IS1 Hannaford 2022

DEI Strategies & Proposals May 9, 2022 Integrative Studio 1 Strategic Design & Management

Integrative Studio Team Aleksey Khan

Connie Zou

Heather Yuan

Fang Nan

Nina Vujasinovic

Dildora Atakhodjaeva

Nora Pekker

Matthew Robinson

Ririko Tatsumi

Micah Smith

Professor

Marisa Jahn

Agenda 1. INTRO 2. RESEARCH

P1-5 P 6 - 25

Case Studies Employee Interviews

3. OUR APPROACH

P 26 - 31

4. PROPOSALS

P 32 - 50

01

Intro

1

1. INTRO

Design Challenge How might we define the value of DEI, illuminate opportunities, and explore solutions toward the advancement of Hannaford's efforts in diversity, equity and inclusion?

2

1. INTRO

What is DEI? Diversity is a fact:

Equity is a choice:

Race, Gender, Age, Sexual Identity, Language, Nationality, (Dis)ability and Socio-Economic status are all concrete aspects of dynamic human individuality.

Acknowledging diversity and ensuring fair and equal procedures within the organization is an active and ongoing endeavor.

Inclusion is an action:

Belonging is an outcome:

Creating inclusive and safe environments in the workplace is something that must be intentionally and proactively done.

How will considering all of the above yield increased belonging at Hannaford?

3

1. INTRO

A Note on Equity Equity

Pre-hire

Post-hire

spans the entire life-cycle of an employee and should be seen as an ongoing, iterative consideration

can look like diverse candidate pools, career fairs, & consideration of transferrable skills

can look like balanced pay rates, nuanced development and growth opportunities, mentorship programs, & safe/healthy work environments

4

1. INTRO

Our Design Strategy Provoke learning, discussion, and action around DEI, strengthening the overall experience of Hannaford employees.

5

02

RESEARCH

6

2. RESEARCH

Our proposals are anchored and informed by three primary sources

01

02

03

State of Hannaford

Real World Case Studies

Employee Interviews

Initial Learnings

What we Found

What we heard

7

2. RESEARCH

Our proposals are anchored and informed by three primary sources

01

02

03

State of Hannaford

Real World Case Studies

Employee Interviews

Initial Learnings

What we Found

What we heard

8

2. RESEARCH

State of Hannaford

Internal Lens

Most efforts focus on the corporate Home Office and less on the retail stores DEI is reflected most broadly through BRG's which currently lack explicit and unified structure BRG's tend to center events as a focus There's a concerted effort and desire to bring formality, structure, and measurable goals to the lens of diversity within the organization

9

2. RESEARCH

Our proposals are anchored and informed by three primary sources

01

02

03

State of Hannaford

Real World Case Studies

Employee Interviews

Initial Learnings

What we Found

What we heard

10

2. RESEARCH

How organizations create a landscape of DEI through:

Company Culture & Work Environment

2021 DEI strategy focused on: improving the % of POC in Management employment & accessibility opportunities for those with disabilities in their US stores

Ranked "Best Workplace for Working Parents, Millennials, and Women"

Flexible schedule, 401(k)matches, & a stock purchase plan generous insurance for all full- & part-time workers

flexible time off generous health benefits, retirement plans, stock options, & a form of profit-sharing 20% discounts, competitive salaries for all employees, and annual raises 11

2. RESEARCH

How organizations create a landscape of DEI through:

Societal Impact & Transparency

Albertsons has an economic social impact strategy with a focus on supplier diversity. Over 50% of suppliers are owned and controlled/operated by under-represented groups.

Trader Joe's runs several robust DEI initiatives and partnerships with diverse, community-driven nonprofits.

Blue Apron ranks in top 30% of similar sized companies for diversity. They are a champion of cultural foods, support local food banks and partner with climate-changeresilient food systems.

In 2020, Target released a Workforce Diversity Report highlighting the racial and gender breakdown of its team across all levels of the organization.

