After all the posts about The Home Depot (NYSE: HD) and seeing so many comments about the condition of the stores, customer dissatisfaction and low employee morale, I started thinking about what management needs to do to turn things around. What would I do in this state of affairs? Only one thing came to mind. Leave the ivory towers and spend time in the stores. Not visiting, not inspecting, not for pep talks -- actually go to the stores and stock some shelves! Spend some time helping customers find what they need. Work at the customer returns counter. Work at the checkout counters. Help customers to their cars. Brown bag lunch with employees.
The Home Depot directors, officers, and senior managers need to actually return to the days of the owner getting his hands dirty. It's time to role up the sleeves and lead by example. No more reading reports to find out how things are going or visiting three stores in a day that have been prepped for your arrival. At this point, management needs to actually jump into the trenches with the troops and see the world from their perspective.
This is how Costco Wholesale (NASDAQ: COST) Starbucks (NASDAQ: SBUX) and Southwest Airlines (NYSE: LUV) grew strong, just to name a few. The leaders know from first hand experience what needs to be done because they have been there alongside employees and customers making sure they understood what it takes to build a successful enterprise and keep it that way. You cannot manage what you do not understand. When ex-CEO Nardelli left The Home Depot in January, he could have won a trophy for being the CEO most out of touch with customers, employees and shareholders on planet Earth. They could have used his likeness to craft the trophy itself.
I write this to remind management that there is no time like the present -- the time is NOW. Get to work -- real work! Then you will be able to turn the ship around. If not, you'll just leave a bigger mess for somebody else to clean up. Did I hear someone shout "spill on Aisle 3?!"
Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well. Disclosure: I own shares in SBUX, as of this writing.
Sheldon Liber is the CEO of a small private investment company and the vice president for design and research at an architecture & planning firm.Check out his other posts for BloggingStocks here.
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Reader Comments (Page 2 of 2)
6-21-2007 @ 10:56PM
Craig said...
I have thrilled to see the return of Ace Hardware stores in our area. A refreshing site, considering the total failure in customer service from both Home Depot and Loews. At least the folks at Ace are considerate, and helpful.
6-16-2007 @ 6:55AM
Marlys said...
I'm the wife of a HD employee. I have to live with my husband's schedule. The lack of HD's ability to give someone a regular schedule means you cannot plan and always have to trade days or bother the scheduler because you have doctor's appointment. This is ridiculous along with their pay schedule. My husband does his best for the client and will bend over backwards in the name of customer service. He sometimes brings his work home with him because he's so frustrated over store policy and the limitations that management puts on their ability to provide what the customer needs. There are days when he's assigned to work 3-4 departments at the same time. HD has a way hiring a person because of their skill level as plumber or electrician and then assign them to the garden department to work. Where's the thinking in this? I believe in cross training but skilled employees need to be working where their skill level is and with enough staff to properly man every department equally AND with adequate pay. Thanks for listening.
6-17-2007 @ 11:04AM
Kenny Bouy - Naples said...
Home Depot: when it first came to SW Fla...fair products, fair prices..seasoned help..competent operation..clean stores..NOW, all the opposite, mostly crummy products, at inflated prices,..mostly have junky products that somehow have GE tatoo emblazoned..never has specific products in high demand, plumbing elbows & copper..list goes on & on..always drive 2 extra miles to Lowes when got to have a product to satisfy customer..store looks like Little Havanna..
6-18-2007 @ 7:12PM
Robert McCollum said...
Home depot Needs people in there store who can keep them stocked, Manage the employees you always see standing outsaide just talking. I am in there stores every day as a contractor. Its impossible to find everrything you need as the shelves are never fully stocked or organized. They are hiring poeple who dont greet you, wont ask if you need help alot of them have such nasty attitudes that you just want to walk out and go across the street to Lowe's
Doug McCollum Huntingtown, Md
6-19-2007 @ 3:30PM
K said...
Amen - they need to put their heads down and get to work. They cannot manage what they do not understand and with their recent push to hire from outside they need to change their management philosophy so that their outside hires can get a taste of the business. Anyone can walk into anywhere and point out the obvious - you have to know the business to be able to fix the business. It is easy to be a master of the obvious - harder to enact change. From safety violations to high shrink to nonexistent customer service standards - HD needs to act fast.
6-20-2007 @ 8:14AM
Schatzie Caldwell said...
I always preferred Home Depot until Lowe's got their act together and you no longer had to wait on computers to pick up your supplies. All of a sudden customer service is A one at our Lowe's and HD had a sale for Thanksgiving so we waited in line at 5:AM and the sale items were still in their boxes not cut open and salesperson stood there and refused to help we, each one of us that were there for the drills, picked up an entire box of 6 battery operated drills and took them to the cash register. There is no need to tell you other customers were furious. WE bought ours and never went back to that store.Anderson South Carolina has the nastiest store and most unhelpful store in the nation. Thank you for allowing me to vent.
6-20-2007 @ 5:25PM
Robert said...
Home Depot service did not just go down recently!
They have been sliding downhill for several years.
Last year I took time out of my day to go to the corporate headquarters in vining to complain about the poor service in Milton, Florida that I had experienced in the hands of Store Mng John Vaughn.
In Atlanta, they would not even come down from the tower to talk to me in person insisting "company policy" and even called security while I was quietly waiting for someone to come down. PATHETIC! I am a commercial developer and spend alot of construction dollars. Now all the business goes to LOWES. Nobody is perfect but I have heard the same over and over and over from contractor that Home Depot "just doesn't care anymore!"
As for John Vaughn he laughed and thought the whole incident was funny. PATHETIC!
6-20-2007 @ 6:18PM
Tee said...
My local HD is a pig pen!
I feel dirty just shopping there, whether I buy or not.
I once went to the plumbing department and asked for help installing an item I previously purchased. When I told the HD employee about my confusion, the HD employee immediately said, "You don't know how to do THAT??? That's so EASY!"
I looked at this clown and said, "If I knew how to do this, I'd not be asking for help."
6-22-2007 @ 9:20PM
evelyn said...
I used to be a frequent customer of HD-then I tried them tried them for my kitchen remodeled. What a nightmare!!!!!!
Hard to get an appointment, staff didn't know their product lines,prices, delivery dates, etc.
I live in Honolulu and the one "expert" in the Design area on in high demand. She was overworked because customers wanted her assistance --the other "design" personnel wanted her assistance too (sic). How can a store the size of HD not have a better staff. Who runs their clients for customers. Oh maybe I'm thinkig of Lowes.
I had to seek help word of mouth. It cost more but I got the job done.
Even the simplest question seems to make the staff persons run. I thought to myself-The TV commerials about "helpful and Knowledgeable staff" does not exsist HD.
6-29-2007 @ 10:38PM
John said...
Perhaps a just reward for Mr. Nardelli would be to have to find a Home Depot employee who knows what he/she is doing. My local store (Gaithersburg, Maryland) is pathetic. Last time I used a real cashier, lettuce was dripping out of her mouth as she ate a sandwich while ringing me up. A customer service rep didn't know what "adhesives" are -- she still wasn't quite sure when I redescribed it as "glue". My money is on Lowe's -- while not great, there is at least some semblance of knowledge and customer service.
7-04-2007 @ 12:42AM
don beebe said...
as a 7 yr employee of HD the problems are-
not enough pay to hire good decent employees
not enough training for the employees
not enough good decent trained employees in each dept.
managers and dept. heads do not make sure employees stay in their depts.
WE NEED MORE FAIR PAID TRAINED EMPLOYEES THAT STAY IN THEIR DEPTS. PAY ATTENTION ATLANTA!