Post on 28-Dec-2015
DELLMART & COMPANY 3
ObjectivesObjectivesIntroduce elements of organizationBridge the theory and reality gapIdentify common problems and issues
DELLMART & COMPANY 5
History of OrganizationHistory of OrganizationTribal Chief
– Division of labor• Warrior• Hunter• Support
– Report to Tribal CouncilBirthright Leader
King
Earl/General Earl/General Earl/General
Advisors
DELLMART & COMPANY 6
Element - PeopleElement - PeopleEmployees are the greatest asset of
every companyTypes
– Striving to get ahead– Takes pride in work– Puts in time
A great plan without good people is useless
DELLMART & COMPANY 7
Element - ManagementElement - ManagementOrganizations are built around managementManagement skills
– Inherent– Learned
You’re not a manager until you hired and fired someone
A good manager is someone who is right 51% of the time
Traits– Common sense– Right and wrong values
DELLMART & COMPANY 8
Element - CultureElement - CultureDefinition – “The sum total of ways of
living built up by a group of human beings and transmitted from one generation to another”
Types– Motherland– Company
DELLMART & COMPANY 9
Element - KnowledgeElement - KnowledgeTypes
– Education– Experience
Education– Accounting & Finance– Marketing– Information Technology– Human Resources– Distribution
DELLMART & COMPANY 10
Factor - SizeFactor - Size
0
5
10
15
20
25
30
35
Small Medium Large
General
Medium
Special
DELLMART & COMPANY 11
Factor – Span of ControlFactor – Span of Control
1 2 3 4 5 6
1 2 3 4 5 6 7 8 9 10 11
Old – 6 to 1
New – 11 to 1
DELLMART & COMPANY 14
People Vs StructurePeople Vs StructureBuild structure
around employees– Management talent– Span of Control– Knowledge
DELLMART & COMPANY 16
Board of DirectorsBoard of DirectorsSenior most advisorsMaximum independenceDiverse background and experience
Board of Directors
DELLMART & COMPANY 17
Managing DirectorManaging DirectorChief Executive OfficerStrategy executionGeneralist
Board of Directors
Managing Director
DELLMART & COMPANY 18
Management TeamManagement Team
Core requirements– Merchandising– Store Operations– Accounting & Finance– Administration (Human Resources)
Optional – Logistics/Distribution
ManagingDirector
MerchandisingStore
OperationsLogistics
Accounting &Finance
Administration
DELLMART & COMPANY 19
Expanded Management Expanded Management TeamTeam
New direct reports– Human Resources/Personnel– Information Technology– Real Estate– Treasurer (public company)– General Counsel
ManagingDirector
MerchandisingStore
Operations
LogisticsAccounting &
Finance
HumanResources
InformationTechnology
RealEstate
Treasurer
LegalLoss
Prevention
DELLMART & COMPANY 20
Executive BoardExecutive Board
Board of Directors – Overall responsibility including strategy
Executive Board – Daily operating responsibility including tactics– Similar to the Management Team approach
Board ofDirectors
ExecutiveBoard
DELLMART & COMPANY 21
Line Vs StaffLine Vs StaffLineMerchandisingStore OperationsLogistics
StaffAccounting & FinanceHuman ResourcesInformation TechnologyLegalLoss PreventionReal EstateTreasury
DELLMART & COMPANY 22
Marketing & Marketing & MerchandisingMerchandisingMarketing – “the total of activities by
which transfer of title or possession of goods from seller to buyer is effected, including advertising, shipping, storing and selling”
Merchandising – “to plan for and promote the sale”
DELLMART & COMPANY 23
MarketingMarketingCompetitive assessmentCustomer identification
– Research– Frequent Shopper program
Corporate image– Advertising
DELLMART & COMPANY 24
Merchandising IssuesMerchandising IssuesNumber of vendorsNumber of itemsNumber of transactionsInformation Technology supportPromotional strategyWarehouse Vs Direct Store Delivery
DELLMART & COMPANY 26
Buyer OrganizationBuyer Organization
VP Merchandising
Buyer Buyer Buyer Administration
Retail Pricing AdvertisingSpace
DELLMART & COMPANY 27
Buyer Time AllocationBuyer Time AllocationStore Visit,
20%
New Products,
10%
Promotion, 15%
Data, 15%
Replenish, 40%
DELLMART & COMPANY 29
Category ElementsCategory ElementsManage the category as a strategic
business unitDevelop strategic category plans based
on category goals, competitors and market conditions
Determine price, merchandising, promotion and product mix
Collaborate with suppliers
DELLMART & COMPANY 30
Category ProcessCategory Process
Category Definition
Category Role
Category Assessment
Category Scorecard
Category Strategies
Category Tactics
Plan Implementation
Cat
egor
y R
evie
w
DELLMART & COMPANY 31
Category OrganizationCategory Organization
Product Supply
Space Allocation
Retail Merchandising
Category Analysis
Retail Pricing
Advertising Coordination
Price/Data Integrity
Marketing Services
Allowance/Cost Control
CategoryManagement
DELLMART & COMPANY 32
Category Management Category Management RealityRealityLacking education and
trainingIgnoring processSelling Category Captain
positionResult is Super Buyer
DELLMART & COMPANY 33
Store Operations IssuesStore Operations IssuesAlignment - format Vs geographyTraining – support Vs Human
ResourcesTechnology - support Vs Information
Technology
DELLMART & COMPANY 34
Store Operations Store Operations OrganizationOrganization
Vice President
District District District Support
Store
Store
Store
Store
Store
Store
Store
Store
Store
Meat
Product
Bakery
Labor
ReplenishmentHow many stores per district ?
