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Charting a course!

A couple of blog posts ago I wrote about trying to assess your store's production per employee as a way to monitor and improve profitability.

But today, as I plan my day, it started me wondering how many of you are planning yours?And then the next thought that occurred to me is how well are you directing your employees on their day? Planning...now there's a key to employee productivity.

Now before you shoot, I'm not talking about trying to micro-manage everybody's time. Hopefully your key employees are good at doing that one their own. I'm talking more about communication of overall goals and precepts that you want to adhere to.

As part of the store studies we undertake, we interview as many employees as we can. We try to assess how well the communication of an organization filters down from the top to the bottom. Unfortunately, we find that there are actually some retail establishments that hire personnel, give them a week or two's training, and then assume that they will do quite well on auto-pilot. They won't. Repeated training and reinforcement is crucial to honing a sharp staff.

The argument that is leveled against this throught process is often "there just isn't time".No dout, if your staff is being properly utilized now, it may be difficult to arrange time. Afterall, in the ideal world, we want all of our people to be busy all of the time, but truthfully, between you and me, is that really the case?

I often hear, retailers lament that they don't think their staffs are as productive as they could be and then in interviews it becomes absolutely clear that the staff does not have clear sense of direction.

Parting shot: If you begin a journey, you consult a map and chart a course. Make sure that the vision you have for your store employees is clearly defined too or they may never find there way.

 

Winter blahs!

This has been a particularly long winter in the north east corner of Kansas. I guess I say that every year, at least according to my daughter who lives in the much warmer San Antonio. Depending on your store type and its product offering, the cold and snowy weather is either a blessing or a curse, but regardless we're stuck with it. 

If you and your staff need a jolt and pick-me-up, consider tackling a challenging project that will keep everyones' mind on something other than the weather. Perhaps you're due for a little retrofitting in your sales space. Maybe it's time to analyze the productivity of your categories and decide what changes you need to make going forward. Perhaps its time to objectively assess your sales environment and really give some thought to how it might influence potential buyers.

Gather your personnel together and discuss ways that you might improve your store's presentation or customer experience. Monitor and record the feedback that you receive and try to get your crew looking forward optimistically to warmer weather by taking steps in that direction today. Changes that occur in spring need to be planned for and began now. In other words,  make sure that you're managing through action and not reaction. 

Parting shot: The weather is what it is. The economy is what it is. But your attitude is what you make it. Move forward and make it rosy!

 

Better Employee Production

As part of our consulting and strategizing sessions, using a tool we have developed called "Profit Explorer" we invariably come to the part of the session where we review wages as  percentage of sales. Fairly regularly we find the stores which are not as profitable as they'd like to be have high wage costs in relationship to sales. Often, however, the manager is very defensive, arguing vehemently his need for his current personnel level. But I'm also amazed how often in those same stores, during inevitable slow periods, I see the employees standing, waiting, and talking. Even so, I always observe during my short visits a laundry list of things that need improving in almost every store: signs needing changed or redone, product needing faced or dusted, clutter needing attended to....well, you get the picture. My point is this: if your current personnel level allows everyone to feel that there is plenty of time for anything other than the next task that is right in front of them as part of their assigned responsibilities, you probably have too much personnel.

You may argue that you maintain the level of personnel you do so that you are assured that each customer is attended in a timely fashion. I would have several points to make to you: 1. If you teach your personnel to acknowledge each new person who comes into your store, most will wait somewhat patiently for their turn. 2. Study your times of highest traffic, schedule personnel accordingly and cut back during slower periods. 3. As part of the regular store meetings you should be having, teach techniques to speed your sales process. 4. During this same period share with your personnel the fact that you must start monitoring production per employee to survive these challenging times (although you should monitor these factors during the best of times too).

Parting shot: Some managers find paring personnel extremely unpleasant. But your cost of wages is one of your largest expenses so make sure you are receiving maximum return on that investment.

 

 

 
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