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Hubert Joly and Best Buy

Hubert Joly is a French entrepreneur and Harvard Business School professor. From 2012 to 2019, he served as CEO of Best Buy, a consumer electronics retailer, and was Chairman of its Board of Directors until June 2020. His leadership raised the value of Best Buy's stock from $18 when he took office to more than $65 when he stepped down, a jump of 263%.

When Joly took over as CEO, Best Buy was struggling. The former CEO had been fired after an ethical scandal, and the company's shares were in decline, facing fierce competition from e-commerce platforms like Amazon.

In an attempt to stabilize the company, the Board of Directors tasked him with formulating a strategy to stop the decline in revenues and improve operational performance. Joly emphasizes a change in strategic approach, stating that the traditional top-down strategy formulation fails to motivate people.

In his book, The Heart of Business, released in May 2021, Joly outlines the principles of leadership for the coming era of capitalism. He identifies five key components that contributed to his leadership model for Best Buy:

1. Delivering Dreams

Joly stresses the importance of aligning personal and corporate goals to motivate employees. Leaders should:

• Clarify that people always come first.
• Explore what drives their team members.
• Capture important moments for employees.
• Share stories and encourage role models.
• Communicate the company's goals in a humane, purposeful manner.
• Spread meanings and goals throughout the organization.

2. Develop Human Communication

To foster creativity and innovation, employees must feel valued and appreciated. This involves creating a safe environment that promotes trust and teamwork.

3. Enhance Employee Independence

Joly believes that employee autonomy is essential for fostering creativity. Key strategies include:

• Pushing decisions down the hierarchy.
• Encouraging a collaborative sharing process.
• Adopting agile working methods.

4. Increased Mastery

Focusing on employee growth and mastery can improve performance. Leaders should:

• Emphasize effort over results.
• Support individual development.
• Re-evaluate and improve performance continuously.
• Treat learning as a lifelong journey.
• Allow room for failure.

5. Promote the Growth Environment

Creating a culture of growth is crucial. Joly states, “Business growth fosters individual growth and motivation, which in turn fuels innovation and expansion.”

By nurturing a positive and motivated workplace, leaders can foster an environment that encourages innovation and productivity.