He shared total financial information with everyone in every store, in every community. Sam felt we were all partners, and he wanted to share everything.
The thought of being in the "inner circle" of any organization is very tempting and desirable for a lot of people; it gives the idea of superiority or having made it.
In truth though, there is only one purpose for any type of group of people within a business, and that is simply to communicate accurately and effectively where things are in the company, and from there spread it throughout the organiztaion.
In the past, and even today, some of those who have received information like to hold it, to be in what they perceive as a position of power, and of being special. That may be gratifying to the ego, but it is devastating to a business.
Sam Walton never operated that way at Wal-Mart. He opened up just about everything going on in the company to everyone, everywhere and at every store.
Even all the financial information was laid out for everyone to see. There's something about this that speaks to trust and respect. It spurred the associates in the company to do the same with their thoughts and ideas that could bring improvement. It was a great practice that helped to make Wal-Mart (WMT) what it is today.
Any business should be the sum total of all the parts. Walton knew that with those that worked at Wal-Mart, and in response, he shared openly everything about the company and held nothing back to his people. The result was an open business culture that thrived and encouraged partipation from everyone to make the company always better. It worked!
Other Walton Sources:
The Most Underrated CEO Ever The legendary Sam Walton
Sam Walton: The Power of Persistence
Sam Walton Business Quotes for Ya
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