Last year, Gannett became one of the latest U.S. companies to jump aboard the "purpose"-driven management train -- a pop consulting concept embraced three years before by no less than consumer-products giant Procter & Gamble.
Back then, new P&G CEO Bob McDonald had announced what BusinessWeek called a stunning new business strategy to jump-start growth.
"It begins," the magazine said, "in a startling, almost counterintuitive way -- with company values and sense of purpose. Invoke the heart and care about human needs, the strategy seems to say, and the money will follow."
Well, the verdict is in, and it ain't pretty. McDonald preached a commitment to "purpose-inspired growth" that executives and Wall Street analysts found vague and unmotivating, according to The Wall Street Journal.
The result: Thursday, McDonald abruptly announced his retirement, and the company brought back retired chief executive A.G. Lafley as his replacement. Now, Lafley has been charged with rebuilding the company's executive team. No word on the purpose concept's future, however.
Earlier: Corporate reveals plans for a Purpose Wall at the Chrystal Palace.
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"It begins," the magazine said, "in a startling, almost counterintuitive way -- with company values and sense of purpose. Invoke the heart and care about human needs, the strategy seems to say, and the money will follow."
Well, the verdict is in, and it ain't pretty. McDonald preached a commitment to "purpose-inspired growth" that executives and Wall Street analysts found vague and unmotivating, according to The Wall Street Journal.
The result: Thursday, McDonald abruptly announced his retirement, and the company brought back retired chief executive A.G. Lafley as his replacement. Now, Lafley has been charged with rebuilding the company's executive team. No word on the purpose concept's future, however.
Earlier: Corporate reveals plans for a Purpose Wall at the Chrystal Palace.
Gannett's purpose is to make a few of the top executives ridiculously rich while bleeding the community papers dry while gutting the product and running off the best workers.
ReplyDeletePrecisely, 4:57PM, as I and countless others have been saying for years.
DeleteAdd this mantra to the long list of initiatives rolled out by the CP that get discarded a few months or a year later when a newer scheme is concocted. Jim, how 'bout a list of them here in your reply? That would be a good laugh!
I think they should start "porpoise-driven management" - those mammals actually have brains.
What ever happened to the "Purpose Wall"? Does it still exist?
ReplyDeleteThe "Purpose Wall" does not exist -- didn't last more than a few months and really wasn't much more than a collection of photos and other odds and ends from various departments. Only thing it was good for was the announcement by Gracia and the ice cream sandwiches they handed out.
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DeleteThe Purpose Wall was perfect for Usa Today: shallow, directionless and without a real purpose. We would like to see the return of the ice cream socials, though. Gracia?
ReplyDeleteStraight out of Jerry McGuire.
ReplyDeleteMission statements get you killed. It's still all about "Show Me The Money."
Hopkins, with all due respect, you don’t know what the hell you’re talking.
ReplyDeleteFrankly, attempting to tie the two companies together because of “purpose driven” management is absurd at best, as the two companies could not be more different.
P&G values and respects employees, moves with speed despite its size and has long proven itself to be a producer of great products and a world-class marketer.
Gannett is well, anything but. Its culture cares little for employees as evidenced by years of openly tolerating and promoting bad managers. Moreover, in regard to Gannett’s marketing prowess (Banikarim's learning on the job is still costly and embarrassing) and products, years of customer defections, shrinking products, etc. speak volumes.
Hence, the only thing the two really have in common is how one uses the other to reach consumers and even that is less and less.
When does he know what he's talking about?
DeleteIf one of the world's top marketers -- P&G -- can't make sense of the purpose concept, what chance does Gannett have?
DeleteRead 11:27’s post Jim as you take a huge reach with what you still try to assert. Too bad.
DeleteWhat a stretch. Come on, Jim, get with the program or stop the nonsense. There is no connection at all and you just needed to add something of substance - but failed in an epic manner!
DeleteWTF? I'll say it again: Jim, WTF? Have you been drinking? Off your leds today? Holy crap, what a mess.
DeleteIt is a bit of a reach to say that P&G's "purpose driven" approach was the ultimate downfall of McDonald. It is true that, like at Gannett, there was a disconnect between this approach and the reality of how the business was managed day-to-day. But there were several other factors leading to McDonald's resignation. The best summary is in this Fortune article from February: http://management.fortune.cnn.com/2013/02/08/procter-gamble-mcdonald/
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