Course 1 - Leadership Principles Sections 103 & 106 Flashcards
LPC 106 A - Specialty Management
Why is adaptability so important as we move up the ladder of success in loss prevention?
The key to our growth depends on our adaptability. It is our ability to be flexible, and capable of adjusting to new and different environments, situations, individuals and ideas that will ultimately guide our success.
Why do many loss prevention professionals struggle when they first step out of their “comfort zone”?
There is an adjustment period as they search for the best ways to apply their knowledge and expertise to a new environment and/or a new style of management. Most eventually overcome their demons, but some may continue to scuffle. Some never adjust.
What are some of the factors that will determine the size of the retail staff in a specialty store setting?
Store Managers in the Specialty environment are typically given their payroll budgets by their Regional/District Managers, or directly from the corporate offices. Payroll dollars are usually determined by a business planning process, and will be influenced by such factors as the size of the store, the average sales volume, and the minimum employee coverage deemed necessary to successfully operate the business. These payroll dollars will generally fluctuate from week to week as sales fluctuate. With today’s technology, scheduling can also be tailored to more specific scheduling needs.
The number of employees available in the store on any given day can have a variety of implications for our loss prevention efforts. Explain and expand…
While working with a limited staff can in and of itself impose a variety of shrink risks, every staffing issue can affect a Specialty store location on a variety of different levels, each of which can have significant impact on sales performance and potential shrink implications. These implications will in turn have direct significance on our shrink programs and the way that the program will be managed.
Due to limited staffing, what are some of the different roles that a specialty manager may have to fill on any given day?
The structure of the store puts greater responsibilities in fewer hands. This creates an environment where we require “Field Generals” rather than general leadership; cross-training of management and key associates rather than having individual team members with specific or limited responsibilities. On any given day at any particular time, a member of management may serve as a:
Receiving Manager - Unloading trucks, checking in product, completing transfers, moving product on and off of the selling floor, managing the various shipping & receiving documents, and other related functions.
Cash Office Manager - Responsible for all cash handling functions including managing register tills, compiling daily receipts, completing related paperwork, making bank deposits, etc.
Human Resources Manager - Making hiring decisions, managing new-hire orientations and employee training programs, counseling, promotions, reviews, incentive programs, other employee related issues and all related documentation.
Customer Service Manager - Ensuring customer service practices are maintained throughout the store, handling customer complaints, completing merchandise returns, managing customer product concerns, etc.
Housekeeping Manager - Keeping the store clean and organized, managing trash disposal, maintaining store lighting, managing necessary store repairs, etc.
Visual Display Manager - Managing store presentation, creating visual displays, setting floor plans, setting ads, managing fixturing and special display items, etc.
Loss Prevention Manager - Managing loss prevention program initiatives, deterring shoplifters, maintaining operational controls, EAS tagging programs and systems, other security and alarm systems, and additional responsibilities working with the loss prevention department when deemed necessary and appropriate.
Sales Manager - Product knowledge, training and development, selling merchandise, ringing registers and otherwise promoting product sales.
When we look to measure the overall success of the business, where do we look first? Why?
Sales drive the retail business. When we look to measure the overall success of the business, we look to sales first. When we try to establish business trends and product success, we look to sales. When we look to measure the success of a Store Manager or District Manager, we start by looking at sales. Sales create the revenue that pays for everything else. Sales pay our salary. Sales keep the lights on. Sales allow us to buy new merchandise and keep the retail cycle alive. Most certainly, there are other factors that will come into play when measuring success and failure, but the buck stops here.
By the same respect, shrink performance is most often considered a benchmark for the success of a loss prevention program. Our shrink number is measured as a percent to sales, determined by the total number of dollars lost divided by the total sales performance. Therefore, simple math tells us that our shrink number will be directly impacted by the sales of our store locations. Fundamentally stated: The more that we sell, the less our shrink percentage will be. It then becomes clear that sales will have a direct implication on how your success will be measured as well. With this in mind, it becomes apparent very quickly that the sales generated by a Specialty store versus those generated by a Department store can have considerable impact on shrink results.
What is the formula for determining shrink as a percent to sales?
