Not long ago, Martha Stewart Living Omnimedia (MSLO) seemed doomed. Kmart, its largest licensed household goods outlet, was in Chapter 11, closing hundreds of stores. Her magazine was being challenged by her rival Rosie O’Donnell’s new upstart competitor. Major television stations were canceling her daily show and critics were saying the show would not finish its season. The leader of his company was ordered to resign by the Securities and Exchange Commission. Most devastating, however, was that Martha was headed to jail.

With plummeting sales, disappearing profits and plummeting stock prices, few gave the national diva’s business much of a chance for survival.

Fast forward to 2007. We no longer see a company on the brink of eradication. The revamped daily TV show is garnering such respectable ratings and advertisers that it was renewed through 2008. A second show, specializing in food, runs on PBS, and added a radio show that debuted last week. Its one magazine has grown to six trade magazines, each among the best in their genres. In addition to Kmart’s continuing product line, MSLO has agreements to expand its product line to luxury retailer Macy’s and crafts merchandiser Michael’s. New ventures include furniture and flowers, and even Martha Stewart housing developments.

Most important of all, this now admired company’s revenues increased by more than 50%.

the change

Ben Franklin once said, “What happens is not as important as how you react to what happens.” Despite the multitude of unfortunate events, Stewart continually looked to the future. He saw the company as a driving entity with tremendous growth and maintained a public image that lived up to his vision of success. Never pouting. Always smiling. Martha looked into the distant future, overlooking what she saw as temporary inconveniences.

Things began to change for Martha while she was in prison. She learned that Susan Lyne, then-in-crisis head of Disney/ABC Entertainment, had been fired by ABC bosses. Her main complaint about her was that she had blamed the network’s recovery on two shows that had not yet aired and had little hope for: “Lost” and “Desperate Housewives.”

During a visit to Martha in her West Virginia prison, the two became immediate friends. Martha admired Lyne’s 25-year work history and decided that she was the right person to lead the company into the future. Lyne took over as president of MSLO and would soon garner incredible recognition: Advertising Age would name her “Executive of the Year” and The Wall Street Journal would call her “the best woman to watch in corporate America.”

Five essential elements of leadership

Top business leaders like Martha Stewart are known for five essential qualities:

1. Pursue your purpose with passion. Anyone who knows Martha knows that MSLO is the true purpose of her life. They don’t take two breaths without thinking about her business.

2. Practice strong values. Not all aspects of a great leader are based on a strong value, however all great leaders have one or more strong values ​​that they focus on. For Martha, her company is all about quality products for a better lifestyle at a great price. No one can deny that these attributes drive your actions.

3. Lead with your heart as well as your head. The rumors about Martha are right. For the most part, she sees people as a commodity. However, she demonstrates a heart for helping the people who work for or with her succeed. However, it is more of a team success than an individual success.

4. Established connected relationships. His relationship with Kmart symbolizes his vision of partnership. When Kmart filed for bankruptcy, Martha could easily have gone to another retailer with her products. She remained loyal and that loyalty is created by helping Kmart out of Chapter 11.

5. Demonstrate self-discipline. Martha’s self-discipline is demonstrated by her unwavering focus on her products and consumer demand. Stewart spends little time on activities that are not related in any way to her MSLO business.

MSLO’s success provides a lesson for all business professionals. Whether leading a single-employee Fortune 500 company or LLC or planning individual or departmental growth, the five essential elements of leadership provide a road map for the lifestyle and attitude that lead to success.

*”Five Essential Elements of Leadership” taken from Leadership in a Contemporary World, ©MaxImpact, http://www.getmaximpact.com. (Used with permission).

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