Harnessing the Power of Data with Workforce Management. Presenter: Mike Chester VP, Store Operations, World Kitchen, LLC

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1 Harnessing the Power of Data with Workforce Management Presenter: Mike Chester VP, Store Operations, World Kitchen, LLC

2 Who is World Kitchen? From bakeware, dinnerware, kitchen and household tools to range-top cookware, storage and cutlery, World Kitchen, LLC., and its affiliates manufacture and market brands known and trusted around the world. Look in any household and you will likely find examples of both innovative and timeless products proudly bearing our brands:

3 Who is World Kitchen? A global team of 3,000 employees We have major manufacturing, product development and distribution operations in the United States and the Asia- Pacific regions, and retail channels around the world. North America Retail Stores ~90 Stores in the US and Canada More than 700 associates Primarily focused in outlet centers Average store is 4200 sq. ft. Sell our brands and fill in the kitchen assortment with other vendors products

4 Harnessing the Power of Data with Workforce Management The Evolution of Workforce Management

5 From Time & Attendance to Workforce Management The evolution from recording time to proactively managing the work force Workforce management encompasses: Time & attendance Workforce scheduling Scheduling and forecasting Task and activity management HR management Demand-orientation Optimization

6 From Manual Spreadsheets to Workforce Management

7 The Evolution at World Kitchen 2010: Handwritten Schedules Based on payroll matrix 2011: Excel Spreadsheet Based on payroll as a % to net Sales Current Implemented WorkPlace Solutions WFM SAM Solution Based on payroll as a % to net sales

8 WFM Still Quite Young 1980 s and 1990 s Many organizations focused on Supply Chain Management and Enterprise Resource Planning Current As cost pressures increase, organizations are turning to Workforce Management as an important strategic element in organization management

9 Harnessing the Power of Data with Workforce Management Technology Advancements in Store Operations

10 Store Operations Advancements With technology advancement comes the ability to collect more data from our stores and customers: Advanced POS Systems Human Resource Information Systems Business Intelligence Systems Traffic Counters

11 Advanced POS Systems Advanced POS systems Track real time inventory Provide sales data by the minute Manage time and attendance Manage many backend systems like receiving At World Kitchen, we use a solution from Micros Systems

12 HRIS Human Resource Information Systems Database of employee information Compensation and benefits Payroll Performance Evaluation At World Kitchen, we use SAP

13 Business Intelligence Systems Business Intelligence systems Provide sales performance by business, line, item Inventory tracking Sales data Average dollars per transaction, conversion Segmented sales data by specific time interval Detailed transaction information including specific items sold At World Kitchen, we use Oracle Business Intelligence

14 People Counters Traffic Counters Provide line of site to traffic by the minute Heat maps Understand customer behavior within zones Improve checkout More efficient line queuing Measure Conversion Key metric for efficiency of staff in specialty retail At World Kitchen, we use CountWise

15 Store Operations Advancements With many new tools available, retailers have more information at their disposal than ever before The Challenge The Solution How to use this information to: make better decisions provide better customer service Improve employee engagement save money Workforce Management

16 Harnessing the Power of Data with Workforce Management The Integration of Data and WFM

17 Integrating Data and WFM The answer to the challenge of how to leverage this data Workforce Management We all know that the key to our success is our people Having a tool that can integrate all these streams of data while providing a simple user interface will drive: Improved employee productivity The right person at the right time with the right attitude Improved employee satisfaction Productive employees and that are more satisfied with their jobs Effective employee engagement improves customer loyality By integrating all of this rich data into a workforce management solution, you can truly harness the power to drive improved performance

18 Integrating Data and WFM Since implementing the WorkPlace WFM tool in our stores: Our employee satisfaction surveys have improved overall and especially in the areas of:

19 Harnessing the Power of Data with Workforce Management Integrating Data into WFM Helps Drive Better Decisions

20 Better Decisions Ability to forecast future needs based on sales and traffic data WFM translates the need into real numbers of employees Based on the availability of the current staff Result: More accurate seasonal hiring resulting in improved service levels At World Kitchen, we used the WorkPlace SAM tool to: Create phantom schedules for the holiday season in October This allowed us to accurately predict the number of associates we needed to hire for the season

21 Better Decisions Visibility to future schedules and payroll spending WFM compiles schedule cost and staffing levels Rolled up to district, region, company Result: Ability to quickly react to a future situation At World Kitchen, we were able to graphically see future spending and coverage in a dashboard format Allowed drill down capability

22 Better Decisions Exception Reporting WFM offers that ability to call out key exceptions Allows the user to avoid all the details except the items that are most important Examples: Overtime reporting, schedule adjustments Result: Ability to take action to avoid escalation of issue At World Kitchen, we were able to graphically see future overtime spending and drill down into the districts and stores:

23 Better Decision Schedule Discipline Visibility to what was scheduled vs. what was worked Roll-up visibility to district and national levels Highlighted schedule adherence problems in specific stores At World Kitchen, we can see schedule discipline issues via our dashboard to drive improved service levels

24 Better Decisions Integration of traffic, sales and activity data By integrating the data stores already collect, staffing and scheduling decisions can be based on facts vs. feelings At World Kitchen, we are currently implementing the labor demand tool which will integrate: Traffic in 15 minute intervals; Sales in 15 minute intervals Task activities Replenishment/Freight Processing Customer interaction

25 Harnessing the Power of Data with Workforce Management The Power of Data at Work

26 The Benefits of Harnessing the Power Associate Benefits Work-life balance Ability to electronically request time off WFM typically fulfills more than 80% of employees shift request Ability to access schedules remotely Ability to bid on a shift that is available More ownership for your schedule resulting in fewer call-offs The Result = More engaged associates driving customer loyalty

27 The Benefits of Harnessing the Power Management Benefits: Clear view of current and future staffing requirements Forward looking view of schedules Leveraging the rich data that is already being collected to help make better decisions Visibility to schedule adherence Dashboard reporting to help management make better decisions

28 The Benefits of Harnessing the Power World Kitchen s Selection of a WFM provider Because we collect a lot of data from various sources, it was important that our WFM solution had The ability to integrate data Utilize existing time & attendance solution Integrate payroll, BI, CountWise A front end solution that did not intimidate our managers WorkPlace provided a simple user friendly interface for our store managers while having the backend horsepower to harness the data

29 The Benefits of Harnessing the Power Industry Trends Improved employee and manager self-service capabilities Strategic workforce planning Supporting the business with key insights into how the workforce is performing Encompasses all aspects of managing the workforce lifecycle Integrates mobile technology Analytics and business intelligence Provider Capabilities WorkPlace has the capability to satisfy the current and future needs in workforce management

30 Questions?

31 Thank You!

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