SUCCESSFUL LEADER Sam Walton Founder of Wal-Mart

Outline Sam’s Profile Sam’s Profile What was his success? What was his success? Sam’s personal attributes Sam’s personal attributes Sam’s leadership style/approach Sam’s leadership style/approach Situational circumstances Situational circumstances What we have learnt What we have learnt

Sam’s Profile Founder of Wal-Mart, the world's largest merchant empire Founder of Wal-Mart, the world's largest merchant empire “Walton has transformed retailing the way Henry Ford revolutionarized transportation.” “Walton has transformed retailing the way Henry Ford revolutionarized transportation.”

The Wal-Mart Story “We're all working together; that's the secret. And we'll lower the cost of living for everyone, not just in America, but we'll give the world an opportunity to see what it's like to save and have a better lifestyle, a better life for all. We're proud of what we've accomplished; we've just begun." “We're all working together; that's the secret. And we'll lower the cost of living for everyone, not just in America, but we'll give the world an opportunity to see what it's like to save and have a better lifestyle, a better life for all. We're proud of what we've accomplished; we've just begun."

What was Sam’s success? Walt-Mart is one of the world’s largest corporations of any kind with shops in America, Asia and Europe Walt-Mart is one of the world’s largest corporations of any kind with shops in America, Asia and Europe

Secret of success: offering a wide range of goods at a very low price offering a wide range of goods at a very low price keeping his store centrally located in order to attract many customer keeping his store centrally located in order to attract many customer Longer business hours than others Longer business hours than others Sam searched around in other people's stores for good manager talents Sam searched around in other people's stores for good manager talents

Personal Attributes Hard worker, energetic and stress tolerant: > He started his own business from almost nothing > He was always trying to get the most out of money Hard worker, energetic and stress tolerant: > He started his own business from almost nothing > He was always trying to get the most out of money

…continued He took chances and never said never: > He never stopped looking for cheaper and better ways of doing business > He was always trying to improve the business He took chances and never said never: > He never stopped looking for cheaper and better ways of doing business > He was always trying to improve the business

…continued He spread his way of thinking: > He believed: “If you try to give every day your best, you do your work with love and passion, pretty soon every body around you will catch this passion.” He spread his way of thinking: > He believed: “If you try to give every day your best, you do your work with love and passion, pretty soon every body around you will catch this passion.”

…continued self-confidence: > he was well aware of his power and he cultivated it > he set himself challenging objectives self-confidence: > he was well aware of his power and he cultivated it > he set himself challenging objectives

…continued Employees were partners and not subordinates: >he listened to his employees >he was reachable for them also at home >he offered them a percentage of the store's profits and the possibility to become limited partners Employees were partners and not subordinates: >he listened to his employees >he was reachable for them also at home >he offered them a percentage of the store's profits and the possibility to become limited partners

Sam’s leadership style/approach Mix of participative and autocratic leader Mix of participative and autocratic leader Hand-on manager and arm’s length type Hand-on manager and arm’s length type Task oriented behaviors: > planning, coordinating, organizing Relation oriented Behavior > communicating, developing, rewarding Task oriented behaviors: > planning, coordinating, organizing Relation oriented Behavior > communicating, developing, rewarding

P articipative Leader Local stores can decide on their own on what to stock to suit customers’ needs Local stores can decide on their own on what to stock to suit customers’ needs He talk to the associates to find out how the stores were doing and pay visit to the ones who were not doing very well He talk to the associates to find out how the stores were doing and pay visit to the ones who were not doing very well representative of associates are invited to the annual meeting representative of associates are invited to the annual meeting

Autocratic Leader To ensure success he made also autocratic decisions e.g. Saturday work is part of the commitment when it comes to a career in retail working on Saturday To ensure success he made also autocratic decisions e.g. Saturday work is part of the commitment when it comes to a career in retail working on Saturday

Task oriented behaviors: planning, coordinating, organizing He established a network between the Wal-Mart stores in order to get an cost advantage He established a network between the Wal-Mart stores in order to get an cost advantage

Relation oriented Behavior: communicating, developing, rewarding Communicating: he informed the associates about company’s data information sharing helps associates to implement strategies accordingly

Developing Sam asked for the associates’ feedback to encourage development in business. Thereby also associates were able to improve their skill. Sam asked for the associates’ feedback to encourage development in business. Thereby also associates were able to improve their skill.

Rewarding Sam rewarded the good performance of his associates and encouraged others to improve. Sam rewarded the good performance of his associates and encouraged others to improve. So they could learn and improve So they could learn and improve

Situational circumstances Sam developed a new idea of retailing Sam developed a new idea of retailing Traditional retailer feared to loose the control over their market Traditional retailer feared to loose the control over their market

1. Sam’s measures Good cost management is necessary to achieve objectives Good cost management is necessary to achieve objectives series of reform in motivating employees and in the compensation system series of reform in motivating employees and in the compensation system created a partnership with his employees created a partnership with his employees profit sharing, incentive bonuses, discount stock purchase plan profit sharing, incentive bonuses, discount stock purchase plan

Arguments for Sam’s continued success as a leader Passion and enthusiasm e.g. he was always searching for new ideas and possibilities to improve business and relation to his associates Passion and enthusiasm e.g. he was always searching for new ideas and possibilities to improve business and relation to his associates Sam tried to combine tasks and relations > he wanted to offer customers a wide range of product at low price >he encourage teamwork Sam tried to combine tasks and relations > he wanted to offer customers a wide range of product at low price >he encourage teamwork

…continued He created the Walt-Mart culture e.g. Walt-Mart cheer: He created the Walt-Mart culture e.g. Walt-Mart cheer: It goes like this: Give me a W! "W!" Give me an A! "A!" Give me an L! "L!" Give me a squiggly (shake hips)! "Squiggly! (Shake hips)" Give me an M! "M!" Give me an A! "A!" Give me an R! "R!" Give me a T! "T!" Who's number one? "The CUSTOMER!" It goes like this: Give me a W! "W!" Give me an A! "A!" Give me an L! "L!" Give me a squiggly (shake hips)! "Squiggly! (Shake hips)" Give me an M! "M!" Give me an A! "A!" Give me an R! "R!" Give me a T! "T!" Who's number one? "The CUSTOMER!"

What we have learned Factors to successful personal leadership development Personality Personality Knowledge and experience Knowledge and experience

1. Personality Hard work leads to success Hard work leads to success Interpersonal skills: respect and understanding for others leads to a good climate and improves working performance Interpersonal skills: respect and understanding for others leads to a good climate and improves working performance Risk taking is necessary for invention and development Risk taking is necessary for invention and development

2. Knowledge and experience Knowledge about the business is the basis of success but a lot comes from learning by doing Knowledge about the business is the basis of success but a lot comes from learning by doing Learning from experience can avoid new mistakes e.g. particularly crisis situation have a huge learning impact Learning from experience can avoid new mistakes e.g. particularly crisis situation have a huge learning impact

3. Strengths and weaknesses Be aware with your strengths and weaknesses Be aware with your strengths and weaknesses Use your strengths appropriately Use your strengths appropriately Ask for help in case of weaknesses e.g. hire experts to complement your weaknesses Ask for help in case of weaknesses e.g. hire experts to complement your weaknesses

Conclusion Sam Walton was a successful leader and his leadership style is a severe template for other leaders. But every leader has to analyze the situation, incorporate the organizational culture and adjust the leadership style.

Group 4 Evelyn Hofer Phoebe Hon