Sears Version Final Virson

8/7/2019 Sears Version Final Virson

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TURNAROUNDApril 16, 2011


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Member 1

Member 2

Member 3

Member 4


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Background and Objective

Business Performance Measurement KPIs : As-Is/Planned using Traffic Lights

Booze Balls

Stake Holder Analysis Matrix

Voice of Customer

Root Cause Analysis Fish Bone Diagram

Risk Analysis Benefits-Risk Matrix

Future Projection Layout analysis Past , Present, Future projection

CAPEX-OPEX Allocation and Cost Savings

Fostering Innovation

Project Plan

Gantt Chart


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Founded in 1886

1925 opened its first retail store

Sales $1 billion in 1945

$17 billion in 1980

$41 billion in 1985

Diversification began in 1931

Allstate Insurance Company in 1931

Purchased Homart Development in 1959 1980 provided one-stop shopping strategy Stock

brokerage and Real estate brokerage

In 1984, co-founded Prodigy, an on-line communication

services firm

In 1985, launched credit card


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Lack of peripheral vision

Stagnant growth and increased

competition Troubled credit card business

Lack of internal communication

Lack of direction

Employee lack of loyalty and knowledge

Suffered from the diversification

Attention diverted from core operations


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Criteria KPI AS-IS FutureTraffic

Lights

Financial Performance

Quality 73.00%

Performance indicators/metrics being

developed for defect management

Performance indicators/metrics established and

practised organization wide

Cost of Handling Goods 65.39% High percentage in Handling Goods

Figure out where we can save the spending - Inventory

and Suppliers

Revenue per retail store (3371 store 0.03%

Some stores is not so profitable and

pull down the average

Figure out the not profit stores and relocate it. Also

increase the profit for each stores.

Profitable Segment-sales/services 88.67%

Transfer from other segments to focus

on retails The profit from retails will be increased

Return on Advertising Spend 21.17%

High percentage spend on advertising

but no significant return

Analysis the advertising stragies which can increase the

profit - Marketing

Customer Capture

Customer Satisfaction 74.00% Rank 121s t in the US Base on the survey resule to inc rease the performance

Profitable Setment - Women 54.61%

Sears was able to identify their core

customers women in their 30s

Find out more about the desire of this customer

setment

Store Efficiency

Store Environment 69.23%

Layout is not smooth enough and also

the Indicates is not clear Rearrange the store layout

Suited Staff 70.50%

Lack of knowledge and communication

skill with cus tomers Build up training programs to inc rease the performance

Empolyee Satisfaction 70.00%

Unsatisfy with poor wage and working

condition

Set up reward prgrams and upgrade working

environment to increase the performance

Customer Satisfaction Helpfulness, Compentency, Merchandise selection, Price, and Availability

AREASOF CONCERN:INVENTORY MANAGEMENT, MARKETINGROI , QUALITY METRICS, REVENUE PER STORE ,CUSTOMER ,EMPLOYEE SATISFACTION


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Evaluation Criteria Suppliers EmployeesStore

manager

Financial

manager

Marketing

manager

Simplicity

Customer orientation

Internal Communication

Inventory management

Customer services

Brand Loyalty

Price Competence

Revenue growth

Customer development

Level of Support Required


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Evaluation-revamp Strong Barrier Barrier Slight Barrier Neutral Slight Support Support Strongly Support

Suppliers

Store employees

Store manager

Supply-chainmanager

Financial manager

Operation manager

Marketing manager

Stockholders

FOCUS : SUPPLIERS , EMPLOYEES , MIDDLE-MANAGEMENT


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CRITICAL PATH : EFFICIENT INVENTORY MANAGEMENT WHILE REMODELLING STORE LAYOUT AND BRAND IMAGE TAKING

EMPLOYEES AS YOUR MAJOR SUPPORT FACTORS


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Sales

Personn

elTraining

InternalCommunicat

ion System

Set-Up

ShowRoomS

InventoryManagem-

ent

LayoutRearrangem

-ent

Store

Location

EmployeeLoyalty

Programs

CustomerSatisfactio

n Program

Advertising


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Past Sears Store (1960) Current Sears Store(2011)


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Quality of Goods

Too Many Recalls!

Low-quality goods (a-la

Wal-Mart)

Size/style diversificationis low

Past season stocks

Sold expired goods!

[Pampers baby wipes]

No spare parts of

appliances sold

Service offeringsunclear

Small floor/shelf space

Store Operating

time/conditions

Thanksgiving /

Holiday hours notin line with other

stores

Christmas goods

not early enough

Stores are

rundown

Undesirablelocations

Customer Service

No direct helpline to

most stores

Too much waiting timefor parts/services/repair

Online system unstable

Service personnel's are

overbooked, overworked

Untrained Sales

associates

VERY long bills/ receipts(!!!!)

Best Practices not adhered to

No Customer Focus

No employee enablement


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A 5% improvement in employee attitudes will result in a 1.3% increase in customer

satisfaction resulting in a 0.5% improvement in revenue growth!


