Home Depot Nardelli's Success

1. In my opinion, Nardelli’s programs were failed in changing operation of Home Depot to a more effective one. There are two reasons that Nardelli was not more successful. First, most employees did not want to an outsider to “GE-ize their company and culture.” Employees in Home Depot did not trust their new manager, which led absent support when Nardelli carried out the new process. The second reason was also the more important reason. Nardelli used the concept learned from industrial businesses to conduct the customer businesses. Since Nardelli wanted to conduct Home Depot in his own approach, he failed to recognize the importance of front-line staff, which leaded his fail in conducting the retailing business. The thing he should have done was improve the circulation of information between the different stores or within different level. Only in this way, he could solve the problem that Home Depot faced at that time—too large to be profitable. The worst thing he should not have done was to get rid of many old employees and replaced the full timers with part-time staff. This decline in the quality of customer service and customer satisfaction strongly hurt the customer orientated business.
2.
Nardelli provided a three-part strategy including improving Home Depot’s profit, and expanding the business and market. Crow focused on the other three priorities which would revive employees’ sense of ownership, foster their product knowledge, and boost their morale. The greatest difference was that Nardelli’s initiatives programs were concentrated on increasing profit and expansion, while Tim Crow’s programs were concentrated on increasing employees. Nardelli’s action decreased employees’ satisfaction and loyalty, which ruined Home Depot’s strong customer service culture. Tim Crow’s programs increased employees’ loyalty and revived Home Depot’s organizational