The Leadership Model. Executives v2.0

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1 The Leadership Model Executives v2.0

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3 Our Cultural Levers The activators of our Purpose We share a passion for tasty, healthy and well-sourced food. Throughout our customer experience, we proactively share this passion and create an emotional connection with better food so that all of us can help change Canadians lives. We create WOW service! We offer a differentiated experience that is enthusiastic and helpful. We add value by inspiring our customers and providing advice, from putting together meal ideas to sharing new trends. We strive to create an emotional relationship for our customers with our people, our stores and our brand. We merchandise with our customers in mind. We sell what our customers want and inspire them by presenting our affordable offer in a way thatt they want to buy it. We create value by anticipating i customer needs and constantly tl adapting our sales approach to them. The store is the theatre. We all support our store teams. We simplify their work by designing efficient processes and solutions so that they deliver the WOW experiences for our customers. We listen to each other and help to make it happen. We create new and impactful solutions. We discover and build products, processes, services, technologies to support us in anticipating and surpassing the expectations of our customers. There is a freedom to try new things and encouragement to challenge the status quo with a willingness to take risks.

4 The Leadership Model Our g guide for success Develop and promote a shared sense of purpose by implementing strategies and priorities that create value l ffor th the customer. t Build and leverage relationships, l ti hi ttrustt and d people s strengths as a way to engage employees and partners to deliver p better Grow the business by capitalizing on market opportunities, cultivating innovation and maximizing the value of strategic investments. Foster a culture of excellence by enabling employees to deliver results, promote continuous improvement and accelerate change.

5 Overall Performance & Behaviour Descriptions Rating Unsatisfactory In Development Meets Performance Expectations Exceeds Expectations Exceptional Contribution Description Employee is not performing to the requirements of the job. Performance must improve significantly within a set period of time as specified in a performance improvement plan if the individual is to remain in this position. Employee may be new to role, had a step up in responsibility, or moved to a new area, or may have been in the role for a period of time but performs inconsistently. Employee needs to make sure s/he fully understands the performance goals and behaviour expectations to make sure that the majority ofperformance goals are achieved by the next performance review. The employee should address specified opportunities to ensure that this rating is assigned for no more than one full performance review cycle. Performance is solid and clearly and fully meets all the requirements of the position in terms of quality and quantity of work. Minor deviations may occur, but the overall level of performance meets or occasionally exceeds all position requirements. Performance regularly surpasses job requirements and accomplishments are frequently above expected levels in terms of quality and quantity of work. The employee consistently delivered thorough and on time results and performance made a clearly identifiable contribution to the organization. Performance levels and accomplishments far exceed expectations. The employee consistently achieves outstanding results that are widely recognized as truly exceptional by others in terms of both quality and quantity. The employee clearly stands out as making an exceptional or unique contribution to the organization and being a role model for others.

6 Executive Competencies & Ratings

7 Develop and promote a shared sense of purpose by implementing strategies and priorities that create value for the customer. t Executive Competencies Building a Shared Sense of Purpose Thinking Strategically Customer Orientation Help develop and promote Sobeys sense of purpose and lead the team to serve the overall purpose. Use data and/or partner with stakeholders to identify strategic Business Unit issues and opportunities. Lead execution of strategies and priorities that support Sobeys differentiated service positioning. Behaviours Inspire others to act in ways that promote and advance Sobeys Purpose. Develop and evaluate options that best advance Sobeys Purpose and BusinessUnit strategy. Review and interpret data to champion initiatives that create added value for the customer. Communicate Sobeys Purpose often, with passion and enthusiasm. Focus and coordinate efforts and resources on the Business Unit priorities with the greatest impact. Create an environment where customer issues or ideas are used to improve service. Be a role model for Sobeys values and cultural aspirations. Set objectives and plans to close current gaps, adjusting priorities as circumstances change. Establish systems, policies and procedures that promote customer service and ensure customer satisfaction.

