I have posted several times about J.C. Penny. (Just search the archives for J.C. Penny). In my last post, I suggested the Board of Directors was to blame for this debacle. And now they are compounding the problem.
They have posted a video asking their customers to come back to the J.C. Penny they knew and loved. They are bringing back their old house lines/brands. In effect, they are going back to the old J.C. Penny. For what purpose?
If the old J.C. Penny was working, what caused them to hire a transformational CEO? If the old J.C. Penny was not working, what is the purpose of bringing it back? Nothing better to do? Really, a high-powered Board fires their CEO without a plan other than to go back to what wasn’t working before they hired him? Where can I get a gig like that?
The effects of Board actions are often misunderstood or under-estimated. In my opinion, the Boards of Directors of GM and HP were complicit in those companies’ demise, and I believe we can add the Board of J.C. Penny to the list.
If you are going to use an outside Board, make sure you get a good one and then listen to them. If they aren’t worth listening to, replace them or get rid of them.
Mitch
