Meeting and Motivating at Nordstrom

In any discussion of companies with a reputation for top-notch customer service, the name, Nordstrom Department Stores, will inevitably arise. Stories, some true, some possibly apocryphal, abound describing ways Nordstrom employees have gone well above and beyond the call of duty to take care of customers, whether in making a house call to exchange a pair of shoes for a customer or offering a full refund for a set of snow tires (Nordstrom has never sold tires).

In The Nordstrom Way To Customer Service Excellence (Wiley, 2005), author Robert Spector talks about one less publicized aspect of the Nordstrom success story: employee recognition. Specifically, Spector describes the monthly Recognition Meetings where Nordstrom managers reinforce, recognize, and reward employees for outstanding sales achievements while also rallying the troops and generating excitement about the store’s performance.

Spector describes the Recognition Meeting as a "pageant" where employees are honored for departmental sales increases and for any promotional ideas that have produced sales jumps. Sometimes employees singled out for praise will be surprised to find their parents, spouse, or children in the room for the announcement – brought in by management unbeknownst to the honoree. "The appearance of loved ones and the cheering of peers creates an emotional bond among all in attendance," Spector writes.

Spector also quotes chairman Bruce Nordstrom explaining how Recognition Meetings benefit both the company and employees. "Recognition and praise are heartfelt and personal," Nordstrom says. "That recognition is better than a vacation in Hawaii. We put people in front of their peers and tell them that they are the kind of person we want others to emulate. We tell them we value and cherish their input to this company, and we wouldn’t be successful without that individual. That’s strong stuff."

Nordstrom executive vice president and regional manager Len Kuntz identifies four key elements to an effective and energizing Recognition Meeting:

1. Express sincere appreciation for the people you’re honoring
   This may sound like an obvious point, but for many managers this seems difficult to accomplish. Instead of providing a generic description of the salesperson being honored (which is what many do), managers need to talk about the essence of what a person does, what makes her different, and how she adds value. Specificity matters.
2. Compete to win
   Internal competition has long been a hallmark of Nordstrom’s motivational success. Contests among stores and regions are actively promoted and results announced during Recognition Meetings. "We want our people to say, ‘I work for the greatest company in the world. I work for the greatest region in the greatest company in the world. I work for the best division or best department,’ and so on," says Kuntz. "Part of our culture is that we compete. You can use that as a weapon. Where does our region rank within the company? We instill the competition level and the pride, and we leverage them to produce results."
3. Add a new wrinkle
   Each Recognition Meeting should include management teaching the salespeople something new, whether a sales technique or a promotional idea. Sometimes these meetings start as early as 7:30 in the morning, and the manager’s job is to find new ways to generate interest and make sure people arrive brimming with anticipation.

Perpetuate the culture
Without going into too much detail or boring anyone, managers use these meetings to discuss key points of the Nordstrom’s corporate culture. The focus is on what makes Nordstrom unique and how the long-standing culture not only promotes the company’s success, but also works for the salespeople as well.