(c) 2015 RueLaLa. All Rights Reserved.

Peace, Love and Engagement Roadshow

GREAT BEING

HERE WITH ALL OF YOU!

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WHAT WE WILL COVER

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Update 2015 People Goals/Introduce a New Philosophy

Link our Goals with Whys: Rue’s and Yours

Why the Why is so Important?

How (at a high level) We are Going to Reach our Goals

A Taste of a How in Action

What (the sheesh) does People do?

We Believe/The Choice is Yours

PEOPLE LIFECYCLE

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Competency Model/Career

Mapping/Promotion Process

Rue U

Health & Wellness

Mentorship

Grow

Spirit

Recognition

Service

Internal Communications

Compensation

Culture

Engage

Partner with departments

Acquire/Onboard

Partner with departments

Develop sourcing

strategies/build pipelines

Define and adhere to processes

Engage from signature

Benefits

Support

Compliance

HRIS (Software)

Payroll

Next Step Program

Retire

Exit Interviews

Alumni

Boomerang

NETFLIX STOCK PRICE

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When culture deck was rolled out

Strategic blunder

MAKE RUE A GREAT PLACE TO WORK

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I WANT RUE TO BE THE MOST MEMORABLE PROFESSIONAL EXPERIENCE OF YOUR LIFE!

Looking back––20 (?) years from now–– I want you all to be able to say, with pride,

“I was there when...”

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TO  DO  THIS  WE  MUST  ALL  BE  ENGAGED  

Engaged

Disengaged

Actively disengaged

13%

63%

24%

Gallup: 2013 State of Global Engagement Survey

Engagement is a choice!

My goal: to get us all in this delicious piece of the pie

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‘Cause we have FREAKISHLY humungous opportunities ahead of

us… To grow the business…

To improve ourselves…

And to impact the world…

The Big world à Your world

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ENGAGEMENT IN BROAD TERMS

STARTS WITH THE WHY

MEMBERS: WHY SHOULD I SHOP AT RUE?

BRANDS/PARTNERS: WHY SHOULD I GIVE RUE MY BRAND?

CANDIDATES: WHY SHOULD I JOIN RUE?

YOU: WHY SHOULD I GIVE RUE MY “DISCRETIONARY ENERGY” / THE TIME OF MY LIFE?

Without knowing what your personal Why is

(and we will get to that eventually) I’ll bet you all want to leave the world better than you found it.

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THE PEOPLE WHO RUN OUR BRANDS

All want the same thing.

CANDIDATES

OUR MEMBERS

Guess what?

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TO IMPROVE THE HUMAN CONDITION

“Confidence is that feeling by which the mind embarks

in great and honorable courses with a sure hope and trust in itself.”

– Cicero

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WHAT ARE WE REALLY DOING ALL DAY LONG?

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WE INSPIRE CONFIDENCE.

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WE INSPIRE CONFIDENCE.

By the brands we sell…

In our Members to achieve more…

As as calling to action for candidates…

And to grow yourselves beyond your expectations…

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I WANT YOU TO HAVE THE

CONFIDENCE TO REALIZE YOUR

DREAMS.

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“THOSE WITH A WHY CAN SURVIVE ALMOST ANY HOW.”

Viktor Frankl Psychiatrist, Holocaust Survivor

Why is this purpose thing so important?

From experience, realizing goals–Rue’s, your team’s, your own––is dramatically easier if you have a purpose behind you…

especially if it aligns with your personal Why!

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Improving the Human

Condition

Yours

We Inspire Confidence

Rue’s ?

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CONFIDENCE, ESPECIALLY THE CONFIDENCE

TO LIVE LIFE ON YOUR TERMS

CAN MOVE WORLDS.

(anyone know how many slightly engaged people signed the Declaration of Independence?)

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Ok, enough of the Why stuff for now… Let’s move to the How!

Confidence begets happiness

à we want you happy!

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(BTW, are you digging this groove?)

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1. Values

Our How starts with our Values which have a cascading effect

2. Expectations

3. Behaviors

4. Results

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Values

Define our cultural parameters.

