Lead With Culture

Technology and data get a lot of focus as companies work to integrate them into day-to-day operations. But our fixation on digital assets makes it easy to overlook the value of people in delivering an exceptional customer experience.

In 1987 I heard Bruce Nordstrom, the retailer's Chairman at the time, tell a story that merits repeating today. He described watching security cameras in the downtown Seattle store following people pretending to shop. Their real purpose was to count and measure everything in sight: garments, brand mix, price points, fixtures, the spacing between fixtures, and salespeople.

The Nordstrom team knew that the people 'shoplifting' the store layout were competitors. But they let their competitors write down every detail.

Why would they stand by and watch the competition note everything in sight?

Mr. Nordstrom explained that competitors believed that store layout was the key to its success. By measuring furniture, fixtures, and merchandising, the competition missed what mattered. The belief that “hard data” was the key to Nordstrom’s success at the time blinded them to the real answer. They overlooked the company’s culture.

What was so different about Nordstrom’s culture?

He pointed out that retail is a service business. And everyone at Nordstrom started out by selling shoes. Which meant that everyone “had been down on one knee in front of customers.” That posture created an attitude and ingrained a customer service culture throughout the company.

Using the latest digital tools is a transformational lever for retail — and for all businesses. Companies that integrate technology into operations will have competitive advantages. But a service culture is unbeatable.

Neglecting technology is dangerous. Neglecting culture is deadly.