$750,000 Losses ÷ $5,000,000 Total Sales = .15 Shrink
What is the purpose of Store Themes?
Store designers have infused store designs with themes that are intended to inform, excite, comfort and entertain the customer by assigning intellectual and/or emotional value to the shopping experience. Theming in retail design does as much for selling merchandise as it does for the customer’s overall shopping experience, and this has become a major component in Specialty store environments. Stores are commonly designed to have an identity that draws in and grabs the interest of their core customer. Retailers are building their brands from the ground up, using the store designs to attract and tantalize their customers.
While these themes may serve to attract the customer, they are not always planned with loss prevention concerns as a central consideration for design decisions (For example, common practices such as departmentalizing the store can create “shoplifter havens”). For these reasons, loss prevention management must take an active role in providing input for store design at the corporate level, offer input and suggestions during design implementation, and incorporate these issues as part of their training and awareness programs.
Why is space a premium topic and a strategic priority in the Specialty environment?
Every square foot of the store has a specific job to do, and every attempt must be made to use that space most efficiently.
Sales per square foot is a common retail standard, and typically one of the primary measurements of store success. As such, it is critical to the success of the business that we constantly work towards improving the quality and efficiency of our employees, but also the productivity of the store’s available selling space and inventory.
What is the formula for determining sales per square foot? What is the purpose of this formula?
Sales per Square Foot = Total Net Sales / Square Feet of Selling Space
What is the objective of a Store Layout?
While all store layouts are affected by the size and shape of the selling floor, our goals are all the same - to allow for maximum exposure of our products to our customer and gain maximum traffic flow. Some areas of the sales floor are considered more important than others, and different areas may have different purposes or different themes.
What are some of the different purposes that specific areas of the sales floor might hold?
Some areas are intended to draw customers in, some are intended to slow them down or focus their attention; some grab our interest, others guide our perceptions of the store and the product. All are designed with a specific strategy in mind.
In general terms, what are the three layouts that will typically be used in store designs?
Grid Layouts - In a typical grid layout, store fixtures run parallel to the walls, so customers typically grab a shopping cart, start in a front corner and walk each and every aisle. They’re easy to shop because they offer clean sight lines throughout the entire store. Additionally, these layouts allow for maximum end-feature exposure. Grid layouts are commonly found in grocery stores, but you will also find them in many big box stores.
Loop/Racetrack Layouts - This layout offers a clearly defined main aisle that circles the store like a racetrack. Fixture placement in a loop layout may differ in different parts of the store: The perimeter fixtures run perpendicular to the wall, while the fixtures in the center of the loop often run parallel to the side walls. In this type of layout shoppers typically flow to the right and move up and down the aisles in a serpentine manner. Such layouts offer maximum product exposure because the perimeter walls are just as important as the end features; the layout leads customers to the wall each time they go down an aisle. Department stores and other Big Box retailers often use Loop/Racetrack layouts.
Free-flow Layout - Specialty retailers typically use a free-flow layout because it allows for the most creativity. There are no set aisles or straight lines. Instead, fixtures are placed at angles, encouraging shoppers to wander through the store, where they will find new merchandise displays at every turn. The angular floor plan best utilizes the curves and angles of fixtures and walls to complement the store design, while soft angles create better traffic flow throughout the store.
What are some additional design issues that can be problematic in a Specialty store environment?
Storage and back-stocking is limited, and product has to “turn” in order to keep the stores looking fresh. Limited space also leads to smaller stockrooms, which in turn mandate efficient inventory management as well as the effective control of this area of the store.
Control of the back door (Receiving door) can also be more problematic in the Specialty setting. Access issues, trash removal, vendor access and control, theft opportunities and safety concerns are among some of the challenges associated with minimal staffing and back doors. Sound access controls are critical in this type of environment, and unwavering procedural compliance mandatory without exception.
Specialty retailers typically have a single entry/exit for customer traffic. This further allows for certain focalized attention of sales, customer service and loss prevention efforts and practices that should be incorporated into our planning, training and awareness programs.
How does our management style provide us with a means to accomplish our goals?
