8 Ways Costco is Providing a Leadership Clinic Through its COVID-19 Response - Michael E. Perry, Ph.D.

8 Ways Costco is Providing a Leadership Clinic Through its COVID-19 Response

This might sound a bit like an advertisement. It is not. I receive no compensation from this corporation (…but would accept it with great joy). If you do not have a Costco membership, you are currently missing out on one of the most compelling demonstrations of corporate responsiveness, responsibility, and leadership you will ever witness. One disclaimer: I am describing the Augusta, Georgia store. If your experience is similar in your location, please comment and let me know. If you have had a different experience, I want to know that too!

At every stage of this COVID-19 crisis, Costco has met and exceeded guidelines instituted by government entities at every level. Choose your favorite store. Whatever they have instituted, Costco is probably better. From the front door, to the checkout and exit, it is clear they are going above and beyond to protect their customers and employees so that people can get what they need and go home safely. I should note here that Costco is not perfect, but I believe that effort does count in this case. I’ve seen no one that matches their level of effort. Read on, and see if you agree…

Let’s start at the front door. The first thing I noticed a couple of weeks ago were hundreds of pallets configured to form a pathway that snaked its way to the entrance. This ensured people were guided into a single file line, with at least six feet between customers from side to side. Wondering how far to stand from the person to your front? No worries. Markings on the pavement help to create a precise 6-foot barrier to your front and rear. Impressive? Just wait.

This pallet-laden path occupies the entirety of what used to be the cart storage area, and then some. I know you are curious about the whereabouts of the carts, right? At the end of the path, a customer service agent greets you (with protective gloves on and with appropriate social distancing, of course), and asks you to wait until the way ahead is clear. When the person to your front enters the store, you are invited to move forward toward the door where another representative and a cart awaits—a freshly sanitized cart. That’s right. They have taken control of every cart on the lot. The carts are all returned to a single point, where they are wiped down and placed in the cue. There is a team of 3 to 4 employees at the front of the store. Their only job is to manage customer flow, clean carts, and distribute them to customers. Am I kidding? No.

I can be a bit of a germophobe on my best day, so as you might imagine, I have my senses set to 100%. Costco was made for people like me in this moment. There is normally a jewelry counter not far from the entrance. It’s gone. No need to have people touching surfaces on non-essential displays. Next, I found myself hesitant to open the freezer. “Do they wipe those handles down?” That was my thought. In a very few minutes, there she was—the employee responsible for wiping down freezer door handles and pretty-much anything else in the store that might be grabbed or touched. They were really talking my language at that point, but they were not done.

As I moved toward the checkout, those wonderful pavement markings appeared again. There was a staging line just as you approach the registers. All avenues of approach were blocked, except one, where the line formed. At that point stood an employee whose job it was to direct customers toward the proper check-out line. If you are a Costco regular, then you know that their registers are not marked with numbers. Minor inconvenience. They created numbers. At each checkout line, there were more markings on the floor, ensuring that we knew what 6 feet of distance looked like at every point where people might cluster.

As I approached the register, one rep took control of my cart, as the other scanned my card with a reader—no exchange required. Only a week earlier, they would have grabbed that card without hesitation. Both employees wore protective gloves, but it didn’t stop there. Costco has installed plexiglass barriers—I would assume to shield cashiers from random sneezes and coughs. After all, they have to assist hundreds of people, at close range, every day. Working at a cash register has become hazardous duty. The last step was to grab my own receipt (which I have ALWAYS wanted to do anyway), and I was on my way. Did I mention that they wipe down the checkout area after EVERY customer?

At the exit, where someone would normally grab your receipt to verify your purchase, they had me hold it up for a quick scan…hands free. If this experience were all there was, then I would be satisfied, but wait…there is more. The gas pumps…

Gas pumps are constantly being grabbed by human hands from sunrise to sunset. Costco is acutely aware of this fact. I have taken to wearing protective gloves at gas stations, but Costco is the only place where I’ve thought I might have nothing to worry about. Why? They spray and wipe down the pumps after EVERY customer. No need to adjust your screen. You are reading that correctly. Every. Single. Customer. There is a team whose sole job is to monitor the pumps in use and ensure that the nozzle, buttons, and touchable surfaces are cleaned immediately. I could probably sleep there.

So, what does all this have to do with leadership? “You shall know a tree by the fruit that it bears.” Leadership is apparent in many things that don’t scream “Look at us…we are leading!” Costco is demonstrating those things in 8 distinct ways: Anticipation. Social responsibility. Care for people. Doing the right things without being forced. Going beyond “just good enough” to possibly overdoing it to create a sense of comfort and safety. Investing what it takes to do things the right way. Responsiveness. Adaptability. Everything I witnessed at Costco suggests that this company is well-led and responsive to the needs of its employees and customers. If you read the news, Costco is not untouched by COVID-19. With such a massive workforce, that’s inevitable. But based on our conversations with employees and our observations onsite, it’s difficult to find any other establishment going to such lengths.

How might Costco’s approach inform your approach to leadership? In what ways are you demonstrating these leadership behaviors—especially during crisis? Review these and consider what they might look like in your day-to-day actions:

• Anticipation
• Social responsibility
• Care for people
• Doing the right things without being forced
• Overdoing it to create a sense of comfort and safety
• Investing what it takes to do things the right way (not always monetary)
• Responsiveness
• Adaptability
If these behaviors describe you or your organization, there will be more good days than bad.

Dr. Mike