These are brave and refreshing words from a major corporate CEO. While many talk about the importance of employees, some are less keen to invest significantly in developing and engaging them. It is also refreshing that Clarke is keen to take responsibility and to co-create a solution with others. He has always said that he inherited a "fantastic legacy" from former CEO Sir Terry Leahy, and hopes that his own legacy will be a more focused and engaged organisation. He also hopes that Tesco, the UK's largest private sector employer, can contribute more to wider society.
Tesco is one of the UK's most successful organisations, and has recognised that it is at a critical stage in its life where it needs not only to re-examine plans such as new store openings, but also to re-examine its culture. Clarke is communicating a new vision for Tesco. His challenge now is to really engage Tesco's people with this vision - including the 20,000 new people Tesco aims to recruit over the next couple of years. Clarke's early focus on more open, transparent, two-way communication is a promising start.
Clarke has been a Tesco employee for all of his working life. This gives him the advantage of knowing many of its store managers personally. He engages in regular dialogue with them, and encourages other senior leaders to do the same. These store managers are the key to the experience of both employees and customers. They are leaders who set the tone. If they are customer focused, their teams will be too. If they are too cost focused, customers may be neglected. They are well placed to role model, evaluate and reward the behaviours that can create a shift in service. While competitive pricing is essential for major grocery retailers, Clarke has said that Tesco has been too centred on cost-cutting and simply not centred enough on employees and customer service. He has pledged to give managers the support and tools they need to improve this.
Tesco also has the advantage of a relatively flat management structure for such a large organisation. It is renowned for operational excellence and can implement change quickly. It also has a clear focus on two core, easily understood values: no one tries harder for customers, and treat people how we like to be treated.
So far, Clarke has taken a positive approach to leading change and engaging others with a new vision. He has communicated openly and honestly, acknowledging where things need to change and highlighting the many positive factors Tesco can build on. He is not trying to be a 'hero' leader with all the answers. He is aiming to be a collaborative leader, working in partnership with colleagues - not only on the executive team, but across all levels of the business - to co-create solutions. He is providing resources, such as additional staff and development opportunities, to help colleagues achieve Tesco's ambitious goals.
Clarke remains focused on Tesco's bottom line. He realises that its market-leading position will not remain secure through competitive pricing alone. His focus on engaging employees to provide improved levels of customer service should have a very real impact on performance and results - which should please employees, customers and shareholders alike.
Nicky Little, Head of Leadership Development, Cirrus
