VF’s Perfect Fit For Talent Management “SOLVE! Talent Management Under the Microscope” Conference

9th DDI Summit: April 29-30, 2014

Presented by Ron Lawrence, PhD, SPHR Vice President, Organization Development and HR Corporate Services

VF Corporation

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Today’s Presentation

• VF: Who We Are, Our Strategy & Performance (Financial, People)

• The VF Talent Journey

• Lessons Learned and Next Steps

• Q & A

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VF CORPORATION:

WHO WE ARE,

OUR STRATEGY &

PERFORMANCE

4

VF Corporation

5 HUMAN RESOURCES

Talent Leaders Culture

®

You may not know VF Corporation, but you know our brands.

6 HUMAN RESOURCES

Talent Leaders Culture

World's leading supplier of branded

apparel

Public company: NYSE:VFC

$11.4 billion in 2013 revenues

#250 on FORTUNE 500 listing

150 countries / 59,000 employees

Strong brands with leading market shares

Multiple channels of retail distribution

Financially strong and conservatively

managed

Powerful Brands. Powerful Platforms. One VF.

7 HUMAN RESOURCES

Talent Leaders Culture

VF’s Strategy has yielded Share Price Growth that’s among the best in the world.

2003 2017 2013

$61.25

$300

$75 2003-2012

VF was the

58th best-

performing

stock in the

$38

$245

12/20/13: 4 for 1 split

at $245 per share

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VF HR placed #17 in

“Most Admired for HR” study in

HUMAN RESOURCE EXECUTIVE

Magazine’s 2013 poll (Dec 2013 issue),

up from #37 in the 2012 study.

Most Admired for HR

1. Apple

2. Qualcomm

3. ExxonMobil

4. Royal Dutch Shell

5. Amazon

6. Google

7. Whole Foods Market

8. Nordstrom

9. Marriott International

10. Starbuck’s

11. Walt Disney

12. Nestle

13. Nike

14. Caterpillar

15. J.P. Morgan Chase

16. John Deere

17. VF Corporation 18. American Express

19. Boeing

20. Colgate-Palmolive

Other Apparel Companies On List

38. Ralph Lauren

47. PVH

VF’s HR work gets good external recognition, which aids our recruiting and retention efforts.

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We are proud to say we are one of FORTUNE’s “Top Companies For Leaders.”

Top Companies

for Leaders

Award

presentations in

Charlotte in

2010 and 2012.

FORTUNE Awards Ceremony in 2010

FORTUNE Awards Ceremony in 2012

2009 #22 Top Companies For Leaders 2011 #17 Top Companies For Leaders

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•

Most recently, VF placed well in Chief Executive magazine’s study of “Best Companies For Leaders.”

2014 Rankings:

1. Procter & Gamble

2. IBM

3. General Electric

4. Accenture

5. Unilever

6. Dow Chemical

7. McDonald’s

8. Monsanto

9. Hormel Foods

10. General Mills

11.VF Corporation 12. W.W. Grainger

13. Caterpillar

14. Verizon Communications

15. TJX Companies

2014 was VF’s first year of

participating in this specific study.

January/February 2014 Issue

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VF’s workforce is global, and developing leaders and common culture across such breadth is challenging.

North America USA Workforce: 26,060 Salaried: 8,912

South America Workforce: 944 Salaried: 670

Europe Workforce: 6,003 Salaried: 5,202

Asia Workforce: 6,018 Salaried: 3,328

Africa Workforce: 570 Salaried: 140

Central America Workforce: 2,851 Salaried: 588

VF’s workforce is in 54 countries

Total EES = 58,965

Add’l North America Canada/Mexico/Dominican Republic Workforce: 16,519 Salaried: 2,892

VF WORLD HQ Greensboro, NC

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Where was VF a decade ago?

• Valued leadership & talent development, but through most of company history, such efforts managed at brand or business unit levels (minimalist from corporate center).

• Started to pursue a company-wide leadership development strategy in 2004, as part of VF’s Growth Plan that added several senior roles:

• VP of Customer/Retail: Gannaway (from Sara Lee – started July 2004)

• VP of Mergers & Acquisitions: Terkelsen (from GE – started Dec 2004)

• VP of Strategy: Dull (from McKinsey – started Jan 2005)

• VP of OD: Lawrence (from Capital One -- started Jan 2006)

• VP/CIO: Schneider (from Gillette/P&G -- started Mar 2006)

• Combined Compensation & Training role prior to 2006 had developed some training programs, but VF created a separate & distinct Organization Development function in late 2005…

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That’s when Captain Corporate America joined the team! (okay, not really)

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When hired in January 2006, I did a needs assessment and created this “plan on a page”.

