James Rhee, former CEO of Ashley Stewart, professor, and author of 'Red Helicopter,' dives into the art of business resilience. He shares the unexpected turnaround of Ashley Stewart, emphasizing the balance between kindness and strategic growth. Rhee redefines accounting concepts, suggesting that liabilities can transform into assets through solid community relationships. He also explores the importance of aligning personal values with corporate culture, advocating for kindness and innovative compensation as keys to empowering employees and driving business success.
Kindness is essential for effective corporate leadership, emphasizing empathy and honesty in decision-making.
Redefining assets and liabilities challenges traditional accounting principles, highlighting the need for a 'lemonade stand economics' approach.
Deep dives
Challenging Conventional Leadership Norms with Kindness and Math
The podcast episode delves into James Reid's new book, 'Red Helicopter', which advocates for leading change through kindness and mathematical honesty. Reid, a former CEO, shares lessons learned from his time at Ashley Stewart, focusing on the importance of kindness in corporate leadership. He emphasizes the need for truth-seeking and kindness in navigating challenging business situations, highlighting the power of empathy and honesty in decision-making.
Redefining Assets and Liabilities in Business Operations
Reid discusses the paradigm shift in rethinking tangible and intangible assets at Ashley Stewart. By recategorizing assets and liabilities, Reid challenges traditional accounting principles, emphasizing a 'lemonade stand economics' approach. He illustrates how reevaluating inventory as a liability instead of an asset boosted asset productivity. Additionally, he highlights the significance of treating accounts payable as a measure of vendor trust to foster cooperative relationships.
Fostering Agency and Kindness in Corporate Culture
Reid promotes the value of agency and kindness in fostering a positive corporate culture. He emphasizes the importance of defining and rewarding agency in decision-making processes and encourages a meritocratic approach to rewarding root cause improvements. By redefining goodwill in a real-world context and aligning it with accounting practices, Reid advocates for a corporate environment that values honesty, kindness, and meaningful contributions from all stakeholders.
James Rhee is the former CEO of Ashley Stewart, a professor, entrepreneur, and the author of “red helicopter―a parable for our times: lead change with kindness (plus a little math).” Mary Long caught up with Rhee for a conversation about:
- An unlikely turnaround at a retailer serving plus sized, moderate income black women.
- Being kind versus being nice.
- When liabilities can become assets and vice versa.
- Real world goodwill versus the accounting version.