Staffing for Tomorrow’s Sourcing Organization Sourcing Interests Group May, 2008 Graham Leary Vice President of Strategic Sourcing Winn-Dixie Laura Becker Senior Executive Recruiter SupplyStaff

Presentation Agenda Industry Staffing Challenges Today’s Employment Demographics & Staffing Forecasts What This Means for Sourcing/Outsourcing Organizations Key Steps for Developing a Resource Strategy Talent Acquisition vs. Development Summary of Learning’s Sourcing Organization Resource Strategies at Winn-Dixie Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s

Industry Staffing Challenges

Today’s Employment Demographics & Staffing Forecasts

What This Means for Sourcing/Outsourcing Organizations

Key Steps for Developing a Resource Strategy

Talent Acquisition vs. Development

Summary of Learning’s

Sourcing Organization Resource Strategies at Winn-Dixie

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

“ The definition of a good presentation is one that has a good beginning and a good ending – both preferably close together!”

The Denali Group of Companies “ Helping Our Clients Transform Their Supply Chains Since 1996” The Denali Group of companies includes: Denali Consulting - Supply Chain management consulting - Strategic Sourcing, Procurement Transformation, Logistics Optimization SupplyStaff - Supply Chain staffing and recruiting across all industries - both temp and direct hire services Denali Intelligence - Market Intelligence for Sourcing professionals - Web-based subscription service & custom research Formed in 1996, our only focus is Strategic Supply Chain Management Certified as a woman-owned business by WBENC

The Denali Group of companies includes:

Denali Consulting - Supply Chain management consulting - Strategic Sourcing, Procurement Transformation, Logistics Optimization

SupplyStaff - Supply Chain staffing and recruiting across all industries - both temp and direct hire services

Denali Intelligence - Market Intelligence for Sourcing professionals - Web-based subscription service & custom research

Formed in 1996, our only focus is Strategic Supply Chain Management

Certified as a woman-owned business by WBENC

Today’s Staffing Environment “ More than 25% of the working population will reach retirement age by 2010, resulting in a potential shortage of nearly 10 million workers.” (Inside Supply Management, March 2006, Avoiding the Labor Shortage) “ One fifth of this country’s large, established companies will be losing 40% or more of their top talent during the next five years. During the same period, the replacement pool of 35 to 44 year-olds will decline by 15%.” (Inside Supply Management, March 2006, Avoiding the Labor Shortage) Even with continued procurement technology advances, projected employment needs for procurement professionals is expected to remain consistent (Monthly Labor Review, Nov 2007) At the same time, employee commitment levels are also changing “ The average corporate worker will change jobs at least 7 times during their career” (Mercer HR Consulting) “ Only 47% of Americans say they’re satisfied with their jobs, dropping for over 60% in a similar survey 20 years ago” (Executive Board, 2007 Survey) Workers said they were dissatisfied with their workload, potential for growth, work/life balance, performance review processes, and promotion policies in their jobs. (Executive Board, 2007 Survey) “ Failing to manage your company’s talent needs is the equivalent of failing to manage your supply chain. And yet the majority of employers have abysmal track records when it comes to finding and retaining talent” (Peter Cappelli, Wharton Management Professor)

“ More than 25% of the working population will reach retirement age by 2010, resulting in a potential shortage of nearly 10 million workers.” (Inside Supply Management, March 2006, Avoiding the Labor Shortage)

“ One fifth of this country’s large, established companies will be losing 40% or more of their top talent during the next five years. During the same period, the replacement pool of 35 to 44 year-olds will decline by 15%.” (Inside Supply Management, March 2006, Avoiding the Labor Shortage)

Even with continued procurement technology advances, projected employment needs for procurement professionals is expected to remain consistent (Monthly Labor Review, Nov 2007)

At the same time, employee commitment levels are also changing

“ The average corporate worker will change jobs at least 7 times during their career” (Mercer HR Consulting)

“ Only 47% of Americans say they’re satisfied with their jobs, dropping for over 60% in a similar survey 20 years ago” (Executive Board, 2007 Survey)

Workers said they were dissatisfied with their workload, potential for growth, work/life balance, performance review processes, and promotion policies in their jobs. (Executive Board, 2007 Survey)

“ Failing to manage your company’s talent needs is the equivalent of failing to manage your supply chain. And yet the majority of employers have abysmal track records when it comes to finding and retaining talent” (Peter Cappelli, Wharton Management Professor)

