Pick n Pay has taken centre stage with a performance that’s been less than stellar. At the helm, boss Sean Summers has been orchestrating a turnaround plan that’s as ambitious as it is critical.
Summers, whose return to the company was done with a flourish in 2023, has crafted a strategy that could very well be his magnum opus. Yet the success of such a strategic play hinges not on the slide presentations but on the one who wields the baton. The search for a new CEO isn’t just a subplot; it’s the crescendo this narrative is building towards.
The successor’s absence, assuming Summers and the board will search far and wide, from the strategic planning phase could unravel revival efforts, leaving the company in a precarious position.
Summers, who spent more than decade in his first stint at Pick n Pay, has become a well-established and familiar presence in the company. His experience and understanding of the company’s intricacies are invaluable. As Summers’ contract aligns with the year timeline for the turnaround plan, the ticking clock underscores the urgency of finding a successor who can carry the torch without dropping it.
The quest undertaken by the board and Summers is not for the faint-hearted. They must seek a leader who cannot only navigate the fiercely competitive landscape of retail but also resonate with Summers’ vision — a vision that has been meticulously mapped out over the past seven months. The new CEO must be more than a figurehead; they must be a keystone, the one who can bridge the gap between strategy and execution without missing a beat.
Yet here lies the conundrum: how can one ensure continuity of a plan without the involvement of its future champion? It’s like asking someone to finish a puzzle without showing them a picture on the box. The incoming CEO must not only inherit Summers’ blueprint but also be an architect of its evolution. They must be woven into the strategic fabric lest they unwind the threads of the turnaround plan upon their arrival.
What’s more, the new CEO will inherit a company at a crossroads. With the Ackerman family relinquishing their majority stake and the company tapping shareholders for R4bn cash, Pick n Pay is undergoing a transformation. The incoming leader must navigate these changes while maintaining the momentum of the turnaround strategy.
Some might argue that bringing in a new CEO after the strategic plan has been mapped out can provide a fresh perspective — a fresh pair of eyes to identify potential issues and opportunities that may not have been apparent to Summers. And admittedly, if the new CEO is involved in the planning process, they might be biased towards strategies they have developed even if those strategies aren’t working.
Still, these arguments are outweighed by the opportunities of involving the new CEO in the evolution of the strategy. It’s about ownership. A leader who has had a hand in shaping the plan will be more committed to its success. They will have a personal stake in the outcome, making them more likely to push through challenges and resist the temptation to revert to the old ways when faced with obstacles.
If Absa’s dramatic parting of the ways with Daniel Mminele in 2021 after only 16 months at the helm of the bank is anything to go by, bringing in a CEO after the strategy has been set in stone is more than a theoretical risk. The former Reserve Bank deputy governor’s exit was down to clashes with his executive committee over the strategic direction of the bank.
Mminele was brought in after his predecessor, Maria Ramos, and the executive team that now includes current Absa boss Arrie Rautenbach had conceptualised and begun to implement the growth blueprint. On his arrival, he tried to make changes to the plan and stamp his authority, putting himself on a collision course with the team and giving us a real-world example of the risk associated with appointing a new CEO after a company’s strategy has already been established.
The success of Pick n Pay’s strategic plan rests not on the paper it is printed on, but on the shoulders of the one who will carry it forward.
The new CEO must be part of the plan from its inception, ensuring a seamless transition and the plan's integrity. Anything less would see Summers’ efforts unravel — and with them the future of Pick n Pay. The clock is ticking; the stakes are high. Pick n Pay’s revival hinges on the next move. Choose wisely.
• Motsoeneng is Business Day deputy editor
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.