The ACG Cincinnati’s 2011 CEO Focus event – Dave Dillon, CEO of The Kroger Company, spoke on “Lessons Learned via Organic Growth and Acquisitions”
This event was absolutely fantastic and I feel inspired to share my key takeaways with you.
The choices you make will create your strategy:
- Customer First Strategy – make sense to the customers vs. trying to make sense of what you are you doing internally that you want to sell or provide to them
- Centralize but listen to the field – “we have learned that the consumers, field operations and team members tell us what we should be doing”
- Adopt values that you truly live out – values that are core to your organization and yourself.
- “If we are not improving we are dead – life will pass us right by!” Dave Dillon provided a golf story that gives a great real life example of this quote. In 1980 the longest average driving distance in golf was 274.3 yards. Today the longest average driving distance is 317.2 yards. The top golfers on the PGA tour now have an average of at least 270.3.
- “The difference between success and failure is not much”
- Develop a culture of feedback
- Ask your customers: feedback provides you the best route for growth.
- Ask others: employees and customers – how you come across and where you can improve.
- Give all of those around you the open opportunity to share with you how you make them feel
- “Focus is important but it is how you come across that makes a long-term impact” ~Dave Dillon
The two most important learning’s from living out Kroger’s values are:
- When you start caring about values centered leadership vs. making money you will see tremendous transformation that will impact your brand(s), customer loyalty and internal & external customers
- “Diversity – We take this very seriously within Kroger and for our customers.” The more Kroger focuses on diversity the more impact they are making on the lives of others which in turn has generated substantial loyalty, revenue and growth.
Joint ventures have added tremendous value to Krogers’ strategy and their customer’s experience – including dunnhumby and US Bank.
When Kroger acquires other companies through mergers and acquisitions (M&A):
- Kroger acquires strategically and does not chase a deal
- Kroger does not buy fixer-uppers but well run organizations with solid leadership is what attracts them
- Kroger has flexibility when doing a deal – they listen to the other parties side and strive to have a win-win relationship as their goal is to have the existing leadership team in place and keep them in place when the acquisition is complete
- Kroger provides opportunities to receive feedback
- Measure short-term and long-term risk against consequences and impact
- Create strategy around anticipated changes in customer base
- Mergers and new endeavors help your company but do not rely on them to reach your immediate year profitability goals
Quotes from Dave Dillon, CEO of The Kroger Company, at the ACG Cincinnati CEO Focus event:
“Be authentic – genuinely take an interest in the people around you and those you either employ or those you serve.” ~ Dave Dillon
“Small Details Matter” ~ Dave Dillon
“Always ask your customers, consumers what matters to them – make feedback a daily part of your culture” ~ Dave Dillon
“I have learned the most in life by asking others how I come across and providing a culture that people openly share this with me” ~ Dave Dillon
“Take pride in your job – Embrace it and Value it” ~Dave Dillon
Interested in learning more about ACG of Cincinnati or ACG Global? Visit the websites, leave a comment here or message me. I am happy to help you get connected!
Centennial is engaged with ACG as it focuses on assisting organizations who are experiencing change and growth – both organically and through mergers and acquisitions.
~Mike Sipple Jr, Vice President – Executive Recruiter / Talent Aquisition Expert / Business Advisor
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