Time for J.C. Penney to Restore Trust

Mike Ullman has returned to J.C. Penney in hopes to quickly reverse the company's momentum. Investor bravado and boardroom drama feed news cycles, but do nothing for business results. The fastest and most effective path to turning around results is through restoring trust with the three key groups that can help him immediately: customers, employees and external stakeholders.

Think of each group as a long-time, powerful friend who has pulled back nervously, confused by some of your recent erratic behavior. You've built years of good will with them, however, and they're willing to step up if you give them good reasons why.

Customers
J.C. Penney's customers are confused and hesitant. Everything they loved about shopping with the retailer has changed, including the brands, designers and thrill of finding a good deal. Here are some steps J.C. Penney can take to win them back:

• Rekindle the love. Ullman must communicate directly to customers using all available media, assuring them this is the J.C. Penney they've always known and relied upon. Sincerely thank customers for their business and encourage them to shop with J.C. Penney in the future. Remind them that they're the core reason J.C. Penney is in business. Ask customers for their feedback and staff a team that can earnestly respond to each comment. Back this with strong customer service — in-store, online, on the phone — matching Ullman's rhetoric with actions.
• Pat them on the back. Remind customers how smart they've been in recognizing and taking advantage of the value J.C. Penney offers. Work to bring back these shopping experiences — i.e., the ones that built customers’ fanatical loyalty — in an even bigger and better way.
• Reward loyalty. Recognize and reward long-time customers in extraordinary ways for their unwavering support. Reinforce their old shopping habits. Target them with special incentives to return to stores, now.

Employees
Caught in the middle, employees are operating without a vision and articulated success path. Thanks to acrimonious fighting in the C-suite, they're confused and worried. They're keeping their heads down and trying to weather the storm without losing their jobs. They're not thinking about how they can rebuild the J.C. Penney business. Here are a few ways how:

• Align them. Declare a simple vision. Call out employee behaviors that made J.C. Penney great — no more than three ideas that reinforce key historic success factors of J.C. Penney. Draw them out with specific ideas they can act upon immediately.
• Listen. When people feel listened to, they engage. Get into stores and listen to employees’ ideas. Incorporate the best ones. Publicize quick wins to reinforce the message that it's a good idea to bring their best thoughts forward.
• Have their back. Subordinates want reassurance from authority. Provide a supportive, consistent voice. Employees want the truth. Don't sugarcoat reality, but paint a picture of hope. Bleakness and threats don't win back the frightened.
• Make it a game. Set goals that everyone can work toward, all the way down to the store and department level. Win as a team or lose as a team. When the company hits its goals, reward everyone. Games bring out people's enthusiasm and extra effort.

External Stakeholders
Drama is bad news to suppliers, shareholders and creditors. Ullman needs to assure them that J.C. Penney is being thoughtful, not just emotional. Calling upon the reservoir of good will J.C. Penney has built through the years, ask them to keep their confidence by doing the following:

• Reassure them. Share your short- and long-term plans. Without this information, they'll create their own stories, which will invariably be negative and wrong.
• Celebrate wins. Share results as they come in. Nothing wins people over like results.

Ullman will create the biggest, fastest turnaround by rebuilding trust with J.C. Penney's long-time friends. Listen to what each group needs and demonstrate you can deliver. Trust can be restored, and it will pay off in business results.

David Martin and Kathy Quinn are experts in business growth execution. They ensure that business leaders actually deliver on their best ideas by identifying and overcoming the hidden, invisible barriers that derail success. Having a great idea is the easy part. They help clients deliver.