Leadership change: M&S CEO presents strategy

When a new CEO arrives it is always interesting to see how he or she starts leading change and transformation. Often the need for change is a reason why there is a change in a company’s leadership.

Excluding founders, only 28 CEOs of companies in the Standard & Poor's 500 stock index have held office more than 15 years, according to an analysis by recruiters Spencer Stuart for The Wall Street Journal. The typical S&P 500 CEO has held the title about 6.6 years. Other research, from Forbes, shows that the CEO is further declining to even 3.5 years.

On the other side there are also CEO’s with exceptional tenure. Recognized as one of the greatest CEO’s of recent decades, Jack Welch, remained at the top of General Electric for 20 years. Many positive examples include company founders who managed to grow and adapt as their company evolved. These include Michael Dell and Bill Gates (both of whom have relinquished the CEO title but remain chairman of the board).

Dutchman Marc Bolland has recently become CEO of “M&S”, as the British call their food and clothing retailer Marks and Spencer. Marc Bolland worked most of his life at beer giant Heineken. He traveled the world and got interested in local food and delicacies. In the past few years he was very successful as CEO with the fourth largest supermarket company in the UK Morrisons.

This week Mr. Bolland presented his strategy for M&S.

With respect to his predecessor he announced “evolution” rather than “revolution”. M&S customers still have difficulty finding their way in the shops. The range of products is confusing and not fully focused. He does not understand why M&S sells consumer electronics. Further the new CEO wants to expand into the fast growing countries in Asia, but also in the main cities in Western-Europe there is opportunity. If the proper real estate becomes available.

Finally Mr. Bolland has put a stamp on the company through changes in marketing. “Only at” will be added to “Your M&S” that was initiated by predecessor Stuart Rose. “Only at” will be the M&S brand for specialty food products from all over the world. M&S will create exclusive supply relationships with these often small factories around the world. Strengthening the brand is key for Marc Bolland with inspiration from his travels at Heineken.