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 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 810 Discount Stores 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 International 6000 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. Culture

Culture Strategy Question: “How did Sam Walton turn the people at Walmart into the key ingredient in the company’s success?”

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:

50 th 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 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%

IMPLEMENTING CULTURAL CHANGE Stages 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 Leadership Managers 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 Values 2. Shows you care 3. Builds Trust 4. Strengthens team work 5. Goal is synergy

Team Synergy at Wal-Mart 1. Servant Leadership 2. Use of Golden Rule Values 3. Empowerment 4. Ownership 5. 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 Understanding Feeling

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

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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