Affirmative Action: A Customized Approach at Best Buy

1. Affirmative Action: A Customized Approach at Best Buy Presented by:  Mark Nagel, Director of Government Employment Practices Deb Dennin, Corporate Affirmative Action Manager

2. 2 The Journey Begins Early 2005 Dedicated sales team seeks government/education contracts Conducted Request for Proposal for Affirmative Action vendors Inception of Affirmative Action Team (Team of 1) June 2005 Signed contract with Peopleclick to produce affirmative action plans Retained counsel of Jackson Lewis to guide decision making on affirmative action program strategy July 2005 Held project planning meeting to kick off affirmative action program Established retroactive affirmative action plan year (April 1 � March 31st) January 2006 Completed 1st set of Affirmative Action Plans (707 plans to be exact!) April 2006 Began work on first set of Affirmative Action Plans to be implemented at Best Buy June 2006 First Implementation of Affirmative Action plans begin (785 plans)

3. 3 Multi-faceted Organization Core Business Retail Stores Product Service Centers Retail Offices Corporate Office Distribution Centers Subsidiaries/Other Brands Geek Squad Best Buy Mobile Magnolia Audio Video Audiovisions Pacific Sales Kitchen and Bath Centers Speakeasy

4. 4 Questions We Asked Ourselves Philosophy How do we want to build the program - Compliance versus a way of doing business? Structure Are our subsidiaries required to participate? Are there natural breaks in the organization we need to consider as we build our plans/job groups? Would a functional or establishment plan fit our organization best? Or is it a combination? Should we count Occasional/Seasonal employees? What are the pros and cons? What movement will our businesses want to �count� as progress toward goals? Timing What time of year will our leaders be able to focus on the data?

5. 5 Questions We Asked Ourselves Implementation How often should we measure and report our progress to leaders? What preconceptions might leaders have about affirmative action? Who should �own� the plan? What resources are available to support and help execute the program? What mediums can/should we use to educate leaders and employees? How might the implementation differ across the organization? Where should it be the same? Where does our diversity program fit in? How do we tie affirmative action back to the business?

6. 6 Guiding Principles Incorporate AA as way of doing business � �It�s the right thing to do� Link Affirmative Action to the Diversity and Business Strategies Model good behaviors by developing a program that is inclusive Provide materials that are relevant to our businesses

7. 7 Building a Customized Approach Linking AA to the business and diversity strategies Identifying the playing field Defining the roles Choosing the players Addressing training needs Taking action on goals Building an Affirmative Action business rhythm Sustaining the program

8. 8 Linking Affirmative Action to Diversity & Business Strategies Supports Best Buy Core Philosophies by Enabling Diversity By understanding the gaps in our employee mix we can build more diverse teams that better reflect the communities they serve to draw in new customers and improve the customer experience Supports Best Buy Core Philosophies by Enabling Diversity By understanding the gaps in our employee mix we can build more diverse teams that better reflect the communities they serve to draw in new customers and improve the customer experience

9. 9 Identifying the Playing Field Affirmative Action Plans Produced for: Retail Every store, including New Store Openings as of April 1 Every Product Service Center that has more than 50 employees Every Territory Office, which will also includes the respective District Offices and Product Service Centers with less than 50 employees Logistics Every Distribution Center (DCs) and Delivery Distribution Center (DDCs) with more than 50 employees DDCs with less than 50 employees roll into the DC they report into Best Buy Corporate � includes Geek Squad and Best Buy Mobile stand alone locations Magnolia Audio Video AUDIOVISIONS (AVI) Following government guidelines, every Best Buy location, outside of Pacific Sales and Speakeasy, that has more than 50 employees will have its own affirmative action plan. One plan for the entire Corporate location, excluding our District offices housed there (as they are part of the retail Territory plans). One plan for Magnolia. (It includes their corporate and standalone locations. In-store Magnolia Home Theaters are part of the Best Buy retail store plans.) One plan for Audiovisions that includes all of their locations. Individual plans for every Retail and Logistics location with 50 or more employees. In retail, locations with less than 50 employees will roll into a territory plan Territory plans include district staffs, territory staffs, and General Managers. New this year--new stores that have employees coded to their location, regardless of the number of employees, will receive their own placement goals. Last year, if the location did not have 50 employees on April 1, the location rolled up into the Territory Placement Goal report. In Logistics, locations with less than 50 employees roll into the location they report to.Following government guidelines, every Best Buy location, outside of Pacific Sales and Speakeasy, that has more than 50 employees will have its own affirmative action plan. One plan for the entire Corporate location, excluding our District offices housed there (as they are part of the retail Territory plans). One plan for Magnolia. (It includes their corporate and standalone locations. In-store Magnolia Home Theaters are part of the Best Buy retail store plans.) One plan for Audiovisions that includes all of their locations. Individual plans for every Retail and Logistics location with 50 or more employees. In retail, locations with less than 50 employees will roll into a territory plan Territory plans include district staffs, territory staffs, and General Managers. New this year--new stores that have employees coded to their location, regardless of the number of employees, will receive their own placement goals. Last year, if the location did not have 50 employees on April 1, the location rolled up into the Territory Placement Goal report. In Logistics, locations with less than 50 employees roll into the location they report to.

