Brian Cornell, Janna Potts (Photos: Target)
January 6, 2016
Brian Cornell continues Target’s makeover
It’s expected that when a new CEO comes into a company, particularly one that is struggling, that changes will be made within the executive ranks. There are instances when the changes work and others when they don’t. In the case of Target CEO Brian Cornell, the changes he’s made since assuming the top spot at the chain in 2014 appear to be on point.
This week, Target announced that Janna Potts, a longtime executive with the chain, has been promoted to chief stores officer. She is replacing Tina Tyler, who was hired in 2011 by Mr. Cornell’s predecessor, Greg Steinhafel. Ms. Potts will report to COO John Mulligan, whom Mr. Cornell promoted in 2015.
According to the Minneapolis Star Tribune, five of the 10 executives who are part of Mr. Cornell’s leadership team were either hired or promoted since he joined Target. Some analysts, according to the report, have questioned the speed with which Mr. Cornell has gone about reshaping the c-suite.
Few, however, can argue that the chain has shown improvement following a series of mishaps that included a massive data breach and an ill-conceived entry into Canada under Mr. Steinhafel. Customer traffic has been up for five straight quarters, according to an Associated Press report, and comparable store sales have been trending positively.
- Target executive Janna Potts becomes chief stores officer, continuing CEO Brian Cornell’s makeover at the top – Minneapolis Star Tribune (tiered sub.)
- Target Fires Stores Chief in Latest C-Suite Shake-up – Fortune
- For Target, 2015 brought layoffs, empty shelves and hope – MPR
- Store changes paying off for Target with sales on upswing – The Associated Press/Omaha World-Herald
Discussion Questions
Do you think there is right or wrong way for new CEOs to go about reshaping their executive teams? What is your assessment of the approach Brian Cornell has taken at Target?
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Kai Clarke
CEO, President- American Retail Consultants
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Every business situation is different and requires a different approach and timing with the need to reshape the executive team. The metrics we should focus on are whether the business fundamentals have improved. This includes store traffic, comparable sales and share price to list a few. These are the ultimate results that matter from all the changes Brian is making including his decision on his executive team.
There is a right way to reshape the executive team and that is if the current executive can adapt to the changes and commit to any new direction or strategy being set, they get to stay. If the executive has the attitude that we are Target and this is the way we do it here, they get to go elsewhere. Sounds simple but getting to see who fits and who does not takes time and time is also needed not to disrupt the entire organization at once. Slow but progressive steps are always best. Brian is true to form in taking big steps but one at a time. Target is succeeding and will continue to do well under his leadership.
I agree with Joy that there is no set right or wrong way to go about reshaping an executive team. In each instance it is situational. One element that remains regardless of the approach taken is that the person leading the effort has to have faith in the person currently in the position’s ability to accomplish what is needed or seek their replacement.
Good c-level managers are skilled at understanding who among the incumbent team is capable of executing a new business plan and what positions and talent need to be recruited from outside the organization. Brian Cornell has a reasonably good track record of team building and it would appear it is paying dividends early in his tenure.
It has been my experience, however that is important to build a culture where the existing, incumbent cadre do not feel like they are being overrun by the new recruits. An organization the size of Target is full of capable executives that can be assigned important roles in the new regime, thus providing middle management a sense of still being promotable and viable in the new organization.
Having a corporate culture of inclusion and flexibility also will be extremely important in the months and years to come. As retailing is in such a dynamic state, the current marketing plan will surely require adjustments. Having a team with broad perspective will be an invaluable tool to continue Target’s rebound.
I think there is a systematic approach that Cornell has utilized. In my book on strategy I note four steps for emerging leaders to follow in making moves in a struggling organization:
Brian Cornell would get an A in my course.
Change management, especially on the executive level, is a personal directive and reflects more art than science. There is no right or wrong way, because of the incredible number of variables. Brian Cornell has certainly made changes, but many of these cannot be felt for several quarters. The most important thing is that he recognizes that changes need to be made … and he does them.
Each individual company situation is different unless you are 90 percent down the slide like A&P and J.C. Penney. A new CEO needs to take the time to evaluate the business and the current people running it before making wholesale changes. In the case of Target this was a company with strong underpinnings and some very good people who had helped it grow and prosper. Mr. Cornell was smart to take the time to evaluate the business and the people and then develop a strategy that would return Target to its former leadership position. The fact that he has methodically made changes that are appearing to work speaks to his approach to meld business and people to attain Target’s objectives.
I agree with Joy when she says each situation is different. That difference is the determiner in how to proceed with the changes necessary to get back on course. It is like a puzzle. The right piece has to be put in the right place. If not, then go outside the puzzle and find the piece that makes the team complete.
Ensure there is alignment to the go-forward strategy. There is great risk by adding more and more outsiders who want to jump on the bandwagon and build their personal brand. At a certain point, new team members have to be all about excellent at the execution of the vision and small ego high team members. The successful candidate profile has to evolve over time.
IMHO, Joly is the reigning rock star retail CEO.
The wrong way? Yeah, the wrong way is whatever Ron Johnson did; or to offer that in more general terms: get rid of good people — and bring in acolytes — solely for the purpose of “making a change.”
Very prudent. It wasn’t as if Target was on the verge of Chapter 11 when Mr. Cornell came in. His latest move will produce results!