LES MILLS INTERNATIONAL GUIDE TO CREATING YOUR VISION, MISSION, VALUES & GOALS

1. LES MILLS INTERNATIONALGUIDE TO CREATING YOURVISION, MISSION, VALUES & GOALS

2. VISION, MISSION, VALUES & GOALS - Why and how! • Why bother? • At best this quartet of vision, mission, values and goals is capable of guiding your everyday steps to achieving your work-place dreams and becoming your team’s ultimate “Coach”. At worst they create huge obstacles to success because they are confused, uninspiring and lacking in clarity – together they then become the Coach you need to fire ASAP. • So our tools for both triumph or tribulation appear to be over-used jargon where everyone talks about creating a vision, mission, values and goals, everyone has an opinion and even worse, everyone defines the terms in different ways. • Inside this chaos is good sense. Put clear meaning into the jargon and we are invited to make that meaning specific to our business team and: • Speed up our decision making, • Know where to focus resources, • Be more efficient and • Ensure every action builds towards the future we have designed.

3. VISION, MISSION, VALUES & GOALS - Why and how! Is this relevant to me? We all have a choice, whether we are under-resourced and marginalized in Group Fitness or enjoy significant investment and management support. It’s all about perspective. Oakley took his last $300 and made some revolutionary sports sunglasses in his garage, when his wife was expecting their first child. Some would say it’s not possible with so little money. His view was an absolute commitment to find how he could make it happen with $300. And now Oakley is a global brand across several product categories and continues to seek out how to grow into new products/services. Whether you have $300 or $3 million as a budget and a team of 2 or 200, you can choose to meet obstacles with a readiness to find new ways to build your team’s success or you can opt out. Les Mills International challenges you to take the quartet of vision, mission, values and goals and create a Coach which will allow your team to be all that it can be, with every action underpinned by clear purpose. How do I develop our Vision, Mission, Values and Goals – our “Coach”? If possible, it would be ideal to have an independent consultant facilitate your developing your “Coach”. However, in the event this is not feasible, we have put together an overview of relevant definitions plus how to create your vision, mission, values and goals, working with your team, in-house.

4. VISION + MISSION + VALUES + GOALS = ULTIMATE COACH TO ACHIEVE YOUR WORK BASED DREAMS VISION, MISSION, VALUES & GOALS When jargon has meaning Overview Forget anything else you may have read on the quartet and apply these meanings when building your “Coach”. Vision: A short, inspiring statement of where you’d like to get to. It provides a unified direction for everyone in an organization and is a continual source of inspiration which cannot be ‘achieved’ Mission: How you intend to get there by being the best at what you do. Your Mission is like an over-arching stretch goal that you aim to achieve over time which utilizes your organizational strengths. Values: Guiding principles which affect how will behave every day on the way to fulfilling yourmission Goals: Key benchmarks for achieving your mission (must include quantifiable targets) Just to clarify, some people use these definitions: “Vision” = “Purpose” and also “Mission = Purpose”; “Values = Guiding principles” and “Goals” = “Objectives or targets.” As long as you are consistent and clear about your definitions, you can choose your ‘labels,’ though we recommend you use those in bold above.

5. VISION, MISSION, VALUES & GOALS When jargon has meaning Vision – definition Your vision must be perpetually inspiring and so must also be unattainable. It will get you up in the morning. It motivates you to meet goals and pursue your mission. It drives you to fulfill your potential. It must be authentic to your team – faking it’s a no go! Here’s a few examples to give you a taste of what some other organizations have defined as their vision. Walt Disney: To make people happy Nike: To experience the emotion of competition, winning and crushing competitors Les Mills International: Life-changing fitness experiences every time, everywhere It’s readily apparent that each vision is impossible to ‘achieve’ and yet is constantly inspiring for each organization.

