Publications
Publications
- March 2008 (Revised March 2009)
- HBS Case Collection
The Home Depot, Inc.
Abstract
For its first 20 years, Home Depot was known for its entrepreneurial spirit and focus on customer service. Merchandising, purchasing, and store operations were all decentralized. When the company hit $45 billion in sales, many believed that a more disciplined approach to operations would be important for future growth. As a result, the company hired Bob Nardelli, a former GE executive, to lead the change. When Bob Nardelli became the Chairman and CEO in 2000, he centralized merchandising and purchasing and brought process discipline to store operations through using Six Sigma quality methodology. Although the changes led to higher profitability, the retailer's stock price remained unchanged. Many wondered if poor stock market performance was a reflection of the cultural change and declining customer service.
Keywords
Customer Focus and Relationships; Profit; Leading Change; Six Sigma; Service Operations; Business Processes; Organizational Change and Adaptation; Organizational Culture; Retail Industry
Citation
Ton, Zeynep, and Catherine Ross. "The Home Depot, Inc." Harvard Business School Case 608-093, March 2008. (Revised March 2009.)