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Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
Page 1
Magic Sticks, Inc.
Analysis Summary Report
Introduction
Global Performance Solutions (GPS) is a consulting agency specializing in the analysis
and enhancements of organizational performance systems. GPS was selected by Magic
Sticks, Inc. to make recommendations to ensure the successful launch of a new product,
gelato. This report documents the systematic review of implementing a new product into
the current Magic Sticks’ offerings of breadsticks and beverages.
Background Information on Organization
Magic Sticks is a blended specialty retailer and wholesaler of baked goods
which has been in business since 1970. It was the vision of the founding family
who opened the first store with only one breadstick and three toppings. They
focused on creating the best breadstick in the business. Today the company's
principal business is owning and franchising Magic Sticks stores where over 10
varieties of baked goods, including its lead product—varieties of breadsticks, are
made, sold and distributed. They also provide a variety of beverages.
They are a vertically integrated company, structured to support and profit
from the high volume production and sale of breadsticks. Each of its
stores/franchises (60% of which are company owned) is a breadstick creation
center with the capacity to produce from 2,000 to over 6,000 breadsticks daily.
Consequently, production and sales volumes significantly impact each store’s
profit margins. The company's operations are divided into three business
segments: Magic Sticks company stores, Magic Sticks franchises and Magic
Sticks supply chain.
At this time, Magic Sticks is planning to continue their growth—not with the
addition of new stores, but through a new line of products: Italian Ice Cream,
Gelato. The context of this analysis is to ensure that Magic Sticks stores are
positioned for success by ensuring strong store performance related to the roll-
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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out of this new product line. Implementation will be multi-dimensional in nature
as it is dependent upon organizational, process and job performance.
Scope of the report
This report navigates the reader from the starting point of the project to the final
conclusions. Beginning with the methodology, strategies utilized to collect data, analyze
performance and select interventions are clearly defined. The performance analysis
findings are explained and lead to an understanding of the prioritized selection of
recommended interventions. An evaluation plan including performance indicators is
included to identify and measure the success of the new product rollout. And, a timeline
including cost estimations is provided.
Area(s) Examined throughout the Analysis
Throughout this analysis, many areas were examined to provide data for a
comprehensive study. Magic Sticks’ vision statement, mission, goals, culture,
values and strategies were reviewed. The situation around the opportunity
statement was then examined and data was collected on the work environment,
target audience, sponsor, performance improvement goal and measure of
success.
From this point an in-depth analysis was conducted on the environment of
Magic Sticks. The organizational environment was studied for determination of
who the customers are, what suppliers have a formal relationship with the
organization, what government and/or industry regulators is the organization
accountable to, and lastly who are the stockholders, competitors and internal
influencers of the organization. To determine what was happening inside the
organization, the environmental study was carried on to the work environment,
the work and the worker.
Examination of the work environment provided data on general resources,
time allotments, equipment, technology, work space, information, and, policies
and procedures. The type of work was reviewed next providing data on job
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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design, work flow, job responsibilities and ergonomic design. Lastly, the workers
were studied for the following attributes: knowledge and skills, motivation,
expectations, capacity and ability.
Indicators of Performance Opportunity
Domestically the US Frozen dessert market generates about 10 billion
dollars annually and the international/global is about 45 billion dollars. This
performance represents about 3.5 % growth over the last year and indicators
demonstrate that it is still growing. The year 2013 is projected globally to
generate 54 billion dollars in performance – a 20% increase. Magic Sticks has
communicated that they believe there is opportunity to tap into this growth
through introduction of a gelato product at each of its stores and that they are
positioned well to gain both domestic and international market share.
Consumer demand for Magic Sticks’ product has been so strong that over
the past three years, the organization has expanded to more than 300 stores
across 46 states and 3 countries. As a result, Magic Sticks has increased overall
revenue and maintained target profit margins.
