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The Power of Human Resources... The Transformation of Domino’s Pizza

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  1. The Power of Human Resources... The Transformation of Domino’s Pizza The Michigan College and University Professional Association for Human Resources October 2, 2009

  2. Domino’s History • The Culture I Inherited . . . • The Culture I Desired . . . • Tools of Change • How Have We Done? • The Role of Human Resources

  3. First Store in Ypsilanti, MI

  4. Domino’s Brand

  5. Founder Tom Monaghan

  6. 1998 . . . A Year of Trauma for Domino’s Pizza

  7. We are all a product of our environment . . .

  8. We are all a product of our environment . . .

  9. March 12, 1999 My First Day . . .

  10. My First Day . . . “Meet the Troops” “Meet with My New Team” “Tour the Building” “Media Interviews”

  11. My Second Day . . .

  12. My Second Day . . . “Meet with the HR leader” “Go to a bar and drink!!”

  13. Managing Complex Change Case for Change Vision Skills Incentives Resources Action Plan Change Status Quo Vision Skills Incentives Resources Action Plan Case for Change Skills Incentives Resources Action Plan Confusion Case for Change Vision Incentives Resources Action Plan Anxiety Gradual Change Case for Change Vision Skills Resources Action Plan Case for Change Vision Skills Incentives Action Plan Frustration False Starts Case for Change Vision Skills Incentives Resources

  14. My Case for Change . . . • Cut Turnover in Half • “100 Best” Culture • Wall Street Ready • Celebrate 10,000 Stores • $200 Million EBITDA

  15. Tools of Change . . .

  16. Get My Team Right . . . Executive Team Leadership Team

  17. Get Our Cultural Priorities Right . . . Customers Shareholders Team Members

  18. Get Our Cultural Priorities Right . . . #1 Team Members Customers #2 #3 Shareholders

  19. Start Hiring ATTITUDE – Stop Hiring “Warm Bodies!” Skills Attitude Perfect Balance Can perform job Can schedule hours Comparable experience Meets job requirements Enthusiasm Passion Smiles Seeking opportunities/ambitious

  20. The Stress Curve 100 100 DESIRABILITY PERFORMANCE Lo Mid Hi ANXIETY – STRESS - TENSION

  21. Our Vision Exceptional franchisees and team members on a mission to be the best pizza delivery company in the world.

  22. Our Guiding Principles One Brand. One System. One Team. Putting people first Demanding integrity Striving to make every customer a loyal customer Delivering with smart hustle and positive energy Winning by improving results every day!

  23. Our Business Strategy

  24. Changing A Culture Requires Bold and Aggressive Tactics: • No Re-hires • No Demotions • Lay-offs / De-layer • Get Rid of the “Coalitions of the Unwilling”

  25. Rule stolen from Ken Blanchard: If You Have Anyone Who “Has Quit But Hasn’t Left Yet”. . . Get ‘em Off Your Team!”

  26. Change “Levers” . . . • Get Rid of the Suits and Ties! • Recruited EVP of “PeopleFirst” • $27 Million WRC Renovation • Tripled Spending in Learning and Development

  27. Change “Levers” . . . • Implemented Career Pathing Program • TAD Bonus Plan / Equity Ownership • React Fast / Change Fast / Move Fast • Over-Communicate with Team Members • Create “Dinner Table Talk”…..

  28. Annual Anniversary Event Reppy Awards Pay-for-Performance “What’s Up” Domino’s Celebrations Anniversary Calls/Messages Birthday Cards/ Prizes Smile Committee Flat Screens throughout WRC Star Welcome Dot Shop Blueprint for Wellness Performance Review and Development Programs Dennison Culture Surveys Slice of the Pie

  29. “We” Successfully Changed the Culture of the Place!

  30. A Strong, Healthy Culture Drives Impressive Results. Fact or Fiction?

  31. Measures of Success: • Turnover Reduction • Talent Acquisition • Succession Planning • Surveys (100 Best Finalist) – “Best Place to Work” Awards • Growth of Market Share – Sales – Profits • Shareholder Value Creation • Wealth Transfer to Employees and Families – Change Lives! • Happy Team Members….Smiles….Energy!!

  32. Human Resource Professionals are the MVP’s of High Performance Organizations!!!

  33. Questions?