Newsletter Q1_Digital

HEADLINES
The Stanley Black & Decker Quarterly Newsletter l Quarter No. 1 2016
Stanley Black & Decker Announces
Hart Award Winners

STANLEY Names Build Your America Contest Winners / Pg. 7
HEADLINES Q1, 2016
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The William Hart Award / Pg. 3
Global Employee Survey Results / Pg. 4
Updated Travel & Expense Policies / Pg. 5-6
Fourth Quarter & Full Year 2015 Earnings Results / Pg. 7
STANLEY Build Your America / Pg. 7-9
The ECOSMART Office / Pg. 10
An SFS 2.0 Update with Greg Waybright / Pg. 11-12
Top eCentral Stories of 2015 / Pg. 13-14

Stanley Black & Decker
Announces the Inaugural
William Hart Award Winner!
Congratulations to our first-ever winner of the
William Hart Award for Community Involvement:
Theresa Valentine, Director of Global Payroll
Shared Services. Theresa has earned $25,000 for
the charitable organization of her choice – the Sunrise
Foundation for Women.
Theresa is a tireless advocate for women who have
been in abusive relationships. In 2014, Theresa started
the Sunrise Foundation for Women, a non-profit
organization that provides individual grants to women
demonstrating that they have left, or are leaving
an abusive relationship. In addition, Theresa’s book
“Sunrise,” inspired by true events, donates all revenues
back into the Foundation.
“We believe there are many women who live in fear
and embarrassment associated with being in a domestically
abusive relationship without the courage,
strength, emotional, and financial support to make
a change,” says Theresa. “We want to help those
women take the first step to live the life they deserve.”
If you’d like to learn more about this organization,
please visit www.sunrisefoundationforwomen.com.
Theresa Valentine
Director of Global Payroll
Shared Services
Congratulations to our runners-up:
1. Ashok Shinde, EHS Lead, GEM, India
Ashok has run the Aadhar Education Society for
five years. This organization promotes the value
of education through donation of scholarships,
school uniforms, books, computers, and projectors
to needy students. Ashok has organized
multiple education and environmental outreach
programs, serves as a volunteer auditor to a Human
Rights Association, and is a founding member
of the Swami Vivekananda Social Foundation.
2. Peter Hilhorst, Commercial Service
Employee, STANLEY Security, Netherlands
For more than 30 years, Peter has been a volunteer
for disaster recovery relief with the Red
Cross. In his off time, he works more than 40
hours per week to assist the refugee aid program.
He provides these individuals with clothes,
food, and shelter when they first arrive to Holland.
He also volunteers regularly with the Salvation
Army and food bank.
3. Yingfa Chen, Commodity Program
Manager, GTS, Towson, Maryland
Yingfa has been a volunteer with Tzu Chi Foundation
of Washington DC since 1999, and he
now serves as the Regional Executive Director.
The foundation supports six different charitable
initiatives including disaster recovery, healthcare,
and education efforts. For 12 years, he
has served breakfast at homeless shelters every
Saturday morning, visited nursing homes on a
monthly basis, and has traveled to aid in three
major disaster recovery efforts.
Our nomination period will open again soon and we
hope to learn more about the progress that our employees
have made over the year. For more information,
visit eCentral > Resources > Community.
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As you know, we conducted an employee survey in
March of last year. After careful analysis of the data,
we found that while our results were largely positive
(90% of our responses were highly favorable
or favorable) and our trends were stable (10/14
categories either improved or remained constant),
there is still plenty of room for improvement across
the company.
In that spirit, we have conducted employee focus
groups in almost all of our locations. HR teams
across the company are asking for your input and
feedback as we get to the heart of both our opportunities
and our best practices. We thank you
for taking the time to provide your thorough,
thoughtful and candid in responses.
It is important to see the
survey as a starting point,
and not an end result in itself.
We have developed and are implementing action
plans in every business and location. Our goal is to
focus on key areas that we’ve identified for improvement
in each specific business.
It is important to see the survey as a starting point,
and not an end result in itself. The true significance
of this survey will be in the action items and follow
up plans that we as an organization put into place
to ensure that we are improving upon the baseline
outlined in this year’s results.
TOTAL RESULTS BY CATEGORY
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In 2015, we had a lot of success in reducing our T&E
spend.
However, there’s room to improve and your diligence
with respect to T&E expenses is required as our challenging
operating environment with continued FX
pressures and volatility persists.
All policies and procedures put into place last year
remain in effect for 2016.
