The secret to Next CEO Simon Wolfson's success is to turn setbacks into victories

Simon Wolfson, the CEO of Next, says a book about military strategy during World War II is responsible for his success

Eighty years later, what lessons can business managers learn from this book, and how did Wolfson apply them to Next?

Simon Wolfson is considered by many to be the most capable CEO of any FTSE-100 company. In 1991, he joined Next, where his father was chairman at the time. At the age of 30, he was appointed to the board in 1997, and in 2001, he assumed the top position. Originally established in 1981 as a mid-market fashion retailer, Next overgrew and almost went bankrupt in 1988. Under Wolfson, it has grown globally, purchased other brands, and increased its market value to £18 billion. It's worth listening to him.

He says, "Just one," when asked which business book he would suggest. Bill Slims Turns Loss into Triumph. This book, first published in 1956, tells the story of Field-Marshal William Slim's leadership of the British 14th Army during the retreat through Burma in 1942, the defense of India against a determined attack in 1944, and the subsequent defeat of Japanese forces in Burma by June 1945. This was in spite of extremely challenging terrain, being outnumbered, under-equipped, and under-supplied, as well as the fierce Japanese defense. Eight decades later, what lessons can business managers learn from this book, and how did Wolfson apply them to Next?

All of Slim's senior commanders were people he had known and trusted for years, so he could confidently assign work to them. In a similar vein, Wolfson hires from within rather than from outside; 28 of his top 30 managers have received promotions and have worked at Next for a total of 500 years.

Slim exhibits a resolve to get along with, even like, infamously challenging individuals on the same side. These included Aung San, the leader of the Burmese nationalist movement; Orde Wingate, the commander of the Chindits commandos, who did not view Slim as his commanding officer; and "Vinegar Joe" Stilwell, the American in charge of Allied forces and Chiang Kai-Shek's chief of staff. Additionally, he developed close ties with the RAF, the Americans, and the Allied commander in the Far East, Louis Mountbatten. Wolfson's lesson is to respect and like the people you need to succeed, rather than just getting along with them.

The leadership style of Simon Wolfson.

Slim's success was largely dependent on morale. "I made it a point to speak with the officers of each combatant unit. Gurkha, African, Indian, or British. I frequently gave three or four of these stump speeches in a single day, using my jeep's bonnet as my platform and gathering the men around it. Wolfson also visits stores, offices, design centers, and distribution warehouses as frequently as he can.

Although Slim had a general plan, he was ready to adapt if conditions and attitudes changed. He actually saw Japanese rigidity as a major vulnerability, which meant that if the 14th Army did not react as anticipated, the Japanese would become confused. Similarly, Wolfson highlights his doubts about a rigid long-term plan and the significance of being adaptable to changing conditions. As a result, when technology made it profitable to do so, the company expanded internationally and acquired other brands like Joules and Cath Kidston.

Slim was eager to own up to his mistakes and acknowledge failure. He believed that it was crucial to move on and learn from mistakes because "the lessons from defeat are more than from victory." A defeated general will turn on himself and doubt the fundamentals of his leadership, but he must overcome these regrets as they eat away at his resolve and self-assurance if he is to command once more. Wolfson is always willing to acknowledge setbacks and never gets upset in front of others.

He respects Slim for his readiness to withdraw rather than obstinately defend a weak position, as he did prior to the Japanese attack in 1944. He states that "when in doubt about two courses of action, a general should choose the bolder" as the outcome was a blend of prudence and audacity. A CEO ought to as well.

In contrast to Slim, Wolfson most likely didn't have to improvise to deal with shortages. He had roads built, river craft made, and even jute parachutes made to make up for the lack of silk and specialty cloth. Supply issues weren't a reason to do nothing, but rather a challenge to be overcome. Wolfson is probably able to provide similar anecdotes. Similar to Slim, he places a high value on intelligence; in Burma, it concerned the whereabouts and state of Japanese forces; for Wolfson, it involves assessing how the market is evolving.

However, the most significant similarity between the two leaders is their appreciation of the significance of logistics. For Slim, this included maintaining vehicles, providing food, fuel, and ammunition, as well as treating and evacuating injured people. During 1944 and 1945, a large portion of the logistics involved airborne operations, including building forward airfields, controlling the skies, and gathering and distributing stores. Japanese casualties were significantly higher due to inadequate logistics.

General Sir William Slim (18911970) traveling from the Savoy Hotel to London's Guildhall.

Sir William Slim, General.

Wolfson defines logistics as supply chain management, store distribution, return processing, and service integration throughout the chain. You may believe that retail success occurs at the point of sale and that wars are won on the battlefield, but generals and retail CEOs fail in the absence of effective logistics. Slim concentrated on the entire army rather than just the soldiers on the front lines. "It was necessary to make every soldier understand how his job fit into the overall scheme of things." In any business, the same is true.

Slim blends contemptuous ruthlessness toward the Japanese with deep regard, affection, and loyalty for those who support him. It's possible that Wolfson has a similar mindset to people who cross him in business, but it would be wise for any prospective adversaries to keep this a secret.

Slim went on to become Australia's governor general and head of the Imperial General Staff following the war. He passed away in 1970 and was a well-known lecturer on leadership. Wolfson's management book will be worth reading if he ever writes one.