Achievements
When Blake Nordstrom became president, he launched an aggressive new strategy that introduced newer computer technology for tracking sales and inventory while reviving the company's longstanding commitment to customer service. Within four years he had improved Nordstrom's profitability. Its sales and stock prices had risen measurably by 2004, which allowed Blake to turn his attention once again to expanding the chain into new locations. In 2004 Blake Nordstrom was named one of the 50 most powerful people in Washington.
Career Highlights
Even though Blake was a member of the Nordstrom family, however, he did not receive preferential treatment. He worked in the stockroom of the shoe department in Nordstrom's flagship Seattle store at the age of 13, along with several other Nordstrom children. By working hard at the lower levels of the company's hierarchy, Blake rose quickly through the ranks from salesman and buyer to merchandise manager and store manager. In 1991 he was named vice president and general manager of Nordstrom's Washington and Alaska region. Four years later he shared the position of president with five other family members - a management experiment in dividing responsibilities. Blake then became president of the Rack Group - a discount store unit - in February 2000, when Nordstrom was reorganized into five separate units. Blake succeeded in raising the sales of the Rack Group by nearly 20 percent within the first few months of his presidency.
When the long-time chairman John Whitacre resigned as CEO, Blake at the age of 39 took the position of president and his father became chairman. The company left the CEO position open and has not since filled it. Blake and his father assured the analysts, however, that they were carefully reviewing every aspect of the business and were determined to make it profitable once again.
Blake slowed the pace of new store openings, improved the company's use of technology, and reemphasized Nordstrom's personalized service culture to bring back disenchanted customers. But even while catering to Nordstrom's customers, Blake also remembered the company's shareholders. He was as serious about raising the price of Nordstrom's stock as he was about improving service.
Leadership Experience
Blake attributed his success to his policy of listening to and supporting his sales force rather than ordering them to perform. "We believe in an inverted pyramid where management is on the bottom and salespeople and customers are on the top," he says.
Under Blake’s leadership the company concentrated on hiring “nice people”, because it is much easier to teach a nice person selling skills and how to use “point of sale” equipment then it is to teach “niceness” to someone who knows how to complete the paperwork for a sales transaction. Nordstrom gave these nice people the freedom to dump the rules and do whatever it takes to make the customer happy - and management supported them in those decisions. Sales people received constant pep talks from management and were empowered to take ownership and be entrepreneurial self-starters.
Background Links
Blake Nordstrom Bio, UW Business School
Robert Spector, Nordstrom Is More Than a Name, It's a Culture, Puget Sound Business Journal, September 29, 2000
Can the Nordstroms Find the Right Style?, BusinessWeek, July 30, 2001
