Sacked after just 18 months. The ignominy of it.
Ron Johnson had been headhunted from Apple Retail and given the keys to the kingdom by JC Penny. Tasked with turning round the fortunes of the ailing retail institution.
Everything he tried failed, and JC Penny’s sales plummeted by US $4 Billion in one year. The share price more than halved. Customers flocked to competitors.
Ron had achieved stellar success at Apple Stores.
Apple Stores revolutionised retail.
They created a complete experience of the brand. Customers had to book time slots, and many were happy to queue for hours to get in.
The Genius Bar was the perfect confluence of helpful tech geeks and non-tech people having their problems fixed.
JC Penny’s was a discount, price-led department store.
The Apple formula didn’t work in a different world.
It is a common experience for many businesses.
They try and replicate success from one geographic area / business / sector, and impose the formula.
Often it does not work.
Why?
Because success blinds you to its causes.
Organisations assume it is because of their genius, their IP, and their people.
Unconscious biases and heuristics pervade thinking and execution.
Net result: a disappointing future.
It’s why we at delivering Results always start work with first principles and a beginner’s mind.
Yes, businesses have the same functions and goals.
But each business is also unique. It has its own DNA and history.
And, in the case of small businesses, each owner is different.
The issues it faces are a direct reflection of the owner’s own challenges and foibles.
An open mind enables us to see what’s really going on, and understand where and how to apply the first principles.
Bespoke to each business.
If you want to understand your business better, we can help.
Call Alex on 02 4023 5958 or email alex@deliveringresults.com.au.