Behind every great store... there's a manager

Store managers are highlighted as the key to ECR implementation – and the driving force of great performance – in a new study by the Coca-Cola Retailing Research Council of North America.

After involving 115 stores and 10,000 employees, followed by 160 store and department interviews, 4,432 customer surveys and 1,750 staff surveys, the report was able to identify differing management practices which affected performance. The key finding was that some stores create greater value because store management energises the staff, said Dr Bill Bishop (Willard Bishop).

Great management style creates exceptional loyalty and gets the most out of market potential. He spelt out four conditions associated with great performance:

• clarity and commitment to goals
• focus on key drivers
• simple mechanisms to propel achievement
• cadence of accountability.

What makes a great performer? Dr Bishop said their sales exceeded the market potential by 38 per cent compared with 17 per cent for average performers. Under-performers were 22 per cent below average. Great performers produced 23 per cent above average customer loyalty. He went on: “It all starts with employee engagement, where more enthusiasm and more commitment lead to better performance.” For manufacturers, the implication of great management was that there was an opportunity to tailor assortment and service to local demand.

Ray Stewart (Hy-Vee) told how one person’s management style had transformed a $400,000 profit into a $2m profit in a year. Another had changed a $1m a year loss into break even.

The winning management behaviour in a high loyalty store was based on:

• productive communication
• authentic listening
• shared success and
• recognised contributions.

“It is not just a job,” he said. “Everything is for the customer. Anybody walking in the store is greeted. They are helped to find something. The cashier calls them by name and asks them to come back. The store director visits regularly.

“If you are not totally satisfied with the end results of your company, personally go into the store on Friday afternoon and evening, on Saturday afternoon and evening and on Sunday night. I guarantee you will find exactly what is wrong and why you are not getting results. Don’t get upset or get mad at what you see. Ask, how do we get from looking this way? How do we change not being engaged with customers?”

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