Mike Ullman was appointed CEO of JCPenney in 2004 to lead a transformation of the company's culture. He focused on attracting and retaining top talent, creating an inclusive work environment where employees were empowered and addressed each other by first name. Ullman also established a retail academy to provide training to employees and promote internal career development. These efforts helped shift JCPenney's culture from a rigid, top-down structure to a more collaborative, team-oriented approach.
Mike Ullman was appointed CEO of JCPenney in 2004 to lead a transformation of the company's culture. He focused on attracting and retaining top talent, creating an inclusive work environment where employees were empowered and addressed each other by first name. Ullman also established a retail academy to provide training to employees and promote internal career development. These efforts helped shift JCPenney's culture from a rigid, top-down structure to a more collaborative, team-oriented approach.
Mike Ullman was appointed CEO of JCPenney in 2004 to lead a transformation of the company's culture. He focused on attracting and retaining top talent, creating an inclusive work environment where employees were empowered and addressed each other by first name. Ullman also established a retail academy to provide training to employees and promote internal career development. These efforts helped shift JCPenney's culture from a rigid, top-down structure to a more collaborative, team-oriented approach.
Mike Ullman was appointed CEO of JCPenney in 2004 to lead a transformation of the company's culture. He focused on attracting and retaining top talent, creating an inclusive work environment where employees were empowered and addressed each other by first name. Ullman also established a retail academy to provide training to employees and promote internal career development. These efforts helped shift JCPenney's culture from a rigid, top-down structure to a more collaborative, team-oriented approach.
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In 2005, Theilmann joined JCP as the executive VP, chief HR He focused on involving the employee in making an emotional connection with the clients. He focused on attracting and retaining the best talent in the retail industry. Group 2 Team Diverse Leadership Case Study-JC Penney 5.Ullman has rich domestic and international experience in the retail industry. (Macys, LVMH, DFS group) The board wanted the depth and breadth of Mike Ullmans experience. ENTER ULLMAN, EXIT CASTAGNA 8.Just Call me Mike campaign Supervisors and others can address each other by first name. Disband of Office Police. Helped to create friendly work place
9. Winning together principal- Code of conduct
More inclusive and included all the employees 7.Fired New COO: Catherine West Because she failed to meet performance objectives. Paid US$10 million to her. She formally worked in banking industry, no experience in retailing, thus not fit for JCP. The areas previously reporting to West would report directly to Ullman. 6. Set up Retail Academy Employees were trained in retailing and leadership by top level managers including Ullman. This made JCP a great place to develop their career. Create stronger bond between employees They visited successful companies such as The Container store Southwest Airline Wegmans Food Markets Inc. to learnt and followed their best practices. This means JCP is becoming more open. 12.JCP started looking outside for ideas In fall 2005, JCP used AES" to measure the views of association about the company. JCP respected the feedback of employees would help the company in determining how to approach the Long Range Plan. 13.Association Engagement Survey (AES) 10.New brand positioning, Every Day Matters All the 151,000 Associates were trained to execute the new initiatives. They were briefed by the managers on the new branding. The first such repositioning in JCPs 105-year history.
It formed Deeper, Emotionally-Driven Relationships with customers. Q2. Handys
framework of organisational culture Before: Power Culture centralized power around a small group. Power radiates out from the centre, usually a key personality, to other.(Handy 1996) JCPs initial structure was rigid in nature. eg. Earl C. Sams, the president of JCP believed the formal way of addressing another in workplace In power culture The ability to adapt to changes is centralized in the top management.
