Simple Models
Ready — James Cash Penney founded one of America’s iconic business chains: JCPenney. His business model was the Golden Rule: “Do unto others as you would have them do unto you.” When he opened his first store in 1902, he named it The Golden Rule Store.
Set —Unlike retailers of his time, he avoided haggling, instead offering fixed prices. Many of his business practices are common today but were creative for his time.
Shared ownership allowed store managers to become partners in the business, giving them a personal stake in its success. This was more than smart economics—it was empowerment.
Profit-sharing motivated managers to treat the business as their own. This led to higher productivity and a sense of loyalty among employees. His model encouraged personal investment in the company.
Customer satisfaction was a cornerstone of Penney’s approach. His stores were clean, well-organized, and designed to make shopping a pleasant experience.
Quality merchandise at fair prices fostered trust and loyalty that stretched across generations. He believed that long-term relationships were more valuable than short-term gains. He understood that success in business was never about the bottom line alone—it was about meeting people’s needs.
Employee development included ethics as well as training in sales. He wrote extensively on business ethics and leadership, believing that the soul of a successful business lay in the integrity of its people.
Grow! — J.C. Penney’s company thrived for decades because of these practices. While the retail world has changed dramatically, the principles he championed—honesty, service, and respect—remain timeless pillars of business success.
Two Questions
In what ways are you giving ownership to your people?
Are you developing your people’s character, as well as their skills?