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Charles Walgreen Sr asked his top executives to put aside their own ambitions to help his 33-year-old son manage a very difficult transition to president, and not sabotage Chuck s efforts through a palace coup Everyone including such heavy hitters as Roland Schmitt, Harry Goldstine, Jim Ward, and Robert Knight, who had built the company from the ground floor up honored their mentor s final request without hesitation everyone, that is, except Dart, who openly criticized Chuck s conservative approach to business decisions and made no secret of his conviction that he would have made a better president Dart behaved capriciously toward his store managers, rewarding and punishing them according to his whims, not their performance creating a culture of fearful yes-men, too timid to give their boss honest opinions Although Dart was responsible for keeping the board members fully informed, he usually kept them in the dark Given his predilection for claiming full credit to the exclusion of all others, board members started a running joke that Dart was a one-man team 67 He was married to my sister, and he was considered a boy wonder at the time, a brilliant young man, Chuck says today But the unfortunate part is, after my dad died, we couldn t quite see eye to eye, and it seemed like we wouldn t be able to work together as a team 68 By July 1941, two years into Chuck s reign as Walgreens president, it had become clear that the corporate marriage was failing Board members presented a resolution asking for Dart s resignation, but Dart was not going to go peacefully into that dark night This place will go to the dogs without me! he said, banging his fist on the table unwittingly erasing any doubts the board might have had The resolution passed unanimously The company spared Dart the humiliation of a public announcement, however, and granted his request to use the company plane to find his next job The Chicago Tribune ran a front-page story months later, with no juicy details and no blame attributed for the transition Dart joined United Drugs management team which oversaw 528 Liggett and Owl stores and 12,500 Rexall franchises and became its president just two years later Dart became very wealthy and powerful, ultimately gaining control over a
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large chunk of the original corporation under the umbrella of Dart Industries Though necessary, Dart s departure left Chuck Walgreen to lead the family business through the nation s most difficult economic times without his most talented if also his most troublesome executive I probably would have been scared to death if I hadn t been so close to all the key people in the company and realized their capabilities, Chuck said But knowing that, I had full confidence that we would move right along 69 In some ways, you could argue Dart might have been ahead of his time His brash, egotistical style would have made him a magazine cover boy among the celebrity CEO set in the 1990s but not at Walgreens, then or now And this is the point: Although only a handful of Walgreens most senior employees can place Dart s name today, he s the kind of person who would have been able to take over almost any other company and reshape it in his image, all the while gutting the very foundation on which it was built Values, tradition, team spirit these things meant little to Dart and even less when they got in the way of his own interests That a palace coup didn t work at Walgreens some 60 years ago and has never come close to resurfacing since has everything to do with why Walgreens is such a solid company today In future years, Walgreens leaders would be modeled on Chuck s warm, humble demeanor, not on Dart s bombastic style and that has made all the difference The battle for the company s soul was fought and won in 1941
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