TheSam WaltonWay
50 of Mr. Sam’s Best Leadership Practices
50th Walmart Anniversary
Commemorative Edition!
by
Michael Bergdahl
Brighton Publishing LLC
Chandler, AZ
The Sam Walton Way
50 of Mr. Sam’s Best Leadership Practices
Michael Bergdahl
Brighton Publishing LLC
501 W. Ray Road
Suite 4
Chandler, AZ 85225
www.BrightonPublishing.com
Copyright © 2011
ISBN: 978-1-936587-47-6
Smashwords Edition
Cover design by Tom Rodriquez
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage retrieval system, without permission in writing from the copyright owner.
This book is in no way authorized by or endorsed by Walmart Stores Incorporated, Walmart Stores, Sam’s Club or its Affiliates. All references to these trademarks and brands are used in accordance with the Fair Use Doctrine and are not meant to imply that this book is a Walmart Stores Incorporated Product for advertising or other commercial purposes.
Cover Photo: Sam Walton, addressing the stockholders at the 1991 stockholders meeting in Fayetteville, Arkansas. Photo Credit: UPI
Dedication
To my wife, Sheryl, the best friend, wife, mother and partner I could ever have dreamed of. God bless you and thank you for everything. You make me a very lucky man.
In Memoriam
“I’d like to be remembered as a good friend to everyone whose life I’ve touched, as someone who has maybe meant something to them in some way.”
Samuel Moore “Sam” Walton
(March 29, 1918—April 5, 1992)
Presidential Medal of Freedom
On March 17, 1992, President George H. W. Bush honored Mr. Sam with the highest award bestowed by our nation on a civilian: the Presidential Medal of Freedom:
“An American original, Sam Walton embodies the entrepreneurial spirit and epitomizes the American dream. Concern for his employees, a commitment to his community, and a desire to make a difference, have been the hallmarks of his career. A devoted family man, business leader, and statesman for democracy, Sam Walton demonstrates the virtues of faith, hope, and hard work. America honors this captain of commerce, as successful in life as in business.”
Presentation by
The Hon. George H. W. Bush
41st U.S. President
Contents: Section One
Preface
Prologue
What Would Sam Do #1
SIMPLIFICATION
What Would Sam Do #2
BENCHSTRENGTH
What Would Sam Do #3
ACCOUNTABILITY
What Would Sam Do #4
EMPOWERMENT
What Would Sam Do #5
ENTREPRENEURISM
What Would Sam Do #6
FOCUS
What Would Sam Do #7
BUDGET
What Would Sam Do #8
OVERACHIEVE
What Would Sam Do #9
UNITY
What Would Sam Do #10
REINFORCE
Sam Walton’s Three Basic Beliefs and Values
Contents: Section Two
What Would Sam Do #11
HONESTY
What Would Sam Do #12
INFORMATION
What Would Sam Do #13
LEADERSHIP
What Would Sam Do #14
PERSISTENCE
What Would Sam Do #15
EXCELLENCE
What Would Sam Do #16
BENCHMARK
What Would Sam Do #17
CLARITY
What Would Sam Do #18
SERVICE
What Would Sam Do #19
PARTNERSHIP
What Would Sam Do #20
EDUCATE
Mr. Sam’s Customer Service Commandments
Contents: Section Three
What Would Sam Do #21
INFLUENCE
What Would Sam Do #22
OPPORTUNITY
What Would Sam Do #23
INNOVATION
What Would Sam Do #24
GUARANTEE
What Would Sam Do #25
COMPETITION
What Would Sam Do #26
LISTENING
What Would Sam Do #27
IMPROVEMENT
What Would Sam Do #28
THINK SMALL
What Would Sam Do #29
VISION
What Would Sam Do #30
COMMITMENT
Mr. Sam’s 11 Walmart Leadership Competencies
Contents: Section Four
What Would Sam Do #31
IMITATION
What Would Sam Do #32
CUSTOMER FOCUSED
What Would Sam Do #33
PERSEVERENCE
What Would Sam Do #34
ANALYZE
What Would Sam Do #35
EXECUTION
What Would Sam Do #36
PROACTIVE
What Would Sam Do #37
RISKTAKING
What Would Sam Do #38
EXPECTATIONS
What Would Sam Do #39
TACTICS
What Would Sam Do #40
STUDY
Sam Walton’s 10 Rules for Success
Contents: Section Five
What Would Sam Do #41
SYNERGY
What Would Sam Do #42
CELEBRATION
What Would Sam Do #43
CHANGE
What Would Sam Do #44
BELIEVE
What Would Sam Do #45
URGENCY
What Would Sam Do #46
COLLECT
What Would Sam Do #47
LOYALTY
What Would Sam Do #48
TEAMWORK
What Would Sam Do #49
EFFORT
What Would Sam Do #50
APPRECIATION
Mr. Sam’s Glossary of Walmart Terminology
Sam Walton Biography
Timeline of Events in Sam Walton’s Life
About Michael Bergdahl
Preface
“If you love your work you’ll be out there every day trying to do it the best you possibly can, and pretty soon everybody around will catch the passion from you—like a fever.” —Sam Walton
On July 2, 1962, Sam Walton opened his first Walmart Discount City Store at 719 Walnut Avenue in Rogers, Arkansas. In 2012, Walmart will celebrate its 50th anniversary. In recognition of Mr. Sam’s fifty year leadership legacy I felt it was important to recognize this milestone. Generations of Walmart Associates and Managers have come and gone, and few of those who are currently employed by the company actually knew Sam Walton personally.