8 Rating Guidelines for ALIGN UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Building a Shared Sense of Purpose Does not communicate Sobeys sense of purpose in a way that connects and drives understanding in team members. consistency in communicating Sobeys sense of purpose in a way that connects and drives understanding in others. Consistently and clearly communicates Sobeys sense of purpose in a way that connects and drivesteammembers members to act. Communicates Sobeys sense of purpose with passion and inspires team members to achieve desired Inspirational role model across the organization for actions and behaviours embodying our Values and Culture. Thinking Strategically Does not align Business Unit strategy and goals with Sobeys Purpose and priorities. consistency it in aligning i Business Unit strategy and goals with Sobeys priorities. Consistently uses data and leverages business partners to align Business Unit strategy and goals with Sobeys priorities. Leverages data and business partners to focus efforts and resources on Business Unit priorities with the greatest impact. Develops and evaluates options and adjusts priorities iti as circumstances change, to significantly advance Sobeys Purpose and Business Unit strategy. Customer Orientation Does not use customer data to develop or execute strategies that support Sobeys differentiated service positioning. consistency in using customer data to develop or execute strategies that support Sobeys differentiated service positioning. Consistently leverages customer data and feedback to set priorities and strategy to support Sobeys differentiated service offerings. Actively seeks customer feedback to set priorities and strategy to support and improve upon Sobeys differentiated service offerings. Fosters an environment where customer data and feedback sets priorities and strategy, and advances improvements to systems and policies to promote differentiated service across our organization.

9 Build and leverage relationships, trust and people s strengths as a way to engage employees and partners to deliver better Executive Competencies Building Relationships and Trust Engaging Employees Developing Talent Show others they are valued by acknowledging their specific strengths, contributions and successes. Delegate tasks and decisionmaking responsibilities with clear boundaries, expectations, support, and follow up. Determine and develop the mix and level of talent required for the team while recognizing the value of a diverse and inclusive workforce. Behaviours Care about others and foster a work environment based on trust and respect. Empower employees by communicating scope, objectives, decision making authority and expected outputs. Create opportunities for employees to achieve their full potential by leveraging gtheir strengths and putting them in appropriate roles. Provide support and Encourage collaboration and encouragement to ensure that Encourage employees to take on partnerships within and across the team members have the tools new challenges that allow them work groups to achieve and confidence to do their job. to learn and grow. Develop strategic partnerships that lead to mutually beneficial business Give work purpose by sharing the context for assignments and connecting responsibilities to Sobeys Purpose. Give timely, specific feedback and instruction on performance and progress. Identify critical talent and work proactively with them to ensure retention and career satisfaction.

10 Rating Guidelines for ENGAGE UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Building Relationships and Trust Does not foster a trusting work environment or relationships that contribute to business consistency in fostering a trusting work environment or relationships that contribute to business Consistently fosters and leverages a trusting work environment and relationships by valuing other s strengths that contribute to business Leverages trusting relationships and influences cross functional collaboration to achieve Develops strategic partnerships that lead to mutually beneficial results across the organization. Engaging Employees Does not provide employeeswith clear expectations and necessary tools to be successful and achieve desired results in support of Sobeys Purpose. consistency in providing employees with clear expectations and necessary tools to be successful and achieve desired results in support of Sobeys Purpose. Consistently provides employeeswith clear Beyond providing clear job expectations, Creates self reliant teams possessing clarity around what, how, and expectations and the delegates decision why they do what they tools necessary to be making responsibilities do to achieve Sobeys successful and achieve with clear boundaries, Purpose. Decisions are desired results in support, and expected made within the team at support of Sobeys outputs in support of the level most Purpose. Sobeys Purpose. appropriate to get desired Developing Talent Does not manage employee performance and development. consistency in managing employee performance and development. Consistently manages employee performance and creates development opportunities that drive business Creates development opportunities that leverage employee strengths in support of achieving business results and maximizing application of diverse talents. Role model for identifying and growing top or critical talent tl t through design and execution of detailed development, retention and succession plans.

11 Foster a culture of excellence by enabling employees to deliver results, promote continuous improvement and accelerate change. Executive Competencies Driving Results Fostering Continuous Improvement Leading Change Provide clear expectations for team and individual performance for both business goals and behaviours. Prioritize key areas for improvement with clear objectives and outcomes. Recognize when there is need for improvement and initiate efforts to explore alternative solutions. Behaviours Set challenging goals and high performance standards that contribute to desired outcomes. Review workflow with team members to identify opportunities to streamline and eliminate redundancies. Champion organizational and cultural changes with colleagues and team members. Establish clear performance indicators to track progress towards goals. Encourage employees to take a best practice approach in all that they do. Translate new approaches into concrete action plans and measure success. Ensure that the team is committed to and accountable for excellence in their work. Establish operational benchmarks and reward improvement in Break down cultural barriers by celebrating success and providing inspiration and support to overcome resistance. Give timely and constructive feedback on performance and progress, and recognize and praise strong performance. Follow through on change efforts over time to ensure benefits are sustained.

