“The End of the Sam Walton Era”
In a lot of ways, Sam Walton represented the best intentions of Wal-Mart. His Rules for Building a Business emphasized employee-friendliness, and what became the world’s largest corporation started as his locally-owned business. Wal-Mart has moved away from Sam’s philosophy in the decade and a half since his death, opting instead to scrimp on employee benefits and customer service. Today’s Morning News brings word of another aspect of Sam’s legacy falling by the wayside: the early Saturday morning meetings. What was once a dedicated gathering every week will become an impersonal meeting held in the high school basketball court once a month. As the culture continues to change in management, so too does the company’s values.
Wal-Mart Alters Regular Saturday Meeting [Northwest Arkansas Morning News]
The legendary Saturday morning meetings that have long been at the heart of the Wal-Mart culture will dwindle to just one meeting per month.
And executives won’t be funneling into the home office for the soon-to-be monthly meetings, but will gather down the road at Bentonville High School where a larger auditorium can house the growing crowd of department managers required to attend.
Wal-Mart confirmed the news, announced Saturday at the meeting, but declined to make further comments as “details have not been worked out,” a company spokeswoman said.
To many, the move signifies the end of the Sam Walton era. Sam Walton strongly believed in the value of the Saturday morning meetings as a time to communicate, plan strategy and gain a competitive advantage.
Wal-Mart on its Web site describes the meetings as “the pulse of our culture.”
The meetings are part entertainment and part hard-core business, according to a description found on the Wal-Mart Web site. The meetings are as famous for their celebrity cameos and Wal-Mart cheer as they are for hatching and implementing new ideas while competitors lined up the first tee on the golf course.
“I believe if you want to understand Wal-Mart, the Saturday morning meeting is the culture personified,” said Michael Bergdahl, international speaker and author on Wal-Mart culture, said Monday in a phone interview. “It’s really larger than life. The Saturday morning meeting equals competitive advantage.”
While most corporations meet quarterly, Wal-Mart devoted 52 Saturdays per year to critique the business, debate management philosophy and strategy, correct weaknesses and share ideas.
“Sam Walton used to say, ‘What makes us different is what makes us great,’ and I think that’s what the Saturday morning meeting was all about,” said Bergdahl, who worked under Sam Walton as director of people. “It fundamentally changes the culture and makes them more like everybody else.”
As the retail playing field levels, some speculated the meetings may no longer serve their purpose.
Patricia Edwards, portfolio manager with Seattle-based Wentworth, Hauser and Violich, said the time managers spend at the meeting could be used more effectively and profitably outside the meetings, working with suppliers or in the stores.
But it also may indicate a new kinder, gentler Wal-Mart that cares about the quality of life for its employees. Saturday morning meetings are viewed as less than family friendly and maybe a bit too demanding to managers that already work long weeks.
“I think the regular meetings may not be viewed as essential to accomplishing what Wal-Mart wants to accomplish,” said Kurt Barnard, president of Barnard Consulting Group in Nutley, N.J. “You have to remember one thing—Wal-Mart today is a very different company from what it was when Sam Walton started and ran it, and so perhaps Wal-Mart needs a different approach. Clearly the needs of a company such as Wal-Mart today are vastly different when compared with the kind of company that Wal-Mart was 40 years ago.”
In recent years, the cultural changes of the world’s largest retailer have become increasingly obvious, and haven’t come without scrutiny.
Wal-Mart has eliminated layaway and customer service call centers for Web purchases, reduced fabric departments, and made a poorly-received attempt to offer upscale apparel, which alienated its core lower-income shopper.
The end of Saturday morning meetings was viewed by many as the end of Wal-Mart culture the Sam Walton way. But not to Don Soderquist, a former Wal-Mart executive.
“We shouldn’t make that big of a deal of it,” Soderquist said Monday. “If Wal-Mart thinks it’s the appropriate thing to do then that’s what they’re going to do.”
Sources speculated what the company’s motivations might have been for the sudden end to Saturday morning meetings, but were openly troubled that whatever the reason, it signifies a new era for Wal-Mart.
“I think the Sam Walton recipe for that culture is something nobody should mess with, and (Lee Scott, chief executive officer) messed with it, and it’s done and changed forever,” Bergdahl said.
