Client

A multi-channel retailer with catalog, internet, and outlet stores.

Problem

The organization needed to significantly boost quality and productivity and enhance the work culture within the facility. Their newly launched team-based gainsharing program was paying out large but uneven payments – worse yet, it was ranked as the least liked feature on a recent employee opinion survey.

Approach

To transform the company culture, we used a blend of process redesign, multi-variable performance goals, management training, associate coaching, and new decision support tools as foundation for an analytically based pay-for-performance program. Once the procedures were streamlined, the team then developed, statistically validated, and installed engineered performance goals. Most important, the supervisors were given a new set of tools to coach associates to high performance. Key success factors:

• Created a comprehensive policy that defined and upheld the spirit of the program
• Established new performance reporting tools and coaching guides
• Implemented lasting improvements in operational workflow, layout, and procedures
• Channeled client sponsorship throughout management and associate ranks
• Changed manager and supervisor focus and behavior to proactivestaff planning, associate coaching, and most importantly, performance management

Results

Productivity soared more than 35 percent. Employees were rewarded for their efforts with 12 percent bonus earnings for achieving 100% performance. Many earned more. Supervisors were rewarded for achieving performance goals of productivity, quality, staffing efficiency, and coaching / feedback effectiveness. The culture shifted to prioritize:

• Coaching and performance feedback as a regular, objective event
• Weekly and daily staff planning
• Public recognition of associates with high levels of performance and improvement

The company realized both financial and cultural benefits, including:

• Reduced labor costs through increased productivity
• Deferred capital on assets from lift trucks to workstations, and from RF scanners to parking spaces
• Improved quality and service performance during peak and off-peak times
• Reduced hiring and training costs due to lower turnover –the result of higher morale
• Clearly defined and objective performance expectations
• Recognition awards based on objective criteria valued by associates
• Daily, personal feedback on performance relative to goals –thus simplifying annual reviews
• Precise staff scheduling capabilities via integrated modeling tools