I’ve been a student of retail for most of my career, and I’ve admired Costco for years. But my recent conversation with Alison Francis, Costco’s Vice President and Chief Diversity Officer, gave me an even deeper appreciation for what makes this company so remarkable.
It was our most engaging Storytellers: Leadership Beyond the Script conversation yet. The questions kept coming, and understandably so. Alison was refreshingly candid, thoughtful, and comfortable in her own skin. She spoke with the ease of someone who knows her values because she’s spent a lifetime living them.
Having joined Costco at 16, Alison has grown alongside a company that has made taking care of people central to its business model. Five lessons from our conversation stayed with me.
1. Values mean something when they’re tested.
Alison shared that when Costco attracted attention for maintaining its inclusion practices amid political pressure, some described the company as “doubling down.”
Her response was telling:
“This isn’t a double down. This is who we are. This is who we’ve been.”
Costco’s mission and code of ethics serve as its guide through difficult decisions, from tariffs to public controversy. There is something instructive about an organization that doesn’t have to rediscover its principles every time the headlines change.
2. Investing in people makes good business sense.
Costco generates more than $303 billion in annual revenue while maintaining exceptional employee retention and customer loyalty.
Alison described a company that treats employees as long-term investments, with competitive compensation, benefits, and opportunities to grow.
In a business environment where workforce investments are sometimes framed as threats to profitability, Costco offers a compelling example of how caring for employees can strengthen performance.
3. Opportunity must be intentional.
One of my favorite stories involved Costco co-founder Jim Sinegal encouraging a young Alison to finish college rather than abandon her education for an attractive corporate opportunity.
He saw the person and her future, even when an immediate business opportunity was available.
Today, Costco’s Supervisor in Training program allows employees to explore leadership roles. Alison shared that more than 35,000 employees have participated since formal tracking began in 2021, with nearly 52% advancing into permanent supervisory positions.
Imagine the talent organizations overlook simply because nobody creates the opportunity for someone to raise their hand.
4. Loyalty is earned through relationships.
Alison described Costco’s customers as members whose feedback shapes everything from local product selection to the shopping experience.
Her explanation was simple: relationships matter, and listening is part of the business.
With membership renewal rates exceeding 92% in the United States and Canada, that approach has clear commercial significance.
The same principle extends to suppliers and communities. Costco’s culture is evident in how the company treats people across its entire business.
5. Leadership is measured by what we make possible for others.
Perhaps the most revealing moment came when Alison described how Costco leaders actively prepare employees for opportunities they may not yet be ready to pursue.
She also acknowledged that compensation alone no longer motivates everyone to seek leadership. People need support, mentorship, and a reason to see themselves in the next role.
That speaks directly to The ELC’s mission of developing executives, expanding opportunity, and opening doors for those who follow.
A Final Thought
What struck me most was Alison herself. Her warmth, humility, and authenticity reflected the culture she has experienced for nearly three decades.
She closed our conversation with words from Sol Price, the “father” of the warehouse club concept and Sinegal’s mentor, that deserve to stay with every leader:
“Don’t predict the future. We need to create it.”
That’s a responsibility worth carrying forward.
If you missed this extraordinary conversation, I encourage you to watch the full Storytellers discussion with Alison Francis. There is much more to learn from her story.
