Leadership sets the culture for a thriving retail brand

Wow - this article is just made for students who would appreciate an up-to-date, but definitely non-textbook example of how to use HRM effectively in a retail business…

Superb stuff. This article in Management Today is well worth several readings from a teacher perspective and could make a very relevant lesson or homework assignment.

In essence it is an interview with the CEO of Timpsons. But dig into the article and you’ll find a rich seam of classic A2 business studies material, particularly focusing on the strategic role of HRM, and the importance of leadership and strong culture in a multi-site service business.

Just looking at the notes I jotted down in the first couple of read-throughs:

- The businesse employs many convicted criminals!

- The private ownership structure of the business enables the directors to take decisions that they would be less able to do as a public company

- The shop staff are at the top of the organisational stucture - everything else in the business is designed to support shop staff

- A large-sclae business (3,000 employees) - but less than 10 people in the HRM department!

- “Timpson regards HR structures as disruptive to his business because he prefers to operate in an open, uncomplicated way with what he describes as an “upside-down management structure”.”

- Store staff are empowered to run their own local business - they can haggle on price with customers

- Recruitment is tailored to get the right kind of people to run those shops (person specifications) & careful training of area managers. 50% of recruitment is via an “introduce a friend” scheme!

- Bonus scheme - staff get 15% of the amount they sell above their target

- On staff policies: ““It’s done by me and my dad. It’s called culture. I’m the ambassador of culture.”

- The role of intuition in leadership and decision-making: the two key leaders in the business make decisions they instinctively feel are right, based on spending the vast majority of their time travelling around the Timpson stores