penumbra media & design

Communicating Corporate Culture

The Biggest Crime in Retail

Matthew Hudson | March 7, 2012

That’s right, I said it. The biggest crime in retail. It’s not employee theft or check fraud or “bait and switch.” Its much more damaging than that. It’s this - you can make a living selling at retail by being an order taker.

Granted, it’s not much of a living, but it will pay the bills. Here is what I mean. In my 28 years of retail, I have spent countless hours working on retail floors watching, studying and monitoring customer/salesperson interaction. It never ceases to amaze me how the “luck of the draw” (or should we say up) can make a salesperson’s day. Everyday, a Customer will walk in the door and tell you exactly what they want and even ask for it in 7 different colors. There was no “selling” in this situation, just order taking.

You know I am right. You see yourself everyday. And its frustrating to you. You Practice, Drill and Rehearse to make your selling skills as great as they can be and the lazy-show-up-late-shoot-from-the-hip-too-cool-for-retail person has a big ticket and we cry “why! ” Oh the injustice of it all.

I agree.

It’s not fair. And I wish there was a way to make it fair. I wish we could make sure this behavior does not get rewarded by a sale. I do know that if I could event a device that would motor and solve this problem, I would be a hero for many, many retailers. I even love the question at the cashier when they ask, “Was anyone helping you?” People have a very different definition of help. Customers define it differently than salespeople do. The question should be, “was anyone selling to you today?” This is a question I would like to answer.

You see the crime on the retailer’s part is that they reward and allow this behavior. The simple question “was anyone helping you or assisting you today?” is designed to make sure they track the sales of people. But this does not give you an accurate reflection of whether or not someone is selling. It means that someone pointed me to the socks when I asked where they were. They did not sell me; they helped me. And helpers do not make retailers money. They do not add-on to sales or accessorize or try for the Add-on (as we say in The Retail Sales Bible.) Oh, don’t get me wrong. They do have tickets with multiple lines on them and even accessories. But they did not add these on the Customer did. And this is not selling, it is order-taking.

The crime of the salesperson is the money they are leaving on the table. Sure, they can pay their bills, but the #1 reason for turnover in retail is money. Yes, all of the surveys say it’s job satisfaction and we agree. But set that reason aside and all you are left with is money. And of course, it is the retailers fault they are not making more money and not their own! At least that is the lie they continue to tell themselves as they move from one place to another to make $.25 more an hour.

People inherently don’t want to the the best they can be. The want to be the most they have to be to keep their job - nothing more. If we were “self-starters” as the ads in the paper always say, then this would not be an issue. But we are not self-starters. Too many people are in retail because they are on their way somewhere else. Its a pit stop along the way. Sad. But true.

These people cost the company money and more importantly, themselves money. And I bet your expecting the next post to be “The 6 Steps to Solving this Crime.” But here is the rub. This is a victimless crime. The retailer is not a victim here - they are culpable.

You want to fix this? Then do not hire them in the first place! How many times have we said before - hire people who fit your culture. Period. We like to hire based on instinct or past experience. We need to hire based on culture. If your culture is a high performance selling and service culture, then this issue will not be in your store. You would not tolerate it and the culture would not tolerate it and the problem gets fixed by the salespeople on your floor who do the policing for you.

But, if this problem is in your store as it is in 85% of retailers today, then rest assured - you do NOT have a selling/service culture. You may be close. And you may be better than anyone in your town. But today, that is not enough. You have to exceed the Customer’s expectations not meet them.

So, this public service announcement is about crime. And only you can solve this crime in your store. You are not a victim of a weak workforce. You are a product of your culture. But you can solve the crime. Look for signs in your culture that reward this type of behavior (like asking was anyone helping you today at the register.) The best way to manage this, though, is to be on the sales floor. Too many managers get into their role and become “suits.” They are “above” selling anymore. They have more important things to do. They are more important. Please!

What could be more important than increasing revenue and service in your store? (if you have an answer to that question, then this blog is not for you!)

A Culture of Titles - Part Deux

Matthew Hudson | February 1, 2012

“I am accountable for ensuring on time deliveries for our customers.”
“I am the main conduit for information for our team to stay connected to what is happening in the home office.”
“I am responsible for creating the materials needed to sell our products.”
“I am in charge of customer delight.”

