|
High Performance Retail
What Does Great Performance Look Like?
by Rick Sidorowicz
Retailing is fascinating! There is an incredible pace, pulse, energy and
challenge on the front lines where the strategy of an enterprise and all of
its machinery and processes 'show up' live and 'unplugged' in real time for
customers. It's 'show time' all the time - the ultimate test and the moment
of truth will always be your customers' experience of your enterprise at the
point of sale.
The principles of high performance retail are the principles of high performance
business - and the 'point of sale' can encompass bricks and mortar, e-commerce,
personal selling, b2b, mail order - anywhere your enterprise shows up for
your customers. The point of sale is the 'face' of your business - the stage
for your great performance.
There is no doubt that products, facilities, infrastructure, processes,
planning, training and all of the machinery are critical to success, competitiveness,
effectiveness and profitability. However the critical moment is always at
the front line - with your customers and their experience of you.
High performance retail is all about bringing your strategy to life. It
is operations - it is execution - it is 'making it so' and making it 'real.'
It is, for most businesses, one of the most challenging areas of their enterprise
but also one of the greatest sources of opportunity for significant growth
and profit.
This series on high performance retail will highlight proven best practices
for breakthroughs in performance on the front lines. By breakthroughs in performance
I am referring to significant and sustainable increases in sales and bottom
line profits, accompanied by aligned, positive and committed people, and exceptionally
satisfied and loyal customers. The purpose is to be 'the best' and create
a unique competitive advantage that lasts in the hearts and minds of your
associates and your customers.
The basic principles and the context for
high performance
There are several simple principles, values and conceptual models that give
shape and substance to a high performing enterprise. Just as your enterprise
'shows up' in a moment of truth on the front line, it is your deeply held
principles, values and conceptual models that 'show up' for your organization
every day. These principles and values are not something that we strive for,
or expect only of others, or prescribe, or demand, or list in a mission statement
that we boldly proclaim to the world. The principles and values are … who
we are. They are communicated in what we do and how we do it. They are always
perceived very accurately by our people and our customers - you can't fake
it. Although we usually judge ourselves by our intentions, our people and
our customers always judge us by our actions. Therefore the starting point
for the adventure of high performance always begins with a good look in the
mirror - perhaps the most useful and cost effective of any management tool
available.
Here are several principles, values and conceptual models that shape high
performance:
The absolute importance of your customer's experience
of your organization on the front line at the point of sale.
Are your front most associates revered as heroes and champions of your enterprise
or are they faceless and nameless manhours? Unleash heroes and champions.
An upwards spiral or circle of success:
In it's simplicity - happy workers (through their actions) create happy
customers (who through their actions) create sales and profits (which result
in recognition and rewards for workers) creating happier workers who create
happier customers and so on. This employee -customer profit model was adopted
by Sears. It has also been referred to as "the customer comes second" to highlight
the importance of valuing those who serve on the front lines first.
The belief that honesty, trust, integrity, ethical behaviour,
authenticity, dignity and respect are entirely compatible with a ruthless
commitment to achieving results and the relentless pursuit of victory.
There is no soft stuff or hard stuff in terms of a commitment to ethics and
people or numbers and the bottom line. There is only the right stuff - in
terms of people, numbers and superior results.
The triangle of high performance in retail
With a priority of the product and merchandising, supported by an obsession
with customer service and an empowered front line.
| |
Merchandise Driven |
|
| |
|
|
| Customer Obsessed |
|
Empowered Associates |
My experience with this model was with Conrad LeDrew in specialty retailing,
where we relentlessly communicated the priorities and the balanced set of
requirements for victory to everyone, and achieved breakthroughs in performance.
Merchandise driven includes product knowledge, execution of merchandising
standards, selling at the first price, visual presentation and merchandising
flexibility. Customer obsession (yes obsession!) includes service, clientele
development, service recovery, the wow factor and selling skills. And empowered
front line associates encompasses ownership, initiative, personal performance
management and high performing teams. It is an easily understood and very
powerful model of high performance retail.
A fundamental belief in "internalization" and being "at
cause."
This is the heart of a powerful 'can do' attitude of high performance. And
it comes with a corresponding absolute disdain for externalization - identifying
all of the reasons that rationalize why something cannot be done. A few examples:
Externalization: "We can't make forecast - traffic is way down -
we need more advertising."
