Charting a course, staying on it

by Larry Meyer
MRA Chairman and CEO

Nautical imagery appeals to my background as a Navy officer. So I understand it when a person or business talks about charting a course to reach distant horizons. Planning for management succession is an example of course charting.

Any forward-thinking organization must put in place a management succession plan that assures success and avoids risk. That’s why the Board of Directors and I have put in place a plan that names James P. Hallan, MRA’s talented, long-time president and chief operating officer, as the next Michigan Retailers’ CEO.

The next two years will be a transition period, and at the end of 2007—after 35 years at the helm—I’ll step down, knowing that Jim is more than ready and able to take over as CEO.

Why announce this now, almost two years before I leave? For one thing, I wanted to share this news with our membership so that, by the end of 2007, the change at the helm will be that much smoother.

It also sets an example of long-range planning that every business ought to be doing in some form. It’s not enough to get through the day or the month—you have to know where you want to be in 10 years if you want to have any hope of getting there.

No one can predict exactly what storms, doldrums or high winds lay ahead for Michigan’s economy or for our industry. That’s all the more reason to keep checking that horizon and making sure we stay on course.

While we’re talking about leadership, I’d like to share three of my favorite guiding principles. If they’re as useful to you as they have been to me in my career, you’ll thank me.

1) If you’re standing still, you’re going backwards. It’s not enough anymore (if it ever was) to be doing things as well as you were last year or last month—how can you improve, what can you add or adjust to ensure your growth?

Maybe in 2006 that means attending MRA’s retail education conference or making the switch from gift certificates to gift cards. Maybe it means making a phone call (800.366.3699) to find out how much you can save with the new MRA shipping program or reexamining your business’s health or dental plan.

2) There’s no such thing as too much communication. Are you in regular, constant communication with your colleagues and staff? More than just in formal meetings and reviews, do you casually ask all levels of your staff “How’re you doing?” In my experience, these contacts let everyone know that your door really is open—as it should be.

3) The numbers mean something. Retail analysts, your accountant, your own books can produce all kinds of numbers—measurements designed to give feedback on a business’s health. Are you looking at them and understanding what they mean?

If you have the numbers—whether it’s your turn rate, total cost of goods sold, sales per square foot or whatever figures are relevant to your current situation—understand what they mean. If you don’t have them, start collecting them now.

These last two principles are related—both feedback from staff and objective measurements provide the input you need to make sound business decisions. Without a clear idea of how things are going today, charting your course for that distant horizon is bound to be more difficult.

In my last two years with Michigan Retailers I intend to be as active and involved in defining our course and in the day-to-day decision-making as I always have been. It continues to be a pleasure to steer this ship, with the help of our most able crew.