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1 - I've told this story before, but when you see daily examples of complete Leadership failure, it's work repeating. Here we go.
2 - This happened seven or eight years ago. I had worked with a major retail brand for three years.
This brand was making no progress.
I kept sharing what I'd do to improve performance. My work went nowhere, which is typical for a consultant.
This brand was making no progress.
I kept sharing what I'd do to improve performance. My work went nowhere, which is typical for a consultant.
3 - At the time, I had about 3,000 followers on Twitter ... this brand had about 2,500 followers on Twitter. The only thing I'd said to that point that got anybody upset was that I was more popular on Twitter than a brand with decades of history and millions of customers.
4 - That sent the social media manager into a complete snit ... though her response to the C-Level team was "we need to educate him what social media is all about, and that we've got it under control".
With 2,500 followers.
Ok.
With 2,500 followers.
Ok.
5 - This organization did not want to do anything different, at all.
Nothing.
So we slid apart for eighteen months.
And then, as they'd done for years, they called me back in.
They wanted me to analyze them ... again.
Nothing.
So we slid apart for eighteen months.
And then, as they'd done for years, they called me back in.
They wanted me to analyze them ... again.
6 - Now, the job pays well, so you do the work.
But the results are EVEN WORSE than they had been.
They ask me for my opinion ... how would I fix things?
But the results are EVEN WORSE than they had been.
They ask me for my opinion ... how would I fix things?
7 - They asked me the same question for each of the past five years. Each of the four years prior, they ignored what I said.
I needed to come up with some way to communicate just how awful their performance was.
And that's when it hit me.
I needed to come up with some way to communicate just how awful their performance was.
And that's when it hit me.
8 - The C-Level team LOVED the local NFL team in that market.
They were obsessed with the team.
And they were frustrated that their team had a bad year.
They were obsessed with the team.
And they were frustrated that their team had a bad year.
9 - So what would happen if I converted the financials of this brand into a Won-Lost record, just like an NFL team?
I spent several days building an equation, an equation based on net sales growth and pre-tax profit rates.
I spent several days building an equation, an equation based on net sales growth and pre-tax profit rates.
10 - I backtested the equation against various brands ... AND IT WORKED!
Macy's, even at the height of their omnichannel delirium, would post an NFL Won-Lost record of 8-8. They'd miss the playoffs.
Macy's, even at the height of their omnichannel delirium, would post an NFL Won-Lost record of 8-8. They'd miss the playoffs.
11 - I plugged the financials into my equation for this brand.
I awaited my results.
4-12.
4 wins, 12 losses.
Oh. My. Goodness.
So I made 4-12 the theme of my final paper.
I awaited my results.
4-12.
4 wins, 12 losses.
Oh. My. Goodness.
So I made 4-12 the theme of my final paper.
12 - I recall sending the paper to the C-Level Executive on a Tuesday morning (or whatever morning it was).
The CEO contacted me on Wednesday morning, asking me to immediately arrange transportation for an in-person visit ... if I could get there in 3 hours, fine.
The CEO contacted me on Wednesday morning, asking me to immediately arrange transportation for an in-person visit ... if I could get there in 3 hours, fine.
13 - Well, it took a few days to arrange transportation, but I arrived.
These C-Level folks argued that they were, and I quote, "NOT A 4-12 TEAM. NOT BY A LONG SHOT".
They argued the equation.
I shared with them how Macy's was 8-8 ... how Williams Sonoma was 11-5.
These C-Level folks argued that they were, and I quote, "NOT A 4-12 TEAM. NOT BY A LONG SHOT".
They argued the equation.
I shared with them how Macy's was 8-8 ... how Williams Sonoma was 11-5.
14 - Amazon was 11-5, mostly unprofitable but growing dramatically. They were a playoff team.
Walmart was 10-6, a solid playoff team.
Bass Pro Shops? 11-5. Playoffs.
This brand?
4-12.
Walmart was 10-6, a solid playoff team.
Bass Pro Shops? 11-5. Playoffs.
This brand?
4-12.
15 - These Executives acted like somebody hit them in the belly with a cannon ball in slow motion. 4-12 just reverberated through them.
16 - I recall one Executive making the case that the brand wasn't really 4-12 but was 6-10, and you could argue that the brand was closer to 7-9.
At which point I mentioned to the C-Level folks that 7-9 meant they were still a losing team with a losing record.
At which point I mentioned to the C-Level folks that 7-9 meant they were still a losing team with a losing record.
17 - And that got them even more angry.
"We're going things well!!"
"The product is fashion focused."
"Our creative is resonating with customers."
"We're going things well!!"
"The product is fashion focused."
"Our creative is resonating with customers."
18 - With each comment, I countered with lines about their local team ... "We lost 7 games by a touchdown or less, we're right there!"
Each excuse was met by an excuse from the local NFL team for not performing ...
... and then it clicked.
They realized their team STUNK!!
Each excuse was met by an excuse from the local NFL team for not performing ...
... and then it clicked.
They realized their team STUNK!!
19 - Within 24 hours they created a War Room to address their problems.
Within one year most Executives were gone.
Within two years the merchandise assortment turned over and the creative strategy was re-imagined. Marketing was re-invented.
Within one year most Executives were gone.
Within two years the merchandise assortment turned over and the creative strategy was re-imagined. Marketing was re-invented.
20 - I was never invited back.
The 4-12 comment was too much. Way, way too much for this team to handle. Too personal.
But the communication style was effective, and it caused change to happen.
The 4-12 comment was too much. Way, way too much for this team to handle. Too personal.
But the communication style was effective, and it caused change to happen.
21 - There is always a way to break through.
You just have to figure out "how" to break through.
You just have to figure out "how" to break through.
22 - Keep that in mind when you are frustrated with Leadership.
There is always a way to "break through".
There is always a way to "break through".