VF is recognized as the best-practice “talent development”

company in the apparel industry (THE Employment Brand).

Provide learning, talent development, performance management, leadership,

change management, succession planning & organization development solutions

that foster individual, team, and organizational

growth, engagement, transformation & business results

OD

Vision

OD

Mission

Strategic

Goals

Maximize business

& employee impact

of OD/HR initiatives

Deliver excellent HR

solutions efficiently

& effectively

Enable a best-in-

class performance

culture for VF

Talent pipeline

Succession planning

Talent development

agenda

Human Capital metrics

Career stages,

competencies & roles

Classroom training &

alternatives

Learning technologies

Training standards

Fiscal responsibility & ROI

for all OD/training

Align OD efforts to VF

strategic imperatives

Perf Mgmt practices

Learning organization &

development culture

Employee productivity,

engagement, value, diversity

Strategic direction for VF

learning, w/in a decentralized

framework

HR

Mission

HUMAN RESOURCES is a GLOBAL STRATEGIC PARTNER committed to

Achieving VF’s objectives by Maximizing Talent, Building Leaders, &

Advocating a Culture of Integrity & Respect.

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The work commenced with a 3-year plan vetted with the C-Suite.

These slides are from the

deck presented to

then-COO (now CEO) Eric

Wiseman in April 2006

that outlined the findings

and presented a plan and

metrics.

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Let’s recap the journey. In year 1 (2006) we began introducing foundation elements.

• Succession Planning focus: new tools

• C-Suite Talent Reviews: STAR meetings

• New talent assessment tools (e.g., 9-Box)

• Renewed focus on Performance Management

• New Executive Mentoring program (EMC2)

• Revised, expanded exec (XL) reading program

• Relaunched Exec Dev programs (e.g. VFLI)

• Commenced executive on-boarding practices

• Piloted Action Learning teams in Supply Chain

• Established VF Learning Community to share resources

• Established on-line mgmt & research resources

Learning & Development

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In 2007 VF continued to introduce more Organization Development tools & practices.

• Launched VF Global Associate Survey

• Successfully piloted E*Learning

• Developed Middle Mgmt curriculum

• Launched VF Diversity initiative

• Identified Key Roles & did a “blocker” analysis

• Launched Executive Coaching

• Began T&D financial inventorying

• Developed HCM strategy: 5-year HRIS plan

• Perf Mgmt: cross-calibration, ratings guidance

• New programs: MAX & Best of MAX (e-business)

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In year 3 (2008) these practices were further instantiated, with more efforts launching.

• VF Leadership Institute deliveries

• Senior Talent Reviews on-track 2x a year

• 2nd VF Global Associate Survey (done Sept-Oct 2008)

• Middle Mgmt T&D: driving e*learning utilization

• Commenced High Performance Workforce Initiative

• Commenced HCM/HRIS implementation work w/ Talent Acquisition efforts (Taleo)

• MAX Innovation program: delivered May 2008

• Mentoring Program: completed EMC2, & designing EMC3

• Put 2 new, improved 360-feedback tools in place

• Introduced Chairman-led exec development forums

THE RIGHT STUFF

EMC3

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In 2009, we kept supporting what we’d put in place, but also kept building on it.

• Began the High Performance Workforce Initiative: retooled Perf Mgmt to have a global competency framework, improved ratings differentiation, better feedback mechanisms. Ultimately became new MAXIMIZING PERFORMANCE process

• Began global rollout of Talent Acquisition systems to attract & on-board talent additions

• Continued to drive HCM/HRIS implementation

• Emphasized connecting the OD and T&D efforts of Corporate, Europe & Asia

• VF makes FORTUNE’s Top Companies For Leaders poll for the first time at year-end – hitting the goal!

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2010 brought a new focus on Innovation.

• Talent reviews continued and expanded deeper into organization: PFP reviews, Europe & Asia reviews, etc.

• 3rd VF Global Associate Survey done (April), & VF affirmed as full member of Mayflower Group survey consortium

• Maximizing Performance impleented across company, w/ 6 Mgmt Dev modules provided to 2000 leaders (details later in deck)

• Talent Acquisition software up and running in US and Asia, installed in Europe at year-end. G-Comp installed for all MICP.

