In The News
Fortune magazine recently came out with
its annual report on “The 100 Best Companies To Work For” (January
24, 2005). According to their eight annual survey, the family-run
grocer Wegmans is the best company to work for in the United
States. I find this of particular interest for several reasons.
First, Wegmans is a family owned business, as are many of my
clients. In fact, many of the top vote-getters in Fortune’s
list were privately-held companies. Second, because they are
not just a great company to work for. Wegmans is highly profitable
in an industry that has seen several of the big players struggling.
According to the Fortune Article, Wegmans
(an 89-year-old Rochester-based chain) is loved by its employees
and customers
alike. And, in the words of the article’s author, they
are “trouncing its competitors in a very tough industry.” Here
are a few of the highlights that explain why they are doing
so well:
- Employee benefits: profit sharing, fully funded
medical coverage, and higher pay for the average part-time
worker.
- A well-defined long-term strategy (more on this later in the
article).
- True employee empowerment. To quote
the article, “The
company thinks nothing of sending, say, cheese manager Terri
Zodarecky on a ten-day sojourn to cheese makers in London,
Paris, and Italy.” Employees have quite a bit to
say about the operation of their departments.
- Support for long-term service. While many employers focus on
short-term profits over long-term service, Wegmans delivers
short term profits because they encourage people to stay
with the company for many years.
- Hiring people who fit in. One reason for their success is hiring
people who genuinely have a passion for food and are passionate
about customer service. No customer is allowed to leave
the store unhappy, for any reason.
One of the key reasons for Wegmans’ success is a culture
that emphasizes a cohesive long-term strategy. As with any
company, the culture flows from the top, and when they open
a new store, they do it methodically so that they can ensure
the new store is infused with the Wegmans culture and ethos.
Their business strategy and employment strategy are closely
intertwined. I find this facet particularly interesting because
it is a significant component of what I teach my clients. That
is, they recognize the impact of their genetic code, and make
sure that any business models or strategies they use fit their
genetic code, and they adjust their genetic code (employment
strategy) to fit their business model.
Although the article did not disclose figures
that would tell us Wegmans’ Assets Velocity, I suspect
that it is significantly higher than the rest of their industry.
Having employees who
are passionate about their work, and customers who will go
out of their way to shop at a Wegmans store will always result
in a profitable venture.
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Warmly,
Carlos Dias
Carlos@carlosdias.com
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