Internalization: "Our conversion rate is about 10% versus the industry
average of 15%. That means by improving our selling skills we could pick up
a 50% increase in sales with the same traffic!"
Externalization: "We're totally snowed in. The day will be a write
off. How can we do $20K today?"
Internalization: "Hey - There's no doubt that anyone who comes out
in today's storm will want to buy. All we need is 20 customers!"
Externalization is the scourge of high performance retail. In Jim Clemmer's
words it creates the "victimitis virus" and it is a debilitating virus that
spreads rapidly if not eliminated. Any time we can find a rational and logical
reason to justify failure we will continue to fail. Internalization is a tenet
of high performance and there is absolutely no doubt that all people want
to feel and be powerful. Internalization can unleash tremendous power and
initiative.
We care.
Two very powerful and empowering words. We care about our people - their wants,
needs, desires, families, careers, health, satisfaction, concerns and well
being. We care about our customers - their shopping experience, their satisfaction,
their concerns, their wants and unfulfilled needs. We care about each other
- and we are a team entrusted with the responsibility to lead an enterprise.
We care about performance and results - and will take decisive action to achieve
the goals we set for this enterprise. 'Caring' is mindfulness and thoughtfulness
in action. It is definitely not soft and 'mushy' stuff. It's absolutely hard-nosed,
ruthless and relentless about what really matters for your bottom line. It's
attention to detail in execution. It's doing the right things for the right
reasons - and it is very powerful in action.
Pride.
The pride of your associates is a measure of health and a source of competitive
advantage. It is a key measure of how your enterprise 'shows up' for your
people. Pride is what engages more than the hands and 'going through the motions.'
Pride is all about head, heart and guts - and commitment - and that is exactly
what you need, on the front lines and throughout your organization, to excel.
Are we doing something important and meaningful? Am I valued as a member of
this organization? Am I significant? Do I value being associated with this
enterprise? Do I care? Do I want to be here? The assertion is: when pride
goes up - performance and results go up - another self reinforcing upwards
spiral of high performance.
On a mission.
There are two key elements of being 'on a mission' from God or otherwise.
The first is 'alignment' - I fully understand the expectations, I accept
my role in the fulfillment of the objectives, I want to be here and I will
act to perform my role to the best of my abilities. There is no option available
for resistance, or sabotage, or complacency. And alignment always starts at
the top and must move decisively out to everyone in the enterprise. The second
element is 'intensity' - we have a mission and a keen sense of urgency
- and failure is not an option. The bias is for an immediate and significant
impact on performance and results. There is no room for complacency, apathy,
ambivalence, cruise control or preservation of the past. We are on a mission
- to be the best and nothing will stand in our way.
A high powered approach to almost everything.
James Belasco and Jerre Stead have synthesized a very simple and profoundly
effective model to energize and re-vitalize people and teams to unleash tremendous
creativity, talent and performance. It's a simple and high powered approach
to almost any issue you could face any day. It embodies all of the above high
performance principles, values and concepts - and the best thing is … it works!
Five simple steps to high performance with a few added lyrics. 1. Surface
issues - tell the truth, the whole truth. 2. Engage people - extend
your hand and invite others to the solution. 3. Prioritize and allocate
resources - take action. 4. Unleash ownership - and the
creativity and talent of your people. 5. Energize learning - failure
is not an option, it is learning - refocus and stretch to be the best.
Be the leader.
A powerful concept. High performance is not about management and control.
It's not about trying to prove you are the leader or creating a deference
to authority. And it's not about obedience. It is however about vision and
followership and alignment and yes even about compliance. It is also about
challenging, and coaching and inspiring confidence. It is about being the
leader - being the boss. And the best leaders always lead on the front lines.
The best leaders say, "come follow me!" High performance leadership is also
all about leading, following or getting out of the way, but it always takes
us back to the best management tool for another look in the mirror. Why would
anyone want to be led by you? Who are you and what do you stand for? What
do you want to create and what kind of legacy will you leave? Just be
the leader.
The above simple principles, values and conceptual models provide a basic
framework from which we can shape the high performing enterprise.
High performance retail - what an adventure!
Rick
Sidorowicz is the Publisher and Editor of The
CEO Refresher and
the Minister of Culture of High
Performance Retail.
Many more articles in High Performance Retail
in The CEO Refresher Archives
|
