NEW ORLEANS -- The volatile business climate created by consolidation, mergers, downsizing and new store formats is turning entire companies into pressure cookers, where the byproducts of organizational change and stress are filtering down to alienate customers and stockholders alike.
Retailers able to recognize this state of affairs, and manage the challenges effectively, are best positioned to succeed as dramatic change continues to buffet the industry, said Michael Julian, chief executive officer of Jitney-Jungle Stores of America, Jackson, Miss.
Speaking during a keynote presentation here last week at the Information Systems Conference, Julian emphasized this is not the first time the supermarket industry has experienced this type of stress.
"Organizational change has always been here, but consolidation has accelerated this timetable, causing it to move faster in the last few years," he said during the conference, sponsored by the Food Marketing Institute, Washington. "The best way to manage change is to dig in and work with it, not fight it. We need to adjust our methodology and manage this stress."
Retailers unwilling to adapt their business processes and strategies -- and manage the resulting stress that inevitably comes with change -- will find themselves with employees who are working harder but achieving less.
"There is a difference between responsibility and accountability," Julian said. "Responsibility is attacking the task at hand and working harder, but accountability is producing results in the process."
To illustrate his point, he cited the limitations of a baseball pitcher who works hard on his explosive fast ball, but neglects to develop additional skills.
"This strategy works great the first year the player pitches for the league, but it doesn't take long before opposing players know what to expect, and realize the pitcher can't throw a curve ball," he said. "By working harder on the same level, you quickly will see you are falling farther behind."
Keeping pace and getting ahead requires retailers not only to put in support mechanisms to help employees, but also to insure customers receive exceptional service and stockholders are kept satisfied.
"We need to be able to balance all three," explained Julian. "Some may say the stockholder shouldn't come first. Well, if you stick them third or fourth on the list, wait and see how long you will remain in this conversation.
"Good management needs to confront change, and attack the future," he added. "We must generate the results the stockholders expect, give customers the service they want, and insure the longevity of our organization for our associates."
Julian's message was well received by information technology executives, who told SN they are struggling with many of the same issues.
"It is nice to hear that we are all in the same boat when dealing with the best practices needed to handle change," said Ron Waldbillig, assistant vice president of management information systems for Hy-Vee, West Des Moines, Iowa. "The important factor is that we all need to recognize the best ways to focus on the issues, and execute the proper business practices."
Other retailers plan to put Julian's advice to use. "Change is something we reflect on all the time," said Maria Fidelibus, vice president of information technology for Genuardi's Family Markets, Norristown, Pa. "We need to bring this information back to our office, put it in perspective, then decide how we can use this information as we move forward."
One conference participant pointed out that work-related stress is intense enough as it is, but when personal stress and family obligations come into play, problems can quickly accelerate.
"If a point-of-sale system is down, or orders are not being transmitted to the warehouse, IT needs to fix these problems. It is our immediate responsibility to react to these and other stressful situations," said the participant, who requested anonymity. "However, if you combine personal anxiety, family or other obligations, stress can seem intensified. I plan to share this insight with my department, and use it as a guideline to manage career-related stress."
Looking ahead, Julian questions what the future holds for an industry certain to face continued consolidation.
"I am often asked if I think there will eventually only be six supermarket chains in the industry. The answer is, 'I do not think so.' I do think there will be fewer big companies, and the medium-sized companies like Jitney-Jungle are in trouble, because it is going to be tougher to beat a $2 billion company rather than a $100 million company," he said.
"If I knew what the future held for the supermarket industry, I would be able to go to the fairground and pick the winner of the third race," Julian said. "I do know that every associate needs to lead the segment they impact. If you cannot do that, you need to step aside, because high-velocity change is here to stay."