10. 10 Defining the Roles Plan Developer Plan Owner Plan Supporter Plan Coach Thinking outside the box � not owned by HR, but the business. Let�s look at the many roles required to support the program Each year going forward, the AAP team will provide employee and applicant tracking data to Peopleclick, our affirmative action data processing partner, to produce our affirmative action plans. For each plan produced, Best Buy personnel will have specific roles and responsibilities related to their plans. Here�s what we mean. We�ve broken down the key player roles into four areas based on responsibility: Plan Developer, Plan Owner, Plan Supporter, and Plan Coach.Thinking outside the box � not owned by HR, but the business. Let�s look at the many roles required to support the program Each year going forward, the AAP team will provide employee and applicant tracking data to Peopleclick, our affirmative action data processing partner, to produce our affirmative action plans. For each plan produced, Best Buy personnel will have specific roles and responsibilities related to their plans. Here�s what we mean. We�ve broken down the key player roles into four areas based on responsibility: Plan Developer, Plan Owner, Plan Supporter, and Plan Coach.

11. 11 The Role: Plan Developer Reviews areas for improvement, formulates solutions and develops action plan based on affirmative action placement goals Plan Developers are: Retail: TGM and GM Corporate: Government Employment Practices Team (formerly the Affirmative Action Team) Magnolia: Selection and Development Manager Logistics: DC Director and DDC GM AVI: HR ManagerPlan Developers are: Retail: TGM and GM Corporate: Government Employment Practices Team (formerly the Affirmative Action Team) Magnolia: Selection and Development Manager Logistics: DC Director and DDC GM AVI: HR Manager

12. 12 The Role: Plan Owner Executes the good faith efforts outlined in the action plan and is accountable for the outcomes Maintains Good Faith Efforts Binder (GFEB) to retain documentation of all actions taken as outlined in action plan Utilizes resources available, both internal and external, to create a work environment that is diverse and non-discriminatory Plan Owners are: Retail: TGM and GM Corporate: Government Employment Practices Team (formerly the Affirmative Action Team) and Staffing Magnolia: HR Team Logistics: DC Director and DDC GM AVI: President Plan Owners are: Retail: TGM and GM Corporate: Government Employment Practices Team (formerly the Affirmative Action Team) and Staffing Magnolia: HR Team Logistics: DC Director and DDC GM AVI: President

13. 13 The Role: Plan Supporter Supports Plan Owners by determining tools and providing resources needed to execute the action plan Places ads with diverse sources Finds alternative recruiting resources Involves team in Employee Resource Groups Seeks out diversity events Helps determine future staffing needs and/or integrates affirmative action needs into the staffing plan Plan Supporters are: Retail: Recruiters and Hiring Managers Corporate: Recruiters and Hiring Managers Magnolia: Recruiter and Hiring Managers Logistics: Exempt Recruiters and Human Resources AVI: Hiring Managers and Human Resources Plan Supporters are: Retail: Recruiters and Hiring Managers Corporate: Recruiters and Hiring Managers Magnolia: Recruiter and Hiring Managers Logistics: Exempt Recruiters and Human Resources AVI: Hiring Managers and Human Resources