Additionally, Supply Chain Skill Requirements Continue to Change .. and Your Organization Needs to Adapt New processes that didn’t exist 10-15 years ago Strategic Sourcing Supplier Development Spend Management New tools & technologies Strategic Sourcing Suites e-Sourcing Tools Spend Analysis Contract Development, Maintenance & Compliance Tools Supplier Identification Solutions Changing markets Local to Regional to National to Global Increased factors that drive market volatility Higher expectations from Supply Chain organizations The transition from transactional to strategic activities Continued value contribution

New processes that didn’t exist 10-15 years ago

Strategic Sourcing

Supplier Development

Spend Management

New tools & technologies

Strategic Sourcing Suites

e-Sourcing Tools

Spend Analysis

Contract Development, Maintenance & Compliance Tools

Supplier Identification Solutions

Changing markets

Local to Regional to National to Global

Increased factors that drive market volatility

Higher expectations from Supply Chain organizations

The transition from transactional to strategic activities

Continued value contribution

The Role of the Procurement Professional has Truly Become More Strategic in Nature Strategic Tactical 2% 10% 10% 15% 43% 20% 4% 12% 17% 22% 30% 15% 6% 15% 22% 26% 20% 11% Other New Product & Process Mgmt Supplier Development Sourcing Strategy & Analysis Materials Management Transactional Buying 1997 2007 2002 Source: Corporate Executive Board Research

What Does This Mean for Your Sourcing Organization? Keeping Your Best People Recruiting New Talent Effective strategies for retaining your best talent is the most important part! Identify top performers Understand what they need in terms of development, and create formal programs to respond Work with your internal HR group to determine new skill requirements Look beyond your industry Partner with top Supply Chain university programs Use temp-to-hire staffing models If you don’t have a Resource Strategy to build your talent pool, you better develop one!!!

Effective strategies for retaining your best talent is the most important part!

Identify top performers

Understand what they need in terms of development, and create formal programs to respond

Work with your internal HR group to determine new skill requirements

Look beyond your industry

Partner with top Supply Chain university programs

Use temp-to-hire staffing models

Understanding Your Top Skills Requirements Build and Know Your Top 10 Skills Maintain Skills That Withstand the Test of Time Track Business Changes That Cause a Shift in Skills Different companies may have different Strategic Sourcing skill requirements based on their unique business requirements; however, core skills remain consistent across companies

Top Core Strategic Sourcing Skills Facilitation & Meeting Management Leadership, Guidance, & Team Building Education, Ethics & Professionalism Communication Negotiations Decision Making & Initiative Marketing “ Out of the Box” Thinking Challenger of Status Quo Conceptualization & Visualization Strategic Thinking & User of Frameworks Problem Solving Financial Analysis & Cost Modeling Computer Literacy Formal Problem Solving Business Awareness / Market Analysis Process Expertise (Spend Analysis, Strategic Sourcing, Procurement, Contract Management, etc.) Process Mapping & Improvement Interpersonal & Relationship Management Creative & Strategic Technical & Process

Facilitation & Meeting Management

Leadership, Guidance, & Team Building

Education, Ethics & Professionalism

Communication

Negotiations

Decision Making & Initiative

Marketing

“ Out of the Box” Thinking

Challenger of Status Quo

Conceptualization & Visualization

Strategic Thinking & User of Frameworks

Problem Solving

Financial Analysis & Cost Modeling

Computer Literacy

Formal Problem Solving

Business Awareness / Market Analysis

Process Expertise (Spend Analysis, Strategic Sourcing, Procurement, Contract Management, etc.)

Process Mapping & Improvement

A Framework For Strategic Sourcing Skills Assessment & Transformation Determine Desired Strategic Skills Assess Organization’s Skills Design & Implement Skill Upgrade Program Identify Gaps & Develop Upgrade Strategy Determine list of organization’s desired skill sets Define standards for each skill set Develop forecast for resource requirements and associated skills Determine participants in the skills assessment process Conduct assessment Interviews Online testing Case studies Qualitative assessment of past performance Summarize results Identify skills gaps Systematic organizational gaps Individual gaps Determine strategy for upgrading organization skills through combination of development & acquisition Document specific requirements to close gaps Create skills development plans Individual plans Holistic organizational plan Determine development / acquisition sources (internal/external) and approaches Rollout & track acquisition & development programs

