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Lessons Learned from Target Canada: Strategy vs. Culture vs. Leadership Talent

January 5, 2015 by Samuel Dergel Leave a Comment

The closing of Target in Canada within a couple of years of the iconic US retailer expanding its business in an attempt to become multi-national in an attempt to complete and grow against its main competitor (small company based out of Arkansas) is sad.Strategy Culture Leadership Talent @DergelCFO

Sad because over 17,000 people lost their jobs and need to start over.

Sad because the brand of a true ironic American company has taken a big bruising.

Sad because, if the expansion was executed correctly, it would have changed, and probably improved, the retail landscape for Canadian consumers, not to mention the impact it could have had internationally.

And most importantly, sad because it didn’t have to turn out this way.

I have waited to share my thoughts on this news so it could allow me to think about how to comment on this property, while taking in the commentary and opinions of others.

There are those that come out and blame the logistical failure that led to empty shelves.

A number of people pointed to pricing differences between the US and Canada that had Canadian consumers scratching their heads at the perception that Target Canada’s pricing was inconsistent and unfair.

Pundits point to the poorly chosen locations ‎that Target chose after the demise of Zellers in Canada, as well as the strategy of opening too many stores at once while not learning this new and culturally different market.

In the end, while these may be reasons (excuses) for a series of failures, the failures of execution stem from the failure of leadership. And this goes all the way to the top, and every leadership level on the way there.

Imagine the scene in the boardroom at Target a few years back. Imagine executive management making a very slick presentation to the Board as to the Who, What, Where, Why, When and How of expanding into Canada. Imagine that everyone was giddy with expectations of success, profits and accolades. The strategy was set. All was needed was the execution of the strategy.

When I picture the final approval at the table, my childhood memory is of Captain James T. Kirk saying those famous words “Make it So, Number One”.

Obviously, “making it so” is a lot easier said than done. Target’s Canadian adventure is one more highly publicized misadventure for MBA case studies of the near future.

Leadership Talent is where this fell apart. All the actions or inactions, reasons or excuses, come from the fact that the right people were not hired or promoted to make this grand scheme work.

I continue to see, time and time again, situations where companies do not bring on board the best possible leadership talent to execute. Execution not only means following the original strategic plan, but making sure that the plan continues to evolve as the situation evolves. The mistakes we know about, as well as the mistakes we will never hear about, all contributed to the demise of this $4 billion dollar adventure for Target shareholders.

I also continue to see, time and time again, choices being made in executive hiring that are emotional, personal and illogical. Vested interests lead to decisions being taken without proper assessment of the true needs compared to the knowledge, skills and abilities of the best candidates for these mission critical roles.

The bright side of the Target foray into Canada is the impact that Target culture has had on a generation of Canadian employees. I enjoyed reading and hearing about the warm, motivating, employee excellence and recognition culture that permeated the organization. ‎I believe that employers and employees across Canada will benefit from the introduction of these ideas into businesses across Canada for years to come.

But to paraphrase Peter Drucker:

Culture may eat strategy for breakfast, but Leadership talent ensures that there is food on the table. 

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Samuel Dergel is a Principal with Dergel Executive Search. He is an executive search consultant, executive coach, blogger, speaker, trainer and author.

This blog originally appeared in Samuel’s CFO Blog

Filed Under: Business Failure, Executive Leadership Blog, Peter Drucker, Quotes, Target Canada

3 Lessons Learned: The Failure of Heenan Blaikie

February 6, 2014 by Samuel Dergel Leave a Comment

The Canadian legal and business communities are getting over the shock that a storied, successful and well known establishment corporate law firm has decided to shut its doors this week. (Read the Financial Post: Heenan Blaikie partners vote to wind up operations)Heenan Blaikie

Heenan Blaikie has been an icon in the business community in Canada for decades. The fact that it can just disappear and disintegrate in a matter of weeks leaves many lessons to be learned. Here are some of the things that were reinforced for me this week.

#3 – Job security is a myth

The only place that job security exists is in your head. There is no such thing as a safe, life-long, job.

Throughout my career in recruitment, I have always heard from individuals that were looking for the safety and security of a career in a firm that is too big to fail. And every so often, stories of failures, restructurings, refocused strategies and mass-layoffs make the headlines. If you would have asked any employee (and many partners) this past December if they had any fear for their career with the firm, they would have given you a look that would be a mix between being puzzled and that you must be out of your mind.

Don’t ever think you have job security. I don’t care what company you work for, even if you work for supposedly secure jobs in government. You job is at risk. If you don’t want to be unemployed, or to minimize your time in transition, you must build and invest in your network. You can only expect your network to work for you if you have invested in it before.

If you’re a CFO or senior finance professional, you may want to read my chapter on CFO Transition in my upcoming book.

#2 – Beware the multi-headed monster

If you’re my age, you remember Sesame Street well. You will also remember the two-headed monster with a smile.

Professional services firms have a challenge becoming a business like the others. The nature of this type of firm (accounting, legal, engineering, marketing or even executive search) can be very perplexing. In most publicly owned businesses, the boss is the CEO and the Board represents the owners. Managing relationships for an executive in a standard environment can be challenging enough. While there is a chain of command, the number of people to keep happy is limited and controlled.

In a professional services firm, every partner is the boss. Add a number of people with big egos and who are not afraid of litigation and you can find yourself facing a multi-headed monster that is not as cute and cuddly as the Sesame Street version.

Managing relationships is a key component for the success of any executive. From the perspective of a CFO, I believe it looks like this. In my soon to be released book, I discuss the issues of managing these relationships for success, and dedicate one chapter to the challenges of managing the relationships of the people you report to.

#1 – The world is changing. Are you?

This applies to all businesses as well as individuals.

The post-mortem on Heenan Blaikie will continue for a while. When a personal relationship breaks up, there is his story, her story and the truth. In a partnership that has many heads and egos, the story can only be more complicated.

From an informed outsider’s perspective, the legal industry has been going through changes in the past years and decades, mirroring the changes that have been going on in rest of the business world. In today’s world, business needs to grow to keep their competitive advantage, needs to assess strategic opportunities and threats, and must take on a more global perspective while keeping a local flavor.

All businesses must adapt to the changing realities facing them. Failure to do so can lead to doors closing.

On a more personal note, each one of us needs to be aware that to continue to stay relevant and employable, we must continue to improve, change and adapt so that we can thrive. Sitting at your desk while the world changes outside your window will only leave you dazed, confused and lost when security leads you outside the building.

What are you doing to:

    • Create your own job security?
    • Get the best out of your work relationships?
    • Stay ahead of the curve in a continually changing world?

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Samuel Dergel is a Principal with Dergel Executive Search. He is an executive search consultant, executive coach, blogger, speaker, trainer and author.

This blog originally appeared in Samuel’s CFO Blog

Filed Under: Business Failure, Executive Leadership Blog, Heenan Blaikie

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