ll.

BUYING ANDMERCHANDISING

OPERATIONSRESEARCH EVENT

AMERICAN SIGNATUREFURNITURET

Gahanna Lincoln DECAGahanna Lincoln High School

140 South Hamilton RoadGahanna, Ohio 43230

Carissa Strauss

Leah Poister

April 25,2010

I TABLE OF CONTENTS

I. EXECUTIVE SUM1VIARY 1

II. INTRODUCTION 2

A. Description of the Business 2

B. Description of the Community 3

C. Description of Objectives for the Current Employee- Training Program 6

III. RESEARCH METHODS USED IN THE STUDY 7

A. Rationale and Description of Research Methodologies Selected to 7Conduct the Research Study

B. Process of Conducting the Selected Research Method(s) 9

1V. FINDINGS AND CONCLUSIONS OF THE STUDY 10

A. Description of the Existing Employee-Training Program 10

B. Description of the Structure of the Current Employees 12

C. Effectiveness of the Current Employee-Training Program 12

D. Conclusions Based on the Findings 14

V. PROPOSED STRATEGIC PLAN i8

A. Goals/Objectives and Rationale i8

B. Proposed Activities and Timelines 19

C. Proposed Budget 26

VI. BIBLIOGRAPHY 27

VII. APPENDIX 28

I. EXECUTIVE SUMMARY IClient: American Signature Furniture

American Signature Furniture is a privately owned retail chain that designs, manufactures, and sellsits own home furnishing collections. The chain was introduced by parent Schottenstein Stores in 2002.The Dublin-Granville Road location in Columbus, Ohio currently employs 43 full time associates andfive management positions.Problem: American Signature currently lacks an effective cross training program for itsmanagement team. This is negatively affecting customer service and employeeproductivity.

Hypothesis: A well designed cross training plan will benefit the company and its management staff.

Research Process: Our team began this project by gathering information from secondary sources.Visiting the company’s online program and reviewing training documents allowed us to learn about thebusiness, and further assisted us in the development of our primary research. Primary research for thisstudy conducted with American Signature employees included personal interviews and a managementquestionnaire. Additional interviews were conducted with business professionals outside the companywho have successfully implemented cross training programs.

Findings and Conclusions of the Study• General Manager believes each manager would benefit from understanding the business as a whole• Assistant managers would like to be more knowledgeable of various management duties• Assistant managers have minimal management background• Current initial training process is very short and consists mostly of on-the-job training• Assistant managers enjoy work environment, but believe it could be improved• Need for improvement of skills to advance within the company

Our research indicates that the current management team is confident in their abilities to be productivein their current position, but they lack the proper skills to handle business activities of othermanagement positions. The managerial staff ofAmerican Signature Furniture believes they wouldbenefit from cross training in various areas of the store. By implementing a cross training plan,American Signature Furniture’s managers will be able to operate the business more efficiently,especially in times of employee absence. Additional benefits are highlighted below.Benefits Increased profitability, productivity, internal advancementCross Trammg Managers

opportunity! Reduce costs, turnover/ Better customer serviceReconunendations

Objectives Activities•Improve ability for business to •Monthly rotation process led by •Total cost for 3 monthrun efficiently two training coordinators duration: $21,120•Enhance skills, knowledge, and •Utiuize current manuals, online •$22 an hour per trainingabilities of management team tools, and videos consultant (8 hour day 5 days a•Reduce management turnover •Supervised on-the-job training week)rate •Matrices of tasks for positions •Our recommendations and1 •Enhance opportunity for ‘3 month timeline budget have been validated byadvancement •Evaluated on each task mction the General Manager of

based on timeline American Signature Furniture.

After conducting our own research within the store and consulting with outside training experts, wedeveloped a cross training plan for the American Signature Furniture management team. We feel ourresearch and proposals will benefit American Signature Furniture.1

Budget

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1

I ii. INTRODUCTION I

A. DESCRIPTION OF THE BUSINESS

American Signature Furniture is a privately owned retail chain that designs and manufactures

high quality home furnishings. American Signature’s target market includes adults ages 25-55 with

average to above average incomes who have home furnishing needs.

At American Signature, unique styles and affordable prices combine to

create what has become one of the most respected names in the

furniture industry.

The American Signature Furniture concept was introduced by

parent Schottenstein Stores in 2002, in an effort to expand the

company’s higher-end offerings. The company operates 20-plus stores

featuring home furnishing collections, such as Casa Moda and the

newer Euro Manor line. In addition to selling, American Signature

designs and manufactures its own pieces and operates its own

warehouses and distribution centers. The company also operates

sister chains Value City Furniture and Rooms Today.

Under the American Signature title, 125 retail stores are in

operation in 19 states, with a total of 6,00o associates who work in

stores, factories, distribution centers, and the corporate office. Major

competitors in the home furnishing market include Ashley Furniture,

____________________

Thomasville, Kittles, and Ethan Allen.

This project is being conducted for the American Signature Furniture branch located on

Dublin-Granville Road in Columbus, Ohio. This site employs 43 full time associates, with five

management positions, including a General Manager, Operations, Merchandising, WarehouseI

(recently resigned), and Customer Support.

2

Products/Services

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The General Manager of this store believes his managers are well trained in their designated

areas, but when needed in other departments, they are unable to manage due to a lack of training and

education in the various areas of the store. He provided our research team with the following research

problem.

_____

—----..-...---.Research problem: American Signature currently lacks an effective training program fOr thern

managers and it is negatively affecting customer service. We were asked to develop a cross

training program for the management team of American Signature Furniture.

B. DESCRIPTION OF THE COMMUNITY

Economic:

Having one of the most diversified economies in the nation, Columbus’s greatest strength is its

multifaceted corporate world. Although the recession has greatly impacted many cities, Columbus hasbeen able to weather the economic crisis because of its diverse market that includes: state government

agencies, several universities, banks, insurance agencies, and data processing firms as some of its

largest employers. The city is also home to national companies, such as Nationwide Insurance,

American Electric Power, and The Limited Brands. Because of the positive economic climate,

Columbus is the second fastest growing metropolis in the Midwest.

