The Retail Management Formula: A Navigational Guide To
Consistently Effective Retail management by Jon Dario Last annotated
on January 29, 2016
- The Uniqueness of Retail Management
Retail corporate strategy is only as good as the implementation of that
strategy on the front lines.
- The key to effectiveness
The point is that being the absolute best at one skill, even one of the
skills that is most closely tied to maximum earnings, was not nearly as
effective as being solid in all three of the critical skills. Retail managers
who are consistently good at all the most important skills will outperform
managers who are great, maybe even superior, at just one or two of the most
important skills.
Effective Retail Mngmnt = (Clear vision of targeted expectations + Mngmt
steps used + Mngr’s use of time) X Mngr’s
character
A manager who has a clear vision of the expectations she is managing to,
uses a planned and consistent series of steps to communicate, train, and
enforce those expectations, and plans and uses her time well will achieve the
highest levels of execution from the team. The effectiveness of those skills
will be magnified (or reduced) by the personal values and characteristics of
the manager.
- Retail Management Pyramid: Organizing the expectations
By having clear expectations and priorities, a manager achieves two
important things. First, the manager’s team members know what is expected of
them and can adapt their actions and behaviors accordingly. Second, the manager
has a guide for how she should spend time in her store or stores and what
actions she needs to take in order to improve her business.
The practical theory behind the Pyramid is that the items at the bottom are
the ones that are most critical to the successful operation of the business. The
first step to creating a Pyramid is to list all the tactics and expectations
that are targeted for the business. It’s important to be comprehensive in this
initial listing. At this point, do not worry about putting the list into any
sort of order. Most retail situations will work well by grouping the list into
the categories of “Business Basics,” “Customer Interactions,” and “Advanced
Business Development.” Now we must prioritize the individual items within each
of the three categories.
The point is that in building a Pyramid, it is critical to go through the
right process and truly identify the things that are most important to your
specific business.
1. It
serves as a communication tool to the entire team by telling them exactly what
is expected and how the expectations rank in terms of priority order.
2. It
becomes the manager’s guide for what he does when visiting a store and the
manager’s guide for how he prioritizes time and efforts.
3. It
becomes senior management’s tool for assessing the quality of implementation in
the store, and therefore for assessing the effectiveness of the manager.
The next step we need to take is to list all the separate, detailed
expectations that exist within each box of the Pyramid. If there is the possibility of legitimate
debate over whether a particular expectation has been met or not, it probably
means that the expectation needs to be more objectively written. The full list
of expectations should be kept to one single-sided piece of paper. An important
benefit of doing so is that anything longer will be hard for members of the team
to absorb and remember. We must add a section for “Previous Action Plan Items.”
it will be very supportive to pull together in one place all documentation,
including training materials, process charts, tracking tools, and so forth, for
each expectation on the list. Give the Pyramid, the one-page expectation list,
and the support kit (or link to the support kit) to the entire team, and they
will have a wonderful road map to successful implementation. there must be some
way to use the Pyramid to evaluate performance of the team and to evaluate the
store against the expectations that have been established. The best way to do
this is to assign point values to the expectations on the Pyramid. It is not
necessary for every Pyramid box to have a different number of points. For
example, there might be several boxes worth ten points each. Most Pyramid boxes
should receive a range of point values to reflect a range of possible
performance levels. There are likely to be some boxes that are not worthy of
receiving “great” credit. For example, there may be no discernible difference
between “solid” staff scheduling and “great” staff scheduling. In these cases,
simply leave off the highest point value. Regardless of nuances of allocating
the points, the net result should be that every store can be scored by the
manager, and every store visit by senior management can be scored the same way.
The use of an objective evaluative tool such as the one we have created
will enable senior leaders or managers themselves to quantify their performance
in a tangible way other than by only looking at sales results. Another option
is to use “red,” “yellow,” and “green” to represent “unacceptable,” “marginal,”
and “satisfactory” levels of performance on each section of the Pyramid. There
are some legitimate reasons why a manager’s process of “doing the Pyramid”
might get interrupted. managers must constantly go through all boxes of the
Pyramid again and again. the manager repeatedly walks a figure eight around the
store. While walking, the manager continuously scans for each element of the
Pyramid, thinking about them in the order that they appear on the Pyramid. managers
must exercise judgment in the amount of time they dedicate to each part of the
Pyramid as they do their figure eights or store visits. This concept can be
visually represented on our Pyramid diagram by assuming that the height of the
Pyramid boxes represents the amount of time to be spent on each box. although
time might be reduced because of a good track record of performance, no item in
the Pyramid can ever be completely ignored and passed over.
