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How Can Morale Be So Good in Some Large Businesses?

Once upon a time, perhaps up to a decade ago, Walmart was a winner. You could feel something amongst its employees. But how would you ever have proved it was real instead of subjective and impressionistic? But I was convinced of an elan vital amongst all those low-wage employees in that giant corporation. But in the middle Aughts, it seemed that spirit started draining out of Walmart.

Today I went to Walmart for a routine oil and lube job. There were no long lines, which was a pleasant surprise. Or was it? The first thing they started doing was fumbling with those handheld gadgets that supposedly "manage information" about your rig: real rocket science stuff, like your name, address, and odometer reading. I've yet to see one of their employees use these gadgets without struggle and delay.  No doubt these handheld gadgets were sold as "productivity enhancers" by some executive in the I.T. (information technology) department, back at corporate headquarters.

The next thing they told me was that my tires were worn on one side and they weren't willing to rotate them. Furthermore 'I was to blame,' and so the tire company  wouldn't cough up some money for not living up to the guaranteed mileage. That argument was perhaps correct for two out of the four tires in question. In any case, it was asserted so quickly and aggressively that I became suspicious. 

Inside the store I was asked to sign too many legal disclaimers, avowing that I had been warned by Walmart that I needed a couple new tires.

(I had a flashback at what happened when I bought these lousy tires at Walmart a couple years ago. The employees seemed like real losers. When I got home I popped off the hubcaps and found that 2 nuts out of 8 had not been tightened.)

Hmm, what should I do? It had been years since I bought tires at one of Walmart's competitors. I drove over to Big O Tires. They showed a completely different attitude. The employee who grabbed me at the door did everything: helped me select a tire, gave me a sale price, helped me park in a rather crowded parking lot, and did the installation without making me unhitch the trailer! You know, air-wrenches and floor jacks!  He even finished up with the typical computerized cash register fumble, without handing it off to another employee. 

I was amazed that one employee "owned" me through the entire process. Typically the customer talks to a "customer's man" at the front desk. The guy typically know little about anything automotive or mechanical, but he dresses in cleaner clothes, speaks college-boy English, and is a little more personable. (Or thinks he is.)

The customer might have a pertinent piece of information: the symptom occurs after X, but not Y. Do you think any of that is going to be passed to the guy who actually repairs your car? I once had a repair job become a nightmare because of a poor information-hand-off like this.

The employee at the Big O Tire then helped me learn about a possible upgrade to my trailer tires. Once again, he immediately jumped in with a can-do spirit, infused with experience and skill.

So how would you analyze this company? Would you really learn anything by looking at a financial spreadsheet, subtracting column C from B, and then dividing by column R, ad infinitum? Even if you came up with the perfect formula, have you really explained anything? Can it predict anything? It seems to me that spreadsheet arithmetic merely confirms the Effect, without elucidating the Cause.

We live in an age when something must be scientific to be intellectually respectable. And to look scientific, it must be mathematical, or at least, numerical, countable, measurable. But what if the Cause of a company's success is about cultural values in the corporation? How do you measure or quantify those?

Comments

TomInBellaVista said…
What I understand to be the corporate culture of Costco, "look after the employees, who will in turn look after the business" seems to bear out when I could shop at Costco and Samsclub. The difference in employee attitude smacks you in the face as you enter the store. Now I live 8 miles from Walmart's corporate headquarters with no Costco for 200 miles. My Samsclub is within walking distance of Samsclub corporate offices, has lots of Suits wandering around "tweaking" I suppose, and should be a stellar example of the Walmart experience, but it's dull and no worker there inspires me. My other observation is that Sam Walton's greeters no longer greet. I'm not sure what they do, except maybe watch for shoplifters.
John V said…
I think you were asking too much of Walmart's limited business plan capabilities. They excel at providing certain manufactured products at the lowest prices (some pharmacy products, industrial lubricants/chemicals, sometimes local produce, etc.). providing anything more than a minimal level of specialized customer service is beyond their model. No business can do it all. We stick to Walmart for cheap commodity products (those not made in China) and nothing more. Costco is for gormet or certain high end products at the cheapest prices. Most of the big retailers are good at doing at least one thing. Some can do a few things really well. All of them do at least one thing (usually more) very poorly. It's up to us consumers to figure out what these are.

PS - We've had some bad experiences with Big O (in Yuma and Napa) and will probably try Les Schwab next.
I don't disagree with what you have said, but how do you explain the positive "elan" at Walmart prior to about 2005 or so. They were still plenty big for decades before that, and their business model did not suddenly change.

Yes I might have made a mistake in generalizing my experience at the Richfield UT Big O Tire into an undeserved corporate-wide praise. Time will tell.
I read the "About Us" tab at the top of the Big O Tire website. They are now owned by Sumitomo of Japan. The blurb wasn't clear about what fraction of the stores are independently owned versus corporate-owned-managed.

Perhaps my positive experience at the Richfield UT store implies that it was independently owned.

When corporations have a mixture of independently-owned and corporate-owned, it sure would be nice for travelers if some "app" told us which was which. Then we could adjust our purchases accordingly.
Maybe your theory is right about the non-greeting greeters at Walmart. I always wondered what they were for. Occasionally they look so useless and bored that I ask them where something is. They just give me a blank stare.

What you said about Costco might be true for all I know. I never saw many employees there except at the check-out lines, where they usually had too few of them.
Anonymous said…
Have you been playing "Richard Petty's NASCAR Experience" with your tow vehicle again? Seriously, Walmart has so gutted their personnel headcount that service, if you can hunt it down, is almost depressing. I bought trailer tires awhile back at an independent tire dealer in Wickenburg AZ, and then queried some tires for the truck a year later. When I fixed on a brand and model, I researched prices at the nearest Walmart and a Big-O in town, which were identical to each other. I then went to the indy and asked for a price, and his price was substantially lower on a set of four. Done deal. But the service was again outstanding, and they insist on using "real" brass valves. I think Big-O is, as many franchises are, as good as the one you're at. If it's good, that's where you return to if you have a choice. The one the next town over may be just as good, or it may stink. As with many businesses, though the franchases may try to establish a uniformity, it all comes down to the outlook and practices of the local owner. Some reek, and some shine. Some depress, and some inspire. I'm usually alarmed when I find that some of the very best places I've dealt with have closed their doors. It's tough to do an admirable style of business, only to find that you just can't compete with better marketing.
Agreed, about the variations from one franchise to the next. Perhaps I need to do a better job of keeping track of individual success stories, and try to give my business to them, even if it means buying a little in advance.