How Good Governance Help You Boost Your Business?

Sense of good governance in some people is innate

, which set an example to study by others to learn it. The success story of Traders Joes is a story of self conceived idea of good governance adopted by common sense in face of growing competition with its with rivals in the market. Interestingly, Joes approach is one the most modern approach of internal organizational eco-system.

What was Joes Approach?

And

What is internal organizational eco-system?

Coulombe Joe founded Trader Joes, upscale specialty supermarket chain in 1967. There were around 7 to 11 supermarket chains already in the market. He might be contending to run his business on the conventional way and earn whatever fate dropped in his lap. But Joe was not sit- and-see type business. He wanted to excel. So he thought out some thing different. He changed his strategy in two ways:

1.He decided to supply all the variety of wine, drinks, and gourmet products for his customers in his stores. He provided all the variety available to him in California. To cater his customers more in the same direction he offered foods which go with such drinks like bread, crackers, cheese, fruits and vegetables.

2.a)He introduced a new environment in his superstore for his salespersons and employees. He believed in cultural based norm and values. He decentralized them. He gave his employees and salespersons confidence to deal and cater customers on their own. He made them free to make their own decisions regarding customers. This approach made the employees feel a sense of ownership of their superstore. He allowed them to develop personal relations with the customers and come on first-name terms.

b)To enhance his approach even further he interlinked promotion of the employees with to performance of their services. Now, not only the environment became friendly and home-like but the employees instinct to boost the business for promotion stood alive. There was a healthy competition among employees without rivalry, which enhanced the overall business to new heights.

c)Joe decided to pay his full time employees $7000 a year in 1960 which is now $48,000 today. This was surprisingly high salary to what the other superstores offered. He offered the sales managers, whom he named captain, maximum up to $100,000 a year including salaries and bounces. Now no experienced employee ever thought of leaving Joes superstore in favor of some other.

Soon Joes innovative measures paid off. The customers appreciated his moves. They loved to buy the specialty items from his superstore from their salespersons-cum-friends.

Internal organizational eco-system:

Joes approach was internal organization eco-system approach. The internal organization eco-system discourse emphasis on inter -connectivity, inter-dependence, and moral values and sprit of leadership. Its aim is to foster distributed leadership at local levels, to encourage Leadership from the margin and build networks that are responsive and can be adaptive to possible changes.

This approach helps to provide space for thinking and making personal decisions on the basis of the confidence given by the good governance of the owner or leader of the organization. It helps to break silo culture. Let the employee feel free. He is not just an organ of the body but a part of the brain.

Good governance has adopted this new approach, will you?

by: Anna Williams

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