Actions will fall into one of the following three buckets:
1. Just
fix it now: This is for actions that are so small they require little time and
effort (such as a sign that is out of place) or actions so important they
cannot be delayed at all
2. Fix
it later: This is for actions that will require a bit more time or effort but
are not so complex as to require extensive planning.
3. Action
plan: This is for actions that do require more extensive thought and planning.
Steps to Creating a Retail Management Pyramid
1. Make
a list of all important business tactics:
a. Be
comprehensive—do not leave out any important expectations.
2. Sort
the items in the list into one of three categories:
a. Most
fundamental tactics—“Business Basics.”
b. More
complex, high impact tactics—“Customer Interactions.”
c. Most
complex or lower impact tactics—“Advanced Business Development.”
3. Prioritize
the items within each of the three categories.
4. Check
the logic of the Pyramid.
5. List
the very specific and detailed expectations that are associated with each
tactic in the Pyramid:
a. Be
objective—each expectation should be able to be evaluated with a yes or no
answer.
b. The
entire list should be limited to one page.
c. Add
“Previous Action Items” to the list.
6. Create
a packet of support materials to go along with all the tactics and expectations
in the Pyramid.
7. Assign
point values to each tactic in the Pyramid:
a. Assign a potential range to each tactic to
represent scores for “great,” “solid,” “marginal,” and “unacceptable”
performances.
8. Begin
“going through the Pyramid” on each store visit.
9. List
action items based on gaps versus expectations that are identified while going
through the Pyramid:
a. Fix
it now.
b. Fix
it later.
c. Action
plan.
4. Retail
Management Process: Idea to Implementation
We need to ensure that the initial message is not only communicated but
also understood and retained. Then we need to ensure that the recipients of the
message are motivated to implement it on their own, and we need to ensure that
they are properly taught how to implement it. This requires a whole process,
not just a single communication.
communicate it in a number of ways. The most comprehensive communication
will be delivered verbally to the group, followed up with a written message,
and then followed up again with a one-on-one conversation with each associate.
Just because a manager has gotten a message across effectively does not
mean that every associate has “bought into” the message.
Retail is about creating habits. The more effort it takes for them to remember
what they have to do, the less likely it is that they will do it, regardless of
their desire or intentions.
1. Most
associates want to do the right thing. It’s human nature for people to want to
succeed.
2. If
associates are consistently failing to implement expected behaviors, it is the
manager’s fault, not the associates’ fault.
The Retail Management Process consists of the following steps:
Step 1 Communicate the expectations.
Step 2 Gain commitment.
Step 3 Practice, practice, practice.
Step 4 Observe, diagnose, coach.
Step 5 Inspect and track progress.
Step 6 Apply consequences.
Step 1:
Communicate the Expectations
In order to satisfy the retention style of every member of the team,
expectations should be communicated at least two times in two different ways. There
must be a general communication to the entire team so that every associate
receives exactly the same message. Then there must be a one-on-one follow-up
with each associate. the team is more likely to follow the manager’s actions
than the words, so it’s possible that the real message being heard is exactly
the opposite of the intended message.
Step 2: Gain
Commitment
It is one thing for associates to hear and understand a message and quite
another for them to buy into the message and be committed to implementing it. The
first key to gaining commitment from associates is to explain why the expected
behavior is important. This explanation of “why” is most powerful when it can
be communicated as a “win” for all parties. simply ask associates how they feel
about the expectation. When asked, most associates who have not bought in will
give indication of their lack of commitment.
Step 3:
Practice, Practice, Practice
Every new skill requires practice in order to be perfected. Usually, the
best approach is to progress from practice in a completely safe environment to
practice in a real-life environment. The ideal involvement of a manager in a
retail environment is in the form of role-plays with associates who are
learning new skills. If there is one big downside of using this incremental
coaching process (which I commonly call “coaching in bits”), it is that it can
take quite a bit longer than simply doing one run-through and giving a
comprehensive list of things to correct. But if you measure time as how long it
takes to help
Step 4:
Observe, Diagnose, Coach
If a manager observes an associate successfully performing the new skill
several times with several different customers, it is safe for the manager to expect
the associate to perform that skill with all or most customers from that point
forward. The manager can at that time certify the associate as “trained.” The
objective should be to have this after-the-interaction coaching look and feel
as much like the coaching received during practice as possible. The most
important point about the above scenario is that if performance gaps are
identified in the observe, diagnose, coach phase, the managers do not leap
forward in the Retail Management Process toward consequences, but instead
revert backward under the assumption that they didn’t do one of the first three
steps effectively. Even after associates are certified as “trained” on a skill,
it doesn’t mean they are finished learning about that skill, and it doesn’t
mean that they will automatically perform that skill satisfactorily forever
after.
