My recommendations for JCPenney’s next CEO

I just watched Marvin Ellison’s mea culpa video to JCPenney associates.

In the video Mr. Ellison talks about 3 reasons why associates should feel good about the direction of JCPenney: Great product, financial stability and great strategic partnerships.

To me, he’s missed the most important reason. I’m no brain scientist but from experience I’ve learned the top asset of any company is its people. How could he not recognize the team for their support and hard work? The 3 things he mentioned are only relevant if the team is motivated and can execute on them. As he very eloquently stated, the #1 job of the CEO is to build shareholder value, and I do give him credit for owning up to his failure on that.

I started my career at JCPenney, I worked in both the stores and the corporate office and had many challenging projects along the way. JCPenney is a key client of ours and I still have a lot of good friends there. I am also a shareholder. There’s a reason for that- I believe in the people there. I think about how many leadership changes the team has been through over the last 10 years. They are survivors. They have learned to be adaptable (no easy task, most people don’t like change). They are smart and believe in the fundamentals of what JCPenney stands for- “the golden rule” – which essentially says treat people the way you would expect to be treated.

There are many challenges ahead for JCPenney as they continue to compete for every 1/1000th of market share. The next CEO will have to contend with even more challenges, both internal and external. Here are my recommendations for the next CEO:

1)     Empower the people. They need it after Marvin’s departure. Talk to them and ask the hard questions. What does the consumer really want? What compelling reason do they have to shop at JCPenney vs. Kohl’s, Macy’s, etc.

2)     Continue to invest in new categories. There’s a gaping hole in the toy market right now. Maybe it could be a reason to get consumers back into malls. According to demographics, the next decade will be all about the home business. Use the incredible power of the JCP private label sourcing organization to capitalize on that.

3)     Stop the money games with suppliers. Suppliers are an extension of the employees. JCPenney is not alone in having suppliers pick up a sizable amount of the cost of poor merchandising decisions, but what comes around goes around. If suppliers don’t feel threatened by it, they may provide more exclusives and more fashionable product that consumers will notice and give JCPenney an edge. Don’t just call them partners- put your money where your mouth is. They’ll support you 1000%.

To my JCP friends and family - hang in there. You always do, and you ought to be proud of your accomplishments.