Tuesday, March 24, 2009

Rewards, Expectations and Deliverables

Strange things have happened and aligning rewards with expectations and deliverables is certainly not one of them. Consulting is a fun business, it gives me the ability to see a lot of new things and experience a lot of strange, funny and sometimes stupid concepts.

Recently during an engagement I had an opportunity to better understand some performance metrics for a large national retailer. The part that was most enlightening was the knowledge of the performance indicators and a mental contrast with a street hawker merchandising and selling their wares… the result was the inspiration for this essay.


Street Hawker Retail

(typical from a Developing Market)

Large Retailer

(typical to a Developed Market)

Image


Not in the KPIs

· Customer satisfaction
·
Customer experience
· Customer communication
· Vendor satisfaction/partnership

· Customer satisfaction
· Customer experience
· Customer communication
· Vendor partnership/partnership

KPIs

· Revenues
· Profits
· Units
· Identical sales to previous day

· Revenues
· Profits
· Units
· Identical sales to year ago
· GMROI
· Inventory turns