how to compete & thrive in a walmart world culture “picking walmart’s p.o.c.k.e.t.s”...
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How to Compete & Thrive in a Walmart World
CULTURE
“Picking Walmart’s P.O.C.K.E.T.S”
SESSION #2
If you think you’re beaten
you are!!!
If you think you can . . .
you probably can!!!
I. I. I. T. B. I. I. U. T.
M.If It Is To Be . . . It Is Up To Me !!!
Walmart Cultural ChallengesWalmart Cultural Challenges
• Bigger than Home Depot + Kroger + Target + Sears + Costco + K-Mart
• Bigger than Tesco + Metro + Carrefour
• Culturally – 2.3 Million Employees
2003 & 2004 & 2009 FORTUNE Magazine
Most Admired Company
Walmart
USA – 4200 Stores USA – 4200 Stores
• 810 Discount Stores - 225 EE’s – 9100 Sq. M. – 62K items
• 2737 Supercenters – 400 EE’s – 17,400 Sq. M. – 116K items
• 151 Neighborhood Markets – 95 EE’s – 3994 Sq. M. – 38K items
• 605 SAM’S Clubs – 75 EE’s – 12,263 Sq. M. – 5K items
1.4 MM EE’s
Walmart Walmart InternationalInternational6000 Stores6000 Stores
Japan, United Kingdom, Canada, Mexico, India, China, Argentina, Brazil, Guatemala, Chile, Honduras, Costa Rica, El Salvador,
Nicaragua, Puerto Rico & Africa
900K EE’s
P.O.C.K.E.T.S.P.O.C.K.E.T.S.
Culture
Culture Strategy Question:
“How did Sam Walton turn the people at Walmart into the key ingredient in the company’s success?”
Answer:Answer:“Sam Walton trusted his associates with information, empowered them to serve the customers, instilled ownership, and treated them like business partners.”
“Walmart is returning to the teachings of Sam Walton.”
According to Mike Duke, President & CEO of Walmart:
50th Walmart Anniversary Commemorative Edition
“Our people make the difference”
Sam Walton
People = Culture
Cultural Indoctrination
Walton Institute – University of Arkansas
Cultural Indoctrination
Some say “The Walmart Way” is
like a cult
Sam Walton / Walmart refer to . . .
- Employees as Associates
- Customers as Neighbors or Friends
- Pharmacy Customers as Patients
- Managers as Coaches
- Suppliers as Vendor Partners
What Makes Walmart . . . Walmart?
Istanbul, Turkey
Sam Walton An Uncommon, Common Man
Ordinary man - achieved the extraordinary
Golden Rule Values / Servant Leader
Out-think / out-work / out-execute
Continuous learning / improvement
Storyteller – Company Folklore
Cheap as the day is long
Embraced change like a friend
Cultural Values:
Respect for the Individual Service to Customers Strive for Excellence
Sam Walton “Entrepreneur”
The Sam Walton WayThe Sam Walton Way
Tactics of the World’s
Richest Man
Sam Walton’s Self-Professed 10 Rules for Success
1 - Controlling Expenses
1 - Customer Service
1 - Risk Taking
1 - Your Personal Commitment
6 - Treatment of People
CULTURE & CHANGE & RISK
Sam Walton embraced change & he wasn’t afraid to
take risks
CULTURE & CHANGE & RISK
People hate change
20% / 60% / 20%
IMPLEMENTINGCULTURAL CHANGEStages
1
2
3
4
5
ACTIVITY
90%
75%
50%
25%
10%
RESULTS
10%
25%
50%
75%
90%
CULTURE & CHANGE & RISK You find Sustainable
Competitive Advantages when your people take managed
risks
Servant LeadershipManagers are out on the floor, working right along side the employees. This is the secret to building morale and creating team synergy
Why Servant Leadership
1. Use Golden Rule Values2. Shows you care3. Builds Trust4. Strengthens team work5. Goal is synergy
Team Synergy at Wal-Mart1. Servant Leadership2. Use of Golden Rule Values3. Empowerment4. Ownership5. Team Synergy
Servant Leadership
Employees don’t care how much you know until they know how much you care
about them!
Associate Opinion Surveys & Grass Roots Meetings
Designed to gather input from employees.
H.E.A.T.K.T.E.
High Expectations Are The Key To Everything
H.E.A.T.K.T.E.
Profit Sharing is the fuel Sam Walton used to fuel the
Walmart Rocket!
H.E.A.T.K.T.E. &
Performance Discrepancy
The difference between desired and actual
performance
H.E.A.T.K.T.E.
Empathetic versus Sympathetic Leaders
UnderstandingFeeling
H.E.A.T.K.T.E.
The Jumper
H.E.A.T.K.T.E.
The leader who accepts excuses for non-
performance has become part of the problem!
H.E.A.T.K.T.E.
Why deal with non-performers?
To give the good performers a reason to continue doing a good
job!
H.E.A.T.K.T.E.
Sundown Rule
10 foot rule
Information Sharing - P&L
Culture Lessons The Walmart Way
Treat employees like business partners
Solicit ideas from employees - use them
Share your profits with all employees
People = Culture“Take care of your people, your people will take care of your customers, & the business will take care of itself.”
Sam Walton
Questions
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www.michaelbergdahl.net
How to Compete & Thrive in a Walmart World
CULTURE
“Picking Walmart’s P.O.C.K.E.T.S”
SESSION #2