All of these statements are in response to the question, “what do you do?” the most common ‘get to know you’ question we all use in everyday lives. First we say, “where are you from?” then we ask “what do you do?” Its just how us humans are wired.

The paradigm shift we are suggesting is to create a culture when people feel empowered, responsible and accountable for their role. In the above examples, the answers could have been..
“I’m a delivery driver for Staples.”
“I’m the communications manager for Sysco.”
I am the marketing manager for Genesco.”
“I am every employee of the organization.” (Honestly, wouldn’t you love to hear that last line come from all your employees?

If you have culture of titles in your organization, start by shifting the conversation from the title to what they do - after all, that is actually the question being asked! Teach your people to think and behave in this manner. There are hundreds of people who work in your company (if not thousands) and every day the same question gets asked - only his time it is more about “how do you fit here and do I salute you?”

This is another one of our easier said than done suggestions, but one that can have a huge impact on your culture. Try it.

Can Apple Save Education?

Matthew Hudson | January 25, 2012

Can tech save education?
Via: OnlineEducation.net

A Culture of Titles

Matthew Hudson | January 19, 2012

We work with companies who constantly tout “empowered” environments and trust in employees. Yet, invariably, we will always find a ton of cultural evidence that suggests the opposite. Things like complicated approval processes or sign-offs.

No matter how empowered the execs think the org is, the proof is in the culture. Its funny how even as we are going through the proposal phase with a client for new business that we keep getting held up because the “empowered” person we have been dealing with this whole time still needs his boss’ and her boss’ approval before moving forward. (actually, we have gotten pretty good at keeping this from happening now.)

Most companies have cultures of “titles”. who you are and what power you have and how I should treat you is based on your title. I remember my time in corporate as a COO. I would always give me card out with my personal cell phone number to employee and tell them to contact me if they needed anything. I really meant it. But how many calls do you think I got? You are right. All they saw was COO, they never saw the person. This was something we had to change in our culture and we went to work on it and did.

But here is my thought for the day. Imagine if you will, a place where when you ask someone what they do instead of answering “I am the Director for Planning and Inventory for a big firm in Austin” they would answer “I am responsible for making sure the sales team in our company has the inventory they need in stock and ready to ship when they sell it.”

See the difference?

We’ll talk more about this in our next post.

CES 2012 Predictions

Matthew Hudson | December 25, 2011

Well, last year we were pretty spot on with our predictions. So let’s see if we can do it again this year.

While this year is going to be back to the old days of hype and attendance (should be a record crowd) there will not be any new ground-breaking technology introduced. Mostly improvements on what we already know.

  • Tablets will continue to be a big theme. Except you will see lots of names you have never heard of trying to break into the space.
  • Tablet accessories will dominate. Lots of people trying to get into the game with their ideas of stands, cases, protection etc
  • Waterproof phones. Not sure the pratcial application of this except that my 16 month old daughter (who has had an iPad since she was 4 months old) will probably drop hers in the toilet soon. So, have to watch for that.
  • Last year, we predicted that 3D without glasses would be shown and there were. But the images were not solid. This year we should see lots of improvement.  

So why not many breakthrough ideas? Well, for the most part the industry is in the infant stages of transforming into a device-driven word versus a fully functioning laptop or TV world. iCloud is just the beginning of what is to come.

The devices in our hands, in our homes, in our cars will merely be portals - screens to display the data and content streaming from somehwere in the cloud. Cloud is not too sexy and not something we will see lots of at CES since it is not something the consumer will hold in their hands.But it is definitely something they will interact with. iCloud has already reached record numbers. And Google and Microsoft will not take this lying down - they will respond.

Windows 8 is planned to be an operating system that is androgynous to the device. In other words, mobile version and PC version are the same. We spoke last year of the coming age where the line between app driven operating systems and software driven operating systems would begin to blur. We still see the day when Microsoft Word is not longer a software package, but an app that you use. Let’s face it, 90% of what we do with Word could be done from an app.

So, what will CES become in the future? Look for an “App Section” in 2013.