Last September, in “Explaining the Value of Logistics to the CEO,” I wrote that in order for CEOs to truly appreciate the value of logistics, they must experience it firsthand “by spending the day picking goods at the warehouse; driving shotgun on a delivery truck; finding capacity for uncovered loads; tracking and tracing shipments; building pallets near the loading dock; calling vendors overseas, and taking calls from customers, in both cases the same question: Where’s our order?”

Not long after we published this piece, commercials started airing for “Undercover Boss,” a new television show on CBS. The premise of the show is simple but brilliant: CEOs or other high-level executives go undercover for a week as new employees in frontline positions at their companies. Waste Management, Roto-Rooter, 7-Eleven, and 1-800-Flowers are among the companies featured this season. I haven’t had a chance to watch a full episode yet, but I’ve watched a few segments online and it’s an eye-opening experience…for both viewers and the CEOs involved. Below are two short segments from the 7-Eleven and Waste Management episodes.

Ellen Davis, VP and National Retail Federation (NRF) spokesperson, recently interviewed Chris McCann, the President of 1-800-Flowers, about his experience on the show. You can read the full interview at NRF’s blog site. But here is an excerpt, McCann’s response to his most surprising moments from his week undercover:

There were a couple eye-openers for me. One certainly is a stark reminder that retail is detail. Growing up in the retail business you’re always aware of that, but in these roles I was reminded about just how many details there are.

I was really impressed and took a lot of pride in the commitment and passion that everybody in all different areas of the company have – whether it’s the commitment to quality in food production facilities, commitment to quality in the floral division, the design capabilities, or the creative artistry.

We’ve tried to build the culture of our company on a concept that my brother Jim brought from his experience as a social worker: build a relationship first and do business second. We’ve always preached that in how we interact with our customers. But what I’ve learned from this experience is that it’s even more important to do that with the people that work in our company. This has changed the focus for me to make sure that managers at all levels of our company are building relationships with their employees. At the end of the day, if I want our employees to connect with our customers, they have to feel connected to our company. You only feel connected to the people you work with, not to a company brand or a name.

Employees are people, not overhead or headcount.

Employees are the brand.

Employees are as important as customers.

It’s amazing what you can see when your feet touch the ground.

What would your CEO find if he worked in transportation and warehousing for a week?

At a conference earlier this year, I listened to a presentation from a $5 billion chemical company that until late 2007 was still managing its transportation operations with spreadsheets and fax machines. It wasn’t until its transportation costs soared, due to the sharp rise in oil prices, that the company finally started to pay attention to transportation. And what did it find? The company’s ocean contracts, for example, had expired back in 2002, so it had been paying market rates for more than five years. But everyone in transportation and procurement thought they were doing a good job. A reminder that many cancers, both physical and corporate, are silent killers, with symptoms emerging only after the damage is done. 

What eye-opening experiences would your CEO have if he went undercover and worked in your logistics operations? Post a comment and share your viewpoint.

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