Key Takeaways
- Build-A-Bear CEO reversed bankruptcy by prioritizing the company's emotional core.
- A 'heart-centered' strategy expanded Build-A-Bear's market and boosted profitability.
- Sharon Price John advocates empathy and purpose as key drivers for business success.
- The approach resulted in 4 years of record results and 2,000% stock appreciation.
Deep Dive
- Sharon Price John took over Build-A-Bear Workshop in 2013 when the company was nearing bankruptcy.
- In 2012, Build-A-Bear had lost $50 million, primarily due to declining mall traffic and the rise of the digital economy.
- John's initial plans for cost-cutting and layoffs were met with team skepticism, fearing the loss of the company's core emotional element.
- Sharon Price John realized team resistance stemmed from a fear of losing the company's emotional core.
- A new mission statement, 'we add a little more heart to life,' was created, aligning strategy with the company's purpose.
- Build-A-Bear's purpose extends beyond retail, serving as comfort for organizations like the Red Cross and grieving families.
- This purpose-centered approach enabled a profitable turnaround and global expansion.
- The turnaround strategy expanded Build-A-Bear's presence beyond malls to tourist locations and resorts in over 30 countries.
- The strategy also identified teens and adults as a key market, tapping into the 'kidulting' trend and doubling that business segment to 40% of sales.
- Despite challenges like the retail apocalypse, Build-A-Bear achieved four years of record results, with stock appreciation over 2,000%.
- Sharon Price John asserts that empathy and genuine care are more crucial for business turnarounds than merely being smart or financially astute.
- She supports this by referencing Theodore Roosevelt, stating, 'Nobody cares how much you know until they know how much you care.'
- John's personal evolution led her to consult her heart before making final decisions, finding clarity, resilience, and joy.
- This heart-centric approach is presented as a path to extraordinary outcomes and lives.