17 November 2010

"Retail Is War Without Blood": What Foot Locker's CEO Learned in the Army


Ken Hicks, the CEO of Foot Locker, formerly the president and chief merchandising officer of J.C. Penney's, graduated from the United States Military Academy and spent six years in the army just after the Vietnam War. HBR talked to Ken about how his time as a young officer prepared him for a career as a retail executive.


Tell me about a couple of things you learned from your military experience that have made you a more effective CEO.
When I took over my artillery battery, at age 25, I could shoot a cannon better than any of my section chiefs. And I had six guns. The only problem is, I could only shoot one gun at a time. I realized that what I had to do was train my section chiefs to be better cannoneers than I was. Because shooting 18% of the battery isn't going to be effective. And my job really wasn't to shoot a cannon, it was to develop an entire artillery battery.

So I learned that you're very dependent on your people to be their best. You train and develop and motivate them. People think in the army that you tell somebody to do something and they do it, and that's far from the truth. They actually have more options and pressures that can be very intense. Think about it — if somebody in Afghanistan screws up, they get sent back home. If they don't, they stay in combat.

To be a successful leader, you have to understand what skills are required and be competent at them, and you also have to have confidence. Sometimes people mistake confidence for leadership, or competence for leadership, but it takes both of them together.

Do you see any connections between how the military and the retail industry operate?
In retail and the military, you're very dependent on the people at the front or the selling floor. You realize how important the sale associate is. It's the same thing in the army; you're very dependent on your privates and specialists, and so you talk with them and learn from them. Six or eight months after I'd left J.C. Penney's, I was in a Penney's store looking at some merchandise, and an associate recognized me and came running across the floor to say hello. She remembered me because I'd treated her with respect and listened to her. That's what you have to do to inspire people. The people on the selling floor, just like the cannoneers, the gunners, and the infantry, are the ones who make everything happen.

How do you stay connected to frontline employees, besides going out and talking to them?
Recognition. I send out a little note card every month to the employees who perform best, thanking them for doing a good job. If you think about the military, people are willing to give their life in defense of the country and their friends, and what do they get for it? They get a ribbon on their chest. Everybody thinks recognition needs to be a big bonus or a promotion. It really doesn't. What you learn in the military is people do their work because they trust and respect you and they want you to be able to recognize them for that. I send out these cards and the next thing you know, they frame them and put them on the wall in their stores or their cubicles because it's important to them.

What else has made you successful as a senior leader?
Learning and studying each situation. When I was in the Army I had the opportunity to have lunch a couple of times with Omar Bradley. Here's a guy from history who led troops across Europe and commanded the war in Korea, and people would always ask him, who is the greatest general you served with? And he would say the greatest field commander was Patton. That's because Patton did his homework, he studied the map, and he knew where the enemy was going to be and where they needed to go. It's the same in business. You have to study the numbers and constantly try to understand where the opportunities are and how you can go after them.

I've got on my wall in my conference room the principles of war. And each of the principles of war apply in business. For example, mass: don't spread your troops out, don't spread your resources too thin. Unity of command: know who's in charge, who has responsibility and who doesn't. Security: don't be surprised, study the competition, know what's happening. I worked with a retailer who said, "Retail is war without blood." You study and spend a lot of time understanding the competition's situation. You learn not to overreact.

How do you communicate a clear mission?

You have to constantly reinforce it, so people always know why you're doing what you're doing: we're going after this because of that. Then people know why they're there and what they need to focus on and what they should do. You can empower them. One of the differences between our army and the Soviet army was that our tanks all had radios; every tank could communicate with every other tank. You could see the difference that made in mock battles. In the Russian army, the tank commander had a radio, and the platoon leaders, and all the other tanks just followed the leader and did whatever the leader wanted. If something happened to the leader's tank or they were lost, they didn't know what to do.

I assign a lot of projects to people and say, here's what we want to accomplish. You're the lead; you have responsibility. You bring the resources to bear, and let's accomplish it.

You're in a pretty volatile industry. How have you adjusted the way that you go about planning to take into account the rapid nature of change?
Constant communication and watchfulness. When I was in the army I was in a cavalry regiment, and one of the cavalry's jobs is to go out and scout. I send people out to our competitors' stores all the time. We look at the competition, the press, any venue we can think of where we will see new ideas and new things.


by This post is part of an HBR Spotlight examining leadership lessons from the military.

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