How did Doug McMillon start his career at Walmart?

Doug McMillon began as an hourly summer associate in a Walmart distribution center in 1984. He later rejoined as an assistant manager and progressed through roles like buyer trainee before becoming CEO.

What is the 'Bait Mate' story?

During buyer training in 1991, Doug McMillon was hazed by colleagues to present a product called 'Bait Mate' at a meeting led by Sam Walton. He successfully negotiated a price reduction but was questioned by Walton about how fish could smell.

What lessons did Doug McMillon learn as a buyer?

He learned the importance of on-the-job learning, maintaining fair but tough relationships with suppliers, and always working on behalf of the customer. The handshake was often as binding as a written contract.

What books have significantly influenced Doug McMillon?

Doug McMillon frequently recommends 'Team of Teams' by General Stanley McChrystal, which emphasizes shared consciousness and empowered execution. He also mentions a book about Amazon for understanding competitive landscapes.

How does Walmart use Virtual Reality (VR) for training?

Walmart has implemented VR training academies with 17,000 headsets planned. VR is used for practicing soft skills like difficult conversations with avatar-based scenarios and for routine tasks like stocking shelves.

What is Doug McMillon's approach to managing competitiveness?

While highly competitive, influenced by his mother, McMillon acknowledges it can be detrimental. He plays basketball with friends and his son but struggles with losing, though he wishes to be a more nurturing figure.

Can you describe Doug McMillon's morning routine?

He wakes around 5:30 AM, reads a daily devotional, scans The Wall Street Journal and New York Times, and has CNBC playing. His breakfast is typically two fried eggs and toast.

How does Doug McMillon handle feeling overwhelmed or making big decisions?

He utilizes 'fire breaks' for strategic thinking, often involving drawing pictures or schematics on a whiteboard. He also relies on collective wisdom by asking questions and believes in trusting his convictions after thorough consideration.

What is 'treasure hunt' merchandising at Sam's Club?

It refers to offering unique, unexpected, and aspirational items (portable luxuries) alongside quality essentials, creating a sense of discovery. Examples include selling a jet or a Harley-Davidson motorcycle.

What shift in thinking has most improved Doug McMillon's life?

The most impactful change has been an increased openness to influence from others and a greater willingness to embrace change and take risks, realizing that rigidity hinders the company's future.

What was Doug McMillon's most memorable failure?

Early in his career as a chip buyer, he featured a new Frito-Lay lime-flavored Tostitos on the front page of a Walmart tab, unaware it wasn't available west of the Mississippi. This led to customer complaints and a crucial lesson in empathy.

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Key Moments

TL;DR

Walmart CEO Doug McMillon on leadership, change, and retail.

Key Insights

Walmart's immense scale and its impact on the global economy.

Douglas McMillon's journey from hourly associate to CEO.

The importance of continuous learning and adaptability in retail.

Leveraging technology like VR for employee training and development.

The foundational role of customer focus and fairness in business relationships.

Navigating complex decisions and managing competitive drive.

THE COLOSSAL REACH OF WALMART

The conversation begins by highlighting Walmart's staggering global presence. With approximately $500 billion in revenue, Walmart's economic footprint rivals that of entire countries. Serving over 265 million customers weekly across 27 nations and through more than 11,000 stores and online platforms, its scale is difficult to comprehend. The company employs 2.2 million associates, a workforce larger than the population of many major cities. A significant portion of its store management, about 75%, begins as hourly associates, demonstrating a strong internal growth path. Walmart also innovates, filing thousands of patents annually in areas like delivery and augmented reality, and has rapidly scaled services like grocery pickup.

MC MILLON'S PATH FROM ASSOCIATE TO CEO

Doug McMillon's personal journey with Walmart is a testament to its opportunities. He started as an hourly associate in a distribution center in 1984 and rejoined as an assistant manager in 1990 while pursuing his MBA. His early training as a buyer, marked by a memorable anecdote involving 'Bait Mate' and Sam Walton's probing question about fish smelling, underscores the principle of learning on the job. McMillon emphasizes that in his early career, a handshake and a word were often as binding as a contract, stressing tough but fair dealings with suppliers to ensure mutual long-term growth, a philosophy that has allowed suppliers like P&G to thrive alongside Walmart.

THE IMPERATIVE OF CONTINUOUS LEARNING AND ADAPTATION

In the rapidly evolving retail landscape, continuous learning is not just beneficial but essential for survival. McMillon shares his voracious reading habits, citing 'Team of Teams' by General Stanley McChrystal as a significant influence, which advocates for shared consciousness and empowered execution. He notes that a substantial portion of his time is dedicated to understanding emerging areas like US healthcare reform and becoming a digital enterprise, recognizing that past successes do not guarantee future relevance. This proactive approach to learning is crucial for positioning Walmart for the next 50 years, emphasizing that curiosity and adaptability are vital for navigating constant change.

