Target’s CEO Gregg Steinhafel stepped down Monday after 35 years with the company, following a security breach last November in which hackers illegally accessed personal information from as many as 70 million customers.
In the wake of the breach, the retailer’s revenue slid 5 percent during the Christmas quarter, and Target has spent at least $61 million dealing with the hack, the LA Times reports.
According to a statement released by Target’s board early this week, Steinhafel’s decision to resign came after “extensive discussions” with the board. Steinhafel “held himself personally accountable” for the breach, the board wrote.
“The board will continue to be actively engaged with the leadership team to drive Target’s future success and will manage the transition,” the statement continued.
As Target’s CEO resigns and its board directs the search for his successor, how much do you want to bet that it’s taking a different approach to IT? We’d wager, oh, about $61 million.
Attendees at one of IPR’s most recent Thought Leadership Roundtable forums drew the following lessons from the Target breach:
- In today’s environment, a company’s approach to IT must be proactive, not reactive.
- Company Boards are asking the wrong questions: They are asking, “Are we prepared for disaster?” when they should be asking, “Does our IT infrastructure position us for sustainable growth?”
- There’s still too great a gap between business goals and technology infrastructure.
- Most companies only notice technology when it fails.
We suspect that Steinhafel is probably nodding in agreement. Future Target CEO, take note.