• MAX Innovation program delivered at MIT

• Pilots of new 360-feedback & coaching process The Leader’s Path conducted (rolled out broadly in next ear)

• Rolled out new “job moves to develop global leaders” program

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In 2011, the goals became further acceleration and renewal.

• Developed and rolled out VF’s Leadership Essentials Acceleration Process (LEAP) assessment experience (w/ DDI)

• 4th VF Global Associate Survey done (September) with new vendor, Corporate Executive Board

• MAX Global Brand Management delivered in NYC

• Conducted the first “go outside” meeting of the Organization Development Advisory Council (HR and OD heads of other FORTUNE 200 companies visit VF and assess our work)

• Launched the global/across-HR Redesign Development Initiative (ReDI) in October to provide more development offerings for middle management and front-line leaders

• Developed and launched Leadership Connections Plus program for senior executives to build relationships with rising talent

(modeled on PepsiCo’s “weekend at the CEO’s ranch” program)

• VF named one of the Best HR Organizations in HR Executive, and makes FORTUNE’s Top Companies For Leaders poll a 2nd time

ODAC

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In 2012, pilots of new programs became a priority even as more accolades came our way.

• Two VFLI programs were conducted, and for the first time ever the program was delivered in Shanghai, China

• LEAP program continued with cohort #2

• MAX Winning Organizations delivered in Tarrytown, New York

• Conducted 2nd Organization Development Advisory Council w/ attendees from Pepsico, Lowes, YUM! Brands, Eli Lilly, CCL, etc.

• Developed and began piloting new programs of the ReDI/LEAD (Leadership Excellence and Development) project across VF

• Executive Committee oversaw creation of an IMPACT ROLES list that we use to monitor key transitions and developmental needs.

• VF HR was named the 37th best HR organization in a global study by HR Executive Magazine (Dec 2012)

ODAC

VFLI Asia

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Last year we enjoyed some further wins as the company broke the $11B revenue milestone.

• 5th VF Global Associate Survey done (April), with record participation rates across the company

• LEAP program continued with cohort #3

• MAX Digital! delivered in Silicon Valley

• ODAC #3 conducted w/ leaders from Pepsico, Eli Lilly,

McDonalds, Whirlpool, Corning, UNC Charlotte

• CORNERSTONE succession planning software module implemented to build Talent Profiles for MICP population

• Continued rollout of new programs of the ReDI/LEAD (Leadership Excellence and Development) project across VF

• Key Talent Segment reviews introduced in the STAR meetings, with in-depth reviews of all Finance and Retail talent completed.

• VF named #17 best firm for HR in HR Exec magazine, & CHIEF EXECUTIVE magazine names VF #11 Best Company for Leaders

ODAC

MAX DIGITAL

ODAC

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Attract

&

Recruit

Assimilate

Develop,

Manage,

&

Move

Reward

&

Retain

Retire

&

Outplace

Manage HR Information

VF’s development strategy relies on segmentation: do the right things for right people at right time.

Segmentation

&

Development

Planning

Job

Assignment

Training

Programs

Coaching/

Feedback

Off-Job

Experiences

Segmentation &

Development Planning:

• Performance Management

ratings differentiation &

renewed emphasis on

Development Plans underlie all

development planning

• Targeted development

examples:

•Senior Execs: Coaching

•Top Talent: VFLI, EMC2,

Job Movement, coaching,

new training programs

•Other MICP, PFP: middle

mgmt curriculum, EMC2

Develop HR Talent

•Job Assignment

Stretch role

Strategic project/Action Learning

•Training/Education

Executive/Leadership Training

Formal Education

•Coaching & Feedback

Assessment experiences

360 feedback

External coach

Internal mentor

•Off-Job Experiences

Corp/non-profit board position

Community leadership

Speaking engagements

Development Accelerators:

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LESSONS LEARNED

&

NEXT STEPS

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One of the most important early moves: secure and engage your C-Suite Steering Committee.