This can be positive with rapid change brought from above or can result in they failing to see the need for change.(Gray 1998) Negative: With Sams formal environment, Curbing innovation and creativity Result: high employee turnover, Positive: Ullmans understood the need for change To form informal organisational culture. He initiated top-driven changes Role Culture System effectiveness depends upon adherence to principles rather than personalities. (Handy 1996) The managers were expected to follow what was prescribed to them. They were not given an opportunity to voice out but were expected to adhere to the rules and regulations. Team Culture Appropriate when flexibility and sensitivity are important, product life is short and reaction speed is critical. (Sheldrake 2003) JCP's culture shifted to team culture with high flexibility and contribution from the employees at all levels. eg."Business casuals" as the dress code Winning together principle. Inclusive environment with the lower level also embodying the principles Person Culture The individual is the focal point; organisation exists only to serve and assist the individuals within it
The employees take part in the decision making process. training programmes devoted to employees. Groom them to be future leaders. Satisfies selactualizationon needs, which in turn retain employees.
Not fully a person culture as it was done for improving employee efficiency towards the organizational goals Levels of Organizational Development by Cacioppe and Edwards Before Change: JCP was at Organizing level A place for everything and every thing in its place. (Cacioppe, R and Edwards, M 2005) Very bureaucratic Dress code formal Not forward looking because of recent turnaround After Change: Co-operating Internal cooperation and commitment at all levels. Integration fo systems towards goals. (Cacioppe, R and Edwards, M 2005)
AES survey in 2006 at 73% compared to 2005 at 67%
Operating profit in 2005 US$1.6 billion, a 22.5 percent increase over fiscal year 2004. Q3 Define Leadership in JCP Before Change: Bureaucratic and Transactional Leadership Relationship between managers and the employees was created through behavioral substitution Visions that are sensible, clear and uplifting Empowered action by removing some of the obstacles that were deterring the company from moving forward. Made change stick by nurturing a new culture Effective culture by recognition for job done. References Cacioppe, R. and Edwards, M. (2005) 'Seeking the holy Grail of organizational development', Leadership and Organization Development Journal, Vol. 25 No. 2, pp86-105 Gray,R 1998 Organisational Culture and the psychological contrast
[online]<http://www.rodericgray.com/orgculturepsycon.pdf> Available from 15th March
2013. Handy 2006 Gods of management[online] http://books.google.co.uk/books?id=cG6fmxkJo0C&source=gbs_navlinks_s> Available from 15th March 2013. Sheldrake 2003 Management theory, Cengage Learning EMEA,[online] http://books.google.co.uk/books?id=59QiX9PEgoC&dq=handy+management+theory&source=gbs_navlinks_s> Available from 15th March 2013. Muratbekova-Touron, M. (2005) 'Permanence and Change: Case Study of Changes in Organizational Culture at a Multinational Company'. Journal of Change Management 5 (2), 207-219 Pihlak, and Alas, R. (2012) 'Leadership Style and Employee Involvement during Organizational Change'. EBS Review (29), 46-66 Thank you ! Q&A J. C. Penney Company, Inc., (JCP) is a chain of American mid-range department stores based in Plano, Texas.
Founded in 1913, the company operates 1,107 department stores in all 50 U.S. states. Most JCPenney stores are located in suburban shopping malls. Background Information Q1.Key change management events 1.Castagna joined in 1999 as the COO (Target, TJX Cos. and Wal- Mart) Questrom joined as CEO in 2000. (Famous for turnaround at Barneys10, Federated11) First outsiders to join JCP in top level. They centralized the buying system Slashed the number of items in stores by half. Working-capital improved, US$1.6 billion 2.Sale of the Eckerd drugstore chain13 for US$4.52 billion Increase its financial flexibility and the focus on department store business. Compensation : salary linked to performance. 4.Started to consider outsiders for higher positions instead of promoting from within,
3.HR team started newsletter for the management to communicate the changes in compensation plans Top executives encourage creativity, and team members are often highly engaged in projects and decisions. (Muratbekova-Touron 2005)
Fewer layers of management
Culture more attractive to newly graduates. After Change: Work "by the book." They follow rules rigorously, and ensure that their people follow procedures precisely. (Pihlak and Alas 2012) 100 years Motto: Honor, Confidence, Service, Cooperation HCSC Suppress creativity and flexibility Democratic/Transformational Leadership
