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You are here: HomeEventsRecent Events2001

2001




A Fireside Chat with Greg Lashutka



Event Details
Name A Fireside Chat with Greg Lashutka
Date Wednesday, November 14, 2001
Venue The Founders Club, Nationwide Arena
Speaker Greg Lashutka, Senior VP, Corporate Relations, Nationwide, Inc.
Description

Gregory S. Lashutka is Senior Vice President for Corporate Relations at Nationwide. He serves on Nationwide’s Management Committee and oversees Nationwide’s government relations, corporate and public involvement, and Nationwide’s trial division.

Before joining Nationwide in January 2000, Mr. Lashutka served as Mayor of Columbus, Ohio, being elected for two consecutive terms. During his tenure as mayor, Mr. Lashutka served as President of the National League of Cities, which made him a spokesman and representative in Washington and nationally for over 3,000 municipalities around the U.S. Mr. Lashutka also led Columbus in building international city and corporate relationships.

Prior to being Mayor, Mr. Lashutka was a partner with the law firm of Squire, Sanders & Dempsey following his two terms as Columbus City Attorney. Before that, Mr. Lashutka also served as legislative aide to Congressman Devine and law clerk to Judge Richard Metcalf.

Before Mr. Lashutka’s professional careers in law and politics, he co-captained The Ohio State University football team and later played professionally for the Buffalo Bills. He earned a bachelor’s degree from The Ohio State University, a juris doctorate from Capital University Law School, and in 1999 he was awarded an Honorary Doctor of Laws from The Ohio State University. He continues to be involved with many community organizations and has been honored with numerous national and community awards, including the Distinguished Eagle Scout Award, the Tree of Life Award from the National Jewish Fund, and the 1993 Municipal Leader of the Year Award.

About Nationwide
"Since 1925, Nationwide has been a leader in the financial services industry. Our history spans times of great prosperity and economic challenges. Through it all, Nationwide has maintained a solid, stable base for leadership. Today, as a Fortune 500 company with a strong presence in global markets, we are well-positioned to capitalize on exciting opportunities for expansion."

"We protect our customer's vehicles, homes and businesses. We're also one of the nation's largest life insurers and providers of individual variable annuities. Our 35,000 employees and agents service more than 16 million policies across the United States and around the globe."

"Nationwide is continually exploring new markets for our products and services. Our sophisticated delivery channels, including the reach, power and efficiency of the Internet, enable Nationwide to provide customers with insurance and financial products. We're committed to developing the people and technologies that will drive the future of a global economy."

"Our core businesses include Nationwide Insurance, which provides personal auto and homeowners insurance products; Nationwide Financial, which offers long-term savings and retirement products; and commercial products and services distributed through Scottsdale Insurance Companies, Farmland Insurance and GatesMcDonald. Each of these businesses are nimble, able to change quickly, and always alert to spot and respond to opportunities. It's an exciting environment for ambitious professionals who want to participate in shaping tomorrow!"

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NORDSTROM At 100!



Event Details
Name NORDSTROM At 100!
Date Thursday, September 6, 2001
Venue Nordstrom, Easton Town Center
Speaker Blake Nordstrom, President, Nordstrom, Inc.
Description

From the September 29, 2000 Puget Sound Business Journal
Guest Opinion--Robert Spector

Nordstrom is more than name, it's a culture

What is the impact of the founding family on the culture of a public company?

That question came into sharp focus when Nordstrom Inc., on the heels of continuing underperforming financial results, replaced John Whitacre, the only non-Nordstrom family member in 99 years to be chief executive officer, a job he held since 1997.

His replacement? After a national executive search firm recommended several outside candidates, the Nordstrom board, spearheaded by a group of outside directors, decided that the best choice was Blake Nordstrom. Blake is the 39-year-old great-grandson of John W. Nordstrom, a Swedish immigrant who in 1901 opened a tiny shoe store in downtown Seattle with some of the $13,000 he made prospecting for gold in the Yukon.

Like his father, grandfather, uncles and cousins, Blake Nordstrom began working in the store as a young boy, sweeping the floor and stocking merchandise at age 13. He's worked his way up from selling shoes on the floor to president of the company's Nordstrom Rack clearance store division. He is the fourth generation of his family to run the company, which is the largest specialty apparel and footwear retailer in the country, with 114 stores in 23 states and annual sales of more than $5 billion.

