Thread regarding Kroger Co. layoffs

CLASSIC BUSINESS CASE STUDY

I come at this wth a perspective of multiple years of experience in GO and in the Divisions and yes the Stores as well. The day that Dave Dillon left as the leader of the company started us on the path we are on today. The decisions since his departure are a direct result of challenges that the company is facing. This calamity of errors will find their way into Business School curriculum and at some point be an example of a Classic Business Case Study with the purpose of teaching future business leaders what not to do.

I have seen many comments on this website that says Rodney is greedy. I don't believe for one moment that he is personally greedy or wants one more dollar that he currently has. All in all, he lives a very simple life considering his wealth and is in fact very charitable.

Power is the motivator for Rodney and not Greed. In his efforts to establish and maintain the power that sustains him, he made many mistakes including the following:

  • -He had to have a $250 Billion Company in 5 Years. Why and for Who? In his desire to achieve this we have left the true values of the company and repaced them with posted slogans on the conference room walls and playing emotional videos with little jingle music at the beginning of each meeting. Any company that has to print its core values on every correspondance, state its purpose (Feeding the Human Spirit), and start every meeting and conference call with an Uplift! is "Fake News." and nothing but Wall Art. The truth is if you have to tell someone that you are honest and are of high character, then there is a problem.
  • He is an isolationist. He systematically controls his environment and the people around him (the Directors, executive leadership, etc.). He does not like to be challenged or questioned. He hates when he has to compete for the air in the room. Some would say that this is the reason that Don McGeorge got fed up and left. Their was not enough room for Dave, Rodney, and Don to coexist. We would have been better off under Don. He knows the Grocery Business.
  • -Rodney thought he was Entitled. As a young whipper snapper financial guru, he was credited with saving the Kroger Company after the attemped KKR takeover in the late 80's. His contribution in debt restructuring and debt management was considered to have saved the day. This very well may be true, however, I think that falling interest rates quarter over quarter for several years as well as favorable commodity prices driving manufacturing profits may have had a little something to do with it also.
  • -He does not believe in Inclusion: Now this may be where some of you from non-Kroger Banner Divisions get a little sideways with me but here goes it. He has insulated himself with non-Kroger

Banner leadership. That is all except for his God Daughter. His Leadership team have brought their cronies into their leadership teams and have absolutely made it impossible for any Kroger Banner leader to move up or much less matter. Look at the Division Presidents. Most are all from over Rockies or from outside the company. Look at the VP's in G.O. How many Merchandising Folkes in leadership are from Kroger Banner Divisions? Just 1 that I know of and he just got there after being on a West Coast assignment for a couple of years. I personally don't care where leadership comes from but when there is no balance, no inclusion, your not going to get the best. Remember that "Inclusion" is one of those words that we put in print and post on our conference room walls (Wall Art) that the company has to make sure that you know that it stands for.

  • -Tim Massa: Rodney made a very very bad hire here. The Chief People Officer is so full of himself. Really Timmy, taking inside camera shots of you and a guest going for a little ride along is well, narcissistic. Even if you didn't come up with that stupid idea, anyone with any wisdom whatsoever would see how childish that is. So Timmy must be a Manchild.

Ok. Time to go to bed but hope to finish tomorow.

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| 3801 views | | 15 replies (last December 16, 2019) | Reply
Post ID: @OP+11qgmJFE

15 replies (most recent on top)

Money is a part of the power thirst - so greed, even if it's in a broad sense - is associated with power. Just because he gives to charity is in no wise evidence he is not greedy. It could be a completely selfish effort to portray himself in a good light that he believes helps protect his empire.. Anything that decimates the store environment for the employee destroys a business. If the employee atmosphere is bad, it's passed down to the customer. All these dumb cuts and wasteful spending on superficial branding - millions also spent on educational benefits that only 2500 ppl are taking advantage of...

What you need is more competitive pay vs your competitors and more appreciative, professional, less personally hostile management to get the better talent and keep them. Customers don't show for krojis... They shop for deals, friendly CS, fully stocked shelves and cleanliness..

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Post ID: @17wic+11qgmJFE

I am store level management and have questioned Rodney’s leadership for at least the last 3 years. This is the first I’ve heard someone else within the company say the same. I can’t give all the specifics mentioned above but I see a very different company than the one Dillon retired from. I don’t feel like he even knows where he is leading us. We have become reactionary rather than leading. We are sadly behind in so many areas.

Just for an example: I recently heard a statistic that by 2025 up to 80% of grocery shopping will be done online. We have a pretty good app that in many stores can not be accessed because the store doesn’t have WiFi. We tell customers to download coupons they can’t get to while in our stores but expect to be a serious player in the new world grocery order.

And that is just one example.

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Post ID: @Quvi+11qgmJFE

Well said. Sums up what many who have / had been around from the 80’s and 90’s think and feel. Rodney will have a difficult time spinning this fiasco to CNBC.... I shopping elsewhere as my own form of protest.

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Post ID: @2coo+11qgmJFE

How refreshing to hear someone tell it like it is from someone close to the action... such an eye opener!!! Couldn’t agree more about Dave Dillion... I was in salaried management store level during his last 5 years and met him twice on store walks... what I recall was he actually took the time to ask questions and listened to you!!! Thanks for the insight... feel free to tell more!!!

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Post ID: @1yup+11qgmJFE

As a Kroger employee for 30+ years, I am appalled this man (Rodney the CEO) is being paid close to 12 million a year !!! There isn't a human being on this earth that deserves that !!! A million dollars a month!!!! A 19% pay raise.......damn wish I could get a pay raise like that. And you don't think he is greedy !!!

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Post ID: @1bhk+11qgmJFE

The moderator doesn’t seem to understand that we weren’t naming non-public figures. Rodney has placed his God daughter into a executive leadership role.

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Post ID: @1kft+11qgmJFE

@rkj , don’t ask for personal info, naming non-public figures is not allowed here. Site admin will nuke the thread.

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Post ID: @1bih+11qgmJFE

Yes!!! You nailed it!! I would love to hear more about how GO hierarchy is and where we made additional mistakes in hiring and decision making .
Please continue to enlighten us!

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Post ID: @1hsv+11qgmJFE

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Post ID: @mps+11qgmJFE

Who is Rodney’s god daughter? I’m sure I know her.

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Post ID: @rkj+11qgmJFE

You are telling it like it is! This is why I retired. All divisions of Kroger are a mess!

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Post ID: @igs+11qgmJFE

Dave Dillon and Don Becker turned this company around from 2000 to 2010... Everything they accomplished has been thrown away.... They were leaders who truly cared about their people.

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Post ID: @ern+11qgmJFE

The KTV BS train needs to be derailed too! Total propaganda tool!

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Post ID: @qox+11qgmJFE

Being a recently retired mid level executive at GO. I could not agree with this more. You nailed it!

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Post ID: @lbk+11qgmJFE

Being a multi-decade employee (rising through the ranks) who is now at GO....you nailed it!

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Post ID: @hnv+11qgmJFE

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