Objective Setting

All of us are human and are more orientated to better performance in all aspects of life when performance goals and objectives have been set for us. This enables to work towards something which is achievable and to measure progress along the way. Herewith below some guidelines to assist you with your work related goals and that of your subordinates to improve organisational performance. 

Employee performance cannot be measured unless goals and objectives are set, preferably at the beginning of a performance cycle.  The manager is responsible for creating SMART objectives in discussions with the employee to ensure that performance expectations are established and that individual objectives are measurable and aligned with business unit and organisational goals.

 Key steps in the goal setting process.

       1.       Employee obtains company and department goals from manager

2.       Employee drafts individual objectives

3.       Manager reviews employee goals and prepares for discussion

4.       Manager and employee meet to set goals and objectives; employee updates their draft objectives as needed

5.       Employee includes objectives as part of the appraisal process

Manager’s Guide to Creating SMART Objectives

In addition to knowledge of the basic formula for establishing SMART objectives, the manager must ensure that individual goals are set collaboratively with employees and that there is alignment with business unit and company objectives.  Use the following checklist as your guide:

Manager’s Objective Setting Checklist

1.       Do these goals/objectives, taken together, align and contribute to the business unit objectives?

2.       Are there any interdependence's?

3.       Do they map into my Business Unit objectives?

4.       Will my direct reports agree with their objectives?

5.       Do these objectives represent the most important things we need to accomplish in the next (e.g. quarter, mid-year, year etc)?

6.       Are the objectives measurable and specific such that there would be no disagreement about whether they are achieved or not?

7.       Do they help move the company toward achieving its business objectives?

Creating SMART Objectives

When planning and writing goals for the upcoming performance period, it is important to frame them using an objective formula, SMART components, and metric guidelines.

Objective Formula

Action word + key result + target date + conditions

SMART Components

Below you will find a brief explanation of what is commonly know as the SMART components to objectives setting.

S pecific

Be clear and concise.  Identify the precise activity/task/project that should occur.  Address questions such as who, what, and when. This helps avoid confusion and conflict later on in the review cycle.

M easurable

You cannot manage what you cannot measure.  Measurable objectives give you a clear indication as to whether the objectives were met or not.  It helps increase the clarity when objectives are written in quantifiable terms, with specific numbers or percentages. Objectives that involve quality need to be defined because these are more difficult to measure.

A chievable

Identify ambitious stretch goals.  However, remember that goals should be achievable and reasonable depending on the position, level and resources available.

R esults Oriented

Objectives should be written as a tangible result or deliverable that you will produce (e.g.  increase production, decrease expenses, deliver product to market) not just behaviours planned to demonstrate throughout the year.  Do not confuse efforts with results.  Individual objectives must contribute to larger objectives of the business unit or function.  If they don’t, then they probably are not the most important initiatives.

 A few basic questions to ask about the objectives to ensure alignment with business goals:

—  Do they represent growth to you and the organisation?

—  Do they enhance group/unit goals?

—  Do they reflect the priorities of the group/business unit?

—  Do they support the Manager’s goals?

T ime-bound

Objectives should have targeted project milestones and due dates to help monitor progress.  This allows course corrections and enables the employee and the manager to understand the accountability to the overall project or business unit goal.  Factor in dependencies and be ready to adjust the time line as needed based on changes in organisational priorities.

For more information or assistance on performance management please call Master Retailing to assist in managing your employees more efficiently.

Performance Management

We live in a world that is constantly trying to improve and reinvent itself and this is only possible by improving on what has been achieved in the past. In today’s corporate or even our personal lives we are constantly aiming at higher standards, budgets, targets, efficiencies and the list goes on. The only way we can improve on what has been achieved in the past in to monitor and manage our current and future performance, known as performance management.

In a corporate world performance management is defined by Armstrong and Baron (1998)as a “strategic and integrated approach to increasing the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.”

There are numerous articles and publications covering performance management however we have tried to narrow it down a bit and take an overview of the essential elements and highlight the importance thereof.