12 Rating Guidelines for EXECUTE UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Driving Results Does not set and review Performance and Development goals with team members. consistency in setting and reviewing Performance and Development goals with team members to ensure that goals are specific, measureable, and actionable. Consistently sets specific, measureable, and actionable Performance and Development goals, and reviews them and provides ongoing feedback as required to ensure results are achieved. Instills personal accountability and commitment within the team to achieve their challenging Performance and Development goals. Model and active champion for focusing and supporting team development and surpassing expected Fostering Continuous Improvement Does not hold self and the team accountable for review of work processes to identify opportunities for improvement. consistency in holding self and the team accountable for reviewing work processesto identify opportunities for improvement. Consistently holds self and team accountable for reviewing work processes and identifying opportunities for improvement. Encourages continuous improvement, and prioritizes and drives execution of improvement plans in support of organizational priorities. Role model for inspiring team to constantly look for improvements in strategic areas, and rewarding day to day improvements and Leading Does not support the Change team through organizational and cultural changes. consistency in supporting the team through organizational and cultural changes. Consistently leads team through changes by Ensures benefits of Is an inspirational communicating, change are sustained change champion and planning, managing and actively builds advocate for resistance and modeling change capability within organizational change expected behaviours the Business Unit. within the company. and actions.

13 Grow the business by capitalizing on market opportunities, cultivating innovation and maximizing the value of strategic t investments. t Executive Competencies Market Driven Cultivating Innovation Driving Value from Investments Provide inspiration and direction by sharing clearly defined customer and market priorities. Encourage employees to challenge existing practices for the benefit of customers and the business. Determine the action steps and milestones to translate investments into specific outcomes and deliverables within the Business Unit. Behaviours Continually scan the market for opportunities to improve existing products and services. Inspire idea generation with customer research, market insights, cross functional inputs, etc. Ensure that responsibility for outcomes, both business and cultural, l are clear. Offer fresh ideas and/or novel approaches to identify opportunities for growth. Encourage experimentation to test promising ideas and take risks with new approaches. Align accountabilities, resources, processes and systems to ensure measurable and sustainable Aggressively develop new business opportunities to grow the business in line with organizational priorities. Recognize high potential ideas and provide the support and advocacy they need to be developed Lead the harmonization/ integration of new investments with existing systems and processes organizational priorities. developed. processes.

14 Rating Guidelines for DRIVE GROWTH UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Market Driven Does not seek or share market information to create business opportunities. consistency in seeking and sharing market information to create business opportunities. Consistently uses market data and new ideas to create business opportunities. Actively scans the market and offers new ideas to create business opportunities. Shining example of developing new and novel approaches to grow the business and achieve organizational priorities. Cultivating Innovation Does not encourage questions, ideas, or experimentation to better the business. consistency in encouraging questions, ideas, and experimentation to better the business. Consistently encourages questions, ideas, and experimentation to better the business. Inspires cross functional ideas and uses market insights to benefit the business. Advocates and provides support for new ideas that benefit the organization broadly. Driving Value from Investments Does not translate or communicate investments into specific deliverables within the Business Unit. consistency in translating and communicating investments into specific deliverables within the Business Unit. Consistently creates action plans and clear accountabilities to generate results from investments within the Business Unit. Ensures investments are maximized and sustained to drive value for the overall business. Strategizes the harmonization of new investments with existing systems, processes, and business practices to maximize benefits for the organization.

15 Director Competencies & Ratings

16 Develop and promote a shared sense of purpose by implementing strategies and priorities that create value for the customer. t Director Competencies Building a Shared Sense of Purpose Thinking Strategically Customer Orientation Help develop and promote Sobeys sense of purpose and lead the team to serve the overall purpose. Use data and/or partner with stakeholders to identify strategic Department issuesand opportunities. Lead execution of strategies and priorities that support Sobeys differentiated service positioning. Behaviours Inspire others to act in ways that promote and advance Sobeys Purpose. Develop and evaluate options that best advance Sobeys Purpose anddepartment strategy. Review and interpret data to champion initiatives that create added value for the customer. Communicate Sobeys Purpose often, with passion and enthusiasm. Focus and coordinate efforts and resources on the Department priorities with the greatest impact. Create an environment where customer issues or ideas are used to improve service. Be a role model for Sobeys values and cultural aspirations. Set objectives and plans to close current gaps, adjusting priorities as circumstances change. Establish systems, policies and procedures that promote customer service and ensure customer satisfaction.