Used from hiring to promotion.

Reflect who we are, how we want to be treated, and what we hold most dear to us.

Values frame expectations.

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Expectations At the highest level, we expect you to be actively

ENGAGED––in work, and life.

If you aren’t, we will try to help you find something else to do, within or outside of Rue…

(If you ever feel Rue is not the street for you, let us know!)

Expectations drive behaviors.

Its all life.

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Behaviors How can you tell if someone is engaged?

And they realize we are all in this thing together!

Behaviors bring about results.

They apply their fullest selves to whatever they are doing.

No complaints or sniping; simply work to improve.

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Results

What sort of results do we (really) want?

We want you happy. Fulfilled. Jazzed to be part of something that is improving worlds.

We hope Rue will be the most memorable professional experience of your life!

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We’d like try to give you skills, tools, and confidence you need to kick ass at work…

and in life.

It’s all life.

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I have noticed…

“If you trust us, why do we need all these policies?”

Cultures built on policy have a hard time engendering trust.

(Mind you, Rue is ahead of the curve here already.)

What if we use our Values as a first screen when making people-related decisions?

Kind: Have you put yourself in the other’s shoes? Have you put their needs ahead of your own?

Passionate: What does your gut say is the right thing to do?

Collaborative: Have I included all critical people? How can this effort be a win/win?

Tenacious: Have you given this effort your engaged focus? Have you exhausted all tools, processes, and points of view?

Decisive: Are you kicking something down the Rue or attacking it head on?

Innovative: Can you push new bounds? Can this effort position us as leaders in whatever role you are playing?

Example of Potential Values Screens

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“But wait,” you may say. “This means I may have to make a decision.”

Exactly!

We trust you can make a very good effort to figure things out. We are giving you the power.

And if the answer is still elusive, involve others, escalate, ping the People Team, Legal, and/or consult the Handbook (but only as needed*).

* Note: be aware there can be legal implications of some actions. If anything requires signature or If there is ever a question, please reach out to legal@ruelala.com.

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Why is this so important?

In order for Rue to meet its (freakin’ huge) potentials, we must equip you all to make

decisions, take risks, accept that failure is part of growth,

and continually improve…

…versus constantly reacting in the weeds.

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It is all about how we spend

the time of our lives.

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A first application of our Values (and there will be more coming)

Performance Reviews

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Facts are:

“Traditional” (yearly, graded) performance review processes have no positive impact on company performance.

The only visceral impact they have is that voluntary attrition ––the employees companies want to keep as they can find

jobs on the market––increases post-delivery.

(And I want ALL of our Associates to be people others crave to have.)

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We should focus our energy competing with the market,

not each other.

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As of NOW, we are making the traditional performance review model obsolete.

If we are all engaged (top 15%?), why the need?

What is not changing? Goals––business and growth––and feedback.

What is changing? No more emotional baggage of grading.

Purpose, format, frequency and tools.

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In their place, starting Q1 2016, we will be initiating the “Growth First” Program.

Managers will be given additional training and tools.

4X/year, they and teams will be briefly surveyed with the underlying concept of:

If no or maybe, the question becomes what can we try to do to help you?

“If this Associate told me they were considering leaving, would I fight hard to keep them?”

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I fully realize there are MANY questions that will start gnawing at your beautiful brains as this

change sinks in…

1. Don’t Panic

2. Details will be coming soon

We believe in 10 things… 1. In inspiring confidence in our 15 million members to achieve more

2. In inspiring confidence in you to realize your dreams

3. That our business is changing both retail and societal paradigms

5. That trying to living our values could increased personal and corporate growth

6. We don’t know what we don’t know…and this is a source of strength

8. We should compete with the market, not each other

7. Multiple failures and continual iteration are the ingredients for success

9. Its all life

4. That being engaged is the key to the happiness of productivity

10. We hope Rue will be the most memorable professional experience of your life

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In closing…

You may have some reservations… (Understood completely)

You may not… (Coolio!)

The choice to be engaged is yours to make!

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You have the power.

Thank you for the gift of your time!