6. VISION, MISSION, VALUES & GOALS When jargon has meaning Mission - definition Your mission highlights what you are best at in order to pursue the (unattainable and inspirational) vision. It tells you where you are going to focus your efforts and resources in order to win at this activity using your strengths. Mission statements guide an organization or a team in its day-to-day operations whereas a vision provides a sense of long term direction and inspiration for the future. It’s critical that a mission statement enhances involvement from all stakeholder perspectives: namely owners, employees/contractors and customers. With all stakeholders receiving benefit from the achieving the mission, loyalty and commitment to your organization can deepen over time. Deciding your mission is a defining moment for your organization’s or team’s leadership. By answering the question “how do we intend to win at this activity”, organizations must identify both their strengths and weaknesses and prioritize where they can operate most effectively in the competitive arena. By way of illustration, here’s some mission statements from other operations for your review. IBM: We want to be the best service organization in the world Walmart: To give ordinary folk the chance to buy the same things as rich people Les Mills International: To be number one in Group Fitness experiences in all its markets and to be a top 100 global brand Each organization has filtered down its strengths to a key attribute which it believes will underpin the organizations ability to win in its field and achieve its mission.

7. VISION, MISSION, VALUES & GOALS When jargon has meaning • Values - definition • Values are guiding principles which influence behaviors. For example, if I have a value of being ‘honest’, my behavior if I find a wallet in the club would be to hand it in to reception so the owner can get it back! • Hence values result in behaviors which in turn are “the how” of the mission. Like the vision, values endure in perpetuity, as they define who an organization is and influence how it will behave to pursue its mission and its vision. • Typically organizations have 4 to 6 values such as noted below. • Walt Disney • No cynicism • Nurturing of ‘wholesome American values’ • Creativity, dreams and imagination • Fanatical attention to consistency and detail • Preservation and control of the Disney Magic • Merck • Corporate social responsibility • Unequivocal excellence in all aspects of the company • Science based innovation • Honesty and integrity • Profit from work that benefits humanity • Les Mills International • Brave • Change the World • One tribe • Note that organizations can have social values, business specific values and emotional/psychological values as part of their value system.

8. VISION, MISSION, VALUES & GOALS When jargon has meaning Goals - definition Typically organizations set stretch goals which are measurable. Goals are attainable and typically have a 3 -10 year timeline. However some organizations have even longer term goals with a timeframe of up to 30 years! We recommend working with a 3 -10 year goals within Group Fitness, with steps made each year to build towards success. Once the goal(s) are met, then new stretch goals are identified to take the organization forward. Goal setting with a 3 -10 year timeframe becomes relevant to today’s activities by setting shorter term “sub” goals which are clear steps along the path to achieving the 3-10 year goal(s). Some examples of longer term goals include: Walmart: Become a $125 billion company by year 2000 (made in 1990) Ford: Democratize the automobile (early 1900s) Les Mills International: 15,000 clubs, a four-program average per club and 10 million people per week working out in LES MILLS™ classes by 2010

9. Vision Life-changing fitness experiences every time, everywhere Mission To be number one in Group Fitness experiences in all its markets and to be a top 100 global brand Values Brave, Change the world, One tribe Goal(s) 15,000 clubs, a four-program average per club and 10 million people per week working out in LES MILLS™ classes by 2010 VISION, MISSION, VALUES & GOALS How 2 Putting together the Coach By way of example, set out below is a summary of Les Mills International’s “Coach”. With their aligned vision, mission, values and goals, Les Mills International is primed to continue its pursuit of its mission while being perpetually inspired by its vision:

10. VISION, MISSION, VALUES & GOALS How 2 How to create your Coach – setting your vision, mission, values and goals for Group Fitness Step 1 Obtain your organization’s overall vision, mission, values and goals (if they are available). Once you have them you are encouraged to use them to make sure your Group Fit vision, mission, values and goals fit with the overall organization’s. Should it not be possible to get hold of organizations vision, mission, values and goals, please keep following the steps noted below. We recommend Steps 2 – Steps 5 are actioned in an in-house workshop with your team.

11. VISION, MISSION, VALUES & GOALS How 2 • Step 2 - Vision • Phase I – generating a GF Vision • The quickest way to identify a perpetually inspiring vision for Group Fitness is to call your key team into a room, grab some post-it pads and pens and ask yourselves:  • Why do we do this? • What do we want to create or provide by offering this service? • How do we want to make a difference? • What motivated us to get into Group Fitness? • Why do we continue to be involved in Group Fitness? • Throw everything down on post-it notes and share them. Discuss and refine what feels right for the team. • Please note that your vision will not be about money, as that can be benchmarked and superseded. Your vision will be a continual source of inspirational direction every day which by its very nature cannot be attained as it continues to motivate. • Phase II – checking your GF Vision is right • While it may feel repetitive, keep asking “why”, even when you have a vision that feels good, to check it’s the ultimate inspiring vision for the team. You want a power packed motivator which will be timeless. • When you’ve got something such as, “to improve the health and well being of our community,” you will be getting close as long as you and your team are getting excited!! • Phase III – benchmarking your GF Vision with your organization’s overall vision • Check that this GF Vision supports your organization’s overall vision, if one is available. • If your GF Vision and the organization vision are in conflict, ask yourself why. • Within our industry, desired economic outcomes are partnered by wanting to change peoples’ lives for the better. If your GF Vision incorporates this desire to improve people’s wellbeing it should be unlikely to find a philosophical mismatch with your organization’s vision.

