Retail Observer

July 2015

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM JULY 2015 40 Elly Valas Retail Views Elly Valas is the Marketing Services Director for Nationwide Marketing Group. She can be reached at elly@ellyvalas.com or at 303-316-7569. Visit her website at www.ellyvalas.com. F or most of my business career, the terms leadership and management have almost always been used interchangeably. There was little discernment between the roles. Occasionally, there was a distinction made that was something like–you manage things but lead people. In that framework, managers were responsible for money, inventory, facilities, trucks, etc. Team members are expected to come to work, do their jobs and collect their paychecks. Very few have any real influence into the future or the direction of the business. More and more, though, I'm seeing clearly defined differences in business books, blogs, and other media. I just watched a video in which the speaker, Tom Flick, intimated that managers are tasked with making complexity simple—not with moving companies or people forward. He went on to say that most companies are "over managed" and "under led." In the past several decades, we've taken the emotion out of business. The numbers tell the stories—we're either winning or we're not. We either made money or lost money. Shareholder value either increased or went down. We struggle with too much inventory and too little cash. The bottom line is the bottom line. But the people working with you—your team—want to know more. As Flick put it, they're asking four questions of those who lead them. "Who are we?", "Where are we going?", "What does the future look like?" and "Can you take us there?" Your staff may not verbalize these questions, but if you begin to answer them, you'll start to build a different—and lasting—culture. Employees have natural anxiety—"If Sears is faltering, will we be next?" "With wages stagnating, how can I afford the things my family needs?" "Does the owner of my company have the drive, skills and knowledge to compete successfully?" LEADERSHIP CAN CHANGE ANXIETY INTO ACTION Leaders develop strategy and vision. Then they communicate those goals effectively to get buy-in from their teams. The people around the best leaders understand that the direction set forth will provide growth and opportunities for them—that they are a part of the evolution and change ahead. In my seminars, I often talk about my favorite leaders—people who made real change by getting those around them to follow them: President John F. Kennedy, Dr. Martin Luther King, Coach John Wooden, Mother Theresa, Winston Churchill, Rudy Giuliani, Mahatma Gandhi and Howard Schulz. These people dared those around them to share their dreams of a different world, a different kind of basketball team, a different coffee experience. Their dreams and their ability to get those around them to follow them landed a man on the moon, earned the UCLA Bruins 10 NCAA basketball championships in 12 seasons, passed the civil rights act and made the world love their coffee. Their dreams energized those around them. They seized an opportunity before them. Vision creates true urgency—like putting a man on the moon and bringing him back safely before the end of the decade. Or like Dick Schultz whose vision of something bigger than his struggling Sound of Music in Minnesota became Best Buy. Leadership cures complacency—that feeling of "this is all we can do in a small community like this." Look what Sam Walton did in those same small towns. LEADERSHIP MOVES FROM WHAT YOU ARE TO WHAT YOU CAN BE Leaders don't focus on obstacles but on opportunities. Not on "where will I get the money for a new store?" but on "imagine the volume I'll do in my new store with my great selection, competitive prices and knowledgeable associates?" And leadership is risk-taking—getting out of your comfort zone to seize big opportunities. In our business, stagnation is deadly. Ask yourself the questions your team members are asking. What kind of future do we have? What does that future look like? Are you the one who can get your business there? The answers will propel you—and those looking to you to lead them—to a future that may exceed your wildest dreams. STOP MANAGING... START LEADING RO

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