Nordstrom, Inc. – Family Focused on the Goal

Nordstrom was started over 100 years ago on a whim. "Why not?" thought John W. Nordstrom when a friend from his gold mining days in Alaska asked him if he wanted to open a shoe store in Seattle, Washington back in 1901. Life had been brutal for Nordstrom up until that point. An immigrant from Sweden, he survived on very little money doing back-breaking odd jobs in coal mines to lumber camps to get by. When he heard of the gold rush in Alaska, he went and came back with $13,000 ready to settle down, marry and open a shoe store with his friend, Carl Wallin. Why not?

Nordstrom didn't have a plan on opening day. And no customers were to be found. The story goes a woman came in after seeing a pair of shoes in the window front. Not able to find the pair of shoes in the back, Nordstrom took the pair from the window display and sold them to the woman – never knowing if they really fit her or not. "Let there be no mistake, John W. Nordstrom was no retail expert," says his grandson Bruce Nordstrom. "But throughout his life he did what he had to do – hopefully we all have that in us."

And what he had to do became the Nordstrom way – the plan-of-action repeated by four generations of Nordstroms turning the single Seattle shoe store into a national fashion specialty chain. The plan, so simple yet up-scaling the competition, focused on customer service. From a live pianist setting the mood to handwritten thank you notes, customers returned time and time again because of the service they received – all because John Nordstrom inspired the notion that the customer came first.

And this philosophy extended down the line. When the decision was made to expand into the highly competitive California market in 1978, the third generation of Nordstroms knew they could not compete on atmosphere or exclusive clothing lines. They knew they had to rely on what built the family name: customer service.

"We knew we would be in deep yogurt if we disappointed a single customer on service," says grandson John Nordstrom as they opened the first Nordstrom store in California. Bruce Nordstrom recalled: "I was so nervous I was ready to throw up."

And yet the strategy worked. Today, Nordstrom is rated the 24th best place to work with 112 stores many set to anchor malls and revitalize downtown projects. Nordstrom's values have remained unchanged for more than 100 years since its establishment by John W. Nordstrom in 1901: Offer the customer the best possible service, selection, quality and value. Why not?

Business School for Moms

During the 1990's Nordstrom, Inc. suffered an identity crisis. With the third generation of Nordstroms wanting to retire, a change of guard occurred with executives brought in from outside the family for the first time. The Nordstrom roots began to buckle as their focus on customer service that John W. Nordstrom established began to teeter. It wasn't until the fourth generation took the reigns back in 2001 and regained focus on the mission of the company, did success return. The Nordstrom family plans on running the company founded by their great-grandfather for generations to come.

A family's mission or objective can easily be shifted when outside influences are allowed to stir with your values. You, as the ceoMom of your family, need to keep focused on your family plan and goals. Life is turbulent, change happens, things can go wrong. But your family plan is your anchor in the storm. It's what will keep you grounded and focused on the goals you have set out to achieve. Stay focused, remember what you stand for and be the person to make history.

"I hope in 100 years this place will still exist and people will look fondly back at 2001 and what we did here," says Pete Nordstrom. Your family will say the same about you for generations to come.