Mr. Philip E. Sakowitz, Jr. Director, DeCA

1. DeCA Update Mr. Philip E. Sakowitz, Jr. Director, DeCA

2. Where We're Going

3. Topics for Today • Commissary Benefit: past, present, future • Balanced Scorecard • Partnerships • Communication • Initiatives • What’s in the Future

4. Where We've Been

5. Where We Are

6. Where We're Going

7. New Faces in New Places Tom Milks Chief Operating Officer JoAnn Chambers Chief of Staff Mike Dowling Director, DeCA Europe Jim Frost Director, Corporate Communications

8. New Faces in New Places Regional Office Senior Enlisted Advisors SGM Linda Ricker DeCA Europe CMSgt. Larry Fullilove DeCA East MCPO Joe Valdez DeCA West

9. Roles and Responsibilities • Chief Executive Officer • Chief Operating Officer • Chief of Staff

10. DeCA Balanced Scorecard Internal Business/Process Perspective Financial Perspective Facility Condition Index (FCI) Major Construction Project Execution Competitive Sourcing Internal Controls Over Financial Reporting Audited Opinion of Financial Statements Resale Stocks (Sales) Commissary Operations (Costs) Surcharge Obligations Customer Perspective Learning and Growth Perspective Commissary Customer Service Survey American Customer Satisfaction Index Sustain Customer Savings Continuous Process Improvement (CPI) Training Corporate Development – Succession Planning Employees with Degrees in Targeted Pay Bands

11. Balanced Scorecard: Financial Perspective G G G G G G

12. Sales $ 5.962 Billion!

13. Balanced Scorecard: Internal Business/Process Perspective • Internal Controls Over Financial Reporting • − Among top three in DoD for FY 2008 Statement of Assurance • for Internal Controls • Audited Opinion of Financial Statements • − Clean Audit Opinion: 7th straight year • (Anticipating 8th this year)

14. Balanced Scorecard: Customer Perspective • Commissary Customer Satisfaction Index (CCSS) • Patron Satisfaction • 4.67 (out of 5.0) ALL-TIME HIGH! • American Customer Satisfaction Index (ACSI) • National average for commercial grocers: 76 • DeCA’s score: 76 • Sustain Customer Savings • Benefit Value • Target: 30% • Actual: 31.7%

15. Partnerships

16. Exchange/MWR/Services Partnership Your Text here Your Text here

17. Resale Training Partnerships • Exploratory Meeting • DeCA • Army and Air Force Exchange Service • Family and Morale, Welfare and Recreation • Discussion • Current programs • Sharing of training opportunities • Cross-fertilization

18. Health & Wellness Education • Production & Distribution of “How to • Conduct a Commissary Tour” DVD • Distribute DVD to DeCA regions, military and civilian dietitians • Partner with the DoD for health promotion • and promotion of the benefit. • Target dietitians in the War College • Outreach about the benefit and health promotion • The Navy Health Promotion Course • The Air Force Health and Wellness Centers • Kit will be available on www.commissaries.com

19. Partnership - HHS • 2008 Physical Activity Guidelines for Americans • The first comprehensive guidelines on physical activity ever to be • issued by the Federal Government (HHS) • Provides science-based guidance to help Americans aged 6 and older improve their health through appropriate physical activity • DeCA joins many other government organizations in promoting the physical activity set forth in the Guidelines • DeCA has partnered with HHS in a proclamation of a program called "BE ACTIVE YOUR WAY IN MAY“ – President's Challenge, May 1 - July 24 – Proclamation signed May 5

20. Partnership - DoDDS Food for Thought -DeCA partnered with DODDS in Europe to help introduce healthy eating habits to military children. In this photo, students sample different types of milk during a nutritional tour of the Vogelweh, Germany, Commissary.

21. President's Challenge DeCA Walk/Run 2009: Nearly 70 members of Team DeCA walked and jogged May 6 as part of the kick-off to the agency’s participation in the President’s Challenge, “You’re It, Get Fit!”

