Walmart clearly meets stage 1 of Jim Collins’ lecture. They believe they can do anything (stage 1); they are so good they can do anything (stage 2). They look great from the outside, but they are not. They deny the risks they took in earlier times (states 3). In the fourth stage, the company falls. Everything catches up, and the company grabs frantically at everything rather than sing discipline and care (Collins).On may suspect that Walmart is into stage four, based on their incredible adoption of the multipurpose slogan. As Collins points out, some companies have a long way they can fall. This may be the case with Walmart.
Prahlahad pointed out that around the world people are becoming connected. Thus, companies need to make a difference in how they approach their customers. Part of this results in Walmart having an increasingly diverse workforce (Erickson) especially as Walmart is worldwide. All of these factors combine to create a situation where companies have to stop competing on strategies, and start competing on being the best (Magretta, 2012). This is essentially the antithesis of Walmart’s current strategy.
The recommendation for Walmart is to develop a new vision statement, one that defines a vision. The next recommendation is to develop an effective mission statement, one that fits the industry but concentrates on Walmart. The third recommendation is for Walmart to develop a competency that will distinguish it from its competitors. Saying that Walmart saves people money is trite and with the proliferation of internet alternatives, is not even true. It is time for a new competency.
Once the competency is established, a way of capitalizing on market opportunities should be defined. External threats need to identified, and recommendations to address the threat developed. Financial objectives need to be developed not only at the business level but at the sub-business levels (Divisions or units).
Business objectives need redefined, including financial ones, and a strategy for achieving the objectives needs to be developed. Strategic objectives should be revised and a way to determine if the financial and strategic objectives are being met is needed. The company’s has to be aligned to the mission and the people have to be directed or led to support it. Teams need motivated and the organizational plan needs to be restructured to meet the new strategy.
A strong leadership team needs to evolve (or be chosen). .
These recommendations are practical because they are SMART– specific, measurable, achievable, and timely. The goals are specific; metrics can be developed to measure them, they can be achieved, and they are timely. Metrics can gather data at the present and compare results to future progress in order to determine whether or not progress is being made.
Collins, James. Video
- Regional management should meet with district managers monthly to ensure that the store is meeting the required schedule for adaptation.
- Managers should address severe issues with regional managers as they occur but no less than weekly.
- Store managers will meet with district managers every two weeks to review goals and track achievement.
- District managers will meet with regional managers every two weeks to discuss detailed issues.
- All managers will have their bonuses tied into achieving strategic goals, and are responsible for bringing any goals that are impractical to the attention of the district management during quarterly meetings.
- Managers must be prepared to meet with employees to address local issues within 48 hours of notice.
- Managers must review financial reports weekly and these inputs will be reviewed with district manager every two weeks.
Prahlahad, Dr. Video
Click following link to download this document
Evaluation of the Mission Vision and Values of an Organization The Soulful Purpose in Action.docx