• Every business unit at VF does a 2-4 hour review of its business results every quarter – no exceptions

• When we launched the VF OD agenda, we asked for and got the same approach

• Every quarter the CHRO and VP OD meet with the OD Executive Committee (VF’s “Top 6”: CEO, CFO, Global President Supply Chain, and VF’s 3 Group Presidents) to:

– Review strategies and progress

– Do specific “deep dives” as appropriate (e.g., Impact Roles mapping, calibration of other senior roles)

CEO Eric Wiseman CFO Bob Shearer GP Scott Baxter GP Karl Heinz Salzburger GP Steve Rendle SC President Tom Glaser

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Anchoring Beliefs

“Leaders Teach Leadership” & “Leaders Learn Best By Doing”

• Training programs:

• Middle Mgmt curriculum

(Maximizing Performance)

• “Leaders as Teachers”

(mgrs deliver classes)

• VFLI, SCU, MAX, etc.

• Feedback & Reflection

•360 feedback options: The

Leadership Circle profile, tools

from CCL

• Executive Coaching

• Job Movement

• 24 x 7 x 365

• Structured, tracked

• Global assignments

• Moves planned in

STAR meetings

• Key Roles analysis

• Robust Performance Mgmt

process

• Development Plans emphasis

• “Action Learning” project teams

Be clear on your philosophical views and align the work accordingly.

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Start with a focus. We began with Top Talent and created an anchor process: STAR.

• Operating Committee reviews senior executive talent across company

• Presentation of talent, key jobs, anticipated needs

• Assess health of succession plans, including readiness, depth, and diversity

• Accountable executives commit to specific moves & other specific actions to enhance succession plans and development of bench strength The combination of these components drives increased officer

involvement & ownership of corporate executive talent decisions.

September

Executive Talent Review

“Review and monitor”

March

Executive Talent Review

“Plan and commit”

• OC members, Coalition Presidents review progress against prior commitments

• Opportunity to fine-tune plans and to make new commitments

• Enables new plans to be developed to address changes in the business and the development of executives

• Meeting can parallel March design or be focused differently as needed (e.g., Hong Kong gathering 2008)

SENIOR

TALENT

ASSESSMENT

REVIEW

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The secret to success is constancy of purpose. Benjamin Disraeli

• Senior Talent Assessment Review meeting purposes: • Provide C-Suite members an overall talent update (MICP) with “deep dives” on select talent.

• Update 9-Boxes and discuss needed moves for Brand Presidents, VF Vice Presidents, and Directors.

• Open discussions of Talent Development progress & needs.

• Review open MICP-level roles: developmental moves to target.

• Reviewing VF’s STAR progress: meeting history. • 9/11/2006 Lake Tahoe, NV • 3/15/2007 Greensboro, NC • 9/18/2007 Greensboro, NC • 3/25/2008 Greensboro, NC • 9/10/2008 Hong Kong • 3/25/2009 Greensboro, NC • 9/22/2009 Greensboro, NC-led teleconference • 3/31/2010 Palo Alto, CA • 9/13/2010 Los Angeles, CA • 3/11/2011 Cancelled due to pending Timberland acquisition • 9/14/2011 Boston, MA • 3/19/2012 Greensboro, NC • 9/11/2012 Greensboro, NC • 3/11/2013 Greensboro, NC • 9/12/2013 Greensboro, NC • 3/4/2014 Greensboro, NC • 9/9/2014 Tentative Greensboro, NC

Be disciplined. Make Talent reviews a key milestone on the calendar, as important as any financial review. VF conducts day-long Senior Talent Assessment Review meetings twice annually.

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Align actions and words. We say “leaders teach leadership” – so we have to show it! We do.

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Use accessible models. For example, we strive to prepare leaders for the “turns” in their careers.

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Turn 2 Leading Managers

Turn 3 Leading Functional

Managers

Turn 4 Leading Business Managers

Turn 5 Leading Group Managers

Turn 6 Leading Enterprise Manager

(CEO)

Turn 1 Leading Others

Source: Charam,

Drotter, Noel.

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Find measures. VF uses global associate surveys to measure engagement, culture across the company.

• VF conducted its first global engagement survey in April 2007

• Multi-variate regression and cluster analysis are used to identify key themes and engagement drivers; comparisons to longitudinal results and external benchmarks drive action plans at VFC, business unit levels

• VF is a full member of the Mayflower Group survey consortium and benchmarks its results against ~50 world-leading companies, including GE, P&G, PepsiCo, 3M, IBM, Eli Lilly, Nike, Target, etc.

