Sir Stuart saves the dayLord Myners announced his interim period of Chairman-ship would end in June 2006 and in this way he assuredshareholders that due space would be awarded to the newteam of Rose and incumbent Chairman Lord Burns to leadMarks and Spencer plc forward and away from the turbu-lence of 2004.The appointment of Stuart Rose was seen as inspiredand a real coup for the Marks and Spencer plc board. Rose,who had sold the Arcadia group to Philip Green and netted£25 million for himself in the process, was seen as a positiveappointment by investors. His past experiences at BurtonsMenswear, Evans & Principles (womenswear), Argos,Booker Cash and Carry and Arcadia characterised him asan experienced shopkeeper who could revitalise fatiguedretailers and had a record of delivering shareholder value.During the period when the Rose/Myners team foughtoff the Philip Green takeover bid, Rose was careful to pro-ject his understanding of the need for major change to cityinvestors:We live in a tough, commercial world . . . The businessdefinitely suffered a little from the A-word, arrogance, inthe mid to late-90s. It looked out the window and foundthe world had passed it by.iiHowever, he simultaneously followed a strategy of underpromising and overdelivering in terms of expectationsetting. Specifically he repeatedly informed investors andcommentators that he did not expect to see results from his 11-point strategic plan until well after spring 2005when the first of his initiatives would be hitting the stores.He made a particular issue of delaying his use of the ‘Rword’: recovery. Although tempted into it as results beganto improve, he refused to express confidence and continuedto project humility and his appreciation of the task ahead.Investors said they would give him until December 2005for recovery.His 11-point strategic plan to achieve turnaroundrevolved around five core values designed to win backMarks and Spencer plc’s core customers: quality, value, service, innovation and trust.a71Shelving Per Una Due (designed for teens and twenties)as it was not targeted at natural Marks & Spencer customersa71Acquiring Per Una from Davies for £125 million (withDavies remaining as CEO for two years to retain branddirection)a71Cancelling more than 500 food productsa71Developing supply chain and sourcing efficiency, toreduce the stock overhanga71Stopping waste and unnecessary administration costsa71Improving core servicesa71Returning £2.3 billion to shareholders (through buyingback 635 million shares)a71Moving to out-of-town retail centresa71Restructuring and redundancya71Changing employee mentalitya71Closing or upgrading stores, which he likened to hospitals.Popular with employees, Rose’s initiatives very soonearned the very telling internal commentary the ‘thegrown-ups are back in charge’.iiiSo for some of the employ-ees at least, the old Marks and Spencer plc was back.