The third Case Study “Home Depot’s Blueprint for Culture Change” studied Mr. Robert Nardelli’s role as the CEO of Home Depot. He approached management in an autocratic style, which was criticized by many. This paper will take a look at how Mr. Nardelli’s style follows Kotter and Cohen’s model of change.
It seems that Mr. Nardelli and his team followed some of the steps of the Kotter and Cohen’s model, but not all. There are additional steps that his team could have taken to improve morale and develop the team further.
Mr. Nardelli views management as top-down, command and control style, appreciated by efficiency managers, but criticized by many. He especially focused on process controls and metrics (including cost and quality). He also
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He drew some criticism for this as there was a feeling that he should have promoted members from inside the team. In addition to bringing in new team members, Nardelli’s team chose to cut some people, which was frowned upon and also criticized (Nussbaum, 2007).
As mentioned, Mr. Nardelli wanted to focus on the military style as the management model (Grow 2006). Out of 1,142 trainees in the leadership program, almost half (528) are junior military officers. More than 100 of these became store managers (Grow 2006). 13% of Home Depot's 345,000 employees have military experience (Grow 2006).
The key members of the guiding coalition included (but were not limited to):
• Nardelli - Four-star general; criticized; detail-focused, demanding, determined (Grow 2006).
• Carl C. Liebert III - His chief of staff; Graduate of the U.S. Naval Academy at Annapolis, Md.; 6 ft., 7 in.; very intense (Grow 2006).
• Dennis M. Donovan - Home Depot's Executive Vice-President For Human Resources; GE alumnus (Grow 2006).
• Frank Blake - named chairman and CEO when Robert Nardelli resigned (Jacobs 2007); hired by Nardelli as Home Depot’s Executive Vice President Of Business Development And Corporate Operations (Saporta 2011).
New Human Resources Managers
As an addition to guiding coalition, the executive management decided to bring in new human
Since Home Depot opened their doors in 1979, they set out to lead the market in excellent customer service. Their motto of “ whatever it takes” shows their commitment to differentiate themselves in that field (website, 2011). And it certainly seems to have helped them lead the market and continue to grow their business beyond U.S. borders and be competitive on a global scale. It is a part of what founders Bernie Marcus and Arthur Blank deem the “Three Legged Stool” of their overall business strategy (Darrow, 1994, para. 8). The first leg is to provide the best selection and quantity of home building supplies to satisfy as many do-it-yourself customers as possible. The second leg of the
Bob Nardelli, a longtime GE executive who nearly nabbed the CEO spot at the company, was brought in to run Home Depot in 2000. He was by all accounts an overpaid disaster in the role. Skills that were well-suited to GE’s culture — a place, under CEO Jack Welch, with an intense focus on performance, where people were routinely fired — didn’t fit at Home Depot, which had a more laid-back culture, as Michael Useem, a management professor at the Wharton School at the University of Pennsylvania, noted in a 2007 podcast.
He was overly criticized for the style of leadership he portrayed while working for Home Depot. After he resigned, many employee’s were filled will overjoy and excitement, which proved that his employee’s weren’t too fond of him as a leader. "It's amazing the reaction of people on my floor. People are openly ecstatic. High-fiving," said an Atlanta store operations manager only hours after the Jan. 3 announcement. "There's a group talking about going to happy hour at noon" (Grow, B., Foust, D., Thornton, E., Farzad, R., McGregor, J., & Zegal, S.,
When a new CEO, Ron Johnson, took over the management of JCPenney, “he saw a culture of complacency and tried to change it, using ideas from his previous jobs at Target and Apple” (Bhasin, 2013), but what ensued was a complete failure. The employees completely discarded the idea of the new corporate culture because “[i]nsufficient time had been spent defining what the new culture would be” (Bhasin, 2013), not to mention “flashy presentations… [and] hyper-secretiveness doesn’t translate well when you have over one hundred thousand employees who are concerned about their jobs amid layoffs” (Bhasin, 2013). Many things could have been handled better by the new CEO, but in this case it is important to identify that “Rather than just indict the old culture, the company needs to invest in defining an energizing vision of what it will be that employees can buy into at a local level” (Bhasin, 2013), leadership must allow the employees to take ownership of the culture change and willfully embrace the bright future in their company. In the end the success of a company depends on its employees, “how employees feel when they show up for work directly impacts the customer experience” (Bhasin,
c. Redefining high potential was also a critical element. They aren’t just basing it on the performance but on capability, ambition and commitment. Just because they perform their jobs well doesn’t mean they could take on the new roles.
The company’s strategy for marketing has afforded astounding accomplishments for Home Depot’s over the past 40 years. The company screen their consumers through demographics. Using this strategy creates a more accessible segmentation for consumers. Home Depot’s DIY consumers may access tools, products, and resources regarding “how-to” assistance.