Blake will be assisted by his father Bruce, 66, who is returning as chairman, a position he shared with two cousins and a cousin-in-law until they all stepped down in 1995. "Mr. Bruce," as he is known among employees, has remained on the board, and is the largest single holder of Nordstrom shares. Although some analysts were disappointed by the selection of Blake Nordstrom, the choice was generally cheered by Nordstrom insiders, from front-line salespeople to longtime managers -- not as a knock against Whitacre, who was universally liked, but as a signal that the Nordstrom family is back to reassert its unique culture.

I would compare the elevation of Blake Nordstrom and the return of Bruce Nordstrom to Steve Jobs reassuming the helm at Apple Computer; it is that profound, and the potential resurgence could be just as dramatic. At a time when there are few if any superstar retailing CEOs, it would have been a mistake to recruit an outsider who could not appreciate the culture.

At a press conference after his selection, Blake Nordstrom declared that Nordstrom's business "is all about the customer. What works best for us is taking care of our customers and listening to them one at a time." But at Nordstrom, customer service is not a cliche or a strategy, it's the core of the company's culture. In fact, a primary reason that Blake Nordstrom is now president of the retailer is to reaffirm that culture.

With the possible exception of Wal-Mart, Nordstrom is the only major retailer with a corporate culture that can be described. For 99 years, the company's raison d'etre has been to do whatever it takes to take care of the customer.

On the face of it, Whitacre should have been able to carry on that tradition. Whitacre, 47, had been with the company since 1976, starting out selling shoes while a student at the University of Washington, and eventually becoming chief executive. He set out to modernize the accounting, merchandising and buying systems, and to solve the company's chronic problem of overstocked inventory. He oversaw the elimination of several women's apparel departments, a reorganization of the selection, an increase in the assortment of high-fashion items.

But in the process, he shifted the company's traditional primary focus from the customers and the salespeople to the shareholders. That may sound odd to investors, but not to longtime followers of Nordstrom

"If you are focused on the customer, that doesn't mean to say that you're not focused on the shareholder," a retired high-ranking Nordstrom executive told me. "If you are really focused on the customer and you do things properly, you're going to have the right merchandise with fewer markdowns. You'll sell more product and run a profitable business. And the shareholders will benefit because of that. The analysts hate that attitude. They don't understand it."

Why is it important to have a Nordstrom family member in charge?

"There's something magical about how the Nordstroms feel toward the customer that just connects with employees," the retired Nordstrom executive said. "The passion of the Nordstrom family for this business is hard to replicate. The presence of having a Nordstrom walking into the store and asking salespeople what they need to do their job better vs. having John Whitacre -- a substitute -- walk in the store, is different. I'm not saying that's right. I'm saying that's reality. The people on the sales floor think: If these Nordstroms are fighting it out, I'm going to fight it out, too."

I am reminded of that comment as I watch Ford CEO Jacques Nasser represent the car maker in the recent commercials dealing with the Bridgestone/Firestone tire recall. How much more effective would the message would be if William Clay Ford Jr., the great-grandson of Henry Ford and chairman of the board, offered his own personal guarantee. (He recently announced he was going to get more involved.) After all, his name is on every car. Similarly, when Blake Nordstrom assumed the company presidency, he underscored his determination by declaring, "My name's on the door. Every penny I have is in Nordstrom stock."

So, what are Blake Nordstrom's chances of succeeding? I think they're excellent.

Most of the systems changes Whitacre brought about are almost completed. Nordstrom has an aggressive national store expansion plan. The retailer continues to be the anchor of choice for every major new shopping mall in the country, and has been the centerpiece of a downtown revival in Indianapolis and is expected to do the same in Cincinnati. Nordstrom.com, under the direction of Blake's cousin Dan, is one of the best Web sites run by a brick-and-mortar retailer. As for customer service, Nordstrom is still the gold standard.

Blake Nordstrom will have about 18 months to prove he was the right choice. If he falters, I suspect the company will either be taken private or sold. A buyer would be acquiring the brand name, the inventory and the real estate, but not the Nordstrom culture. That's not for sale.

Robert Spector is the author of the forthcoming book "Lessons From The Nordstrom Way: How Companies are Emulating the No. 1 Customer Service Company" (John Wiley & Sons Inc.). Copyright 2000 American City Business Journals Inc. From the September 29, 2000 print edition

Additional Background Nordstrom Company History and Investor Relations
Lessons about The Nordstrom Way

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