Would your people protest for you?
Forget going to war for you. Would your people protest for you? Would they demand you be reinstated if you were fired, risking their jobs and pensions for you?
What kind of leader would you have to be to attract no less than 4 major rallies in 2 months drawing thousands of employees, vendors, and customers in protest to demand your reinstatement?
You would have to be Arthur T. Demoulas.
“Artie T.” is the grandson of the founder of Demoulas Market Basket, a 25,000 employee grocer serving Massachusetts and New Hampshire since 1916.
The founder’s two sons (Mike and George) purchased the grocer in 1954 from their father. Over the following 60 years, a family feud ensued forcing the families to battle in out in court in the 1990s. Along the way, Artie T became CEO while the power of the board swayed from one side of the family to the other. Then in 2013 Artie T’s arch rival, first cousin Arthur S Demoulas, attempted to oust Artie T as CEO but withdrew the effort due to threats from employees.
Arthur S eventually gained control of the board over the past year, and on June 23, 2014, Arthur S led the board in firing Artie T as the CEO. Since then all hell has broken loose in the Market Basket world.
Executives, Managers, Employees Aligned
On June 24, 2014, employees gathered in protest to demand the reinstatement of “their CEO” Artie T. The rally drew 300 people. Subsequent rallies have grown and the last one was estimated to have drawn 7,000 people.
When Artie T was fired, seven executives resigned. The managers have already threatened to resign if the board does not bring Artie T. back declaring their refusal to work for anyone other than Artie T.
In the meantime, workers are picketing and customers are boycotting. Deliveries are being refused, produce has disappeared, and shelves are bare in each of the 71 stores. It is estimated that the company is losing $10 million a day as a result of the revolt.
But why are employees and customers revolting?
They love Artie T. They are fiercely loyal to him. Here are some reasons:
- He is committed to paying above-the-competition compensation and benefits
- He is committed to the profit-sharing program that allows all employees to benefit
- He is steadfast in his promote-from-within culture
- He runs a financially successful company
Artie T’s commitment to promote-from-within has engrained this undying loyalty far more than the money. It is not uncommon at Market Basket for employees to work their way up from bagger to leader. As a result, many people have been with Market Basket for over 40 years. This inevitably leads to low turnover and allegiance to the leader at the top who maintains this world.
Executives, managers, and rank-and-file employees are aligned in their convictions, a sign of the culture that Artie T cultivates throughout Market Basket
Financial Success of Market Basket
In addition to being a man of the people, Artie T is a brilliant businessman. He has created efficiencies throughout the business. For example, the company carries no debt; it handles its own distribution; it stocks the stores with the same products allowing it to buy in bulk and maintain low prices for customers; and its insistence on hiring from within creates low turnover and training, and a workforce with engrained experience and knowledge, with little need for heavy leadership at the top. Employees at the store level are incredibly experienced in all aspects of running the store thus allowing the workforce at headquarters to need only 125 people.
All of this equates to a $4 billion dollar business producing enormous benefits to shareholders, employees, customers, and vendors alike.
Artie T has clearly aligned the priorities of the company with the potential of his people.
Are you doing that? Would people at every level of your organization protest for your reinstatement if you got fired? Or would they merely wish you well on Facebook?