Robert Nardelli
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Robert L. Nardelli (born May 17, 1948, in Old Forge, Pennsylvania) is the former Chairman, President, and CEO of The Home Depot, serving from December 2000 to January 2007. Prior to that, he was one of the top four executives at General Electric.
Nardelli received his Bachelor of Science in business from Western Illinois University and earned an MBA from University of Louisville.
He joined General Electric in 1971 as a entry-level manufacturing engineer. By 1995, he had risen to President and CEO of GE Power Systems, also having the title of GE senior vice president. Nardelli was often known as "Little Jack", after his mentor Jack Welch, whom Nardelli had ambitions to succeed as CEO of GE.
When Jack Welch retired as Chairman and CEO of General Electric, there was a lengthy and well-publicized succession planning saga. Nardelli competed with James McNerney and Jeff Immelt to succeed Welch. With Immelt winning the three-way race, Nardelli and McNerney left GE.
Nardelli was quickly hired as CEO of The Home Depot in December 2000 despite having no retail experience. Using the "Six Sigma" management strategy from GE, he dramatically overhauled the company and replaced its freewheeling entrepreneurial culture. He changed the decentralized management structure, by eliminating and consolidating division executives. He also installed processes and streamlined operations, most notably implementing a computerized automated inventory system and centralizing supply orders at the Atlanta headquarters. Nardelli was credited with doubling the sales of the chain and improving its competitive position. Revenue increased from $45.7 billion in 2000 to $81.5 billion in 2005, while profit rose from $2.6 billion to $5.8 billion.
However, the company's stagnating share price, his results-driven management style which turned off both employees and customers, and his compensation eventually earned the ire of investors. Despite having received the solid support of Home Depot's board of directors over the past few years, Nardelli abruptly resigned on January 3, 2007 by mutual agreement with the company. His severance package was estimated at $210 million. He was succeeded by Home Depot vice chairman and executive vice president Frank Blake. Blake had served as Nardelli's deputy at both GE Power Systems and Home Depot.
