Advance Auto Parts

Steven V. Hagen

Digital Commerce Pathfinder

Steven V. Hagen is the Senior Director of Enterprise Ecommerce Product, Merchandising & SEO at Advance Auto Parts. He excels in digital transformation, enhancing customer experiences, and driving online growth. With extensive expertise in ecommerce and SEO, Hagen leads innovative strategies to optimize product merchandising and boost revenue.

My journey to my current role at Advance Auto Parts began in an unexpected yet profoundly impactful way—working on the front lines of our stores during college. What started as a means to support my automotive hobby and fund my education quickly turned into a foundational experience that shaped my leadership style. Immersed in the day-to-day challenges of frontline team members, I gained invaluable insights that have informed how I lead and treat others within the organization. This experience taught me that true leadership requires empathy and a deep understanding of every role within a corporation.

In any organization, distractions are inevitable, but the ability to sift through these and focus on impactful projects is what sets successful leaders apart. This often involves making compromises on smaller issues to concentrate on larger objectives. Staying focused on what truly matters is a key lesson that has driven our strategic initiatives at Advance Auto Parts.

Contrary to my early beliefs, large organizations do change frequently. Every 4-6 months, these changes present opportunities to influence and steer the team towards larger goals. Managing upward while keeping the team aligned with overarching objectives during times of change is crucial for maintaining productivity and leadership performance.

The "Cash for Clunkers" program in 2009 posed significant challenges by reducing the vehicle pool crucial for the automotive aftermarket. This, coupled with low new vehicle production, intensified competition. During 2011-2015, Advance Auto Parts had to innovate rapidly within our eCommerce portfolio, partnering with third parties to enhance promotional strategies and product assortment. Re-prioritizing quickly allowed us to grow our customer base and advance our digital strategy amidst industry challenges.

"We view success as a team effort, sharing results collectively. Structuring our organization so that interdependent teams work under one umbrella enhances internal partnerships."

Since 2015, the entry of big-box retailers like Amazon, Walmart, Lowe’s, and Home Depot into specific automotive categories has intensified competition. To differentiate, Advance Auto Parts leaned into services like free installation for wipers and batteries, which competitors, especially Amazon, do not offer. Simplifying the customer experience through innovations like oil change bundling in our eCommerce and mobile app has been essential in maintaining our competitive edge.

Promoting collaboration within our organization and with external partners is fundamental to driving innovation. We view success as a team effort, sharing results collectively. Structuring our organization so that interdependent teams work under one umbrella enhances internal partnerships. With external partners, setting collaborative goals and holding each other accountable ensures alignment. Quarterly leadership meetings with partners further solidify this collaborative approach, ensuring mutual progress towards shared KPIs.

Sustainable growth requires a careful balance between innovation and risk management. We have historically invested 20-30% of our budget in truly innovative initiatives while allocating the rest to technology enhancements, stakeholder requests, and "sure bets" backed by customer research. This strategy ensures that while we pursue groundbreaking ideas, we also maintain a steady path towards revenue generation.

Three core principles guide my leadership: simplicity, respect, and feedback. Simplicity ensures clear communication and effective execution of plans. Respect for all team members, from the CEO to frontline staff, fosters a high-trust, collaborative environment. Feedback, and the ability to act on it, is essential for continuous improvement and aligning with the ideal leadership vision.

For professionals aspiring to leadership roles in automotive retail, putting the customer first is paramount. Balancing corporate objectives with customer needs is a delicate yet crucial skill. Additionally, having a passion for the automotive category helps in leading and inspiring teams. Lastly, transitioning from a doer to an educator, empowering team members with knowledge and understanding, is vital for achieving collective success.