March 2, 2009
Sears’ Lengthy CEO Hunt
By Tom Ryan
Since late 2007, Sears
has been searching for a CEO. In his annual note to shareholders, chairman
Edward Lampert said the company had worked with
Russell Reynolds over that period and its board had met
“a number of very talented individuals” in the last year but stressed
that no one had been offered the job.
“We have been impressed
with a number of those individuals and are confident that they have had
and will have very distinguished careers. That said, public commentary regarding the search has been incorrect.
To be clear: as of the end of the fiscal year, we have not made a single
employment offer to anyone to serve as our CEO,” wrote Mr. Lampert, the legendary hedge-fund manager who orchestrated
Sears’ merger with Kmart in 2005. “That doesn’t mean that we have
not reached out to a number of people to explore opportunities or that
we haven’t had a number of meetings and interviews; we have.”
Mr. Lampert also praised of Bruce Johnson, interim CEO, noting
that his “steadiness through these difficult economic times” has
allowed Sears’ board to be “highly selective” in its search.
Mr. Johnson, a supply-chain executive who came from Kmart, replaced the
last CEO, Aylwin Lewis, in January 2008.
“The search for
a new CEO has not detracted from our ability to attract extraordinary new
senior executives,” wrote Mr. Lampert.
Before touching on the
CEO search in the lengthy 8,500-word shareholder letter, Mr. Lampert had noted that Sears hired a number of elite execs
last year and underscored that any new hire had to be up for the challenge.
“To participate
in a turnaround of this magnitude requires a level of drive and energy that
is very different than in a company with performance at or above industry
averages,” wrote Mr. Lampert. “We
encourage those who think they are up to the challenge to reach out to
us to discuss opportunities at Sears Holdings.”
The Chicago Tribune said
Mr. Lampert’s reputation as a hands-on chairman “has raised
doubts as to how much freedom” a new CEO would have in running the
chain.
Discussion Question:
Why do you think Sears has yet to find a new CEO? What qualifications/qualities
are needed to successfully lead a Sears’ turnaround? Do you have any
candidates in mind?
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Here’s the reality people forget to consider:
1. Sears is profitable and still generates cash flow;
2. Sears has a limited amount of debt, having used cash flow during the boom years to pay it down;
3. Sears has better comp metrics than competitors–better store comps on the apparel side than Kohl’s and JCP, comparable store comps on the hard lines side to HD and LOW;
4. Sears has tremendous “hedge” against its retail operations in the form of brands, real estate holdings, and “ancillary” businesses like Lands’ End and Sears Canada. Worse comes to worse, you could liquidate all 3 for significantly greater value than their current market cap.
Make no mistake–Sears Holdings isn’t a retailer. And what it needs isn’t a retail CEO. It’s not about buying the right merchandise at this point. It’s about achieving a better return from the assets it currently has.
Now, if you’re a CEO-candidate, all these factors are pretty compelling. I mean, on paper, would you rather be CEO of Sears or Macy’s and their staggering $9B debt load?
But subjectively, you know the situation is quite different.
1. Eddie is chairman and his fund owns 51% of the company.
2. Eddie is an off the chart analytic and deals with data. He also fancies himself a strategist who uses the data to make decisions (think Bezos, another ex-banker).
3. Eddie will always have better data, better detail, and better insight than insiders within the company. Consider it a fringe benefit of being a hedge fund manager.
4. Eddie crafted and executed the current operating model, including the creation of a vertical structure with Presidents in charge of every category–there’s a President of Toys, Electronics, Apparel, Jewelry, Shoes, even Online.
The reality is that Eddie might want a CEO, but what he needs is an Operator. He doesn’t want a strategist who can think for himself/herself, someone who will make independent (and contradictory) decisions. Eddie can’t help himself intrude in the daily operations or dabble in emerging technology so he doesn’t feel like his company is riding the short bus. But make no mistake–he’s an activist owner, like many other “entrepreneurs” such as Jobs, Gates, and Bezos. The problem is that those others built their own businesses from the ground up; Eddie built a hedge fund that doesn’t buy or sell any physical asset.
