The life cycles of CEOs blasted as a tragedy

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SODERQUIST: It grieves me when chains have to go on the outside to find a new CEO.

The former vice chairman and COO of Wal-Mart USA has launched a blistering attack on the failure of some of the region's retailers to maximise human resources.

On his recent visit to Dubai, Don Soderquist urged industry chiefs to capitalise on and invest in internal talent at their stores in the Middle East.

"We haven't always attracted the best people from universities worldwide, yet more and more people are now turning to retail. It grieves me when chains have to go on the outside to find a new CEO; why don't we grow our own?" he blasted.

Soderquist advised supermarket operators to avoid limiting their perceptions of leadership to titles and wealth, and strive to "help people accomplish more than they could ever have imagined. Why don't we invest in our own people? That's what the job of a leader is. We should motivate and encourage people to get the job done."

He deemed the short life cycles of chief executives as "a tragedy" and encouraged retailers to pursue Wal-Mart founder Sam Walton's strategy of "shared vision, values, expectations and purposes."

"The vision was not become the wealthiest person in the world behind the biggest company, which he became, but to rather to reduce the cost of living and improve the standard of living for customers."

Transparency will result in relationships based on trust with employees and in turn customer service excellence.

"Every quarter when we released our earnings to the media, we met with staff on the same day. We shared with our people how the company was doing. Since we first went public in 1970, we've never had a year when profits when down," he revealed.

He recommended that companies adopt open door policies, permitting access to managers "right up the ladder" for staff wishing to discuss any issues.

To stand out in a crowded market, retailers should "treat customers better than anyone else has treated them".

Wal-Mart's concerted efforts to treat the retail industry as "a team sport" and "dedication to its people" incorporated calling all associates by their first names in a bid to create an atmosphere of equality.

"You better treat your people right or they won't treat your customers any better than they are treated. Hire happy people who will spread that attitude inside your organisation."

Soderquist, the driving force behind the 'pile 'em high, sell 'em cheap' philosophy, told regional companies considering global expansion to "make sure your home base is solid as a rock first and don't change your core values."

Founded in 1962, Wal-Mart is the world's largest public corporation by revenue, according to the Fortune Global 500.

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