TECHNOLOGY AS A TOOL FOR EMPOWERMENT AND EFFICIENCY

Walmart is actively integrating technology to enhance both customer experience and associate development. A notable initiative is the use of Virtual Reality (VR) for employee training. Stores are being converted into training academies equipped with advanced technology, including VR headsets. These allow associates to practice difficult conversations, develop soft skills, and learn routine tasks in simulated environments. For instance, VR can be used to train associates on stocking perishable goods or handling customer interactions without direct customer interruption. This approach not only improves skill acquisition but also prepares the workforce for evolving job roles, with plans to deploy 17,000 VR headsets.

BALANCING COMPETITIVENESS WITH EMPATHY AND HUMILITY

McMillon acknowledges his intensely competitive nature, inherited from his mother, which he applies to sports and business, sometimes leading to a desire to channel that energy more constructively. However, he also emphasizes the importance of humility and learning from mistakes. He recounts a significant early career failure as a chip buyer, where an over-enthusiastic placement of lime-flavored Tostitos in print tabs backfired due to regional supply issues. This experience taught him the value of empathy, the significance of a single word of encouragement during difficult times, and the critical need to learn from errors rather than being defined by them. He finds that drawing pictures and using whiteboards helps him process complex strategies.

NAVIGATING CHALLENGING DECISIONS AND EMBRACING RISK

Making significant strategic decisions, such as large-scale acquisitions like Flipkart, involves considerable self-doubt and careful consideration. McMillon describes the process of weighing beliefs about market potential, like India's growing digital economy, and evaluating the capabilities of partners. He believes that to make bold moves necessary for growth, one must hold firm convictions about the future. This willingness to embrace calculated risks is a mindset shift that starts at the top; he acknowledges a personal change from being highly routine-oriented to becoming more open to change and risk, recognizing that this flexibility is vital for Walmart's continued success and inspires similar behavior throughout the organization.

PERSONAL ROUTINES AND SELF-CARE STRATEGIES

Despite a demanding schedule, McMillon prioritizes personal routines and self-care to sustain his demanding role. His typical morning involves a daily devotional, reading the Wall Street Journal and other news, followed by breakfast. He emphasizes the importance of sleep and protecting family time, acknowledging that personal relationships are a significant priority. When feeling overwhelmed, he utilizes 'firebreaks'—scheduled periods of quiet reflection or strategic thinking, often involving visual aids like whiteboards to map out problems and solutions. This practice balances deep thinking with collaborative input, ensuring both clarity and forward momentum in his complex leadership role.

THE POWER OF 'FIREBREAKS' AND LISTENING

McMillon’s 'firebreaks' are crucial for mental replenishment. These are not just moments of rest but intentional periods set aside, sometimes for several hours, dedicated to deep thinking, often involving drawing schematics or engaging in strategic discussions with colleagues. He highlights that during these times, he prioritizes listening, viewing prayer not as speaking but as receiving guidance and insights. He believes that recognizing a higher power and relinquishing excessive control are key to navigating overwhelming situations. This practice allows him to discern when to act and when to listen, a strategy that he finds has been both personally beneficial and valuable for the company.

THE LEGACY OF A MISTAKE AND THE FINAL MESSAGE

Reflecting on his past, McMillon identifies a significant 'favorite failure' which occurred early in his career as a chip buyer. His misjudgment in featuring a new Frito-Lay product across the entire US, unaware of its limited regional availability, resulted in widespread customer complaints. This error led to a period of intense social isolation within the company, but it was a moment of encouragement from a colleague that helped him learn empathy and resilience. His final message, intended for a metaphorical billboard reaching billions, is centered on the idea of 'Shop at Walmart,' encapsulating the company's purpose and reach.

Mentioned in This Episode

●Products

●Software & Apps

●Companies

●Organizations

●Books

●People Referenced

Common Questions

In fiscal year 2018, Walmart had $500 billion in revenue, exceeding the GDP of countries like Belgium. It serves 265 million customers weekly across 27 countries and over 11,000 stores worldwide.

Topics

Business & Entrepreneurship Leadership & Management Change Management Personal Development Decision Making Business Growth Supply Chain Management Retail Strategy Career & Skills Employee Training Corporate Leadership

Mentioned in this video

Companies

A professional networking platform advertised as the best way to find qualified job candidates and grow a business. A new hire is made every 10 seconds using LinkedIn.

