June 11, 2015
Retail CEOs among the best
Glassdoor, the online career site where employees rate their employers, has just released its 2015 Highest Rated CEOs list, and retail executives figure prominently.
Charles C. Butt, CEO of H-E-B, got the highest rating among chief executives at large retail companies with 96 percent approving of his performance. Eight-six percent responding to Glassdoor said they would recommend working at the company to a friend.
Following Mr. Butt on the list were:
- Craig Jelinek, CEO of Costco, with a 93 percent approval rating
- Calvin McDonald, Sephora: 93 percent approve
- Mickey Drexler, J. Crew: 91 percent approve
- Danny Wegman, Wegmans: 91 percent approve
- Blake Nordstrom, Nordstrom: 91 percent approve
- Howard Schultz, Starbucks: 91 percent approve
- Thomas Richards, CDW: 91 percent approve
Source: Glassdoor
Others making the list that include a retail component, albeit not being the major focus of their business, were Apple’s Tim Cook with a 94 percent approval rating, A.G. Lafley at Procter & Gamble at 92 percent, and Disney’s Bob Iger with 90 percent approving.
Discussion Questions
What makes a great retail CEO? Do you see any commonalities among the executives on the Glassdoor list?
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One common thread is the number of CEO’s who are “homegrown.” They are either family members (Wegman, Butt, Nordstrom) or founders (Schultz) or longtime employees themselves (Jelinek, Cook, Iger). These are people who have been immersed in each company’s culture, have a sense of “ownership” and in some cases have their names on the door.
This isn’t to suggest that companies always should look inward for their senior management, and there are other names on the list who earned their stripes elsewhere. (Although Mickey Drexler’s reputation is under a cloud right now.) And “great” — as rated by one’s employees — may not always translate into great results from a shareholder’s perspective. But it’s a telling argument for the importance of company culture in the overall success of a retail business.
In a word — vision. In another word — execution.
These CEOs have both qualities in spades. Unlike many of their peers they dare to be different, innovate and, yes, fail.
In other words, leaders lead.
Definitely having a vision is key. Honoring the employees who help you execute that vision is a second important trait. And listening to all constituents from customers to employees is the third.
One thing these folks seem to also have in common is they don’t jump every time Wall Street flinches. They follow their vision.
Vision and entrepreneurship are key when it comes to “great” leaders. I am not sure how to define great, but OK, I will use it in the sense it is intended for this response. An entrepreneur having a vision recruits like-minded people for a startup. Certainly things change over time and growth. But it is these two qualities that get the engines started. An example from the recent past is Wayne Huizenga during the early days of Blockbuster. Another example is Kip Tindell and Garrett Boone, co-founders of The Container Store.
What I like about the seven CEOs called out in the bullet points above is that it’s very easy to state each one of the retail brands’ positioning in the marketplace. Distinctive brands led by distinctive leaders who are working hard to deliver to their customer segments. Basic formula for success but hard to deliver in a tightly-focused way over a long time frame.
A great CEO carries and instills vision, passion and ownership (being part of a team) for the entire company. Takes calculated risks to pivot the company with the changing economic, technological and cultural landscape.
I’ll sum it up in two, two-word statements:
Retail is about people. It is a front-line focused industry. The best leaders know that what is happening on the inside of an organization is felt by customers on the outside. So they know to treat their employees well, as the culture they create internally will impact the customer.
Innovation. Intelligent risk taking. Collaborative spirit. Great characteristics for ANY corporate leader!
A great CEO is a person who really recognizes and interacts with associates. These great CEOs are all store walkers. They visit a huge number of stores each year and walk the floor, chat with and surprise the associates. It is what makes them great.
The other element is that they are “Retail Lifers” and have been in or dedicated to the business for most of their lives.
Customer-centric strategies that are future-oriented appear to be a common thread. Looking at trends, experimenting with technology, and testing new ideas—all with the consumer in mind—describes what these CEOs challenge their company to do. This is a great process to emulate, especially because it should not result in me-too strategies.