In order to effectively manage performance a few key elements are essential. In order to ensure that performance management is effectively implemented and exercised we believe that these elements should be present throughout the process. Herewith the elements as follows:

 

·       Job Description/Profile

The job description/profile outlines and individual’s main objectives and performance standards expected of an incumbent in a particular position. This is normally obtainable from the Human Resources department. The job description/profile is the road map which should be used for various HR processes including recruitment,  performance management (that includes managing poor performance), establishing training needs, job grading, remuneration benchmarking and various other organisational development and talent management initiatives.

Unfortunately many organisations omit to implement or use job descriptions/profiles which could lead to employees feeling directionless and ultimately lead to employees being unhappy as a result of the lack of direction.

If you do not have a job description/profile be sure to ask your superior for a copy of the document as this will provide the blue print of what is expected of your position.

 

·         Objectives

We all have objectives in life, whether personal or professional, as this gives us direction and purpose. Preferably objects should not be pie in the sky material as then they would not be achievable and we would quickly lose sight of what we set out to achieve.

In the performance management process objective setting is a vital element as this provides the organisation with the goals and targets in order to improve on previous performance and takes the organisation forward. Goals and targets are normally set by organisations board or top management team after which a strategy is devised to achieve these goals and targets. From the strategy an action plans is formulated and in turn objectives are devised to ensure the action plan is achieved. Generally speaking this is a top down approach.

The difference between the job description/profile and objectives is that the job description/profile takes a broader view of what is expected of an employee in the normal course of their duties however objectives are current to your organisational and departmental/business unit strategy in order to ensure that energy is focussed in achieving current  and long term organisational objectives.

Therefore it is incumbent on every employee and manager to ensure objectives are set within the framework of the job description/profile to achieve current organisational goals and targets. This not only provides direction to your actions but it also acts as a yard stick on measuring performance and applying corrective action, if needs be.  We will cover more on objective setting, including SMART objectives in futures blogs.

·         Management Commitment

There are many performance management systems out there, whether good or bad however almost 90% of the time the success of any performance management system is determined by management’s commitment towards the success of the system. In order for any performance management system to be successful management would need to invest resources whether it be time or money to ensure desired outcomes are achieved.

Management would have to invest time into performance planning where employees and management would set objectives and subsequently engage in performance appraisals and coaching to give feedback on performance and correct performance. This is a vital step in any performance management process and it often happens that managers are consumed in their day to day operations to focus on individual employee performance and this ultimately ends up in being a lose lose situation where as a result of the omission to engage in performance management the business objects are not achieved because the sum of the parts of the system not being aligned. The employee objectives are therefore not aligned with management objectives.

Furthermore management would need to be prepared to invest money and reward performance where it is due as this can be a major attributing factor to employee morale in return performance.

·         Regular feedback

We would like to believe that most people would like to receive regular feedback on their performance. This is not only to the benefit of the individual employee but it provides an opportunity to align objectives and correct misguided performance. Often feedback sessions, whether formal or informal,  creates a platform for management and employees to openly engage on operational matters which in the end enhances organisational performance. It is therefore encouraged to have regular one on one session with employees and managers to ensure personal objectives are aligned.

Performance management when managed effectively can intensify effective delivery of organisational goals and generally there is a direct correlation between performance management and enhanced organisational performance. Some of the benefits of performance management may include:

Potential Benefits:

• Reduced turnaround times to create strategic or operational changes by communicating the changes through a new set of goals and objectices
• Improved sales
• Cost reductions
• Organisational alignment behind board/management goals
• Optimizes incentive plans to specific organisational objectives
• Creates transparency in achievement of goals
• Improved employee engagement through everyone understanding how their contribution is directly contributing to the organisations high level goals
• High confidence in bonus payment process and remuneration increases
• Individual development programs are better aligned directly to achieving business objectives
• Detect misalignment of objectives and implement corrective action at early stages
• Business flexibility and responsive to management needs
• Helps with audits and general compliance 
• Simplifies communication of strategic goals

For more information or assistance on performance management or HR business requirements please give Master Retailing a non obligatory call to discuss your business needs. 

Price is not everything

It is important to remember that price is not everything. Value is. There are many, many consumers out there willing to pay more for an item when they see value.

