awards to the best and the runner-up. It takes a lot of time and energy to
provide meaningful recognition but recognition fuels this place. We [co-
presidents] really do “manage by walking around”. I am hesitant to use an
expression like that because it too easily becomes a cliché. The sincerity
gets lost – and sincerity is very important around here. We discuss people
and performance a lot at my level. Recognition of a hot performer spreads
rapidly through our grapevine. Long before you meet a rising star, you
hear about him or her. We travel together to regional meetings and spend
most of the flight talking about people.’^28
Bob Nunn observes: ‘There is always a danger of a strong culture like
this turning inward, getting smug and self-congratulatory. I don’t rule that
out. Encouraging the customer to be demanding keeps us honest. So does
our own competitiveness internally. Everyone at every level is trying to
excel, beat another department or another store. Our biggest competitor
isn’t Macy’s or Bloomingdale’s, it’s one another. It’s part of the fun of
coming to work. I always try to stir things up. I regularly bet a shoe buyer
a dollar or a free lunch that I can get a greater increase in shoe sales nation-
wide today than he or she can get in their department. The department
manager upstairs in the Brass Plum owes me $4.00.’^29
What sets Nordstrom apart is the sophistication with which they have
blended financial incentives with recognition and peer pressure. This inter-
weaving achieves a fine-tuning of the motivational machinery that is
seldom encountered in Western companies. Other examples include:
●Salespeople are encouraged to keep scrapbooks of letters from customers.
These are reviewed when promotions are considered. Exceptional acts of
heroics earn citations, peer recognition, deep discounts on Nordstrom mer-
chandise and monetary awards. At the monthly regional meeting of buyers,
store managers and department managers, several sales personnel are invited
to acknowledge heroics which triggered a particularly positive customer
response.Their feats are described and awards made. One of Nordstrom’s co-
chairmen or co-presidents always attends these monthly meetings. The
Outstanding Store is selected monthly, based on customer praise and sales
results. This monetary award is given to the store manager, who hosts dinners
for major contributors or distributes spot bonuses to deserving individuals or
departments.
●Sales personnel whose yearly performance ranks them in the top 9 per cent of
Nordstrom system-wide are recognized as members of The Pacesetter Club.
Recipients receive a lapel pin indicating the number of years as a Pacesetter and
receive 30 per cent discounts on Nordstrom’s merchandise.The award is made
at a black-tie dinner, with members of the Nordstrom family attending. On a
monthly basis, All-Stars are selected as the high performer in their store.These
individuals are acknowledged at the monthly regional meeting and given sub-
stantial discounts on merchandise. Most prestigious of all is the ‘J.W.
The recruitment and internal market domains 395