Tue 17 Feb 2009
Retailers Must Focus on the Future
Posted by Evan Wise under change, inspiration, strategy, and metrics
1 Comment
Chaos, change, bad news, layoffs, dropping sales … the list goes on and on. It may be hard to keep yourself focused on the future and what needs to be done today to make that future successful. Consider for a moment the effect that this chaos has on your staff.
When people are scared, they react in unpredictable ways. Think of the pilot who landed his plane in the Hudson River. The dialogue with the tower shows he was calm, collected and had no trace of fear. Pilots train to handle chaos and trouble in a professional manner. Have you done that with your staff?
Strategy, leadership, management and a professional business culture are important to success. In times like these, it goes beyond important to being essential. Too often, independent businesses have not made the commitment to implement this type of operation in the stores. Leaders have no process to adjust the strategy and then watch those changes propel managers in a new direction. Usually managers begin shouting orders in several directions instead of working with the team to establish a new direction. Staff members have no culture to rely on or accountability to a set of standards to work toward. They increase activity level under the umbrella of fear and misdirection.
Instead of motivating the team members to dig deeper and work together to increase performance, they scatter like chickens, running feverishly but not improving the bottom line at all. The importance of teamwork is amplified when the situation is tougher.
Winning@Business™ is a culture and a simple method to devise a relevant strategy, implement the leadership to make the right decisions based on that strategy and the management process to see that the decisions are implemented, measured and successful. Although a two-year head start on the current economy would be helpful, there are steps a retailer can take to bring the situation under control. The key steps are:
STRATEGY: Now more than ever a strategy is important to give the stores direction. Changes are happening so fast that a short-term strategy and a long-term strategy are necessary
LEADERSHIP: When there is chaos, leadership is most critical. In order to focus energies and achieve results, there needs to be direction. This is best achieved by a steering team. Some businesses may have only two people on this team: the consultant and the owner. Other businesses may have four or five key people on the team. Whatever the structure, leadership is vital to reaching success.
MANAGEMENT: Management is the process of implementing the decisions. Too often either the best salesman, the person who has been with the company longest or the highest ranking relative is chosen to be the manager. That person may not necessarily have the credentials or the skills to be a good leader. Without true management training and guidance, it is difficult to implement the right organization structure, hire the right staff, motivate properly, establish accountability , budget, provide the right compensation, communicate expectations clearly, provide effective feedback and the list goes on and on. Managing people is not intuitive, user friendly or trivial. It is important and often a lot of profits and potential are lost due to poor or marginal management.
TRAINING: Staff certainly must be motivated and given the right direction but there is more. Employees must also be capable to handle the job. That means that hiring the right people, proper orientation and training as well as an ongoing process for upgrading skills are important as a part of the culture.
Now, as the competition for fewer customers becomes more fierce, your sustainable competitive advantage will be the people who represent your stores. As always, your two most important assets are your people and your inventory! Now is the time to step up your focus on both.
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February 17th, 2009 at 12:27 pm
You are right about managers shouting orders and “fear and misdirection.” Too often when times get tougher, managers go about motivating staff through fear. I just read this blog post that touches on this subject http://www.thecomplexsystem.com/2008/10/fear-does-it-motivate-people.html#comments (and commented on it as well). Remember that motivating by fear is only a quick fix and does more harm than good. It does not build loyalty nor does it offer long-term results.