12. VISION, MISSION, VALUES & GOALS How 2 • Step 3 - Mission • In order to derive how you are going to pursue your GF Vision, you need to establish what you are best at in order to aspire to that GF Vision! • Phase I – generating your GF Mission • Once again, you need to work with your team. Get some post-it pads, pens and follow this system. Ask yourselves: • What are we good at as a team? • What am I good at as a part of this team? • What do we have the best reputation for? • What makes us different from our competitors? • Why would someone refer us to a friend? • When you’ve found a consensus on what you are best at, ask yourselves ‘why’ three more times, in order to check there really is depth to why you are saying a particular aspect is your greatest strength. • If there are not enough reasons why this is your greatest strength, revisit the strengths the team has already identified to choose which attribute you are going to focus on to win in Group Fitness! • Then develop your mission statement so it shows how you are going to win. • It may be that you come up with a mission e.g: • “To be the most innovative and successful Group Fitness destination in our suburb/city/region”.

13. VISION, MISSION, VALUES & GOALS How 2 Phase II – checking your GF Mission supports your GF Vision Once you have a GF mission, check it will help you pursue your GF Vision. For example, the GF Mission “to be the most innovative and successful Group Fitness destination in our suburb/city/region” is aligned with the example GF Vision to “improve the health and well being of the community.” This is because the GF Mission encourages the provision of superb Group Fitness experiences which in turn will benefit members of the community you serve. If you find you can’t see how your GF mission would fit with your GF Vision, ask yourself again if your GF Vision is right. If you then conclude that your GF Vision is right and your GF mission is ‘wrong’, then revisit your GF Mission by returning to Step 3 until you are confident that your GF Mission is aligned with your existing GF Vision. In the event that your GF Mission work highlights that your GF Vision is not right, return to creating your GF Vision via Step 2, before confirming your output for your GF Mission through Step 3. IT IS CRITICAL THAT YOUR GF MISSION SUPPORTS YOUR GF VISION. KEEP GOING UNTIL THEY ARE ALIGNED! Phase III – confirm your GF Mission supports your organization’s overall mission Finally, double check if the GF Mission fits with your facility’s overall mission, if one is available. If your visions are in harmony, it is unlikely your missions will be in conflict. Also, as mission statements focus on how organizations are going to win in their chosen activity, your GF Mission can only enhance your organization’s own mission, which will also be seeking how to win, though at an organizational (rather than GF) level.

14. VISION, MISSION, VALUES & GOALS How 2 • Step 4 - Values • Phase I – Generating your GF Values • To decide what values/guiding principles will govern the teams’ behaviors on its journey to the GF Mission, use the following approach. • Take some post-it notes and pens with the team and identify the following. If you wish, you can use the example list of values in Schedule I. • What ‘words’ would members use to describe your GF department? • What ‘words’ would (non GF) staff members use to describe your GF department? • What ‘words’ would you choose to describe your GF department? • Group together words/values with similar meanings (e.g. honesty, openness, integrity) and choose one word/value to represent each group of similar words. Then choose 4 – 6 words/values from the work the team has done. • Test whether you think these are the real core values of your department by asking “what is higher purpose” of each value you have chosen. For example – a value of honesty may actually have a higher purpose of respect depending on the culture of your organization.Once you have confirmed your 4-6 values, generate 4 behaviors that demonstrate each of these values. Please remember that these behaviors must already exist today in your organization. Then list each behavior under the relevant value. • Why bother? Because you will be able to easily identify if behaviors are aligned with your values day-to-day. In other words, you can ‘make a call’ on if someone is behaving in accordance with your values or not….