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0%

10%

20%

30%

40%

50%

60%70%

80%

90%

100%

v rtisi / ark ti

Utiliti sSalary/Wa

I v tory

Employee Trai i

Floorpla

Store Locatio

ai tenance Capex

Cost Savin

10%

10%

30%

10%

Operational Efficiency and Cost Saving possibilities in

Advertising (10%) , Inventory Management (10%) , Store locations (10%)


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FLOOR SPACEEFFECIENCY , EMPLOYEE TRAINING

- IKEA

COST MANAGEMENT, SUPPLIER DISTRIBUTION

CHANNELS WALMART

MARKETING , IMAGE MANAGEMENT , ECOMMERCE

- TARGET

SUBJECT MATTER EXPERTISE - THEHOME DEPOT

INVENTORY MANAGEMENT - COSTCO


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ECOMMERCE

BETTER UTILITIESUTILITIES EMPLOYEE TRAINING

MAINTENANCE CAPEX

CUSTOMER SEGMENT: THE MIDDLE CLASS

FAMILY!

A 360 DEGREE SERVICE OFFERING!


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ProjectPlanning

4 MONTHS

ProjectInnovation

4 MONTHS

ProcessStabilization

18 MONTHS

Rollout

10MONTHS

BEST PRACTICES FOLLOWED

CUSTOMER FOCUS

AUTOMATION AND TECHNOLOGY INTEGRATION

PERCEPTION MANAGEMENT

REVAMP REPUTATION

SHARE

VISION/MISSION

NEW METRICS

KPI FOR

SHAREHOLDERS

ORG

RESTRUCTURE

REDEFINE

POSITIONING

STRATEGY

GROWTH CAPEX

PLANS

HUMAN CAPITAL

COLLABORATION

AUTOMATION/TE

CH PLANNING

STANDARDIZEACCOUNTING SYSTEM

ERP

IMPLEMENTATION

MARKETING/STRATE

GY

MAINTENANCE

CAPEX

E-COMMERCE

STORE-LAYOUTCHANGES

REVAMPBENEFITS/PAYROLL

HUMAN CAPITAL

INTEGRATION

PARTNER

ENABLEMENT

EMPLOYEE

TRAINING FOR

AUTOMATION

CUSTOMER PERKSFOR LOYALITY


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PROCESSSTABI

IZATION

ROLLOUT

PROJECTPLANNING

PROCESSINNOVATIO

N


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Number Task Start End Duration 2012

January February March April May June July August September October November December

1 P RO JE CT P LAN NIN G ST AG E 4 /1 6/2 01 1 8/1 8/2 01 1 8 7

2 SH AR E VISIO N/M ISSIO N 4 /1 6/2 01 1 5 /2 0/2 01 1 2 5

3 NEW METRICS 4/16/2011 6/23/2011 48

4 KPI FO R SH AR EH OLD ER S 6 /2 4/2 01 1 7 /1 4/2 01 1 1 4

5 O RG RESTRUCTURE 7/15/2011 8/18/2011 25

6 Milestone 8/19/2011 8/19/2011

7 PROC ESS INNOVATION STAGE 8/20/ 2011 12/ 20/2011 83

8 REDEFINE POSITIONING STRATEGY 8/20/ 2011 9/ 12/2011 15

9 G RO WT H C APE X PL ANS 9 /1 3/2 01 1 1 0/1 8/2 01 1 2 5

10 HUMAN CAPITAL COLLABORATION 10/ 19/2011 11/ 8/ 2011 15

11 AUTOMATION/TECH PLANNING 11/9/2011 12/20/2011 28

12 Milestone 12/21/2011 12/21/2011

13 PROCESS STABILIZATION STAGE 12/22/2011 6/20/2013 379

14 STANDARDIZE ACCOUNTING SYS 12/ 22/2011 3/2/2012 50

1 5 E RP IM PL EME NT AT IO N 3 /2 4/2 01 2 6 /1 8/2 01 2 6 0

1 6 M AR KE TIN G/ST RA TE GY 1 2/2 2/2 01 1 4 /1 3/2 01 2 8 0

1 7 M AINT EN AN CE C APE X 6 /1 9/2 01 2 9 /2 6/2 01 2 7 0

18 E-COMMERCE 9/27/2012 1/8/2013 701 9 ST O RE -L AY O UT C HA NG ES 9 /2 7/2 01 2 6 /2 0/2 01 3 1 84

20 Milestone 6/21/2013 6/21/2013

21 ROLLOUT STAGE 6/22/2013 4/17/2014 205

22 REVAMP BENEFITS/ PAYROLL 6/22/ 2013 8/26/ 2013 45

23 HUMAN CA PITAL INTEGRATION 8 /1 /2 01 3 9 /1 2/2 01 3 3 0

24 PAR TNE R E NAB LE ME NT 7/1/2013 9/3/2013 45

25 EMPLOYEE TRAINING FOR AUTOMATION 8/27/2013 12/20/2013 80

26 CUSTOMER PERKS FO R LOYALITY 12/ 1/ 2013 4/ 17/2014 95

27 Milestone 4/18/2014 4/18/2014

28 Monthly Meeting - Department Manager 4/16/2011 4/16/2011

29 Quarter ly Meeting - C EO 4/16/ 2011 4/16/ 2011


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Number Task Start End Duration 2013

