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Julie Roehm contradicted everything that Sam Walton ever held dear, and her hiring a year ago had many Wal-Mart Stores, Inc. (NYSE:WMT) observers scratching their heads. Famous for her racy, attention-getting antics -- like her "Lingerie Bowl" in which models clad in underthings played 'football' -- Roehm never seemed the right sort for Wal-Mart. She was fast cars, sex and rock-and-roll to Wal-Mart's Buicks, family values and Barry Manilow. In fact, her transformation of the shareholder meeting from boring to off-Broadway was a spectacle to behold (and, it seems, had old-line Wal-Mart executives "groaning," according to the New York Times.[Recent Julie Roehm news:
Wal-Mart should bring Julie Roehm back -- May 27, 2007
Julie Roehm claims Lee Scott violated ethics -- May 25, 2007
Julie Roehm says Wal-Mart charges invalid -- March 29, 2007
Wal-Mart countersues Julie Roehm -- March 20, 2007]
Now she's been ousted, amid allegations of an inappropriate relationship with a subordinate, and the advertising agency she chose -- DraftFCB of Chicago -- is unceremoniously dismissed before it even began work on the huge account.
How was this ever supposed to work? I have to ask. Wal-Mart executives, even Sam himself, were always told to sleep two to a room while travelling on business, and select the cheapest available lodging. The company has strict "fraternization" rules so that any relationship between colleagues is inappropriate. [While it's not said outright in anything I've read, it seems that Julie Roehm has been read-between-the-lines accused of sleeping with Sean Womack, a member of the marketing staff at a lower rank than Roehm. It doesn't shock me. People who work together sleep together, it's happened everywhere I've ever collected a paycheck.]
Wal-Mart is so not Julie Roehm.
Julie Roehm zigs where Wal-Mart zags. Julie was seen accepting rides in DraftFCB founder Howard Draft's Aston Martin, and in a GSD&M exec's BMW convertible. She was invited to a Nobu dinner with DraftFCB over a month before the account was awarded.
And the thing is, Julie Roehm isn't outstanding for her acceptance of fancy meals and rides in fabulous fast cars. In the advertising industry, heck, why do you think all the executives have such expensive fast cars? Why are ad execs always better dressed than their clients? Why do they eat at better restaurants? It's just the way the ad biz wheels and deals. By appearing successful you encourage your potential clients to want to associate with you, and by extrapolation you will make them successful, too. It works for lots of companies.
It doesn't work for Wal-Mart. No, that's not Wal-Mart's way, at all. A ad she oversaw was internally known as "Sexy," and depicted a husband and wife discussing lingerie in front of their family. It was pulled quickly due to customer complaints.
Roehm was just too sexy for Wal-Mart, and although the allegations against her are certainly minorly shocking, in my opinion? It was only a matter of time.
And the thing is, Julie Roehm isn't outstanding for her acceptance of fancy meals and rides in fabulous fast cars. In the advertising industry, heck, why do you think all the executives have such expensive fast cars? Why are ad execs always better dressed than their clients? Why do they eat at better restaurants? It's just the way the ad biz wheels and deals. By appearing successful you encourage your potential clients to want to associate with you, and by extrapolation you will make them successful, too. It works for lots of companies.
It doesn't work for Wal-Mart. No, that's not Wal-Mart's way, at all. A ad she oversaw was internally known as "Sexy," and depicted a husband and wife discussing lingerie in front of their family. It was pulled quickly due to customer complaints.
Roehm was just too sexy for Wal-Mart, and although the allegations against her are certainly minorly shocking, in my opinion? It was only a matter of time.
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Reader Comments (Page 1 of 1)
12-08-2006 @ 5:42PM
bert said...
Isn't this another example of Walmart saying it wants to change and not really wanting to. They need to rethink some of these traditions and policies towards people to stop the weekly outpouring of mistakes.
12-08-2006 @ 7:33PM
mark said...
Think about it...why would they state she leaves and then can the ad agency? ETHICS! Obviously she was accepting gratuities from the ad agency. Thus both were canned. Clearly they stand by their ethics policy regarding gratuities. She's not the first to go for it, nor will be the last.
12-08-2006 @ 9:28PM
Jack Schneider said...
