Problem management
- 1. Hacking the Problem Leading Change in Management Chris Mata
- 2. The Body Shop • Classic retail story gone bad • Location Emeryville, CA • Sales of cosmetic products • 10 employee, 1 young female manager
- 3. The story • Expected to meet sales goals, membership card signups, and keep up with an average minimum transaction amount • Overambitious manager that sets unrealistic sales goals • Forced competition resulting in disengaged sales associates. • Commissions didn’t exist yet the store operated as if it were • Associates fight over customers and push sales tactics • Praised for meeting goals and scolded if you didn’t. • Manager criticized individual performance in front of coworkers • Associates were also blamed for customers not making purchases. • The manager ran an “every man for himself” store with no incentives for teamwork and created a place where no associate wanted to be.
- 4. Developing Holistic Performance Measures Barrier: Everything was about numbers. Praise for meeting goals or scolded if you didn’t” HACK: Adding & changing performance indicators
- 5. • No “sticks and carrots” • Employee Related: Growth & skills development • Operating Indicators: Reliability, on-time Errors/returns, Cost of quality • CS Indicators: Overall CS, Compliments vs. complaints, customer retention • Financial Performance: Sales as a team, notional margin, return and exchange rates
- 6. Increasing Trust & Reducing Fear Barrier: Unrealistic sales goals HACK: SMART Goals
- 7. Humanizing the Language of Business Barrier: “Manager criticized individual performance in front of coworkers” HACK: Human Relations Model
- 8. Guidelines for Giving Feedback: • Motivation, ensure receiver open and ready to hear you out • Feedback given in private place that allows for dialogue • Give the receiver time to respond • Develop a joint action plan to positively improve the behavior
- 9. Taking the Work Out of Work & Amplify Imagination Barrier: “The pressure forced competition and resulted in disengaged sales associates” HACK: Inspire teamwork, creative problem solving & make work fun!
- 11. Recommendation Summary 1. Adding and changing performance indicators 2. Setting SMART goals 3. Conduct frequent constructive evaluations in a closed off area to avoid distractions 4. Inspire teamwork, not competition between employees to reach goals, and make work fun!
Editor's Notes
- #5: Barriers:Sticks and carrot approach to feedback. Reflects Managements key valuesMotivates some but can lead to high absenteeism and turnoverHACK: Other performance measuresEmployee Related:Growth and skills developmentOperating Related: Reliability, Errors/Return rate, Cost of qualityCustomer Satisfaction:CS complains vs retention