Five Turnaround Tips for Ron Johnson, JC Penney and Others

Original article appeared on – March 11, 2013
Ron Johnson - JC Penney

Getty Images: Ron Johnson

Ron Johnson’s cheering section must be working overtime these days to now credit him for reinventing the definition of corporate performance.

When the Dow has been setting new records on a daily basis, JC Penney stock limps along. Major shareholder Vornado Realty Trust dumped their shares below market value, and former chief executive Allen Questrom publicly called for Penney’s board to remove Johnson.

The retailer also announced they would terminate 2,200 more employees, and that they would suspend selling Martha Stewart-designed products Macy’s claimed were exclusive to them. Some five months later, how does this dose of reality compare to fawning predictions about Johnson’s “compelling vision” and uncanny abilities?

Turnarounds are hard for any size organization. But smaller companies — the backbone of the US economy — have even less margin for error than JC Penney does. Therefore, it is essential smaller and mid-size business leaders realize certain truths well understood by anyone who has ever participated in a successful business turnaround.

Read the complete article on CNBC.COM

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