12

2. RESEARCH

How organizations create a landscape of DEI through:

Equitable Recruitment & Retention

won Glassdoor’s Employees Choice Awards 8 times.

invests in their associates with training, career development, and furthering their education with tuition reimbursement benefits eligible Publix associates become company owners through its employee stock ownership plan

61% of their retail store employees are women and 23% are people of color The average wage for all store employees (ranging from team member to manager) has risen 21% in 2020 to $16.80 per hour To thank store employees for loyalty during the summer of 2020, Sheetz paid them a reward amounting to an additional $1 per hour from June 5 through September 24, 2020 13

2. RESEARCH

Best in Class Practices:

Supply Chain Equity DEI Programs with direct economic support for MWBE businesses promote the best public response and are the most sustainable and ethical way to invest directly in the communities and strengthen vulnerable food systems that need it the most. Albertson's MWBE supplier program is a well-done example.

14

2. RESEARCH

Best in Class Practices:

Climate Consciousness Consumers want meaningful climate-conscious commitments. Thus commitments to climate change-resilient food systems both do meaningful work as their DEI programming from both climate conscious and food insecurity perspectives. Blue Apron's Climate Conscious program is very successful at acheiving these goals

15

2. RESEARCH

Best in Class Practices:

Local Network Integration Rather than reinventing the wheel by creating new networks, or donating in ways the community doesn’t see or feel, successful DEI models make efforts to integrate with local community networks: get employees involved with long-term community commitments across retail and corporate, up and down management verticals, and publicise these efforts.

16

2. RESEARCH

Fundraising Strategies that rely on customer donations Receipt round-up donation strategies are now viewed by many as a form of corporate tax write-offs

Affinity groups lacking teeth Affinity groups without accountability mechanisms may be viewed as vacuums of emotional labor for retail employees than genuine support and DEI efforts

Pitfalls to Avoid

Performative Efforts that Lack True Corporate Value Ensure that the corporate DEI lens reflected through public marketing moments are also reflected through internal organizational practices and executive sentiment.

17

2. RESEARCH

Today's consumer is more diverse than ever before:

Hannaford has a tremendous opportunity to directly acknowledge diverse employees and retail customers.

US Population in 2018 by generation, % share Greatest or silent Baby boomer

Gen Xer

Millenial

Gen Zer and younger

US Minority Population in 2018 by generation, % share Greatest or silent

8 22

Baby boomer

16

Gen Xer

2 0

Millenial

2 5

20 2 2 2 8

50% of the total US population are Gen Zers and millenials

4

Gen Zer and younger

3 4

60% of the total US minority population are Gen Zers and millennial

Source: Pew Research Center, McKinsey & Company - The diversity imperative in retail, 2021

18

2. RESEARCH

Black and Latino retail workers statistically make lower wages, but Hannaford has the opportunity to actively combat that through their practices

Racial and Gender Disparities in Grocery Retail All

All Sales and Related Occupants

$14.53

First-Line Supervisors of Retail Sales Workers

$17.07

Retail Salespersons

$14.18

Cashiers

$9.96

Asian NonHispanic $12.20

$17.31

$11.54

$9.17

Black NonHispanic $12.20

$17.31

$11.54

$9.17

Latino (Any Race) $12.25

$15.38

$11.71

$9.23

White Non

Asian

Black

Latino

Whit e

Share of Employment

6%

11%

16%

80%

Management, Professional, and Related Occupations

7%

9%

8%

82%

Managemnt

5%

7%

9%

82%

Asian

Black

Latino

Whit e

Share of Retail Employment

5%

11%

16%

80%

Retail Management, Professional, and Related Occupations

9%

7%

9%

81%

Retail Management

5%

6%

8%

88%

$15.53

$17.43

$15.32

$10.06

19

2. RESEARCH

Key Takeaways

From Real World Case Studies & Research

DEI is a nuanced, complex and far reaching consideration.

While frameworks exist, DEI isn't one-size-fits-all.

Custom solutions informed by unique organizational needs are the key to meaningful, measurable results.

Authenticity matters, incorporating DEI into existing organizational values helps influence broader, genuine change within the corporate culture.

20

2. RESEARCH

Our proposals are anchored and informed by three primary sources

01

02

03

State of Hannaford

Real World Case Studies

Employee Interviews

Initial Learnings

What we Found

What we heard

21

2. RESEARCH

A Snapshot on Interviews We conducted 1:1 interviews with Hannaford Employees to gain first-hand perspective on their internal experience as it relates to DEI

Key Topics:

Role and Responsibility Personal lens on DEI What's working at Hannaford?

