16 Our people – Values in action our values Our Values help bring us together to achieve our vision of becoming the ‘food specialist for everyone’. The Values set out what we expect of each other in the business and what our customers can expect from us. Can do Getting things done Fresh thinking Our aim is to attract, motivate and develop people to ensure that Morrisons becomes the ‘food specialist for everyone’. Our building blocks 1 Values 2 Leadership Values are incorporated in everything we do and are at the core of what we expect our leaders and colleagues to be about. We will develop effective leaders working to our Values because they create the right workplace conditions in which customers receive a great service. 4 Performance 3 Talent Sustainable performance relies on having people in place to: grow the business; strengthen our unique Morrisons culture and deliver our vision of being the ‘food specialist for everyone’. At Morrisons we believe that everyone has talent and we are committed to selecting, developing and growing the best people for our business. Always looking for new and better ways of doing things One team Working well together Great selling and service We love to sell and serve Bringing the best out of our people We’re constantly learning and looking to improve on where we are Great shopkeeping Setting high standards in all areas of the business At Morrisons we thrive on having highly committed people who know how the business works and take pride in doing a great job. We continually invest in our people to ensure that we deliver great business performance and outstanding customer service. In order to achieve this our People Agenda focuses on four key areas: Values, Leadership. Talent and Performance. Talent Growing our own people has been part of the Morrisons success story for many years. We believe in giving everyone the opportunity to progress from the shop floor to the top floor in our business. With 80% of our employees promoted from within, we believe this approach creates a very strong culture and supports our commitment to the CSR social mobility agenda. Morrisons Fresh Food Academy 747 Level 2 NVQs have been awarded across the business in 2009. Engagement We have engaged and consulted with thousands of employees at over 1,700 Joint Consultation Committee meetings during 2009. Wm Morrison Supermarkets PLC To support this objective we launched the Morrisons Academy in 2009. It delivers a range of training and development that we use to bring the best out of our people at all stages in their career covering everything from basic skills training to leadership coaching. Structured training builds confidence and a sense of pride, ownership and an ability to provide customers with the best service possible. The Academy also encompasses professional and vocational qualifications. Our Market Street retail training has been accredited to level two QCF standards meaning we can offer employees a nationally recognised qualification. By April 2010 all our Market Street colleagues will be accredited and qualified to Royal Society for Public Health standards of food safety. We will be the only food retailer to operate to this standard – a major step towards realising our vision of being the ‘food specialist for everyone’. There are 20,000 colleagues already working towards their qualification, making this the largest programme of its kind currently in the UK. The Academy also incorporates our Craft Skills Apprenticeship Programme. Morrisons trains more fishmongers, bakers and butchers than any other retailer. In the past year, 325 people have successfully completed Traditional Craft apprenticeships. Our focus on developing people is grounded in the belief that better trained people provide better service to customers. A great example of this can be seen in our wine department where we train our department managers to the highest standards so they can provide the best advice to customers. In 2009, our approach was recognised by the Wine & Spirit Education Trust with an award of Educator of the Year. We are committed to ensuring that all employees, new and existing, are engaged in the future of our business. Success in this area is evidenced by: • company labour turnover dropped from 34.5% to 20.07% during 2009; • 236 people celebrated 25 years’ service in 2009 and approximately 260 more to follow in 2010; • over 57% of our Senior Management Group have over 10 years’ experience in Morrisons; • more than 30% of our Senior Management Group started on the shop floor; and • 95% of our store General Managers are promoted internally. Annual report and financial statements 2010 All of this demonstrates that our way of working and our approach to developing future talent sit hand in glove with our strong heritage. performance in action... Today Performance Morrisons has always had a unique view of service and performance. Our philosophy is to drive high standards by coaching our people to perform at their best. Working with the UK Centre for Coaching Excellence we are ensuring that the best examples of world beating sport are translated into the front line of our business to give us a sharper edge. In the past year, over 500 managers have been trained in coaching skills so that they can focus both on developing our people, as well as driving performance and results. Recognition of our talent In 2009, Oracle Retail Week awarded one of our managers ‘Retail Manager of the Year’. Similarly the General Manager of Kidderminster store, also became the third Morrisons manager to be awarded the ‘Store Manager of the Year’ title at the Retail Industry Awards, following in the footsteps of the Newquay store manager in 2008, and Anniesland store manager in 2007. Our Retail HR Director was also recognised at the Everywoman in Retail Awards as ‘Hidden Talent of the Year’. We set clear expectations and equip managers to build pride in performance. In this respect, every manager across the business has been provided with a performance toolkit to enable them to drive great results every day. This has been underpinned by the introduction of a clear accountability framework that sets the standard for performance across all areas of the business. Employee stability* (Percentage %) 2010 84 2009 2008 78 76 *Employee stability is measured as the percentage of employees who have been with us for over one year. “Morrisons is a company that is moving forward in a way that gives every employee better prospects for the future. What Morrisons is doing is changing the whole culture of this industry so that everybody who starts at the company will have the chance of promotion and a qualification… Morrisons is therefore leading the way in the whole of the retail trade.” The Prime Minister The Rt Hon Gordon Brown MP 22 October 2009 Retail Industry Award Store Manager of the Year 3 years running – 2007, 2008 and 2009. www.morrisons.co.uk/annualreport10 trained and operational prior to opening their doors as Morrisons stores. The result is that the entire re-brand, retraining and opening programme took less than six months. Additionally, all team managers at our newly opened state of the art distribution centre in Sittingbourne were recruited against our new Values-centric role profiles. They then took part in a series of workshops and leadership programmes to establish their own ways of working in line with our corporate values and coaching culture. Engaging the team in this process has resulted in a high performance, motivated culture that provides a blueprint for the rest of the business to follow. 2009 has seen a step-up in how we engage our colleagues. We have adopted an approach that gives each division clear ownership for the communications agenda within their business area built around a well-supported framework for engagement. We have continued to invest in our relationships with trade unions whilst also developing non-unionised forums designed to drive continuous improvement and personal involvement in the business. After a qualifying period, all employees participate in either the Profit Share Scheme or Management Bonus Plan, ensuring that everyone feels a part of the challenges and successes of the organisation. The performance of our people not only drives our business forward, it also consistently attracts external recognition for being best in class. 2009 saw Morrisons collect the Store Manager of the Year award at the Retail Industry Awards for the third year running. We also collected the Oracle Retail Week award for Retail Manager of the Year. Leadership Strong leadership is key to bringing the best Values & engagement out of our people and delivering business results. As we expand from a National to Nationwide Our continued investment in this area has seen business, it is essential that everyone entering a further 500 managers take part in the Leading into the organisation understands and feels the Morrisons Way programme, designed to committed to our values. equip our managers and leaders of the future with the skills and support necessary to drive Our recruitment processes have been completely our business forward. revised to focus on selecting people who reflect the values. Getting the right people in the right We have continued to integrate the Values-led roles, demonstrating the right behaviours, leadership profiles into our development is key, and we ensure that our selection process programmes and, working in conjunction with is supported by our values-led induction Bradford Business School, we have introduced programmes. Our values are a key part of our a mini MBA programme for our senior leaders, winning performance and we recognise the specifically tailored to the needs of our importance they play in developing future growing business. talent. This year has seen the launch of our Morrisons Essentials people development programmes designed to ensure values-led behaviour is embedded from the start. Over 20,000 managers will complete the programme during 2010. We carried out our second engagement survey in January 2009 and the results have informed our people strategy in 2009. This year we will continue to build on the feedback building a strong foundation for the future of our business. Taking the time to engage and involve our employees pays off. In 2009, we acquired 38 Co-operative and Somerfield stores. This resulted in thousands of new employment opportunities and the training of 7,000 employees nationwide. This has been supported by 350 existing colleagues travelling between stores to ensure that our new employees were welcomed into the business and were fully 80 % of our employees are promoted from within. We believe in giving everyone the opportunity to progress from shop floor to top floor. 10,000 new jobs created in the year. Annual report and financial statements 2010 Strategic review 4 —— 17 17