Travel Freeze
We have implemented a non-customer-related
travel ban, and we are asking that employees avoid
non-critical travel through use of alternatives such
as TelePresence and Live or Lync Meetings.
Approval Process
In accordance with the travel freeze, all travel
requires the approval from the following approvers
based on the organization requesting:
• Global IT - Rhonda Gass
• Global Supply Management - Mike Prado
• GTS - Lee McChesney
• Global Audit & Compliance - Joseph Radziewicz
• All Other - Don Allan or Joe Voelker
Per Diem Policy
Our per diem reimbursement policy has been
changed to actual and reasonable expenses not to
exceed $55 / €55 per day, per person (from $75);
this pertains to all three meals, including alcohol.
Itemized receipts are required for reimbursement
of meals over $25 and in accordance with the policy.
Global Shared Services Compliance Team
Our newly dedicated Global Shared Services Compliance
Team will primarily be responsible for
performing pre- and post- audits on Travel and
P-Card related spending. The team will focus on
policy compliance and reporting including - but
not limited to - areas such as the Per Diem Meal
Allowance, expense type validation, and mileage.
Each week, audit exception reports will be
generated based on previous week’s posted
T&E data. The team will review exceptions to
examine violations and identify / track root
causes. All exceptions will roll up to a Monthly
Exception & Trending Report by business unit.
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FULL YEAR 2015 T&E SUMMARY
Total Company T&E Performance
-$5.2M VPY
0.71%
2015 T&E Sales
0.74%
2014 T&E Sales
Advanced Booking
Air Bookings
64%
December YTD
52%
2014 YTD Avg.
+0.5M (3%)
VPY
-$32 (8%)
YTD
Domestic
Airfare
-$103 (12%)
VPY
International
Airfare
Hotel Bookings
Meals Spend
+$0.2M (2%)
VPY
+$2.1M
(18%)
VPY
+15%
Non-compliance
-$2.2M
YTD
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We had a strong performance in 2015, in an
exceptionally tough year. We were challenged by
nearly $220 million in currency headwinds, volatility
in the emerging markets, and much more, yet
we as a company pulled together and delivered
record earnings, demonstrated continued profitable
growth, and exceeded our EPS commitments for the
ninth consecutive quarter.
SFS 2.0 and its five pillars—Core SFS, Commercial
Excellence, Digital Excellence, Breakthrough Innovation
and Functional Transformation—is designed
specifically to enable the type of performance that
we proved we can deliver this year: strong organic
growth with solid operating leverage. With SFS 2.0,
we are positioning for growth and differentiated
outperformance well into the future, augmenting
the strengths that make our Company great.
Thank you for your contributions to a great 2015,
and thank you for your commitment to ensuring
that our brightest days remain ahead of us.
Last year, STANLEY announced their second annual
Build Your America Campaign, a contest to award
up to $10,000 in home improvement or repair projects
to five winning veterans. In partnership with
House of Heroes, a nonprofit organization that will
complete the projects, this campaign demonstrates
the company’s dedication to community service and
making a difference through veteran support.
Five grand prize winners have been chosen to receive
home repairs valued up to $10,000. STANLEY
and House of Heroes will help perform repairs to the
homes of each contest winner.
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THE WINNING HEROES
James P. of Carmi, IL
James served in the United States Army during the Vietnam War.
While serving in the 71st Aviation Company in South Vietnam, his
helicopter was struck by hostile gunfire and crashed into a rice field.
James was taken as a prisoner of war. After spending 1,887 days in
captivity he was released in March of 1973. Despite his capture,
James stayed in the Army and served his country until he retired in
1986. As a retired war veteran, James committed his time to helping
other veterans find employment and assists them with obtaining
benefits. In recognition of his service, James was nominated to receive
plumbing repairs and other miscellaneous home repairs.
Zeak W. of El Paso, TX
Zeak served in the United States Army for 20 years and has a reputation
in his community for selflessness. After retiring from the military,
he gave up his secondary career to move back to his hometown to
care for his elderly grandmother. He managed her medical appointments
and all aspects of her care until her passing - all while dealing
with his own injuries he sustained during his military service. Zeak is
very active in his local church and frequently hosts church gatherings
in his home. Zeak was nominated to receive help with a well-deserved
landscaping project at his house.
Timothy S. of Bogalusa, LA
Timothy served as a dedicated police officer for 21 years until 2013
when he had to retire early due to an injury sustained in the line of
duty. Timothy now walks with the aid of a cane and may soon
become dependent on a wheelchair. Despite his disability, Timothy
remains an active member of his community. Most recently, he helped
give Christmas gifts to children in a local group home. Timothy was
nominated to receive wheelchair ramps for the front and back doors
of his home.
