Continue signage/materials updating

OCTOBER –DECEMBER

Execute other awareness & engagementactivities

Support Contact Forums Continue signage/materials updating CTDA/Dealer Pilot, Present, and Rollout National Rollout