The Challenge
One of the nation's largest retailers decided to develop a consistent way of doing business across the company's multiple divisions, an initiative that would affect their organizational culture. The goals of this effort were to create the best work environment, to attract and retain top talent, to create an exemplary shopping experience, and to generate shareholder value.
To achieve the goals of the organization, the company determined that developing the leadership and decision-making skills of its store managers, divisional merchandising managers, divisional directors of planning, and vice presidents would be necessary. These positions were responsible for translating merchandising strategies into tasks for their people, developing skilled employees, building relationships across the divisions, negotiating effectively, and understanding how daily decision-making affects the overall shopping experience for customers.
SMG’s Solution
SMG initiated a collaborative process to clarify objectives, interview business experts, build scenarios, and create a financial model. This approach resulted in a blended solution of mutually reinforcing instructor-led workshops and business simulations that mirrored the retailer's environment.
The first stage targeted the store managers, whose critical role interacts with employees and customers. The managers underwent a four-day workshop featuring an interactive simulation. Participants learned how to use new tools and techniques to take back to their respective stores and pass along to their employees. The simulation presented the managers with real world scenarios that took place over two simulated years. The store managers set strategies, reacted to the experiences, and tracked the impact of their decisions, both short-term and long-term, on their business.
SMG also created a second solution for the executives responsible for many of the processes around merchandise: negotiating, buying, planning, pricing, distributing, and tracking. The simulation for this initiative involved realistic marketplace issues that these executives face over the course of one year. Daily issues were presented as well as seasonal ones. It also developed their long-range and short-term decision-making skills and provided feedback on each perspective.
Results
The program received consistently high marks from the participants. It was the most positive feedback the company had ever received on a learning initiative. An internal study revealed a direct relationship between the program and measurable business results such as sales volume, profitability, and customer service satisfaction. The company also received a national award as one of the top four retail organizations in the country. By developing their leadership skills and abilities, they created a better working environment and generated positive business results.
