Square) as a separate small business. Within it, the salesperson is expected
to set and achieve sales goals. Nordstrom’s ‘policy manual’ is a 3 ×5 card,
which says: ‘Rule #1: Use your own good judgment in all situations. There
will be no additional rules.’ (See Figure 5.3.4.) As noted earlier, sales per-
sonnel are very highly valued in the stores and broadly supported. But it
would be misleading to omit the tensions that are kept in play which drive
peak performance.
Sales personnel, as well as buyers, merchandisers and managers at all
levels, are heavily incentivized. At the centre is Nordstrom’s sacrosanct
measure: sales per hour per employee, or ‘SPH’ as it is known. It is the
primary yardstick of sales goals and sales quotas. Reports of SPH are
shared publicly within each store and posted on bulletin boards, where
every salesperson can see their ranking in the pecking order. Most compare
themselves to others within their store as well as with like departments of
other stores within their region. This same information, undistilled, is
given to the co-presidents and co-chairmen [Yes, SPH by employee, as well
as a few other key indicators, is shared from top to bottom of the corpora-
tion in a very public fashion.] (See Tables 5.3.4 and 5.3.5.) A salesperson
from the San Francisco store states: ‘I used to work at Macy’s. They didn’t
share any of the numbers, so when a buyer or store manager seemed
stressed we didn’t know why. Here we are all working off the same play-
book. I know where I stand, where my department stands and how the
store stacks up in the region. It makes me feel part of the team.’^24
While many Nordstrom employees view selling as their ultimate calling
(top performers earn up to $100,000 per year), a few aspire to move up the
career ladder. To do so, one must work up from the sales floor. The first
The recruitment and internal market domains 389
We’re glad to have you with our Company.Our number one goal is to provide
outstanding customer service.Set both your personal and professional goals high.We have great
confidence in your ability to achieve them.Nordstrom Rules:
Rule #1:Use your good judgment in all situations.
There will be no additional rules.Please feel free to ask your department manager, store manager
or division general manager any question at any time.Figure 5.3.4 Welcome to Nordstrom.