The Velveteen Vendor: The Long View and Becoming Real

I recently had the great pleasure of meeting Indra Nooyi, the former Chairman and CEO of PepsiCo. I

listened to her answer questions in a fireside chat and in her recent interview at Fortune’s MPW

International Summit. As I listened to her (which I could do all day), I understood why she has had such

success, and why she is a rare breed of leader. Among many profound things she said, the one that

resonated the most is, “All CEOs should run the company for the duration of the company, not the

duration of the CEO. My success should be judged on how well my successor does, not just how well I

did.” In an era of instant gratification, where investors, boards of directors and customers are demanding

meaningful short-term results, it is important to understand the long-term impact of your company and

the opportunity.

 

Indra understands the long view and has tailored her results to deliver a controlled (and potentially

lesser) short-term shareholder return, while continuing to invest in the hard work of effecting a longterm

positive impact – not for just her company but, even more, for society and the environment.

As a leader, if you are running the company for the duration of the company instead of your tenure, you

need patience and the fortitude to think deeply about context, the root of any problem, and unintended

consequences. It is human nature to react as quickly as possible, but reactions are based on insufficient

information and, without careful consideration, often miss the most important aspects.

 

One of my favorite children’s books is The Velveteen Rabbit, by Margery Williams. The story is a

beautiful metaphor for the value of authenticity and vulnerability. While it is sad to see the rabbit

discarded after being so open to the love of the boy, it is a poignant example of how our flaws and

imperfections are transformed when integrated and fully accepted. When we allow ourselves to

understand, and our challenges to be understood, we become “real” through our openness. “Does it

happen all at once… or bit by bit?” As in any relationship, becoming real takes a long time and often

“doesn’t happen to people who break easily, or have sharp edges, or who have to be carefully kept.”

How can we as an industry build and strengthen long-term relationships – become more “real” – with

truth, transparency and trust at the core?

 

Short-term thinking is rampant in the retail industry, and hard to avoid because the customer

expectations are changing so rapidly, but there are many examples of the long view paying off for

business and customer relationships. Mutual respect, and shared vision and values are the foundation,

and then strengthened through empathy.

 

Two kinds of empathy are key to building real relationships and creating change. The first, ‘cognitive

empathy’, is ‘empathy by thought’, rather than by feeling, and is developed through understanding the

challenges on both sides. From the heritage of relationships that are rooted in “buyer/seller”

(sometimes with an air of master/slave), change isn’t easy because it requires vulnerability and trust, of

the person, and how the shared information will be used. The second is ‘compassionate empathy’.

Everyone’s a stakeholder in this change. Solution providers and the retailers each have a responsibility to

be good partners, transparent, forthcoming about their needs,and to demonstrate a willingness to change.

When the relationships are rooted in trust, ‘compassionate empathy’ can happen, which is ‘feeling someone’s

pain’, and acting accordingly. So, Velveteen Vendors, are you ready to look in the mirror? It starts with who

you are as a person. Your products and services are important but relationships are not formed on what you

have, they are based on who you are.

 

Transformation is the top issue in our industry and long-term foundational thinking will help navigate

the continuing change. We are stronger together and every day see new pairings and partnerships in

service to a more holistic experience for the end consumer, and all boats rise.

I have worked in every part of this industry and am not naïve to the difficulty of altering how business

gets done. The adoption of new business models to build long-term empathetic relationships, may

negatively influence the transactional bottom line in the short term. One of my favorite prayers says,

grant me the serenity to accept the things I cannot change, the courage to change the things I can, and

the wisdom to know the difference. While it may seem that we must accept the business relationships

the way they are, I prefer having the courage to make it better for this great industry, and so should you.

 

The Vendors in Partnership (VIP) Awards are an industry celebration for the solution providers that are

powering the retail ecosystem. In addition to celebrating great solutions, the companies that are

recognized are those that are willing to make changes that are meaningful in creating a better

partnership with the retailers, increasing the success of all.

 

Join me, and be recognized for being brave, innovative, supportive. “Real” lasts a lifetime.

For more information and to enter, go to https://vendorawards.com/.

 

Contributed by Vicki Cantrell.