A Leading Fashion Retail Organization from India approached Origin Consultants to undertake an HR Consulting for Retail Project including Organization Development, Culture Transformation and Workforce Effectiveness .
The advice and value added focused inputs provided by Origin HR Consultants for Retail Industry improved the business, led to higher sales, streamlined processes, enhanced efficiencies, reduced people issues, controlled costs and brought about a performance driven positive culture that delivered substantial increase in profits.
HR Challenges at The Fashion Retail Organization
A fashion retail company, historically an industry leader, had seen its performance lag its competitors’ over a few years. Its overhead costs were significantly higher than the industry average. The organization culture was driven by a complex, oversized organization with a low performing workforce and unstructured and ad-hoc processes with minimum control.
The Board of Directors of this Fashion Retail Company Entrusted Origin HR Consultants for Retail with the responsibility to undertake an Organization Development, Culture Transformation & Workforce Effectiveness boosting project.
The Desired Objectives
- Bring the leadership closer to the business
- Reduce operational & overhead costs and bring them at par with the industry norms
- Build employee motivation and morale to improve sales
- Enhance workforce effectiveness for better profits
- Upgrade Customer Service levels to restore Brand Image & Customer Loyalty
- Set in transparent reporting and MIS system
- Create a result and performance-oriented culture for ongoing success
Discovery by Origin HR Consultants for Retail at The Study Stage
Post conducting a thorough diagnostic study of the current organization, Origin Consultants worked closely with the company’s leadership to determine the architecture of the organization and the findings were:
- Lack of Leadership Skills & Business Direction in the Senior Management Team.
- A laid-back culture lacking the pace needed for the quick changing and dynamic fashion retail industry.
- Behavioral and Attitudinal issues across levels that had to be addressed and resolved on priority.
- Decision making was ad-hoc and not structured or guided by Company policies.
- The MIS & Reporting structures did not reflect on the individual and team KRAs or the Organizations Critical Success Factors
- The Performance Management System was Task Oriented and hence not effective in measuring results or performance.
- Not enough checks and control mechanisms to important processes such as billing, inventory management, vendor management, sales, customer support and pilferage which were costing the organization dearly.
Origin Consultants Approach and Delivery
With joint decisions to address these findings, the assignment kicked off. Origin HR Consultants for Retail drove a detailed master plan for the transition. The team developed a comprehensive step by step plan to address all the challenges through effective communication with employees and systematic multi pronged HR interventions.
A central program-management office (PMO), co-staffed by Origin Consultants and the company’s best talent, oversaw the entire organization development and transformation and provided hands-on support to employees in setting and redesigning various processes.
Over an intense eight-month period the following HR improvements had taken place:
- A new organization structure was designed and implemented level-by-level
- New core processes were developed
- Relevant HR policies and procedures were designed and implemented
- Detailed job descriptions were defined right across the business
- Redundancies in operational processes and people responsibilities were totally removed for every location, department, and function
- New and replacement employees were appointed to positions through a carefully managed application and selection process,
- Retail SOPs were deployed throughout the stores
- Inventory audit and cash control systems initiated
- Managers’ KRAs and performance metrics were created to give all Managers a clear profit and loss accountability
- Similarly, all customer facing, back office and support staff were given KRAs with clear KPIs to fulfill the organizations objectives
- Sales incentives were designed to reward those who achieved their KRAs
- New employee communication processes were set in place
- Employee engagement and employee development programs were successfully initiated.
The Results Delivered by Origin HR Consultants for Retail
A comprehensive set of Business, HR and Sales & Inventory Control Processes was designed and successfully implemented in just eight months.
During this time, the organization was significantly simplified and streamlined; personnel numbers were reduced by 18%; losses due to pilferage at stores was reduced to zero; Employee Effectiveness drastically improved and a performance driven culture was in place.
As a result, the company’s sales grew by 28% and profit margin moved by 40% in two years.
Summary of Overall Impact on the Organization
- Leadership Competencies enhanced
- HR Policies & Procedures Implemented
- Talent Acquisition & Talent Pipeline Processes Set
- Behavioral & Attitude issues resolved
- Business & Sales Processes Streamlined
- Inventory Control & Pilferage Reduction checks in place
- Effective Sales Incentive Programs initiated
- Continuous Performance Management System (KRAs, KPIs & Metrics) delivered
- High Employee Motivation and Morale achieved
- Culture of High Pace and Performance achieved
Contact the Origin HR Consultants for Retail Team to set up a performance driven positive culture for your retail organization that delivers increased sales, improved customer service and profits.