Geographic:

As previously mentioned, Columbus is a very business-oriented community. American

Signature resides in Dublin, right inside the outer belt of Columbus. Located near the Sawmill exit off

of Interstate 270, the area is surrounded byDub Village

Slopping Center Norlhwest. .corporate buildings and shopping centers. This Square

.

location provides easy access to customers from - at

Hilhard, Powell, and other upscale Columbus area..-.

communities..

-

DubiSavmd.

Shopping Center

American Signature is located in a Dublin@2010 Google H. Map data @2010 GoogleGranville Road/Interstate i6i shoppmg center

OurAmerican Signature Furniture location.

3

with other prosperous businesses, such as ,‘

Staples, HH Gregg, Whole Foods, and

one of its major competitors, Ashley

Furniture. The growing area, higher-income

residents, and substantial number of profitable businesse; provide the

American Signature furniture store with a great geographic location.

Demographic: The Columbus area in which our target

demographic communities are located.

Demographic information for this study was acquired from the U.S. Census Bureau. The

communities of Columbus, Dublin, Hilliard, Upper Arlington, Westerville, and Powell, surround the

Dublin-Granville Road American Signature Furniture location. Currently living in the Columbus area

are 1.3 million households, and the population continues to grow.

Columbus area citizens living and shopping near the American Signature Furniture location

enjoy living a comfortable lifestyle with a higher income than the national average. The average

Columbus family brings in approximately $73,704; however, the average family in neighboring

Dublin, brings in an average of $104,000 each year. This compares to the national average of $50,046.

These higher incomes provide more disposable income for upscale families to spend on luxuries, such

as American Signature Furniture. With the significant number of households in the area, and constant

growth of the area, American Signature has the demographic resources to prosper.

Socioeconomic:

The Claritas Market Segment database was used to find socioeconomic information for this

study. We were able to identify different segments of customers in our target area. While investigating,

we determined that there are five different types of customers residing in the area.

Home Sweet Home- Residents of Home Sweet Home tend to be upper-middle class, married couples

living in mid-sized homes with few children. The adults in the segment, mostly under 55, have

graduated college and hold professional, white-collar jobs. With their upper-middle-class incomes and

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small families, these residents have fashioned comfortable lifestyles, filling their homes with high

quality furniture, toys, electronics, and pets.

Movers And Shakers- Residents of Movers and Shakers are America’s up-and-coming business class: a

wealthy suburban world of dual-income couples who are highly educated and typically between the

ages of 35 and 54. Given its high percentage of executives and white-collar professionals, there is a

business quality to this segment: members of Movers & Shakers rank number one for owning a small

business and having a home office.

Suburban Sprawl- Residents of Suburban Sprawl live a unique American lifestyle: a collection of

midscale, older singles and couples living in the heart of suburbia. Typically, these members of the

Baby Boom generation graduated from college, hold decent jobs, own older homes and condos, and

pursue conservative versions of the American Dream. Some of their favorite activities include jogging

on treadmills, playing trivia games, and renting videos.

Young Influentials- Young Influentials were once known as the nation’s “yuppies.” Today, the segment

is a common descriptor for younger, middle-class singles and couples who are preoccupied with

balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment

complexes surrounded by ball fields, health clubs, and casual-dining restaurants.

Executive Suites- Residents of Executive Suites are upper-middle-class singles and couples typically

living just beyond the nation’s beitways. Filled with a significant

number ofAsian Americans and college graduates—both groups

are represented at more than twice the national average—this

segment is a haven for white-collar professionals drawn to

comfortable homes and apartments within a manageable

commute to downtown jobs, restaurants, and entertainment. L

Furniture sold atAmerican Signature.

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C. DESCRIPTION OF OBJECTIVES FOR THE CURRENT EMPLOYEE- TRAININGPROGRAM

Many objectives exist in the current manager training program. The management positions

include the general manager and the operations manager. These individuals oversee the

merchandising manager, warehouse manager, and customer service supervisor. Objectives of training

programs set forth by American Signature are the traits and knowledge that the managers should

implement after completing the training program. Within the corporation’s training program, referred

to as American Signature University, the objectives are listed for each management position. The main

objective areas for the current manager training program are: -

Exhibit II.i Main Objectives I

The chart below provides greater detail of the training objectives for each management position:

Operations Manager• Assists General Manager withdaily operations of the store,including managing the store in theabsence of the General Manager• Manage up to 6 subordinatesupervisors• Recruit, interview, hire, train, andschedule sales associates• Handle customer and associateconcerns

Warehouse Manager• Responsible for overall direction,coordination, and evaluation ofshipping and receiving shipment• Orientation and training ofwarehouse associates• Oversee preparation, assembly,and delivery of merchandise• Planning evaluating and directingwork for warehouse• Addressing complaints

Exhibit 11.2 Merchandising Manager• Responsible for overall direction,

‘ coordination, and evaluation ofGeneral Manager sales floor associates

• Monitor and back up all store ‘• Assist in daily operations of store

functions performed by theOperations and Merchandising • Directly supervise decorators and

Managershousekeeping

I • Coordinate all aspects of sales• Recruit and train all

‘ eventsassociates

• Responsible for presentation of• Coordinate development of sales floorassociates• Supervise all associates in Customer Service Supervisoraccordance with corporate • Assists General Manager withpolicies ‘ Human Resource functions• Establish a diverse, ‘ . Supervise office staff inproductive, and effective i performing tasks involving sales,

I workforce I deliveries, customer service,cash/credit handlings

‘ • Coordinate all financing related toI customer purchases

• Assist management in calculatingpayroll

1. Management understands American Signature policies and practices.

2. Managers understand the concepts of integrity, empathy, and trust inthe workplace.

3. On-the-floor experience is beneficial and enhances the skills ofmanagement.

4. Communication is essential between management and theiremployees.

5. Managers must be familiar with American Signature’s “Best Practices.”

6. Customer service is vital to the success of the store.

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III. RESEARCH METHODS USED IN THE STUDY

A. RATIONALE AND DESCRIPTION OF RESEARCH METHODOLOGIESSELECTED TO CONDUCT THE RESEARCH STUDY

The objective of our research was to analyze the current manager training method used

by American Signature Furniture. Our goal was to propose a new and more comprehensive

training process. This would create managers who are more educated in all aspects of the

business, allowing them to be just as effective when they are needed to deal with company

matters in adjacent departments. Both secondary and primary research was used in this study.

