Progressive Grocer - August/September 2009 - (Page 48)

Grocery List Perspectives What makes great grocers stand out from the pack Wegmans’ business model has something in common with all best-practice companies: a dedication to simplicity. Leadership is the third “half” representing the glue that ensures the business model and the culture reinforce each other. Wegmans Food Markets: How Two Halves Make More Than a Whole By Joe Wheeler Although much has been written about Wegmans’ people-focused culture, the truth is that it’s just half the story. retain top talent? On a recent store visit, I had the chance to interview one of the store’s pastry chefs, who had formerly worked at a local top-rated restaurant.“With your qualifications, you could easily make far more money back in the restaurant business, so why do you work at Wegmans?” I asked. He smiled and with a shrug replied: “Are you kidding? All my old friends from there want to come and work here. We are doing much more creative work than I ever did in the restaurant game.” One last observation about Wegmans’ business model has to do with something that we see in all best-practice companies: a dedication to simplicity. It not only serves as an antidote to unneeded bureaucracy and process inefficiency, it also ensures a clear focus on the things that matter most. Mary Ellen Burris, Wegmans’ head of communications, elaborates: “Danny would talk to us about Focus, Finish and Celebrate. And those words have reverberated to this day as enabling you to say ‘no’ to things that would distract us from our priorities.” Culture egmans’ brand promise is “to make great meals easy,” and every step in its customer experience contributes to delivering on this promise. To begin with, Wegmans’ staffing model is significantly higher than competitors, and its training commitment to employees tops the industry. Only at Wegmans, for instance, can you encounter a “cooking coach” who will provide advice and product recommendations to make you a hero at next weekend’s barbecue party. Wegmans’ employees are central to the consistent execution of its business model. CEO Danny Wegman summarizes why: “We look at our business as how do we serve our customers best, and the way we believe we can serve our customers best is by just being the very best place to work that we can be. And if we do those two things, then we’ll make a profit at the end.” From recruitment through to retirement, Wegmans takes whom it hires and how they are trained, recognized and rewarded very seriously. For example, among many employee initiatives that make the company unique is its employee scholarship program. Part-time employees can receive up to $1,500 a year for four years, while full-timers are eligible to receive a maximum $2,200 a year for four years. To be eligible, associates have to work a minimum number of hours over a specified period of time and must have both good grades in school and a good work record. Although recipients can select any educational and career path, many have gone on to work at Wegmans after college graduation. Does such a focus on people really attract and 48 • Progressive Grocer • August/September 2009 W dards, making a difference in the community and empowerment become shared values — the key to turning a saying on a poster into behavior that employees demonstrate every day in their interactions with each other and with customers. Leadership Working in sync with its business model is the Wegmans culture. Think of it as the “respiratory system” for the whole body that breathes life into how Wegmans operates. It begins with values. Wegmans’ orientation program, “Living Who We Are,” instills its values and explains the importance of bringing them to work every day. Six weeks before a new store opens, new hires participate in the daylong program, which is videotaped each step of the way. When new employees leave for home, they receive edited DVDs set to music to show their families. Danny and president Colleen Wegman teach part of the program, along with Jack DePeters (SVP of operations) and other Wegmans managers. As a result, Wegmans’ values of caring, respect, high stanA H E A D O F W H AT ’ S N E X T There’s a third “half ” that represents the glue that ensures the business model and the culture reinforce each other: the actions of leaders. DePeters told me a story that exemplifies this type of leadership. Many years ago, the late Robert Wegman wanted to change the display of cold cuts through a merchandizing program. One store he visited was struggling to meet his expectations. After he left, a meat department employee approached the store manager with an idea for a display. The store manager encouraged her to change it. This employee had been having some financial problems, which resulted in her heat being cut off, and when the store manager found out, he arranged to have it turned back on. Later, Wegman was in the store and saw the new meat display, which was exactly what he wanted. When he was introduced to the employee who made the changes, all he said to her was, “Nice job. Now we’re even,” and he walked off. Notes DePeters, “That to me is what we’re about.” Joe Wheeler is the executive director of the Service Profit Chain Institute, a consulting firm that helps organizations achieve dramatic business results by implementing service-profit chain concepts. He recently co-authored “The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable Competitive Advantage” with James L. Heskett and Earl Sasser, both Baker Foundation professors at Harvard Business School. www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - August/September 2009

Progressive Grocer - August/September 2009
Contents
Nielsen’s Shelf Stoppers/Spotlight: Alcoholic Beverages/Light Beer
CES: Inside the Market Basket: Economical Choices Bring Grocery Gains
Lempert Report: Earth-Friendly Isn’t Everything
Store of the Month: Kosher Country
Executive Insights: A View From Tops
Independents Report: Become a Leader Your Associates Will Follow
Perspectives:Wegmans Food Markets: How Two Halves Make More Than a Whole
Independent Thinking: N.G.A. Annual Independent Grocers Survey: Cream of the Crop
Fall Promotions: Tailgating Takes Over
Proteins: Meaty Alternatives
Fresh Developments: PG Looks at the Latest News From the Perimeter
Beverage Alcohol: Keeping the Aisle Afloat
Culinary Oils: Oil Can
Frozen Desserts: Frozen Desserts Heat up
Family Planning: Up Front With Family Planning
Vitamins and Supplements: Healthy Sales With a Capital ‘D’
Pharmacy: Dealing With Diabetes
What’s Next: Editors’ Picks for Innovative Products
Equipment: Lasting Impressions: The Shopper’s Perspective

Progressive Grocer - August/September 2009