CarMax 2010 Annual Report Download - page 4

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2 CarMax 2010
Building a Better CarMax – 
Developing Associates
The CarMax culture is based on the premise that associates
who are “engaged” and excited by what they do everyday
and who have the opportunity to learn and grow in their
careers will be more fulfilled and committed to the com-
pany’s mission. We are dedicated to the professional develop-
ment and success of all our associates, and we believe that if
we take care of our associates they will ultimately take the
best possible care of our customers.
During fiscal 2010, as we paused our new store growth, we
took the opportunity to refocus our attention on several
important strategies. Relative to associates, we had a sim-
ple mission: To attract, develop and retain talented associ-
ates to fuel long-term growth. “It boils down to choosing
the right associates and providing them with ongoing train-
ing and development to ensure that all of them have the
tools they need to be effective and grow,” said Pam Hill,
Director, Selection and Recruiting. Once again this year,
we are proud that Training magazine named CarMax as one
of its Training Top 125.
It all starts with identifying and recruiting top talent. This
year we enhanced our process by reaching out to candidates
through social media sites and with internally produced
videos showing “a day in the life” of a sales associate to help
potential associates learn about everyday life at CarMax. For
current associates, a major overhaul of our annual perfor-
mance review was built on cutting-edge, competency-based
learning. The new system allows managers to focus less on
ratings and more on an open dialogue with associates about
performance. Our Base Camp leadership training workshops,
a new manager assessment program and executive develop-
ment circles are also in place to help support the develop-
ment of various levels of associates.
On average, each CarMax store associate completed at least
20 online or classroom courses during fiscal 2010, totaling
more than 44 hours of training per associate. Much of this
training was delivered via KMX University (KMXU), our pro-
prietary internet-based training, testing and tracking system.
From the vantage point of our sales associates, as well as
our customers and shareholders, perhaps the single most
exciting new training program rolled out recently was our
Professional Selling Principles. This internally developed
advanced selling skills class identified and standardized
the most successful techniques of the company’s top
sales associates. “The initial rollout was just the begin-
ning,” said Dan Johnston, Assistant Vice President, Sales
Operations. “More modules are under development that
will continue to help our sales associates gain more confi-
dence and greater skills in order to better connect with the
customer and sell more cars. This is a win-win for every-
one: associates, customers and shareholders.” In addition,
we implemented a call recording and review program to
provide constructive, real-time feedback to associates on
how to improve future interactions with customers.
As important as training is to career success at CarMax,
another key component of our culture is celebration. “Not
only do we want to tell our associates that they are valued,
we want to demonstrate it as well,” said Human Resources
Manager, Jon Mulholland. Departmental team-building
events are encouraged in order to celebrate successes and
develop better relationships with colleagues. “The Above
and Beyond award honors our associates who demonstrate
a commitment to customer service beyond even our every-
day high standards,” said Mulholland. Stores that exceed
key performance targets are rewarded with steak cookouts,
grilled and served by members of the executive team.
Other specific associates and stores are acknowledged for
their success as a Champion of the Quarter or one of Tom’s
Top Ten. Top performing associates from each functional
area of our stores are honored at annual award banquets as
part of CarMax’s President’s Club program.
“Being a CarMax associate means working hard, taking
care of customers, learning, growing and just plain hav-
ing fun,” said Karen Holt, Regional Human Resources
Director. We believe our success in establishing and main-
taining a positive and rewarding workplace environment
where associates can flourish was one of the key reasons
why CarMax was named one of Fortune’s “100 Best
Companies to Work For” for the sixth year in a row.