by Michael Sansolo
It’s long been said that generals make the mistake of fighting the last war, using tactics that frequently are outdated thanks to changes in technology, strategy and more. It also is a pretty common criticism in business, where leaders far too often fight new competitive battles using outdated strategies and tactics.
Which is something Walmart seems to be going out of its way to avoid, as it takes a big step toward fighting the next war and new challenges in a way that will never show up in any of its stores but might make for a gigantic advantage moving forward.
The retail behemoth, which has pivoted dramatically in recent years to omnichannel operations and what it likes to call “adaptive retail,” recently opened its new campus in Bentonville and a glowing review in the New York Times demonstrates just what a quantum leap it may be.
What makes the new campus so special goes well beyond the architecture and dramatic layout of the grounds and buildings.
For decades Walmart (and pretty much every other retailer and wholesaler) viewed corporate headquarters as overhead. The smartest retailers – I’m thinking of the iconic Superquinn in Ireland as the best example – would define those headquarters as “support offices,” understanding that the real business takes place in the stores. (Not everybody realizes that, unfortunately.)
In Walmart’s case, its offices were a reflection of its spartan culture. Cheap furniture, spare lighting, and little apparent investment in design or decor.
But in the new world of omnichannel retailing and competition from Silicon Valley, the rules are changing and, as the Times reports, that’s the motivation behind the dramatic new look at Walmart. As one former executive explained to the Times, Walmart is now competing for talent against Google and Amazon. The workers to whom Walmart wants to appeal won’t see the attraction of working in an old distribution center. It knows that to attract the necessary talent for the new day requires a new approach. And based on the company’s incredible success so far in building its e-commerce model, it’s clear that Walmart has its eyes set on a new frontier.
Many MNB readers might dismiss the importance of this new campus, finding no relevance to the challenges they face today, but I’d argue that’s a mistake. Competition for labor is constantly shifting, and more than ever traditional retailers are competing for workers with the likes of Amazon, Door Dash, Uber and many more who offer a vastly different work experience. And that requires new approaches to recruiting and managing.
(Recent studies by the Coca-Cola Retailing Research Councils for supermarkets and convenience stores examined these challenges. Those reports can be downloaded here – although the site is currently off-line until mid-July.)The new landscape means it’s critical that employers rethink who and how they staff in much the same way they evolve for new competition for customers. And in that light, it’s clear that Walmart is taking a gigantic step in the right direction.
Here at MNB we’re fond of quoting the memorable line—“You’re gonna need a bigger boat”—from the movie “Jaws,” which happens when the protagonists realize what they are up against and how badly they’ve underestimated what they need to survive.
It’s fair to say that Walmart is building a bigger boat, one capable if winning the next war.
Michael Sansolo can be reached via email at [email protected].
His book, “THE BIG PICTURE: Essential Business Lessons From The Movies,” co-authored with Kevin Coupe, is available here.
And, his book “Business Rules!” is available from Amazon here.
The post Sansolo Speaks: Walmart Fights the Next (Land) War appeared first on MNB.
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