22. Communication

23. Social Media - Outreach Increased Focus on Commissary Benefit Awareness • Army Wives Talk Radio • Homefront In Focus/Navy Homefront

24. DeCA on Facebook DeCA launches Facebook pages for Agency and Director

25. DeCA on Twitter • DeCA Director on Twitter • http://twitter.com/TheCommissary • Tweets to followers that reinforce key elements of the commissary benefit • Links to major announcements such as worldwide case lot sales, agency initiatives and partnerships

26. Sign of the Times • Industry pays for sign to promote Moffett Field Commissary

27. "Eat Healthy Your Way" • Industry-funded health and wellness publication • 500,000 copies go to 173 commissaries beginning Oct. 1

28. Commissary Commando • Thousands of single service members introduced to • their commissary benefit • Grand prize winner Sheppard AFB had 5,261 airmen • tour commissary during Commissary Awareness Month

29. Army Ten-Miler • DeCA and industry will partner to promote the benefit during Oct. 4 race • Opportunity to reinforce ‘Eat Healthy, Be Active Your Way’ campaign

30. 'Big Top' in the Parking Lot May 2010 −Family Fun and Fitness Festival −5K Run/Walk (DeCA industry partners onboard) −Everyone Wins! Exchanges, DeCA & MWR/Services −The Big Top in the parking lot: DeCA Case Lot Sale; Exchange Sidewalk Sale; Fitness Demos −Theme - Health, Wellness, Fitness, Super Sales/Savings! −Food sampling; music; recreation demos; health and wellness outreach; kids programs

31. Initiatives

32. Construction DeCA Headquarters Groundbreaking: June24, 2008

33. Construction DeCA Headquarters • Final phase • Parking lot scheduled for completion • Sept. 30 • − Construction of new addition now • scheduled for completion Nov. 20 • Next steps • − Relocation of cafeteria to addition • − Installation of IT infrastructure • equipment • − Outfitting with cubicles and furniture

34. Customer Service Training • Contract provides customized world class customer • service training to all DeCA employee • 1st Corporate training program ever • Dale Carnegie Training will provide training • Training dates: Aug 15 – Oct 16, 2009 • Some classes will be bi-lingual as needed • Consistent with our Agency goals of providing great • customer service • Builds on our strength of customer service • Good for the Customers and Good for the Employees • Significant for employees education and training

35. Training With Industry • Working in partnership with Industry • Conduct meaningful dialogue and interchange of best business practices and processes • Synergistic effort builds supply chain alliances and provides vehicle for developing collaborative innovations • Developing Industry Interchange Training Program • Excellence through integration of government/commercial processes to drive new business models • Facilitates integrated multidisciplinary training opportunities across core functional areas with international companies • Key element of our Talent Development Program • 10 Industry Partners; 6–12 month assignments • Notice to the Trade forthcoming 35

36. Strategic Planning Customer Value Business Transformation Performance & Accountability Priorities Leadership & Workforce Development Communication & Awareness

37. What's in the Future?

38. CLASS • A decision process that enables uniform delivery of services provided by all stores within available funds • The process is based on a comprehensive understanding of DeCA’s services, standards, and costs • Helps focus resources that drive the quality, consistency and predictability of programs and services • Is adaptable and agile to support needs and accommodate mission, demographic and geographic considerations Commissary Levels of Authorized Standard Services

39. CLASS • Customers: Why would I shop the Commissary • We got CLASS! • Employees: What can I use to advise me on my performance objectives • We got CLASS! • Leadership: How do we validate a return on investment of the Commissary Benefit • We got CLASS!

40. Transition DoD Budget Scrutiny Together, We Will Meet Every Challenge! The Economy Competition Relevance The Relentless Pursuit of Excellence

41. We Appreciate Your Support Thanks for your Outstanding Support: • Mom’s Day Program • Health & Wellness Programs • Li’l Heroes

42. Federal Government A History of Success Your Text here Polio Vaccine Campaign Marshall Plan Civil Rights, Military Desegregation

43. Federal Government A History of Success Interstate Highway System Man on the Moon Berlin Wall Falls

44. "The Commissary - It's Worth the Trip!"