Exhibit 111.1 I Secondary Research: I

Rationale: To begin our research process, we utilized these secondary research sources as a

thorough method of gaining factual data about American Signature, and the furniture industry,

along with statistics about the target market and surrounding areas. Next, we gathered

information about American Signature’s current manager training strategies of American

Signature through training manuals and other materials provided to us by the company.

Through reviewing articles about cross training, we gained insight on the benefits of cross

training managers and other employees. Finally, we looked at strategies and “best practices” of

Research Databases1. Us Census2. Claritas3. Mapquest4. ESRICorporate Documents

Online Training Articles Cont’d

1. Training Manuals2. American Signature University Online Manual3. On-the-Floor Training Guide4. “Rules of Best Practice”Textbooks & Popular Business Books1. Marketing Essentials2. Marketing Research, 3rd Edition3. The Southwest Airlines WayOnline Training Articles

2.”Cross-Training employees will better positioncompanies for crisis flu outbreak” BizTimes.com3. “Cross-Training” Restaurantowner.com4.”Cross Training as a Motivational andProblem-Solving Technique: CanadaOne5. “The benefits of cross-training employees”Helium6. Business Strategies During a Tough Economy:Cross Training” Exec Digital7. “Program for Employee Cross Training” U.C.Davis Health System8.”Leadership Laboratory” The SANSTechnology Institute9. “Cross-Training” Inc.10. “Cross- Training Program” Inc.ii. “Benefits of Cross Training” Inc.

1. “The benefits of cross-training employees”Helium

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other large corporations who have already implemented cross training into their training

procedure. Primary Research: Exhibit 111.2

Management Interview:1. Matt Strauss, General Manager

Management And Employee Questionnaires:1. Matt Strauss, General Manager2. Joe Mann, Operations Manager3. Keith Kohler, Merchandising Manager4. Donna Dias, Customer Service Manager5. Warehouse Associates6. Office Associates7. Home Furnishing ConsultantsPersonal Interviews:1. Jerry Frengou, The Limited Brands2. Jan Ross, DSW3. Katie Rodriguez, DSW

Management Interview:

Mail Strauss, General Manager

Rationale: To gather information about the training practices for American Signature, we

conducted an in-depth interview with the General Manager, Mail Strauss. Through the

interview, we were able to identify the training problem. We were given some company

background information, including an overview of company history and business philosophy.

Management and Employee Questionnaires:

Rationale: We administered management and employee questionnaires to gather data about

how managers and employees at American Signature are trained and what methods of training

they like best. We also asked for any suggestions they might have that would create a more

efficient training process and better- educated staff. We inquired about their openness to

incorporating cross training into their training method. The questionnaire also provided us with

some background information on the current managerial staffs and employees’ employment

histories.

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Personal Interviews:

Rationale: We conducted personal interviews with executives from other large corporations whoincorporate cross training into their employee and management training process. This helped usgain a better understanding of how to implement and carry out a cross training method, andhow to evaluate employees after they had been cross trained. These personal interviews gave usinsight into the training methods of corporations who have been successful in creating and usinga cross training process.

B. PROCESS OF CONDUCTING THE SELECTED RESEARCH METHOD(S)

Management Interview: In order to find out more about American Signature, a personalinterview with the General Manager, Matt Strauss, was conducted in the store on December 1,

2009. Through this interview, we gained

knowledge about the company’s “best practices,”

current training processes, and all of the different

aspects of the business. We obtained access to

online training programs and training manuals.

We were also able to observe the daily duties and

interactions between managers and customers.

Management and Employee Questionnaires: We collected information from

management and employee questionnaires that were distributed within the store on December1, 2009. Each ofAmerican Signature’s different department managers—General Manager,Operations Manager, Merchandising Manager, and Customer Service Manager—completed aquestionnaire allowing us to gain more in-depth understanding of the thoughts and feelings ofindividuals regarding training within the company. We also asked similar questions to theAmerican Signature Furniture employees. We asked each of the managers and employees abouttheir history with the company and management experience previous to their position with

H

-,

Our American Signature Furniture location in Columbus.

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American Signature. Next, we inquired about the training

they received: What methods were used? How long was the

initial training process? What method did they benefit from

most? Also, we wondered how effective they believed the

training process was and how knowledgeable they thought

they were of the duties and job tasks of each management

position. We asked about American Signature’s employee

evaluation methods. Lastly, we asked what changes they thought should be made to the current

training methods and whether or not they would benefit from a new training plan.

Personal Interviews: To enhance our understanding of the usage of cross training in the

retail industry, we conducted three personal interviews between December 10, 2010 and

December 31, 2010. We prepared several questions toExhibit 111.3

1. Jerry Frengou, the Director of

guide the interview, such as: How do you train your Operational Excellence Shared Servicesat Limited Brands.

employees? What are the benefits of your training2. Jan Ross, Senior Vice President of

method? How did you implement your plan? How do Accounting at Designer Shoe Warehouse

you evaluate the effectiveness of your training 3. Katie Rodriguez, Manager of LearningResource Center at DSW

process? We also asked for any advice they could

provide to a company attempting to implement a cross training program. They each provided us

with a training matrix and outline of their company’s current training method, as well as a list of

“best practices.”

IV. FINDINGS AND CONCLUSIONS OF THE STUDY

A. DESCRIPTION OF THE EXISTING EMPLOYEE-TRAINING PROGRAM

American Signature Furniture’s current manager training program consists of a basic

“Best Practices” list for all five management positions. The list contains the following:

Leah and arissa with Keith Kohier,Merchandising Manager.

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Exhibit 1V.i Current Training Program’s Best Practices: L

All managers learn these principles, as well as the procedures that pertain to their

specific area in the store. After completing the “Best Practices” training unit, the managers-in-

training begin to experience typical proceedings of the store through working on the floor with

other associates. This process lasts for approximately one month. Having managers working on

the floor and in the work area is essential in a professional retail environment and it is

important for the managers in training to experience everyday conflicts while in training.

