CASE STUDY 3.1 Naomi Milgrom’s four pillars of leadership

Naomi Milgrom is the owner and executive chair of The Sussan Group, a private company which incorporates three well-known brands, Sportsgirl, Sussan and Suzanne Grae. Milgrom identifies the conditions that her companies currently face as coming from a combination of:

That being said, Milgrom argues that the principles of the four pillars of her leadership style will continue to be useful well into the future. These are:

difficult economic times, political uncertainty, over-supply, a generation of more frugal consumers and, of course, a global shopping environment, 24/7.

1 A culture that supports women

It is important to create a workplace culture that supports women. Of the 4,500 employees working in the companies in her group, 95% are women. Unlike other fashion companies, the CEOs of all three retail brands are women, and women make up the majority of the senior management level.

‘A culture that supports women doesn’t come about spontaneously; it only happens when the leaders of companies create policies and initiatives to stimulate such a culture,’ she says. ‘In my experience, mentoring women into leadership is fundamental.’ This is an imperative for national productivity in Milgrom’s view.

Milgrom mentored the CEOs of both Sportsgirl and Sussan, Elle Roseby and Carole Molyneux, into their leadership roles, and supported them during and after they had children. ‘The CEOs of both Sussan and Sportsgirl were able to choose flexible work arrangements after their maternity leave,’ she says. ‘Other people in management, including myself, joined together to support these CEOs through this time.’

Flexibility is not a favour, she says. ‘It is a compelling business strategy that promotes productivity. We measure work performance in results, not in time at the office, creating a relationship of trust that actually increases productivity.’

2 A beautiful work environment

Four years ago, Milgrom commissioned a new headquarters for the group in Cremorne, Victoria. With 5,000 square metres of offices, a private art gallery, 3,000 square metres of car parking, a corporate dining room, boardrooms and studios, the premises were designed by Durbach Block Architects. It took two years to complete, and won two architecture awards.

‘What I am trying to achieve is a unique working environment that is beautiful, functional and inspirational,’ Milgrom says. ‘As we spend so much [of] our lives at work and as we want to promote ideas and creativity, I became convinced that a different kind of workplace would support our different kind of culture.’

The retail sector faces huge problems retaining staff and developing talent – for most, working in shops is a short-term job. Milgrom wanted to communicate her own passion for her businesses and to make a workplace that her staff loved. She specified a ‘bright, healthy’ space, contemporary design and architecture, plenty of modern art and views of the landscape. ‘It was important that it expressed the things that I find uplifting.’

3 Management by conversation

Milgrom long ago rejected the authoritarian model of leadership, believing that it stifled innovation, creativity and agility. ‘Hierarchies and authoritarian approaches are not conducive to the free flow of ideas,’ she says. ‘They also default to the conventional. They tend to prefer to do things as they have always been done.’

‘The rigidity of hierarchy is totally inappropriate for the fashion business, where we have to adapt quickly to capture new ideas and constantly reinvent ourselves.’ She talks with her staff, encourages them to say what they think and to try new ideas. ‘I do recognise that as a leader I do not have all the answers. And therefore the best way of arriving at a solution is to bring together a diverse inventive team so that we can aspire to excellence.’

Pride in work comes in part from supporting causes that matter to the staff, which is also a priority for Milgrom. Leaving staff to select the cause and to determine how they want to help has resultedin the three businesses choosing different causes. Sussan works with the breast cancer networkof Australia; Sportsgirl campaigns against eating disorders in young boys and girls and helped the Butterfly Foundation establish a wing for patients with anorexia at the Westmead children’s hospital in Sydney; Suzanne Grae is in partnership with the White Ribbon foundation against domestic violence. She says: ‘People want to be proud of the organisation they are working for, of the contribution they are making.’

4 A focused pursuit of excellence

Partnerships with world leaders in store design, retail innovation, brand building is one way Milgrom uses to challenge her businesses to achieve new and higher standards. Two of its Sportsgirl outlets have been revamped into ‘flagship stores’ designed by British architects, HMKM, each with 12 defined areas for consumer to explore. ‘Two flagship Sportsgirl stores have won international awards,’ she says. ‘We have enlisted Mary Portas, who you will know as Mary Queen of Shops, as a creative collaborator for our brands.’ Mary Portas, the host of a British TV series called Mary Queen of Shops, troubleshoots struggling fashion retailers by injecting glamour and sex appeal back into them. Milgrom says: ‘We are constantly looking outside for examples of excellence and we enlist world leading authorities, collaborators and advisers of models for our businesses.’

Milgrom is confident that her leadership style will continue to give her the skilled staff, agility and innovation to overcome the challenges facing the retail sector, and keep her brands relevant in the future.

(Source: Kath Walters, ‘Naomi Milgrom’s four pillars of leadership’, Smart Company, 28 June 2012.)

Analysis

1  Identify and describe five stakeholders of the Sussan Group.

2  Describe the four pillars of leadership that Milgrom believes will stand the test of time.

3  Identify and explain the characteristics of the management style which best fits with Naomi Milgrom’s approach to running her businesses.

4  Evaluate whether you believe the approach adopted by Naomi Milgrom will continue to be effective into the future.