Look Out For These 3 Telltale Signs Of Transformation Theater
When Bob Nardelli took over as CEO at The Home Depot, he was geared up for the challenge. Passed over for the CEO job at GE in a high-profile succession process, he was determined to show that he could, in fact, be a transformational leader. As Uber-consultant Ram Charan put it, ”What got Home Depot from zero to $50 billion in sales wasn’t going to get it to the next $50 billion.”
He sought to replace the retail firm’s famously decentralized, entrepreneurial culture with the six-sigma driven performance culture he brought from GE. He intended to ruthlessly seek out ways to cut costs, and streamline operations. Under Nardelli, everything would be measured to his exacting standards.
It didn’t turn out well. The truth is that what Nardelli did was not genuine transformation, but transformation theater. Despite the hype, he took the company backward and it lost ground. In the end, he was fired, but walked away with $210 million. Today, Nardelli has spawned an army of imitators. We need to learn to recognize these 3 telltale signs.
1. A False Sense Of Urgency
Founded in 1978 by Bernie Marcus and Arthur Blank, The Home Depot had always had an idiosyncratic culture. It invested in its staff, many of which were former or part-time contractors, and had an…