What could be better?

22

2. RESEARCH

What's Working?

"Hannaford ha s done a great job of understa nding and supporting our employees and customers"

f o b jo t a re g a o d e w "I think t n re fe if d e th ll a g n ti h g highli rt o p p u s y ll a re e w t a th ways the DEI work."

We've made progress around restrictive internal policies, like tattoos and piercings, that make us more inclusive.

23

2. RESEARCH

What could be better?

"Support for these initiatives can sometimes be very reactive, like if you cause enough noise things can change, but sometimes people don't want to speak up."

"[we should]P roactively looking for ga ps and problems and don’t just rely on the staff to surface them."

"I think we could do more for people with disabilities."

"BLM was challenging to support. We work hard to es], handle emotions[of employe me." but that was a challenging ti

"I work in communities that are underprivileged and It has take n us years to stock the type of foo ds that folks were looking for and to get that priced reasonably."

"Considerations vary greatly by district, some areas are more diverse than others and have different customer needs."

24

2. RESEARCH

Key Takeaways From Employee interviews

Unify the internal perception of DEI Structure and amplify the role of BRG's Empower the DEI council to establish & clarify the roles, owners and point people for internal DEI Lean more into proactive ownership of gaps in addition to employee feedback to drive change Create a safe space for employees to voice concerns and opportunities Take all retail stores into consideration since needs vary by store Diversity can also be seen on the shelves (in terms of food that is stocked for the various communities Hannaford serves)

25

03

OUR APPROACH

26

3. APPROACH

Guiding Questions ...exemplify and reinforce DEI in an authentic & meaningful way that is valued by employees?

How might Hannaford...

...use relevant and timely cultural moments to dictate their communications and programming?

...highlight their stance on DEI to their customers through dynamic, consumer-facing activations?

27

3. APPROACH

DEI Pillars

The 3 C's to build & promote a diverse community

Connect

Co-Create

with one another via open communication & dialogue

meaningful & memorable experiences for all members of the Hannaford community (both employees & consumers)

Celebrate everyone's unique background & perspective in a way that is only Hannaford 28

3. APPROACH

The Role of the DEI Council Define

Evaluate

Coordinate

Sponsor

Define Hannaford DEI policies & guidelines

Evaluate DEI performance in Hannaford quantitatively and qualitatively

Coordinate Hannaford's BRG Council, Executives, and employees to foster DEI culture through action

Sponsor initiatives and allocate budget for DEI activities, events, and resources across the organization

29

3. APPROACH

Membership Executive Sponsors + Human Resources: Further legitimizes the efforts of the council. Plans, Opportunities and Goals have a direct line of visibility to leadership.

Tools:

BRG Leads Establishes a benchmark of collaboration and a direct forum for individual needs of the underrepresented groups to be captured and considered

・Hannaford DEI website ・E-mail Newsletters

Staff Volunteers For a broad range of perspectives of associates and managers across the organization

・Promotional Events: Guest speakers ・Cultural events: Potlucks, Musical Guests 30

3. APPROACH

Evaluating Success Metrics that assess areas of improvement should be defined across corporate and retail, contribute to values-driven ROI, and incorporate both qualitative and quantitative learnings.

Example Metrics:

% Retention/Attrition YOY % Diverse Hires YOY % of Diverse Leaders/Managers in Hannaford Quarterly Employee Sentiment Survey with Actionable Items Post-Survey % of BRG Member Engagement

31

04

PROPOSALS Bringing the Pillars to life

32

4. PROPOSALS

DEI Pillars

The 3 C's to build & promote a diverse community

1.Connect

2.Co-Create

with one another via open communication & dialogue

meaningful & memorable experiences for all members of the Hannaford community (both employees & consumers)

3.Celebrate everyone's unique background & perspective in a way that is only Hannaford 33

4. PROPOSALS

DEI Ice-breakers & Conversation Starters to foster employee connection and understanding

34

4. PROPOSALS

Find Someone Who...

