LEADERSHIP TRANSITION
Taking the reins of Toys “R” Us in July 2015, new CEO and chairman David Brandon recognized one of the biggest challenges he faced would be inspiring others to execute his vision of what the company could be. The retailer had gone through a decade of leadership changes, and Brandon was well aware that frequent executive changes, strategic shifts and cost-cutting can cause stress and a lack of trust. He sought to allay any such concerns that might be festering in an organization of 66,000 employees by highlighting a track record that reflects a commitment to the companies where he served as CEO for the past 23 years.
“My message was, ‘I’m not new to this CEO world. My record is easy to check out so don’t believe what I say, believe what I do.’ People have been open, fair and receptive to that message,” Brandon said.
Brandon’s “record” is interesting to say the least. He most recently spent five years as director of intercollegiate athletics at his alma mater, the University of Michigan, which he attended on a football scholarship and helped the team win three Big Ten championships.
Prior to Michigan, Brandon was chairman and CEO of Domino’s Pizza for 11 years, and helped lead the chain to the largest IPO in restaurant history. Before Domino’s, he served as president and CEO of Valassis Communications (which he also took public). He also spent five years with Procter & Gamble.
Brandon concedes he has never run a classic retailer, but the retail industry is not unfamiliar territory to him. Brandon has served on the boards of Meijer and TJX Companies, and he continues to serve as chairman of Domino’s.
As much as anything, Branden wants to instill a sense of energy and confidence among Toys “R” Us employees. They are tired, he said, of hearing about “all the things we are doing wrong and why we are behind.”
To improve the company’s prospects, Brandon said he spent his first four months on the job listening, learning, spending a lot of time in stores and challenging the status quo.
“I want to make sure we are not just doing the same thing we’ve always done and trying to get a different result,” he added.