Because People Matter -- see why H-E-B is rocking their internal communications, company wide, across all channels.

1. Because People Matter –
Sustaining A Culture of Service
& Appreciation

2. Company Overview
 Founded in 1905 – Florence Butt
 Commitment to hard work &
community service
 1919 – Howard E. Butt takes over the
business
 1927 – second store opens in Del Rio
 1928 – HQ moves to RGV
 1938 – HQ moves to CC
 1971 – Charles becomes President;
$250 million in sales
 1981 – HQ moves to SA
 Today – 315 stores in Texas & 36 in
Mexico; $15 billion in sales

3. Partner Communications & Culture - Our Mission
To effectively connect and engage our Partners in a way
that celebrates and enhances our culture both internally
and externally.
Objectives:
Partner communication -
• Reinforce our internal brand “Because People Matter” through multiple channels,
both digital and print, to ensure message clarity & consistency
• Streamline communications flowing from all Corporate Administrative areas to the
stores
• Strategically manage new Partner Portal
• Continually educate the business on new and creative ways to communicate key
messages to specific audiences
• Measure our results - reinvent and administer Partner engagement survey
Rewards & Recognition—
• To honor, acknowledge and celebrate all Partners
• Reinforce desired behaviors
• Continually make Partners feel valued

4. Our Cultural Foundation
Bold Promise:
Mission
H-E-B Partners taking a stand together to build
the Greatest Retailing Company
Purpose To improve the lives of our Partners and Customers
Customers: Partners: Business Communities:
Strategic Results:
Service, Great Helping Here
Pillars
quality and Place to Sales and
Value Work Profitability
Foundation Our Culture: Each and Every Person Counts

5. Our Core Values
Compete to Win - DRIVE
Care for People - HEART
Customer Service - SERVICE
Work Ethic - COMMITMENT
Community Service – COMMUNITY
INNOVATION

6. Our Employer Brand
It’s Different Here Because People
Matter:
Human Touch, Authentic, Meaningful and
Purposeful
Developed through extensive focus groups
with Partners throughout the company
Our guide for every action we take and every
decision we make
Simple, easy to understand language
Emphasis on REAL people and culture
Tools you can use…
Brand Guidelines for Because People Matter
Online Resource Library
Communication calendar

7. Our Goal
An engaged workforce – our Partners
understand the mission & purpose of the
organization and their role in achieving it
each day.
Believe that H-E-B is a great place to work
Over 70,000 loyal ambassadors of the Brand
Knowledgeable about our products and our
business
Passion & enthusiasm = a great shopping
experience for our customers

8. Partner Engagement Defined:
Unlocking Partner Potential to Drive High Performance
The extent to which Partners are motivated to contribute
to organizational success, and are willing to apply
discretionary effort to accomplishing tasks important to
the achievement of H-E-B’s goals

9. Our Objectives
Engage the hearts and minds of our Partners through
relevant and meaningful communication
Communicate our higher purpose – “to improve the lives of
our Partners and Customers”
Define what it takes to lead The H-E-B Way
Recognize and reward desired behaviors
Measure our results – new Because People Matter survey
linked to business results
Focus on three key drivers of engagement –
communication, leadership and recognition
9

10. Communication

11. A perfect storm…
Now is the time for clarity & transparency:
Uncertain economic environment
Expense reductions
Aggressive change & growth agenda; complexity
of the business
Leadership transitions – new H-E-B President
named in January, 2010
Our audience demands and expects it
Over 40% of our Partner population is Gen Y (1976-
1982)
Influenced by friends & peers more than authority
Highly technological, social, and impatient

12. 2008 Communication Audit
What did we learn?
Bold Promise Survey – communication consistently rated as
an opportunity
Store feedback – push versus pull strategy; too many
competing messages and priorities
Communication audit - “Tower of Babble” – reliance on e-
mail as our only channel (100-150 e-mails per day),
multiple web sites, newsletters, etc.
EOC Research – our Partners couldn’t find information on
the basics, i.e. benefits & career opportunities
Most powerful form of communication is face to face
Culture – Partner experience varies by work location and
leadership
Our culture is the one thing about HEB that our Partners
would never change…

