Jc Penny Culture

JC Penney Culture

The board of JC Penney brought in Ron Johnson to sprinkle a dose of his Apple magic and completely remake the aging retailer. But Johnson’s attempt at retail revolution imploded because he failed to manage the cultural transformation that needed to take place within JC Penney.

The employees of JC Penney were socialized into a certain organizational culture. Upon Johnson’s arrival he altered the basic assumptions of what the JC Penney employees used to perceive, interact and maintain their environment. The espoused values and observable artifacts that were engrained within JC Penney corporate culture were altered without any clear new ones taking their place. Rumors of mass firings were running rampant without any available criteria for who is going to be let go. There were numerous product and company direction changes without clear written directives. Employees were not allowed to offer feedback or criticism without repercussion from management. This all left employees worried about their careers with JC Penney and what direction the company was headed. Johnson came across as an outsider who commuted by company jet from his home in California to company headquarters in Texas while staying at Ritz-Carlton’s paid for by JC Penney while 1000’s of employees were laid off.

An organization’s culture is critical to that organization’s vision and strategy. A clear company culture gives employees their organizational identity. It makes possible overall vision and strategy commitment. Company culture also helps employees manage conflict and change, make sense of their surroundings and understand why the company is taking the direction that it is.

Rather then just ditching the old culture, Johnson needs to invest in defining the new culture with an energizing vision that allows employees to buy in and embrace this new vision. In reviewing Kotter’s eight steps for leading organizational change, JC Penney seems to have stumbled in transitioning...