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Current business performance reflects current ways of working. WMT also gave Store Associates a $2.7B pay increase, fielded NHM formats, increased mix of ecommerce sales, refreshed stores, and invested heavily in technology which placed pressure on margins. This does not include normal investments in price. Right now, WMT has a $5B shortfall relative to its peak operating profit performance.

If performance based management works, WMT should see increased sales, profitability, cash flow, and market share. The complication in my mind is if cronyism will mitigate the potential positive impacts of performance based management and the wrong people are rewarded and retained.

WMT is an EDLC business model. As such, payroll is an addressable expense and will be evaluated on a continuous basis. Additionally, WMT is instituting a zero based budgeting process which will probably result in the elimation of headcount and other expenses. If you can’t increase prices, then operating expenses are your lever.

Posted by @QOSt9UG-2ait.

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@ljm, spot on! Cronyism is absolutely rampant and has been so for a long time at HO.

When there is a bunch of long time directors and managers who have zero clue or experience outside of Walmart it's to be expected. The insecure ones, which is most of them by now, surround themselves with people who pose no threat, come to work each day with no ideas, and are just as uneducated and inexperienced. If you are knowledgeable, beware, you'll be threatened to keep your mouth shut. Getting out of the toxic soup is all you can do to save yourself and your career.

Not sure why the business hasn't recognized patterns of dysfunction such as a long string of failed executive leadership over these areas. Look to the teams these failed leaders were over. If the ones who do the work fit the profile above and can't get it done, there's your problem. No executive leader can do all the work alone.

Walmart is going to face intense challenges until the cronyism is stopped. Talented, top performing people need to stay far away from departments steeped in cronyism until they are finally disbanded and rebuilt by knowledgeable leaders.

The problem is cronyism. It’s rampant already. I give it two years before it starts hitting business performance.

Also, if you think the butt kissing is bad now, what happens when people’s livelihoods depend almost solely on how much the boss likes them? If you know your bonus is on the line, are you really going to try to talk the boss out of that bone headed idea they’re in love with? Doubt it.

Thread regarding Walmart layoffs

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