To this day, Walmart’s leaders continue to turn to Mr. Sam’s leadership philosophies to guide them as they operate Walmart Stores and Sam’s Clubs around the world.
This book, THE SAM WALTON WAY: 50 of Mr. Sam’s Best Leadership Practices, is a tribute to Mr. Sam, and it is designed to capture some of his best leadership practices for posterity, by asking and answering the question, “What Would Sam Do?”
I hope you enjoy this 50th year tribute to Mr. Sam’s Walmart leadership legacy.
Michael Bergdahl
The Sam Walton Way
By Michael Bergdahl
Sam Walton was an ordinary man
Who started with a simple plan
His only dream to be the best
Not bigger, but better than the rest
His wife Helen was the one
Who helped Sam Walton get it done
When funds were tight in ‘45
Her father’s loan kept dreams alive
Sam started with a single store
He never really wanted more
But as his idea gathered steam
His goal became a global dream
He imported goods from overseas
Manufacturing products for lower fees
He focused hard on lowering cost
His customers won: his competitors lost
He asked his customers what to buy
Then charged low prices and stacked it high
Thousands of customers shopped his store
With an insatiable desire to purchase more
His greeters smile and say hello
Welcoming customers they’re sure to know
His Associates help and show the way
Providing great service every day
Sam
made his customers number one
And shopping his stores was actually
fun
Prices and products were guaranteed
And checking out was
done with speed
He
traveled here and traveled there
He flew his own plane
everywhere
He visited stores across the land
Talking, serving
and shaking hands
He
believed his team to be the key
He gave credit to others for all
to see
He was quick to diminish his own role
Crediting team
success for achieving goals
His
Associate partners meant so much
He treated them with a personal
touch
He cared for them like trusted friends
And they believed
in him until the end
“Mr.
Sam” is the respectful name
Of this man who sought not wealth or
fame
His legacy is the customers served
He’d say he achieved
more than he deserved
Sam
Walton was an extraordinary man
Who had passion along with a
simple plan
He proved that dreams can come true
If you’re
willing to do what you have to do
Prologue
The
Sam Walton Way:
WWSD—What Would Sam Do?
Contrary to popular belief, Sam Walton wasn’t born in Arkansas; he was actually born in Kingfisher, Oklahoma. He was raised in Missouri where he worked in his father’s store while attending school. After graduating from the University of Missouri in 1940, with a degree in economics, he began his own career as a merchant when he opened and ran several Ben Franklin five-and-dime retail franchises. It would be more than twenty years after his college graduation before he opened his first Walmart Store in Rogers, Arkansas.
Did you know that when Sam Walton started his business he faced adversity that almost led to his failure? You see, he had an economic crisis when bankers refused to lend him money, and some of his product suppliers created a credit crisis for him when they forced him to agree to pay cash on delivery before they would ship products to his stores. His early competitors scoffed at his discounting strategies and poorly merchandised stores. It seemed everyone lacked confidence in his retail business strategy at a time when he needed to count on their support the most.
