The job of leading a corporate reinvention isn't an easy one, as evidenced by recent turnover at the top of two of Minnesota's biggest companies.
Supervalu ousted Craig Herkert as chief executive this weekend, turning over leadership to the firm's non-executive chairman. He joins Brian Dunn of Best Buy Co., who was sent packing over allegations of personal misconduct but who was also shadowed by questions about the company's direction and performance.
While these companies are in different industries, they are both in markets undergoing fundamental changes that require a corporate leader to do nothing less than reimagine the business -- and bring employees and other stakeholders along with him.
What Herkert and Dunn also share is that neither one took anything other than incremental action, even as the need for fundamental change became more and more apparent.
Herkert came to Supervalu in 2009 from Wal-Mart and inherited operational challenges, many of which had come in the 2006 Albertsons deal that added more than 1,100 stores. His initiatives -- such as a local fresh produce program -- may not have been inherently flawed, but they did not lead to improved results, as same-store sales declined.
Herkert told the Star Tribune less than two weeks ago that he had been given the resources and a timeline by the board to implement a new pricing strategy to blunt rivals. Clearly, there was not enough time to reach any sort of conclusion about the strategy, so the most likely explanation is that the board decided that Herkert's plan was too little and much too late. Either that, or they had lost confidence in him to implement it.
Dunn resigned in April amid an investigation into whether he had an inappropriate relationship with a younger female subordinate. While he had just announced a restructuring plan, its limited scope fell well short of what would be necessary to fix the company. "Showrooming," the practice of customers who treated Best Buy as a place to check out products but then bought cheaper from the likes of Amazon, is not really news in 2012.
For shareholders, that was probably far more worrisome than Dunn's firing off 149 text messages to his young friend while on an overseas trip.