RETAIL INDUSTRY:
Process Redesign, Training, Direct Labor Pay-for-Performance
  Client:   A multi-channel apparel/home goods retailer with catalog, internet, and outlet stores.
     
  Problem:   The organization needed to significantly boost quality and productivity and enhance the work culture within the facility. The client also desired to delay capital expenditures.
     
  Approach:   To transform the company culture, we used a blend of process redesign, multi-variate performance goals, management training, associate coaching, and new decision support tools as foundation for an analytically-based pay-for-performance program. Once procedures were streamlined and standardized, the team developed, validated, and installed engineered standards. Most importantly, the supervisors were given a new set of tools to coach associates to high performance, including:
  • Created a comprehensive policy that defined and upheld the spirit of the program
  • Established new performance reporting tools and coaching guides
  • Identified and implemented improvements in operational workflow, layout, and procedures
  • Channeled client sponsorship throughout the management and associate ranks
  • Refocused attention to proactive staff planning, coaching, and performance management
  •      
      Results:   Productivity soared more than 35 percent. Employees were rewarded for their efforts with 12% bonus earnings for achieving 100% performance. Many earned more. Supervisors were rewarded for achieving performance goals that incorporated productivity, quality, staffing efficiency, and coaching/ feedback effectiveness. The client culture shifted to prioritize:
  • Coaching and performance feedback as a regular, objective event
  • Weekly and daily staff planning
  • Public recognition of associates with high levels of performance and improvement

    Through the scientific approach applied, the company also realized significant financial benefits, including:
  • Reduced labor costs through increased productivity
  • Deferred capital on assets from lift trucks to workstations, and from PCs to parking spaces
  • Improved service performance during peak and off-peak times
  • Reduced hiring and training costs due to lower turnover - the result of higher morale
  • Better quality resulting in reduced returns and rework
  •        
       
    Return to Project Briefs View next Project Brief >>
     
    About Us | Capabilities/Practices | Projects/Results | Our People |
    News/Events | Publications | Clients | Careers | Contact Us | Home