Marks & Spencer posted a mixed bag of financial results on 24 May, with the biggest shock to shareholders no doubt emerging as a 64% slump in annual profits.

M&S’s reforming leader Steve Rowe has put the dramatic dip down to the one-off costs of revamping the brand’s Clothing and Home range – a decision he took last year to reflect an ‘everyday low prices’ ethos. Off the back of that change of direction, he noted, there has been a major surge in full-price product sales – a result of more effective pricing and a move to lower the frequency of sales and other discounting measures.

But while group revenues rose by 0.6% to £10.6bn, overall like-for-like sales fell 1.9% as the chain attempted to reposition that all-important Clothing and Home range. And in that specific division, like-for-likes fell by 3.4%, and total sales by 2.8%.

Nonetheless, investors evidently approve of Rowe’s tactics: on the morning the results were announced, M&S’s share price rose by 2% to 396p – a sign of market confidence that the chain will eventually hit long-term profitability in the wake of Rowe’s reforms.

For the man himself, though, the blend of highs and lows in the results present something of a conundrum. How can a leader in his position properly evaluate whether a change of tack is working? And what kind of leadership approach should a reforming boss adopt to ensure that staff get the message about a new direction – but are able to voice their concerns if they think it isn’t hitting the mark?

“Of all the industries to be able to track your decisions and see the impact of changes in direction, retail is by far the best,” says The Institute of Leadership and management's head of research, policy and standards Kate Cooper. “Rowe won’t be short of data that will tell him to a decimal point which product lines are working, which parts of the country specific offerings are working in, and so on. Compared to many leaders, he’s data rich. He’s also got a senior-management team around him who are experienced not only in retail, but in reading trends and sifting through the data. So in his case, he’s not boldly going it alone and making crucial decisions hoping that people will follow him.”

Looking at the theme in a broader sense, Cooper advises: “Have compelling evidence. Have data that suggests whether or not you’re on the right track. Build up a strong track record of making decisions on the basis of sound data. And you also need a lot of trust. It seems that the stock market has certainly invested its trust and belief in Rowe – but leaders more generally need to secure the trust of their teams, and this is achieved by letting the team members know that you are listening to them and being guided by them.”

In addition to securing trust, Cooper notes, it is vital for change-making leaders to take their people with them. “If you don’t do that – especially in an industry like this where it’s so easy to prove lack of success, you’ll end up with people in your senior team who won’t openly celebrate your failures, but won’t exactly commiserate them either. You want your success to be their success, and their success to be yours. And you can only do that by sharing a vision. You can’t do it merely by having one, and then telling people about it after the consequences of not sharing it have become all too clear.”

For further thoughts on how leaders inspire their teams – and the value of a ‘pull, don’t push’ approach – check out this learning item from the Institute

Image of M&S signage courtesy of TungCheung, via Shutterstock