Home Depot is an American based retailer of home improvement and construction products. Home Depot also offers services to its consumers. With its headquarters in Cobb County, Georgia, the company employs more than three-hundred fifty five-thousand people and operates two-thousand one-hundred sixty-four big-box stores across the world including, all fifty states, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, Canada, Mexico and China (wikipedia.org). The Home Depot is the largest home improvement retailer in the United States and is the second largest retailer in the United States, behind Wal-Mart (wikipedia.org). The company employs more than three hundred thousand people in
At the time of this study, Home Depot, Inc. had delivered positive financial results in what was “one of the most challenging retail environments in 20 years” (Annual Report). Ranking among the best in retailing, Home Depot opened 203 new stores, created 40,000 new jobs, and made significant investments in technology, operations, and merchandising in 2002. With a steadily increasing market share of over 25%, Home Depot has maintained its title as #1 in home improvement retail industry (Home Depot and Annual Report).
George had a choice between two different management consultancies; he chose ABC Consulting because he believed there was higher level of value congruence between them. Once in the organization, George was not accustomed to the fast pace his team (Janet and Daniel) worked at. George sensed that the team was disappointed in his inability to keep up and his lack of participation. He decided to prove his ability and determination by working extra hours at the office and paying more effort. He worked hard to write report that he believed was “excellent” and submitted it to his team early. George expected a positive response from his group, but was instead met with criticisms. He was dejected and discouraged by the feedback; he felt his hard work was undervalued. His job dissatisfaction increased and performance suffered, however he persisted to stay with ABC Consulting because he was promised a 10% salary bonus after the third month. At his performance review, upon learning that he would not be given the bonus due to poor job performance, George decided to resign.
The Home Depot is a Fortune 100 company with close to $80 billion dollars of revenue for the past few years. They are a company with a lot of manpower and brainpower at their disposal and have the physical
At this point, Home Depot could have ignored all the interior and exterior events ignoring customers, employees, and even investors’ opinions and needs. Instead, Home Depot desired to take a proactive approach to all that was happening and dedicated itself to fix the problems and improve its reputation by build a good relationship with its stakeholders. First, it cut back on special offers in order to remain competitive in the industry. Then, it decided to fire Nardelli, and replace him with Flank Blake. Blake, the new Chief Executive Officer, helped Home Depot’s situation to improve dramatically. For example, when the company received negative comments of unsatisfied and angry customers in its social media, Blake dealt with its most important stakeholders directly in order to resolve the issues by admitting its fault, apologizing, and encouraging their feedback. The negative comments and unhappy customers beneficiated the company in order to improve itself and gain strategic advantage on how to deal with customers’ feedback, and building close and strong relations with customers, and to know what steps where needed to be taken in order to continue being the number one company. As result, Home depot started to make innovations to its stores including installing self-checkout lanes, scanning customers’ purchases in their baskets at the busy business hours to speed the process at the
We can clearly see from this case study that Alex has some deficiencies in performance levels that Glass has to address and determine specific training and development needs to help both Alex and the organization. The trickle effect of the negative impact Sander has on is team as much as there is a personal interest to retain Sander, is the possibility of seeing other employee turnover.
Before Blake and Crow took over Home Depot, it was led by former CEO Robert Nardelli and his regime. Nardelli and his choice of Executives turned the Home Depot culture upside down. That is, company officers were at the top, employees in the middle, and customers on the bottom of the pyramid. It took Crow’s strategic mindset to turn the pyramid back to its
A strong foundation for success and growth was already in place in Home Depot under Marcus leadership. The company demonstrated a very strong culture, built on entrepreneurialism and customer service. Abundant promotion opportunities were created due to rapid growth attracting carpenters, plumbers and other building professionals as salespeople. Most of the non-entry-level jobs were filled internally, and from the 400 department heads, just a dozen came from outside the company. Additionally, employee stock
Corporate culture is considered a relatively new field of study in business. Management scholars started paying attention to the concept in the 1980s. Moreover, one of the first papers about the subject was published by Andrew M. Pettigrew in 1979 under the title “On studying organizational cultures” (Pettigrew, 1979). Further investigation of the subject followed by Ouchi (1981), Pascale and Athos (1981), Deal and Kennedy (1985), Sathe (1985), or Denison (1990). However, the accomplishments of an MIT professor under the name of Edgar Schein introduced more complexity and sophistication to the study field. He established the conceptual framework of how culture operates with in the organization by introducing the three levels of culture and the three stages model of learning (Montaña, 2011). E. Schein defines corporate culture as “a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in