Nordstrom Culture

Nordstrom is a fashion designer retail chain and their number one goal was to provide outstanding customer service and set high professional as well and personal goals. The management at Nordstrom had immense confidence in the employees' abilities and gave them the freedom to use their good judgment skills at all situations and make their own decisions and were ready to live with their decisions. Goal setting was the second most important aspect in Nordstrom and a list of individual annual goals for net sales is put up, which the sales associates had to meet or exceed. Nordstrom also makes new employees feel comfortable by interactive exercises and games. Though it is many companies' goal to satisfy customers, what sets apart Nordstrom is that it truly brings this goal into full action.

Nordstrom's customer service was so satisfying that other companies measured themselves against it. Even educational institutions wanted to learn about Nordstrom's philosophy to excel in their field. The uniqueness of Nordstrom came from the fact that it catered to middle-to-upper-income men and women and offered them a wide variety of shoes, apparel, cosmetics and accessories at a liberal return policy. Also, Nordstrom had an army of highly motivated, self-empowered people with a high entrepreneurial spirit. Empowering the workers with all the freedom they needed is the most unique aspect about Nordstrom. While this is such a simple thing to do, many companies do not implement this with the fear that employees may screw up. The Nordstrom management feels that customers would get better products and services if workers are encouraged to use their mind and given freedom. Sales associates do virtually everything to make sure that the customer leaves satisfied.

While most companies prefer to stock the most probable sizes and not take the risk of costly inventories, Nordstrom stocks all sizes with its intension to appeal everyone. Some of Nordstrom employees also perform "Heroics", such as buying an apparel of customer's choice from the store across the street (because they had run out of her size) and selling it at the marked down price to her, only to provide 100% customer satisfaction. The employees don't have to ask anybody's permission to take such a decision. Also, the customers are in return very loyal to Nordstrom. Apart from empowering its employees, Nordstrom also provides them with commissions as a performance incentive. Also, sales associates are the most highly paid in Nordstrom when compared to the other apparel industries. However, only the strong willed and hardworking could survive in Nordstrom's competitive environment where there was urgency to complete and ferocious performance. Employees often had to compete with each other and departments, with one another, to meet the sales goals. However, if one liked working in an unrestricted environment, then this was the best place.

Another important reason for Nordstrom's success is the continuity of family management. The management even today takes the employees and their families on annual picnic, Christmas parties etc. These little gestures from the management, keeps the employees' spirit high during work. Also, the Nordstroms were highly approachable and even attended their own phone calls or returned the phone calls if not available.

CULTURE IN NORDSTROM:

Some of the key Nordstrom cultures that contribute to its success are:

* Empowering sales people and giving them the freedom to decide and even accept return merchandise without having to contact any higher authority.

* They are organized as an inverted pyramid with the customers at the top of the pyramid, followed by the sales and support people, followed by the department managers, followed by the store managers, buyers, merchandise managers, regional managers and general managers and then finally the board of directors at the very end of the inverted pyramid.

* The uniqueness is that all tiers of the inverted pyramid work to support the sales staff and not the other way round.

* The management believes that when people are given the leeway, they will do the right thing most of the times.

* This freedom also allows them to treat the customers, the way they want to be treated.

* They believe that curbing the creativity of employees by giving them standard rules and regulations will only result in monotony and poor performance.

* Their liberal return policy allows them to accept returns at any point of time after purchase. While some customers

...