Course 1 - Leadership Principles Sections 101 & 104 Flashcards
Lindsay 101 Ajla 104
LPC 104 A - Building and Leveraging Partnerships Notes
Partners should have the skills, support, desire and ability to participate in and contribute to the alliance.
It is important to remember that each partner may have different primary interests. True partners will respect and honor those differences, and should expect nothing less in return from others that are a part of that alliance.
Partners should be willing to be flexible and compromising. Open minds lead to real and lasting partnerships, participation, productivity and solutions.
Partners should be forthcoming about their expectations, objectives, abilities and limitations.
Goals should attempt to accommodate the needs of the individual partners. Look for win-win opportunities and explore the means to meet common needs as a primary goal.
What are some of the common practices associated with successful partnerships?
All partners should make an appropriate contribution to the partnership. In the most strategic partnerships the participants are willing to work together at all levels and stages of the process.
Good partners are willing to acknowledge the work of their allies. This is a simple but effective way of ensuring that all parties feel valued.
Effective communication is the cornerstone of successful partnerships. Keep people informed and be a good listener.
Most importantly, partnerships are built on a foundation of credibility and trust. Dishonesty, breaking confidence and inappropriate actions can decimate a partnership. Once trust and credibility are lost they can be extremely difficult to regain, and the relationship may never be the same.
Why is it important to build effective working relationships?
Effective partnerships strengthen the business, providing the trust and focus that makes us more efficient. By sharing responsibilities, resources, competencies, and ideas we also put ourselves in the best position to share the benefits and rewards; making the whole much more valuable than the sum of the parts.
LPC 104 B - Internal / Organizational Partnerships Notes
Truly effective partnerships involve much more than sharing responsibilities. We also have to share ideals and understanding.
It is a common cry in the loss prevention profession that the other areas of the business “really don’t understand what we do in loss prevention.” There are those that feel that there is a narrow perception of our department, and limited awareness of what we actually do.
What is the primary role of the Operations department?
The primary role of the operations team is to enhance the profitability of the company by driving sales, minimizing losses, managing the sales team, and serving the store customers. The “field generals” of retail, they are responsible for the overall quality and day-to-day execution of programs, policies and procedures in the stores, and keeping the business running smoothly.
They oversee the original presentation of merchandise to the customer, store staffing, inventory control, sales management and store maintenance. Store, District and Regional Operations Managers also typically serve as the liaison between the stores and the corporate offices; communicating information and directing company initiatives.
What is merchandising?
The basic principles of merchandising can be categorized into two primary components. What are they?
Merchandising refers to the methods, practices and operations conducted to promote the sale of products in our stores. In order to ensure profitable sales plans, companies go to great lengths to make sure that they sell the right products at the right time and at the right price, and then present those products to the customer for sale in an appealing way so that customers will want to buy their products.
First, we must consider the many different aspects that are involved in selecting the products that we buy and resell as a company. We then can review the process by which those products are presented for sale in the stores.
What is the role of a Merchant/Buyer?
A person who selects and purchases the goods and services that are resold by the company to customers. Their primary responsibility is to continuously identify relevant products that fit the needs of the business, and obtain the highest quality goods at the lowest possible cost.
What is the role of a Merchant/Buyer?
A person who selects and purchases the goods and services that are resold by the company to customers. Their primary responsibility is to continuously identify relevant products that fit the needs of the business and obtain the highest quality goods at the lowest possible cost. At a much higher level, buyers are also responsible for managing the relationship between the manufacturer and the retailer. These purchasing professionals rely heavily on the accurate and timely communication of sales and stock information in order to keep the product moving and the stores properly supplied with merchandise.
Communicating loss prevention comments and concerns with the Buyers is also important. Our ability to share thoughts and ideas regarding merchandise issues, as well as our willingness to listen to and understand selling strategies can be mutually beneficial and best serve the ultimate goals of the company. For example, damaged goods and Return-to-Vendor items, Source Tagging, product packaging, and other programs and practices can be greatly enhanced through a strong working relationship with the Buyers. Our ability to effectively communicate with the Buyers can also contribute to new channels and innovative prospects for product development and presentation that can improve selling strategies while reducing loss opportunities.
What is the role of Visual Merchandising / Display?
Merchandising also refers to the practice of presenting the products for display in the stores. Appealing displays attract the customer to specific merchandise, draw customers into the stores as well as individual departments, and present accessorizing/add-on sales ideas for the customer that can lead to additional sales opportunities. Featured store displays as well as individual product presentations are both important aspects of sound visual merchandising practices.