17 Rating Guidelines for ALIGN UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Building a Shared Sense of Purpose Does not communicate Sobeys sense of purpose in a way that connects and drives understanding in team members. consistency in communicating Sobeys sense of purpose in a way that connects and drives understanding in team members. Consistently and clearly communicates Sobeys sense of purpose in a way that connects and drivesteammembers members to act. Communicates Sobeys sense of purpose with passion and inspires team members to achieve desired Model and active champion for focusing and supporting team development and surpassing expected Thinking Strategically Does not align Department strategy and goals with Sobeys Purpose and priorities. consistency it in aligning i Department strategy and goals with Sobeys priorities. Consistently uses data and leverages business partners to align Department strategy and goals with Sobeys priorities. Leverages data and business partners to focus efforts and resources on Department priorities with the greatest impact. Develops and evaluates options and adjusts priorities as circumstances change, to significantly advance your Department strategy and Sobeys Purpose. Customer Orientation Does not use customer data to develop or execute Department strategies that support Sobeys differentiated service positioning. consistency in using customer data to develop and execute Department strategies that support Sobeys differentiated service positioning. Consistently leverages customer data and feedback to set Department priorities and strategy to support Sobeys differentiated service offerings. Actively seeks customer feedback to set Department priorities and strategy to support and improve upon Sobeys differentiated service offerings. Fosters an environment where customer data and feedback sets Department priorities andstrategy strategy, and advances improvements to systems and policies to promote differentiated service.

18 Build and leverage relationships, trust and people s strengths as a way to engage employees and partners to deliver better Director Competencies Building Relationships and Trust Engaging Employees Developing Talent Show others they are valued by acknowledging their specific strengths, contributions and successes. Delegate tasks and decisionmaking responsibilities with clear boundaries, expectations, support, and follow up. Determine and develop the mix and level of talent required for the team while recognizing the value of a diverse and inclusive workforce. Behaviours Care about others and foster a work environment based on trust and respect. Empower employees by communicating scope, objectives, decision making authority and expected outputs. Create opportunities for employees to achieve their full potential by leveraging gtheir strengths and putting them in appropriate roles. Provide support and Encourage collaboration and encouragement to ensure that Encourage employees to take on partnerships within and across the team members have the tools new challenges that allow them work groups to achieve and confidence to do their job. to learn and grow. Develop strategic partnerships that lead to mutually beneficial business Give work purpose by sharing the context for assignments and connecting responsibilities to Sobeys Purpose. Give timely, specific feedback and instruction on performance and progress. Identify critical talent and work proactively with them to ensure retention and career satisfaction.

19 Rating Guidelines for ENGAGE UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Building Relationships and Trust Does not foster a trusting work environment or relationships that contribute to business consistency in fostering a trusting work environment and relationships that contribute to business Consistently fosters and leverages a trusting work environment and relationships by valuing other s strengths that contribute to business Leverages trusting relationships and influences cross functional collaboration to achieve Develops strategic partnerships that lead to mutually beneficial results across the Business Unit. Engaging Employees Does not provide employeeswith clear expectations and necessary tools to be successful and achieve desired results in support of Sobeys Purpose. consistency in providing employees with clear expectations and necessary tools to be successful and achieve desired results in support of Sobeys Purpose. Consistently provides employeeswith clear Beyond providing clear job expectations, Creates self reliant teams possessing clarity around what, how, and expectations and the delegates decision why they do what they tools necessary to be making responsibilities do to achieve Sobeys successful and achieve with clear boundaries, Purpose. Decisions are desired results in support, and expected made within the team at support of Sobeys outputs in support of the level most Purpose. Sobeys Purpose. appropriate to get desired Developing Talent Does not manage employee performance and development. consistency in managing employee performance and development. Consistently manages employee performance and creates development opportunities that drive business Creates development opportunities that leverage employee strengths in support of achieving business results and maximizing application of diverse talents. Role model for identifying and growing top or critical talent tl t through design and execution of detailed development, retention and succession plans.

