Conference Presentation, Fireside Chat, Panel, Interview
Value and Values: Building a High-Performance Company
- The organization anticipates resolving current strategic disarray, where 30,000 employees operate in divergent directions, by implementing a clear "North Star" plan to shift from a top-down structure to one where employees have clear directions and accountability for outcomes.
- A significant expansion of talent management is planned, including employee engagement surveys and talent assessments with Gallup, increased onboarding investment for young leaders, and a personal development path evidenced by 97 out of 99 district managers starting as part-time workers.
- Corporate culture will be enforced through the over-communication of values, a zero-tolerance policy for executives who do not embody these values, and a shift in decision-making authority that decentralizes operational intelligence while centralizing financial and value-based decisions.
- Employee empowerment will be formalized by granting store managers the authority to spend up to $150,000 without approval and by offering a personal day for community service to all associates regardless of the activity type.
- Philanthropy and social responsibility are projected to expand significantly, with a commitment to donate more than $100 million over the next five years, the continued construction of a monastery in Bhutan and schools in Africa, and a target for 90% of employees to participate in self-select service groups.
- A scholarship program for associates and customers is envisioned to encourage education, while new hires will be sought for their natural alignment with the company's philanthropic model rather than being screened specifically for it.
- The company plans to address "food deserts" in Detroit with a new store opening on June 5 at the corner of John R and Mac, acknowledging this expansion is a "stretch" for culture that involves risks regarding elitism and racism.
- Retail operations are expected to undergo drastic changes over the next five years driven by a shifting customer base, shorter technology adoption cycles, and the prediction that millennials will conduct 30 percent of retail business by 2020.
- To address health needs and transparency, the company aims to have full GMO product transparency by 2018, accepting the risk of potential sales loss if competitors do not follow suit, while anticipating that future consumers will view transparency as a badge of honor.
- The organization foresees a divergence between capital markets and long-term value creation due to an average equity hold period of six months, though it expects social investment funds to grow and maintains that ethical decisions will ultimately drive long-term competitiveness.
- Technological shifts, including the obsolescence of legacy software described as "Windows is dead," and the influence of social media in brand management are expected to force a complete rebuild of management structures and leadership models.
- Future leadership is predicted to be dominated by individuals in their 20s and 30s who utilize new tools and management models, with a "new world" requiring new types of companies that prioritize speed, openness, transparency, and collaboration.
- The "1-1-1 model" (1% equity, 1% time, 1% profit) is expected to drive innovation and relationship quality, with the belief that the next generation of CEOs will run companies differently and that investors will increasingly scrutinize the character of company personnel.