The Good Jobs Strategy
LEAP HR Retail
Sarah Kalloch
February 8, 2017
1913 Highland Park, MI
Why is it that I always get the whole person
when all I want is a good pair of hands?
©Zeynep Ton 2012
Human-centered operating system
©Zeynep Ton 2015
A similar revolution is likely in
retail settings.
©Zeynep Ton 2015
Assumption: People=Cost
Low labor
budgets
Low
quantity &
quality of
labor
Low sales
& profits
Operational
problems
©Zeynep Ton 2015
Trends
• Min wage hikes in cities/states
• Scheduling legislation
• Competition & slower growth
• Omni-channel
©Zeynep Ton 2015
Companies that pursue
operational excellence
through a Good Jobs
Strategy will win.
©Zeynep Ton 2015
What’s their secret?
Higher wages,
more benefits
Higher
performance
Not that simple!
©Zeynep Ton 2015
Human-Centered Operating System
Need for capable, motivated people
Operational
Choices
that increases
contribution, productivity,
involvement
Investment in
people
Need return on people investment
©Zeynep Ton 2015
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
Focus/Offer Less
Does your product/service offering leverage employees?
1.
2.
3.
Product and service offerings allow employees to be knowledgeable about the products and services the
company offers.
Product and service offerings enable employees to work productively and serve customers well.
There is a process for informing employees about product or service changes (product changes, price
changes, location changes).
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
Standardize and Empower
Standardize:
•
•
•
•
Work Methods
Management Practices
Communication
Improvement
• Does the company have mechanisms to hear problems/ideas from frontline employees?
• Does the company have mechanisms to evaluate, pilot and spread ideas?
• Does the company use a standardized practice for chain-wide improvement?
Empowerment:
• Empowering employees to be involved in improvement
• Employees can use their judgment to do what’s best for their customers.
• Employees are empowered to provide input for merchandising (three types: how much
inventory, which products, where to display them)
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
Dominant approach to managing traffic
variability
Chase Strategy
Traffic
Staffing
(Sasser, 1976, Atkinson, 1984—numerical flexibility)
©Zeynep Ton 2015
Cross Train
Cross Training
1. Employees are cross-trained to perform a variety of tasks, both customer facing and
non-customer facing.
2. Cross-training is done in a way that also ensures some specialization and mastery.
3. Employees shift between tasks depending on customer demand.
Scheduling & allocating employees to tasks
1. Store managers have an effective process for scheduling employees in a way that
works for employees and for the store.
• Can think in larger chunks of time because workforce is flexible
• Can provide more predictable schedules, further in advance
2. Employees have clarity on who works in their area/department and when, when
tasks are complete and by whom, through visuals or other communication tools.
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
Dominant Approach: Understaff
Expected workload=500 hours
Increase
sales
Reduce
costs
Time for improvement
©Zeynep Ton 2015
Operate with Slack
1. Staffing Levels:
• The company staffs the environment with more labor hours than the
expected workload.
2. Manager Time:
• Managers don't hesitate to do the work that frontline employees do…
BUT
• Managers spend most of their time assigning people to tasks,
providing feedback, and developing people, not doing work tasks.
3. Cross Network:
• There are field employees who serve as links between stores to
inform, teach, and tell stores what are happening across the network.
Employees have time to:
• Do their job well
• Do their job safely
• Help customers
• Contribute to
improvement
The Good Jobs Strategy
Focus/
Invest in
people
100% commitment to values :
Customers, employees, improvement
Invest in People
Stable Base: Pay, Benefits and VERY Critically, Scheduling
Then:
1. Are people capable of doing the work?
• Hiring and Onboarding: Hire for key attributes, selection is rigorous, clear
understanding of job and schedule, respect at every juncture
• Training: Training schedule is clear and trainers are prepared, hands on,
training is evaluative
2. Are people motivated to do the work?
• Performance Management Systems
3. Are people supported to develop at work?
• Promotion from within=crucial
The Good Jobs Strategy
Focus/
100% commitment to values :
Customers, employees, improvement
100% Commitment to Values
Customers
Customers
The company put customers first.
Employees
Employees
Improvement
The company believes employees are their most
productive resource—not just a cost center.
There a culture of continuous improvement.
Reality: People=Your Greatest Asset
Higher labor
budgets
High
quantity &
quality of
labor
High sales
& profits
Operational
excellence,
innovation,
agility
GJS Outcomes
Employees
Customers
Investors
• Low Absenteeism
• Low Turnover
• High Engagement
• Higher Internal
Promotion
• Reputation attracts
top talent
• High Customer
Satisfaction
• High Ticket Spend
• High Conversion Rate
• Frequent Visits
• High Loyalty
• Higher Sales
• Lower Costs
• Better Operational
Performance
• Higher Productivity
• People
• Space
• Inventory
Jobs with meaning and dignity
©Zeynep Ton 2015
Resources
•
•
•
•
•
•
•
•
•
The Good Jobs Strategy Book
Good Jobs Strategy Assessment Tool (forthcoming)
Good Jobs Strategy Transformation Framework (forthcoming)
Good Jobs Strategy Score:
http://martinprosperity.org/about/good-jobs-score-2016/
Executive Education: Good Jobs Strategy at MIT in July
Case Studies: Mercadona, Quick Trip, Container Store (HBR),
Managed by Q (MIT), and more coming
Blogs and Articles (see zeynepton.com)
Interviews with CEOs and employees (forthcoming)
What else do you need to be successful? How can we help?
We are excited to work with you to
make every job a good job!
Questions, Ideas, Contacts, Collaborations?