Posted by Alex Goldschmidt on Tuesday, January 15, 2008







COMMENTS
Poor walmart going downhill.
JO in
Tuesday, January 15 at 12:44 PM
With their emphasis on cost cutting I’m surprised that they have face-to-face meetings at all.
Given their massive computer infrastructure it shouldn’t be too difficult to add some teleconferencing ability to their network.
robertdfeinman in Long Island, NY
Tuesday, January 15 at 02:00 PM
Speaking with those few co-workers who have been
around since the time of Sam Walton, times do
change, not always for the better.
There was a time when associates were treated
with dignity and respect.
Not any more.
Rob in Surfside Beach, SC
Tuesday, January 15 at 02:27 PM
robertdfeinman: Happy New Year! I was thinking to myself earlier,that when these Saturday meetings were instituted,the lack of communication technology probably required physical particippation. Just think, now the associates theoretically can keep on working,to some degree,while still listening in on the conference-no down time there..in some instances..I suppose that the actual Saturday morning meetings provided a psychological glue,also,to cement the “team” or “family” paradigm.
ddrb in
Tuesday, January 15 at 02:39 PM
BTW: Why is WalMart using a public high school basketball court for their meetings? Is it just me,or isn’t this odd?
ddrb in
Tuesday, January 15 at 02:43 PM
“THE SAM WALTON ERA” ended a long time ago. If anything signaled the end of Sam’s Dream and the birth of the Beast of Bentonville it was H. Lee Scott’s ascendency to CEO. (2000)
Ken V in Texas
Tuesday, January 15 at 03:12 PM
Ken V : The year 2000 also heralded the ascendancy of G.W.Bush as president of the U.S.-a lot of descendancy on many levels since that fateful year.
ddrb in
Tuesday, January 15 at 04:10 PM
Gimme a “W”....W....Gimme an “A”...
“The legendary Saturday morning meetings that have long been at the heart of the Wal-Mart culture will dwindle...”
Does this mean that Wal-Mart “Associcates” can look forward to doing fewer Wal-Mart Cheers as well?
ScrewedbyWal-Mart in Anytown, America
Tuesday, January 15 at 05:09 PM
Ken V touched me inappropriately in a Wal-Mart restroom.
Walmart Worker in
Tuesday, January 15 at 06:09 PM
Ken V touched me inappropriately in a Wal-Mart restroom.
Walmart Worker in
Close the door to your stall and sit facing the right direction Walmart Worker, then no one will bother you.
Oh, stop wearing womens undies also.
John in
Tuesday, January 15 at 06:37 PM
Now Walmart Worker, were you tapping your foot in an attempt to attract wayward Republicans?
A BETTER OBSERVER in Gresham, Oregon
Tuesday, January 15 at 06:45 PM
WalMart Worker: Were you in the men’s or ladies’ restroom?
ddrb in
Tuesday, January 15 at 06:53 PM
John
Way to blame the victim
Walmart Worker in
Tuesday, January 15 at 07:44 PM
We should remember Sam the old-fashioned way, by quoting him-
Wal-Mart founder Sam Walton once said, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.”
http://en.wikipedia.org/wiki/Criticism_of_Wal-Mart#_note-
iswalmartgood
“Is Wal-Mart Good for America?” PBS. November 16, 2004. Retrieved on February 24, 2007.
“The Shepherd drives the wolf from the sheep’s throat, for which the sheep thanks the shepherd as a liberator, while the wolf denounces him for the same act as a destroyer of liberty.” Abraham Lincoln
WalMart- We are a poverty engine to the workers on behalf of the Walton billionaires. And the Waltons did not want to forget thanking all the taxpayer suckers for the billions in subsidies!
SanDiegoView in
Wednesday, January 16 at 06:22 AM
if walmart is going downhill then why are so many people still shopping there and their parking lots full regularly?you walmart haters and your ufcw unions have no answer on that do you?
matthew vantress in gresham oregon
Wednesday, January 16 at 06:59 AM
We should remember SanDiegoView the old-fashioned way, by quoting him-
blahblahblahblahblabhblabhlivingwageblahblahblabhblabhablahblahcostcoblabhblabwaltonsblahblabhblabhblabhblabhsubsidiesblahmypostsarecrapblahblahblahblafakeoutpostshblahblah
In rememberance in
Wednesday, January 16 at 09:19 AM
WALMART IS GOING TO HELL,AND TAKING THE REST OF THE COUNTRY WITH THEM.
ma in
Wednesday, January 16 at 10:48 AM
SDV,
QUESTION: How would your so-called ‘living wage’, affect people on fixed incomes and the unemployed?