13. What action should we take?
Communication Strategy for the Future:
Tell the story:
Clear and consistent messaging – “connecting the
dots”
Emphasis on face to face interactions
Focus on behaviors – what action do we want
Partners to take?
Hear it Here first mentality
“Pull” versus “push”
Two-way discussion

14. Balancing the Conversation
Partners want to know:
What to expect: As an H-E-B Partner
How we’re doing: Company info, strategy & results
What’s in it for me: Career opportunities/job postings, 401K,
scholarships, training
How I fit in/alignment with my values: My role, my relationship with
customers and leaders, where I am in the organization, why our
products are better, how my actions have a direct bearing on
results
How can I make a difference?
We want to teach them:
Passion for our products and services
Actions needed to drive results
Their role in the bigger picture
Great customer service techniques

15. The Big Picture
Task
Application PartnerNet E-mail
Manager
What do I want What do I I want to talk
Think them to know? want them to to you.
do?
Merchant
Build Display, Question for UD
Roadmaps,
Examples Promotions,
Complete Survey, or DM at Store
Order Product 108
Contests

16. Now you’re talking…
Multiple channels where Partners can
access information
Annual
Leadership Kickoff Meetings
Bi-annual
Because People Matter Meetings at
every work location
Quarterly
Strategic updates/financial results;
videos from the CFO posted to
PartnerNet for leaders
Bi-Monthly
Printed newsletter distributed to all
work locations
Monthly/Period
Regional Leadership Exchange
Sessions (two/month)
Partner Exchange/Admin roundtables

17. Channels Cont’d.
Weekly
E- mail news updates - one page
PDF to be printed & posted
(database created through Valued
Partner Perks)
Benefits
Career opportunities
Partner Perks/Own Brand
Company strategy & cost saving
Daily
Personalized web portal; ability to
access from home
E-mail
Partner feedback loop
Leadership on Location visits
As Needed
Pinpoint Messages and Text

18. A Look at the Last Year
Launched in September 2009
50,642 distinct users over the past
30 days
Since launch, we’ve collected
feedback from Partners through:
• Home page (60,001)
Partner Focus group sessions •
•
Video: Back-To-School (8,898)
Video: Blooms (8,239)
• Video: Eat Better (5,531)
User Interface experts •
•
Video: Darrell Cost Conscience (5,058)
My Career & Life (2,794)
• Video: H-E-Buddy (1,999)
Feedback form on PartnerNet •
•
My Career (1,496)
Search (1,492)
Hits in
• My Money (938)
• Phone Directory (935) last 30
• Partner Search (902) days
• WGO (895)

19. PartnerCast
Internal video solution –
Think YouTube
Blogs
Video Ratings
Comments
Most Popular Rankings
Launched June 14th in
conjunction with
companywide Get Movin’
event
All Partners can upload videos
(approval required prior to
appearing on the site)
Videos only available on the
H-E-B network
Go Live Channels: Produce,
GM/Drug, Shelf Edge, Healthy
at H-E-B

20. More Exciting Updates
Text it to Me!
Partner Text Alerts will give
Partners the opportunity to
connect with H-E-B on various
topics such as Valued Partner
Perks, Health and Wellness,
Crises Communications,
Recalls, etc.
Partners can choose the text
channels you want to follow!
Launches Sept. 29th

21. Leadership

22. Leading the H-E-B Way

23. Leadership Statement
A Head for Business.
We approach our business with an unwavering focus on
integrity, innovation, strategic thinking and high standards.
A Heart for People.
People are at the heart of everything we do. Every decision
we make and every action we take, we do with our Partners
in mind. At H-E-B, the individual ideas and contributions of
each and every person really do matter.
A Passion for Results.
We thrive on setting aggressive goals for ourselves and
continually seeking new ways to drive performance, improve
efficiencies and achieve results.

