Effectiveness of culture change initiatives instituted at JCP:I would like to analyze effectiveness of initiatives and culture change strategy using balance score card. Three goals mention in question are highlighted under objectives.CUSTOMER PERSPECTIVE: Ullman said that the associates are the first customers we sell. If it doesnt ring true to them, its impossible to communicate and inspire the customer

Strategic objectivesPerformance MeasuresResult

ObjectivesActionsMeasures

1. To build a customer-focused culture at JCP1. focus on involving the employees in making an emotional connection with the customersCustomer FeedbackPositive feedback through increased Turnover at all stores

2. In early 2007, JCP opted for a new brand positioning, Every Day Matters, to spur growth by forming Deeper, Emotionally-Driven Relationships with customers.Customer FeedbackPositive feedback through increased Turnover at all stores

2. To change customers perceptions about JCP1. Rewarding performance, rather than activitiesCustomer FeedbackPositive feedback through increased Turnover at all stores

3. Culture change to result in competitive advantage1. Motivated employees shared the companys vision and served the customers betterCustomer FeedbackPositive feedback through increased Turnover at all stores

FINANCIAL PERSPECTIVE: Ullman thought that there is a correlation between engaged associates and store profitability. He associated attrition with cost.

Strategic objectivesPerformance MeasuresResult

ObjectivesActionsMeasures

1. To make JCP a great place to work in and reduce turnover of employees1. fixing a monetary value on employee turnover.Reduced employee turnover to improve bottom lineThe impact on the bottom line was visible as JCP posted its 15th consecutive quarter of sales gains at the end of fiscal year 2006. (loss of US$400 million in 2005 on account of attrition)Its share prices too showed significant growthcompany could strengthen its position further by reducing the turnoverAs far as the bottom line was concerned, operating profit for the fiscal year 2005 was US$1.6 billion, representing a 22.5 percent increase over fiscal year 2004. JCPs positive cash flow exceeded US$700 million and it also opened 18 new stores, the highest number of new stores in a year in close to a decade.In fiscal year 2006, JCPs operating profit increased by a further 17.8 percent to US$1.92 billion

2. Attracting new Talent from outside1. Providing competitive compensationNew talent attractedBy 2006, JCP was able to attract enough talent from the best professional schools such as the Fashion Institute of Technology and Texas A&Ms Center for Retailing Studies (A&M). A number of students had shown an interest in working for JCP. In 2007, JCP planned to hire 2000 students from A&M, which was double the number it had recruited in 2006. Analysts too agreed that JCP was able to attract higher quality students

3. Making best place to worka. To address managers by first names and not formally. Campaign called Just call me Mike!b. Relaxed dress codec. Allow to decorate cubiclesd. Disbanding Office Policee. Employees at the corporate office could take the afternoons off on 10 Fridays in a year, provided they worked one hour extra from Monday to Thursday, after getting it cleared from their immediate superiorAES scoreJCPs second Associate Engagement Survey (AES) in 2006 revealed that 73 percent of JCPs employees were engaged as compared to 67 percent in the 2005

INTERNAL PERSPECTIVE

Strategic objectivesPerformance MeasuresResult

ObjectivesActionsMeasures

1. Setting up a more democratic and inclusive climateCeremony for loyal employeesAt this ceremony, Penney had emphasized The Penney Idea the motto of JCP also known as HCSC, which stood for Honor, Confidence, Service, Cooperation. He used to emphasize the importance of the need for values such as being agreeable, moral leadership, and thriftiness, and the need for JCP employees to conduct themselves in a particular way both on the job and at home. Motivation levelsEmployees were motivated and JCP became one of the best places to work for

1.Emphasizing the importance of the employees to the organization1. JCP also decided to replace the various art works on its walls with photos of its employees and other art related to the companyMotivation levelsEmployees were motivated and JCP became one of the best places to work for

2. The employees were provided with new security ID badges. The badges laid emphasis on the first names of the employees, with bigger letters being used for themMotivation levelsEmployees were motivated and JCP became one of the best places to work for

LEARNING & GROWTH PERSPECTIVE

Strategic objectivesPerformance MeasuresResult

ObjectivesActionsMeasures

1. Increasing the effectiveness of the company's coaching program1. Winning together principles WTP. Updated moral code for employeesEmployees to learn the companys point of view rather than someone elses.The key values and focus of JCP were internalized by the trainees as these messages were repeatedly reinforced by different top executives. This helped the trainees develop a conviction regarding the messages, leading to these messages percolating down the line.This ultimately resulted in customer satisfaction and repeated customer

2. It invested heavily in corporate coaching initiatives and setting in place a well-oiled coaching framework throughout the organization

3. JCP started identifying high-potential employees, called hypos in JCP parlance. These employees were sent to the Retail Academy, which was run by Hicks.

4. Leadership conference for store managers and describing Store managers as CEOs of storeEmployees had to feel that they could build a career in the company.Attrition reduced