For Sam Walton to succeed, in those early and difficult days, took a singularity of focus, passionate leadership, and a never say die attitude! He had to overcome his own fear of failure and refocus himself on what to do to succeed. In the end he overcame all of those early obstacles, and the cynicism of all of those early naysayers, who incorrectly predicted his demise. Sam Walton had the last laugh as he grew his business from a single store to become the world’s largest company. Along the way he also became the world’s richest man! (Note: When he died, Sam Walton’s personal family wealth was US$100 billion!) In the end, Mr. Sam transformed the way business is conducted around the world with his paradigm busting best leadership practices.
I was fortunate to have had the opportunity to work with, and around, Sam Walton, the founder of Walmart. That’s how I learned that “THE SAM WALTON WAY” IS “THE WALMART WAY!” In this book, THE SAM WALTON WAY, as a tribute and to commemorate Mr. Sam’s 50 year leadership legacy, I have captured 50 of his Best Leadership Practices. It is the foundation of his leadership that has led Walmart to become what it is today, the World’s Largest Company. Interestingly, when faced with a difficult problem today’s company leaders often find themselves still asking, “What Would Sam Do?”
When I worked for Walmart I worked at the home office in Bentonville Arkansas, where I had the unique opportunity to work with Sam Walton one on one. Every week I also had the chance to see him in action at Walmart’s renowned Saturday Morning Meetings. These meetings provided me with unique first hand insights into his unusual leadership style that only an insider can provide.
Sam Walton had three basic beliefs that remain cultural anchors at Walmart to this day: 1) Respect for the Individual 2) Service to Customers, and 3) Strive for Excellence. These beliefs are practiced daily in interactions with customers, between store, distribution center, and home office team members. These three beliefs are also intertwined in all of Sam Walton’s best leadership practices.
Sam Walton was a Servant Leader who never asked anyone else to do anything that he hadn’t already proven he was willing to do himself. You might say he led by his own example. He taught his entire leadership team at Walmart to use ‘Golden Rule Values’ in their dealings with the ‘Associates’ (Mr. Sam’s term for employees). Sam Walton would often say, “The Associates don’t care how much their manager knows until they know how much their manager cares... about them!”
In recognition of Sam Walton’s love and respect for Walmart’s more than 2 million employees around the world, I have capitalized “Associate(s)” throughout this book.
One of the towering strengths of Sam Walton was his unique ability to gain the trust and support of the people around him. He called his customers “neighbors” or “guests” and he referred to the managers in his company as “coaches.” He referred to the employees of his company as Associates or business partners and they referred to him, out of respect, as “Mr. Sam.” In this book, out of respect, I too will refer to Sam Walton also as “Mr. Sam.”
Deservedly, Sam Walton was included in TIME Magazine’s list of 100 most influential people of the 20th Century. So what was it that made Mr. Sam so successful? What was it about him that led him to such monumental success? The basis of his success resulted from the fact that he was an entrepreneur with incredible discipline. He put his heart and soul into creating, nourishing, and growing his retailing empire. He spent every waking hour trying to make his company, and all of Walmart’s people, the best in the world, and over time he succeeded. He was the most charismatic leader I have ever met, and he was also a very uncommon, common man.
So what did Sam Walton do that was so unique and unusual that made his company catapult to the top of the business world? Why is it that his competitors, suppliers, non—competitors, professors and college students across the globe study Walmart’s best practices trying to gain insight into Mr. Sam’s incredible success story? Why has his company continued to prosper while others have failed? To understand Walmart’s success you have to understand the teachings of its founder Sam Walton.
To the outside observer, Walmart’s high performing culture is one of the great mysteries of the company. The fact is the majority of Associates at Walmart really do care about their jobs and their company. They take tremendous ownership and pride in the Walmart Store or Distribution Center where they work. But why? It’s not one thing it’s many things. It’s promotional opportunities and emphasis on teams. It’s managers who care and fellow employees who are like a Walmart family. It’s average people being given the opportunity few companies in America would ever offer to them. In the process, the Associates are motivated to achieve at above average levels of performance. Sam Walton admitted he was just an ordinary man who accomplished the truly extraordinary by working hard, maintaining the focus on his vision, and by inspiring the people around him to share his dream.
Sam Walton realized that people are Walmart’s most important asset. He understood that by treating them as partners and empowering them to serve the customers he was unleashing a powerful business catalyst called ownership. Sam Walton was ahead of his time. He believed in the benefits of empowerment, continuous improvement, and ownership years before those concepts became the hottest program du jour, touted by business consultants around the world.