Restoration Hardware 2012 Annual Report Download - page 62

Our High-Performance Culture
We believe that to know our Company, you have to know our culture and our values. We are a team of
people who believe we can change the world. We believe in our ability to create an endless reflection of hope,
inspiration, passion and love that will ignite the human spirit and transcend our existence.
Our culture is driven by our management team, which instills a company-wide commitment to our core
values. Every leader in our Company participates in a training program annually and signs our Leadership
Contract, a commitment to model and teach our values. We believe our distinct corporate culture allows us to
attract highly talented team members who are passionate and driven and who share our vision. Our Company’s
core values are:
•People—We believe the “right” people are our greatest asset. We value people with high energy, who
possess the ability to energize others. People who are smart, creative and have a point of view. People
who see the answer in every problem, versus those who see the problem in every answer. People who
are driven, determined and won’t take “no” for an answer. We value team players, people who are
more concerned with what is right, rather than who is right.
•Quality—Quality starts with our people and should be visible in every aspect of our Company. From
our people to our products, to our service and our standards, from the way we communicate to our
commitment to educate. From the accuracy and efficiency in our distribution facilities, to the marketing
and presentation of our products in our stores, catalogs and websites. Being committed to quality
means being able to see it in every detail of our organization.
•Service—We believe that service starts inside the organization and embrace a concept called “People
First.” Simply put, it means “if we expect our people to deliver first class service to our customers, we
must first deliver first class service to our people.” It is everyone’s responsibility to remove the
obstacles and provide support so our associates throughout the organization are empowered to “Do the
right thing.” Our people smile when we smile, our people serve our customers when we serve our
people.
•Innovation—We value innovation, taking risks and boldly going where no company has gone before.
We believe you’re either striving to get better, or allowing yourself to get worse, there is no such thing
as staying the same. The power of innovation comes from leveraging the creative minds and spirit of
all our people at all levels of the organization. We strive to build an environment that encourages
people to challenge, ask “why?” and “why not?” We embrace those people who have the courage to put
forth new ideas and breathe new life into our Company. Innovation is at the core of what we do.
Evolution of Our Business
In 2001, we began to reposition Restoration Hardware from a nostalgic, discovery-items business to a
leading home furnishings brand. In 2008, we were taken private by investment funds affiliated with Catterton,
Tower Three and Glenhill. Our strategic plan at the time of the going private transaction required significant
investments in infrastructure to develop our distribution center in West Jefferson, Ohio and other initiatives to
improve our merchandise delivery capabilities. As part of the going private process, we received access to
additional equity capital from our investors and as a result we were able to accelerate the transformation of our
business and brand and the development of our multi-channel business model and infrastructure. Over the last
twelve years, we have built a new company through the following initiatives:
•Elevated Our Brand Positioning—We significantly enhanced the quality and design of our
merchandise, elevating our brand to a luxury positioning. We believe this strategy, along with our
compelling combination of design, quality and value, have allowed us to change the highly fragmented
home furnishings landscape and position us to grow our market share.
•Enhanced Our Product Development Process—We established a collaborative organization with cross-
functional teams in product development, sourcing, merchandising, inventory and creative, all focused
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