Step 5: I
Inspect and Track Progress
The tracking step is divided into two distinct but equally important
elements—tracking employee progress through the Management Process and tracking
progress toward the end goal of the Management Process. Instead of entering a
single check mark, we are going to enter three marks, each of which represents
a different step in the Management Process. When a manager clearly communicates
the expectation to an associate and has confirmed that the associate buys into
the expectation, she will enter a slash in the appropriate box. When the
manager has observed the associate perform the behavior successfully several
times in a practice environment, she will enter a backslash in the appropriate
box (which, along with the first slash, will form an X in the box).
When the manager observes the associate perform the expected behavior
successfully several times in a live environment, she will enter an O in the
appropriate box, encircling the X already there. An employee is not “trained”
until they have received “Circle X Status.” Rewards can be given to associates
for achieving “Circle X Status” on initiatives within a certain time frame, and
failure to sustain expected performance after achieving “Circle X Status” can
be cause for disciplinary action. it’s equally important to also track the
associates’ progress toward the goal when the manager isn’t directly observing
or even present. As associates get better and better with their implementation It
is important to communicate results to associates. A highly effective method
for communicating individual results is through publicly posted regular ranking
charts. Such charts are most effective when all associates are listed and the
list is sorted with top performers shown at the top of the chart and bottom
performers at the bottom of the chart.
Step 6:
Apply Consequences
Bottom performers who see those at the top being positively rewarded will hopefully
feel the desire to step it up in order to receive similar rewards. On the flip
side, top performers who are not recognized and do not see that any negative
consequences are applied to bottom performers may lose their motivation and
allow their performance to decline. When it comes to negative consequences, the
goal is not to discipline the associate. The goal is to turn around the
associate’s behavior and help the associate become successful.
The Retail
Management Process
Key
Principle #1: Most associates want to do the right thing.
Key
Principle #2: If associates are consistently failing to
implement expected behaviors, it is the manager’s fault, not the associates’
fault.
The Steps:
1. Communicate
the expectations.
2. Gain
commitment.
3. Practice,
practice, practice.
4. Observe,
diagnose, coach.
5. Inspect
and track results.
6. Apply
consequences.
The Tool:
Training Roster Example
- The Retail Management Food Chain: Defining Roles & optimizing time
two big problems that occur frequently in challenging retail environments.
First, managers are constantly losing sight of their primary role and are doing
the job of somebody in a lower position on the organization chart.
Second, managers are letting the day control them instead of controlling
their own time. the manager must spend the majority of his forty-five hours per
week doing activities associated with the Retail Management Process. The
concept behind the Retail Management Food Chain is that the primary role of
each level of management is to assess, coach, and develop the skills of the
layer immediately below it on the organization chart. the effectiveness of a
manager can best be judged by assessing the performance of the people he is
managing. The more logical and thoughtful the manager is about those decisions,
the more control she will have over their day.
There are four keys to being able to get the most out of the time available
in a day:
1. Understand
the categories of tasks that must be accomplished, the detailed tasks within
each category, and what time of day they are best accomplished.
2. Establish
routines that will streamline the administrative tasks and maximize time for
management tasks.
3. Allow
time for unexpected curveballs.
4. Schedule
the day by blocking off and documenting time for each category of tasks.
We’ll establish three categories of tasks, and these categories should
capture everything that a manager might possibly do in a day. Let’s set a
target of 70 percent of the day devoted to “Management,” 10–20 percent devoted
to “Administrative,” and 10–20 percent devoted to “Implementation.” Now that we
know the activities we must repeatedly accomplish, we know how frequently we
must accomplish them, and we know when the best time is for each activity, we
are ready to build our schedule of routines. The next step is to build
everything into a schedule. I learned it from somebody who worked for me rather
than somebody who managed me.
The Retail
Management Food Chain
In summary, the most important lessons from this chapter are the following:
1. Managers
must ensure they remain in their proper role and not fall into the trap of
doing the job of a position lower on the Retail Management Food Chain.
2. Each
manager’s primary role is to assess, coach, and develop the skills of the
employees immediately below them in the organizational chart.
3. Remember
that the amount of time which a manager has available in a week is not limited
to his own forty-plus hours but rather is the product of his total team’s FTE
times forty hours.
There are four keys to getting the most out of the time available in a day
and a week:
1. Understand
the categories of tasks, the specific activities within each category, and the
best time of day to complete each activity.
⚪ Administrative
activities – target 10-20% of available time in the week
⚪ Management
activities – target 60-70% of available time in the week
⚪ Implementation
activities – target 10-20% of available time in the week
2. Establish
routines by grouping like activities together and establishing set schedules.
