Welcome

to
Fred Smith
….Founder &CEO, FedEx

“Looking back on 25 years at the forefront of a

dynamic & evolving industry, two things have
remained constant at FedEx:-
change
the ability & willingness of our employees to
embrace
change on behalf of our customers”
FedEx Corporation

 Type : Public
 Founded :1971
 Headquarters :Memphis, USA
 Key people : Frederick W. Smith,
Chairman, President
Alan B. Graf Jr., CEO
 Revenue : ▲36 billion USD (2007)
 Operating Income : ▲3 billion USD (2007)
 Gross Profit : ▲2 billion USD (2007)
 Vision

“100 % customer satisfaction after every

interaction and transaction
100 % service performance , ensuring that all
delivery are made within the time
commitment for the service selected by the
customer.”
Mission

“FedEx is committed to our People-Service-

Profit Philosophy. We will produce outstanding
financial returns by providing totally reliable,
competitively superior, global, air-ground
transportation of high-priority goods and
documents that require rapid, time-certain
delivery."
 • Most familiar service.
• Handles millions of shipments.
• Delivers in 1 to 2 business days.
• Cost effective.
• Alternative for small packages.
• Distance and time are wider.

• Heavy weight shipments.

• Less than truck load (LTL) freight.
• 600 miles next day delivery.
• 1,600+ miles second day delivery.
• When customers need it now.
• 24hrs. 7 days a week, including nights,
weekends and holidays.

• Custom brokerage.
• Electronic custom clearance.
• Speed shipments across the border.
Goal

“Operate independently
Compete collectively”
First from FedEx

Concept of time-criticality & expedited delivery.

Bar codes in ground transport.
Online package tracking.
First use of TV ads.
Extended service hours.
 The PSP philosophy
A Three-Legged Stool

PEOPLE : Customer comes first.

SERVICE : Meeting and exceeding customer

expectations.

PROFIT : People’s commitment and

empowerment.
3 Step Innovation Process
Implementation of 3-Step Innovation

Step 1: Employees freely generate and

express ideas
Step 2: Acceptance and Collaboration to
develop raw idea into sound
business plans.
Step 3: Adoption, Execution and
Implementation of plan.
Customer-Value Proposition

Improve
– product and services.
– business models and enhance their competitive
edge.
– life experiences, saving time and offering peace of
mind.
Ease of access and use.
Competitive pricing.
Respected and trusted brand.
An Innovation Continuum

i-- -I
An Innovation Continuum

 Creation of new products.

 New approaches to old products and
services.
Innovation in the business is a continuum,
from innovation to Innovation.
The ‘i’ (day-to-day thoughts and ideas) that
trigger ‘I’(ground breaking ideas).
Successful innovation is a journey.
Innovation culture model
Dimensions of the Model

Engage employees in the enterprise

Help employees to continually grow their
knowledge.
Create a secure environment for expression.
Encourage collaborative development of
ideas
Tap employees commitment for successful
implementation.
Employee-FedEx Equation

Share the company strategies & goals.

Include employees at all levels in creating &
keeping customers.
Set measurable goals for improving your
customer value proposition.
Tell employees regularly how they are
making a difference.
Barriers to Innovation in
Companies

Lack of -
 Supportive leadership
 Understanding
 Collaborative thinking
 Balance
 Replicable innovation culture model
Spread the can-do attitude

Let appreciation flow from the heart.

Listen to understand instead of listening to
respond.
Recognize and celebrate employee’s efforts
and success.
WIN
FedEx Express 2008

More than 3.5 million packages daily

More than 220 countries and territories
672 aircraft
More than 141,000 employees
More than 14,000 employees in Asia Pacific