15. VISION, MISSION, VALUES & GOALS How 2 Step 4 – Values continued Phase II – Checking the GF Values support the GF Mission and GF Vision Given your team has developed the GF Vision and GF Mission as a group, it is likely that there is some synergy between the guiding principles and resultant behaviors that already exist in your organization and those required to achieve your GF Mission and individuals’ values. If there are few or no synergies then you have to ask yourself as the Leader of this process how you are going to establish training to develop the behaviors you need or how your are going to get different people on the team that can deliver to the GF Mission and GF Vision. Phase III – Benchmark the GF Values with the organization’s overall values Ensure that GF’s Values fit with the organization’s values. As noted previously, if your GF Mission and GF Vision are congruent with the organization’s vision and mission, it is highly unlikely you will have any conflict around your GF Values.

16. VISION, MISSION, VALUES & GOALS How 2 Step 5 - Goals Phase I - Two types of goals It’s critical to ask yourselves what key milestones would help you realize your GF Mission. So, if your GF Mission is: “To be the most innovative and successful Group Fitness destination in our suburb/city/region”. 1. Your 3-10 year goal may be: “To have overall class attendance at 85% capacity with commitment from Management to build a new GF studio by XXXX”. 2. Your Year 1 goal on the path to achieving the 3-10 year goal could be: “To achieve a 10% increase in weekly GF attendance.” Each year, you will revise your annual goals to meet your 3-10 year goal(s) to ensure all your actions fit with your plan! Phase II – Generating your 3-10 year goal(s) Together with the team, pick up your post-its and come up with some stretch goals for GF. Key areas to consider for defining stretch goals could be: 1. Weekly GF attendance 2. Weekly GF attendance as %age of total weekly attendance 3. New memberships generated per annum by GF 4. Percentage of studio capacity utilized (during the week versus the weekend) 5. Number of programs launched and regularity of re-launches 6. Number of instructors per program 7. Number of instructors recruited, trained and retained each year 8. Profile of your GF activities in the media e.g. radio, TV, press – measured by what articles/interviews you’ve secured Once you’ve shared your ideas on goals, agree as a group which stretch goal grabs the team as being both possible yet very challenging.

17. VISION, MISSION, VALUES & GOALS How 2 Phase III – Create shorter term goals that will contribute to the overall GF goal(s) It’s critical to identify and track shorter term goals that fit with achieving this 3-10 year goal, for example: Year 1: “To achieve a 10% increase in weekly GF attendance.” Here the Year 1 goal to increase GF weekly attendance by 10%, builds towards the 85% capacity targeted in the 5-10 year goal and also demonstrates GF success. This success could support a case to Management to build a new GF studio by year XXXX, as noted in the 3-10 year goal. With this in mind, grab your post-it notes and pens and generate Year 1 goal(s) using the same process and the same 8 key areas you considered to create your 3-10 year goal(s). When you have determined your Year 1 goal(s) with the team, create quarterly and then monthly targets which drive towards achieving the Year 1 goal. For example, each yearly plan may include specific internal promotions for certain months to drive up attendance. Further, you may incentivize members to bring a buddy to classes at key points in the calendar. Or you may plan re-launches for both retention benefits and to create new membership sales in chosen quarters. At the end of Year 1, evaluate your progress against your Year 1 goal(s) and then set next year’s goal(s). Then for Year 2, plan what actions are required each month and quarter to meet that Year 2 goal and repeat each year. Phase IV – Benchmark against the organizations overall goals Review your 3-10 year goal(s) and establish if they are synergistic with your organizations overall goals. As your goals will focus on incrementally creating sustained improvement in GF, it is unlikely your GF goal(s) will be at odds with the overall organization goals.

18. Vision Mission Values Goal(s) VISION, MISSION, VALUES & GOALS How 2 Step 6 - Create your Coach Please fill in the blank boxes with your vision, mission, values and goals! Blow up this diagram and put it on the wall. Take it in turns to read this out loud during every team meeting to make sure it “lives”. Celebrate it and have it where everyone can see it. Benchmark every decision against whether it fits your Coach and party when you meet goals! Your Coach must be with your team every day to make a difference to your working lives and the health and fitness of your members. Good luck!

19. VISION, MISSION, VALUES & GOALS Values list Schedule I  Examples of values to help kick start GF Values work in Step 4