Best Buy 2016 Annual Report Download - page 7

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Our third priority is to advance key growth initiatives that will more deeply transform
Best Buy, creating differentiation and growth. We believe we operate in an opportunity-
rich environment. Specifically, the advent of the “Internet of Things” is creating a new
technology wave that makes Best Buy’s operating model increasingly relevant. We know
from our customer research and day-to-day customer interactions that consumers are
generally:
1) Fairly skeptical that the latest products will actually do what is promised;
2) Finding it difficult to pinpoint solutions available to best meet their needs;
3) Frequently unaware of, or frustrated by, how to get the most out of their
technology; and
4) Struggling to make their technology work and find effective help when they need
it.
These unmet needs continue to create opportunities for us. We are committed to finding
ways to help customers in these areas and to make shopping for and using technology a
much better experience.
We will explore a number of initiatives in FY17, including developing more consultative
selling approaches and providing a richer set of services to our customers. We will also
pursue growth opportunities around key, growing product categories.
A critical component of our growth efforts is our services capabilities, including the Geek
Squad. While it may not yet be visible in our quarterly financial results, we are making
progress in this area. To do so, we had to spend time over the last two years fixing many
aspects of our traditional warranty and repair businesses, including our pricing. We are
seeing the results of our efforts through substantially higher Net Promoter Scores, an
increased number of total customer interactions and improved attach rates.
4. The Composition of our Board and its Commitment to Good Governance
A strong board and strong governance practices are critical enablers of a company’s
success.
Over the last few years, we have taken steps to align the composition of our Board with
our strategy. As is outlined in our Proxy Statement, we have a very robust process in
place to ensure this alignment. I am proud of the talent and expertise that exists on our
Board and very appreciative of the work of my colleagues on the Board. I am particularly
grateful to Lead Independent Director Russ Fradin for his partnership and leadership.
As is appropriate, we have equally robust processes and practices around the
formulation of our strategy, risk management, talent development and succession
planning, executive compensation, shareholder engagement, and the evaluation of the
performance of our Board and management.
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