Whole Foods is All Teams
Resourced from Charles Fishman
Fast Company Issue 2 Page 103
April 1996
Presented by:
Antoine Marcq
David Rumer
Keith Kinvig
Matt Heynen
Mimika Karountzos
Whole Foods

The World’s Largest Organic Foods Retailer
Whole Foods
“We obtain our products locally and from all over the world, often from small,
uniquely dedicated food artisans. We strive to offer the highest quality, least
processed, most flavorful and naturally preserved foods”.
History

1980: Opened their first store in Austin Texas
1991: 12 Stores in 3 states
 Projected: 100 stores by Jan 2000


187 Stores in Canada, United States of
America and the United Kingdom
Performance Measures
Job Satisfaction

2006: Fortune Magazine named Whole Foods Market
the15th best company to work for in America

Whole Foods Market has place in the top 100 every
year for the past nine years.
Performance Measures
Financial

2002: Revenue of $2.7 billion

2005: Revenue: $4.7Billion

3rd Quarter of 2006: YoY growth of 18%

2005: Net Profit of $136 million
That’s more then double the industry standard!
Why are they successful




All work is Teamwork
Being Your Own toughest Competitor
Anything worth doing is worth measuring
Sustainable Success
All Work is Teamwork
All Work is Teamwork

On average each profit centre is comprised of 10 teams

Each of these teams has a team leader

These Team Leaders are on a team with the store leader

The store leader is on a team with other regional store
leaders

The company’s regional store presidents are on the final
team
All Work is Teamwork

Potential employees are recommended by store
leaders to a specific team

After a 30 day trial period there is a vote to
determine if a full time position will be offered

2/3 of the team members must vote in favour
of offering a full time position
All Work is Teamwork

Teams, stores, and regions compete against each
other in quality, service, and profitability

The results of the competition translate directly
into bonuses, recognition, and promotions

The competition helps ensure the democratic
process of selecting team members is working
All Work is Teamwork

The teams create ownership and accountability
among all employees

Specific goals can be assigned to each team and
the performance is easily evaluated

Motivates employees at all levels to achieve their
full potential
All Work is Teamwork
Fortune 100 Best Companies to Work For
2006 — number 15
2005 — number 30
2004 — number 47
2003 — number 32
2002 — number 48
2001 — number 41
2000 — number 72
1999 — number 48
1998 — number 34
Anything Worth Doing is Worth
Measuring
Anything Worth Doing is Worth
Measuring

What gets measured, gets done

A “no-secret” management philosophy

Every team knows sales information from every
store
Anything Worth Doing is Worth
Measuring

Analysis reports monthly

Profitability analysis

Individual teams make decisions
Anything Worth Doing is Worth
Measuring

Yearly survey

Company explains results of moral survey to
shareholders

Some team members are frustrated and
concerned
Anything Worth Doing is Worth
Measuring

High Trust Organization

Cannot have secrets

Openness allows success in self competition
Be Your Own Toughest Competitor
Be Your Own Toughest Competitor

Accountability

Ambitious Targets

Internal Pressure
Be Your Own Toughest Competitor

Competition is everywhere

Peer reviews
Be Your Own Toughest Competitor

Store Tour
-most intense
-excessive competition
Be Your Own Toughest Competitor

The Customer Snapshot
-surprise visit
-rates 300 items
-important results
“If you don’t cross pollinate, you become a hick”
-John Mackey CEO
Sustainable Success
Sustainable Success

Refined Culture


Whole foods spent 26 yrs. Refining its culture of
democracy and discipline
Culture put to the test

Plans to open more stores and increase sales
Sustainable Success

Transferring cultural values


Must transfer people who embody them
In house recruitment

Recruits up to 30% of new staff from existing
supermarkets
Sustainable Success

“It’s not the size of the company that creates the
feeling. It’s the core values”

All 187 stores exemplify the Whole Foods culture
Whole Foods
Four Things




All work is Teamwork
Being Your Own toughest Competitor
Anything worth doing is worth measuring
Strategies for sustaining success
Results

Food marked up as much as 20% over other
organic food retailers

Double the average industry profit
Customer
It’s wonderful
It changes how you shop
It’s a “Whole Food” experience
From the Peanut Gallery…