Leadership Fundamentals

In this episode, Chris McCann, President and COO of 1-800-FLOWERS, America’s largest florist and online gift shop, goes undercover to try and understand what practices the company is lacking in and how to battle the image of his company as simply an internet business.

A little background information: His older brother, James McCann, started his chain of florist shops — at the time known as Flora Plenty — in the New York City Metropolitan area in 1976. In 1986, he made the important decision to acquire the 1-800-flowers phone number and changed the company name. They were reportedly the first company to incorporate a toll-free number into their business name. They were no stranger to leadership.

Their vision of where business was headed had them on the internet in the 1990s. They have been around for 33 years and have grown to a billion dollars in annual sales. They pride themselves on quality and in knowing who their core customers are. And they know how to keep their costs in line. They had 5 service centers a few years ago and were able to cut that down to 2, offering their employees the ability to work from home and make more money. You’ll recognize some of their companies immediately — Fannie May Confections, the Wine Tasting Network, the Popcorn Factory, Plow & Hearth.

They obviously know how to run a successful business, but they wanted to know firsthand where improvements could be made that would benefit the company and its employees. So Chris went undercover, and spent a week going to several 1-800-flowers locations. He discovered the reason why one of their most profitable locations did so well. The woman who managed it, Dee, had built strong relationships with people in the community. She treated patrons like family and their loyalty made them staunch customers. Chris recalls that his brother Jim’s philosophy is to build relationships first, then do business. Chris considered her “fantastic”. In fact, he was so inspired by her, the company named a floral arrangement after her: Dee’s Paradise.

As usual, there are employees here who are of great value. The creative floral designer who paid for her own classes and seminars to keep up with new trends in the industry. The store manager who understands that well-to=-do potential customers are put off by the company name, or don’t realize it’s an actual florist, not just an internet service. When an undercover boss is willing to go to the trenches, he leaves with a bundle of information which, if acted upon, will strengthen the company and create dedicated employees.

P.S. Chris did extremely well with the flowers, but not so good with the Fanny Mae chocolates. It was reminiscent of Lucy and Ethel’s I Love Lucy episode which took place in a candy factory. Neither one of them could keep up with the conveyor belt and ended up stuffing chocolates in their pockets and mouths and anyplace else they could think of.

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1. FTC Disclosure Statement

This entry was posted on Thursday, April 29th, 2010 at 5:19 pm and is filed under Leadership, Management, Motivation, Organizational Leadership, Undercover Boss. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.