But as the company grew, it became more complex and diverse. More structure, process, and program consistency was needed to balance the rather loose processes of Agent Orange. Bernie Marcus retired from active participation in the company and Arthur Blank took the reins. One might have expected that Blank would have led a shift to the formal and that The Home Depot’s growth would continue. Instead, the company’s profit margin and market share began to slide. What had looked like an unstoppable rise of the greatest retailer in America suddenly appeared stalled.

Not surprisingly, The Home Depot’s board grew increasingly concerned about the company’s future. They concluded that they needed a clearer strategy along with more disciplined management, and, above all, a new CEO. They recruited Robert Nardelli, a former president and senior executive at General Electric. To most informed observers, Nardelli was the best possible choice. GE executives are known for their strategic rigor, organizational clarity, and analytic discipline. Just what The Home Depot needed.