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7/31/2019 Section S3Group9_RaleighRosse

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Raleigh & Rosse: Measures tomotivate Exceptional Service

By Group 9:


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Specialty retailer of luxury goods38 retail locations with average revenue per squarefoot of 1200$ significantly higher than industryaverage of 675$Extraordinary customer service, deep customerloyaltyStrategy: Own your business, own your customerrelationship

R&R DASHBOARD


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The following are the policy changesShifting focus from experienced sales professionals tocollege graduates and training themMaintaining internal promotions system thereby improvingthe experience level of mid mgmt. teamRevamped sales associates commission systemInvestment in ITGreater autonomy to sales managers

Sales per Hour ProgramMeasurement of sales associates by weekly salesSales managers were measured by standard metrics likerevenues, gross margin etc.

R&R ownership culture &SPH Program


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Introduction of SPH led to

More intense work environment

Sharking

Off the clock work hours

PROBLEM STATEMENT


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Managers tend to manipulate the system to improveSPHMandatory Saturday morning meetings were notallowed to be included in the work hoursVague distinctions between Selling time" and Non -Selling hours Flaws in Performance Management program

Problem Analysis


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Using an incentive plan does not make sense as : 1. Motivation is not a problem as theemployees are already known for their extraordinary customer service. The job is notstandardized and work flow is not regular.2. A sales person performs a number of miscellaneous tasks for customers and takes part innon-sales activities. Floor sales are not continuous or consistent.

The incentive program (SPH) does not align with their strategy:1. The strategy for the company is to promote accountability and entrepreneurship.2. SPH does not pay employees for non-sale hours spent on client relationships and henceemployees and also encourages the employees to report lesser number of hours to get higherincentives

The program is not completely motivational :No clear relationship between effort and reward

Complete standards are not set : The incentives are based only on value of sales made. Noqualitative aspects of performance are measured and rewarded

It has not been scientifically analyzed whether SPH increases performance

Five Building Blocks of Effective Incentive Plans


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Watkins should settle the lawsuit outside the court by paying its associatesand bringing about changes in the Ownership culture and SPH.Make modifications to SPH and re-implement. Draw clear lines betweenwork hours and non-work hours and ensure that only work hours arecounted for SPH rates. Non-work hours to be documented andrecompensed at a standard rate, thus giving employees the necessarymotivation.Incentives not just for numbers but also for relationships created andmaintained.Implement an annual bonus plan for store managers. This shouldincorporate not just ratings for achieving personal goals but should alsodepend on associates performances. This ensures that hard -work is notforgotten and will offer a bigger pay-out with continued efforts.Making store managers more accountable for sales associates throughbalanced scorecards.

Recommendation


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Thanks

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