There is a saying, “An unaimed arrow never misses its mark.” With today’s modern business practices, it’s difficult to fathom that any corporation or business has an unaimed arrow in their quiver. After all, this is the era of lazer-like focus. This is the era of strategy & relentless execution. This is the era where companies are expected to deliver shareholder value, and everyone knows it. However, there are of course - exceptions. Exceptions like appear to defy logic and many of the principles essential to leading and navigating a business in the world marketplace.
Such appears to be the case of Sara Lee. A conglomerate based in Chicago that has struggled for at least a decade. A recent article on Bloomberg titled, Sara Lee Disarray Costs Shareholders About $1 Billion: Real M&A is interesting. The article discusses how Sara Lee has been a company that has talked about “creating value” over the past 10 years, yet has been on a consistent journey of “destroying value.” Now Sara Lee has been on the sales block for several months now (and been divesting companies for a decade), with several offers coming up short. the article goes on to state:
Sara Lee Corp.’s managers, who failed to boost the company’s stock buying and selling $12 billion in assets in the past decade, destroyed shareholder value by passing up three chances to sell itself in the last year. ..
What is the cost of just doing something, which some might say has been Sara Lee’s mantra for the past decade?
Sara Lee has been a company that talks about delivering shareholder value, yet has consistently come up short. If their arrows in the quiver were aimed, well they either missed their mark, or they were aimed at the wrong target. In the end, Sara Lee is a company that lost their success momentum and success formula. In this arena, everything goes bad from increased turnover, depressed worker productivity, short term thinking and others.
Today, Sara Lee’s arrow is aimed in one direction - R.I.P. And even that is proving to be difficult.
I grew up on a farm when John Deere A’s were still in use. The John Deere A (and others in the same series) were a 2-cylinder tractor that incorporated a large cast iron flywheel in its design. It was the flywheel that smoothed out the low-revving engine and gave the tractor its remarkable pulling capacity. They were referred to as Johnnie Popps, since they emitted a pop-pop-pop noise that was very distinctive, and could be heard from a distance.