Determine list of organization’s desired skill sets

Define standards for each skill set

Develop forecast for resource requirements and associated skills

Determine participants in the skills assessment process

Conduct assessment

Interviews

Online testing

Case studies

Qualitative assessment of past performance

Summarize results

Identify skills gaps

Systematic organizational gaps

Individual gaps

Determine strategy for upgrading organization skills through combination of development & acquisition

Document specific requirements to close gaps

Create skills development plans

Individual plans

Holistic organizational plan

Determine development / acquisition sources (internal/external) and approaches

Rollout & track acquisition & development programs

Once the Skills Gap is Identified, Develop a Plan To Close It Develop Talent & Org Strategy Talent Acquisition Talent Development Organizational Redesign Determine the number of people you need to hire Gain agreement on the skills sets you want in those people Develop the process for recruiting, screening and hiring Ensure you also focus on retaining your best people Create and institutionalize a Knowledge Management program Develop organizational and individual development plans Incorporate other supply chain education and professional development Develop exit strategies for those not able to transform Gain understanding of trends and best practice sourcing organizational designs Develop fit-for-purpose design for your enterprise Ensure alignment of business goals, objectives, and processes

Determine the number of people you need to hire

Gain agreement on the skills sets you want in those people

Develop the process for recruiting, screening and hiring

Ensure you also focus on retaining your best people

Create and institutionalize a Knowledge Management program

Develop organizational and individual development plans

Incorporate other supply chain education and professional development

Develop exit strategies for those not able to transform

Gain understanding of trends and best practice sourcing organizational designs

Develop fit-for-purpose design for your enterprise

Ensure alignment of business goals, objectives, and processes

Keeping Your Best People Challenging Work Salary Benefits Life/Work Balance Advancement Opportunities Company Culture Management Team Job Attributes That Supply Chain Professionals Value The Most * * Source: SupplyStaff Survey of Supply Chain Professionals Strategies Keep your team’s work challenging Structure your department to nurture highly-skilled candidates Target your compensation to be 10-20% above industry average Encourage and allow balance between work and life Develop mentoring programs that encourage advancement

Challenging Work

Salary

Benefits

Life/Work Balance

Advancement Opportunities

Company Culture

Management Team

Strategies

Keep your team’s work challenging

Structure your department to nurture highly-skilled candidates

Target your compensation to be 10-20% above industry average

Encourage and allow balance between work and life

Develop mentoring programs that encourage advancement

Recruiting New Talent Work with your internal HR group to ensure that they’re aware of your new skill requirements Look outside of your industry, and focus on the core skills Utilize multi-dimensional interviews that focus on your new desired skills Face-to-face interviews Case studies Testing References / Background checks Work with top ranked Supply Chain university programs to offer internships/co-ops Utilize temp-to-hire staffing options to try new talent before making longer term commitments

Work with your internal HR group to ensure that they’re aware of your new skill requirements

Look outside of your industry, and focus on the core skills

Utilize multi-dimensional interviews that focus on your new desired skills

Face-to-face interviews

Case studies

Testing

References / Background checks

Work with top ranked Supply Chain university programs to offer internships/co-ops

Utilize temp-to-hire staffing options to try new talent before making longer term commitments

Summary Realize that the demand for suitably qualified procurement professionals is on the rise, making the job of retention and recruiting that much more difficult Understand and document the skills required for your organization Assess your current organization to: Determine gaps between the current and desired skill sets Understand who your top performers are Create a formal strategy for enhancing sourcing skills in your organization, either through creative acquisition or skills development activities Develop a formal strategy and program for retaining your best talent Organize your Resource Strategy for success, and don’t wait!

Realize that the demand for suitably qualified procurement professionals is on the rise, making the job of retention and recruiting that much more difficult

Understand and document the skills required for your organization

Assess your current organization to:

Determine gaps between the current and desired skill sets

Understand who your top performers are

Create a formal strategy for enhancing sourcing skills in your organization, either through creative acquisition or skills development activities

Develop a formal strategy and program for retaining your best talent

Organize your Resource Strategy for success, and don’t wait!

Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s Graham Leary – VP Strategic Sourcing, Winn-Dixie

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

Winn-Dixie was founded in 1925 Currently operates 520 stores located in Alabama Florida Georgia Louisiana Mississippi 52,000 associates Sales $7B. Ranks 305 on the FORTUNE 500 © List Nasdaq (WINN) Company Overview

Winn-Dixie was founded in 1925

Currently operates 520 stores located in

Alabama

Florida

Georgia

Louisiana

Mississippi

52,000 associates

Sales $7B. Ranks 305 on the FORTUNE 500 © List

Nasdaq (WINN)

Company Overview

Company Overview

Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s Agenda

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

Department history – Managed by consultants Limited internal strategic sourcing expertise 90 day organization assessment……… Sourcing Organization

Department history – Managed by consultants

Limited internal strategic sourcing expertise

90 day organization assessment………

Sourcing Organization

Developed center-led organization plan Execution within the business units Started implementing systems and tools to: Gain transparency of spend Accelerate e-Sourcing Build spend management capability Sourcing Organization

Developed center-led organization plan

Execution within the business units

Started implementing systems and tools to:

Gain transparency of spend

Accelerate e-Sourcing

Build spend management capability

Business Function Aligned Core Team With Key Support Roles Sourcing Organization

Business Function Aligned

Core Team With Key Support Roles

Plan aligned with SVP’s and CEO Assessed talent requirements Skill-set: strategic, analytical, excellent negotiators, process focused Focusing recruiting on blend of talent from top Retailers, CPG firms, and Technology firms Sourcing Organization

Plan aligned with SVP’s and CEO

Assessed talent requirements

Skill-set: strategic, analytical, excellent negotiators, process focused

Focusing recruiting on blend of talent from top Retailers, CPG firms, and Technology firms

Agenda Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

Expect to dedicate 20-50% of your time to staffing your organization The Executive Juggling Act Recruiting Challenges

Expect to dedicate 20-50% of your time to staffing your organization

The Executive Juggling Act

Agenda Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

Interview Process Culture Fit Diversity Timing Offers Specifications Recruiters The Recruiting Compass TOP TALENT -Attract- -Develop- -Retain-

Develop great position specifications Develop a partnership with 1-2 recruiting firms Consider a High / Low approach The Recruiting Compass Specifications and Recruiters

Develop great position specifications

Develop a partnership with 1-2 recruiting firms

Consider a High / Low approach

Schedule interviews Candidate interviews in close proximity Be organized - create a great impression from day 1 Develop a strategic interview plan Communicate position requirements to interviewers Examine skills. Energize / Market. Gain the H.R basics Post interview Standard evaluation tools and roundtable debrief session Deliver instant candidate feedback The Recruiting Compass Interview Process

Schedule interviews

Candidate interviews in close proximity

Be organized - create a great impression from day 1

Develop a strategic interview plan

Communicate position requirements to interviewers

Examine skills. Energize / Market. Gain the H.R basics

Post interview

Standard evaluation tools and roundtable debrief session

Deliver instant candidate feedback

Explain your vision Be ready to articulate your company’s: Business strategy and key financial metrics Cultural dynamics Policies Career opportunities Hire adaptable people The Recruiting Compass Culture Fit & Diversity

Explain your vision

Be ready to articulate your company’s:

Business strategy and key financial metrics

Cultural dynamics

Policies

Career opportunities

Hire adaptable people

Provide feedback immediately via Recruiter A “sound-bite” is better than “no-bite” Focus on candidates positives Keep candidates “warm” Know the market, and know early-on what can realistically be offered Target completing process in 45 days The Recruiting Compass Timing & Offers

Provide feedback immediately via Recruiter

A “sound-bite” is better than “no-bite”

Focus on candidates positives

Keep candidates “warm”

Know the market, and know early-on what can realistically be offered

Target completing process in 45 days

Agenda Company Overview Sourcing Organization Recruiting Challenges “ The Recruiting Compass” Summary of Learning’s

Company Overview

Sourcing Organization

Recruiting Challenges

“ The Recruiting Compass”

Summary of Learning’s

Lead the recruiting process Partner with H.R, but avoid outsourcing to H.R Hands on every-day (20-50% of time) Use contractors and external resources to bridge organization gaps Take your time to hire the right team Develop your own Compass Summary of Learning’s Great People Are Available

Lead the recruiting process

Partner with H.R, but avoid outsourcing to H.R

Hands on every-day (20-50% of time)

Use contractors and external resources to bridge organization gaps

Take your time to hire the right team

Develop your own Compass

Thank You !!! Laura Becker SupplyStaff 530-550-5213 [email_address] Graham Leary Winn-Dixie Phone ?? Email ?? Questions