Benefits such as ... a clean, well maintained store that has an excellent reputation for both quality products and service excellence, professional staff that are both friendly and knowledgeable, staff that is mature and have good attitudes, staff who they have some rapport with and anything else that creates value for the customer.

Because....

There are many things that customers want and/or need, whether they articulate it or not, but they must see the value in what they buy. Let's not forget that people buy with emotion and justify with logic.
Granted, sometimes price is the only thing they care about...but that is usually based on the type of item they are purchasing. That is why international companies like WalMart and local companies like Makro, PEP stores etc as an example similar to them, do well. They get the sales based on price.

But if a customer wants the benefits I mentioned above, then price is not necessarily the first thing they think of when they're ready to buy.

The point is that if you own or manage a retail company, or store, that sells at higher prices...and if you are providing the value that people want...then you don't have to worry.
If, and when, your staff tell you that the competition is selling for less and that is the reason they are not getting the results you expect - ie: to meet their targets - be sure to check it out to make sure you're not way out of line, but don't give in to price cutting just because! It can be a downward spiral and, if you are offering the benefits people want, and if customers see the value in your offering, you don't have to be caught up in that downward spiral. Always refer back to your CVP (Customer Value Proposition) and if you don’t have one, consider contacting Master Retailing as this should be one of the cornerstones of your business.

One thing you must do, however, is make certain you have everything right. And, most importantly, the right staff...the ones who make customers happy to pay more!, in the end it is all about relationship building and creating a trust factor with your clients.

Consistency

All of us are looking for success in our retail businesses. Apart from and beyond everything else, sustainable success requires consistency. What do we mean by that?

We mean being consistently great in all aspects of our retail business.

Short term successes are possible due to some lucky combination of factors. But, we can't rely on lucky combinations. They are too few, and far between.

What we need to do is to set the foundations of our business right so that we can repeat our successes consistently.

This also has a profound impact on customer satisfaction. Your customers expect a certain level of performance from you on the basis of the perception you created. By being consistent at your skill set and service levels, you satisfy the minimum expectations.


And if you put a degree of constant improvement process in place, you'll create a winning combination for your retail operation. At minimum, some of the areas you must deliver on a consistent basis are:

1. Sales Skills (Trained staff on professional retail sales skills)

2. Quick response to all sorts of customer issues (Rapid response procedures in place)

3. Clean, tidy and efficient store environment (Great visual merchandising and maintenance)

4. Streamlined and customer friendly checkout process.

Pretty basic, right? Yet, just wander around the malls and shopping centres and see for yourself how many retailers are failing in consistent delivery of the basics.

Companies who understood this simple philosophy went on to create empires.

All the Success!

Master Retailing

The Power of Association

The Power of Association is too real: It might sound strange, but sometimes depending on your situation, the less you associate with some people, the more your life will improve.

Any time you tolerate mediocrity in others, it increases your mediocrity. An important attribute in successful people is their impatience with negative thinking and negative acting people. As you grow, your associates will change. Some of your friends will not want you to go on and act like a handbrake holding you back. They will want you to stay where they are. Friends that don’t help you achieve your best and are there for you and motivate you will want you to crawl. Your friends will either stretch your vision or choke your dream. Those that don’t increase you will eventually decrease you, the same applies to both your personal life and your work life, so ask yourself the question are you adding value to somebody’s life or are you taking away from it.

Consider this:

• Never receive counsel from unproductive people.
• Never discuss your problems with someone incapable of contributing to the solution, because those who never succeed themselves are always first to tell you how.
• Not everyone has a right to speak into your life. You are certain to get the worst of the bargain when you exchange ideas with the wrong person.
• Don’t follow anyone who is not going anywhere. With some people you spend and evening: with others you invest it. Be careful where you stop to inquire for directions along the road of life.
• Wise is the person who fortifiers his life with the right friendships. You have no doubt heard about “If you sleep with dogs, you are bound to get fleas” or “if you run with wolves, you will learn how to howl”, however if you associate with eagles, you will learn how to sour to great heights. As they say in the classics, “How can I fly like an eagle when I am surrounded by a bunch of turkeys?” Remember Eagles are not found with a bunch of turkeys, but eagles are found one at a time.

