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Guest Column: Dysfunctional Organizations Do Dysfunctional Things
From:
Summit Consulting Group, Inc. -- Alan Weiss, Ph.D. Summit Consulting Group, Inc. -- Alan Weiss, Ph.D.
For Immediate Release:
Dateline: East Greenwich, RI
Wednesday, November 12, 2025

 

by Raj Dhiman

Not long ago, I barely noticed pro football. But I was always curious about why fans were so wildly obsessed with the game.

Long story short, I ended up a fan. Not from watching games, but from digging into the business side of the sport. Turns out, many lessons from the business of pro football apply to the work that I do.

One example: bad front-office decisions manifesting themselves on the field and derailing careers. The New York Jets are the template with meddling ownership, chronic underperformance, and a quarterback graveyard (ask Sam Darnold). The Cleveland Browns aren’t any better. They carried four QBs into the preseason and still aren’t close to winning. Meanwhile, former Browns QB Baker Mayfield is in Tampa Bay playing like a fringe MVP candidate.

I bring this up because Mike Florio over at ProFootballTalk has a line that fits perfectly:

Dysfunctional organizations do dysfunctional things.

And that line hits like a bolt of lightning, especially when I look at retail right now.

Consider these examples:

  1. Kohl’s. A long-running mess. Most recently, now-former CEO Ashley Buchanan was shown the door after an investigation into an undisclosed romantic relationship tied to a vendor deal he forced the company in to. Meanwhile, the board chair, Michael Bender, reportedly hoards information from others and dictates decisions.

  2. Target. The current poster child of dysfunction. The corporate office appears to be wildly detached from the reality of the shop floor. Outgoing CEO Brian Cornell is set to keep a firm grip as he moves to chair the board. Off-the-record discussions with current and former employees suggest that lengthy executive tenures have hardened the place into a sealed echo chamber.

  3. Saks. This retailer has developed a reputation for not paying vendors. Ironically, these are the very people who supply its inventory. The real estate seems to matter more than the retail operation and the decision making is consistent with that thinking. The demise of the Hudson’s Bay Company in Canada is collateral damage of the dysfunction.

Here is the thing: at some point, the dysfunction in the corporate office will eventually manifest itself in front of the customer. For retail, the immediate, tell-tale sign of dysfunction is a sloppy shop floor. Stores have too much of the wrong inventory while not enough of the right stuff. Also, it would appear that whatever inventory is present is haphazardly thrown onto the shelves. Employee engagement dwindles and it shows in the interactions with customers. Moreover, the merchandising strategy does not match with in store execution. This is a particular sore spot because we are finding that the gap between strategy and execution is growing.

And all of the above apply to the cases of Kohl’s, Target, and Saks. That kind of decay at the store level does not happen overnight. Rather, it is the result of a trickle-down effect from the top. In fact, when dealing with day-to-day dysfunction, retail executives fail to make the time for one of their most important tasks which is spending time on the front lines.

So, should we be shocked when these companies struggle to sell at full price, fail at delivering exceptional service or attract persistent negative press?

Hardly.

They are not the first in the retail category to be dysfunctional and show it (J.C. Penney and Sears come to mind) and will not be the last. And as you read this, you can probably name a few more examples without much effort.

It’s fair to say that we are all a bit dysfunctional. The difference is whether you acknowledge it and keep it in check. Many organizations lack that self-awareness. No surprise, the winning ones do not.

That said, dysfunction has its uses. Because I would absolutely watch a reality show called “Corporate Dysfunction” with a permanent cast of characters that includes: Kohl’s, Target, and Saks.

Guest appearances by the Jets and the Browns are a must.

Copyright 2025 Raj Dhiman

Raj Dhiman, PhD is President of Retail Strategy Group where he works with retailers and brands to drive profitability and improve organization effectiveness. He is a co-author of the upcoming book The Material Life: Process Innovation for Retailers and Brands (Routledge 2025). Email Raj at raj@retailstrategygroup.com.

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