The HD Roller Coaster: Nardelli’s Sudden Exit

Hold on tight—things just took a sharp turn with Bob Nardelli’s unexpected resignation as Chairman and CEO of Home Depot last week. This move seems to defy any real business logic, so it likely comes down to the powerful personalities at play. It’s tough to see how the “new guy” will fit in the long run…

A Look Back at Nardelli’s Time at Home Depot

Here’s an excerpt from last week’s coverage in the Atlanta Journal & Constitution (1/4/07):

Management experts suggest that Nardelli’s intense, driven personality ultimately overshadowed his achievements at Home Depot. Under his leadership, sales doubled to over $81.5 billion, and earnings per share soared by more than 140%.

Personality Over Performance?

“At some point, he became the story himself, and there’s a well-known rule in crisis management: You can’t let yourself become the story,” said Jeremy Garlington, an executive coach based in Atlanta and managing partner of Point of View LLC.

“Despite record profits and revenues under Nardelli, the stock price remained stagnant. From a business perspective, that doesn’t make sense… but in the end, business often boils down to personalities and relationships rather than just the numbers.”