Eddie states willingly that if data supports a recommendation, he will support the outcome. For instance, if an investment provides a greater ROIC, then he will fund it. And right now, ecom provides a better ROIC than the stores. But if a CEO wanted to, say, undo his spaghetti-like org structure–which, by the way, is de-levering the business through needless overhead–and eliminate many of the wonky data-types, would he have carte blanche ability to do so? If a CEO wanted to exit non-productive categories, would he/she be allowed?
So if you were a candidate, you have to ask specific questions:
1. Do you think Eddie will allow an outsider to “run” the holding company he cobbled together?
2. Do you think Eddie will allow an outsider to make tough decisions, undoing many that Eddie made himself?
3. Do you think Eddie will allow an outsider to drive the transformation, even if it flies in the face of Eddie’s previous direction?
Eddie tried to go the cheerleader, HR type with Alwyn Lewis and that failed. He’s trying the Operator route with Bruce Johnson, but he’s a wall flower as a leader. He’s tried hiring other analytic types, including execs from other data-driven industries like financial services (Lehman, Capital One) and software (Microsoft, IBM), all with poor results.
The definition of insanity is doing the same thing over and over…perhaps Eddie should realize this and step away from the red button and bring in someone–anyone–who can truly drive transformational change. The result, however, is one that Eddie the ego may not like.
We’ve heard about zombie banks these past two weeks – it seems Kmart and Sears are zombie retailers. What exactly do they stand for? Once the most venerable name in retailing with strong recognition, sales of appliances and everyday value, this retailer has no meaningful message to anyone.
Kmart’s ploy of taking over Sears for real estate seems as poor as their day-to-day management. They’ve cut past the meat and bone all the way to the heart. There’s turnaround and then there’s burial–who wants to lead that charge as CEO? To read more about destroying your own brand like Hertz is doing, visit my blog.
Sears has yet to find a new CEO because Mr. Lampert likes running the company.
Now that General Patton has passed on, there aren’t many top CEO-types, if any, that want to walk into a blazing fire with someone else controlling the water hose.
To hedge his bet on Sears, perhaps Mr. L should close more than 25 stores, sell the real estate and return to what he knows much better than retailing.
This job could be as popular as becoming captain of the Titanic just outside of Newfoundland. Mr. Lampert needs to give more of a free hand to whoever takes the job. A fresh concept is what Sears needs. They need to fix the internal culture first before they can take care of business on the sales floor.
There are two issues. First, they really want a COO as they have a CEO in their chairman. People with the skill set to turn this one around are not interested in being second-guessed with every decision.
Second, most candidates would not be interested in overseeing the demise of the company. This can only be a real estate plan and with the current retail decline, the real estate is now worth a lot less than before.
As the comments note, what incentive is there to take the job? Those that are capable will not want to be second in command to Mr. Lampert. Those that are willing to be second in command may not have the right skill set to do the things that it will take to save the company. Then, you have to decide on your objective–long term survival or staying the course until you can liquidate the real estate. This situation is very challenging at best and with the demand for quality CEOs high, it will be a very difficult search to complete.
It will take a certain type of laid-back personality with a very small ego to fill the role of CEO at Sears.
Any retail veteran seasoned and experienced enough to be considered or qualified for this job would be aware of the following;
1) The Sears/Kmart Brand is seriously diminished;
2) This operation was in peril during the retail boom years;
3) Retail contraction is intensifying;
4) Only the biggest and best retailers will survive;
5) Lampert won’t allow the CEO a free hand;
6) Compensation will be tied to performance;
7) Performance will be inhibited by numbers 1 through 6.
Given the above, it isn’t any wonder to me that they are taking so much time to announce a candidate.
It’s just too tough a job. It would be like applying to be the manager of the Yankees if the current management continued to run the club and the team was in last place.
