“Hire for Attitude, Train for Aptitude”

Moderator: Tony Bandiera

PanelSam Picone

Michael UrsiniSteven C. De Sutter

“Hire for Attitude, Train for Aptitude”

• Attitude And Aptitude Are Two Very Different Things To Accomplish

• Great Customer Service Depends On Both

“Hire for Attitude, Train for Aptitude”

• C-stores – The Life Blood Of An Organization

• C-stores Are Complex Operations• Imparting Attitudes And Aptitudes On

Employee’s • How Do Large Organizations

Accomplish This?

What Do You Look For In An Employee?

“Hire for Attitude, Train for Aptitude”

Sam PiconeRegional VP of Operations

Thornton's, Inc.

Thorntons Inc.

Sam PiconeRegional VP of Operations

Who we ArePeople Caring

Teams operating163 locations

OHIOINDIANA

KENTUCYTENNESSEEILLINOIS

Talking Points

• Get The Culture Right• “Let Your Store Speak For Itself”• Tools To Hire By• Measure And Reward

Get The Culture Right

• People Are Your #1 Asset• Define Who You Are – Establish A Set Of

Core Values

Get the Culture right• Establish A Strategy That

Aligns The Entire Organization

• Customer Service Has To Be Part Of Both The Core Values And The Strategy

Get the Culture right

• Communicate your values and strategy to your team members

• Reward what you want Repeated

Let your Store Speak for you• Set the Standards• Operating a Great Clean Organized

store is a Magnet for new hires

Let your Store Speak for you• FUN and EXCITING

Environments; Attract FUN And EXCITING People

Let Your Store Speak For You

People Hire In Their Own Image

Tools to Hire by• Understand the Strategy And Culture• Focus On These Skills Over

Technical Skills • Use Character assessment tool • Regional Managers interview all

CSRs• Regional VP interviews all store

managers

Measure…

• 3rd Party Mystery Shops• Leadership In The Field• Align Team Member Bonus With

Customer Service

38%23% 17% 16% 15%

70%

40%31%

24% 25%

157%

121%

108%

85% 86%

0%

50%

100%

150%

200%

250%

300%

FY06 FY07 FY08 FY09 FY10

Perc

enta

ge

Turnover % by Year

CSR

SM

GM

Measure…Reduction in Turnover

Measure…“Man On The Street”

…and Reward

“Pin” Program

“Hire for Attitude, Train for Aptitude”

Michael UrsiniDirector, Operations Support

The Pantry, Inc.

Kangaroo Express

Defining our Brand

For internal use only.

Sharpening our Focus

Inventory Management

24%

Guest Face-Time 26%

Inventory Ordering 1%

Inventory Receipt 4%

Management Tasks 6%

Paperwork 11%

Associate Task 23%

2009 – Focus on Controls

Inventory Management

14%

Guest Face-Time 47%

Inventory Ordering 2%

Inventory Receipt 3%

Management Tasks 4%

Paperwork 5%

Associate Task 25%

FY 2010 Breakdown of Activities2010 – Focus on the Guest

Creating a Guest-Centric Selling Culture

Personification of TheCARES Philosophy

Customers Greeted, Thanked, and Treated as GUESTS

Always in Stock

Restrooms Cleaned and Well Stocked

Exceptional Store Conditions

Speed of Service

Staffing Strategy• Clearly Establish A Consistent Definition Of The

Standard, And Do Not Tolerate A Deviation Of It For Any Reason

• Treat The Hiring Process Like A Casting Call, Understanding That There Is A Specific Image To Maintain In Order To Build A Brand

• Hospitality Isn’t A Position, It Is A Way Of Life And A Condition Of Employment. Set This Expectation From The Outset

• Constantly Raise The Bar, Realizing That Those You Hire Set The Standard Of What You Demand

Retention Strategy• Recognize The Top And Bottom Performers.

Provide Each With The Proper Attention, Cultivating The Best Team Possible

• Offer Employees Opportunities To Better Themselves And Further Their Careers, Investing In Their Success

• Foster A Culture Of Teamwork Among All Levels And Responsibilities. “We WIN As A Team With Fast, Friendly And Clean”

• Communicate Clearly And Concisely, But Also Constantly And Consistently

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“Hire for Attitude, Train for Aptitude”

Steve DeSutterPresident & CEO Stripes LLC

• Largest Non-refiner C-store Operator In Texas, With Additional Retail Stores In Oklahoma And New Mexico

– Over 525 retail sites– Among the 15 largest company

operated C-store chains in the U.S.– ~ 7,500 team members

• Largest Wholesale Motor Fuel Distributor In Texas

– Approximately 390 contracted Dealers

Stripes at a GlanceFamily Built /Publicly Traded

• Cash Flow: ~ 80% Retail, 20% Wholesale

• Fuel Gp: ~32% Of Retail Gross Profit

• 21 Consecutive Years Of Same Store Sales Growth

Stripes Regional Footprint

At Stripes We Deliver Great Customer Service When…

• We Keep Our Promises To Our Customers– Fast– Friendly– Hot, Fresh and Delicious!