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Philip L. of Columbus, OH
Philip is a Korean War Era veteran. Although his years in as an active
duty member of the military are behind him, Philip still serves his
country by supporting veterans and active duty service members.
Philip provides comfort and transportation to homeless, disabled and
medically fragile service men and women by bringing them to medical
and personal appointments. Philip was nominated to receive repairs
to the roof, bathroom, rainspout gutters and driveway of his home.
Tarah S. of Lillington, NC
Tarah is a United States Army Veteran who served for over six years.
During her time with the Army, she served tours in both Iraq and
Afghanistan. Today, Tarah is a dedicated wife and mother of one. In
recognition for her service, Tarah was nominated to receive plumbing
repairs at her family home.
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ECOSMART TM is our commitment to embedding
sustainable thinking into everything that we do.
We’re taking this beyond our manufacturing
and distribution facilities and into the office. The
ECOSMART TM Office focuses on the efforts that we
can each make in our own locations. We all have
a part to play in keeping our environment sustainable.
In our offices we can make a huge difference.
Let’s start with three easy changes:
1. Go paperless.
Did you know that it takes 24 trees to produce
1 ton of paper? And that 1 ton of
paper produces 6.3 tons of CO2 emissions?
Or that 2.6 gallons of water are used for
every sheet of paper? Think before you print.
2. If you must print, go black and white.
Each year, over 375 million empty ink and
toner cartridges are thrown away, most
ending up in landfills. If you put 375 million
cartridges end-to-end, they would circle the
earth over three times. What a waste!
3. Reuse your coffee mug.
8 out of 10 people think that they can
put coffee cups in the recycle bins. FYI –
you can’t. 50 billion paper cups end up in
landfills each year because they can’t be
recycled. By using your own coffee mug,
you can reduce 1.25lbs of C02 emissions
each week.
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First, can you remind us all what SFS 2.0 is?
Sure, SFS 2.0 is a company-wide transformation
initiative to build a culture of organic growth
and also drive expanded margins within Stanley
Black & Decker. SFS 2.0 incorporates five key
pillars: Core SFS, Functional Transformation,
Breakthrough Innovation, Digital Excellence, and
Commercial Excellence. As you can see from
our 2015 results, we are already making some
big steps in the right direction. SFS 2.0 will also
modernize and improve many of our systems and
processes, to make us more efficient and to put
us in a position to scale up to a company twice
our size.
OK, so on the organic growth front, how will
SFS 2.0 change what we are already doing?
I’d say the important thing to note is that it’s going
to augment what we are already doing and doing
well in many of our businesses. There is some
tremendous work being done on the ground level
with our customers to drive growth, and what
SFS 2.0 is going to do is add new tools and weapons
for our commercial teams to magnify their
efforts. This will be done primarily through our
Commercial Excellence and our Digital Excellence
initiatives.
What about this sense of transforming or modernizing
our processes and systems?
Well, it’s no secret to any of us that we manage
a lot of things through brute force and we don’t
leverage today’s technology to the fullest. So here
is where Digital Excellence overlaps with something
like Functional Transformation, improving
processes and putting in systems that accelerate
the way we work and give us accurate and more
timely data. Of course, however, this doesn’t happen
without really thinking about what you’re
doing and how you are doing it.
Can you give us a sense of the progress we’ve
made with SFS 2.0 since its launch?
Yes, it’s been pretty significant actually, particularly
our Commercial Excellence efforts as evidenced
by our above-market organic growth in
2015. Not all of our progress is front page news
right now. Some of that is because of confidentiality
reasons—our Breakthrough Innovation and
our Digital Excellence teams are both working
on some groundbreaking new products that we
don’t want to leak to the market just yet.
What can we expect in 2016?
The teams are moving full steam ahead. You’ve
certainly read about some of our recent wins
and you can expect to see many more over the
coming months. A lot of the real heavy lifting will
take place over the next several quarters, and we
will be asking all employees to do their part to
transform Stanley Black & Decker for the future
- positioning us to be an even stronger Industrial
company.
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At the heart of our transformation is continued and relentless focus on advancing the Stanley Fulfillment
System, which is making tremendous strides across the company. One strong example is the Engineered
Fastening business, which is embedding SFS throughout its operations with demonstrable results in facilities
such as the Warrington, UK, plant and the Marietta, Georgia, facility where Operational Lean and
Complexity Reduction initiatives are driving significant value.
