• May 1, 2021

Five Essential Leadership Traits: Martha Stewart’s Story from Kmart to Macy’s

It wasn’t long ago that Martha Stewart Living Omnimedia (MSLO) seemed doomed. Kmart, its largest licensed household goods outlet, was in Chapter 11 and closing hundreds of stores. His magazine was being challenged by rival Rosie O’Donnell’s new upstart competitor. Major television stations were canceling their daily show and critics were saying the show would not end the season. The Securities and Exchange Commission ordered the leader of his company to resign. However, the most devastating thing is that Martha was going to jail.

With falling sales, disappearance of profits and falling stock prices, few gave the national diva’s business much chance of survival.

Fast forward to 2007. We no longer see a company on the brink of eradication. The revamped daily TV show is getting such respectable ratings and advertisers that it has been revamped through 2008. A second show, specializing in food, is seen on PBS and a radio show that debuted last week has been added. Its single magazine has grown into six trade magazines, each of which is among the best in its genres. In addition to the continuous line of Kmart products, MSLO has agreements to expand its product line to exclusive retailer Macy’s and artisanal marketer Michael’s. New ventures include furniture and flowers, and even Martha Stewart home developments.

Most important of all, the revenue of this now admired company increased by more than 50%.

The change

Ben Franklin once said, “What happens is not as important as how you react to what happens.” Despite the myriad of unfortunate events, Stewart continually looked to the future. He viewed the company as a thriving entity with tremendous growth and maintained a public image that lived up to his vision of success. Never pouting. Always smiling. Martha looked into the distant future, overlooking what she saw as temporary inconveniences.

Things began to change for Martha while she was in prison. He learned that Susan Lyne, head of then-decadent Disney / ABC Entertainment, had been fired by ABC’s top brass. Their main complaint about her was that she had attributed the network’s recovery to two shows that had not yet aired and in which they had little hope: “Lost” and “Desperate Housewives.”

During a visit to Martha in her West Virginia prison, the two became immediate friends. Martha admired Lyne’s 25-year career and decided she was the right person to lead the company into the future. Lyne took over as president of MSLO and would soon gain incredible recognition: Advertising Age would name her “Executive of the Year” and The Wall Street Journal would call her “the best woman to watch in American business.”

Five essential elements of leadership

Top business leaders like Martha Stewart are known for five essential qualities:

1. Pursue your purpose with passion. Anyone who knows Martha knows that MSLO is her true life purpose. You don’t take two breaths without thinking about your business.

2. Practice strong values. Not all aspects of a great leader are based on solid value, however all great leaders have one or more strong values ​​that they focus on. For Martha, her business is all about quality products for an improved lifestyle at a great price. No one can deny that these attributes drive your actions.

3. Lead with both your heart and your head. The rumors about Martha are right. For the most part, he sees people as a commodity. However, she shows a heart to help the people who work for her or with her to be successful. However, it is more of a team success than an individual success.

4. Establishing connected relationships. His relationship with Kmart symbolizes his vision for the association. When Kmart went bankrupt, Martha could easily have gone to another retailer with her products. She remained loyal and that loyalty is created by helping Kmart get out of Chapter 11.

5. Show self-discipline. Martha’s self-discipline is demonstrated by her unwavering focus on her products and consumer demand. Stewart spends little time on activities that are in some way unrelated to his MSLO business.

MSLO’s success offers a lesson for all business professionals. Whether leading a single-employee LLC or Fortune 500 company or planning for individual or departmental growth, the Five Essentials of Leadership provide a roadmap for the lifestyle and attitude that lead to success.

* “Five Essentials of Leadership” taken from Leadership in a Contemporary World, © MaxImpact, http://www.getmaximpact.com. (Used with permission).

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