AND WHEN…• We Keep Our Promises To Team Members

– Dignity and respect– Skills and responsibilities are matched to position– Open communications– Reward performance

Measuring& Impacting Customer Satisfaction

• Collect/Track And Address Customer Dissatisfaction –Complaints

• Focus Groups And Store Intercepts• Although We Do Not Have A Formal Daily

Measurement System

• Operations Excellence – Unique Approach In The C-store Industry And Has Been Successful In QSR– Quarterly/Customer focused review for every store

Measuring

Impacting Customer Satisfaction

Attitude and Aptitude Key Initiatives at Stripes to

Deliver the Best Customer Experience

• No Specific Criteria For Attitude In Initial Screening Process But Specific Qualifiers For Raises, Retention And Promotion

• Setting Stretch Goals For Voluntary Turnover Reduction

• Expanding Training And Constant Orientation To Customer Needs

• Alignment With Communication, Rewards And Recognition

Driving Improvement Through Stretch Goals

• Move All Staff Turnover Target From +120% Experience To ~75% Target

• Measure/Track/Report Voluntary And Involuntary Separately

• Stretch Goal Has Driven Deeper Review…– Causes for leavers– Leadership’s role in effecting change– Studying zero turnover locations for confidence

and insights

Selection: New Hires and Promotions Evaluated Through New Filters

Established Core Competency Models For Each Functional Role – Stores And Staff

Less Developed Highly Developed

Base CompetenciesDrive for Results ← →

Problem Solving Abilities ← →

Ethical and Team Behavior ← →

ThinkingBusiness Acumen

Analytical Skills ← →

Planning and Organization Skills ← →

SeeingInsight Into People

Customer Centric ← →

Motivation and Delegation Skills ← →

DoingImpact and Integrity

Developer of Talent ← →

Execution Skills ← →

OVERALL ASSESSMENT ← →

Selection: New Ranking System –Method for Capability Development

9Outstanding, consistent

performance & potential; leads & challenges the business.

Ready now

1Substantially short of

requirementsMust improve or transition

3Delivers inconsistent results and/or performance does not

meet acceptable level.Must improve or transition

6Delivers inconsistent results

against objectives yet demonstrates potential to

perform in current role and possibly beyond.

Focused performance mgmt

7Consistently produces quality

results; able to enhance skills/adapt to new situations.

Ready 12-24 months

4Consistently produces quality

results.Satisfactory in current role

8Consistently delivers results;

able to adapt to new challenges; has capacity to

take on additional challenges.Ready now-12 months

5Consistently delivers on

objectives; fully satisfactory performance; builds skills as

necessary.

Ready 18-24 months

2Delivers on objectives; fully satisfactory performance.

Satisfactory in current position

PERFORMANCE

POTENTIAL

“Nine Box Evaluation Model”

Training: Management Tracking Tools

Ensure Fundamental Certifications And Entry Level Skills Are Delivered Timely

Company Completion Report by Course

Course Name Division Assigned Complete Incomplete Percent Complete

Food Handler Certification 6811 6201 610 91 %

BTB 1329 1312 17 99 %

CB 815 779 36 96 %

Corp 17 11 6 65 %

LUB 736 625 111 85 %

MID 766 501 265 65 %

RGVBRN 1185 1137 48 96 %

RGVMCA 1195 1155 40 97 %

SA 768 681 87 89 %

Training: New Skills – On The JobInvesting in Leaders

Target: Above StoreOER

Specialist/Store Manager

Store Mgr

&TeamReview

Store Mgr./Area Mgr.Agree 30/90 day plan

StoreMgr.

ClosesOut

ActionPlan

Constant Improvement

• Customer centric• Quarterly improvement plan for each store

• Tied to bonuses

Operations ExcellenceTarget: In Store

Communication, Reward & Recognition

Annual Trade Show & Sales Meeting

Team Based Community InvolvementPresident’s Weekly Voicemail

• Stripes – Go Forward Plan (Business Plan) Provided To All Team Members

• Monthly Contests, Reward & Recognition Programs

• High Profile Celebrations