Sears already has a CEO, and his name is Eddie Lampert. Let’s not kid ourselves: Any viable candidate paying attention over the past four years must realize that Lampert is calling the shots. It would be hard to convince any outsider to take this job without a massive paycheck, since the likelihood of getting rich from SHLD shares or option grants looks pretty slim right now. It’s also clear that the key strategic moves that Sears should have already made (starting by killing the Kmart brand) are not going to happen on Lampert’s watch.
Where is “Chainsaw Al” Dunlap when you need him?
To add to the Greek chorus, the pressures to keep C-level compensation to reasonable levels also act as a disincentive.
So we’ve got:
– not enough authority;
– a sinking ship;
– not enough money to go down with it;
– an intense overseer.
No win.
Wow. Tough crowd here. There is still a viable business for SHC, to be sure. Can it be business as usual, absolutely not. However, no company can do what they did in the past and still hope to succeed. If the board can effectively choose a leader with great turnaround expertise, and ALLOW that person to lead, by taking smart risks, this world will not have to come to an end.
Its rare that all comments are ever in agreement, but there’s no doubt here. Admittedly, having to Google Al Dunlap, at least I learned something that I didn’t know. I think that we all know the answer here. Further, if the board wasn’t likely stacked with the same type that is being searched for, it wouldn’t take so long.
I’m thinking Willie Nelson might be available. After learning about Mr. Dunlap, how could Wilie do any worse? Along with Mr. Dunlap, he’s used to paying back large sums of money. Heck, he just may be the right spokesperson to give them a shot in the arm.
Working for Sears would be a reputation killer. It’s the laughing stock of retail for having one extreme failure after another. Past CEOs could not implement any good ideas because Eddie would not let them. No one seriously thinks Sears/Kmart will be around much longer, so why would a high-level exec take on a career-killing job?
Sears has said it is not spending money to refurbish stores; most of its locations are in malls, which are losing traffic and other tenants; many of Kmart’s stores are in older, dying locations, plus Lampert, as others have already noted, is the true CEO. What are the chances of success for any incoming new CEO?
Many strong executives have come into SHC thinking that they could make a difference. They didn’t last and fled when they realized the extent of Lampert’s micro-management.
Everything that happens in a company is driven by, condoned by or tolerated from the top. As long as Edward Lampert is at the top in an active role, nothing will change. Everyone on the outside knows this and that is why they can’t find a CEO. Having said that, they may find someone from another retailer who is out of work due to the economy and will take the job until they find something else.
I agree with some of the others that Sears will only have one leader who will determine the strategy and set the tone for the organization and that will be Mr. Lampert.
It seems to me that Sears and Kmart will need to have some form of an integrated strategy to survive and that anyone who serves at the top of either organization will be there to ensure the full execution of Mr. Lampert’s vision.
There are many talented individuals who have probably been interviewed but I expect they wanted more control of the business and its direction than Mr. Lampert might be willing to delegate.
Sounds to me like Eddie Lampert is looking for a figurehead more than a leader. I guess everyone he’s interviewed thus far has come to the table with their own sets of ideas. Too bad for them.
I have to wonder how all this searching has impacted on the morale of those execs who are currently busting their butts to make things happen, only to be added to the B list.
Being the CEO of a retailer at this juncture (no one knows where the bottom is) would be tough for anyone, let alone for someone at Sears. “Very talented individuals” will most likely seek employment with anyone but a retailer, at least for the next six months. The “Titanic” metaphor above applies in the sense that every retailer is now sailing in a sea of huge ice bergs and until we’re clear of that, the opportunity (or catastrophe) is not readily apparent.
Sears Holdings is a dinosaur waiting for extinction. Lambert is a venture capitalist and not a retailer and his hands-on approach will result in the demise of the formerly lucrative Sears brand. Kmart likewise has been eclipsed by Wal-Mart and to a lesser degree Target and will no longer be a factor in the discount market.
Lambert’s stewardship has been based on opportunistic greed and will have the unfortunate impact of disrupting many employees’ well-being.