What is a planogram?
A planogram is a diagram that shows how and where specific retail products should be placed in order to increase customer purchases. Planograms can be developed for different types of merchandising displays (shelf displays, racks/rounders/waterfall displays, pegboard displays, etc…). They are developed by using information about the products such as inventory levels, sales per square foot, and other pertinent selling information. By analyzing past and current sales patterns, decisions can be made regarding the way that merchandise should be displayed, and what products should surround it in order to maximize sales opportunities.
What are some of the loss prevention advantages of a successful visual merchandising plan?
Most often we consider the affects of physical structures, proximity of product to the doors, blocked cameras and other similar concerns when discussing the topic of visual merchandising. But there are other aspects of a well-merchandised store or department that are much more valuable to our efforts.
A well-merchandised department will enhance sales—the reason that we are in business. Additionally, as shrink numbers are determined as a percent to sales, the higher the sales, the lower the shrink percentage.
A well-merchandised department displays order and control; two aspects that a dishonest customer has a tendency to avoid
A well-merchandised department will draw more legitimate customers into the area, limiting certain opportunities for the dishonest customer.
Employees will tend to spend more time in an area that they are expected to keep orderly.
An employee will tend to pay closer attention to anyone entering the area, simply because they will be concerned that the customer might “mess up” the area. An employee will also tend to be more likely to assist a customer entering the area for similar reasons.
What is Human Resources Management?
Human Resource Management is the strategic approach to the management of a company’s most valued assets—the people working for the company who contribute to the achievement and success of the business. Our people drive the organization and make it work; and in order to maximize effectiveness the potential of our employees—their time, talents, ideas and capabilities—must be well managed.
What is Human Resources Management?
Human Resource Management is the strategic approach to the management of a company’s most valued assets—the people working for the company who contribute to the achievement and success of the business. Our people drive the organization and make it work; and in order to maximize effectiveness the potential of our employees—their time, talents, ideas and capabilities—must be well managed.
Ultimately, the goal of the department is to effectively manage and utilize people and support the profitability of the company by increasing the innovation, creativity and flexibility of our employee base; developing competencies that enhance individual and organizational performance; and applying new approaches to work process design, succession planning, career development and organizational mobility.
What are some of the key functions managed as part of those responsibilities?
Staffing & Hiring Processes, Compensation, Benefits, Personnel Record Keeping, Training & Development, Performance Appraisals, Other Performance Evaluation & Management, Other Employee Relations, Health & Safety, Strategic Planning
What is a supply chain?
A Supply Chain is the stream of processes that involve the movement of materials as they flow from the supply source, through the production and distribution processes, into the stores and to the customer. This would include purchasing, manufacturing, transportation, customer service, planning departments and other related job functions. It is made up of all the people, activities, information and resources that are involved in moving a product from the supplier to the customer. Managing the process is simply known as Supply Chain management.
What is the purpose of a Distribution Center?
What are some of the typical services that may be run out of a retailer’s Distribution Center?
A Distribution Center is a warehouse or similar structure that is stocked with products that will be redistributed to the individual retail stores. Typically, a retailer will establish Distribution Centers throughout their commercial market areas, with individual sites serving anywhere from a few stores to better than 100 store locations. Our many different vendors/suppliers will ship large quantities of products to the Distribution Center, where it will be stored until needed by the particular retail locations. Typically, all Distribution Centers will have at least 3 main areas: the Receiving Dock, the main Warehouse or storage area, and the Shipping Dock. There may be any number of additional/specialized areas based on the needs and practices of the particular business. As the product is needed by the stores, items will be “picked” by the Distribution Center employees and shipped to the appropriate store location.
Other retailers may outsource this function to dedicated Third Party Logistics (3PL) providers that may coordinate this process for a number of different companies. Some retailers may also utilize both methods based on specific needs. Companies may also run other business services out of their Distribution Centers, such as E-commerce, catalogue, credit card services and other specific company services.\
What is Information Technology?
Information Technology encompasses all forms of technology used to create, store, exchange, protect and use all of the different forms of IT company information. Particularly associated with software applications and computer hardware, it involves the study, design, development, implementation, support, and/or management of a company’s computer-based systems. The Information Technology (IT) department manages the technology and computer infrastructure that drives an organization’s business systems. They can perform a variety of duties that range from installing applications to designing complex computer networks and information databases. In some companies, the IT department may also be referred to as Management Information Systems (MIS or IS) department.
What are some of the primary responsibilities of the Information Technology department?
