Trader Joe’s is a corporation. It draws upon the same human asset pool and serves the same general public as every other national entity. It operates under the same laws and deals with many of the same human resource and customer service issues as everyone else. It still needs to make a profit. Many corporations try to hire the best employees, pay good wages, provide reasonable benefits, and serve their customers with excellence. Yet Trader Joe’s is different. People love Trader Joe’s. I have even had both a friend and a customer share with me that when they get depressed they go to Trader Joe’s and always leave feeling better. Try that at Verizon or Chase. So what makes Trader Joe’s so radically different?
Organizational Psychology is the study of what makes organizations thrive and not just survive by understanding human nature and behavior. It’s more than just understanding human behavior to maximize employee performance. It helps recognize a business’s identity to maximize it’s potential to the community it serves. This is the most effective means to maintain a sustainable profit. It’s a fascinating field and promises to be the leading field in management in the next decade. I am an organizational psychologist. It’s not just a degree I received and it’s not a job that I do. It’s who I am. It’s my identity in the workplace. Wherever I am and whatever I do, I think like one and behave like one. I recently became a crewmember at Trader Joe’s and the first things I saw were OP truths in action. They were pretty easy for me to spot; not just because of a degree, but because I also have 20 years of experience as a business owner and licensed contractor and many more years as a pastoral counselor.
As I write this final draft, I must say that the clouds of corporatization and profit motive are darkening the horizon of the Trader Joe’s neighborhood. It seems to be a tragic evolutionary trend in highly successful businesses and even nations. I am absolutely convinced that organizational psychology is the key to change and growth management that prevents this process. But for now, let’s take a look at why Trader Joe’s has risen to unprecedented pinnacles of success and has attained such a cult-like following from the perspective of an organizational psychologist. This is observational, not research based. I was not allowed to interview anyone within the Trader Joe’s organization and intentionally avoided outside research on the company to avoid tainting my own observations.
My first and primary observation is that their great command is “Be relational”. This far transcends good customer service. It is the primary motivational force and influences everything they do; from hiring, to customer service, training and development, and even product development. The friendliness at the register is just the tip of the iceberg. It’s everywhere, from gathering carts, in the aisles, and to the break room. There’s always work to do and everyone, I mean everyone, works very hard; but never at the expense of relationship. I’ve never seen an employee get disciplined for being friendly with customers or one another. From a motivational perspective, it’s the reason they’re in business. There seems to be an intrinsic corporate attitude that knows a "Wow" customer experience comes, at least in part, from "Wow" employee relations.
My observations support my deep conviction that clearly identifying the motive or mission for being in business is the most critical factor in determining sustainable success. It’s rarely, if ever, about money. Mission and vision are different. Vision is just what it implies – it states where you are going as a company. Mission is the “why”, vision is the “where”, means is the “how do we get there”, and resources are the tangible and intangible assets that empower the organization to move forward. These four components determine business identity. Business identity determines branding, culture, product development, marketing and human resource decisions – virtually every decision a company makes. Know identity, know success. No identity, no success. It works in personal lives as well as the life of a business, regardless of its size or structure.
Everything at Trader Joe’s stems from this mission of being relational. I think Trader Joe’s calls it having fun. We do. Other corollary principles bring substance to the structure and management practices of the organization. Here’s a few:
Positivity. My first morning shift, 6am - I was grumpy and unfiltered. I was training in the produce department. I commented on how some product was not rotated. I got a spontaneous lecture on how we don’t point fingers or criticize someone’s work. We fix it and move on. We never know why it happened because helping a customer or whatever could have sidetracked the one before us. Even if it was a mistake, so what? We believe we are all doing our best to do our job. We’re a team. Period.
Also, there’s no hazing or demeaning of new employees. Other employees are always super helpful and legitimately interested in your development - never critical. Every mistake is a teaching opportunity. The more you know, the more helpful you become. It’s more than just servant leadership; it’s what you do in relationship. One day a case of wine fell and flooded the floor. Everyone jumped in to help. I never did find out the employee who did it. Seriously, it was not an issue. No one was lectured, no one was criticized, we just all helped out. If anyone got disciplined, it was done in complete confidentiality. I’m also quite sure that it was laced with affirmation and assurance with plenty of education about the process and procedure.
We treat each other that way and it becomes second nature to treat the customers that way, too. No excuses needed. We just look to satisfy. It’s in our culture, not a job we do.