January February March April May June July August September October November December

1 PROJECT PLANNING STAGE 4/16/2011 8/18/2011 87

2 SH AR E V ISI ON/MI SSI ON 4/16/2011 5/20/2011 25

3 NEW METRICS 4/16/2011 6/23/2011 48

4 KPI F OR S HA REH OL DE RS 6/24/2011 7/14/2011 14

5 O RG RESTRUCTURE 7/15/2011 8/18/2011 25

6 Milestone 8/19/2011 8/19/20117 PROCESS INNOVATION STAGE 8/20/2011 12/20/2011 83

8 REDEFINE POSITIONING STRATEGY 8/20/2011 9/12/2011 15

9 G RO WTH C APE X PL ANS 9/13/2011 10/18/2011 25

10 HUMAN CAPI TAL COLLABORATION 10/19/2011 11/8/2011 15

11 AUTOMATION/TECH PLANNING 11/9/2011 12/20/2011 28

12 Milestone 12/21/2011 12/21/2011

13 PROCESS STABILIZATION STAGE 12/22/2011 6/20/2013 379

14 STANDARDIZE ACCOUNTING SYS 12/22/2011 3/2/2012 50

15 E RP I MPL EME NTATIO N 3/24/2012 6/18/2012 60

16 MA RKE TING/STRA TE GY 12/22/2011 4/13/2012 80

17 MAINT ENANC E C APEX 6/ 19/2012 9/26/ 2012 70

18 E-COMMERCE 9/27/2012 1/8/2013 70

19 STORE-LAYOUT CHANGES 9/27/2012 6/20/2013 184

20 Milestone 6/21/2013 6/21/2013

21 RO LLO UT STAGE 6/22/2013 4/17/2014 205

22 REVAMP BENEFITS/PAYROLL 6/22/2013 8/26/2013 45

23 HUMAN CAPITAL INTEGRATION 8/1/2013 9/12/2013 30

24 PAR TNER ENAB LEMENT 7/1/ 2013 9/3/ 2013 45

25 EMPLOYEE TRAINING FOR AUTOMATION 8/27/2013 12/20/2013 80

26 CUSTOMER PERKS FOR LOYALITY 12/1/2013 4/17/2014 95

27 Milestone 4/18/2014 4/18/2014

28 Monthly Meeting - Department Manager 4/16/2011 4/16/2011

29 Quarterly Meet ing - CEO 4/16/2011 4/16/2011


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11 AUTOMATION/TECHPLANNING 11/9/G

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12 MilestF

ne 12/21/2011 12/21/2011

13 PROC ESSSTA h ILIZATION STAGE 12/22/2011 6/20/2013 379

14 STANDARDIZE ACCOUNTINGSg

S 12/22/2011 3/2/2012 50

15 ERPIMPLEMENTATION 3/24/2012 6/18/2012 60

16 MARKETING/STRATEGg

12/22/2011 4/13/2012 80

17 MAINTENANCE CAPEX 6/19/2012 9/26/2012 70

18 E-COMMERCE 9/27/2012 1/8/2013 70

19 STO RE-LAg

OUT CHANGES 9/27/2012 6/20/2013 184

20 MilestF

ne 6/21/2013 6/21/2013

21 ROLLOUT STAGE 6/22/2013 4/17/2014 205

22 REVAMP BENEFITS/PAg

ROLL 6/22/2013 8/26/2013 45

23 HUMAN CAPITAL INTEGRATION 8/1/2013 9/12/2013 30

24 PARTNER ENABLEMENT 7/1/2013 9/3/2013 45

25 EMPLOY EE TRAININGFOR AUTOMATION 8/27/2 01 3 1 2/20/2013 80

26 CUSTO MER PERKSFOR LOYALITY 12/1/2013 4/17/2014 95

27 MilestF

ne 4/18/2014 4/18/2014

28 Monthly Meet ini

- DepB @

t9

ent Manage@

4/16/2011 4/16/2011

29 Quarterly Meet ing - CEO 4/16/2011 4/16/2011


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CHANGE LAYOUT LIKE IKEAS MODELLING EASY DISPLAY OF SERVICE

OFFERING!


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EMPLOYEE

Contests: Innovator of the month [Operational efficiency/revenuegeneration/image management]

Customer selected quality sales personnel

CUSTOMER

Reward cards , Membership per p s

Operational reformation feedbac p s

Random Surprise feel good rewards: 100th foot step entering etc

POTENTIALSYUPPY-D.I.N.K THE COOL GUY THE DIVA

Giveaways partnership with upcomingwebsites/blogs/concerts

Online service offerings with realistically generous rewards


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Documents

Sears Version Final Virson