SHC has enough money that Eddie Lampert could hire almost anyone he wants as CEO. And there are plenty of folks who’d be up for the challenge of improving Sears and Kmart, while working constructively with Eddie Lampert. Almost none of the comments on RetailWire acknowledge the enormous feat Eddie Lampert has accomplished: keeping Kmart and Sears profitable, while paying down debt and adding to the pension fund. How many other folks could’ve done that?
Eddie Lampert is right about so many things: there’s too much retail space in America, there’s no reason to spend money (capital or expense) if the return is lousy, it isn’t smart to have one and only one plan when all sort of unanticipated macro events occur, etc.
Many writers have argued that Eddie Lampert should give up some or all of his authority. What retail company has ever turned around with a hands-off chairman?
I think it’s reasonable to take Eddie Lampert at his word: he hasn’t offered the CEO job to anyone and he’s happy with Bruce Johnson as interim CEO.
Many contributors to RW don’t like Eddie Lampert, but millions of folks shop at Kmart and Sears. They’re voting at the cash register for Eddie Lampert. And they’ve been doing it for years.
It’s not over until Warren Buffet says the economy’s in shambles. Oh wait, he just said that today. This has to be the most extreme case of denial I’ve ever seen by a company. It was really over before it started for Eddie and everybody is always in agreement with their comments on Sears Holdings. Any businessman worth his salt just needs to step into any Kmart and he will see that there is no future for this company.
The mistake Mr. Lampert made was saying that he was going to continue this company as a retail operation. Please admit defeat before you cause yourself more public embarrassment and help our communities by boarding up your remaining blighted stores immediately.
Why do you think Sears has yet to find a new CEO?
My observations; Edward Lampert is a high A++ personality if he can let someone lead and truly empower them is one component. Based on past senior hires the sense is they did not get the time needed to get results. Sears didn’t get broke over night it won’t get fixed overnight. A slow selection process is not a bad thing, if the selection committee, search firm and Edward Lampert are all on the same blue print. Selecting great people is one of the top five leadership actions an organization must take to produce great results. Lastly with regards to qualities/competencies; identifying critical competencies of a CEO. I have five for review.
The ability to build teamwork: Getting a management team and different functional areas in concert and working together is an important skill. The CEO’s responsibility is to manage the business in such a way that departments and individuals work together to fulfill a vision.
The ability to think strategically: Does the person have an understanding of the position in the organization, a vision of where to take the organization, and the ability to put together a workable plan to get from here to there? The candidate needs to either be a visionary or be able to work with someone in the company who has that competency.
The ability to communicate: This skill goes further than being able to articulate the company’s values and vision. The candidate should be able to communicate to others their jobs and roles at a very simple level and to make sure they’re aware of their roles in terms of the success of the business.
The ability to motivate others: This is a very complex competency. It requires a fair amount of interpersonal awareness, the ability to identify what peoples’ wants and needs are, and to respond to them appropriately.
The ability to develop others: This skill is not only the ability to be a mentor, but something much broader. A CEO needs to be focused on how to optimize people. Optimizing the employees includes training, feedback processes, thinking about people in terms of strengths and weaknesses, and their key developmental points.
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Here’s the reality people forget to consider:
1. Sears is profitable and still generates cash flow;
2. Sears has a limited amount of debt, having used cash flow during the boom years to pay it down;
3. Sears has better comp metrics than competitors–better store comps on the apparel side than Kohl’s and JCP, comparable store comps on the hard lines side to HD and LOW;
4. Sears has tremendous “hedge” against its retail operations in the form of brands, real estate holdings, and “ancillary” businesses like Lands’ End and Sears Canada. Worse comes to worse, you could liquidate all 3 for significantly greater value than their current market cap.
Make no mistake–Sears Holdings isn’t a retailer. And what it needs isn’t a retail CEO. It’s not about buying the right merchandise at this point. It’s about achieving a better return from the assets it currently has.
Now, if you’re a CEO-candidate, all these factors are pretty compelling. I mean, on paper, would you rather be CEO of Sears or Macy’s and their staggering $9B debt load?
But subjectively, you know the situation is quite different.
