Nordstrom should change into a more structured organization to make growth in organisation and profit possible thru efficiency and economies of scale.
Strengthen the control system with focus on beliefs and interactive control systems.
Reward team performance more than individuals.
Continue developing the Human resource dimension with selective recruiting, focus on employee satisfaction and employee turnover as key.
The service triangle at Nordstrom
The service triangle is shown in Exhibit 1 and contains 1) setting the promise, 2) enabling the promise and 3) delivering the promise.
Setting the promise
Nordstrom perform ordinary marketing activities but the main way of setting the promise is by performing excellent services so that the customer wants to come back, an image of excellence and word of mouth.
Enabling the promise
Is done by helping departments that asks for help, by providing statistics and financial information to all employees and by empowering the employees.
Initiatives are done from the bottom and up in the organization. Regularly meetings and communications between different managers, profit sharing, bonuses and commission systems is in addition to a strong Human Resource strategy (See Exhibit 2) the main factors in enabling the promise.
Delivering the promise
Is done mainly thru empowered employees with supporting managers and an individualized and customized approach both when it comes to the shops, the employee and the customer. The employees are highly motivated and it exist an entrepreneurial and enthusiastic spirit on the shop floor.
Change in organizational structure
A big company will need a more structured organisation and the one Nordstrom have today have to be more formalized if they want to expand into new geographical areas. To improving "enabling the promise" I suggest to build an organisation as shown in Exhibit 3 with a well structured centralized organisation with top management and support...