DELLMART & COMPANY 36
Logistics IssuesLogistics IssuesCapital – own Vs leaseManagement – operate Vs 3rd partyReplenishment – Logistics Vs
MerchandisingProduction – warehouse Vs direct
report
DELLMART & COMPANY 37
Logistics OrganizationLogistics OrganizationVice
President
Transportation Warehouse Maintenance
Inbound
Outbound
Receiving
Selection
Shipping
InventoryControl
ReplenishmentIndustrial
Engineering
Production
DELLMART & COMPANY 38
Finance & Accounting Finance & Accounting IssuesIssuesPayroll – Finance Vs Human ResourcesComputers – Finance Vs direct reportControl – checks and balances
DELLMART & COMPANY 39
Finance & Accounting Finance & Accounting OrganizationOrganization
Vice President
Controller PayrollInternalAudit
Budget
AccountsPayable
GeneralLedger
InformationTechnology Tax
DELLMART & COMPANY 40
Human ResourcesHuman ResourcesIssues
– Payroll– Training– Culture
Vice President
Recruitment Payroll Training Compliance
Headquarters
Stores
Logistics
DELLMART & COMPANY 41
Real EstateReal EstateIssues
– Own Vs rent– Remodeling– Equipment selection
Vice President
Site SelectionContract
ManagementConstruction Maintenance
DELLMART & COMPANY 42
Loss PreventionLoss PreventionIssues
– Safety– Shrink
Vice President
Stores Warehouse Headquarters Safety
DELLMART & COMPANY 43
Dual ManagementDual ManagementDotted line reportingEffective
– Policy– Procedures
DELLMART & COMPANY 45
Board of DirectorsBoard of DirectorsQuarterly meetingResponsibilities
– Strategy approval– Budget approval– Audit– Executive compensation– Treasury– Shareholder communication
DELLMART & COMPANY 46
Management Team / Management Team / BoardBoardMonthly meetingResponsibilities
– Strategy development– Budget development– Daily operations & execution
DELLMART & COMPANY 47
Department InteractDepartment Interact
Merchandising
Logistics
Headquarters
Stores
DELLMART & COMPANY 48
ResponsibilitiesResponsibilitiesMerchandising – Supplier to shelfDistribution – Purchase Order to storeStore – Receiving to customerAccounting – All transactions
DELLMART & COMPANY 49
Associate Associate CommunicationsCommunicationsTraining & Educations (how)Directions (what & when)Technology interface
– Protocol– Methodology
DELLMART & COMPANY 50
Control ComponentsControl Components
StandardOperatingProcedure
Budget
JobDescription
Goals
DELLMART & COMPANY 51
Job DescriptionJob DescriptionWrittenComponents
– Minimum requirements– Reporting relationships– Specific responsibilities– Corporate responsibilities
Updated annually
DELLMART & COMPANY 52
Operating ProceduresOperating ProceduresCorporateStore OperationsWarehouse OperationsTransportation OperationsMerchandisingAccounting
DELLMART & COMPANY 53
Methods - CheckoutMethods - CheckoutShift start – Sign & check cash drawerCustomer – Log into register
– Greet customer– Scan all items– Process payment– Bag items
Break – Lock registerShift end – Cash drawer to office &
balance
DELLMART & COMPANY 54
Method - ReceivingMethod - ReceivingWalk from office to receiving areaOpen door and set dock plateCount
– Cases per layer– Layers per pallet– Record count
Walk to office and log in delivery
DELLMART & COMPANY 55
Budget ManagementBudget ManagementSubmit a realistic budgetCategory
– Controllable– Non-controllable / allocations
Authorization– Approval levels (amount)– Positive approvals
DELLMART & COMPANY 56
Management GoalsManagement GoalsSet annually
– Review semi-annual
Driven from company strategyAbove & beyond normal jobInclude some reach goals
DELLMART & COMPANY 58
Management is the Role Management is the Role ModelModel
Walk the walk Talk the Talk
DELLMART & COMPANY 60
ReinforcementReinforcement
PositiveRecommendedLong term
NegativeUse sparinglyShort term
DELLMART & COMPANY 61
Lessons for LeadersLessons for LeadersTiming is (almost) everythingAnything is possible if you share the
gloryTrust, once broken, is seldom restoredLeadership is about building
connectionsLeaders learn from their mistakes
DELLMART & COMPANY 62
Lessons for Leaders Lessons for Leaders (Cont.)(Cont.)Confidence – not just in oneself countsEffective partnership requires devotion
to one’s partnersRenewal comes from many sourcesLeaders must be talent brokers