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RETAIL INDUSTRY:
Process Redesign, Training, Direct Labor Pay-for-Performance |
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Client: |
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A
multi-channel apparel/home goods retailer with catalog, internet,
and outlet stores. |
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Problem: |
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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. |
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Approach: |
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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
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Results: |
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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
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