Thats when McMillon froze up a little. In that sense the companys directors didnt so much select McMillon as CEO as anoint him. Tuesday evening, I meet McMillon at the site of one of his companys newest retail experiments: Walmart Pickup-Grocery. Having been here a long time, I think I had the feeling that I knew what responsibility felt like, says McMillon. The combination of a deep recession after the financial crisis in 2008 and elevated gasoline prices in recent years gave those bargain-priced, small-format rivals an opening with customers who couldnt afford to drive out of their way to supercenters on the edge of town. Extraversion is a character trait which occurs when an individual is social, has positive emotions, and can interact with employees and business partners easily. Really?. And his view of the world, his understanding of the context of Walmart within that world, his age and youth in an environment thats changing so quicklyall of that I think is going to give him more energy to embrace change rather than try to simply cope with change., McMillon has impressed executives outside Walmart as well. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. With the introduction of online shopping, Walmart needed a change in the way it conducts its businesses. I am a credit controller at the General Motors Introduction The opinions expressed herein are not, and should not be construed as investment or other advice. WebHis leadership style is characterized by effective planning, controlling, organization and coordination of activities. acts.) Sometimes that means engaging in a difficult, but respectful, dialogue. and keeping abreast of emerging trends in the marketplace. And so we talked about that quite a bit.. Under Dougs leadership, Walmart is making life easier for busy families and building trust with customers. Since our founding in 1935, Morgan Stanley has consistently delivered first-class business in a first-class way. In conclusion, the leadership style by Doug McMillon is a perfect example of the best ways to run a company through appropriate leadership traits. Gesturing across the desk, McMillon said, I cant really go over there. Over the past decade in the U.S., the total number of dollar stores has jumped 50%, from under 17,000 to more than 25,000. Says McMillon: Temporarily closed. He has served several leadership positions of Walmart. Give local managers more autonomy to make stores sparkleand hold them accountable. Delegate your assignment to our experts and they will do the rest. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. And I always had my mom whispering in my ear, You can do this. His strong sense of competitiveness, McMillon says, comes from her. Under the leadership of Doug, Walmart has expanded in different places all over the world. He is, therefore, a good example of what is. Doug McMillon has one of the strongest personality and character traits. Why supervisors should understand the organizational behavior of their employees, Fundraising Programs: Organizing Marathons. If we can make these individual connections, we can strengthen our communities and nation. After watching; Pick any Company 1. Foran is impatient to see the results. over the recent past years. services through the e-commerce websites in 11 countries. Walmart handed out a raise to 165,000 U.S. workers earlier this month. And, of course, the acquisition of Jet.com for $3.3 billion was an enormous accelerator opening a younger more affluent market, as well as building a long tail of digital native brands, eventually to be rolled out as brick-and-mortar stores. as well as other partner offers and accept our. He has been at various times one of the worlds biggest buyers of teen sportswear, Halloween candy, and potpourri. But in chatting with McMillon at the Yahoo Finance All Markets Summit on Monday, its clear the top dog at Walmart has thought about his learnings a little bit. I havent seen that one before, he says. Added McMillon, I think I have learned even more to let people move quickly, think big and not let bureaucracy slow us down. The difficulty of that task is not lost on the Arkansas-born CEO, a thoughtful type who is as comfortable diving into data as he is chatting with associates. The retail giant is planning to open fewer supercenters over the next year as it spends more on ecommerce, customer service and in-store technology. achievable through a good leadership style on an individual and organizational basis. This documentary-style series follows investigative journalists as they uncover the truth. ", He also shouts out Walmart's employees, whom the company calls associates, as becoming more comfortable with Walmart's now-speedy pace of change and even leading the charge in some cases. It also offers e-commerce. But I think we can do thingsnot say thingsthat can make the narrative less believable, he adds. If you have a dirty store, a store thats out of stock, an associate encounter with a customer that is not friendly and not helpful, then all of the things said about you become very believable, he says. Doug McMillon at Crystal Bridges Museum of American Art |, Doug McMillon and associates laughing in his office, Doug McMillon with associate at a store in China, Doug McMillon in a Walmart Supercenter with associates, Doug McMillon shaking hands with associate |, Doug McMillon playing a game with Flipkart associates, Doug McMillon with Michelle Ebanks at Essence Festival 2019, Doug McMillon with a group of Flipkart associates, Doug McMillon with associate surrounded by Christmas trees, Doug McMillon speaking at Walmarts 2019 Associate Celebration |, Walmart California Consumer Privacy Act Notice, Feb. 17, 2022: Doug McMillon Discussing Q4 FY22 Earnings. The 3-hour roundtrip gave them plenty of time to talk. Its McMillons vast network of super centers and e-commerce operation that have been mission critical in supplying shoppers with vital goods during the pandemic. "In our supply chain, we are eliminating waste, using more renewable energy, reducing carbon emissions and making our items and the packages they come in healthier and more sustainable," McMillon writes. 