Walton's 10 Rules of Business Success - Rule 2 - Share Your Profits
When we talk about Sam Walton and his common sense approach to management, one thing to consider is that a huge amount of companies copied what he did, to the point where it is considered everyday practice in modern business. But when he did it, it was radical at the time and offered huge benefits to the workers.
This is an example of the second rule that Walton offered as a reason for Wal-Mart's (WMT) great success. He said: "Share your profits with all your associates, and treat then as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations."
Walton had said more than one time that he had never set out to create the type of company that Wal-Mart had become, rather the said he wanted it to be the best. When he took the steps that he took, it ensured that the people he had working with him would give them their best, and they did.
I know of a number of people at Wal-Mart that are regular workers but faithfully put away the share of the profit offered by the company and amassed a huge amount of money for their retirements. Something not that many businesses can boast. The reason why is that everybody can offer incentives, but the company and the way Walton treated his workers enabled them to even benefit greater as the company grew and the stock surged to the delight of all those that partook in the plan.
Still even today there are a lot of small businesses that don't reward workers for short-term or long-term results. The consequences are that they don't give their best to the company or leaders, feeling that they aren't being recognized for their successes and efforts.
Walton understood that and rewarded his people with stock in the company, when if held, would make them small fortunes. It continues to this day.
Other Sam Walton Sources:
Sam Walton: 10 Rules for Building a Successful Business
Sam Walton - Retail Success Story
Sam Walton: King Of The Discounters
Sam Walton: Great From the Start
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