If one thread runs through the "Lowe's Saga" it has to be that the corporate folk seem to engage the
knee-jerk solution every single time. Whether it's a response to competition, failure of a strategic plan,
response to bad press, or even the possibility of becoming irrelevant, they never fail to choose the obvious wrong solution.
Take the financial crisis Niblock backed into with Maltbarger that started the initial panic, https://businessnc.com/lowes-cos-s-expensive-australian-trip/ costing all expansion of new stores,
store closures and departures of ASM's. Lowe's never revealed their misplay to the rank and file, "the
team" because it was a billion dollar loss in the worst home depression market they had ever experienced. The right call be honest, Lowe's chose to dress the whole thing up and make it a new
adventure, they called it LEF, Lowe's Evolution, Love where you live...Serve management. Again the knee jerk smoke and mirrors.
So now the impact flows to the stores and re- structuring begins, although denied vehemently as
internet sabotage by Topix in a letter to workers by Rick Damron, he states "no one is being terminated!". Months later Dept Managers are re interviewed in a mock full scale adjustment of their
duties and told their positions are eliminated. The solution , the remaining members of the District Managers succession list comprising young lower paid male whites, token minorities, and inner circle
boot lickers become "Service Managers". All happening in just two weeks!
Stock languishes and hedge funds target Lowe's management as poorly delivering return back to shareholders(meaning them)
Niblock straps on his golden parachute, warming these past 8 horrific years, and sends in the clowns to run things.
And what happens! Every quarter a layoff, a cut program, real draconian stuff just because things need to be adjusted. Knee jerk reaction to a company in desperate market position and treading water with no real capital to spend. The stock plays the pair game with HD and the hedgies https://www.cnbc.com/2019/08/21/cramer-remix-lowes-rally-was-fueled-by-more-than-just-a-strong-quarter.html Whittled to the bone, Lowe's keeps cutting: commission allowance, expense labor, appliance inventory and anything that smells of expenditure. Why? They must be k–ling it right?
Yet the impact is unfathomable...destroyed careers....sudden job and benefits loss...destruction of employee moral and trust....brand repudiation and culture homicide! The "Knee jerk solution", we earned a better percentage than Depot. Are there just a few more times Lowe's can rub the magic genie or has
the well finally run dry!
P–ptoast
7 replies (most recent on top)
I agree about LEF—it was all basically fancy sounding words like Omni channel and other platitudes, and has led us to the current malaise that the company is in. The fundamental building blocks of retail have not changed. Lowe’s needs to embrace a new mission statement called “back to basics”.
Niblock tried to grow the company through acquisitions instead of focusing on our core business and growing market share. The result was disastrous and as a company we are still paying for those mistakes—the Australian joint venture boondoggle, the Orchard Hardware money pit, Mexican stores losing money, and vastly overpaying for Rona. ALL of this was left on the desk for Marvin Ellison to deal with. Rome wasn’t built in a day and likewise it will probably take several years for this mess to be cleaned up.
Everyone needs to see the 2nd quarter financial video. They state that they will be doing away with the RTM job in the future, but they will put those people on the sales floor when they do that
Joe Mc Garland has stated Hispanics like the DeWalt 12 v drill because of their small hands.
Marvin has started a " Lowe's all in" " Culture, Diversity, and Inclusion" for employees to join on their work site. Fancy name is Lowe's Business Resource Groups ( BRG's) It is basically groups based on your race. Women even have a group. The only group that there isn't, is white males
I opened a successful business once. For that I had to create a detailed business plan. Every contingency was planned. Without that plan we would have failed. I see nothing evident to say that Marvin has a written plan. All I see are thoughts and ideas, and a let’s try this and see mentality.
Failure looms large without a plan for success.
Lowes Termination of the Future.
LEF was we basically sat in the training room and asked to share something special or unique about ourselves in group settings. We work for a hardware store. I don't need to be special or unique. I have my personal life for that. My job is to be good at it and know numbers and sales and know how to increase. And any one else who thinks we are just using veterans that work with us for publicity? Most of our Fsas that got fired with out notice were veterans. But put that badge on and take a photo pic.
I have worked for Lowe's for 21 years. You are correct. LEF was our downfall. No evolution involved. Lowes Experience of the Future.