RDS in
Wednesday, January 16 at 10:59 AM
how about all companies in the usa pay living wages?including fast food joints?i will no longer use profanity on here.
matthew vantress in gresham oregon
Wednesday, January 16 at 01:38 PM
Matthew, your friend RDS believes we should do away with the min wage and definitely opposes any living wage. Some people are naive enough to think that these big corporations will lower all their prices tomorrow if they could just pay the labor force close to nothing. When in fact they would just see that as extra profit and pay their CEOs even more money.
patriotic blindness in Yakima
Wednesday, January 16 at 06:24 PM
i will no longer use profanity on here.
matthew vantress in gresham oregon
But will you continue to use stupidity on here?
John in
Wednesday, January 16 at 06:44 PM
patriotic blindness:I’d say your vision is 20/20.
ddrb in
Wednesday, January 16 at 07:07 PM
patriotic blindness,
“your friend RDS believes we should do away with the min wage and definitely opposes any living wage. Some people are naive enough to think that these big corporations will lower all their prices tomorrow if they could just pay the labor force close to nothing”
I’m still trying to understand, what EXACTLY a ‘living wage’ is, as not all people have the same cost of living, maybe YOU can explain it to me!! As for the minimum wage, almost ALL Big businesses start out above the minimum wage, it is the small businesses that have a problem dealing with the extra labor costs!! But, you could care less about customers and small business, right?
RDS in
Thursday, January 17 at 02:48 AM
“I’m still trying to understand, what EXACTLY a ‘living wage’ is,...”
RDS
Translation: My dead conscience won’t allow me to type ‘living wage’ into the Google search engine or make any effort to really know about labor and the cost of living. It is the way of the psychopath, not really wanting to know about the situation of exploited American labor and feign excuses to evade reason and justice, truth and reality.
Blind WalMart internet toadyism earning you RDS the Helen Keller quote-
“People do not like to think. If one thinks, one must reach conclusions. Conclusions are not always pleasant.”
Helen Keller
WalMart- Ethical and moral relativism in finance sets us apart from American common sense and social responsibilty. The ‘love of money’ makes us a distictive fully functioning psychopath business model. “Living wages?” and “Health Care?” We don’t understand, and we don’t want too either.
SanDiegoView in
Thursday, January 17 at 06:39 AM
SDV: These days,just trying to be a decent human being, constitutes an act of heroism!!I typed in minimum wage into Google yesterday,and was surprised to learn that the first time it was used was in New Zealand-but America set a national minimum wage in 1938 or ‘39, if I’m not mistaken. Wikipedia has a list of pro and con arguments on the plusses and minusses. I found it quite informative...as would many,if they had the time or inclinaton to learn more about the history of this issue.
ddrb in
Thursday, January 17 at 09:38 AM
RDS: For some time now, you have made several reeremces as to how people got along fine without various government programs and agencies. You got me to thinking about something that had been in the back of my mind for a while,along those lines.How did people get along before WalMart? Oh, that’s right-there were Sears catalogs for rural folk, downtowns,and mom and pop,and Woolworth and Kress and Newberry’s 5 and dimes. It would seem that the exodus to the ‘burbs after WWII began to alter much of the design of American life from then on....paving the way for W/M . Now were paved OVER by WalMarts...kinda like corporate kudzu.
ddrb in
Thursday, January 17 at 10:18 AM
You Got Me Thinking… ddrb
“paved OVER by WalMarts”
Let’s take the billions and billions we’re pissing away in Iraq, and “pave over” every Wal-Mart SuperCenter in this country and build some regional medical/healthcare facilities instead!
If that doesn’t trip your trigger, how about a few more schools to eliminate sub-standard inner city schools.
Now THAT’S what I call urban planning and development!
