There was time in my life when I shopped at Penneys. In fact, during my college days, I sold men’s clothing for a while in the downtown Penneys in Abilene, Texas. But, I don’t remember the last time I went into a Penneys. It was at least 12-15 years ago.
So, the short-tenured turnaround effort of Ron Jonson did not draw me back in – but it did not lose me either. I was “lost” to Penneys long before.
But, this is quite a story, isn’t it? The celebrated creator of the massively successful Apple Retail Store concept, Ron Johnson was brought in to work his magic for Penneys, J. C. Penney’s, JCPenney, JCP, (I still call it by its name from years ago, Penneys). His turnaround effort did not work.
And now, as we have all read, Ron Johnson is out, a former CEO is in for the time being, and Penneys, I think, is pretty much in survival mode struggle.
Here are a few reflections. These are just mine, “thinking out loud.” I have read a number of items about this, but have not saved the links. So, this is from memory, with my simple reflections added.
Some takeaways:
Takeaway #1 – Success in one arena does not always translate into success in another. The Apple Store really is a different animal that a Penneys store.
Takeaway #2 – Start up, new creation skills might be a whole lot different skill set than turnaround skills.
In fact, there is a parallel in church life (I spent an earlier part of my life in full-time ministry). Though there are “successful, growing” older churches, the big mega churches are frequently the result of a new young Pastor “planting a church,” with a whole lot of freedom, and not as much tradition to fight… The list of “old, city churches” in survival mode is a very long list.
Takeaway #3 – To change a culture into something that it is not is just… maybe hopeless. How do you take a long time retail culture and turn it into a brand new one? I’m not sure you can do that.
Takeaway #4 – Leadership requires all in commitment. And, certainly, access and presence. You know the quote, from that great business thinker, Woody Allen: “Eighty percent of success is showing up.” One of the most curious tidbits I read is that Ron Johnson never moved to the area (Plano, TX). He commuted in by plane each week. Big mistake. Big mistake!
You know, most cities require the City Manager to live in the city they serve. Mayors have to establish “residency.” The sheer symbolism of his commute was just… (I’m tempted to call it) “stupid”.
Takeaway #5 – Here is a real challenge. How do you go after new customers in ways that will attract them, while keeping your old customers who grew familiar with, and liked, your old way of doing business? This is apparently a big part of the failure in the Ron Johnson playbook. He didn’t get enough new customers; he drove away the long-time customers. This is a whopping challenge.
By the way, this is why “changing the culture” of an older church is so very difficult. Getting new people into church – people who have already said no to the “old way” of church — is tough. Changing enough to attract such folks, while keeping the long-time folks. Really, really difficult!
Takeaway #6 – And maybe Penneys is a snapshot of a bigger issue. What is the lifespan of a “yesterday” approach in a world of blinding change?
Somewhere I read that it may be correct to blame Ron Johnson somewhat, but this writer described it this way – Mr. Johnson was asked to become the Captain of the Titanic after it had already hit the iceberg. This may be an accurate description of the impossibility of his task.
So, maybe Ron Johnson attempted a noble thing – to breathe new life into a corporation that may be on its last legs anyway. He couldn’t pull it off. And, maybe someone can come in, and make it work. If so, that person will be worthy of great study!
But, this is quite a story, isn’t it?
First Friday Book Synopsis 