April 2015

Next Survey

Cycle

Commences

March 2007

VF conducts first

Global Engagement

Survey

October 2008

VF joins

Survey Consortium

September 2008

2nd global

Survey conducted

Nov 2010

VF becomes

full member

April 2010

3rd global

Survey conducted

Oct 2011

4th global

Survey conducted

April 2013

5th global

Survey conducted

Q1 2011

Vendor change

33 HUMAN RESOURCES

Talent Leaders Culture

We use what's proven. Survey OD is a powerful tool, so we leverage it.

Approach to Raising Engagement

1. Establish common

definition

2. Assess

engagement levels

3. Identify key drivers

4. Develop & implement

action plan

VF’s Survey is

administered by

Corporate

Executive Board

VF’s Survey: • 22 languages

• On-line & paper

• 24 month cycle

• Benchmark w/

Mayflower Group

• Ofc & retail ees, w/

additional SC subsets

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Be consistent and maintain things that work. Program example: VF Leadership Institute. VFLI is in its 11th year and continues to provide great development for rising talent.

VF Leadership Institute Learning Objectives:

1. Develop specific skills re: business case problem-solving; innovation & design thinking;

consumer insights; communications & executive presence; global leadership; managing

team dynamics.

2. Provide a forum for participants to build cross-coalition, cross-functional, and cross-

geography relationships and networks.

3. Provide Operating Committee members an opportunity to observe the thinking and

executive presence of rising VF leaders.

The 2013 business case problem was co-written with business leaders from VF’s 2nd largest brand

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Innovate. We create custom programs like VF MAX to push ourselves to do new things.

Design includes lectures,

various experiential &

“immersive” learning, group

work, “hands on” individual

experiences, and plenty of

fun team-building as well.

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For example, the 2012 VF MAX had us piloting experiential team-building on sailboats.

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• Example: VF’s LEAP program, a custom-designed,2-day assessment experience to target attributes and competencies needed to be a successful Marketing Unit President or Functional Senior Executive.

• 30 participants 2011-2013, with 10 more underway this year.

Leadership

Essentials

Acceleration

Process

Drive Innovation

Think Globally

Drive Growth

Hire, Develop and Inspire

Superior Talent

Deliver Financial Results

Targets Leadership Capabilities Needed

Work with Good Partners. DDI has been invaluable to us in crafting numerous solutions.

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DDI was also a key partner to VF as we retooled VF’s Performance Management process (2008-2010.)

One Key Deliverable: A Global Competency Model

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Create a network of powerful partners. Stretch. The VF MAX program always includes partnering with a major university.

In 2010, ~70 execs from around the world spent a week in the various labs of MIT’s Media Lab (Dr. Andy Lippman, Director of the site.)

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Go Outside. Our OD Advisory Council gives HR invaluable input on our talent agenda.

2011 2012 2013

What is ODAC? • Corporate OD team’s informal “board of directors” assembled via team networking

• How it works: 6-8 heads of OD, Talent, and/or HR from leading companies, and 1-2 academics,

invited for a day (6 hours) of best-practices sharing – with the VF OD agenda as case study

• VF covers all travel expenses and compensates attendees for their time and insight by either

offering a donation in the person’s name to a specified cause or we give them VF products

(jackets, jeans, shoes) and invite their feedback on the quality of the products as well as on our

processes/practices

• Meeting is attended by all VF OD staff, as well as invitees from across HR and other parts of the

business – hugely popular meeting

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Remember: small can be mighty. The enterprise-wide OD team started small, and remains lean even today.

Field HR Staff w/

T&D responsibilities

Field HR Staff w/

T&D responsibilities

Field HR Staff w/

T&D responsibilities

Field HR Staff w/

T&D responsibilities

Field HR Staff w/

T&D responsibilities

Field HR Staff w/

T&D responsibilities

Open – Mgr,

L&D & OD

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It’s not all been smooth sailing. Some of the challenges we’ve faced….

• Dynamic tension between Corporate and field offices (brands and regional HQ’s) re: governance – who decides and who funds?

– Corporate Federal

– Group/Coalition State

– Brand/Local City/Municipality

• Above issue exacerbated by the “One VF” message – how is that meant to work in practice? Still figuring out.

• Limited resources means “haves & have nots” (some brands doing well and seriously funding, others not and pulling the $$) -- how to manage these issues and communicate about them…

• Former OD head for Europe wasn’t a dotted line and did not want to play with the center – made for some disconnects, challenges

– Naming programs the same as Corporate offerings, etc. (VFLI EMEA)

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THANK YOU

FOR YOUR INTEREST IN OUR WORK.

WHAT QUESTIONS DO

YOU HAVE?