The Inverted Pyramid

Perhaps the most in-depth research done regarding Nordstrom and its service philosophies is Robert Spector’s book The Nordstrom Way (New York: John Wiley & Sons, 1999). In his book, Spector tells stories that deal with the extraordinary empowerment that Nordstrom employees have in dealing with customers, how they feel free to make decisions for their customers on behalf of Nordstrom without fear of management disapproval. “Nordstrom would rather leave it up to me to decide what is best,” states one Nordstrom employee. This empowerment is probably the most well-known aspect of the Nordstrom culture because it the most easily noticed among customers.

Spector further explains the organization of Nordstrom as an “inverted pyramid.” By this, he explains that the top of the organization, the widest base, is occupied by customers. The pyramid then descends to sales/support employees, department managers, and on through to executives, the chairman, and the board of directors. It is the exact opposite of the traditional organization chart. In the Nordstrom chart, the entire workings of the organization support the sales department. “The only thing we have going for us is the way we take care of our customers,” explained Ray Johnson, retired cochairman, “and the people who take care of the customers are on the floor.”

Nordstrom constantly reinforces the notion that employees should be left to use their best judgment. The philosophy is that if given enough room to make decisions on their own, employees will make decisions in the best interest of the company.