Gettcom

A company acquired by Walmart that experienced significant losses, mentioned as an example of a risky acquisition decision.

Walmart

A global retail corporation with approximately $500 billion in revenue, serving 265 million customers weekly across 27 countries and over 11,000 stores.

Procter & Gamble

A supplier that, even after many years, continues to make more money than Walmart, illustrating the success of a fair but tough supplier relationship.

Dollar General

A retailer that reportedly started in the same year as Walmart, Kmart, and Target, indicating a period of significant retail innovation.

Sam's Club

A division of Walmart previously led by Doug McMillon as CEO, generating over $46 billion in annual sales during his tenure.

Target

A retailer that, along with Walmart and Kmart, started in 1962, illustrating the dynamic nature and potential for disruption in the retail industry.

Kmart

A retailer that, along with Walmart and Target, started in 1962, highlighting the historical evolution and potential demise of retail companies due to complacency.

Sears

A historical retail giant discussed in the context of companies that were once dominant but underestimated newer competitors like Walmart.

Flipkart

An Indian e-commerce company partially acquired by Walmart for $16 billion, representing a significant bet on the growth of India's digital market and its ecosystem of businesses.

Frito-Lay

A snack company whose lime and chili flavored Tostitos launch west of the Mississippi caused a significant, albeit temporary, career crisis for Doug McMillon early in his career.

People

Alexis Ohanian

Co-founder of Reddit, who once had a quote from Yahoo executives about being a 'rounding error' displayed to his team as a motivator.

Doug McMillon

President and CEO of Walmart. He started at Walmart as an hourly associate and worked his way up to CEO, previously leading Sam's Club and Walmart International.

Mike Duke

Doug McMillon's predecessor, whose disciplined approach to international travel planning served as a model.

Junior Campbell

A divisional merchandise manager who offered crucial encouragement to Doug McMillon after a significant early career failure.

Sam Walton

Founder of Walmart, who started the company with one small store in Bentonville, Arkansas, in the 1950s.

Lou Holtz

Former head coach of the Arkansas Razorbacks and Notre Dame, who Doug McMillon humorously asked for advice on fixing Razorback football.

Dave Duyvil

A former supervisor of Doug McMillon at Walmart who emphasized the importance of a handshake as a contract.

Greg Foran

A leader within Walmart's US team who helped implement training academies and VR training programs.

Ivanka Trump

Expressed interest in Walmart's workforce training programs and participated in a VR training simulation for stocking the vegetable wall.

Mark Lori

A person associated with Walmart who participates in 'meeting week,' where distributed teams come together to align strategies.

Stanley McChrystal

Author of 'Team of Teams', whose principles on shared consciousness and empowered execution are valued by Doug McMillon.

Tony Dungy

Author of a daily devotional book that Doug McMillon reads as part of his morning routine.

Ray Dalio

Author of 'Principles' (presumably), which Doug McMillon is currently reading at the request of Walmart's Chairman.

Judith McKenna

A leader within Walmart's US team who helped implement training academies and VR training programs.

Bill Fields

The chief merchant at Walmart whom Doug McMillon had to inform about a major advertising tab mistake early in his career.

Shaquille O'Neal

A famous basketball player who Doug McMillon encountered at the office, illustrating the varied and unpredictable nature of his daily interactions.

Books

The New York Times

A newspaper that Doug McMillon glances at as part of his morning reading routine.

Team of Teams

A book by General Stanley McChrystal that Doug McMillon frequently gives out, emphasizing principles like shared consciousness and empowered execution, crucial for dealing with complex organizations and change.

The Wall Street Journal

A publication where 'treasure hunt items' at Sam's Club were reportedly mentioned, highlighting unique and aspirational products.

Organizations

Crystal Bridges Museum of American Art

A museum in Bentonville, Arkansas, mentioned as a fantastic venue and an incredible location.

Business Roundtable

An organization on whose Executive Committee Doug McMillon serves.

Consumer Goods Forum

An organization on whose board of directors Doug McMillon serves.

Tsinghua University School of Economics and Management

An institution in Beijing, China, on whose advisory board Doug McMillon serves.

US-China Business Council

An organization on whose board of directors Doug McMillon serves.

CNBC

A financial news channel that Doug McMillon follows during his morning routine.

Products

Bait Mate

A fishing lure spray that supposedly makes fish think the lure is more real, intended to increase strikes. It was part of a buyer training "hazing" story.

Software & Apps

PhonePe

A payment system and part of the Flipkart ecosystem in India, showcasing the diverse digital businesses being developed in the region.