“Clients do not come first, your associate’s come first, if you take good care of them, they will take care of your clients.” – Richard Branson
Although the focus of this post is on “Retail Management,” the issues discussed are transferable to many other sectors.
Retail management can make you feel like a “pin-ball” some days as you juggle the inevitable day to day questions and issues that fill a manager’s or supervisor’s day. It is important to remember that the interruptions that keep you from doing your job actually are your job! Taking care of your associate’s questions and allowing them to look after your customers or your clients is really, what makes a manager successful.
To add a framework around those questions, it is important that as a manager, you don’t lose sight of these key components of your organization:
Training – In my experience, training is perhaps the most important aspect of a manager’s function and is underdeveloped in most organizations. A training checklist should follow your on-boarding procedures. These checklists and procedures should be constantly reviewed and updated after each new associate completes their initial training. These systems are key in building and enhancing your culture and the attitude of your associates. Continuous training of your established associates should be another major focus. Daily and weekly meetings and training sessions will give your organization key competitive advantages.
Recruiting – Most small and medium size companies do not have the depth of recruiting experience larger organizations have; however, creating and using a standard interview questions is not difficult and should include a two-interview process. Remember though, to design each employment opportunity and tailor your posting and interviews to find the best person available.
Marketing – I believe in competitive advantages, what makes you and your company better than everyone else? What makes your organization different needs to be the focus of your marketing? When you look at most advertisements from any media, so many of them look the same from ad to ad and company to company. Make your advertising and marketing stand out.
Advertising is expensive and how do you spend your limited money wisely? Measure and keep track of your traffic and sales when you run an advertisement. Ask your customers “what brought them in?” Be cautious of anyone who tells you what works and what doesn’t from a general “urban” point of view, unless they know your market. Always be looking for ways to innovate and keep your advertising fresh.
Cost Control should be divided into several sub-categories:
Inventory – Make sure that you take advantage of any terms offers that your supplies have available, as cash flow is always a primary concern for small and medium size companies. The goal is to turn your inventory and improve your turn’s profitability. Reviewing tools like Gross Margin return on inventory GMROI should be part of your daily tasking. Unless you are holding inventory for a specific customer, nothing you have in your inventory should be more than 3 months old. Returned merchandise should never be more than 1% of your total inventory and you should have a well-oiled mechanism for moving this product out the door or back to the vendor.
Margins – You should know the margins you are getting on your products and you should regularly spot check to ensure that it is accurate. I worked for an owner, who was one of the very best Home Furnishings franchise owners and he built his organization around fundamentally knowing the accounting side of his business better than any other owner. You need to be competitive, and you need to understand that your financials are showing and know that they are correct.
Supplies, Tools, Variable Expenses – Without micro-managing your associates, you and your key people should always be looking to eliminate waste and to save money without sacrificing service or sales; for example, buying office supplies locally may not be the most inexpensive method; however, the local people that they employ may be your customers; and therefor worth the extra cost. Having lights on timers or motion sensors may save hydro. Look at all of your expenses to ensure that your organization is receiving value for each expense.
People – Everyone should always ask themselves: “Is what I am doing adding value to the company”, making your associates feel like they “own the store” and trusting them is a good way to get them to act responsibility, as long as you have checks and balances in place. Make sure all of your associates earn a living wage and that your associates can also afford your products.
Price Competitiveness/Flexibility, on any given day someone might be advertising a lower price than you; however, given the bundle of products you sell if you are always competitive and regularly check to ensure you are, you will win more often than you lose. Matching a competitor’s price is always good because failing to do so, will give your customer a reason to shop there and foster the possible belief that everything else is also cheaper. Giving your associates the freedom and latitude to “work” a deal as long as it is monitored can also help to drive sales.
Awesome Customer Service, simple things like smiling and having a friendly tone with every customer and supplier is a key fundamental aspect of good business. Making your company’s atmosphere fun and the culture of your associates upbeat, doing what you say you will do, doing more than what is expected or more than what your customer expects; these are all things that cost very little but that give you a strong competitive advantage. Shake things up, ask for ideas from your associates, have specially themed events with prizes for the best ones.
Managing your people, most associates want to be praised when they do something positive. Associates want your guidelines and rules to be enforced if someone is abusing them – but not with wide brush strokes. Use the axiom: “Praise in public, correct in private.” They want to know that problems are taken care of, they want responsibility and to be trusted, they want to feel that they make a difference, they want the ability to grow and learn more, they want a culture of positiveness, and they want to be paid fairly. While money is not always the number 1 motivator, if you have never paid a “cost of living” increase and you have been in business for more than five years, your people will be making less “real” money every year, and it is only a matter of time before they will leave.
Execution and Implementation, there are so many great ideas and concepts available to every business; however, the ability to plan, implement, and then to EXECUTE those ideas is very rare and that is perhaps the most important “competitive advantage” you can have.
Driving the organization, interruptions and distractions happen. For many managers dealing with questions and interruptions really is their number 1 job. It could be to checking pricing, calling for back orders, dealing with questions from associates, and handling a difficult customer service issue. All of these are important; however, ensure that you have sufficient time to be focused on driving opportunities for the organization. If at the end of the day, all you have done is put out fires and maintained the status quo, then you have slipped backwards. I am aware of one furniture company where the owner drives the delivery truck three days a week. While is it great that this owner interacts with their customers on a daily basis, one cannot help but wonder, what is taking a backseat while they are out on the road. Also, is really the most productive use of their time?
Day to day management of retail is not glamourous, it is hard work, but it is the key to your success. Building an empowering your team and constantly training them will make you and them successful. It is not easy and not everyone is always going to be happy; however, it works and your customers will appreciate your efforts.
Good luck,