—

Managers in training must learn how

to best handle situations that arise in their f c.

“Live on the Floor” training. Managers in

__________

-

training must pay close attention to

associates and customers and learn to notice

things like: Are associates wearing theirVideos used in current training process.

name tags? What are they saying to the customers as they walk in? Are they dressed

professionally? Managers in training must talk to customers to find out if they are enjoying their

visit, as well as listen and observe the workplace to determine the mood and cohesiveness of the

personnel in that particular store. Each management position focuses on its specific area of the

store during the training process: warehouse, showroom, or office.

• Alarm system test• Coaching Home Furnishing Consultants Not

Meeting Expectations• Contributions/Donations Procedures• Cost & Price Change Management• Creating an Office Schedule• Credit Application Procedures• Determine a Sales Closing Percentage• Determine Delivery Frequency• Direct Ship Trailers• Even Exchange Management• Extras Inventory Arrangement

• HFC Showroom Areas of Responsibility• Inventory Maintenance/Action Plan• Lock Change Management• Managing “As Is” Merchandise• Managing Drop and Hook Trailers• Manual Procedures• Organizing and Managing Service Area• Receiving Merchandise for Showroom

Displays• Recommendation for Distribution Trailers• Video Tapes for Security Cameras• Weekly Flash Report

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B. DESCRIPTION OF THE STRUCTURE OF THE CURRENT EMPLOYEES

American Signature Furniture employs 43 full time associates that are supervised by a

General Manager, Operations Manager, Exhibit W.2

Merchandising Manager, Warehouse

GeneralManager, and Customer Service Supervisor.

The General Manager oversees all positions.

The Operations Manager assists the General erations 1

Manager with this task. The Merchandising

___________j

I 1

Manager manages the Home FurnishingMerchandising

_________

customer serviceConsultants and Showroom duties. The Manager upernsor

-Showroomcoordinator -Warehouse -Office

Warehouse Manager is in charge of all -Home-Warehouse -OfflceAssodatesAssodatosFurnishin

onsuitanfs i)Prep Positioni)Papensork2)Computer

warehouse associates, and the Customer a)Sales 2)Pwk- rstem2)CUstomer up/Delivy

Greet 3)In Store/In ReceiptsService Supervisor directs the Office 3)Onthefloor Home Service

TechAssistance

Associates.

____________ ____________

C. EFFECTIVENESS OF THE CURRENT EMPLOYEE-TRAINING PROGRAM

General Manager Findings

After speaking with the General Manager of American Signature, we were able to

evaluate the effectiveness of the current manager training program. The General Manager

believes the current manager training program in each department is effective, but

each assistant manager would benefit from understanding the business as a whole.

Although managers are proficient in their specific area of the business, they are unable to

perform tasks outside their area of expertise. The General Manager evaluates each of his

assistant managers annually and they all prove to be more than capable of performing the

functions of their positions. Problems in the store arise when the General Manager is

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unavailable and another manager is also absent from his position. The General Manager is

capable of filling in for the Merchandising Manager, Operations Manager, Customer Service

Supervisor, and Warehouse Manager, but they are unable to assist each other.

Although the current manager training program is effective, the General

Manager feels that his assistants would benefit from being cross trained in all

areas of the business. He would feel more comfortable leaving the store if all the managers

were competent in all areas of the business. American Signature currently uses the following to

train each manager: videos, role-playing, training manuals, online manuals, and on-the-job

training. Each of the managers should be provided with these training tools for all positions in

the business to enhance their skills, knowledge, and abilities. Cross training managers will result

in smoothly running operations and improve the General Manager’s overall confidence in each

manager.

Assistant Manager and Employee Findings

Based on our research, we found an abundance of information relating to the

effectiveness of the current manager training program at American Signature Furniture. We

found that the general consensus of the management team and other employees is

that the current training method is effective, but could be improved. The current

manager training program teaches in-depth skills

and knowledge for each manager’s specific position

and general information about other duties in the

store. American Signature’s method of evaluating

training effectiveness is informal and inconsistent.

The General Manager is evaluated monthly by a

corporate employee, and each of the assistant

managers is evaluated annually by the General Manger. Leah and Carissa with Donna Dias, CustomerService Supervisor.

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The current manager training program uses printed and online training manuals, videos,

and live demonstration. The most helpful training approach, according to manager

questionnaires, is on-the-job training where new managers shadow the manager they are

replacing and are able to get real experience. Although each assistant manager believed he or

she was very knowledgeable about the duties and job tasks of the other management positions in

the business (3 on a scale of 1-5, with 5 being the best), the General Manager disagreed.

Although the current manager training program is effective, we found that

assistant managers would like to become more knowledgeable ofvarious

management duties. Each manager said that they would benefit from being cross trained in

all management positions. This would permit them the opportunity for advancement within the

company and allow for a more diversified work experience.

D. CONCLUSIONS BASED ON THE FINDINGS

From our various forms of research, we concluded that American Signature Furniture

needs to focus on cross training their managerial staff. Although the current management

training program proved to be effective, it could be greatly improved.

- 11 ew twS;s i;;.i --

Key Findings: Exhibit W.3

• 25 years of management experience with American Signature

• Expressed concern about assistants’ knowledge of all store functions

• Need for cross training• Monthly evaluations• “I am hesitant to leave the store when some of my assistants are absent

because the store falls apart. Each of the managers knows their own

position very well, but they are unable to assist in other areas of the

business.”• Assistant managers have minimal management background

• Rating of 4 out 5 for effectiveness of management training program

• On-the-job training is most effective

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HConclusions:

Our interview with the General Manager of American Signature provided our team with

valuable insight regarding their current managerial training program. The information allowed

us to analyze their current training plan. This is important because it allowed us to determine

new training techniques that will benefit the managers and the business. We learned that the

General Manager is very experienced, but his managerial staff has little management

background. The General Manager is concerned about leaving the store under the leadership of

his assistant managers due to their lack of knowledge in all areas of the business. The

information we gathered in this interview proved that a cross training plan would greatly benefit

American Signature Furniture.

