The Penney Idea

By George Anderson

In his book, Celebration of Fools: An inside look at the rise and fall of JCPenney (AMACOM), Bill Hare discusses what made JCPenney different from all other competitors.

One significant difference, writes Mr. Hare, was management's unerring focus on seven principles of management initially referred to within the company as "The Body of Doctrine," but later known as "The Penney Idea." The following are excerpted from Mr. Hare's book with permission.

1. To serve the public, as nearly as we can, to its complete satisfaction.
2. To expect from the service we render a fair remuneration and not all the profits the traffic will bear.
3. To do all in our power to pack the customer's dollar full of value, quality and satisfaction.
4. To continue to train ourselves and our associates so that the service we give will be more and more intelligently performed.
5. To improve constantly the human factor in our business.
6. To reward the men and women of our organization through participation in what the business produces.
7. To test our every policy, method, and act in this wise: Does it square with what is right and just?

When "The Body of Doctrine" was introduced in 1913 to a convention of 36 managers of J.C. Penney stores, the company founder James Cash Penney asked each of the managers to "see your working life in light of four guiding principles. H - to stand for Honor, which bespeaks worth. C - to stand for Confidence, which begets trust. S - to stand for Service, which brings satisfaction. And C - to stand for Cooperation, which proves the quality of leadership."

Moderator's Comment: Are present day companies committed to the type of ethical standards established by J.C. Penney in 1913? Are there any that stand out for not simply "talking the talk, but walking the walk?"

Celebration of Fools has been criticized in some reviews for blurring the line between fact and fiction. Written in a narrative non-fiction style, the book's author creates dialogue in some places that he believes is representative of what actually took place. Because of this, the reader finds her/himself trying to ferret out what portions of the book are historically accurate.

That said, we still highly recommend Bill Hare's work. Even if it were pure fiction, Celebration of Fools tells a story about the power of committing to a vision that all in retail or any other business should aspire. - George Anderson - Moderator

• Celebration of Fools is available for purchase from the major online booksellers and from the American Management Association Web site.