Managers – Are you paying enough attention? 4

Lessons from the Worst-Performing Companies in America
What’s caused U.S. firms to lose the most shareholder value in the last 10 years? A new Booz study — actually, a repeat of one it did in 2004 — once again came up with the same result

As I read this article, my mind flashed back to my years with Best Products Co. Inc. I had joined them right out of college. I was hired as an entry level Department Manager, but within a year I was a Store Manager for the company. I managed seven stores in as many years, moving frequently for the company.

After arriving in Hampton, Virginia, there was talk among our Senior VP’s of my taking on a District Manager role. Life was great and the possibilities limit-less. Then we bought Modern Merchandising.

We went from a one billion dollar company to a two billion dollar company over night. Everyone was very excited. In fact, we even had T-shirts made.  And our Senior Management spent the next twelve months assimilating the acquisition into the company.

We changed the names on our buildings; out with Dolgins, Miller Sales and the rest, in with the Best Products logo’s. We consolidated distribution centers, creating new efficiencies and re-aligned regional support offices.

The entire process took 12 months. And then we were ready.

But in the past twelve months, retail customers had gone off in a new direction. We had been so busy focusing on the acquisition and re-structuring that no one noticed our customer base was  leaving.

When I saw the hand writing on the wall, I left , purchasing the vending company I would sell two years later.

Every time I think things are running really well in my business I have a  flash back to my Best Products days. The lesson I learned then has stuck with me for over 25 years. So please, pay attention to your business.