ManagementQuestionnaireFindings :Keith Kohler, Merchandising ManagerJoe Mann, Operations Manager

Donna Dias, Customer Service Supervisor

Key Findings:Exhibit W.4

• Minimal previous management experience• Similar training methods, On-the-Job Training is most effective• Annual evaluations• “Cross-training is a must in the retail industry, even though we have our

primary duties, we need to know all parts of the business to move up inthe company and to help the business run smoothly.”

• Want opportunities for advancement within the company

Conclusions:

The questionnaires we distributed to the management team of American Signature

Furniture provided us with general information regarding the opinions of the managers. We

were also able to gather information on their past experience in management positions, and we

concluded that they had very little. Given the minimal management background, one would

assume that the initial training process would be thorough and comprehensive. However, our

data proved the opposite. The initial training process is only about one month long and consists

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mostly of on-the-job training. Although all of the managers report that they enjoy the work

environment, they believe that improvements can be made. We asked for suggestions on how to

improve the manager training program. We found that all managers are in favor of a cross

training program. Also, they suggested a corporate training program. These changes would

assist managers in improving their skills and advancing within the company.

11;1;i;;;; ieimai ii ;Warehouse Associates

Office AssociatesHome Furnishing Consultants

Conclusions:

Through our employee questionnaires, we found that the employees are very willing to

be cross-trained. All of American Signature’s employees work full-time and are interested in

moving up within the company. They are also interested in expanding their knowledge about the

duties and tasks of all areas of the store. If our cross-training program is successful, these

questionnaires allow us to find that employees would be willing to take part in our program as

well. i Personal Interview Findings:Jerry Frengou, Limited BrandsJan Ross, DSWKatie Rodriguez, DSW

Key Findings: Exhibit P7.5

• Willing to be cross-trained• Looking to move up within the company

• Interested in expanding knowledge about the company

• Interested in learning duties of all areas of the store

Key Findings: Exhibit IV.6

• Cross training allows business to operate smoothly in case of absence

• Allows for personal development—build skills and competencies

• Create a metric for evaluation—a way to measure progress

• Create timeline with clearly defined tasks to learn

• When implementing a cross training program:o Dedicate time to allow individuals to share activities with one

anothero Observe how they do work (listen in on phone calls)

o Practice 16

Conclusions:

Conducting interviews with business professionals from other prominent companies

assisted us in developing ideas for our own cross training plan for American Signature. We

interviewed professionals from The Limited Brands and Designer Shoe Warehouse, both of

which carry out successful cross training programs for their associates. We gathered insight on

effective ways to implement and evaluate cross training programs. The advice we were given will

supplement our research by giving us first hand information on creating a successful cross

trainingplan.Secondary Research Findings:

Key Findings:Exhibit 1V.7

• Southwest fills positions through internal promotion and lateral moves acrossdepartments

• By learning about the overall work process, employees understand where they fit and howtheir job relates to and supports that of their colleagues.• When the general manager is away, department heads can take roles replacing him, whichis a form of cross training.

• The most valuable benefit of cross training is a staff that can quickly adapt to the needs ofthe business.

• If an employee were to abruptly quit, the interruption it would cause is minimized becauseother staff members have already been familiarized with other business processes and caneasily slide into the vacant position. Cross training provides a way for tasks to havecontinuity and reduce down-time.• Employees involved in cross training programs become skilled at tasks outside the usualparameters of their jobs and thus become greater assets for the company while gainingknowledge and skills that benefit them personally.• A well designed cross training program can reduce costs, improve employee morale,reduce turnover, increase productivity, allow greater scheduling flexibility, and lead tooperational improvement.

• The ability of cross training employees to fill in during absences, vacations, and peakdemands can reduce costs of hiring new employees.• To implement a cross training program take the following steps:

o Develop a reasonable timelineo Determine costs

o Create a training scheduleo Make evaluation a fundamental and critical part of the process

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Conclusion:

While conducting secondary research, we gained an ample amount of general

information about cross training and its benefits. We found that cross training benefits the

company and its employees in many ways. The benefits include reducing employee turnover,

boredom, and costs, and increasing productivity and scheduling flexibility. Also, it allows

smooth store operation and provides a diversified work experience. The employees benefit by

enhancing their skills, knowledge, abilities, and opportunities for advancement. Managers will

also be able to take vacations and be confident in their employees’ ability to keep the store

running. We determined that a specific timeline is crucial in developing a cross training

program, as well as an evaluation method. Our secondary research will assist us in creating a

successful cross training program for American Signature Furniture.

V. PROPOSED STRATEGIC PLAN

A. GOALS/OBJECTWES AND RATIONALE

Objective 1

Improve ability for business to run efficiently

Objective 2

Enhance Skills. Knowledge. and Abilities of

Short Term Benefit: Managers are prepared to

perform more than a single job function on a daily basis.

Long Term Benefit: Managers are prepared and able

to fill in in case of emergency or absence of a manager in

another department, increased profitability

Rationale:

Management Team

Short Term Benefit: Managers are able to share the

daily workload throughout all departments.

Long Term Benefit: Increase productivity, chance of

advancement within the company, ability to handle any

situation that arises, and reduce boredom

Rationale:o Matt Strauss interviewo Management Questionnaireo Jerry Frengou interviewo Secondary Research

Through our interviews, questionnaires, and secondary

research, we determined that the ability for managers to

transfer their skills among all departments should be

improved.

o Matt Strauss interviewo Management Questionnaireo Jerry Frengou interviewo Secondary Research

Through our interviews, questionnaires, and secondary

research, we determined that increasing manager’ skifis,

knowledge, and abilities would benefit the company and

the managers.

i8

B. PROPOSED ACTIVITIES AND TIMELINES

This section outlines a cross training plan that has been created for each management

position. By creating this new training method we will resolve the problem of managers being

unable to function in other departments when needed. They are currently unable to manage due

to a lack of training and education in the various areas of the store, but through cross training

this problem will be eliminated. We concluded that the General Manager and assistant

managers throughout the store believe that cross training would be beneficial to the company,

so to implement the plan, we will inform each manager that a cross training plan has been

created and is ready to be put in motion.