ScrewedbyWal-Mart in Anytown, America
Thursday, January 17 at 10:50 AM
SDV,
“My dead conscience won’t allow me to type ‘living wage’ into the Google search engine or make any effort to really know about labor and the cost of living.”
Problem is, checking those sites only yields nothing more than the ‘babble’ you put out!! “Living Wage”, the amount that it takes for a family to live,(rent, food, etc.)!! But, it has no way of implementing it in a ‘fair’ way, because it sounds like a “one size fits all”, to a society that has such a wide range of expenses (costs of living)!! And, as family sizes vary and spending habits vary, needs vary, therefore, it is impossible to create a wage level based on a families need!! Would the amount of money, that I would need for my monthly expenses, be adequate for YOU to ‘live’ on? Therefore, if MY ‘living wage’ was used as the BASE wage level, would it be enough for YOUR, ‘living wage’ level? Also, why should MY spending habits, be used as a basis for MY wage level? “Living Wage” is one of those nice sounding terms, but, would be a ‘nightmare’ to try to implement!! And, if ‘living wage’ is such a great concept, why not just replace the ‘minimum wage’ with it? Why not just say, that it would require a ‘living wage’, of say, $25.00 an hour for the average family to live and set that as the new ‘minimum wage”? “Living wage” is not used, because DOESN’T WORK in the real world!!
Sometimes, ‘good’ sounding ideas, can lead to disaster!! There is an old saying, “The road to ruin, can be paved with good intentions”!! I have found that most ‘old sayings’ have a basis in experience!! And, ‘closed minded’ people, with ‘tunnel vision’ don’t always see all that is to be seen!!
ddrb,
“It would seem that the exodus to the ‘burbs after WWII began to alter much of the design of American life from then on....paving the way for W/M”
Glad to see, that you acknowledge that the world changes and what worked yeaterday, may not be the ‘best’ for tomorrow!! One could also ask, “How did people get along before electricity”, but, that doesn’t mean it would be a ‘good thing’ to go back to those days!!
RDS in
Thursday, January 17 at 12:59 PM
RDS: What would the living wage be for members of the Walton family?
ddrb in
Thursday, January 17 at 01:17 PM
Why is it?
“‘closed minded’ people, with ‘tunnel vision’ don’t always see all that is to be seen!!
Why is it, that most of the time when I read your posts RDS, it’s as if you are talking about yourself?
ScrewedbyWal-Mart in Anytown, America
Thursday, January 17 at 04:22 PM
Screwedby,
“Why is it, that most of the time when I read your posts RDS, it’s as if you are talking about yourself?”
Probably, because you can’t ‘see all that is to be seen’!! Besides, you are so arrogant and full of yourself, you think that YOU are always right and everyone else is always wrong, unless they agree with you!!
RDS in
Friday, January 18 at 12:25 AM
ddrb,
Okay, as long as SDV refuses to answer my question, why don’t YOU explain to me how a ‘Living Wage’ could be implemented in the ‘Real World’!! I’ve been asking that doorknob, that question, for over a year now and he won’t answer, that tells me he CAN’T!! Bet, you won’t answer either, because You CAN’T, because the concept is B.S.!!
RDS in
Friday, January 18 at 02:22 AM
Another reality wake-up call again for RDS the imbecile fraud-
Costco as a model retailer has answered all your insanity and denials repeatedly about ‘living wages’ and ‘health care benefits’. Your ‘love of money’ egoism and hysterical false notions of pretend capitalism and your hopeless lying ideological defense of WalMart precludes you from the answers to to your own deliberately constructed ignorant ‘questions’.
RDS, nobody believes you have any interest to facts and the real world that you also then object to when those very facts and reality confront inconveniently whatever is left of your piss poor propaganda existence.
From Jim Sinegal, CEO of Costco-
“While Wal-Mart makes twice as much profit as Costco, Sinegal believes its better business to make a nice profit, but not a killing, and to invest more in Costco’s 92,000 workers. “I don’t see what’s wrong with an employee earning enough to be able to buy a house or having a health plan for the family,” he says.”
“We always want a wide gap between us and the competition,” Coscto’s CFO Richard Galanti told the Seattle Post Intelligencer. “It shows in the quality of our employees…It’s what our founders want to do in paying a family wage.”
