Danny B. GantManaging DirectorCustomer Services

The FedEx Approach To A Fully Customer-Centric Culture

Over 40 years ago, FedEx was built around a single focus…

The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take care of our people; they in turn will deliver impeccable service demanded by our customers, who

will reward us with the profitability necessary to secure our future. –Frederick W Smith

2P-S-P

the company has evolved over time…

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• More than 300,000 team members worldwide

• Handle more than 10 million shipments per day for express, ground, freight and expedited delivery services

• Serve more than 220 countries and territories, including every address in the United States

• fedex.comSupport over 32 million unique visitors monthly; more than 6.5 million package tracking requests daily and more than 20 million labels generated via FedEx Ship Manager monthly

• Annual Revenue – Approximately $46 Billion

T

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• 649 aircraft; 375 airports served worldwide

• More than 100,000 motorized vehicles for express, ground, freight and expedited delivery service

Dropoff Locations

• 690 FedEx World Service Centers

• 1,750 FedEx Office locations

• 6,300 FedEx Authorized ShipCenters® and Alliance Partners

• 37,000 FedEx Drop Boxes

Operating Facilities

• Express: 1,200 stations; 10 air express hubs

• Ground: 33 ground hubs; over 500 pickup/delivery terminals

• Freight: Approximately 370 service centers

• Office: More than 1,800 locations5

The FedEx Brand

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Customer Loyalty is Core to Our SuccessThe Customer is at the heart of everything we do!

Customer LoyaltyWilling to recommend to others

Intend to continue to useHighly satisfied

Sustainable GrowthLower Customer Acquisition Costs

Business Growth

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Worldwide FedEx Team Members Deliver the “Purple Promise” Daily to Strengthen Customer Loyalty

The Purple Promise: “I will make every FedEx experience outstanding”

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Quality Driven Management (QDM) Drives Delivery of the Purple Promise

People, Service, Profit

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“QDM will give us common ways to improve Quality across our entire enterprise. For the first time, we will all use the same language, tools, and metrics to analyze the causes of problems and plan corrective actions. QDM is the way FedEx will manage our business to drive Quality and brand loyalty to new heights.”

Fred SmithChairman, President and CEOFedEx Corporation

Institutionalizing QDM Principles within our culture is critical to a holistic adoption

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Customers Define Quality

Be Scientific Measure, Measure,

MeasureOptimize Business

Performance Quality Involves

Teamwork View Failures as Opportunities

Strive to understand customer requirements and expectations:

• Who are our customers?• Are they satisfied with the services we provide?

• What areas do they want us to improve?

Base decisions on facts and data, not guesses or opinions:

• Have we gathered an adequate fact base?

• Do we understand the root cause of the problem?

• Will our solution address the root cause?

Measure failures, measure variation:

• Do we have measurements in place?

• Do we monitor measurements to identify continuous improvement opportunities?

• Does the measurement tie to strategic objectives?

Minimize unnecessary effort, time, and cost:

• Do we recognize value-added vs. wasteful activities?

• Do we apply QDM/Waste Reduction Workshop (WRW) tools to proactively minimize waste?

See work as a collaborative process:

• Have we engaged all our key stakeholders?

• Have we built common understanding of our key objectives, deliverables, timeline, etc.?

Seek the truth and end the blame game:

• Do we appreciate those who identified the failures

• Do we understand root causes of the failures and do we gather learning to confirm our hypotheses?

• Do we develop action plans?

• Do we share learning?

What a culture values guides decision-making on a day-to-day basis

QDM Principles are designed to drive desired organization behaviorsBehaviors demonstrate what a culture values

10QDM: The Way We Work At FedEx

Quality Action Teams (QAT) use the ABLE Quality Improvement Process

Assess opportunities to improve the customer experience or

business performance

Build understanding of the Quality issue, build a solution for addressing its root cause, and build the business case

Launch the solution successfully through careful planning and control

Evaluate the implementation to confirm itsreal-world success

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• FedEx OneCall

• Customer Advocate Team

• Executive Services

• Social Media

• Couriers/Sales/Technicians

• 1-800-Go-FedEx

• Moments of Truth/Focus Sessions

Connecting with the Customer“Customer Service is not a Department”

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• REACH Program-–Reps Engaged And Connected At Home

• Employee Surveys–Leadership, Culture, Service

• Pay and Benefits/Tuition Reimbursement–Competitive, Attract and Retain!

• Recognition Programs–Bonus Programs-All Levels!

–Bravo Zulu

–PP Award

• Celebrations!–Births, Graduations, Weddings, Service Awards

Connecting with the Employee

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Community Support

Humanitarian Awards

Living P-S-P

I contribute to a positive FedEx Spirit

I act accountably to support our Living PSP Culture

I am a vital link in the chain of success

I am committed to personal growth15

2013 “Top 10 Most Admired Companies,”

FORTUNEMagazine

2013 “Top 15 (#12) Most

Reputable U.S. Companies,”

Forbes

2013 “100 Best Companies to

Work For in America,”FORTUNEMagazine

2013 “Top 100 Best Corporate Citizens,” Corporate

Responsibility Magazine

SELECTED AWARDS AND RECOGNITIONS

2012 “Top 10 Best Multinational

Workplaces – FedEx Express,”

Great Place to Work Institute

#8 World’s Most Admired Companies

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“I will make every FedEx experience outstanding”

“Keeping the Promise”

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Take Aways

Culture Matters- People

Customers and Employees deserve an outstanding experience- Service

Happy People and Good Service = Profit

Over 40 years ago, FedEx was built around a single focus…

The core philosophy that governs every activity at FedEx is People-Service-Profit (PSP): Take care of our people; they in turn will deliver impeccable service demanded by our customers, who

will reward us with the profitability necessary to secure our future. –Frederick W Smith

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It still works!

Questions?

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