20 Foster a culture of excellence by enabling employees to deliver results, promote continuous improvement and accelerate change. Director Competencies Driving Results Fostering Continuous Improvement Leading Change Provide clear expectations for team and individual performance for both business goals and behaviours. Prioritize key areas for improvement with clear objectives and outcomes. Recognize when there is need for improvement and initiate efforts to explore alternative solutions. Behaviours Set challenging goals and high performance standards that contribute to desired outcomes. Review workflow with team members to identify opportunities to streamline and eliminate redundancies. Champion organizational and cultural changes with colleagues and team members. Establish clear performance indicators to track progress towards goals. Encourage employees to take a best practice approach in all that they do. Translate new approaches into concrete action plans and measure success. Ensure that the team is committed to and accountable for excellence in their work. Establish operational benchmarks and reward improvement in Break down cultural barriers by celebrating success and providing inspiration and support to overcome resistance. Give timely and constructive feedback on performance and progress, and recognize and praise strong performance. Follow through on change efforts over time to ensure benefits are sustained.

21 Rating Guidelines for EXECUTE UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Driving Results Does not set and review performance and development goals with team members. consistency in setting and reviewing performance and development goals with team members to ensure that goals are specific, measureable, and actionable. Consistently sets specific, measureable, and actionable performance and development goals, and reviews them and provides ongoing feedback as required to ensure results are achieved. Instills personal accountability and commitment within the team to achieve their challenging performance and development goals. Model and active champion for focusing and supporting team development and surpassing expected Fostering Continuous Improvement Does not hold self and the team accountable for review of work processes to identify opportunities for improvement. consistency in holding self and the team accountable for reviewing work processesto identify opportunities for improvement. Consistently holds self and team accountable for reviewing work processes and identifying opportunities for improvement. Encourages continuous improvement, and prioritizes and drives execution of improvement plans in support of organizational priorities. Role model for inspiring team to constantly look for improvements in strategic areas, and rewarding day to day improvements and Leading Does not support the Change team through organizational and cultural changes. consistency in supporting the team through organizational and cultural changes. Consistently leads team through changes by Ensures benefits of Is an inspirational communicating, change are sustained change champion and planning, managing and actively builds advocate for resistance and modeling change capability within organizational change expected behaviours the Department. within the Business Unit. and actions.

22 Grow the business by capitalizing on market opportunities, cultivating innovation and maximizing the value of strategic t investments. t Director Competencies Market Driven Cultivating Innovation Driving Value from Investments Provide inspiration and direction by sharing clearly defined customer and market priorities. Encourage employees to challenge existing practices for the benefit of customers and the business. Determine the action steps and milestones to translate investments into specific outcomes and deliverables within the Department. Behaviours Continually scan the market for opportunities to improve existing products and services. Inspire idea generation with customer research, market insights, cross functional inputs, etc. Ensure that responsibility for outcomes, both business and cultural, l are clear. Offer fresh ideas and/or novel approaches to identify opportunities for growth. Encourage experimentation to test promising ideas and take risks with new approaches. Align accountabilities, resources, processes and systems to ensure measurable and sustainable Aggressively develop new business opportunities to grow the business in line with organizational priorities. Recognize high potential ideas and provide the support and advocacy they need to be developed Lead the harmonization/ integration of new investments with existing systems and processes organizational priorities. developed. processes.

23 Rating Guidelines for DRIVE GROWTH UNSATISFACTORY IN DEVELOPMENT MEETS PERFORMANCE EXCEEDS EXCEPTIONAL CONTRIBUTION Market Driven Does not seek or share market information to create business opportunities. consistency in seeking and sharing market information to create business opportunities. Consistently uses market data and new ideas to create business opportunities. Actively scans the market and offers new ideas to create business opportunities. Shining example of developing new and novel approaches to grow the business and achieve organizational priorities. Cultivating Innovation Does not encourage questions, ideas, or experimentation to better the business. consistency in encouraging questions, ideas, and experimentation to better the business. Consistently encourages questions, ideas, and experimentation to better the business. Inspires cross functional ideas and uses market insights to benefit the business. Advocates and provides support for new ideas that benefit the organization broadly. Driving Value from Investments Does not translate or communicate investments into specific deliverables within the Department. consistency in translating and communicating investments into specific deliverables within the Department. Consistently creates action plans and clear accountabilities to generate results from investments within the Department. Ensures investments are maximized and sustained to drive value for the Business Unit. Strategizes the harmonization of new investments with existing systems, processes, and business practices to maximize benefits for the Business Unit.

24 Response to Change

25 Engagement Pyramid How the Q12 aligns

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