This cross training plan will be implemented through a monthly rotation process. Each

manager will have the opportunity to spend four weeks learning and performing the tasks of

their colleagues. Two training coordinators from American Signature University will be brought

into the store for three months and will assist the managers in learning their cross training

duties. The two coordinators will oversee each manager’s progress as they rotate through each

Objective 3Reduce Management Turnover Rate

Objective 4Enhance Oortunity for Advancement

Short Term Benefit: Managers in place are more

efficient on a daily basis than a manager-in-training.

Long Term Benefit: American Signature will reduce

costs by internal advancement and will reduce the need

to hire and train new managers.

Rationale:

Short Term Benefit: Managers will be more

productive and motivated in day to day operations.

Long Term Benefit: Managers will be more qualified

for higher positions and will enhance job security.

Rationale:

o Matt Strauss interviewo Management Questionnaireo Jerry Frengou interviewo Secondary Research

After the abrupt resignation of the warehouse manager,

managers are concerned about the turnover rate. High

management turnover can hurt store operations.

o Matt Strauss interviewo Management Questionnaireo Jerry Frengou interviewo Jan Ross interviewo Secondary Research

Through our interviews, questionnaires, and secondary

research, we determined that many of the current

managers are concerned about their ability to advance

within the corporation.

19

position. All the materials that the store already owns will be used to aid the managers in the

learning process. On-the-job training will be a key element in the cross training process. This

will allow managers to truly understand how each position functions on a daily basis. The

managers will spend their normal work day using on-the-job training and performing tasks that

are essential to each position. On their own time, they will read manuals and use online tools

that are necessary for each position.

Below, we have created a rotation process for three months of cross training. We

developed matrices of the tasks for each management position at American Signature and set up

the rotation process for each month. Timelines for each section of tasks are also listed, along

with the tools needed for managers to be successful. MANAGER POSITION ROTATION:

:Mt-2OthY5 I Moflth2-2OdayS I -2casOperations CSS : I Operations ‘Merchandising : Operations WarehouseCSS iZZ’ Operations Merchandising Operations : Warehouse OperationsWarehouse tMerchandising : Warehouse ‘CSS : Merchandising CSSMerchandising c’Warehouse I CSS Warehouse CSS ‘Merchandising

I I J I

Exhibit V.1 Operations Manager Training ActivitiesI I

Responsible for the overall direction, coordination, and evaluationof the operational areas and departments within the store. Is toassist the store manager with daily operations of the store,including managing the store during the absence of the manager.

Summary of Position: Directly supervises the process performed by the Customer ServiceSupervisor (CSS), Inventory Control Associate (ICA), WarehouseManager, Warehouse Leaders, and Service Supervisor.

I 1• Establish a diverse, productive, and effective workforce throughrecruiting and hiring

Human Resources• Follow up on daily expectations with the time keeping system

Day 1 • Maintain absentee control calendar• Verify and submit weekly payroll

I -I - -

• Recruit, interview, hire, train, and schedule sales associates• Schedule weekly sales meetings with Store Manager partnership I

Sales Functions.• Coordinate Fabric Protection, Stain Safe, House Credit Card, and 1all products pomt of sales materials

I • Handle customer and associate issues and concernsI I I

20

I-I

• Review merchandise return • Monitor and control beddinglogs for previous day inventory• Maintain accuracy of physical • Oversee and coordinateinventory training requirements and• Review detailed delivery activities

Back Office Store System schedule each morning for • Manage merchandiseFunctions: accuracy preparation and delivery

Day 1— Day 6 • Monitor markdowns productivity and quality• Match trailer and call • Maintain control of unroutedcustomer outs deliveries• Place trailer orders by • Provide customer serviceassigning trailers and adding • Monitor service andon to order maintenance for equipment

I

- -iFinance Functions: • Complete weekly analysis of payroll recap.

Dayi2 --

• Handle customer issues and concerns

Office Functions: • Order office and store supplies

Day 13- Day 15 • Process dishonored checks• Coordinate all aspects of scheduling, hiring, and training• Identify accounts receivable balances and make corrections

Warehouse Functions: • Oversee all warehouse functionsDay 17 • Oversee safety

I -1• Be a liaison with all departments in the scheduling and training

Safety and Security on safety and loss preventionFunctions:

• Insure proper money handling procedures are being maintainedDayl8—Day2o• Responsible for the safety audit• Maintain store safety files, including OSHA laws, workerscompensation, and certificates of insurance.Bmldingmarntenan

Trainrng Tools:“ Boss Manual Operations Manager, all chapters

V V Boss Manual Warehouse Manager, chapters 3_7V Store Operations Manual Loss Prevention, chapter 3V E-link Users ManualV Operations Manager VideoV On-the-job shadowingV Boss Manual Merchandise Manager, chapter 6V Boss Manual Human Resource Manager, chapter 3

I

21

Exhibit V 2 EEE],Responsible for the overall direction, coordination and evaluationof Sales floor, Sales associates, and the merchandise presentation

Summary of Position: for the store. Assist the Store Manager and operations assistantwith the daily operations for the store. Directly supervises thedecorator, Sales Associates and housekeeping within the store.

————

• Inventory management of • Assist Sales AssociatesI floor goods • Print the availability report

• Review inventory location from work with vendor ordersreport for dropped items and give to Sales Associates• Move As-Is merchandise to • Assist Store Manager with

Back Office Store System the designated areas of the trailer order as necessaryFunctions: showroom • Print and clear past due

Day 1— Day 6 • Move samples to the pickups and delivery listsshowroom • Assist Operations Manager• Management of price tags in with matching trailer outs andthe showroom calling customer outs• Review written business • Order on the floorreport : merchandise

r• Review trailer invoices• Review bulletins and maintain circular

Tagging Functions: , .

