On display in Las Vegas: the Walmart way

LAS VEGAS In a keynote presentation that can be described as part leadership seminar, part pep-session and part homage to Sam Walton, former Wal-Mart Stores vice chairman Don Soderquist made the case for an ethically advanced corporate culture.

Soderquist, who joined Wal-Mart Stores in 1980 and participated in a dramatic period of retail growth with the world's largest retailer, delivered the National Hardware Show keynote presentation titled: "Ethical Leadership; Imagine the Possible; The Impact of Culture on Success."

"I just love retailing," he said. "I still do."

Speaking at the North American Hardware Association (NRHA) Village Stage here at the show, Soderquist described leadership as a journey, and he passionately pointed to some of the key concepts that guided Wal-Mart Stores to its position as the world's largest retailer.

One of those keys is a culture based on values. And this is a concept that other businesses would be wise to adopt, he said. Through a show of hands, his audience of hardware show attendees supported his premise that people generally think business ethics are deteriorating.

He pointed to a McKinsey & Co. statistic from 2009 that showed only 8% of business executives considered the ability to "Foster a shared understanding of values," as among the most important for managing corporate performance. Creating such understanding of values, in fact, ranked last in the study, helping to explain the general perception of business ethics, he said.

Prior to joining Wal-Mart Stores, Soderquist was with Ben Franklin for 16 years, including six years as president and CEO. In 1990, he received the Outstanding Business Leader Award from the Northwood Institute in Palm Beach, Fla. Also, the Soderquist Center for Business Leadership and Ethics at John Brown University is named in his honor.

He talked about Wal-Mart Stores' colossal sales growth -- from annual sales of $44 million in 1972 to more than $408 billion today.

Soderquist's final slide was titled: "How did we do it?" and it offered the following cultural keys:

• A vision that was more than financial;• A culture based on our values;• An enthusiastic "winning" attitude;• A genuine respect for our people;• A dedication to teamwork;• A commitment to communication;• A focus on customer satisfaction;• A partnership relationship with suppliers;• A continuing strategic emphasis; and• A proactive approach to change;

"One of the most important things for leaders to do is to communicate clearly," he said.

Soderquist told the audience that Walton encouraged everyone in the company to think big. He presented a slide with a quote from the company founder: "I had no vision of the scope of what I would start. But I had confidence that as long as we did our work well and were good to our associates and customers, there would be no limit to us."

Another Walmart culture point was the company emphasis on making the most of industry events and trade shows -- "Pay for the trip by what you learned at the show." And he urged retailers to spend time on the exhibit floor with exhibitors, instead of going off in different pursuits.