Our computer networks, email, automated office equipment and other electronic systems commonly fall under the IT responsibilities. Point-of-Sale (POS) terminals not only complete and record transactions, but also send information to a computer database that updates inventories, records all transaction information and can be used for any number of management applications and functions. The IT services result in rapid processing of information as well as improved reliability and integrity of processed data.
Managing all company computers, desktops, laptops, POS systems, and other system peripherals. This may also include installation of new hardware and software programs, license administration, equipment maintenance and repair.
Technical Support. This may involve troubleshooting support, providing assistance over the telephone and/or managing technician support when sent to the location to resolve more serious problems.
Communications. Maintenance of the telephone and computer systems that support voice systems, voice mail, email, message boards, Internet use and connectivity, company websites and all other vital communication systems. This may also involve managing third-party service providers.
Business Applications. Developing and maintaining the different company systems and applications to include sales, financial, employment records, audit, inventory, pricing, billing/credit, distribution/supply chain, general office administration, exception reporting systems, business supplies and other important organizational applications that are critical to the successful operation of the business. All of this information is tied together to make key business decisions, and is embedded in everything that we do.
Network Management. Ensuring that the computer network is always available and the network is safe and information is secure at all times is the most important task of the IT department. This not only involves connectivity issues, but monitoring the firewall, servers, and other equipment necessary to keep the system safe, secure and working at peak efficiency.
Strategic Planning. Researching, developing and executing plans that keep the company up-to-date with advances in technology, technical equipment and software applications are necessary to ensure that the company remains contemporary and competitive is crucial to the growth of any retail business.
What is marketing?
What are some of the primary aspects of a marketing strategy?
Marketing will encompass the total process of planning and executing the conception, pricing, presentation, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain our relationship with the customer.
Advertising is a company’s way of attracting public attention to our products and our business. It is also a means of informing customers regarding specific items or prices through the purchasing of time/space/content from print, broadcast, or electronic media sources. But Marketing also helps to position the company, and the company brand. It helps to establish the image of the company, and helps us to confirm our niche in the retail community. Our relationship with those in the Marketing department helps us to remain proactive with the company’s business plan, more aware of current and upcoming products and designs, and more involved in company strategies from a global perspective.
What are some of the typical responsibilities of a retailer’s legal department?
Providing strategic legal advice regarding both customary and complex matters, their goal is to identify and reduce those exposures by developing practical and legally sound solutions consistent with the business and financial objectives of the company. The Legal department will serve as a confidant and trusted advisor to Senior Management; and partners with all of the various departments throughout the organization to provide strategic, high-level legal counsel and services in all areas of the law by coupling legal analysis, research and reasoning with sound business judgment in all types of different contexts. Their goal is to place the company in the best legal and business position possible while limiting the legal exposures to the company.
Providing legal advice for all major business transactions. They provide counsel on a broad range of corporate matters, and the legal implications of all matters related to the business, to include corporate governance, regulatory compliance, securities filings, financings, mergers and acquisitions, dispute resolution and other related issues.
Drafting, reviewing and negotiating all types of agreements, and the development and implementation of contract terms and policies that govern retail contracts. They will manage deal terms and conditions, transaction processes and legal structures. They will identify business and legal risks when negotiating and resolving contractual issues to enhance benefits and reduce risks.
They are involved at all levels of the company’s operations, to include corporate issues, Sarbanes-Oxley compliance and liabilities, securities, litigations, intellectual properties, license, trademark and copyright issues, Human Resources/employment issues, information systems, supply chain issues, loss prevention, and other departmental issues.
Participation in the consideration, development and execution of business objectives and strategies for the company. They oversee the establishment and enforcement of internal policies, procedures, practices and programs to ensure compliance with all laws, regulations and legal standards.
Assisting the company in all types of compliance efforts. They develop and implement procedures necessary and/or advisable related to the company’s insurance, safety, risk and crisis management objectives in order to protect the company and reduce potential exposures.
They will prepare, draft and review various required public reporting documents for filings with the Securities and Exchange Commission, and company compliance with applicable local, state, and federal laws and regulations.
Providing assistance and legal oversight relative to the company’s investor relations and public relations activities.
Providing counsel for real estate hearings, mall-related issues, and other similar matters.
Managing overall responsibility for litigation matters for the company, to include civil and criminal court issues, merits of disputes and court cases, appropriate defense, prevention and strategic measures, and the negotiation and approval of settlements when and where necessary and appropriate.
What is Senior Management? What are some of their core responsibilities?