Day 19- Day 20• Inventory traffic items• Maintain tag supplies, bedding, and traffic items displays• Print and maintain “oops log”

I I 1

• Establish a diverse, productive, and effective workforce through‘ recruiting and hiring

Human Resources .• Coordinate training and development of associates involved inFunctions:Day i8 : sales and merchandising areas

• Maintain absentee calendar on all sales associates and decoratort-

• Recruit, interview, hire, train and schedule sales associates• Schedule weekly sales meetings with Store Manager partnership• Supervise Sales AssociatesSales Functions: I

Day i — Day 17 : • Coordinate Fabric Protection, Stain Safe, House Credit Card, andall products point of sales materials• Handle customer and associate issues and concernsI 1 I• Total responsibility of the showroom floor presentation andupkeep• Maintam master floor set calendar and use as source for floor

‘ design and displayShowroom Functions ‘

Day 7- Day [4 1 • Coordinate all aspects of sales events• Display As-Is merchandise

1 • Mamtain proper display and distribution ofVCF brochures.Supervision of the decorator I

22

H I-,Training Tools:V Boss Manual Merchandising Manager, all chaptersV Best practice receiving merchandise for Showroom DisplayV Store Operations Manual Loss Prevention, chapter 3V E-link Users ManualV Merchandising Manager VideoV On-the-job shadowingV Boss Manual Human Resource Manager, chapter 8V Best practice Manual-Store Management

I—

Exhibit V.3 Customer Service Supervisor Training Activities iSummary of Position:

Supervise the office staff performing tasks related to sales,deliveries, customer service, and cash/credit card handling.Responsible for coordinating all financing activities related tocustomer purchases.

1

—r

• Administer financeapplications• Review all finance contractsto the appropriate financecompanies• Follow up on status ofcustomer contracts and updateinformation• Apply payment toappropriate accounts• Follow up on open creditapplications and void rejectedapplicationsI—

—

• Run misc. finance relatedreports• Finance sales report• Review all finance andadvertising reports for accuracy• Open mail and prepareinvoices for approval• Note description of bills asnecessary• Calculate and proceas payrollfor office associate• Run payment protection

Finance Functions:Day 1— Day 8

Back Office Store SystemFunctions:

Day 14— Day 15

; • Manage past due pick-ups before the day is posted• Close the day and review day end close paperwork with GeneralManager• Manage price holds• Manage credit application and finance functions• Manage pick-up and delivery verifications: • Assist sales associates

• Assist management with calculating and transmitting payroll• Maintain associate personnel files, interviewing, and hiringHuman Resources

. .

Functions: • Follow up on payroll time keepingDay 9 — Day 13 : • Create schedule

• Complete new hire schedule• Track vacation, sick days, and july duty pay• Assist with all legal procedures

I _I I

23

• Closeout daily business transactions

• Post memos, shift changes, cash outs, balance drawers

• Investigate charge backs

Office Functions: • Balance the day’s cash receipts, prepare deposits

Day 15— Day 20 • Expense transfers, direct shipments and month end entries

• Conduct weekly meetings with office staff

• Assist with customer service

• Maintain and order office supplies

• Process misc. income and expenses

________________________

-

TrainingTools:v Boss Manual Customer Service Supervisor, all chapters

‘ Safety Policy Manualv’ Payroll Procedures Manual

“ Human Resource Manual, chapter 8

“ Best Practice Store BackupsV Store Operations Manual Loss Prevention, chapter 3V Auto Finance Processing ManualV EZ ReferenceV BOSS Manual, chapter 3V E-Link Users ManualV Best Practices, Office AssociatesV CSS Manual Accounts Payable/ Cash Handling Procedure

Exhibit V.4 WarehOUSe Mafl Tra1fl1flgActt1es - -

overall

direction, coordination, and evaluation

of the store’s shipping and receiving functions. Directly supervises ‘

Summary of Position: two to fifty non- exempt associates.

• Oversees the delivery of merchandise

• Oversees the preparation and assembly of merchandise• Complete the delivery report

Delivery Functions: . .

• Reseal trailer and send mailDayi—Dayio

• Determine delivery route

• Verify nest day’s trailer

• Oversees the receipt of merchandise

• Oversees preparation of all floor samples

• Oversees customer pick-upBack Office/ Warehouse • Oversees loss prevention in warehouse

Functions: i •

Day 10— Day i8• Follow-up on daily exceptions to payroll

• Coordinate all activities of outside service program

1 • Unpack and scan merchandise

I • Handle errors and damages‘ • Maintain absentee calendar of warehouse associates

I J I24

Training Tools:V Boss Manual Warehouse Manager, all chaptersV Best Practice Creating Schedule Warehouse Manual, chapter 6V Safety Manual chapter 2-6V Shipping and Receiving ManualV Human Resource Manual Chapter 8V E-Link Users ManualV Payroll Manual

- zz1

H 1I

• Maintain a safe, healthy physical environment in the warehouse 1II• Conduct monthly safety meetings ISafety Functions: : • Maintain driver qualificationsDay i8- Day 20

• Maintain safe, clean delivery and service vehicles in good working:order

• Investigates all accidents in the warehouseI

• Complies with all governmental and company regulations

Above: Photos of the American Signature Warehouse.

FV1atLO IThe managers will be evaluated on each function area. Each function area has a timeline

and after the allotted time is complete, the training coordinators and the General Manager will

evaluate the manager in that area. They will be evaluated on a scale of “A”, “B”, and “C.” If the

manager is given an “A” for the function area, it means he/she is very efficient and well qualified

to perform this function if the actual manager in that area is absent. If a “B” is given, it means

they are efficient, but still need more assistance to be able to function in this area on their own.

If given a “C”, the manager needs more time to learn the processes of this function and is unable

25

to perform these tasks without another manager’s assistance. After each month is completed,

the manager will be graded in the area they were learning about. The training coordinators and

General Manager will decide if the manager in training is able to perform all the duties in the

specific area efficiently in case of the absence of their colleague. After each manager receives an

“A” in each position, they will receive certification that could lead to internal advancement.

C. PROPOSED BUDGET

After creating our cross training plan, we determined the costs for implementing our

plan. By using the manuals and online tools that American Signature already owns, we will

eliminate any costs that would be spent on outside materials. Also, the managers will be paid the

same salaries that they already receive because they will not spend any extra hours in the store

during the training process. They will read manuals and use online tools on their own time.

Bringing in two training consultants for three months will cost the store approximately $21,120.

Below is the breakdown of the costs for the American Signature University training

coordinators: - Cost per day $2; per consultant (2

consultants) for 8 hours—,.

