What was the moment when you realized that our method didn’t work?
My journey on this dates back to the early 90’s. When I started Best Buy, the basic advice from investors and management was cut, cut, cut. Close the store. I will fire everyone. We did the opposite. We listened to the front liner. We treated staff reduction as a last resort. So philosophy was there from the beginning.
When we first think about how we want to be remembered as humans and think about business, most of us are drawn to the golden rule — doing good to our people. Employees will love the company if they can put that thought into their business operations. Customers will love the company.
What obstacles did you encounter when working to turn Best Buy around?
Our main challenges are: How do you create these new strategies? How can I get 100,000 people to accept them? People can talk about system changes. If you change yourself and change the way your company works, there’s a lot you can do and you don’t have to blame anyone. You don’t have to be a BCorp to do good things in the world.
Are there any specific actions that a company should take?
Start by providing your employees with an attractive environment and a range of opportunities. Raising the minimum wage is a very important trend, but it exceeds wages. It’s about the benefits of caring for employees, such as mental health and voting ability. It’s about progress, the path to skill acquisition. It’s about providing a growth environment where you feel you belong, an environment where your boss feels invested in you, and an environment where you can connect your work with what drives you.
Daily business briefing
Others are involved in making concrete plans to become carbon neutral and making sure you are a good member of the community in which you are active.
If a company intends to pay more workers and pay more taxes, does that mean, after all, less profit for business owners and investors? This is a difficult sale for those who currently have the greatest power to change these things.
In my experience, adopting this stakeholder approach can actually generate more shareholder value. It doesn’t always mean easy, it takes time. If in 2012 I told investors “I’m going to go to $ 15 an hour soon”, that wouldn’t be rational. So we took the time to do it. It’s like you can’t if I want to lose £ 20 overnight. time consuming.
Hubert Joly turned the best buy around. Now he is trying to fix capitalism.
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