A retailer was losing ground to competitors. Discounters were undercutting its prices, and specialty stores offered better selections. Market share, foot traffic, and sales were declining.
Management told local store managers to run promotions to appeal to customers. Local managers could pick which products to feature, arrange discounts, and revamp the look and feel of store displays. But the initiative failed.
The company called in BCG to help address the problems. BCG applied the four-step Smart Simplicity approach.
Myth Power is an attribute of position.
Reporting lines are merely formal conventions without any automatic effect.
Myth Authority is equivalent to power.
Authority provides the legitimacy to exercise power; it is not power itself.
Myth Power is an attribute of individuals and their leadership style.
Personal attributes and style may be ways to exercise power, but they don’t determine whether an individual has power in the first place.