Host Suzanne Reed joins Joe Scarlett, former President and Chairman of Tractor Supply Company, to offer powerful insights on fostering a strong company culture, empowering teams, and leading with humility. Scarlett’s successful leadership career spans decades, though his personal mission has remained consistent: focus on cultivating people-centered practices that outlast trends and ensure sustained business success.
My Name is Joe
Honored by Forbes as one of the “Best Managed Companies in America,” Scarlett spent nearly 30 years in various leadership roles with Tractor Supply Company, often wandering the stores interacting with his employees.
“People would say, ‘Hello, Mr. Scarlett,’ and I’d say, ‘No, my name is Joe.’ Then I’d ask, ‘What part of the store do you take care of?’ And you’d tell me and I’d say, ‘Come on, let’s take a walk.’”
As they strolled through the aisles, what Scarlett calls “listening tours,” they’d discuss particular lines of merchandise and what could be done to improve sales. “And you’d start telling me, and in two minutes we’re best buds and we’re having good, honest communication with each other.”
For Scarlett, developing clear and open lines of communication are foundational skills for any successful leader. “It’s the name of the game,” he says. “You’ve got to be able to communicate and communicate effectively.”
It was so important to him that at Tractor Supply they would offer communication skills classes to employees, lessons he also shared at the Scarlett Leadership Institute which he founded to leverage the knowledge of today’s best business leaders to teach the next generation.
These listening tours didn’t just help him as a leader; they paid off in other ways as well. “I can tell you absolutely the very best ideas about new products and new systems in the stores came from listening tours, not just mine, but everybody’s,” he recalls. “The folks in the trenches know more about the business than we do, and we just got to approach the business with that attitude, that we’re not the smartest guys in the world. The smartest people in the world are the ones doing the work, talking to the customers.”
Scarlett shares that listening as a leader and being open to employee feedback are essential in creating a healthy work culture, “the kind of environment where people want to stay with you, where people see a future, where people see a value structure in the organization, which you can believe in,” he says. “And it’s up to us as leaders to walk the high road to set the right example.”
Empowering Others to Lead
For Scarlett, leadership means creating a vision and equipping people to act on it independently.
“I made very few decisions as a CEO,” he shares. “I made high-level strategic decisions with the input of my team, but for the most part, our senior executives simply made decisions.”
This trust allowed his executives and employees to act with autonomy, reinforcing a culture of confidence and accountability. It also allowed Scarlett to step away now and then without disrupting operations, a benefit he jokingly appreciates. “You can take vacations and feel comfortable because nobody’s calling you on the phone.”
Scarlett values decision-making not as a top-down directive but as a collaborative process, ensuring that all leaders feel aligned on company values and strategies. “We talked about where we’re going, and we talked about our values and strategies all the time,” he recalls.
This mutual understanding empowers leaders to “paint a clear picture for the future” for their teams, ensuring consistency and continuity through the years. It also strengthens company culture. “We developed our culture,” he shares, “based on always doing the right thing,” explaining that the company’s values were designed to support three main groups: employees, customers, and business partners.
This approach, Scarlett believes, prioritizes long-term relationships over short-term gains, focusing on trust, respect, and shared goals. “If we take care of our three key constituencies, our people, our customers, and our business partners, then the stockholders will do just fine.”
The impact of this philosophy was employed in everyday practices. Employees in every store were empowered to resolve customer issues independently. “Every team member has the authority to do whatever it takes,” he says. “Nobody ever gets in trouble for doing too much for a customer.”
This empowered culture, Scarlett says, fosters loyalty and trust, both with customers and within the team.
Staying True to Core Values in a Changing World
Scarlett’s legacy at Tractor Supply is a testament to the lasting power of core values. His approach to leadership and culture remains a cornerstone of the company today.
Reflecting on these principles, Scarlett shares, “Our mission is to work hard, have fun, and make money.” This motto encapsulates his vision of a balanced workplace where employees feel motivated, appreciated, and genuinely part of the company’s success.
Scarlett also made a point to incentivize teamwork by implementing bonus programs for hitting sales targets, creating a “we’re all in this together” mentality across the company.
Looking back, Scarlett attributes his success to keeping people at the heart of the business. “When you develop good people, you can have great results,” he says.
Scarlett’s story is a reminder that even in a fast-paced, ever-changing business environment, core values like empathy, listening, and a genuine investment in people can lead to a sustainable and impactful legacy. His approach highlights the profound impact a leader can have by empowering others, fostering a positive culture, and valuing each team member’s voice, all insights the “Culture Warrior” believes will create lasting, people-first organizations.
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