“A mirror reflects a man’s face, but what he is really like is shown by the kind of friends he chooses.” The simple but true fact of life is that you become like those with whom you closely associate – for the good and the bad.

Master Retailing wishes you good luck in this epic life time adventure and hope you make the right choices in life.

Tips on Peak Season Trading

Regardless of the economic outlook, you can rest assured that many people will be in your stores this holiday season. They may be working with a tighter budget, or they may not.They may be more discerning, or they may not. Whatever happens you still need to be prepared.

There are things you need to do to have your store, your staff, your management team and your merchandise ready. Here are some Peak Season Trading Tips, to help you make sure you’re doing everything you can to make the most of the holiday traffic that comes into your store:

Study History- Get out last year’s sales records, promotional calendar and staff schedules. Study them to see if there is anything you might do differently this year. If you were the Manager last year, try to remember the things that really caused things to breakdown. Learn from those things and safeguard against those same things happening again this year. Hint: If you do not already do this, make a point of noting all of the things that work really well and the things that don’t so you you’ll have the benefit of that information next holiday season.

Schedules – The Backbone of your Store-Make schedules for the remaining weeks before Christmas, as well as well into January and ensure you include in your schedule who’s going on leave and when, as well as possibly stock counts required after peak trading. Based on your sales targets, you need to figure out what kind of floor coverage you will need for each of the remaining weeks. These can be dummy schedules but they should fairly represent what your actual schedule should look like. It is during the making of these dummy schedules that you will come up with your plan for the holiday season with regard to floor coverage, stock replenishment, deliveries, receiving, cashiers, greeters, fitting room coverage, recovery of the store throughout the day and at night, etc. You’ll get a very good idea of how many temporary or casual employees you should hireif you have the luxury thereof. Hint: Once you know how many temporary employees you will need, prepare to hire at least 1 more and have another two on standby.

The reason you will want to schedule well into January 2012 is because of the trend toward the purchase of gift cards. After the main holiday event, many customers will come into your store to spend their gift card. You need to be as ready for them as you were for the pre-holiday gift buyers. So, whatever you do, don’t become complacent in January.

Employee Illness - Try to recall from last year: Did a lot of employees call in sick? Were there certain days where you were left without proper coverage? How did that affect your business? Were the temporary employees trained well enough to really add value to your business? What can you do to avoid the pitfalls of last year? Hints: 1) hire more temporary workers and train them better 2)make sure your regular staff are considered when making the schedule – the needs of the business comes first, of course, but your regular employees will have some particular dates that they really need to have off for Christmas shopping, family gatherings and holiday preparation 3) send sick workers home so as not to spread illness to customers and other staff members 4) make sure you are not working certain employees so hard that they become exhausted or disillusioned.

Staff Meetings– Don’t forget to schedule time for management team meetings and staff meetings. Some of the meetings will be short meetings just to touch base and others may be educational. Still others should be for fun and celebration. Remember, everyone is stressed during the holidays and anything you can do to make your employees’ lives a little better during this busy time will probably pay dividends. Hint: Appoint someone to organize a pot luck luncheon for some of your busiest days. This accomplishes three things. 1) it promotes a sense of camaraderie among regular and temporary employees and 2) it saves them from having to fight the line ups at the food courts; giving them more time off of their feet and 3) it gets them back on the sales floor where you need them on time.

Maintenance –Always important but now is the time to make certain that all of your light fixtures are working; your exit signs are lit, your fire extinguishers have been checked, your flooring and carpets have no turned up edges that can trip people, your POS and printers are working properly, your doors or door grills are in good repair, ceiling ducts are clean and dust free, fitting rooms are clean and welcoming, shelves are firmly in place to avoid accidents, no chipped glass anywhere, no rough edges on sign holders, the back room is well organized, the plumbing (if any) and any illuminated store signage is working properly, your delivery vehicles have been serviced etc. You won’t want to be spending valuable on floor and customer time taking care of pesky maintenance issues that could be taken care of in advance. Emergencies aside, your concentration needs to be elsewhere so…get it done now.

Don’t forget the rule of thumb of: Happy employees = Happy customers, so from all of us at Master Retailing, good luck, happy trading and remember don’t forget to have fun!J