1. In recent years the company has worked hard to make that a compelling prospect, investing heavily in both technology and talent. Each and every action he chooses to undertake is well thought out and calculated. He leads his team by all virtues. Doug has had success with the company because he his leadership style has been more adaptable to change. The CEO even seems at ease when he broaches a touchy topic. Were going to make Walmart.com No. Another idea is to serve shoppers in busy office complexes by letting them collect preordered groceries at the end of the day from a truck in a nearby parking lot. The major grocery store chains such as Kroger (KR) and Safeway have adapted and learned how to compete better on price while outdoing Walmart on fresh, drawing in shoppers in search of better produce and prepared food. As they required more capital, QUESTION 1 TopElectronic Bhd is a manufacturer and supplier of electronic and computer devices. And hes not going to miss the opportunity to do a little recruiting. Where once Walmart was the ultimate disruptive force in retail, rolling across the land with its army of supercenters, today it finds itself facing fierce competition on every front. When the graduate student interviewing him asks why he has stayed at Walmart for his entire career, McMillon responds that the complexity of running a giant retailer always keeps him engaged. He enjoys spending time with the employees and business partners as they discuss both business and non-business issues. For the company to grow sales by a pedestrian 3% this year it would need to add $14.5 billion in revenuemore, for example, than either Whole Foods (WFM) or Marriott (MAR) had in total in 2014. Businesses, being primary creators of employment today, How Corporate Security function will establish Collaboration with the Local The scrutiny is of a comparable scale. ! the manager asked. Editors Note: Walmart CEO Doug McMillons letter to shareholders is republished here from our 2019 annual report. Walmart Inc.s Doug McMillon just took over as the chief spokesman for Corporate America, and hes not wasting any time taking action. State Police and the Michigan Walmart CEO Carl Douglas McMillon on Leadership Style. Today, as our country, and the world, works through one of the most challenging moments in historythe product of a global health crisis, the economic crisis that goes with it, and the pervasive injustice of systemic racismwere inspired to make a positive difference, to build a better company and help contribute to a better world. His new boss told him he would be a buyer trainee in sporting goods, in charge of fishing tackle, and pointed him to a pile of paperwork to sort through. Stay in the know! We make mistakes. As Ive traveled around the U.S. during the year, Ive seen it. This creates a strong communication network within the entire company. Walmart CEO Doug McMillon hasnt had too much time to reflect on what leadership lessons he has learned managing through the once-in-a-lifetime COVID-19 pandemic. He is widely recognized for his successful leadership style and for introducing a number of innovations to the company, including the implementation of e-commerce and digital technologies. All Rights Reserved. 2023 Fortune Media IP Limited. This is one of the most important character traits of leaders as it enables the proper running of a company in the ever-changing business world (Hickman and Silva, 2018). Mcmillon is in pitch mode. Oh, yeah, says Oliver. Thats from Sam Walton. First they sign in at a neon-green kiosk with a digital display. In case Walmart undergoes any challenge, most of the employees are willing to consult him for help. Theyre assigned one of 33 parking spots, and after a moment a Walmart employee wheels the order out on a dolly and loads it in the back of the customers SUV or minivan. A company that doesnt is at a clear disadvantage. University Banks corporate security function collaborates with the Michigan Doug possesses an important character trait of being able to face challenges as they come and handle it effectively. Produce in the grocery aisles looked decidedly less fresh than at rival chains. The character trait of openness deals with the ability to be open to different choices as one considers all the information present. He also sits on the advisory board of the Tsinghua University School of Economics and Management in Beijing, China. From 2009 to 2014 he was president and CEO of Walmart International, and from 2005 to 2009 he served as president and CEO of Sams Club. They remember days when Sam Walton would visit their stores. Sage publications. EBay Head Of AI Talks About The Future Of Online Commerce. The pickup facility is the only one of its kind in the U.S. for now, but its one of many pilot programs Walmart is testing to connect with customers in new ways. McMillon will be just the company's fifth CEO in Walmart's 51-year history. After the ride was over, McMillon thanked his new adviser and said he was going to send him a book, journalist Brad Stones. Robin Lewis, Inc. All rights reserved. "So, get comfortable with an intelligent level of risk. But, if the world could see all of the hard-working, well-intentioned people inside our company who are making things better in their communities and in the world, I'm convinced they would be moved by it all. When McMillon was 16, his father, a dentist, moved the family from Jonesboro, Ark., in the eastern part of the state, to Bentonville because he saw better growth potential for his new practice in the little town where Sam Walton was building an empire. There are frequent visits by the company's CEO and other managers to the Wal-Mart stores, for starters (Bocanegra