How Great Companies Achieve Extraordinary Results with Ordinary People

1
How Great Companies Achieve Extraordinary Results
with Ordinary People

• Presented by Ning Jidapa Ittipong
• Mink Pinyarat Sirisomboonsuk
• Peggy Sirikanya Buranabunpot

2
The Mens Wearhouse

• Started operation in 1973
• Company-based in Houston, Texas
• One of the North Americas largest specialty
  retailers of mens apparel with over 500
  locations
• A full selection of designer, brand name and
  private label suits, sport coats, sportwear,
  outerwear, furnishings and accessories, including
  tuxedo rentals

3
Companys Philosophy

• Servant leadership
• Take advantage of peoples strengths
• Employees are customers too
• Look for win-win opportunities
• Celebrate individual and team success

4
People Resource Management
This Retailers Program
Affects the Employees
Ultimate Outcomes
Training Development
Skill
Rewarding Motivation
Employee Performance
Effort
Feedbacks
Morale
5
Training Development

• Workers not always from the best pool but have
  potential to develop
• Suit University
• Servant leadership
• Development of teamwork

6
Rewarding System

• Extrinsic vs Intrinsic
• Wardrobe Consultant title
• Stock options and sales commission
• Individual vs Team Spirit
• Based on philosophy of Success comes only when
  everyone in the store is successful.

7
Measures Feedbacks

• Focused on behaviors that influence important
  business functions
• Aligned the evaluation criteria emphasis on
  companys philosophy

8
Outcomes

• Differentiated itself in a price-sensitive market
• Driven customer loyalty by employee loyalty
• Fortune 100 best companies to work for
• Increased in sales and profit

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CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS CONSOLIDATED STATEMENTS OF EARNINGS
For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended For the Years Ended
January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006 January 31, 2004, January 29, 2005 and January 28, 2006
(In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts) (In thousands, except per share amounts)
  Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
  2003 2003     2004 2004     2005 2005
Net sales 1,392,680     1,546,679     1,724,898
Cost of goods sold   879,234       943,675       1,027,763
Gross margin   513,446       603,004       697,135
Selling, general and administrative expenses   431,663       484,916       531,839
Operating income   81,783       118,088       165,296
Interest income   (1,495 ) )   (1,526 ) )   (3,280
Interest expense   4,006       5,899       5,888
Earnings before income taxes   79,272       113,715       162,688
Provision for income taxes   29,538       42,359       58,785
Net earnings 49,734     71,356     103,903
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Conclusions

• PEOPLE is the most important.
• VALUE comes first.
• It helps people to be better.
• It lowers turnover, increases margin.
• It is crucial to be able to turn theoretical
  knowledge into action.

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Conclusions

• Companys motto
• We are in the people business not the suit
  business. The companys job is to help people
  understand others, listen better, and develop
  excitement about helping themselves and their
  teammates reach their potential as a person.
  said George Zimmer, Founder and CEO.

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Works Cited

• O'reilly III, Charles A., and Jeffrey Pfeffer.
  The Mens Wearhouse Growth in a Declining
  Market. Hidden Value. Boston, Massachusetts
  Harvard Business School Press, 2000. 78-98.
• FORTUNE 100 Best Companies to Work For 11 May
  2006lthttp//money.cnn.com/magazines/fortune/bestco
  mpanies/full_list/gt.
• "The Men's Wearhouse Company." 11 May 2006
  ltwww.menswearhouse.comgt.
• U.S. Securities and Exchange Commission. 11 May
  2006 ltwww.sec.govgt.

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How Great Companies Achieve Extraordinary Results
with Ordinary People

• . . . Thank You . . .