Remaking JC Penney's Organizational Culture |
ICMR HOME | Case Studies Collection Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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ExcerptsBackground Note
Enter Ullman, Exit CastagnaOn October 27, 2004, JCP announced that Ullman would succeed Questrom as chairman and CEO of JCP on December 1, 2004. The Board Search Committee led by Vernon Jordan Jr., and assisted by Heidrick & Struggles zeroed in on Ullman due to his rich domestic and international experience in the retail industry... The Need for a Change in CultureWhen Ullman joined JCP, he found that the organizational culture was very formal. It seemed to him that the culture prevalent at JCP had not changed much from what it had been in its earliest days. The employees referred to the store managers and other people of the management as 'Mr.', 'Ms.', etc. and the surnames rather then the first names. The employees also wore formals; casual wear was not acceptable. Even on Fridays, which are generally accepted as 'causal wear day', JCP employees were expected to come to office in formals...
Initiatives taken by JCPThough Ullman had rich experience in the industry, he desisted from introducing sweeping changes at JCP based on what he thought was right. For the first few months, he patiently listened to the employees. He also looked outside for ideas. He talked with people who had led turnarounds in other companies and even sent a team to International Business Machines Corp (IBM)... |
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