Costly Hire Taught Rona CEO a Lesson: Prioritize Culture Above All Else
MONTREAL – A disastrous vice-president hire nearly derailed years of progress at Canadian hardware retail giant Rona, according to former president and CEO Robert Dutton. The experience, recounted in a recent interview, underscored a critical leadership lesson: skills alone aren’t enough – attitude and cultural fit are paramount. Dutton, who helmed Rona for two decades, now shares the cautionary tale with students at HEC Montréal, emphasizing the devastating consequences of neglecting company culture during recruitment.
The incident, which unfolded after a warehouse visit during the hiring process, highlights the importance of trusting the instincts of long-term employees. Despite a warning from Ida Tremblay, a 30-year veteran of Rona’s Boucherville distribution centre, Dutton proceeded with the hire. ”Ida said to me: ‘Robert, who is that? Don’t hire him, I don’t believe it.’ I hired him the same,” Dutton recalled. That decision ultimately cost rona dearly, requiring the VP’s dismissal after just one year due to widespread disruption and alienation of key stakeholders.
Dutton explains the new VP “had set fires everywhere,” rallying a team that ultimately undermined established relationships with merchants. Tremblay’s initial assessment proved tragically accurate,demonstrating the value of frontline employee perspectives in evaluating potential hires. The experience reinforced Dutton’s belief that hiring talent without prioritizing cultural alignment “breaks trust” and destroys “coherence,” leading to demobilization within the organization.
The fallout wasn’t limited to the VP’s departure. Approximately half of the new hires brought on by the VP eventually left Rona voluntarily, recognizing the incompatibility with the existing company culture. Dutton stresses the need for swift action when a mis-hire occurs, acknowledging that “long discussions…but nothing happened, there was no improvement.” He ultimately made the arduous decision to prioritize the “common good,” even if it meant acknowledging a mistake.
Now an associate professor at HEC Montréal since 2015,Dutton,born in 1955 and a 1977 graduate of the school (awarded an honorary doctorate in 2012),emphasizes that culture is “based on our history,our ethics,our values,our social duty.” The son of hardware store owners,Dutton spent 35 years at Rona,building a legacy on the principle that “attitude is as important as skills.” His story serves as a potent reminder for leaders across industries: a brilliant resume is no substitute for a strong cultural fit.
