1. Home Depot’s Blueprint for Culture Change
Harvard Business Review
By: Ram Charan

2. Robert Nardelli CEO of Home Depot – December 2000
Bernie Marcus and Arthur Blank Home Depot’s legendary cofounders
Goals:
Independence of stores
Take advantage of economies of scale
Inflexibility of company
Decentralized

3. Three part strategy
Enhance the core by improving the profitability of current and futures stores in existing markets
Extend the business by offering related services such as tool rental and home installation of Home Depot products
Expand the market, both geographically and by serving new kinds of customers

4. Tools for cultural change
To improve the collective ways in which people work together across the organization which supports the business model.
Metrics
Processes
Programs
Structures

5. Way’s to achieve strategy
Taking advantage of its growing scale
Centralize certain functions (purchasing) in order to leverage buying power
Functional, regional and store operations need to collaborate
Store environment needs re-evaluated

6. Metrics
Describes the values and makes clear what people will be accountable for.
Standardized the performance management process based upon quantitative criteria.
Three one-page documents

7. Processes

8. Programs
Set up five day forums which including district and store managers
Nearly 1,800 people
Small groups set up to invision where the company is going.
“This is what Bob and his team are trying to do”
Continued commitment has continued

9. Structure Centralize Purchasing “Super Saturday”
Get people affected by a change to help define the problem and design the solution.
Base your change on hard data

10. Home Depot Culture Today
Process
Hard Data
Accountability