1. Eddie is chairman and his fund owns 51% of the company.
2. Eddie is an off the chart analytic and deals with data. He also fancies himself a strategist who uses the data to make decisions (think Bezos, another ex-banker).
3. Eddie will always have better data, better detail, and better insight than insiders within the company. Consider it a fringe benefit of being a hedge fund manager.
4. Eddie crafted and executed the current operating model, including the creation of a vertical structure with Presidents in charge of every category–there’s a President of Toys, Electronics, Apparel, Jewelry, Shoes, even Online.
The reality is that Eddie might want a CEO, but what he needs is an Operator. He doesn’t want a strategist who can think for himself/herself, someone who will make independent (and contradictory) decisions. Eddie can’t help himself intrude in the daily operations or dabble in emerging technology so he doesn’t feel like his company is riding the short bus. But make no mistake–he’s an activist owner, like many other “entrepreneurs” such as Jobs, Gates, and Bezos. The problem is that those others built their own businesses from the ground up; Eddie built a hedge fund that doesn’t buy or sell any physical asset.
Eddie states willingly that if data supports a recommendation, he will support the outcome. For instance, if an investment provides a greater ROIC, then he will fund it. And right now, ecom provides a better ROIC than the stores. But if a CEO wanted to, say, undo his spaghetti-like org structure–which, by the way, is de-levering the business through needless overhead–and eliminate many of the wonky data-types, would he have carte blanche ability to do so? If a CEO wanted to exit non-productive categories, would he/she be allowed?
So if you were a candidate, you have to ask specific questions:
1. Do you think Eddie will allow an outsider to “run” the holding company he cobbled together?
2. Do you think Eddie will allow an outsider to make tough decisions, undoing many that Eddie made himself?
3. Do you think Eddie will allow an outsider to drive the transformation, even if it flies in the face of Eddie’s previous direction?
Eddie tried to go the cheerleader, HR type with Alwyn Lewis and that failed. He’s trying the Operator route with Bruce Johnson, but he’s a wall flower as a leader. He’s tried hiring other analytic types, including execs from other data-driven industries like financial services (Lehman, Capital One) and software (Microsoft, IBM), all with poor results.
The definition of insanity is doing the same thing over and over…perhaps Eddie should realize this and step away from the red button and bring in someone–anyone–who can truly drive transformational change. The result, however, is one that Eddie the ego may not like.
We’ve heard about zombie banks these past two weeks – it seems Kmart and Sears are zombie retailers. What exactly do they stand for? Once the most venerable name in retailing with strong recognition, sales of appliances and everyday value, this retailer has no meaningful message to anyone.
Kmart’s ploy of taking over Sears for real estate seems as poor as their day-to-day management. They’ve cut past the meat and bone all the way to the heart. There’s turnaround and then there’s burial–who wants to lead that charge as CEO? To read more about destroying your own brand like Hertz is doing, visit my blog.
Sears has yet to find a new CEO because Mr. Lampert likes running the company.
Now that General Patton has passed on, there aren’t many top CEO-types, if any, that want to walk into a blazing fire with someone else controlling the water hose.
To hedge his bet on Sears, perhaps Mr. L should close more than 25 stores, sell the real estate and return to what he knows much better than retailing.
This job could be as popular as becoming captain of the Titanic just outside of Newfoundland. Mr. Lampert needs to give more of a free hand to whoever takes the job. A fresh concept is what Sears needs. They need to fix the internal culture first before they can take care of business on the sales floor.
There are two issues. First, they really want a COO as they have a CEO in their chairman. People with the skill set to turn this one around are not interested in being second-guessed with every decision.
Second, most candidates would not be interested in overseeing the demise of the company. This can only be a real estate plan and with the current retail decline, the real estate is now worth a lot less than before.
As the comments note, what incentive is there to take the job? Those that are capable will not want to be second in command to Mr. Lampert. Those that are willing to be second in command may not have the right skill set to do the things that it will take to save the company. Then, you have to decide on your objective–long term survival or staying the course until you can liquidate the real estate. This situation is very challenging at best and with the demand for quality CEOs high, it will be a very difficult search to complete.
