had the soul of an operator, someone who wants to make things work well,
then better, then the best they possibly can."1 His organization was really a
"store within a store," encouraging department managers to be accountable
and giving them an incentive to be creative. Successful experiments were recognized
and applied to other stores. One example was the "people greeter," an
associate who welcomed shoppers as they entered the store. These greeters
not only provided a personal service, their presence served to reduce pilferage.
The "1O-Foot Attitude" was another customer service approach Walton
encouraged. When the founder visited his stores, he asked associates to make
a pledge, telling them, "I want you to promise that whenever you come within
10 feet of a customer, you will look him in the eye, greet him, and ask him if
you can help him."2
In return for employees' loyalty and dedication, Walton began offering profit
sharing in 1971. "Every associate that had been with us for at least one year,
and who worked at least 1,000 hours a year, was eligible for it," he explained.
"IJsing a formula based on profit growth, we contribute a percentage of every
eligible associate's wages to his or her plan, which the associate can take when
they leave the company, either in cash or in Wal-Mart stock."3 In 2001, Wal-
Mart's annual company contribution totaled $+ge million.
Wal-Mart also instituted several other policies and programs for its associates:
incentive bonuses, a discount stock purchase plan, promotion from within,
pay raises based on performance not seniority, and an open-door policy.