Quotes from Sam Walton

Another goal of ours was to create the kind of family togetherness Helen had grown up with. I've already told you how much the Robsons influenced Helen and me in the organization of our finances, but really I think their successful, happy, prosperous family was just an all-round inspiration for the kind of family I wanted as a young man, and, of course, it was the only kind of family Helen ever considered.

And here it is: the more you share profits with your associates—whether it's in salaries or incentives or bonuses or stock discounts—the more profit will accrue to the company. Why? Because the way management treats the associates is exactly how the associates will then treat the customers. And if the associates treat the customers well, the customers will return again and again, and that is where the real profit in this business lies

Our message became "Sure, we are a nonunion company, but we think we are stronger because of it. And because you are our partner, we have an open door, and we listen to you, and together we can work out our problems.

but I swore early on that if I ever had a family, I would never expose it to that kind of squabbling.

Nobody wanted to gamble on that first Wal-Mart. I think Bud put in 3 percent, and Don Whitaker—whom I had hired to manage the store from a TG&Y store out in Abilene, Texas—put in 2 percent, and I had to put up 95 percent of the dollars. Helen had to sign all the notes along with me, and her statement allowed us to borrow more than I could have alone. We pledged houses and property, everything we had. But in those days we were always borrowed to the hilt.

The simple truth is that Mother and Dad were two of the most quarrelsome people who ever lived together. I loved them both dearly, and they were two wonderful individuals, but they were always at odds, and they really only stayed together because of Bud and me.

Through our combined efforts the kids received your everyday heartland upbringing, based on the same old bedrock values: a belief in the importance of hard work, honesty, neighborliness, and thrift.

Helen and I made it a point to take the whole family out and spend time traveling or camping together. Sometimes the kids thought of these trips as forced marches, but I think that time we spent together has had a lot to do with our close relationship as a family today. We have a lot of good memories of traveling all over the country, especially in this one fine old DeSoto station wagon.

Hello, friends, I'm Sam Walton, founder and chairman of Wal-Mart Stores. By now I hope you've shopped in one of our stores, or maybe bought some stock in our company.

How did Wal-Mart do it?" I've usually been flip about answering them. "Friend, we just got after it and stayed after it," I'd say.

RULE 2: SHARE your profits with all your associates, and treat them as partners. In turn, they will treat you as a partner, and together you will all perform beyond your wildest expectations. Remain a corporation and retain control if you like, but behave as a servant leader in a partnership. Encourage your associates to hold a stake in the company. Offer discounted stock, and grant them stock for their retirement. It's the single best thing we ever did.

Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise.

As I look back on that period now, I realize I had split the company in half, setting up two factions which began to compete fiercely with one another. There was the old guard, including many of the store managers, remaining loyal to Ferold, and the new guard, many of whom owed their jobs to Ron. Pretty soon, everybody began to take sides, lining up behind either Ron or Ferold, who didn't get along at all.

Then I said to myself, "Well, I'm getting pretty old, and we could probably work together. I'll let him be chairman and CEO, and I'll just enjoy myself, step back a little, and, of course, continue to visit stores." So I became chairman of the Executive Committee. Ron became chairman and CEO of the company. Ferold became president.

Meanwhile, the house was dividing up against itself. A lot of the newer, younger guys were lining up on Ron's side, and the older bunch who ran the stores were backing Ferold.

And this is a very important point: without the computer, Sam Walton could not have done what he's done.

One big strain on the family that I've already talked about was this whole richest man in America business. I don't know if Helen ever really forgave me for putting us in the position to be dragged into that. HELEN WALTON: "What I hate is being the object of curiosity. People are so curious about everything, and so we are just public conversation. The whole thing still makes me mad when I think about it. I mean, I hate it.

Some families sell their stock off a little at a time to live high, and then—boom—somebody takes them over, and it all goes down the drain. One of the real reasons I'm writing this book is so my grandchildren and great-grandchildren will read it years from now and know this: If you start any of that foolishness, I'll come back and haunt you. So don't even think about it.

The thing is, I am absolutely convinced that the only way we can improve one another's quality of life, which is something very real to those of us who grew up in the Depression, is through what we call free enterprise—practiced correctly and morally.

You start with a given: free enterprise is the engine of our society; communism is pretty much down the drain and proven so; and there doesn't appear to be anything else that can compare to a free society based on a market economy

So finally I called him in one Saturday in June of 1976, thirty months after I had given up the chairman's job, and just said simply, "Well, Ron, I thought I was ready to step out, but I see that really I wasn't. I've been so involved that in a way it has put you under a real handicap." I told him I wanted to come back in as chairman and CEO, and have him assume another job—vice chairman and chief financial officer, I believe.

In the global economy, successful business is going to do just what Wal-Mart is always trying to do: give more and more responsibility for making decisions to the people who are actually on the firing line, those who deal with the customers every day.

What followed became known as "the exodus." First, a whole group of senior managers who had been part of Ron's team—our financial officer, our data processing manager, the guy who was running our distribution centers—all walked out behind him. You can imagine how Wall Street felt about that.

But if American management is going to say to their workers that we're all in this together, they're going to have to stop this foolishness of paying themselves $3 million and $4 million bonuses every year and riding around everywhere in limos and corporate jets like they're so much better than everybody else.