Ice-Breakers HOW TO PLAY

U a res sed to taura be nt ch ef

1. Go around the room and find someone for whom the statement is true.

2. Write their name in the box. First one to fill out all 9 boxes wins!

Loves spicy food

First-gen American

Prefers to go Was born by a nickname outside the US

Has overcome disability

Atheist

Bi-cultural

Identifies as biracial

Speaks another language

35

4. PROPOSALS

Conversation Starters Meant to stimulate learning, collaboration, and engagement

36

4. PROPOSALS

DEI Pillars

The 3 C's to build & promote a diverse community

1.Connect

2.Co-Create

with one another via open communication & dialogue

meaningful & memorable experiences for all members of the Hannaford community (both employees & consumers)

3.Celebrate everyone's unique background & perspective in a way that is only Hannaford 37

4. PROPOSALS

Instore Experiences To promote diversity and representation within the Customer Shopping Experience

38

4. PROPOSALS

Staff Picks Product Tag Léo

recom mend s...

Beef W Brussels ellingto n Sprouts Ca

→

and Ba rrots by Aspara Isle 12 gus wit h Holla Sauce ndaise Mixed Isle 13 V Cream egetables wit y Garlic Mash Isle h Mashed 1 Potatoe Isle 3 s.

Dauphin o Isle 5 ise Potatoes.

→

→ →

→

39

Cooking:

In a large pot, bring water to a boil. Stir in the salt until dissolved. Add the pasta to the water, stir a few times to prevent the noodles from sticking together. Cook according to package directions, stirring occasionally, until al dente or softer depending on desired texture.

Fettuccine

Ingredient:

Cocinar: Los componentes que hacen un gran taco son, en primer lugar, la tortilla; en segundo lugar, la proteína o la verdura; lo que sea que lleve, tiene que tener un buen sabor y ácido.

Tacos Veganos

Ingredientes: 40

4. PROPOSALS

Receipt

Hannaford

Employee's Recipe recommendations based on the purchased items QR Code Different cuisine's Stamps Gratitude from Hannaford

・ ・ ・

41

4. PROPOSALS

DEI BADGES Employee's unique expression Spoken Languages Hometown Favorite meal jokes Hobbies

・ ・ ・ ・

Ma ry

Hola !

42

4. PROPOSALS

Hannaford's Recipe Instagram Using graphics in social media and using #Hannafordchef to feature future recipes

43

4. PROPOSALS

DEI Pillars

The 3 C's to build & promote a diverse community

1.Connect

2.Co-Create

with one another via open communication & dialogue

meaningful & memorable experiences for all members of the Hannaford community (both employees & consumers)

3.Celebrate everyone's unique background & perspective in a way that is only Hannaford 44

4. PROPOSALS

Celebration through Community Community-driven solutions and events incorporating DEI strategies.

45

4. PROPOSALS

Celebration Calendar Jan 22

Chinese New Year

event @ 7pm (conference room)

Order mooncakes Tiger

Feb 12 Superbowl

How its celebrated

Feb 14

Mar 8

Valentines

Women's Day

Feb 21

Food?

Mardi Gras

Typical traditions

History

Michelle Regina Sofia Annalisa +3

Mar 21 Navruz

Food & prep

46

4. PROPOSALS

In-Store Celebrations Nachos

Vegetab

ith Salad w e g a b cab

le soup

Happy Diwali

with Pancakesate chocol

rimp Fried sh

47

4. PROPOSALS

DEI Cooking Class 48

DEI Intergenerational Movie Night

49

4. PROPOSALS

Final Conclusions DEI can be uncomfortable but finding comfort in discomfort — and building resiliency — unifies us through our differences.

It is an active & ongoing dialogue that will be dynamic as Hannaford continues to evolve.

50

Thank You! Questions, comments, concerns, angry letters?

