CASE PRESENTATION

REMAKING JCPENNEY’S ORGANISATIONAL CULTURE

GROUP MEMBERS:

ABHISHEK KUMARDEEPSHIKHA

MAYANK NARANGPRIYANKA DUGAR SHIVANI TAMOTIA

URMI MOGRA

JCP- AN INTRODUCTION

1902• Set up by James Cash Penney• Partnership with Thomas M

Callahal & William Guy Johnson

1907 • Bought partner’s stake

1920 • 312 stores in 26 states

1924• Incorporation as JCPenney

Company

1930• 1452 stores, 25000 employees

denoted as Associates

1951 • Revenue: US $ 1 Billion

CONTD…

CONTD…

1964 • Revenue: US $ 2 Billion

1990’s• Competition from WALMART &

Dillards

2000’s

• COO: Vennesa Castagna• Chairman & CEO: Allen Questrom• In 2004, Mike Ullman succeeded

Questrom

TURNAROUND AT JCPENNY

1999-2004 : Turnaround orchestrated by Questrom and Castagna

EXISTING CULTURE

Formal & Rigid Structure

Absence of Open Door

Policy

Prominence of Managerial

Ladder

Strictly Formals

Office Police

Motto: ‘The Penney Idea’

Also known as HCSC

INITIATIVES TAKEN

No Abrupt Changes

Appointed Theilmann as Executive VP

Long Term Plan – “Making JCPenney a great Place to Work”

Launch of “Just Call Me Mike” campaign

Relaxation of Dress Code

Disbanding of Office Police

Introduction Of Afternoon Offs on Fridays

Emphasized the word ‘PEOPLE’

Issue of New Security Badges

Launch of Winning Together Principle

2005: First Associate Engagement Survey, First Christmas Party

Leadership conferences for Store Managers

Implementation of Open Door Policy

TRAINING & DEVELOPMENT

Identification of ‘Hypos’

Establishment of Retail Academy , 2006

Harnessing IT in Training

Brand Repositioning as “Everyday Matters”

LEADERSHIP STYLES

Enforcer Visionary

Deal Maker Serial Entrepreneur

Administrator

RESULTS

Increase in Job Involvement by 6% in 2006

Increase in operating profits by 22.5% in 2005

Qualitative Talent attracted

Further Increase in Profits by 17.8% in 2006

CONTD…

28 New Stores

Hike in Stock prices by 10 Times

Improved Job Satisfaction

Low Employee Turnover

LEARNINGS

Motivation for change

Data Collection, Diagnosis &

Problem solving

Planning strategy for

change

Intervening in the system

Reinforcement & follow up

Monitoring & Evaluation

ABAD’S MODEL

OTHER LEARNINGS

Commitment of Top Management Vital in Culture Change

Participative Approach

Job Satisfaction Not a Function of Monetary Incentives only

Happy Employees make Happy Customers

Emphasis on Job-Misfit Theory