Thursday, February 18, 2016
What Not to Do
One of my coaching clients recently told me of something that she witnessed while working for a major retail technology company.
The story goes something like this: the VP of retail operations was going over his quarterly margins one day and decided that he could do better. By his estimation the floor staff was too "fat" and he thought if he trimmed things down substantially the numbers would look much better. They weren't bad to begin with, but the VP thought , "I have the opportunity here to really make myself look pretty amazing."
The quickest way to get profit is to slash costs. He cut the hours of the full-time employees and the part-time employees lost half of their hours without explanation. Fearing the company was in trouble, or at the very least, that particular location, a mass exodus began.
By the time the word got out, there barely remained enough employees to throw together a skeleton crew. Soon customers started to notice long wait times and worse service. So the short sightedness of that VP's decision to "trim the fat" resulted in poor customer satisfaction, low retail sales numbers, and ended up costing way more for recruiting and training replacements. So much for looking amazing.
Don't do this!