With the announcement of pulling Target out of Canada, CEO Brian Cornell exhibited the type of leadership needed to transform the giant retailer. When he started the position back in August 2014, Cornell knew one of the first lines of business was to figure out Canada. Hard decisions were made that will have impact on the country and Target’s 17,600 employees. It was also the right decision.

Target has to become more nimble to respond to the changing buying dynamics of its shoppers and more competitive in the market. Reports say Target was losing $3.1 million a day in the nearly two years in was in Canada. The writing was on the wall. What’s impressive about the decision is the swiftness in which Cornell did it and the support structure put in place to take care of the employees.

In the throw of determining Target’s future value, Cornell has had to look at both where he could get a quick win to shore up funding for future investments and where Target has the best opportunity to be competitive. These bold and necessary moves will accelerate the transformation of Target.

We expect leaders, especially of publicly traded companies, to take calculated gambles. They have a responsibility to shareholders and employees to put the company in the best position to win. Sometimes a new CEO recruited from outside the organization can bring a new perspective and offer solutions that “insiders” are unwilling or unable to consider. This is important for new CEOs to consider as they make decisions about building their new team. It is difficult for employees with long tenure to make decisions that reflect negatively on past decisions or will impact long term colleagues.

In his five months at the helm, Cornell has demonstrated a new leadership style that was able to get the board in-step with the decision, get his executive aligned around the strategy to make the change, and provide a support structure for displaced workers. This is new Target leadership, and it’s transformational.