It will take a certain type of laid-back personality with a very small ego to fill the role of CEO at Sears.
Any retail veteran seasoned and experienced enough to be considered or qualified for this job would be aware of the following;
1) The Sears/Kmart Brand is seriously diminished;
2) This operation was in peril during the retail boom years;
3) Retail contraction is intensifying;
4) Only the biggest and best retailers will survive;
5) Lampert won’t allow the CEO a free hand;
6) Compensation will be tied to performance;
7) Performance will be inhibited by numbers 1 through 6.
Given the above, it isn’t any wonder to me that they are taking so much time to announce a candidate.
It’s just too tough a job. It would be like applying to be the manager of the Yankees if the current management continued to run the club and the team was in last place.
Sears already has a CEO, and his name is Eddie Lampert. Let’s not kid ourselves: Any viable candidate paying attention over the past four years must realize that Lampert is calling the shots. It would be hard to convince any outsider to take this job without a massive paycheck, since the likelihood of getting rich from SHLD shares or option grants looks pretty slim right now. It’s also clear that the key strategic moves that Sears should have already made (starting by killing the Kmart brand) are not going to happen on Lampert’s watch.
Where is “Chainsaw Al” Dunlap when you need him?
To add to the Greek chorus, the pressures to keep C-level compensation to reasonable levels also act as a disincentive.
So we’ve got:
– not enough authority;
– a sinking ship;
– not enough money to go down with it;
– an intense overseer.
No win.
Wow. Tough crowd here. There is still a viable business for SHC, to be sure. Can it be business as usual, absolutely not. However, no company can do what they did in the past and still hope to succeed. If the board can effectively choose a leader with great turnaround expertise, and ALLOW that person to lead, by taking smart risks, this world will not have to come to an end.
Its rare that all comments are ever in agreement, but there’s no doubt here. Admittedly, having to Google Al Dunlap, at least I learned something that I didn’t know. I think that we all know the answer here. Further, if the board wasn’t likely stacked with the same type that is being searched for, it wouldn’t take so long.
I’m thinking Willie Nelson might be available. After learning about Mr. Dunlap, how could Wilie do any worse? Along with Mr. Dunlap, he’s used to paying back large sums of money. Heck, he just may be the right spokesperson to give them a shot in the arm.
Working for Sears would be a reputation killer. It’s the laughing stock of retail for having one extreme failure after another. Past CEOs could not implement any good ideas because Eddie would not let them. No one seriously thinks Sears/Kmart will be around much longer, so why would a high-level exec take on a career-killing job?
Sears has said it is not spending money to refurbish stores; most of its locations are in malls, which are losing traffic and other tenants; many of Kmart’s stores are in older, dying locations, plus Lampert, as others have already noted, is the true CEO. What are the chances of success for any incoming new CEO?
Many strong executives have come into SHC thinking that they could make a difference. They didn’t last and fled when they realized the extent of Lampert’s micro-management.
Everything that happens in a company is driven by, condoned by or tolerated from the top. As long as Edward Lampert is at the top in an active role, nothing will change. Everyone on the outside knows this and that is why they can’t find a CEO. Having said that, they may find someone from another retailer who is out of work due to the economy and will take the job until they find something else.
I agree with some of the others that Sears will only have one leader who will determine the strategy and set the tone for the organization and that will be Mr. Lampert.
It seems to me that Sears and Kmart will need to have some form of an integrated strategy to survive and that anyone who serves at the top of either organization will be there to ensure the full execution of Mr. Lampert’s vision.
There are many talented individuals who have probably been interviewed but I expect they wanted more control of the business and its direction than Mr. Lampert might be willing to delegate.
Sounds to me like Eddie Lampert is looking for a figurehead more than a leader. I guess everyone he’s interviewed thus far has come to the table with their own sets of ideas. Too bad for them.
I have to wonder how all this searching has impacted on the morale of those execs who are currently busting their butts to make things happen, only to be added to the B list.
