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Thursday, August 31, 2006

Home Depot Fails to Understand Employees are Also Customers

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Home Depot CEO forgets that employees are also buying customers. What happens when you eliminate the people who buy your own products? Read this bullshit memo and consider if CEO Bob Nardelli have a great Christmas or not?

The complete memo follows:
INTERNAL ANNOUNCEMENT
Date: August 30, 2006
To: All Associates
From: Bob Nardelli, Chairman, President & CEO


RE: SSC Organizational Announcement

"As you all know, we recently announced an accelerated investment of $350 million in the back half of the year to improve the customer experience in our stores. This effort includes the implementation of a 100 bay merchandising reset in 540 of our stores as well as completion of our self-checkout installation in all stores by year end and additional expenditures in store modernization. Perhaps most importantly, we will continue to hire store associates as we increase our hours by 5.5 million during the second half of the year to enhance the shopping experience.

"During the past two weeks, we have received a tremendous amount of positive feedback both internally and externally regarding this decision. It is clear that our focus on improving the customer experience is a priority as we enter a time when there are mixed macro-economic signals in front of us. We are responding very aggressively in light of the uncertainty of the economic environment, and reinvesting to better serve our customers and gain marketshare.

"In order to accomplish our objectives, we will need to reallocate our resources, and reprioritize, reduce, and, in certain cases, eliminate some initiatives managed from the Store Support Center. As a result of this shift, we will reduce our store support center staff by approximately 300 associates.

"This was a tough, albeit necessary, decision to make as we look at our business with a long-term perspective. Leaders throughout the company are meeting with their teams today to review the decisions and discuss transition plans for impacted associates.
"Most associates affected by these changes will continue to work for up to two weeks, and all affected associates will be compensated for the next 60 days from today as part of the transition. The Company will be providing impacted associates with job placement assistance, which includes enrollment in a market-readiness outplacement program. In addition, the Company will host a job fair with internal opportunities, and work with a career transition company to host a job fair of national and regional employers designed specifically for these affected associates. We will make every effort to place impacted associates in jobs across the organization, including field positions.

"If you have any additional questions, please do not hesitate to contact your business leader. We appreciate your support as the company continues to evolve to meet the changing needs of our customers."