All I can say is that it was a long time coming.
Globe and Mail: More alterations in the cards at HBC
Globe and Mail: More alterations in the cards at HBC
A shakeup in the senior ranks of Hudson's Bay Co. is
expected in the coming weeks as Jerry Zucker, its new U.S. owner, tries to speed
up the turnaround of the department store retailer.
On Wednesday, Mr. Zucker
brought in Robert Johnston, a close business ally who orchestrated the takeover
of the company in early 2006, as his top HBC executive. Observers interpreted
the replacement of president Michael Rousseau as a signal that the U.S.
billionaire wants to exert more influence over the operations.
Industry analysts had been suggesting for some time that HBC required a full overhaul of the C-suite. After all, if the incumbent management knew what they were doing, they wouldn't be in a pickle in the first place.
I have to say, HBC finds itself dug deeper into its hole than it was when Mr. Zucker took ownership last year. The question remains, are they making meaningful changes, or just rearranging deck chairs on the Titanic?
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6 comments:
Hi Lee,
As a former employee at Hbc's head office. I believe that part of the problem is Hbc's culture. There has been many attempts at changing this bureaucratic (almost government like) attitude that many people have. I truly believe Mr. Zucker has had some great ideas of how to fix the company. The problem is these ideas seem to go nowhere in the execution process, where they get lost in the paperwork.
Hi Konigs,
You are absolutely on point here. In fact, the corporate culture may well be the MAIN problem with reversing HBC's course.
I'd like to direct your attention to one of my blogs' innaugural posts from last year, where I addressed this issue quite bluntly:
http://businessopinions.blogspot.com/2006/04/open-letter-to-jerry-zucker-from.html
In other words, change (and more liberal use of the axe) needs to start at the bottom and work upwards.
Hi Lee,
Thanks for the reference. I lived in that environment for a year. Hbc was the first company I worked for after graduating from university so it will always have a special place in my business heart.
Have a great day
Massive headchopping tends to work. Best teams I've been on have been very small and overworked but only tolerated superbly competent people. It's not just in software where adding more people is anti-productive.
Given the failures at all levels of HBC, a full neutron bomb approach would probably be more productive. Fire everyone, close the locations for six months, and figure out how to segment the business. 2 or 3 different chains could be made from the Bay stores alone (barneys canada, holts / macys alternative, and maybe a slightly lower end bay for some of the remote locations if not closing most locations and converting a few to zellers), while zellers should go for the target niche and rationalise their property portfolio. Home Outfitters works pretty well now, but could benefit from eliminating housewares at Bay stores within 50km of a home outfitters store.
Mr. Hey,
That is EXACTLY the kind of Evil Genius thinking that we like to see here at Lee Distad's Professional Opinion!
I will watch your career with great interest.
A couple of weeks ago, I've been to a Bay store. Let me just say, it's the same old, same old. Not even any major changes. The merchandise just says, "Blah'. It's not even interesting. I have a feeling that this store only has an X number of years before it goes kaput. Time is running against them.
But that's just me.
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