Senior Management is the core team at the highest level of organizational management within a corporation who maintain the day-to-day responsibilities involved in managing the company. Typically comprised of operating Vice Presidents and Directors, this generally encompasses all members of management one step below the Executive Officers.
Senior Management sets strategy and defines the long-term priorities for their departments or area of responsibility based on the needs of the organization, establishes how to allocate resources effectively, and determines how to use the human, financial and material resources allotted to their area of responsibility most efficiently and effectively. They are ultimately responsible for understanding critical business processes, and establishing the plans necessary to successfully and proficiently meet business objectives.
Senior Management is responsible for implementing the policies, procedures and strategies approved by the company Board of Directors. It is their job to ensure that the company has effective management and control processes, reliable measurement and reporting systems, and a competent staff to carry out the company objectives. While a member of Senior Management may have responsibility over more than one department (depending on the needs and practices of the particular organization), every functioning department will have a member of Senior Management overseeing the department.
What is an Executive Officer?
Executive Officers are generally the top officers within a corporation, although the exact nature of the role may vary depending on the particular organization.
What is the role of the Chief Executive Officer?
The Chief Executive Officer, or CEO, is the highest ranking executive within a retail organization, and has the ultimate managing responsibility for the company. Reporting to the Board of Directors, the CEO is responsible for carrying out the policies of the Board on a day-to-day basis. Other duties include developing and implementing high-level strategies, making key corporate decisions, managing the overall operations and resources of the company, and serving as the primary liaison between the Board of Directors and corporate operations.
What are some of the executive positions that may support the Chief Executive Officer?
Chief Operating Officer (COO) – The officer primarily responsible for strategic and tactical operations management. Otherwise known (in some companies) as the President or Executive Vice-President, the COO is ultimately responsible for managing the day-to-day activities of the company, to include design, operation, and improvement of the systems and resources that deliver the core products and services of the organization.
Chief Financial Officer (CFO) – The officer primarily responsible for managing the finances of the business, to include financial planning and forecasting, record keeping, managing financial risks, and communicating financial performance and forecasts.
Chief Marketing Officer (CMO) – This officer may be responsible for a diverse range of business areas such as sales management, pricing and market research, advertising and promotions, public relations, distribution/supply chain management and customer service. The challenges of this type of position can be especially complex due to the day-to-day diversity of these different functions, from highly analytical (For example, market research) to highly creative (For example, advertising) needs, and requires a very open and flexible leadership style.
Chief Information Officer (CIO) – The officer primarily responsible for the management, development, implementation, usability, and security of information and computer technologies. With the increased use of IT and computer technology in the retail world, the number of CIO executives has increased greatly in recent years. The CIO is responsible for analyzing available technologies for improving the business, and integrating those technologies into our business plans. The CIO may further deal with matters such as website and E-commerce development, integrating new software programs into our company processes (Ex: inventory management), and issues related to the security of data and information systems.
Chief Risk Officer (CRO) - The officer responsible for assessing and planning for potential risks in the various segments of the retail business, the CRO may oversee computer security issues, compliance, legal/liability issues and related company matters. The CRO may also be responsible for monitoring other risks and integrating risk management principles into the framework of the organization.
Additional Executive positions may include but are not limited to a Chief Business Development Officer, Chief Strategy Officer, Chief Safety Officer, Chief Analytics Officer, Chief Administrative Officer, Chief Networking Officer, Chief Data Officer, Chief Technology Officer, and Chief Legal Officer among others.
What is a Board of Directors? Why would a company operate under a Board of Directors?
A Board of Directors is a group of individuals that make up the governing body of a retail corporation. Elected to act as representatives of those that own the company, they are responsible for determining and executing corporate policy by remaining focused on managing the Senior Management of the company rather than the day-to-day activities of the business. The Board of Directors will serve as an advisor to Senior Management, defining and enforcing standards of accountability with the intent to enable management to carry out their responsibilities to the fullest, and in the best interest of the company shareholders. While most private retail companies may typically carry a Board of Directors, every publicly traded company must have a Board of Directors.
What are some of the core responsibilities of a Board of Directors?
Setting and prioritizing strategies, positioning, and critical business functions.
Overseeing, reviewing and approving the company’s high-level business plans, strategic direction and objectives.
Providing oversight regarding the conduct of the business and the effectiveness and maintenance of business plans so that the company is successfully managed in the long-term interest of the shareholders.
Allocating sufficient resources and personnel.
Selecting, evaluating and compensating the Chief Executive Officer and monitoring management’s hiring and succession planning for other key executives.
Monitoring the company’s accounting and financial reporting practices; and reviewing all financial and other controls.
