In several posts I have questioned what J.C. Penny is up to since firing their CEO and bringing back the prior CEO. Clearly they hired a new and transformational CEO as they felt the earlier strategy was not working. And yet, they brought back the previous CEO when the “transformation” did not produce quick results.
I have tried to figure out how that makes sense. Silly me. Today’s announcement by the old/new CEO explains it all: ” J.C. Penney Co Inc Chief Executive Myron Ullman told Wall Street on Thursday that the department store chain is emerging from what he called an abyss but warned he needs time to fix the issues of the retailer.”
Things were bad when he was the CEO, otherwise why hire a transformational CEO. However, as the transformation put the company into an “abyss,” now when they emerge worse than they were before Ullman left, it will seem like things are better.
If you get someone to lower the bar for you, it’s easier to look good when you clear it. Too bad for shareholders.