F. Curtis Barry & Company » reduce costs http://www.fcbco-blog.com Warehouse, Systems and Inventory Consultants Thu, 24 Jun 2010 18:29:42 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 From the Dark Side of Productivity http://www.fcbco-blog.com/from-the-dark-side-of-productivity/ http://www.fcbco-blog.com/from-the-dark-side-of-productivity/#comments Mon, 02 Mar 2009 10:05:39 +0000 Bob Betke http://www.fcbco-blog.com/?p=444 I’m with a firm that spends much of its time helping clients improve productivity and reduce costs. We are ever mindful of the negative side—the “dark side”—of productivity projects. What is the dark side? It’s what happens if we don’t take the human factor into account. As someone with 30 years of experience in industrial engineering, I can tell you that there is no way to achieve long-term success in a re-engineering project without considering the effect it will have on people.

Two articles in the Wall Street Journal serve as stark reminders of this reality. The first, “Retailers Reprogram Workers in Efficiency Push” (September 10, 2008) described installations of workforce management software at AnnTaylor Stores Corp. and other retailers. According to the article, workforce management systems are “sweeping the industry as retailers fight to improve productivity and cut payroll costs.” As the Journal noted, some workers aren’t happy about the trend, saying the systems leave them with shorter shifts, make it difficult to schedule their lives, and “unleash Darwinian forces on the sales floor that damage morale.”

The Ann Taylor system keeps track of the usual productivity metrics: average sales per hour, units sold, and dollars per transaction. The system schedules the most productive people during the busiest hours—and, because it awards more-productive salespeople with favorable hours, it gives employees an incentive to persuade shoppers to buy things. And it’s worked, as far as the overall economic goals are concerned; the chain’s director of store operations said it has helped turn more store browsers into buyers. But, as the WSJ story made clear, it also resulted in the loss of some veteran salespeople who had developed long-term relationships with customers. By focusing strictly on the metrics that could be easily measured, the system actually penalized associates whose selling style depended on longer interactions with the customer—even though such relationships often assured continued customer loyalty. Others found their hours cut back to the point where they could no longer afford to make the trip to work. During busy times, the formerly congenial staff began competing for customers, sometimes stealing them away from one another. While productivity was, indeed, increased, perhaps the most surprising unintended result of the system was that this story, with all its unflattering aspects, was splashed across Page A1 of The Wall Street Journal.

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]]> http://www.fcbco-blog.com/from-the-dark-side-of-productivity/feed/ 0 Top Ways to Cut Costs and Improve Customer Satisfaction http://www.fcbco-blog.com/top-ways-to-cut-costs-and-improve-customer-satisfaction/ http://www.fcbco-blog.com/top-ways-to-cut-costs-and-improve-customer-satisfaction/#comments Mon, 02 Mar 2009 09:00:23 +0000 Curt Barry http://www.fcbco-blog.com/?p=436 Every smart business manager is constantly looking for ways to reduce costs and make the operation more productive. In today’s challenging economic climate, such efforts become even more crucial. Small steps that can help to save money may make a big difference. Our experience in the fulfillment and call center has been that often the same process improvements used to reduce costs also result in better service—and greater customer satisfaction. These are some of our top tips in four of the key areas.

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