Remaking JC Penney's Organizational Culture

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"The business isn't just about store managers any more - it's more complicated than it used to be, and I need to motivate employees from the entry level to the officers. If I had a choice to honor the past and lose, or move forward and win, I pick winning."¹

- Myron E (Mike) Ullman III, chairman and CEO, JC Penney Corporation, Inc., in 2006.

"They're putting the cart before the horse. Culture changes are glacial. Trying to appear to have made quick culture changes by jumping forward to simulate success is a waste of time and energy, and falsely inflates expectations. It's like trying to leapfrog over the real work, the real task of genuine culture change. First come respect and inclusion, then come first names, nicknames, and March Madness brackets."²

- Michael Banks, Partner-Owner, Select Marketing LLC³, in 2006.

"Changing the mindset and culture of the employees ALWAYS has to come from the top. And the Penney's CEO lived this difficult task every day. He showed his direct reports, middle management, and store operations how important it was to everyone at J.C. Penney. He showed it by his daily activities, and reinforced it through visual tasks and direction! Bravo for J.C. Penney."⁴

- Stephan G. Kouzomis, Faculty and Staff Member, University of Louisville's College of Business, in 2007.

Fixing What Might have Broken

Shortly after joining as chairman and CEO of JC Penney Corporation, Inc. (JCP) in December 2004, Myron E. Ullman III (Ullman) unveiled a 'Long Term Plan' with the focus on taking JCP to the industry leadership level.5 One of the strategies to achieve this objective was to make JCP a great place to work in. Ullman felt that there was a "correlation between engaged associates and store profitability."6, 7 He understood that to achieve his ambitious objectives, he had to make JCP a great place to work in. Ullman explained, "The associates are the first customers we sell. If it doesn't ring true to them, it's impossible to communicate and inspire the customer."8

Ullman wanted to build a customer-focused culture at JCP. But in trying to do so, he met with significant challenges. JCP was a company with a long tradition of more than 100 years.

Remaking JC Penney's Organizational Culture - Next Page>>

1] Ellen Byron, "'Call Me Mike!'," www.wsjclassroomedition.com, April 3, 2006.

2] George Anderson, "Culture Change Part of Penney's Plan to Succeed," www.retailwire.com, March 28, 2006.

3] Select Marketing LLC is a marketing consultancy firm engaged in a wide variety of worldwide marketing efforts including Retail Consultancy, Electronic Funds Management, and Multicultural Marketing.

4] George Anderson, "Penney CEO Fixed What Might Have Broken," www.retailwire.com, February 12, 2007.

5] In 2005, Ullman unveiled the 'Long Range Plan' which JCP strove to achieve through a four-pronged strategy: make an emotional connection with the customer; make JCP an easy and exciting place to shop; make JCP a great place to work in; and, make JCP a leader in performance and execution.

6] JCP called its employees associates.

7] "J.C. Penney Q2 2006 Earnings Conference Call Transcript (JCP)," www.retail.seekingalpha.com, August 10, 2006.

8] Maria Halkias, "Penney Remakes Culture to Remake Image," www.dallasnews.com, February 13, 2007.

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