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Charles always said the reason the business grew was because he was lucky in the men who came to manage stores I don t know how many times he used to come home and remark, Well, today I hired another man who is smarter than I am I would make the wifely comment about nobody being smarter than he was, not in the drug business But he would say, You re dead wrong; the only really smart thing about me is that I know enough to hire men who are smarter than I am He certainly did get capable men: men who were farsighted, loyal, hard-working, and capable They all helped to make Chicago and the business grow 40 While other companies were still practicing the old-school style of management browbeat your employees until they quit, then get new ones Walgreen tried to make his stores the kinds of places where he would want to work His checkered history as a desultory store clerk probably taught him better than anything else what not to do to get the best performance out of his staff For starters, Walgreen made it a point to pay his employees better than his competitors did His motives were probably equal parts business strategy and altruism (he was an unusually generous man, with friends, family, and colleagues) He knew if he wanted the best people, he had to pay them like they were the best But he also knew the only way to avoid being handcuffed by a workers union telling him how to run his business was to treat his people well enough so they wouldn t be tempted to unionize in the important service jobs As Chuck put it: Dad did not disbelieve in unions, and he didn t mind recognizing them, like the carpenters and electricians and tradesmen who worked on our stores, just as long as it didn t include the pharmacists or other people who worked in our stores We paid well, better than the union rate, so I thought it was stupid for our employees to consider union membership when the [union members ] pay and benefits weren t as good as ours I guess they [thought it stupid], too, because
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we really never had a movement to unionize Treating our people right was embedded in me pretty much by my dad, his philosophy We treated the employees well, and still do 41 Walgreens turnover rate, then and now, remains among the lowest in the retail sector More important to Walgreen than saving money was preserving the culture he worked so hard to establish, a culture that set his people up for success, not failure As early as 1916, when Walgreen consolidated the nine existing stores under the Walgreen Company umbrella, he sought to protect the entrepreneurial approach that drove the chain s initial growth: providing his employees with plenty of incentives to stay with the company These included opportunities for partnerships at each store, bonuses and stock offerings, promoting from within, and giving employees the autonomy necessary to make their mark This simple but effective philosophy has been a central plank in the company platform since the beginning
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In addition to all the intangibles, including goodwill, that accrue from treating employees right, Walgreen understood clearly that the main purpose of such treatment was to ensure that employees would treat their customers right There is no better example of Walgreen s philosophy of customer service than his advice on how to handle unhappy customers It is a treatise of sound thinking on a tricky but vital topic for almost anyone dealing with the public which is to say, everyone but especially those working in the often aggravating world of retail That Walgreen wrote this in late summer of 1923 in an internal issue of the Pepper Pod decades before corporations habitually paid customer relation consultants thousands of dollars per day for half the wisdom contained here is rather stunning
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