14. 14 The Role: Plan Coach (Customized by Organization) Retail/Logistics Trains and assists Plan Developer/Owner on affirmative action and how to write an action plan Follows up with Plan Owner on his/her efforts Connects Plan Developer/Owner to resources (e.g. Plan Coaches/Plan Supporters) to assist them in achieving action plan goals Monitors employment practices assessment results and inspects GFEB quarterly Recommends and/or takes appropriate action if no efforts have been made to implement affirmative action Plan Coaches are: Retail: THRDs, DHRMS and DMs Corporate: HR Managers Magnolia: HR Managers Logistics: LHRMs AVI: HR Managers Plan Coaches are: Retail: THRDs, DHRMS and DMs Corporate: HR Managers Magnolia: HR Managers Logistics: LHRMs AVI: HR Managers

15. 15 The Role: Plan Coach (Customized by Organization) Best Buy Corporate/Magnolia/AVI Communicates the action plan and goals to hiring managers to help them understand their role and the context in which the organization needs to focus its recruiting efforts For Best Buy Corporate, Magnolia and Audiovisions, there are multiple locations or business units rolling into one plan; therefore, the Plan Coach takes on a different role. The Plan Coach for Magnolia, Best Buy Corporate and Audiovisions is responsible for communicating the action plan and goals to hiring managers to help them understand their role and the context in which the organization needs to focus its recruiting efforts. Plan Coaches are: Corporate: HR Managers Magnolia: HR Managers For Best Buy Corporate, Magnolia and Audiovisions, there are multiple locations or business units rolling into one plan; therefore, the Plan Coach takes on a different role. The Plan Coach for Magnolia, Best Buy Corporate and Audiovisions is responsible for communicating the action plan and goals to hiring managers to help them understand their role and the context in which the organization needs to focus its recruiting efforts. Plan Coaches are: Corporate: HR Managers Magnolia: HR Managers

16. 16 Choosing the Players:Roles/Job Titles by Organization Demonstration of complexity of the playing field in which developed the training program. Demonstration of complexity of the playing field in which developed the training program.

17. 17 Addressing Training Needs Specific to Plan roles Inclusive of all organizations subject to AA Forum that fits the audience

18. 18 Training: Plan Developers/Owners Multi-Media/Multi-Phased approach*

19. 19 Training: Plan Coaches Multi-Media/Multi-Phased approach* You�ll note that You�ll note that

20. 20 Training: Plan Supporters

21. 21 Customized Approach to E-Learning Screen Shots Intro to Affirmative Action A Culture of Opportunity

22. 22 Taking Action on Goals

23. 23 Building AA Business Rhythm In addition, you will receive communication regarding the Affirmative Action business rhythm quarterly via the Retail Insider and Generalist Update. In addition, you will receive communication regarding the Affirmative Action business rhythm quarterly via the Retail Insider and Generalist Update.

24. 24 Sustain the Program Supporting Resources/Tools for all Organizations Internal Affirmative Action Web Page One stop shopping� for all training materials and resources Good Faith Efforts Binder Best Buy Field Specific Tools Manager online �action center� (Retail Only) Employment Practices Assessment

25. 25 Sustain the Program Screen Shots Internal Affirmative Action Web Page HR Professionals and Managers All Employees

26. 26 Good Faith Efforts Binder Binder that contains location�s placement goals, action plan to address goals and documentation of good faith efforts Retained at every location that has an Affirmative Action Plan Contains 3 plan years of data separated by plan year Referenced during AA quarterly meetings Audited semi-annually

27. 27 Sustain the Program Screen Shots Retail Online Action Center General Manager View District HR Manager View Employment Practices Assessment Good Faith Efforts Binder

28. 28 Landing AA in Our Culture Different structures necessitate changing how the work is approached, although business rhythms and roles run in parity. Plan ownership and accountability has to come from the business owner. Human Resources is the Coach and Subject Matter Expert. Train them first to prepare for their role. Reinforce the importance of changing behaviors and impacting the applicant pool. Don�t make it another compliance checklist. Utilize and grow partnerships with others in the organization (Diversity, Selection, Government Relations, Communications).

29. 29 Questions? Mark Nagel Director of Government Employment Practices Mark.Nagel@BestBuy.com Deb Dennin Corporate Affirmative Action Manager Debra.Dennin@BestBuy.com