Empowerment: We all exist to be relational so it’s really about honor, respect, and treating each other as equals. Leadership is not hierarchal at Trader Joe’s. Servant leadership is not just a supervisor’s job description; we all serve the schedule of job duties that change every hour. Leaders just facilitate and help. There’s no need to dictate dominate and control. Our taskmaster is the schedule and we all serve it gladly because no matter what assignment we’re given, we get to be relational and have fun. Work doesn’t get in the way; it’s the way we work.
Diversity: Yes, I’m a mature white male. There’s also a gay black man, a young man trying to get into law school, women of all ages and backgrounds (including two very hardworking pregnant women). Married and single; people with 25 years seniority working right next to new hires. The harmony that exists is quite amazing, but that’s not what I mean by diversity. I mean everybody does all the jobs. There’s little specialization to incite factions. It creates cooperation and understanding. It also creates accountability because you can’t isolate yourself from what others are doing. I’ve noticed that some focus on areas more than others, but no one is “responsible for dairy or grocery or frozen”. It’s more of an employee preference than anything else. We all get assigned to whatever section needs worked. Both crew and mates (supervisors) rotate sections. Scheduling is similar. I’m getting bounced around on different shifts every week and my days off also change every week; but so does everyone else. With few exceptions, schedules are fairly random and we end up working with everyone in the store sooner or later. It facilitates relationships and minimizes contention. Also, our assignments change every hour. These things keep us fresh and on our toes. I don’t stagnate on one job. My days go by really fast and I like it. It keeps me friendly, too.
But what about authority? What about structure? What about the rules? They all exist. A skeleton is rigid yet actually facilitates movement. A skeleton is hidden, so as to not inhibit function. The Trader Joe’s skeleton exists beneath the surface to provide structure that facilitates productivity and actually empowers the relational mission of the company. As I said, we need to keep the shelves stocked and keep people moving through the registers, but not at the expense of our mission. The structure and the schedule, in the context of our priority on relationships, actually create a perfect balance of high productivity while focusing on our mission.
There are certainly other principles at work, but these have been key. One last thought. Trader Joe’s knows it’s mission and lives it. Everything is designed around mission. Mission is the most important element in a company and yet few companies make it the centerpiece of their existence. They flounder and wonder why. Paraclete Consulting exists to help companies discover their mission. Even more than that, Paraclete Consulting exists to help companies discover their true identity and purpose for existence. When you know your identity it is reflected throughout the company; from the board room to operations, from the branding and advertising to marketing and customer service. One cohesive message that attracts the right customers and maximizes your potential for success and fulfillment.
I believe in these principles and that’s why I work at Trader Joe’s. I believe they exist in my consulting and that’s why I look forward to building relationship with you to facilitate your success.
Live loved,
Rich Ressel
Organizational Psychology is the study of what makes organizations thrive and not just survive by understanding human nature and behavior. It’s more than just understanding human behavior to maximize employee performance. It helps recognize a business’s identity to maximize it’s potential to the community it serves. This is the most effective means to maintain a sustainable profit. It’s a fascinating field and promises to be the leading field in management in the next decade. I am an organizational psychologist. It’s not just a degree I received and it’s not a job that I do. It’s who I am. It’s my identity in the workplace. Wherever I am and whatever I do, I think like one and behave like one. I recently became a crewmember at Trader Joe’s and the first things I saw were OP truths in action. They were pretty easy for me to spot; not just because of a degree, but because I also have 20 years of experience as a business owner and licensed contractor and many more years as a pastoral counselor.
As I write this final draft, I must say that the clouds of corporatization and profit motive are darkening the horizon of the Trader Joe’s neighborhood. It seems to be a tragic evolutionary trend in highly successful businesses and even nations. I am absolutely convinced that organizational psychology is the key to change and growth management that prevents this process. But for now, let’s take a look at why Trader Joe’s has risen to unprecedented pinnacles of success and has attained such a cult-like following from the perspective of an organizational psychologist. This is observational, not research based. I was not allowed to interview anyone within the Trader Joe’s organization and intentionally avoided outside research on the company to avoid tainting my own observations.
My first and primary observation is that their great command is “Be relational”. This far transcends good customer service. It is the primary motivational force and influences everything they do; from hiring, to customer service, training and development, and even product development. The friendliness at the register is just the tip of the iceberg. It’s everywhere, from gathering carts, in the aisles, and to the break room. There’s always work to do and everyone, I mean everyone, works very hard; but never at the expense of relationship. I’ve never seen an employee get disciplined for being friendly with customers or one another. From a motivational perspective, it’s the reason they’re in business. There seems to be an intrinsic corporate attitude that knows a "Wow" customer experience comes, at least in part, from "Wow" employee relations.
