Leading Through Change The Company Founded in 1902, Target Corporation (NYSE:TGT) is an upscale discount retailer that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores. With 2015 revenue of $73.8 billion, Target has over 1,750 stores and 38 distribution centers in the United States, and 341,000 team members worldwide. Its online business can be found at www.target.com. The first Target store opened in 1962 in the Minneapolis suburb of Roseville with a focus on convenient shopping at competitive discount prices. Target currently is the second largest general merchandise retailer in America, with Target.com consistently ranked as one of the most-visited retail websites. The company continues to deliver on its brand promise of “Expect More. Pay Less.” Since 1946, Target has given 5 percent of its profit to communities, that giving today equals more than $4 million a week. Corporate Responsibility magazine has named Target on its “100 Best Corporate Citizens List.” Target is recognized as a leader in innovation across the retail industry. From pioneering the concept of designer partnerships to consistently being best in class in store design, Target remains focused on not only meeting, but exceeding its guests’ needs. To remain relevant to its guests over time, Target continually reinvents its stores, including layout, presentation and merchandise assortment, to create an engaging shopping experience and fulfill our Expect More. Pay Less® brand promise. Target stores are currently organized in a basic hierarchy that allows for reasonable amounts of cross training across workcenters. The Store Team Leader (STL) runs and has responsibility for everything within the four walls of the store. Stores also have Executive Team Leaders (ETLs) who function as departmental supervisors for large portions of the store; for example: the sales floor, or logistics. Each department has an hourly supervisor called a Team Leader and finally, we hire Team Members into primary departments and then cross-train as needed.
The Guest [Consumer] It’s not just about Mom anymore; it’s about the Demanding Enthusiast. These are Target’s core guests, and they’re digitally connected families who enjoy shopping and demand great value. Typical guests have kids in the household and lots of demands on their time, and are likely to live in urban areas. These guests actively shop in-store and online and are early adopters of new technology, shopping with one hand on their cart and one hand on their smartphone. They enjoy shopping and want to tell their friends, remaining engaged with social media while shopping and sharing their feedback and experiences online. They are often influenced by others and share
their findings to influence others. Guests love Target for its newness, its product assortment and its value. While browsing and making decisions are a large portion of the guest experience, today’s consumers demand great value as well as convenience. They have a wide range of retail choices, and are willing to hunt to take advantage of the best price, and are comfortable making spontaneous purchases. Retailers have answered this trend by partnering with mobile payment applications and shortening the number of steps required from browse to checkout, both digitally and physically. In terms of obtaining the purchased product, free shipping and in-store pickup are becoming increasingly important for online transactions, as well as length of time until product is received. For Target, the guest is at the center of everything. The company is continually developing new ways to serve the guest anytime, anywhere. Target’s purpose is to fulfill the needs and fuel the potential of our guests. Target today remains committed to providing a one-stop shopping experience for guests by delivering differentiated merchandise and outstanding value with its Expect More.
The Competitive Landscape Other retailers take various approaches to leading their teams through change. We look to the company’s core values, leadership principles, internal culture and the foundation upon which their teams are built as an indicator of how they will navigate their teams through change. Competitors are announcing new initiatives on a weekly basis that will transform and lead retail innovation, keeping them competitive and appealing to consumers. With continued emphasis on remaining a desirable employer with happy, diverse teams, consider the following competitive set of retailers while developing a transformational leadership strategy. Below are some insights to provide you a general feel of the leadership and cultural dynamics of a few of Target’s competitors. The leadership approach and cultural personality of a company will absolutely have an impact on how they lead their teams through change. Some companies cater more toward the needs/concerns of the employee, while others focus more heavily on what’s best for the business and the bottom line. Each approach has its unique set of consequences and payoffs. Amazon – On Amazon’s careers site they speak about the Amazon Leadership Principles. They paint a leadership culture that has a “customer obsession” and encourages leaders to challenge and disagree respectfully, but regularly. Additionally, these principles expect leaders to come forward with problems or information, even when doing so is awkward or embarrassing.
Nordstrom – Nordstrom’s career site states, “Happy employees lead to happy customers. That's why we took the traditional corporate pyramid (you know the one with the executives at the top?) and turned it on its head. With execs at the bottom and customers and those who take care of them at the top, we can focus on supporting our employees while they focus on creating great customer experiences.” Kroger – To accomplish its mission, Kroger’s website states they have has six values provide guidance to its employees about how they do what they do every day. Those values are:
Honesty - Doing the right things, telling the truth. Integrity - Living our values in all that we do, unified approach to how we do business and treat each other. Respect for Others - Valuing opinions, property and perspectives of others. Diversity - Reflecting a workplace that includes a variety of people from different backgrounds and cultures, diversity of opinions and thoughts. Safety - Watching out for others, being secure and safe in your workplace. Inclusion - Your voice matters, working together works, encouraging everyone’s involvement, being the best person you can be.
Wal-Mart – The Wal-Mart career site states, “When you walk through the doors of our company on day one, you’ll be greeted by a dynamic and supportive team. That’s because Mr. Sam built our company on a foundation of integrity, innovative business ideas and servant leadership. Today, you’ll find that the same family- and customer-driven values he introduced still hold true. We simply couldn’t do the work we do, on the global stage we call home, without being able to rely on and challenge each other.” openings.