It is time for Walmart to clean house. Who hired her that person should take responsibility and leave, also the stock is down 30% the street has spoken lets go back to what made Walmart great.
12-09-2006 @ 11:01AM
Biily F. Martin said...
All problems going on at Wal-Mart now have to land with Lee Scott and the board.Lee says exactly what anyone wants to hear and wants to project the "father" image. I'm sure I'm not the only one that feels this way. But what do I know since I'm just an East Texas country boy.
Billy Martin Henderson,Tex.
12-09-2006 @ 11:48AM
Javaflash said...
"Culture clash?" Well, let's recall Walmart is a corporation. There shouldn't be any "real" culture besides numbers. I do not believe Julie Roehm did what she claimed she did, which is to "push the envelope." Coming from a car company to a discount superstore, and still can't think outside of things she wears...
(Sex) doesn't sell. (Sex + Product) sells. Someone forgot the "+" and "Product."
12-09-2006 @ 8:53PM
Laurie said...
Know little about Julie or Wal-Mart but I worked at Draft (now DraftFCB). I have been in advertising since 1981, and have worked at several major Chicago agencies, so it's not like I'm a neophyte. Howard Draft is ethically challenged, even by our low standards. I'm only surprised it has taken this long for him to get his comeuppance. I feel sorry for the folks at Interpublic who now have to figure out what to do with him.
12-09-2006 @ 11:06PM
Gary Bourgeault (managersrealm.com) said...
Roehm was a disaster for Wal-Mart from the moment they hired her. But both parties bare responsibility. She should have known that she wouldn't fit into the Wal-Mart culture, and shouldn't have accepted the job.
The one who hired her also bears responsibility. There was never a chance that she could have fit into their core values and culture.
Wal-Mart has been in an identity crises ever since she tried to portray them as something they never represented or would become. Thankfully her time is over there.
12-11-2006 @ 7:50PM
Michelle NYCA said...
I'm sorry. I have to say I just don't get the whole thing. Agencies and clients have to get to know each other in the pitch process. Having dinner together is not a crime. Riding in someone's car is even less so. There is a missing piece to this puzzle.
Michelle Edelman is Director of Strategic Planning at NYCA, a full-service marketing agency that grows businesses with inspired ideas. To find out how NYCA can grow your business, log on to www.nyca.com.
12-13-2006 @ 2:16PM
Narayan Swamy said...
I had interactions with Julie and she was nice enough to exchange emails with me when I proposed my company's media buying exchange as she started working with eBay. At least she paid attention to a solution coming from a lesser known company than a big company like eBay. Having said that the days of big agenices relying on shock and awe to lure customers are over. I have seen hundreds of ad agencies and their pomp & show. Just acting big and successful will not cut the muster. Agency business afterall is a service business and they lose their core assets (talented people) when they lose their clients. They have no real big infrastrcuture. Most they have is a good looking lobby. It is only the receptionist that enjoys the abience. The rest are crammed into small cubicles stuffed with paper all over the place.
Julie Roehm's incidence is a lesson to service businesses that they better learn to improve quality of service through good service infrastructure and better quality people. It is time to end the pomp and show. No sane business should believe that their money is well spent when handed over to an extravagent sales person who is full of hypocracy and showmanship.
12-17-2006 @ 8:31PM
Kamau Jackson said...
I think Walmart's spiral of problems stems from something more fundamental than image and core-value deviance.
I wonder whether someone may sense, intuitively, that the actual business model has reached the point of diminishing returns.
There have always been discount price leaders since the '5 and dime' days. But from one generation to the next-- it's not the same one.
Walmart's attempt to transition its original USP in search of a new customer is understandable. The price shopper that took them to the promised land isn't the one who can keep them there.
Problem is-- the writing may already be on the wall. The 'Re-branding and Repositioning' process is too slow to stave off the ravages of everpresent factors like 'Wages As A Percentage of Sales'.
Why Scott thought Roehm would ever be a good "bird dawg" shows just how long Mr. Sam's been gone.
Kamau Jackson is Business Growth Analyst at InternetKnowledgeSolutions.com. Visit us at http://www.internetknowledgesolutions.com to find out how to achieve explosive growth by leveraging the assets you already have.