Paper: Construct a few page paper answering the two questions posed on page 277 The Art and Science of Leadership. And consider how you might apply the concepts from this week's readings and other materials to your own workplace. Please answer the 2 questions at the bottom of the page in the picture.

whole Foods ha stakeholders 276 Part III . Leading alqaid) cam-member ha with team me -seated belief i LEADERSHIP IN ACTION king at Whole JOHN MACKEY OF WHOLE FOODS Self-directed te "I am now 53 years old and I have reached a place in my life where I no longer want to work Increased comn for money.... Beginning January 1, 2007, my salary will be reduced to $1, and I will no lon- that allow emp ger take any other cash compensation" (Mackey, 2007). The statement is part of a letter John Mackey, the founder and CEO of Whole Foods, wrote to his employees when the sales were Profit- and gai below expectations and the stock prices dropped. Mackey says: "We're trying to do good. team through And we're trying to make money. The more money we make, the more good we can do." stock options) His company and a highly unique management style are a model of innovation and cus- total compens tomer service around the world. He considers his company and his over 50,000 employees Employee hap to be his children, says he does things for fun, and is considered by some to be a "right-wing do volunteer hippy" (Paumgarten, 2010). His views, which he calls conscious capitalism, see business sibility for su as having a higher purpose; he states: "We're trying to do good. And we're trying to make money. The more money we make, the more good we can do" (Paumgarten, 2010). Continuous le Although he says that his views and those of his company do not always match, he believes Promotion fr that: "We're changing the experience (of shopping) so that people enjoy it" (Sechler, 2004: 1). a strong equa With bright facilities, wide aisles, rich colorful displays, expert employees, and lots of help and information for customers, Whole Foods has changed the way many people shop for Although the food. John Mackey started the company in 1980 in Austin, Texas, with the first organic food success, compe store; it now numbers more than 150 stores with earnings of nearly $3 billion and is making to their team's a move to become a global company with the first store opening up in the United Kingdom wants his com (Duff, 2005). forefront repre "Mackey is hardly a manager at all .. .he's an anarchist" is how a former Whole Foods that continue t executive describes the company president (Fishman, 2004: 73). The CEO, who is now in his 50s, visits his stores in shorts and hiking boots and is equally as passionate about egali- accuse him of tarianism and democracy in the workplace and the humane treatment of animals as he is in eled at the co his opposition to the new U.S. health-care plan (Mackey, 2009). He interacts freely with holy foods" ( employees and is eager to learn from them and from his customers. Wendy Steinberg, who had to apolog has worked at Whole Foods since 1992, describes him as an "observer" (Fishman, 2004: 76). name) to bash A vegan, who changed his vegetarian diet to exclude all animal by-products after working with a group devoted to improving living conditions for farm animals, he still flies commer- Questions cial airplanes, rents the cheapest cars, and is a shrewd and disciplined businessman leading his company and employees to considerable success (Fishman, 2004). Much of that success L. What are is attributed to Whole Foods' team-based culture that empowers employees and involves 1. What mal them in all aspects of decision making while demanding performance and customer service. The basic decision-making power at Whole Foods rests with the teams that run each Sources: Duff, department (e.g., bakery, produce, seafood) in each store. The teams decide whom to hire, The anarchist whether to retain members, what products to carry, how to allocate raises, and so forth. All teams together also make strategic decisions, such as the type of health insurance the com- itmary, 1 12 pany will offer. The National Leadership Team of the company makes the overall decision based on majority vote. Mackey says, "I don't overrule the National Leadership Team.... B10% Overt I've done it maybe once or twice in all these years" (Fishman, 2004: 74). He admits making some top-down decisions, but only when time to consult is not available.Chapter 8 . Leading Teams 27 Whole Foods has a "Declaration of Interdependence" that affirms the interdependence of all stakeholders and clearly states the goals of satisfying and delighting customers and of team-member happiness and excellence (Whole Foods, 2013). Building healthy relation- work Tips with team members, getting rid of the "us versus them" management mentality, and a Ion- deep-seated belief in employee participation are also highlighted. The core values regarding working at Whole Foods include the following (Whole Foods, 2013): vere Self-directed teams that meet to solve problems and appreciate members Increased communication through open-book management and "no secrets" management that allow employees access to financial data, salary and raise information, and so forth Profit- and gain-sharing to provide team members incentives to perform and build the team through shared fate (nonexecutive employees hold 94 percent of the company's stock options); a salary cap that limits the salary of any team member to times the average total compensation of all full-time team members Employee happiness through fun and friendship at work with liberal dress codes, ability to do volunteer work on company time, full health benefits, and emphasis on taking respons sibility for successes and failures and celebration and encouragement of employees Continuous learning for employees about the products they sell and the job they do . Promotion from within to appreciate and encourage employee talent and development and a strong equal opportunity policy Although the positive work culture, fun, and friendship are key to the company's ongoing success, competition and focus on performance are not lost. Because individual raises are tied to their team's performance, team members want good workers on their team. Mackey, who wants his company to be based on love rather than fear, is also clearly in charge and in the forefront representing his company in the community. As he battles the animal rights groups that continue to criticize Whole Foods for being hypocritical and counterculture groups that accuse him of having become too corporate, or defending against the antiunion charges lev- eled at the company. Mackey responds, "We're in the business of selling whole foods, not holy foods" (Overfelt, 2003). The corporate side of the CEO became clearly evident when he had to apologize for having assumed an online alias "Rahobdeb" (an anagram of his wife's name) to bash his competitor Wild Oats Markets for years (Kesmodel, 2007; Stewart, 2007). wifi somber Questions 1. What are the elements of John Mackey's leadership? 2. What makes the teams at Whole Foods effective? Sources: Duff, M., "The perils of the imperial reach," DSN Retailing Today 44, no. 1 (2005): 10; Fishman, C., 2004. s cookbook," Fast Company, July: 70-78; Kesmodel, D., 2007 "Whole Foods sets probe as CEO "The anarchist's cook apologizes," The Wall Street Journal, July 18: A3; Mackey, J., 2007 "I no longer work for money," Fast Company, ple foods alternative to ObamaCare," The Wall Street Journal, August 72865070.html (accessed April 16. February