24. Leadership on Location
Objectives:
Stay in tune with the business –
“Closer to the Partners, Closer to the Customer”
Focus on cultivating relationships, not looking for problems
“There is nothing more inspirational to our Partners than a
visit from a Senior Leader.”
Keep an eye out for key talent
Emphasis on quality versus quantity
Listen & Learn - “You have to be involved to make good
decisions.”
Culture is perishable, in other words…“Sell it or smell it!”
Who’s job is it to “sell it?” - Each and Every Leader
Our goal - building Partner engagement one conversation at a
time
Launched in January, 2009 – over 1600 visits logged
to date

25. Recognition

26. People Make the Difference
At H-E-B, we want to recognize and celebrate the hard work
of every Partner, because just by being part of the H-E-B
team, we know they are special.
When Partners achieve milestones, are promoted, go the
extra mile, and do extraordinary things, we recognize,
reward and celebrate their achievements.
We are the story tellers and the culture builders, as we
honor those Partners who best embody the spirit of H-E-B.
Traditional vehicles – Inside HEB, PartnerNet, etc.
New vehicles – Because People Matter blog, Flickr site,
videos, etc.

27. More Frequent – Less Formal
Spot Recognition: All Partners
• Thanks-A-Lotto
• Lottery style scratch off cards awarded to Partners in all areas
of the business (Admin, MWT, Central Market, HFD & SAFD)
• Prizes are made up of Own Brand items and H-E-B gift cards
• Range in value from $2 - $100
• All Redeemed tickets enter the Partner into a regional
quarterly drawing for $2000
• High Fives
• Cards sent via email to Partners from other Partners/Leaders
• Ideal for Partners with constant access to computers such as
Administrative Support Partners

28. More Formal - Less Frequent
Formal Recognition: All Partners
• Because People Matter Recognition Awards
• Formal awards ceremony held once a year (February)
• Awards are based on our Core Values (9 Total)
• Partners are nominated by their peers
• Certificates awarded to all nominees
• Lapel pins and badge ribbons awarded to all work location winners
• All regional winners are invited to attend the ceremony and are
awarded a trophy and check
• Service Awards
• Formal awards ceremony held once a year for Partners
with 20+ years of service (May)
• At 5 year increments, Partners receive lapel pins and
can select from a catalog of gifts

29. Results

30. Because People Matter Survey Results
Over 38,000 Partners
participated in the survey!
Why was it important?
The survey allowed Partners to make their voices heard!
Highlighted the areas where we can improve
What did it measure?
How Partners feel about the Company
How Partners feel about their Leaders
Areas where the Company can do better

31. Because People Matter Survey Results
H-E-B responses were better than the industry average for all categories!
How Partners feel about H-E-B overall…
82% favorable response!
Survey items included:
• I am proud to work for the Company
• I am satisfied with the Company as a place to work
How Partners feel about their Leaders…
76% favorable response!
Survey items included:
• My immediate supervisor provides me with recognition for good work
• My immediate supervisor listens and responds to my ideas and concerns
How Partners feel about H-E-B’s performance…
80% favorable response!
Survey items included:
• We regularly use Customer feedback to improve our processes
• Partners cooperate to get the job done

32. 105th Anniversary – A Year of Celebrations!
A year of celebrations, focused on renewing our commitment to our Culture
and tied to our three pillars: Our Partners, Our Customers, and Our Community

33. 105th Anniversary – A Reason to Celebrate
At a time when other
companies are struggling and
even failing, H-E-B continues
to thrive
That is all thanks to our
amazing Partners
It is the perfect time and the
perfect platform to say…
Thank You!
“It might look like a simple pin. But to customers and fellow
Partners, it’s a symbol of how each of us can make a difference
every day. So join us as we celebrate 105 years of service.
Because of you, we provide a great shopping experience for
millions of customers every day. After all, it’s about giving
people more than they expect Because People Matter.”

34. Leadership Swap
Leadership Swap – January & February, 2010
• 13 Partners from across the company switched places with a Sr. Leader
(Partners entered themselves on PartnerNet)
• Partners enjoyed time with Leaders that they would not ordinarily have the
opportunity to meet

35. A Campaign to Engage Hearts and Minds
Draw a clear connection between our Bold Promise and our
purpose to improve the lives of the Customers and
communities we serve (future/vision)
Remind our Partners that no matter what their job is – they
“make a difference” (involvement & belonging)
Demonstrate our appreciation for the work they do
(recognition and rewards)