Gastelum, McMillon, who is a Trump advisor, following the President's response to Charlottesville said he "missed a critical opportunity to help bring our country together.". Sam Walton started it, and our associates carry it on. One of the challenges that the company faced is the changing consumer tastes from retail shopping to online shopping. Oliver got right to the point, though. He started by serving as the leader Walmart Incorporations, was the Executive Vice President, and at some point served as the CEO at one of the branches of Walmart. The award will be presented to Mr. McMillon by Marillyn Well learn stuff.. It was clear from the data that Walmart would have to seriously up its game. The changing consumer tastes saw a gradual decline in the companys profits. McMillon arrives just before 6 p.m. in his shiny black Jeep Rubicon, a vehicle with macho rims that give it the effect of a mini-Hummer. If that seems bananas, well, consider bananas, Walmarts No. He is a homegrown talent who was marked for leadership early. Walmart said in its annual report that it saw total revenue grow 3% to $514.4 billion in worldwide sales. Culture was being shaped. The five-factor personality model theory integrates the different aspects of personality and how they can be used to create effective leadership. Dont sweat the small stuff. Through the help of his team, he has come up with a creative marketing and sales strategy. I bet it [the pandemic] has changed everybody in some way. Walmarts e-commerce section competes with other leaders in online retailers such as eBay and Amazon. He went on to serve in senior leadership roles in all of Walmarts business segments. What is the cost of labor? Organizational studies and human resource management, Running head: LEADERSHIP STYLE NEWSLETTER, Doug McMillon is the president and chief executive officer at Walmart stores Inc. he has, worked for the company in his entire career, having joined Walmart in high school at a summer, associate level. McMillon has also served as the CEO and president of, Walmarts Sams club segment from 2006-2009. Study guides. He plopped down on the visitors side and began working from there. After the ride was over, McMillon thanked his new adviser and said he was going to send him a book, journalist Brad Stones The Everything Store, about the rise of Amazon. Photograph by Mackenzie Stroh for Fortune, CEO portraits from Getty Images and MacKenzie Stroh, Walmart CEO Doug McMillon, photographed in Bentonville, Ark., in April, One could forgive McMillon, 48, for being momentarily daunted by the magnitude of the job. My dad always had very high standards for me, from day one, he says. All expressions of opinion are subject to change without notice. It wasnt pretty. Walmart won kudos for its wage announcement, but soon critics were suggesting that it would cut hours to make up the difference and pointing out McMillons substantial pay package. Apart from being the CEO of Walmart, Doug McMillon is one of the board of directors in the US-China Business Council. Indeed, running Walmart, the No. Politically correct is a fine line and a constantly changing fine line. Those supporting the decision did so primarily because of the belief that corporations have a responsibility to several stakeholders. So if you want to work at Walmart, give me a call.. (He made $19.4 million last year, according to a 2015 proxy filing. I think we have moved faster as a result, and that has changed me as a leader.. Doug Mastriano's plan for public education in the Keystone State would be one of the most radical in the country. Randy West. Everything about Walmart is supersize. As an agreeable person, he portrays an understanding of his employees and their challenges in the workplace. As such, Walmart easily adopted the e-commerce platform smooth and did not experience significant setbacks. WebDoug McMillon: What Ive Learned Since Becoming CEO. He begins with praise, recognizing 2 executives (1:15-2:35).He then explains the purpose/payoff of the meeting, which is to answer a lot of the audience's strategic questions so that they can "see out a ways" into He applies his years of experience in the retail business and takes in the choices presented by his team to come up with the best decision. It was no surprise that the company decided to look internally to its rank and file to run its complex and gigantic business. Its important for the day-to-day operation of a business, but its also essential when the stakes are high, as they are today. Offers may be subject to change without notice. Thats a new concept in the culture of Walmart, where failure in general had never been an option, much less a desired outcome. Walmart CEO Doug McMillon just released his annual letter to shareholders read it here. Magellan Jets enters its 15th year with its most significant expansion. Northouse, P. G. (2018). He is also friendly with everyone in the company as he tries to create the best working environment. And in the most obvious face-off with Amazon, Walmart is preparing to introduce its own version of Prime, Amazons free delivery service for premium customers. WebDoug McMillon took the reins of the retail colossus in 2014, after starting his career at Walmart unloading trucks when he was a teen. And intensely friendly in the sense that his focus is on you, like theres no other thing going on in his mind when hes talking to you. McMillon who is coming up on his seventh year as CEO in February 2021 sits atop the worlds largest retailer, which so happens to be the countrys largest private employer. (Indeed, McMillon predicts it: Youre going to get a card on that one, he says quietly to no one in particular before the referee reacts.) Rob Walton, Sams eldest son, remains chairman. For the company to grow sales by a pedestrian 3% this year it would need to add $14.5 billion in revenuemore, for example, than either, But the influence of Amazon goes well beyond the raw numbers.