Oversee the processes that are in place to safeguard the company’s assets and mitigate risks, to include compliance with applicable laws and regulations.
Most importantly, the Board of Directors must provide a fair representation of both management and the shareholder’s interests, finding the appropriate balance to make the company most successful. They are bound to act within the scope of their authority and to exercise due care in the performance of their corporate tasks. In order to reach the best and most prudent decisions, they may engage the advice, reports, and opinions of company management, legal counsel, financial advisors, auditors, outside experts, and others when deemed necessary and appropriate.
What are the primary responsibilities of the Real Estate Department?
From choosing a store location through the many aspects of property design and maintenance, the influence and participation of the loss prevention department can be highly significant for the success of a particular location and the overall success of the company. While many other departmental relationships may appear to present more day-to-day opportunities for exposure and interaction, developing a relationship and strong communication with this department should be a priority of every loss prevention professional.
The Real Estate department is responsible for the overall management of the company’s property portfolio, managing real estate issues for existing properties Store Front & Parking Areaand additional planning for new site locations. These individuals are responsible for locating and recommending new store locations, whether those interests involve leased locations or self-development. Responsibilities may include researching and analyzing new sites, specific and general property analysis, assessing environmental, risk and other property concerns, negotiating with developers, third-party providers and government entities, development and implementation of schedules and budget information, and providing for the integrity of all real estate property integrity.
What are the primary responsibilities of the Store Design team?
The Store Design team typically consists of the Architectural and Engineering teams. The Architectural team prepares the construction documents for store properties, working with planners and engineers to design buildings, make necessary building modifications and obtain governmental approvals and permits. The Engineering team designs the mechanical, structural and electrical components of company properties; develops and implements construction documents for new and remodeled stores working with the Architectural and Store Planning teams; and collaborates with other internal and external groups in order to manage code issues, special project designs, and other necessary design analysis.
Our relationships and interactions with the Store Design team can have significant impact and influence on many important structural and physical security issues such as alarm systems and placement, security camera installations, and other structural, technical and design issues.
What are the primary responsibilities of Store Planning?
The Store Planning team is typically responsible for developing the interior design for company facilities. Specific responsibilities may include space and departmental planning, interior models and finishes, merchandise placement, fixture designs, and other planning specifications. Our relationships and communications with the Store Planning team can greatly improve our efforts as we explore and create loss prevention and profit enhancement opportunities through effective planning management and environmental design.
What are the primary responsibilities of Construction & Building Services?
Working with the company’s designers, architects, engineers and general contractors, the Construction team is responsible for building and renovating all company properties including stores, distribution centers, corporate facilities, and other properties. Building Services departments coordinate property-related maintenance and repairs to include site repairs, property/maintenance contract management, environmental concerns and other related services. Strong relationships with this team leads to supporting physical security and other loss prevention-related issues proactively and cost-effectively; and often leads to additional loss prevention and profit enhancement solutions through joint project efforts.
What is the role of the Internal Audit Department?
The Internal Audit department is designed to advise organizations how to better achieve their focal objectives by evaluating the effectiveness of company Auditor performing Auditoperations, the reliability of all types of reporting and documentation, the protection of the vast diversity of company assets, compliance with laws and regulations, by deterring and investigating fraud and other suspicious and/or inappropriate activities, and by assessing any and all other company practices, policies and procedures as deemed necessary and appropriate by the Executive Officers and the Board of Directors.
Why does Internal Audit often operate independently from other management teams?
To perform their role most effectively Internal Audit should carry organizational independence from management. This allows unrestricted and objective evaluation of management activities and personnel, thereby mandating that the department report to the Executive officers or directly to the Board of Directors.
What is the primary purpose of Public Relations?
It is the responsibility of the Public Relations department to provide the face of the company to the public; a means of communication between the company and its public audience. Dealing with issues and image rather than specifically dealing with products or services, a primary objective of the Public Relations department is to gain public understanding, acceptance and support.
Community Relations, Product & Services Relations, Financial Relations, Employee Relations, Crisis Relations & Communications.
What is the primary purpose of the Finance department?
The purpose of the Finance department is to manage the allocation of all of the different financial resources of the company—money, banking, credit, corporate investments, product inventory and other assets—in a way that maximizes the overall profitability of the business. Finance evaluates the variety of business issues and business decisions that the company must face on a day-to-day basis, managing the many business and accounting controls while counseling company management on future directions, strategies, performance, and business opportunities. Accounting is the process of managing financial information; measuring, classifying, summarizing, interpreting and communication all of the company’s financial data
