Sam Walton Leadership and Business Success
Sam Walton (1918-1992)
American founder (pictured right) of Wal-Mart, the world’s biggest retailer and owner of the
British supermarket, Asda.
Its first store opened in Bentonville, Arkansas, in 1962.
What were his tips about leadership and business
success?
1. Exceed customers’ expectations
Walton pioneered discount retailing i.e. selling a wide range of quality products at
very low prices in a central location with long opening hours.
Everything he did was geared to giving customers the best value, service and variety.
“There is only one boss: the customer”, he said.
2. Super systems and low costs
To continually cut profit margins and prices, he:
a) used computers
(to check stock levels and order new supplies).
b) was tough on suppliers
(getting big discounts from bulk buying)
c) opposed trade unions
(and their power to increase wages).
3. “Swim upstream”
i.e. don’t blindly follow other retailers but innovate and introduce new ideas like price discounting.
Break the rules when you have to.
4. Great employees
He was fanatical about choosing talented people, stealing other stores’ best employees. What was his advice to
get their peak performance?
- push them with high expectations and tough targets.
- get them to work well together.
- communicate with them and listen to them.
- appreciate everything and celebrate successes.
- give people knowledge to make their own decisions.
“If people believe in themselves, it’s amazing what they can accomplish”, he said.
5. Care for the community
He was very conscious of his local image particularly when his stores started to bankrupt small businesses.
So he:
- actively encouraged community initiatives like raising money for local
charities.
- offered college scholarships to high school graduates.
6. Hard work and visibility
Walton:
- lived for retailing (visiting his stores, checking people’s performance and working
weekends).
- introduced Saturday morning meetings for managers (much to the annoyance of
their wives!)
Walton's wife, Helen, is pictured right in a 1981 family photo.
7. Tough and determined visionary
Walton:
- liked to get his own way.
- was a tough negotiator (e.g. with suppliers)
- wanted Wal-Mart to be the world’s best retailer (not necessarily the
biggest!).
8. Passion and enthusiasm
He loved retailing, and family vacations always included store visits!
His enthusiasm rubbed off on his employees.
Every time he visited a store, he was a cheerleader, shouting:
“Give me a W, give me an A, give me an L etc….what does that spell?”
Walton's first store in Bentonville is pictured right.
9. Respect
Employees admired his down-to-earth charm, ability, drive and
character (see point 10).
10. Character
He had great integrity, humility and rapport with ordinary
people, despite being worth billions.
Key quotes on
customers
“There is only one boss: the customer”.
“The key to successful retailing is to give customers what they want”.
Key quote on service-profit
chain
The folks on the front lines – the ones who actually talk to the customer – are the only ones who know what’s
going on out there.
Key quote on
management
High expectations are the key to everything.
Key quote on
empowerment
“If people believe in themselves, it’s amazing what they can accomplish”.
Key quote on work
“I overcame every single one of my shortcomings by the sheer passion I brought to my work”.
Key quote on
teams
Individuals don’t win, teams do.
Key quote on business
success
Commit to your business. Believe in it more than anybody else.
Key quote on influencing
people
Don’t take yourself too seriously. Loosen up, and everybody around you will loosen up. Have fun.
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