Our management style provides us with a way of accomplishing our goals, establishing order and control while providing the direction to react and respond to our daily challenges in the retail world. By the same respect, our leadership skills help us to establish guidance and commitment. These processes teach us to be more proactive in dealing with the challenges of the retail environment, and making the adjustments necessary to influence change and inspire a winning attitude.
Courage in leadership has to start with introspection - we have to be willing to look at ourselves first. If we can’t make the adjustments necessary to effectively lead and manage in a different environment, we will always lack the credibility to realize any true progress within our program.
Managing 10 stores is not the same as managing 1 store ten times. Explain…
Managing 10 stores is not the same as managing 1 store ten times - each store has its own unique needs, teams, expectations and challenges that will require our attention and expertise. The style, approach and agenda of one management team might not be the same as the next. Challenges and decisions will hit us in different places and in different ways as we look for an acceptable balance between adjusting the store to the program - and the program to the store. Consistency is essential, but sensibility will also play a role as we look to find ground that anchors the objectives of the program, the culture of the store and the best interests of the business.
What are the various steps that we can take to help us better manage our time?
The first step is to establish what it is that we currently have. What are our greatest concerns? Where are those problems coming from? What stores have the biggest issues?
What are some common tips that can help us in the process?
Use time management tools. Whether it’s a Day Planner or a software program, take the steps to plan your time, document your schedule and prioritize your tasks. This can help to increase your productivity and decrease your stress.
Challenge yourself to limit tasks that may be wasting your time, such as habitual tasks that add little or no value. Set time limits for certain tasks where practical and appropriate (For example: checking emails)
Keep a clean desk, and keep your systems organized. Take the time to manage your systems (without being obsessive) so that you can quickly get what you need.
When it comes to mail / email - make it your goal to touch each message only once. Open the mail, deal with it and move on.
Learn when it’s best to delegate or outsource. There are times when it’s best for everyone to let others carry some of the load.
Take advantage of “waiting” time to complete other tasks. Technology allows us the opportunity to take advantage of “waiting” time (For example, waiting to catch a plane) to do other tasks, such as checking messages or responding to emails.
Improve your active listening skills. Determine the facts, what’s involved, what needs to be done and what the expectations are before making these decisions.
Be firm but diplomatic when managing your time. Learn when it’s best and appropriate to say “No”. A plate that’s too full usually means something is missed or goes to waste. Take charge, be practical, and use reason.
Why is it so important to efficiently manage our travel?
Travel is consistently among the most prominent budget expenses outside of payroll, and related costs can mount very quickly when our travel plans are not well managed.
Strong organizational and communication skills can help us to better manage these trips as well (For example, when in a particular market area and visiting stores in these situations, we may want to consider spending an extra night or two if it will save us expenses on another anticipated or planned trip that may have been upcoming). Our ability to remain organized and efficiently manage our time in these situations can greatly enhance our productivity and reduce our expenses.
How can strong communication skills help our stores take ownership of the loss prevention program?
The stores have to carry ownership of the loss prevention program. They have to feel that you are part of their team just as importantly as your need to feel that they are a part of your team. That dynamic is as important to your success as anything else that you can do in your stores. Our message has to be clear and meaningful. Our presentation has to make the information interesting and relevant. Our attitude has to be contagious.
Why is follow-up communication so important to the LP program?
Our program has to be internalized in order to have any real meaning in the store. If you have a store on the outskirts of your area of a responsibility, let’s say a store that’s 6 hours from your home market and you don’t visit every day, how do you keep the program alive? If your store managers don’t believe in your message and/or that message is not reinforced and supported, how can you hope to have the store assume ownership of the program? We have to have regular communication and follow up with our stores, and that communication has to be sincere and honest, positive and meaningful. It has to have value, and your store teams have to believe in it.
What do we mean when we say that we must learn to manage a different type of team?
In the Specialty environment, the individuals responsible for carrying out loss prevention related tasks don’t necessarily see loss prevention as their primary responsibility—they correctly see their primary objective as generating sales. Their primary interest is typically sales and sales related tasks. Their primary focus is sales. Their relationship to our team is typically a “dotted line” responsibility, with their primary reporting relationship typically to a District or Regional Sales/Operations manager. While it is always important to develop strong working relationships with our Operations partners, the dynamics of this type of relationship are very different, requiring a different mindset and a different approach to find a formula for success.
