Michelle Gass, Gene Lee, and Jide Zeitlin

Leadership Responses to Social Justice and Internal Communication

• G. Day Zeitlin (Tapestry/Coach, Kate Spade, Stuart Weitzman) sent a letter to 25,000 employees emphasizing authenticity and vulnerability during the George Floyd protests.
  • The message explicitly stated that corporate assets like windows and handbags are replaceable, whereas Black lives lost to police violence (citing George Floyd, Ahmaud Arbery, Breonna Taylor, etc.) are irreplaceable.
  • Zeitlin aimed to model top-down vulnerability to encourage broader employee conversations and processing of events, rather than adhering to a neutral corporate stance.
• Michelle Gass (Kohl's) pivoted her weekly Monday video updates from COVID-19 updates to social justice issues.
  • Kohl's employs approximately 100,000 associates; Gass admitted the company is "not doing enough" on diversity and inclusion despite long-standing values.
  • Kohl's leadership is conducting listening sessions with African-American associates, including a scheduled trip to Minneapolis.
• Gene Lee (Darden/Olive Garden, Longhorn Steakhouse) emphasized that CEO statements are only the beginning of a larger operational challenge.
  • Darden manages a diverse workforce of 180,000 people across 1,800 distinct restaurant locations with unique local dynamics.
  • Lee prioritized utilizing the Employee Assistance Program and adapting diversity training tools to fit individual environments rather than a one-size-fits-all approach.

Strategic Insights on Diversity, Culture, and Operations

• Zeitlin argued that diversity efforts must go beyond statistics to address organizational culture.
  • He noted that companies often fail by focusing on demographic numbers while neglecting the cultural ability for employees to "show up as themselves."
  • The goal is to increase diversity at all organizational levels, not just entry positions, to improve engagement and problem-solving.
• Gass reinforced the link between diversity, inclusivity, and the company purpose of empowering families, asserting that vulnerability is the first stage of driving systemic change.
• Lee highlighted that leadership must ensure frontline managers can provide the right environments for diverse workforces to thrive locally.

Industry Adaptations: Restaurant Sector (Darden)

• The pandemic demonstrated the sector's flexibility, with teams implementing off-premise operational processes in under one week.
• Customer loyalty proved critical, with guests providing financial support to ensure employees were paid during closures.
• Lee identifies "people matter" as the primary takeaway, citing strong employee connectivity as the reason Darden could ramp up operations faster than competitors upon reopening.
• Digital and off-premise trends are accelerating, but Lee warns that a thriving off-premise business requires a thriving on-premise full-service foundation.
  • Darden predicts a trend of guests ordering food online before arriving at the restaurant within the next three to five years.
• Darden explicitly rejects third-party delivery aggregators due to low satisfaction regarding on-time delivery and order accuracy.
  • Lee advises businesses to build direct, frictionless pickup experiences to avoid the high costs and brand risks associated with aggregators.

Industry Adaptations: Retail Sector (Kohl's)

• Kohl's closed 90% of its stores for seven weeks starting March 20, shifting focus to financial viability and safety.
  • During the closure, the remaining 25% of operations (digital and curbside) saw a 90% year-over-year increase in May.
• Current recovery status shows 90% of stores reopened with new safety protocols, including masks and plexiglass.
• Gass identifies four accelerated trends shaping the "new normal":
  • Digital Adoption: Customers are becoming significantly more comfortable shopping through multiple channels.
  • Trust: Trust in brands has risen as consumers gravitate toward companies they believe in during times of uncertainty.
  • Value: An increased focus on economic value and simpler living.
  • Brick-and-Mortar Experience: Physical stores must offer higher standards for cleanliness and unique in-store experiences (entertainment, discovery) to justify the visit compared to online alternatives.

Reopening Strategy and Community Ecosystems

• Tapestry leveraged its international operations, particularly in China, to inform domestic reopening protocols.
• Reopening decisions are driven by two primary factors:
  • Employee Safety: Prioritizing employee health concerns and safety protections.
  • Community Ecosystem: Waiting for a "critical mass" of neighboring retailers to open to ensure consumer traffic and safety.
• For mall locations, Tapestry typically waits until 60-70% of other stores in the mall are open before reopening their own locations.
• Reopening timelines also consider local regulatory variations and the specific actions of complementary brands within the same region.