3. Allow
time in the schedule for unexpected surprises.
4. Block
out the schedule in the calendar or organizational tool of choice.
- Retail Management Character
In summary, there are three important reasons that Retail Manager Character
serves as a “multiplier” in the Retail Management Formula:
1. Character
makes the difference between a manager simply going through the motions and
truly being effective.
2. Character
has direct impact on the level of engagement of the employees.
3. Character
of the manager tends to be adopted by the employees.
There is no one “best” set of manager characteristics since there can be
significant overlap between definitions and it is at least partially determined
by organizational culture. That said, a good starting point list of manager
characteristics is… • Caring • Responsible
• Focused
• Relentless
• Farsighted
• Courageous
No matter which characteristics are selected or how they are defined, it is
important that they be clearly communicated so the entire organization knows
which ones are most valued.
A well-understood and documented list of characteristics which are most
valued by the organization can be used in many ways, including…
• As a manager self-assessment tool
• As a recruiting, interviewing, and hiring guide
• As a resource for providing positive and
constructive feedback • As a foundation for
building individual development plans • As a base
for a recognition and reward program
- The Retail Store visits
Three Goals
of Store Visits:
1. Objectively
assess the store’s performance.
2. Make
decisions and build action plans to positively impact the business in the short
term.
3. Develop
the manager’s and team’s skills in a way that provides positive impact over the
long term.
Five Parts
to Store Visits:
1. Pre-visit
Preparation
a. Review
relevant business reports.
b. Review
past visit reports and past action plans.
c. Set
agenda, timing, and context for the visit.
d. Identify
any needs the manager has from the visit.
e. Obtain
a pre-visit self-assessment from the manager.
2. Observation
and Assessment
a. Ask
specific questions rather than hypothetical ones.
b. Show
me; don’t tell me.
c. Get
the real scoop from the troops.
d. Be
predictable.
e. Keep
digging until you get to the root.
f. Where
there’s smoke, there’s fire.
g. Do
your best “Columbo” impression.
h. Be
aware of the “Big Boss” effect.
i. Know
when to say “when.”
3. Visit
Summary
b. Obtain
manager’s self-assessment of how the visit went.
c. Give
a general tone for the visit:
i. Assess
team’s performance relative to defined standards.
ii. Assess team’s performance relative to
realistic expectations.
d. Give
two to four headlines about the visit.
4. Action
Plan Creation
a. Create
punch-list to-do items.
b. Be
specific with expectations and deadlines.
c. Build
an appropriate mix of manager participation into the action plan.
d. Provide
good documentation of the action plan.
e. Use
the Retail Management Process.
5. Post-Visit
Follow-Up
b. Monitor
relevant reports for signs of impact and improvement; start doing this
immediately after the visit.
c. Conduct
a subsequent on-site visit; do this as soon after the action plan due date as
possible.
Be sure to
use a good mix of scheduled announced visits and unscheduled surprise visits.
- Conclusion: The Retail Management Formula:
Initial Implementation Plan
⚪ Read
the book The Retail Management Formula
⚪ Create
your Retail Management Pyramid
⚪ List
all expectations and tactics.
⚪ Group
expectations and tactics into just three “buckets.”
⚪ Prioritize
the three groups.
⚪ Prioritize
the expectations within each group.
⚪ Draw
the Pyramid so it can be used as a communication tool with team members.
⚪ List
all detailed expectations that relate to each box on the Pyramid (keep list to
one page).
⚪ Create,
assemble, or read support packet for all the items on the Pyramid.
⚪ Create
a Pyramid evaluation tool with point values.
⚪ Develop expertise with the Retail Management
Process
⚪ Identify a particular skill or project for
which to apply the process.
⚪ Write
out a complete plan for how the six steps of the Process will be used.
⚪ Carry
out the plan.
⚪ Create
a training roster to be used with your team going forward.
⚪ Establish your Retail Management Food Chain
⚪ Document
your high-level role.
⚪ List
all administrative and managerial activities that you must regularly perform.
⚪ Identify
the desired or required frequency for all listed activities.
⚪ Determine
the best time for you to perform each of the activities.
⚪ Turn
the list of activities into routines by grouping items together.
⚪ Schedule
blocks of time for routines; schedule “implementation” time.
⚪ Build a “Characteristics We Value” program
⚪ Establish
the characteristics you will expect from yourself and from your team.
⚪ List
specific descriptions for each of the characteristics.
⚪ Communicate
the characteristics and descriptions to your team.
⚪ Create
a routine for nomination and recognition of associates according to the
characteristics.
Hiç yorum yok:
Yorum Gönder