Why is it so important to differentiate between managing a group of individuals and managing an effective loss prevention program?
As you continue to grow as a leader, you will discover that there is a significant difference between managing a group of individuals and managing an effective loss prevention program. We learn that in order to be truly successful, we must learn to apply information to our stores not only in a way that they understand, but in a way that they will use. We must learn to compromise. We must find ways to make the information more important to them by applying loss prevention concepts to programs, practices and tasks that we know that they value. We learn to blend the concepts in order to achieve greater successes.
What is the difference between influence and authority? Why is it important that we learn to use both when managing our stores?
Authority involves the power to enforce rules and direct performance. It includes the right to prescribe the means and methods by which work will be accomplished. However, the authority to direct is only as strong as an individual’s willingness to accept direction from someone else. Influence on the other hand, is our ability to produce a desired result by inspiring the actions of others. We are able to persuade and convince others that they are on the right path, making the right choices and taking the right direction.
In effect, it therefore stands to reason that our ability to influence others and influence change is much more important in this type of setting. We can’t simply strong-arm the stores into compliance. We can’t act like an enforcement agency if we hope to accomplish results. If we want acceptance we have to build cooperation and establish ownership. We have to make the stores believe that by following our initiatives that they are doing the right thing, and the best thing for their stores and their team.
How do we ensure that loss prevention concepts will be a guiding principle in a store’s management plan?
he goals and objectives of the loss prevention team must align with the goals and objectives of the company as a whole, and we must drive our programs accordingly. We must align with Operational expectations and store standards that are part of our everyday business practices.
What practices must they maintain to keep the store running by the best means possible to meet all of our company goals? Sales. Customer Service. Sound Operations. Strong Merchandising. Merchandise Replenishment…We have to look at every aspect of retail that is important to the stores, and apply the principles of loss prevention to their model of success. loss prevention has to be seen as an integral part of the program, rather than a factor that impedes their progress.
LPC 103 A - Personal Development -
Who is responsible for the development of our careers?
A professional development plan should be seen as a continuous process. We should always be looking for ways to improve our performance. It’s our responsibility to own and manage the process; driven by individual learning and developmental needs and carrying a personal signature for success. We should approach our plan as an essential component of our personal and professional lives.
What are some of the fundamentals of an effective personal development plan?
Reflect on our individual talents, skills and knowledge.
See personal developmental opportunities as an essential channel towards self-improvement.
Be more specific regarding your developmental needs. Don’t cheat yourself. Everyone has areas where they can improve.
You are a retail professional who happens to specialize in loss prevention. Learn the business of retail.
Devise a personalized plan to create activities and formulate future strategies that will help to address the learning and developmental needs that you have identified.
An education is an investment that we make in ourselves. Structured training and development such as certificate programs and continuing education can help address areas of improvement and build areas of personal strength.
Build upon continuing education by seeking out different methods of learning in order to meet your identified needs and goals. Conferences, associations and other functions are good sources of information and tremendous networking opportunities.
Put your plan into action. Complete the chosen activities and programs that you feel are necessary to help improve your learning and development plans.
Evaluate the results. Reflect on how well planned objectives have been achieved and any additional steps that may be necessary to reach your goals. (Ex: Did the developmental plan effect growth? What additional steps need to be taken?)
Repeat. Repeat. Repeat.
What are some of the guiding principles of effective management?
Management involves systems, processes and technology, Management concepts are intellectual and factually focused. Goal setting, tactics, standards and other measurable objectives provide the foundation. Management requires the continuous maintenance and improvement of what we have and what is. Management provides us with a way of doing things, and doing things right. Our management skills help us to establish order and control. We establish our management authority through ranks, positions and other assigned hierarchies. Management processes involve problem solving and strategic planning. Management processes help us to react and respond to our daily challenges. Management is providing direction. Management helps us to work within the rules. Management is the way that we go about doing things. Management helps us to establish standardization and consistency. Management underscores the importance of effective communications. Our management practices can help to light a fire under people.