My observations support my deep conviction that clearly identifying the motive or mission for being in business is the most critical factor in determining sustainable success. It’s rarely, if ever, about money. Mission and vision are different. Vision is just what it implies – it states where you are going as a company. Mission is the “why”, vision is the “where”, means is the “how do we get there”, and resources are the tangible and intangible assets that empower the organization to move forward. These four components determine business identity. Business identity determines branding, culture, product development, marketing and human resource decisions – virtually every decision a company makes. Know identity, know success. No identity, no success. It works in personal lives as well as the life of a business, regardless of its size or structure.
Everything at Trader Joe’s stems from this mission of being relational. I think Trader Joe’s calls it having fun. We do. Other corollary principles bring substance to the structure and management practices of the organization. Here’s a few:
Positivity. My first morning shift, 6am - I was grumpy and unfiltered. I was training in the produce department. I commented on how some product was not rotated. I got a spontaneous lecture on how we don’t point fingers or criticize someone’s work. We fix it and move on. We never know why it happened because helping a customer or whatever could have sidetracked the one before us. Even if it was a mistake, so what? We believe we are all doing our best to do our job. We’re a team. Period.
Also, there’s no hazing or demeaning of new employees. Other employees are always super helpful and legitimately interested in your development - never critical. Every mistake is a teaching opportunity. The more you know, the more helpful you become. It’s more than just servant leadership; it’s what you do in relationship. One day a case of wine fell and flooded the floor. Everyone jumped in to help. I never did find out the employee who did it. Seriously, it was not an issue. No one was lectured, no one was criticized, we just all helped out. If anyone got disciplined, it was done in complete confidentiality. I’m also quite sure that it was laced with affirmation and assurance with plenty of education about the process and procedure.
We treat each other that way and it becomes second nature to treat the customers that way, too. No excuses needed. We just look to satisfy. It’s in our culture, not a job we do.
Empowerment: We all exist to be relational so it’s really about honor, respect, and treating each other as equals. Leadership is not hierarchal at Trader Joe’s. Servant leadership is not just a supervisor’s job description; we all serve the schedule of job duties that change every hour. Leaders just facilitate and help. There’s no need to dictate dominate and control. Our taskmaster is the schedule and we all serve it gladly because no matter what assignment we’re given, we get to be relational and have fun. Work doesn’t get in the way; it’s the way we work.
Diversity: Yes, I’m a mature white male. There’s also a gay black man, a young man trying to get into law school, women of all ages and backgrounds (including two very hardworking pregnant women). Married and single; people with 25 years seniority working right next to new hires. The harmony that exists is quite amazing, but that’s not what I mean by diversity. I mean everybody does all the jobs. There’s little specialization to incite factions. It creates cooperation and understanding. It also creates accountability because you can’t isolate yourself from what others are doing. I’ve noticed that some focus on areas more than others, but no one is “responsible for dairy or grocery or frozen”. It’s more of an employee preference than anything else. We all get assigned to whatever section needs worked. Both crew and mates (supervisors) rotate sections. Scheduling is similar. I’m getting bounced around on different shifts every week and my days off also change every week; but so does everyone else. With few exceptions, schedules are fairly random and we end up working with everyone in the store sooner or later. It facilitates relationships and minimizes contention. Also, our assignments change every hour. These things keep us fresh and on our toes. I don’t stagnate on one job. My days go by really fast and I like it. It keeps me friendly, too.
But what about authority? What about structure? What about the rules? They all exist. A skeleton is rigid yet actually facilitates movement. A skeleton is hidden, so as to not inhibit function. The Trader Joe’s skeleton exists beneath the surface to provide structure that facilitates productivity and actually empowers the relational mission of the company. As I said, we need to keep the shelves stocked and keep people moving through the registers, but not at the expense of our mission. The structure and the schedule, in the context of our priority on relationships, actually create a perfect balance of high productivity while focusing on our mission.
There are certainly other principles at work, but these have been key. One last thought. Trader Joe’s knows it’s mission and lives it. Everything is designed around mission. Mission is the most important element in a company and yet few companies make it the centerpiece of their existence. They flounder and wonder why. Paraclete Consulting exists to help companies discover their mission. Even more than that, Paraclete Consulting exists to help companies discover their true identity and purpose for existence. When you know your identity it is reflected throughout the company; from the board room to operations, from the branding and advertising to marketing and customer service. One cohesive message that attracts the right customers and maximizes your potential for success and fulfillment.
I believe in these principles and that’s why I work at Trader Joe’s. I believe they exist in my consulting and that’s why I look forward to building relationship with you to facilitate your success.
Live loved,
Rich Ressel
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