Sam Walton however-
Wal-Mart founder Sam Walton once said, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.”
http://en.wikipedia.org/wiki/Criticism_of_Wal-Mart#_note-
iswalmartgood
“Is Wal-Mart Good for America?” PBS. November 16, 2004. Retrieved on February 24, 2007.
WalMart anti-unionism and poverty wages as a business model from Sam Walton himself. The anti-’living wage’ psychopath excuse system for billionaires with endless propaganda needs.
The ‘living wage’ Costco model continues to embarrass the like of RDS-
Costco CEO Says Higher Minimum Wage Means ‘Better Jobs and Wages’
by Mike Hall, Jan 31, 2007
The Costco chief certainly knows what he’s talking about. His successful venture, launched in 1983, now has 130,000 workers and operates 504 stores, where the average worker makes $17 an hour and the lowest-paid earns $11 an hour. It’s good business sense says Sinegal.
http://blog.aflcio.org/2007/01/31/
costco-ceo-says-higher-minimum-wage-means-better-jobs-
and-wages/
The real world of the ‘living wage’ at Costco and again proof that RDS cannot and will not see past the impoverishment wages of the WalMart model and the desperate efforts to justify the poverty engine from Bentonville. Ideological tunnel vision from RDS and/or deliberate and misleading lies about any subject matter to attempt justifications of willful displays of ignorance and the polluted frauds of evasion and denial of reality.
Screwed, you have been right about RDS and his past year of being a dunce fabricator of the WalMart internet shill squad imbeciles.
WalMart- ‘Living wages?’ ‘Health care benefits?’ We don’t understand, and we don’t really want to either. Just ask RDS.
SanDiegoView in
Friday, January 18 at 07:14 AM
i thought i would insert my usual lies here about costco and how much better walmart pays their employees and gives them better healthcare than any other retail store that ever existed but nobody ever believed my crap and i have exhusted my quota of self imposed insanity. how come nobody ever complains about rds when he lies and his crap is allow out of rehab
matthew vantress in gresham oregon
Friday, January 18 at 07:35 AM
the last poster is not the real me.hey sdv i wonder how many of them at costco at 17 an hr are getting full time work?costco you claimed pays 41,000 a year.no they dont even at 17.00 an hr after taxes they take home about 2000.00 a month.very few get full time at costco.walmart sdv pays the same 92% for workers healthcare premiums and so do most other private sector companies for their workers medical insurance premiums that you brag that costco does.look at wms healthcare plans and research all of them before you come on here again with your ufcw union local 135 garbage on wm.the same ufcw local 135 that once again sold out members at the bottom end of the wage scale like courtesy clerks in contract negotiations this year by only getting them paltry wage increases and not that much better benefits.costco sdv dont understand living wages because not all at costco earn the 17 an hr and get living wages like you claim or get full time work.part time at 11 an hr and only 25 to 30 hrs a week at costco and thats living wages?nonsense.bring us some real proven non biased stats sdv not more ufcw local 135 union and govt propaganda that you cant prove one bit.
matthew vantress in gresham,oregon
Friday, January 18 at 07:48 AM
How about the big conspiracy over at ABC news?
http://abcnews.go.com/2020/Business/story?id=1362779
Costco CEO Finds Pro-Worker Means Profitability
High Wages, Employee Benefits Build Loyalty—and P.R. Ambassadors
By ALAN B. GOLDBERG and BILL RITTER
August 2, 2006
And Sinegal says he’s also built a loyal work force. In fact, Costco has the lowest employee turnover rate in retailing. Its turnover is five times lower than its chief rival, Wal-Mart. And Costco pays higher than average wages—$17 an hour—40 percent more than Sam’s Club, the warehouse chain owned by Wal-Mart. And it offers better-than-average benefits, including health care coverage to more than 90 percent of its work force.
Costco doesn’t have a P.R. department and it doesn’t spend a dime on advertising. There’s a real business advantage to treating employees well, Sinegal said. “Imagine that you have 120,000 loyal ambassadors out there who are constantly saying good things about Costco. It has to be a significant advantage for you,” he explained.
Many Costco workers have been with the company since it was founded in 1983. Once hired, they rarely leave.
Mitch Auden in Denver
Friday, January 18 at 09:06 AM
Nice post, “Mitch”...or should I say SDV?
bbrd in
Friday, January 18 at 09:17 AM
Costco doesn’t have a P.R. department...
