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This content was previously published on USA Today.
It's back to the future for troubled retailer J.C. Penney, which announced late Monday that CEO Ron Johnson would be replaced on an interim basis by Mike Ullman, the retailer's former chief executive.
Retail guru Kathy Gersch of Kotter International says "the patience ran out and the money ran out" for Johnson's strategies.
"He pulled some bold moves pretty quickly. Most were taking them in the wrong direction without a clear sign of when they might get traction," Gersch said.
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This content was previously published on ProPrint Magazine.
Whether using a firm hand or a carrot and stick, overhauling company culture is far from easy.
Change is hard. Changing any organisation, making them more productive, dynamic or merging them with another companies – these are some of the toughest jobs for managers.
Most change management programs fail. Former Harvard Business School professor John Kotter found that 70% of change management programs don’t work. A subsequent study by the consultants at McKinsey found that his numbers were right. McKinsey identified several reasons for the high failure rate. First, what motivates management does not necessarily motivate employees. Also, employees will resist if they feel the changes violate notions of fairness and justice. Money is the most expensive way to motivate employees. Indeed, small, unexpected rewards have disproportionate effects on employees’ motivation during change programs.
This content was previously published on The Huffington Post.
If you have been kind enough to follow my blog, you will then know that I have talked about this phenomenon in the past. However, an article by John Kotter in the November 2012 issue of Harvard Business Review got me thinking deeply about the duality of organizations.
In every organization, there is the formal and the informal network. And within each of those, there are nexuses of power dynamics that arise. In the traditional and more formal organizational structure, you have command and control. People gain power based on title and place. In the informal organizational structure, the network, people gain power through information and connections.
Daily deals may have ballooned to stardom, but the craze is just as quickly starting to deflate. After Groupon, a pioneer in the space, fired its founder and CEO Andrew Mason last week, several experts say daily deals companies need to seriously rethink the way they do business.
Groupon and Living Social have both started offering deals on an assortment of goods from iPhone cases to blankets to curling irons, where profit margins are a lot smaller, says Kathy Gersch, executive vice president for Kotter International, which helps companies implement new strategies.
"They make less money on those deals," she says, and it means they're competing in an already-crowded space dominated by the likes of Amazon and eBay.
This content was previously published on Technorati.
A recent post from Forbes on March 2 highlighted Andrew Mason’s unique letter to employees about being fired. The 32-year-old former CEO of Groupon is part of a growing trend of more casual leadership styles that have become popular among young CEOs. Although John Kotter lists Andrew Mason’s tone as “informal, irreverent, and brutally honest,” this is not an uncommon characteristic among the younger generation of current CEOs.
In Forbes’ list of America's Most Promising CEOs Under 35, it is possible to find several examples of leadership styles that waver from the accepted range as younger CEOs create their own rules. Andrew Mason’s “brutally honest” letter fits this trend. Ryan Smith, who is part of the America's Most Promising CEOs Under 35, is the CEO of Qualtrics and has admitted that transparency is one of the keys to his company’s success. Qualtrics offers online survey software and has reached $48 million in revenue with 270 employees. Smith stated in a recent interview, “We’ve been extremely transparent, but not so that we can be cool. And it’s not about an open environment, because that’s not what makes a company transparent. It’s more around the fact that everyone needs to know where we are going and how we are going to get there.”
This content was previously published on The Wall Street Journal.
If there was anything surprising about Groupon CEO Andrew Mason’s ouster late Thursday, it’s the cheeky way he announced the news to his staff.
Lots of fired executives would probably love to air their feelings as they head out the door, but nearly all keep quiet so as not to hurt their chances of landing a high-ranking post elsewhere.
Mason, however, may actually get away with it, in part because he has never quite fit the corporate mold, says Kathy Gersch, executive vice president at leadership and strategy firm Kotter International.
This content was previously published on Wall Street Cheat Sheet
Status quo would not help Apple (NASDAQ:AAPL) continue winning big, and the company was in need of disrupting itself to fix its current problems. That assertion was made for Forbes by John Kotter, the chief innovation officer of corporate strategy firm Kotter International.
According to Kotter, it was time for Apple to ask the fundamental question of whether it could continue maintaining its success by focusing on its core market.
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