The team has made significant progress establishing a detailed fact-base and examining our functional processes
in preparation for the process redesign phase of this transformation initiative. That redesign phase
begins in earnest this month, and will continue throughout the end of the year. Remember, the goal of this
transformation is to focus only on value-added functional activity and reduce, eliminate, or dramatically
improve the way work gets done in our offices.
Perhaps the single most exciting component of our transformation is the results we’ve seen in a very short
period of time from our Breakthrough Innovation teams. Not only does our GTS team have groundbreaking
products on the horizon for 2016, but our Oil & Gas and Hydraulics teams have wholeheartedly embraced
the “Special Forces” concept and expanded it to their businesses, with significant expected benefits.
In Atlanta, Georgia, we are building a new Digital Accelerator team, which is already impacting the way
we think about technology in this organization. The team is focused on everything from search engine
optimization to social media presence to RFID platforms for many of our services. On top of that, this team
has created a breakthrough new digital product that has been piloted toward the end of 2015 and has the
potential to change the landscape of the tools market where we compete.
The Commercial Excellence team has identified nearly three hundred opportunities that have the potential
to create tremendous value over the course of the next three years. These were identified through interviews
with more than 100 sales and business leaders and 12 workshops focused on shifting our sales and
marketing capabilities so that we continue to improve the way we serve our customers.
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TOP 10 ECENTRAL STORIES OF 2015
1
A Message from John Lundgren & Jim Loree.
Our Construction & DIY (CDIY) and Industrial & Automotive Repair (IAR) business units combined to
create a $7B+ Global Tools & Storage (GTS) business. This strategic move was done to become the
world's largest branded tool company and the only player with (1) major positions in each of power
tools, hand tools, accessories and storage and (2) significant global channel presence in all four
major markets: construction, DIY, industrial and auto repair.
2
Results of the 2015 Global Employee Opinion Survey Announced.
John Lundgren provided a brief synopsis of our employee opinion survey. The high level of favorability
of our questions as well as the consistency that we've seen year-over-year are both encouraging
factors, although our results pointed to room for improvement as well.
3
A Message from Joe Voelker, SVP of HR, Regarding
our Organization & People Review Results.
Our people are our most valuable asset, and we use the global OPR process to ensure that our
people are aligned with our most critical strategic growth initiatives. This announcement shared key
trends that came from our OPR process in 2015. Click here for the full story.
4
The Time is Now… SFS 2.0 is Here!
We officially launched SFS 2.0, our Blueprint for Growth. This initiative has the potential to double
the company's size and triple the company's value over the coming years. We will do this by
continuing the company's transformation and adapting the way we operate to ensure that we
outperform our competition in the decades to come.
5
An SFS 2.0 Update from Jim Loree.
This month, Jim Loree provided an update and progress-to-date on our five initiatives: Core SFS,
Digital Excellence, Commercial Excellence, Breakthrough Innovation, and Functional Transformation.
These efforts have lead to a successful 2015.
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6
Introducing the William Hart Award for Community Involvement!
We launched an inaugural William Hart Citizenship Award, named after our Company’s 2nd
President who exemplified the ideal balance of commitment to his family, his work, and his community.
One winner and three runners-up were awarded with a donation to the charity of their choice
based on their commitment to the community.
7
A Video Interview with Steve Brodrick, Vice President
of Financial Planning & Analysis.
Throughout the year, we were able to improve operating margins and operating leverage in the
face of significant currency headwinds. In this video, Steve explains what these FX pressures actually
are and what we, as a Company, can do to overcome them.
8
EMPLOYEE SURVEY FOLLOW UP: Tying eCentral
Communications to Company Strategy.
Stanley Black & Decker issues global communications to all employees every day, usually several
times a day. Our communications align with important goals and objectives for the company. We
are taking steps to make that connection more obvious and straightforward. Remember, we rely on
you to not only be Stanley Black & Decker experts, but also our advocates and ambassadors.
9
Stanley Black & Decker Issues New Company Brochure.
For the first time ever, thanks to a coordinated effort by business leaders across the company, we
have put together a company-wide brochure highlighting all of our brands in action. This brochure
marks the first comprehensive look at the power of Stanley Black & Decker.
10
The Drawing Board” – The Next Big Thing in SFS 2.0
Breakthrough Innovation is Here!
As we further embed a culture of breakthrough innovation, we launched an online innovation
collaboration portal, dubbed The Drawing Board. The Drawing Board is all about our employees,
and getting you directly involved and connected to the innovation practices that are the lifeblood of
this great company.
See these and much more at ecentral.sbdinc.com
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