Being the CEO of a retailer at this juncture (no one knows where the bottom is) would be tough for anyone, let alone for someone at Sears. “Very talented individuals” will most likely seek employment with anyone but a retailer, at least for the next six months. The “Titanic” metaphor above applies in the sense that every retailer is now sailing in a sea of huge ice bergs and until we’re clear of that, the opportunity (or catastrophe) is not readily apparent.
Sears Holdings is a dinosaur waiting for extinction. Lambert is a venture capitalist and not a retailer and his hands-on approach will result in the demise of the formerly lucrative Sears brand. Kmart likewise has been eclipsed by Wal-Mart and to a lesser degree Target and will no longer be a factor in the discount market.
Lambert’s stewardship has been based on opportunistic greed and will have the unfortunate impact of disrupting many employees’ well-being.
SHC has enough money that Eddie Lampert could hire almost anyone he wants as CEO. And there are plenty of folks who’d be up for the challenge of improving Sears and Kmart, while working constructively with Eddie Lampert. Almost none of the comments on RetailWire acknowledge the enormous feat Eddie Lampert has accomplished: keeping Kmart and Sears profitable, while paying down debt and adding to the pension fund. How many other folks could’ve done that?
Eddie Lampert is right about so many things: there’s too much retail space in America, there’s no reason to spend money (capital or expense) if the return is lousy, it isn’t smart to have one and only one plan when all sort of unanticipated macro events occur, etc.
Many writers have argued that Eddie Lampert should give up some or all of his authority. What retail company has ever turned around with a hands-off chairman?
I think it’s reasonable to take Eddie Lampert at his word: he hasn’t offered the CEO job to anyone and he’s happy with Bruce Johnson as interim CEO.
Many contributors to RW don’t like Eddie Lampert, but millions of folks shop at Kmart and Sears. They’re voting at the cash register for Eddie Lampert. And they’ve been doing it for years.
It’s not over until Warren Buffet says the economy’s in shambles. Oh wait, he just said that today. This has to be the most extreme case of denial I’ve ever seen by a company. It was really over before it started for Eddie and everybody is always in agreement with their comments on Sears Holdings. Any businessman worth his salt just needs to step into any Kmart and he will see that there is no future for this company.
The mistake Mr. Lampert made was saying that he was going to continue this company as a retail operation. Please admit defeat before you cause yourself more public embarrassment and help our communities by boarding up your remaining blighted stores immediately.
Why do you think Sears has yet to find a new CEO?
My observations; Edward Lampert is a high A++ personality if he can let someone lead and truly empower them is one component. Based on past senior hires the sense is they did not get the time needed to get results. Sears didn’t get broke over night it won’t get fixed overnight. A slow selection process is not a bad thing, if the selection committee, search firm and Edward Lampert are all on the same blue print. Selecting great people is one of the top five leadership actions an organization must take to produce great results. Lastly with regards to qualities/competencies; identifying critical competencies of a CEO. I have five for review.
The ability to build teamwork: Getting a management team and different functional areas in concert and working together is an important skill. The CEO’s responsibility is to manage the business in such a way that departments and individuals work together to fulfill a vision.
The ability to think strategically: Does the person have an understanding of the position in the organization, a vision of where to take the organization, and the ability to put together a workable plan to get from here to there? The candidate needs to either be a visionary or be able to work with someone in the company who has that competency.
The ability to communicate: This skill goes further than being able to articulate the company’s values and vision. The candidate should be able to communicate to others their jobs and roles at a very simple level and to make sure they’re aware of their roles in terms of the success of the business.
The ability to motivate others: This is a very complex competency. It requires a fair amount of interpersonal awareness, the ability to identify what peoples’ wants and needs are, and to respond to them appropriately.
The ability to develop others: This skill is not only the ability to be a mentor, but something much broader. A CEO needs to be focused on how to optimize people. Optimizing the employees includes training, feedback processes, thinking about people in terms of strengths and weaknesses, and their key developmental points.