M&S CEO Implements Shop Floor Requirement for Office Staff, Boosting Stock Prices
Marks & Spencer CEO Stuart Machin has introduced a new requirement for the staff at the retailer’s London head office. In order to pass their annual review, each employee must spend seven days working on the shop floor, including Machin himself and his fellow C-suite executives. This initiative aims to bring the office staff closer to the customers and the operational aspects of the business.
The seven-day requirement is not about simply observing the shop floor; it entails actively finding and resolving problems. One example cited in The Sunday Times report is when an HR manager successfully advocated for 12 weeks of paid leave for parents of prematurely born children. This policy change was inspired by a conversation with a store worker. Machin believes that the success of the business relies on the activities and insights gained on the shop floor, emphasizing the importance of frontline perspectives over boardroom discussions.
The impact of this initiative is already evident in Marks & Spencer’s stock prices, which have nearly doubled in the past year. Additionally, the company has recently made a comeback by returning to the FTSE 100 index after a four-year absence.
This approach is not unique to M&S, as other consumer giants have also encouraged their head office teams to engage with their operations on the ground. Starbucks’ incoming CEO Laxman Narasimhan plans to work a half-day shift at one of the brand’s coffee shops each month, while the takeaway app DoorDash asks employees to make monthly deliveries. These companies recognize the value of leaders gaining firsthand experience and understanding of the challenges faced by frontline employees.
According to HR experts, this approach can alleviate the tension between employees and leaders, where the latter may seem detached from the realities of the business. By getting their hands dirty, leaders enhance their credibility and relatability, building trust among employees. This, in turn, creates a more open and honest environment where employees feel heard and can raise concerns.
Sarah Stevens, co-founder and director of HR consultancy e-volveHR, believes that immersing bosses in the business is crucial for understanding the issues faced by employees in their roles. It enables leaders to identify practical problems and uncover insights that might otherwise remain hidden. However, if executed poorly, such initiatives can come across as insincere or solely for PR purposes, leading to cynicism among employees.
To avoid this, leaders should approach these interactions with authentic curiosity, openness, and a genuine desire to build rapport. The aim should be to establish a real connection and foster mutual learning, rather than creating a staged event for photo opportunities. By doing so, leaders can demonstrate their genuine interest in the challenges faced by employees, preventing them from feeling patronized.
In conclusion, Marks & Spencer’s CEO has implemented a shop floor requirement for office staff, emphasizing the value of firsthand experience and understanding of the business’s operations. This approach has not only boosted the company’s stock prices but also improved the overall relationship between leaders and employees. By bridging the gap between the shop floor and the boardroom, organizations can create a more inclusive and transparent culture that benefits both employees and the business as a whole.