Cost per $352 per day for 5 daysweek Total: $1760

Cost per $1760 per week for 4 weeksmonth Total: $7040

-

- - - I fh’f rioiiths -

I Total: $21,120duration cost

Exhibit V.5

Return on Investment:

We feel that if our cross training program is carried out efficiently, we will obtain our

goals and the plan will be successful. The turn-over rate will be reduced and our management

team will have the opportunity to advance within the company. Also, we will have satisfied

customers that will return to American Signature. Within a year we will be able to evaluate if our

net profit has increased:

Exhibit V.6

To Increase Net Profit:Excellent: % or more increase in total net profitGood: 4% or more increase in total net profitFair: 2% or more increase in total net profitPoor: Less than 2% increase in total net profit

26

After evaluating our program, we will determine if our cross training plan will be

extended to all employees.

Verification of Proposed Activities and Budget:

In order to verify the viability of our recommendations, we presented our project to the

General Manager, Matt Strauss, and the assistant managers at American Signature Furniture.

They validated our figures and informed us that these costs are minimal compared to the budget

American Signature now has in place for training their managers. They agreed that all the

proposed activities would be beneficial to the company. The General Manager requested a copy

of our project to present to the corporate offices of American Signature Furniture.

VI. BIBLIOGRAPHY IConsultantsLynch, Kit. Marketing Education and DECA Advisor. Gahanna, Ohio.Cochrane, Russ. Former Marketing Education and DECA Advisor. Gahanna, Ohio.

Personal InterviewsStrauss, Mall. General Manager of American Signature Furniture. Columbus, Ohio.Frengou, Jerry. Director of Operational Excellence Shared Services at Limited Brands.Columbus, Ohio.Ross, Jan. Senior Vice President of Accounting at DSW. Columbus, Ohio.Rodriguez, Katie. Manager of Learning Resource Center at DSW. Columbus, Ohio.

Management QuestionnairesMann, Joe. Operations Manager at American Signature Furniture. Columbus, Ohio.Kohler, Keith. Merchandising Manager at American Signature Furniture. Columbus, Ohio.Dias, Donna. Customer Service Supervisor at American Signature Furniture. Columbus, Ohio.

LiteratureSouthwest Airlines WayAmerican Signature Furniture Management BOSS Training ManualsAmerican Signature University E-link Online ManualsAmerican Signature Training Video ListsAmerican Signature Management Training Manuals: SafetyAmerican Signature Management Training Manuals: PayrollAmerican Signature Management Training Manuals: Human ResourcesAmerican Signature Management Training Manuals: Best PracticesAmerican Signature Management Training Manuals: FinancesAmerican Signature Management Training Manuals: Loss Prevention

27

Internet Sites“Cross-Training employees will better position companies for crisis flu outbreak” BizTimes.com“Cross-Training” Restaurantowner.com“Cross Training as a Motivational and Problem-Solving Technique” CanadaOne“The benefits of cross-training employees” Helium“Business Strategies During a Tough Economy: Cross Training” Exec Digital“Program for Employee Cross Training” U.C. Davis Health System“Leadership Laboratory” The SANS Technology Institute“Cross-Training” Inc.“Cross- Training Program” Inc.“Benefits of Cross Training” Inc.“The benefits of cross-training employees” Helium

WI. APPENDIX IManagement Questionnaire

Introduction & Overview: Hello, we are conducting research about the training practices ofmanagement level employees. This survey is strictly confidential and for school use only. If you

I could have this completed by Tuesday, January 19, 2010, it would be greatly appreciated! Thanksagain for your time!

1. How long have you been in a management position with your company?2. Did you have any previous management experience before starting with this company?3. I’m going to list some common training methods. For each method I list please indicate if it wasused during your training for your management position at American Signature.

a. Video YNb. Live Demonstration or Role Playing Y Nc. Printed Training Manual Y Nd. Online Training Modules Y Ne. Shadowing of Current Managers Y N

4. What type of training method do you like best?5. How long was your initial training process?6. On a scale of 1-5, with5 being the best- Please rate how effective you believe the managementtraining program is at your business.

7. On a scale of 1-5, with 5 being the best- Please rate the work environment at your business.1 8. Do you think it would be beneficial for managers to be cross-trained among each others

management positions?8.5 On a scale of 1-5, with being the best- Please rate how knowledgeable you are of the dutiesand job tasks of the other management positions at American Signature.9. Do you feel like you are part of the goal setting process for the store?

1 10. How often are you evaluated?ii. Do you have any comments on how the management training process could be improved?

Exhibit VII.i 28

HAMERIcAN SIGNATURE

FU RN ITU RE

March 1, 2010

To Whom It May Concern:

This letter is formed in response to the competed project by two DECA students, Carissa Strauss andLeah Poister, on improving the training program for American Signature Furniture.I extend my gratitude for the efforts these two students have put forth in compiling this cross trainingproposal. From the very beginning, we were impressed by the way Carissa and Leah presentedthemselves. They both displayed great passion towards their project. They had a clear outline of theirgoals and objectives for this project and were well-prepared for their personal interview. They also tookgreat initiative in creating questionnaires for my management team. They sought specific information anddesigned their project in a well thought out manner. Striving for top quality was a goal that these two setfrom the very beginning and they have clearly achieved that goal.

The amount of time and effort they put into this project was very impressive. All the information theygathered was very detailed. The quality of their work was excellent and presented in a clear and concisemanner. It is apparent that they went the extra mile and spent a great deal of time speaking to trainingprofessionals and researching successful training methods and before creating their detailed proposal.Their proposed training strategy was very thorough and could in fact be implemented within our store andthe corporation as a whole.

With their impressive research, these two have learned a great deal about implementing a training planand how a retail business functions. They also gained experience in composing a very remarkableproposal and an exceptional presentation. Not only will they use this knowledge and skill for their project,but in their future marketing endeavors. I am very pleased with their work and the professional manner inwhich they conducted their research.

I would like to thank them both for choosing American Signature Furniture for their project and wishthem the best of luck in their competition and future business careers.

Sincerely,

Mart StraussGeneral Manager of American Signature Furniture

3700 West Dublin Granville Rd -- Columbus, 01143235 -- Phone 614-923-103329