Why ‘The Nordstrom Way’ Belongs on Every Entrepreneur’s Reading List

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When I find something I’m interested in, I go full-on aficionado. For instance, I obsess over Henry and Hazel (our backyard owls), and we have cameras in an owl house in our backyard so I can watch Hazel and her owlets as Henry flies in search of food. If I make a dessert, it’s gotta’ be the bomb. It has to be memorable for my guests, and I’ll put my creme brulee against any restaurant’s. So, so good! These days, I’m always raising my art game, taking classes, and dedicating time each week to my watercolors. I must say, I’m seriously improving. If you saw last year’s efforts versus this year’s, you’d agree. 

Of course, these are all amateur endeavors. I’ll never “go pro” as a bird expert, dessert maker, or painter. But I do make a profession of being a connoisseur of service. Who’s doing it well? What are they doing that makes it special? I absorb every lesson I can find and think about what I can use. 

Why Service Excellence Matters More Than Ever 

Think about how you feel when you’re truly noticed, when someone has put your well-being at the forefront of their thoughts and acted on that. This can be hard to do, right? We’re all consumed with our daily stresses. We each have a heavy basket of burdens we’re lugging around, and it can be hard to think of other people’s heavy weight. It’s easy to assume we’re all too stressed to care about each other. 

That’s why the exceptions stand out. When a person sees you struggling with something and takes that extra step to relieve your burden, doesn’t the world feel momentarily better? There’s an uplift in that moment. And I’m convinced that uplift goes two ways: for the giver and receiver. To commit to service brings an inner peace that can’t be found in any other way. It’s uniquely special. 

The numbers back this up. Research shows that 95% of consumers say customer service is essential for brand loyalty, and increasing customer retention rates by just 5% can increase profits by 25% to 95%. When you build a business around service, you’re not just creating happy customers. You’re building sustainable growth. 

The Christmas Gift That Reinforced Our Values 

That’s why one of our Christmas bonuses for our U.S. employees was a $500 donation in their name to a nonprofit of their choice. They picked a cause and felt the difference they made. Obviously, they’re making their own contributions in the world in many other ways. But my point to them is that we must constantly focus on service and bettering the world around us, both in work and outside of it. This is emphasized in every meeting we have. We are individuals focused on service. We are an organization built on service to each other, to our clients, to our virtual employees, to everyone in our orbit. 

If you work for me, you must be ready to read. My team knows this, so it was no surprise to them that another Christmas gift was “The Nordstrom Way.” I love the Nordstrom mindset, and it’s exactly what we preach at HireSmart. Customer service isn’t a department or initiative. It’s the business itself. Creating satisfied customers is the only sustainable path to long-term success. And that satisfaction comes with service, with that extra effort that lets individuals know they’re seen, heard, and appreciated. 

Five Principles Every Service-Oriented Business Needs 

I recommend all business owners (and their employees) read that book. But if you don’t have the time, here are five key takeaways of “The Nordstrom Way”: 

The Organization Is Structured as a Reverse Pyramid
Customers sit at the top, frontline employees directly beneath them, and managers and executives exist to support those employees. Authority flows upward in service of the customer, not downward for control. When I talk with my HireSmart team, I’m always asking, “How can I serve you today? What struggles are you having, and how can I help you solve them?” I say this in part because this is the mindset I want them to take into every interaction they have. 

Empowered Employees Deliver Better Outcomes Than Rigid Policies
Nordstrom famously operates with minimal rules, relying instead on employee judgment. Associates are trusted to make real-time decisions to serve customers effectively. I constantly talk with my team about core values, and this empowers them to think about alignment. Is this decision in line with our values? They have great leeway to make decisions within that value structure. And that autonomy gives them a more meaningful work experience, while also improving their relationships with others. 

Long-Term Relationships Matter More Than Short-Term Transactions
Nordstrom prioritizes lifetime customer value over individual sales. Associates are encouraged to build ongoing relationships, even if it means losing a sale today, to earn trust, repeat business, and advocacy over time. I’m a firm believer that relationships matter more than dollars. Money is a byproduct of excellent service. It’s a secondary consideration. When you forget this, that’s when your bottom line will be truly threatened. 

Internal Respect Precedes External Service Excellence
Nordstrom makes clear that customer service cannot exceed the level of respect shown inside the organization. How leaders treat employees directly influences how employees treat customers. Your organization will fail if you try to be “customer-centric” but have a team that doesn’t feel respected and united. You must have each other’s back. Without that, employees don’t feel served by the organization, and the culture collapses. 

Hire for Character and Service Mindset, Then Train for Skill
Nordstrom prioritizes attitude, initiative, and genuine care for people over technical expertise. The belief is that skills can be taught, but empathy, ownership, and service orientation cannot be manufactured. That’s really the essence of hiring. Of course you look for a great skillset, but just as importantly, who is this person at heart? Is this a dependable, thoughtful person who can truly be service-minded? That is the core of HireSmart’s service to clients: we find service-oriented employees. That’s why we have a 98-percent successful placement rate. 

When you’re evaluating candidates, pay attention to how they talk about previous teams and customers. Do they light up when discussing how they helped someone? Do they naturally look for ways to make things better for others? These aren’t questions on a skills test, but they matter more than any certification. 

Building Your Service-First Team 

I’m truly a service aficionado, and I think that’s a necessary trait for any entrepreneur. I bet this describes you, too, because you’re working hard to make the world better in your own specific way. But you need a team, right? You can’t do this all alone. If you want to partner with us, my team is 100-percent committed to serving you, and we will help you build your organization the way you envision. We have hundreds of relationships in this way, and each one is special. Let us know if you care to talk. We’d love the chance to serve you. Click here to schedule a free consultation. 

 

About the Author 

Anne Lackey is the Co-Founder and CEO of HireSmart Virtual Employees, where she helps businesses scale with full-time, highly trained remote staff. With decades of experience in business operations and systems, Anne is a recognized expert in virtual staffing, process efficiency, and team building.

Anne Lackey

Anne Lackey is the Co-Founder and CEO of HireSmart Virtual Employees, where she helps businesses scale with full-time, highly trained remote staff. With decades of experience in business operations and systems, Anne is a recognized expert in virtual staffing, process efficiency, and team building.


Learn More about Anne