Power to the people

Co-hosting a retail dinner last night with Oracle, it was fascinating that much of the discussion focussed around the importance of people, morale and service. For the assembled retail executives, there was of course an acceptance of the current tough trading environment. Some retailers in the value sector of fashion were even, quietly, admitting that they were actually trading very well at the moment. But what they said they were now openly focussing on was what the effect of many months of cost-cutting, tougher management and the recession were having on their teams at all levels of the business.

The discussion around people was doubly interesting because but a few days earlier, speaking in New York, Lee Scott the former CEO of Wal-Mart and now chairman of its Executive Committee, revealed that one of his greatest regrets from his time running the world’s biggest retailer was that he felt he didn’t do enough to promote the importance of retail jobs. “One place I would have liked to have done more is helping people understand that Wal-Mart jobs, retail jobs in general, are good jobs,” he was quoted as saying by Reuters.

It has of course been a constant theme for many retailers who feel that retail jobs simply aren’t taken seriously enough despite the sheer number of people employed by the retail sector in most national economies. What the retailers at the Oracle industry dinner were focussing on was what they, as executives, need to have at the front of minds to help those they employ in their own businesses. It is very much a time for leadership at all levels to give people that sense of direction and reassurance they need. Fear for their jobs and livelihoods is a motivator only for so long it was generally agreed.

What many talked about was how to lighten the mood, improve morale through having more “fun”. Incentives have to remain important it was felt. And then there was a strong belief that in these difficult times, devolving power and responsibility further down the business - giving store teams the ability to make decisions on where to spend or where not to spend money in their department, can have a powerful effect. One retailer talked about it helping create an entrepreneurial spirit within the business and invigorated employees.

Each business will have its own ideas based on their culture and DNA and will know what works for them. The point is that it is absolutely right that this focus on people rises up management’s agenda. People who are happy, content, focussed and well-led will in turn deliver not just sales, but that all important service which customers notice and makes them keep coming back.