Appendix

3. APPROACH

Potential Org Structure DEI Council

Budgets and Analytics

Financial Management & Report

DEI Performance Report

Human Resources

Feedback Loops, Grievances & Psychological Safety

Recruitment & Retention

Employee Resources

Equitable Hiring Practices

Trainings & Workshops

BRGs & Activities

LGBTQ & Gender

Race & Nationality

more

・・・

3. APPROACH

Metrics & Measurement % Retention Attrition YOY

percentage of women

Diversity of Employees

Percentage of Ethnicity

% Diverse Hires YOY

% of Diverse Leaders Managers in Hannaford by positions

in different levels

Employee Satisfaction & Retention

Quarterly Employee Sentiment Survey For Satisfaction % of BRG Member Engagement

Retention Rate

Turnover Rate

Employee Mobility

Weekly Working Hours

Percentage of Trained Employees

by gender

by enthinicity

Models & Vidualization

Improvement (changed rate/number)

Data Analysis Report comparision of data (by week, month, year..)

Wages & Hours

Wages by Departmemts & Levels

Interpretation

Descriptive Analysis

Inferential Analysis

Diagnostic Analysis

Conclusions & Actions

Problems

Solutions & Methods

Goals & Executio n Plans

line chart (show trend)

Predictive Analysis

3. APPROACH

Service Design with DEI Services often take place unnoticed in the background, like the housekeeping service in a hotel. In fact, services like these are intentionally designed to be inconspicuous

HOW KEY PRINCIPLES

・evidencing value that we offer ・controlling customer/employee's expectation ・User-centered ・Co-creative ・Sequencing ・Evidencing ・Holistic

Source: This is service design thinking (2010)

VITAL PARTS

・Actors ・Location ・Props/Objects ・Associates/logistics ・Process

3. APPROACH

Iterative Design Methodology The iterative four steps of exploration, creation, reflection, and implementation are the very basic approach to structure such a complex design process.

Source: This is service design thinking (2010)

3. APPROACH

Transformation in Design

Brand Identity Design

Product Design

Service Design

Eco-system Design

Logo, website, shopping cart, bag, etc

Supply chain, service design

Customer service, interactive storeexperience

Organizational Design DEI and management

3. APPROACH

Service evidencing blue print

Source: What Is a Service Blueprint?: Designing a Seamless Service Process

https://www.lucidchart.com/blog/what-is-a-service-blueprint

*Example

4. PROPOSALS

W W or

W

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e v o l u o y o d t a h r u W o y t u o b a t s o m work? e u q o l s e é u ¿Q e d a t s u g e t más ? o j a b tu tra

e c a l p k

d e p l e h s a h Who t s o m e h t u yo ? g n i k r o w e e c a whil pl rk o W

a h e t n é i u ¿Q n e s á m o d a ayud bajo? tu tra

e c a l ork p

a t u o b a s u l Tel u o y e m i t t l u . diffic . k r o w t a had

a n u s o n a t n Cué a h e u q d a t l dificu o en su tenid . . . o j a trab

Design Guideline

Design language & Principle

Hannaford Studio class

Design language & principle *This is only for "the presentation-use" which does not mean the whole branding.

Typography

Colors

Imagery

Graphic

Design language & Principle

Integrative Studio

Typography

Aa

Aa

Hannaford DEI

This presentation should follow the color palette below:

Font: Alfa Slab One Line spacing: 1.4-1.5 Letter spacing: 0

Size: 23-40 Font: Now Line spacing: 1.4 Letter spacing: 0

Headline : 60-80 Sub Heading: 40-45

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged.

Design language & Principle

Integrative Studio

Colors

Hannaford DEI

This presentation should follow the color palette below:

Permanent color

Secondary color

Permanent color

- Mainly use for Headline, bg, title, and any significant points.

- Headline, graphic, images

-body copy

#CE4134

Headline

#E3B43D

Sub Heading #9FCD8E

#0E0D0D Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Design language & Principle

Imagery (In-store)

Integrative Studio

Hannaford DEI

Balanced, Not looking at camera, naturally, truthfully, in sharp focus.

Avoid too blur and dark unclear/unnecessarily close

Design language & Principle

Imagery (Cuisine)

Integrative Studio

Hannaford DEI

Curious, focus in sharp, diverse types of dishes, sizzling, and clean Avoid too flat and Faded unclear/unnecessarily close

Design language & Principle

Imagery (Culture)

Integrative Studio

Hannaford DEI

Colorful, empowerment, clean background, energetic avoid clichés, metaphors

Design language & Principle

Graphic elements Visual

Integrative Studio

Hannaford DEI

Includes some visual and abstract graphic icons Abstract