I find that a little difficult to believe—perhaps, Costco doesn’t have a PR operation like that of Wal-Mart, but you can be assured someone in Washington State has a sole responsibility of writing-up press releases for new store openings, etc.
bbrd in
Friday, January 18 at 12:06 PM
“Costco doesn’t have a P.R. department...”
If they don’t, maybe it’s because they don’t have groups and unions trying to put them out of business!! Just wait until they get ‘big’ enough and they will need one then!! Wal-Mart, didn’t need one either, when they only had 400 stores and 120,000 employees!!
RDS in
Saturday, January 19 at 12:50 AM
I was under the impression that this thread was entitled “The end of the Sam Walton era.” May I add a few more of more “end of an era” items?According to Sam: 1.) The chain would never,ever open on Sundays. 2.) The chain would never sell alcohol in any form.3.)"WalMart will never go into a town where it is not wanted."Incidentally, I must admit, that is an impressive and flattering photo of “Mister Sam.”
ddrb in
Saturday, January 19 at 02:27 PM
ddrb, I think they should go back to their policy about not selling any alcohol. Their beer selection is horrible and never any good sale prices! Yet another reason for me to stay away.
A BETTER OBSERVER in Gresham, Oregon
Saturday, January 19 at 04:30 PM
Better Observer: It may be that the markup on beer doesn’t provide much of a profit margin..hence little incentive to provide extensive inventory. The hard liquor and wine,I would venture,provide the higher profit. How’s the selection there??(I’m sure if I’m mistaken on my assumptions,I’ll be corrected in short order.)
ddrb in
Sunday, January 20 at 11:15 AM
A BETTER OBSERVER,
“Their beer selection is horrible and never any good sale prices! Yet another reason for me to stay away.”
We can see where YOUR priorities lie!! BEER!!
RDS in
Sunday, January 20 at 02:30 PM
RDS: Just where in better observer’s post did you read any reference to beer being a priority? Perhaps he(or she ) is more observant of the selection offered in comparison to other retailers-that doesn’t denote a priority by any means.
ddrb in
Sunday, January 20 at 03:12 PM
Thanks for the backup ddrb. And no RDS, beer isn’t a big priority in my life. Just happen to live in an area famous for it’s many microbrews and I do entertain ocassionally. Walmart is lacking in it’s selection of microbrews and I suppose that is because they cater more to the NASCAR fan types where any run of the mill swill like Budweiser or Coors will do!
Oh, and to ddrb their wine selection while I bit better than their beer selection still doesn’t hold a candle to say Safeway, Fred Meyer or Trader Joe’s. But then again that is no shocker. And they don’t sell liquor in grocery stores here in Oregon. Have to go to separate liquor stores controlled by the OLCC.
A BETTER OBSERVER in Gresham, Oregon
Sunday, January 20 at 06:54 PM
I was under the impression that this thread was entitled “The end of the Sam Walton era.”
Actually, I am looking forward to the one that reads The End of the ddrb Era!
bbrd in
Tuesday, January 22 at 03:05 PM
bbrd:Why,bbrd,I didn’t know you cared!
ddrb in
Tuesday, January 22 at 04:07 PM
Don’t flatter yourself.
bbrd in
Wednesday, January 23 at 12:51 PM
i just cant believe how much managers complain when they
have to work the hours they work when most of it is just
sitting in an office on calls or sitting in offices talking about there personel lifes while hourly assc deal with customer mods price changes negative out and silly blue and red dot program also notes that a manager or market manager may have but time to cut payroll they cut the hourly assc pay to nothing but be exspected to still get all done when they are there while salaried managers do is point out this is what is exspected well home office why not also cut there pay as well as hourly assc and save on payroll all around guess the more you make the lazier you can be and prove to the less fortunate that wal mart only takes from the little sam thought he left behind something for all to be proud of well guesshe didnt see all the greedy people waiting for him to die to make allhe worked for go only to the rich
not so happy in
Friday, January 25 at 04:56 PM
not so happy in: “You can’t create a team spirit when the situation is so one-sided,when management gets so much and workers get so little of the pie.” Sam Walton.
ddrb in
Friday, January 25 at 05:46 PM
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