Workshop 9: Change at Target

Target is the U.S. third-largest retailer after Walmart and Costco, but in the last decade it has seen its earnings drop from $3.2 billion to $1.5 billion (in 2014) with net income as a percentage of sales similarly dropping from 4.6 percent to 2 percent during this period. These were key elements of the context into which Brian Cornell arrived in August 2014 as Targets new CEO. Since arriving, some of the actions that Brian has taken include:

1. He made an impromptu and incognito visit to a Target store in Dallas to talk to customers. Unrecognized by store employees or customers, he sought candid opinions from shoppers. This was a surprise to Target executives because it was a significant departure from normal practice. Prior to Cornells arrival, store visits did occur supposedly as intelligence-gathering exercisesbut they were meticulously planned affairs, only less formal than, say, a presidential visit, with the store managers notified in advance and the regular shoppers handpicked and vetted (Wahba, 2015, p. 86).

2. When he first arrived at Targets headquarters (in Minneapolis) he was allocated the newly refurbished CEOs suite, but he insisted that he be moved to a smaller office close to Targets global data nerve center. The 10 staff in this center monitor live feeds from social mediaincluding Pinterest, Facebook, and Twitterand TV stations for stories/information on product launches, customer comments, and so on. The nerve center staff watch these media on large screens and use software to aggregate data for later analysis.

3. With the intention of putting pressure on Amazon and Walmart, he changed Target policy to one offering free shipping for online orders during the holidays, a decision that was made in a matter of days rather than the months it would have taken in the past (Wahba, 2015, p. 88).

4. It is not unusual for him ask colleagues about their work-life balance and especially their workout habits. He encourages colleagues to take time for fitness activities and isnt the type who exalts the machismo of outlandish hours (Wahba, 2015, p. 88). Cornell relaxed the companys dress code and eats in the company caf, where he mixes with staff. He has moved the companys recruitment policy to change the situation where Target was long populated by lifers to one making more effort to recruit outsiders with fresh ideas (Wahba, 2015, p. 94).

Consider the proposition that managers actions have symbolic meaning and will be interpreted (by other organizational members) in this way:

1. What do you see as the symbolism associated with Target CEO Brian Cornells actions?

2. If you were a Target employee, what might you conclude about the nature of the change happening in Target?