It wasn’t long ago that Martha Stewart Living Omnimedia (MSLO) seemed doomed. Kmart, its largest outlet for licensed home products, was in Chapter 11 and closing hundreds of stores. Her magazine was being challenged by her rival’s new upstart competitor Rosie O’Donnell. Major television stations were canceling her daily show and critics said the show would not finish the season. The leader of his company was ordered to resign by the Securities and Exchange Commission. What was most devastating, however, was that Martha was on her way to jail.
With sales plummeting, profits disappearing and share prices plummeting, few gave the national diva’s business much chance for 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 was renewed through 2008. A second show, specializing in food, is seen on PBS and a radio show was added that debuted last week. His one magazine has grown to six specialist magazines, each among the best in their genres. In addition to Kmart’s continuing product line, MSLO has agreements to expand its product line to luxury retailer Macy’s and craft merchandiser Michael’s. New businesses include furniture and flowers, and even Martha Stewart housing 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 multitude of unfortunate events, Stewart continually looked to the future. He saw the company as a driving force 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, ignoring what she saw as temporary inconveniences.
Things began to change for Martha while she was in prison. She learned that Susan Lyne, head of Disney/ABC Entertainment, then in crisis, had been fired by ABC bosses. Her main complaint about her was that she had attributed the network’s recovery to two shows that had yet to air and that they had little hope for: “Lost” and “Desperate Housewives.”
During a visit to Martha at her West Virginia prison, the two became immediate friends. Martha admired Lyne’s 25-year work history and decided that she was the right person to lead the company into the future. Lyne took over as president of the 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 corporate America.”
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. They don’t take two breaths without thinking about her business.
2. Practice strong values. Not every aspect of a great leader is based on a strong 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 a better lifestyle at a great price. No one can deny that these attributes drive their actions.
3. Lead with your heart as well as your head. The rumors about Martha are right. In most of it, she sees people as a commodity. However, she demonstrates a heart to help the people who work for or with her succeed. However, it is more of a team success than an individual success.
4. Connected relationships established. His relationship with Kmart symbolizes his vision of partnership. When Kmart filed for bankruptcy, 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. Demonstrate 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 not related in some way to her MSLO business.
The success of the MSLO provides a lesson for all business professionals. Whether leading a single-employee Fortune 500 company or LLC or planning 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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