Standards
Magic Sticks, Inc. food operations are subject to regulatory compliance
through state, federal and international food and beverage standards program
certification. This includes, but is not limited to, food handling, labor, safety and
financials.
Business Forces/Competition
Magic Sticks has positioned its image as a specialty “boutique” eatery.
Common specialty operations include coffee shops (such as Starbucks, Tully's,
Peet's, and Bad Ass Coffee), doughnut stores (Dunkin' Brands' Dunkin Donuts,
Krispy Kreme, and Tim Hortons), smoothie stores (Jamba Juice, Smoothie King),
ice cream shops (Dairy Queen, Cold Stone Creamery), and bagel stores
(Einstein Noah Restaurant Group's Einstein Bros., Bruegger's). Other operations
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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include various bakery stores, like Auntie Anne's, Mrs. Fields', and Cinnabon.
These eateries do their best to position themselves in locations where they can
capitalize on impulsive customers: malls, university campuses, stadiums, big-box
retail units, and as many street corners as they can occupy. Magic Sticks has
potential to experience competition from any of these specialty operations.
Stakeholders
Internal stakeholders are the Magic Sticks executive team. They have a
vested interest in assuring the introduction and installation of the new product,
gelato, occurs smoothly and without negative impact to current operations. The
critical internal stakeholders are the associates of Magic Sticks. The employees
and managers must have buy-in and confidence in the new gelato product to
embrace its use. No external stakeholders have been identified in this analysis.
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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Performance Analysis Report
Organizational Analysis
The vision and mission of Magic Sticks is aligned with its core business
function of producing and selling exceptional breadsticks; however, the vision
and mission statements do not align with the proposed introduction of the gelato
product to its business operations. The vision and mission statements were
created by the Magic Sticks executive team and there is understanding and
agreement between all stakeholders. Evidence of this is represented in new
employee orientation and personal interviews conducted with store managers
and employees. The addition of gelato does make sense in terms of its internal
strengths and weaknesses, in addition to external threats and opportunities.
Magic Sticks does have strategic and operational goals that are aligned
with its current vision and mission. However, new goals have been introduced in
support of the new product, gelato, that are not aligned with current vision and
mission. Derived from Magic Sticks executive interviews, the organization has
clearly defined goals of getting operations in place to support the delivery of the
new gelato product, training associates on the proper handling of gelato and how
it is superior to traditional ice cream, and hitting profit targets. Operational goals
include getting the stores set up with the new equipment (display cases/storage
freezers), updating the POS systems, training the maintenance team to support
the new equipment, and ensuring that the managers understand how to maintain
equipment. These goals would align with a modified vision and mission
statement. Introducing new organizational goals to accommodate the new gelato
product does not make sense in terms of Magic Sticks current internal strengths
and weaknesses. The organization traditionally produces and delivers baked
products and employees do not have experience or training with regards to the
storage, ordering nor delivery of a frozen product.
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The goals do, however, make sense in terms of external threats and
opportunities in a growing frozen dessert market. Magic Sticks’ strategy is to tap
into this expanding market by offering gelato in addition to its current products
with hopes of expanding average ticket sales. The organization's new goals will
need to be communicated to all stakeholders. Currently, there is some
information circulating by word of mouth from regional managers. The
stakeholders will need to know, understand, and agree with the organization's
goals. Initial interviews with executives and online survey of store employees
indicate acceptance of this new product. Below is data collected from an online
employee survey:
The personality of Magic Sticks is a friendly, customer-focused
organization. Information obtained from executive and employee interviews
suggest that the stores are built on delivering a quality product, along with
providing exceptional customer service. Additionally, as indicated in Magic Sticks
people statement, employees are believed to be the best asset the organization
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has. From employee interviews, it does appear people are being treated well.
From a tradition standpoint, Magic Sticks has retained the same cultural
approach of product delivery and customer service since the opening of its first
store. Below is data collected from an online employee survey regarding the
employee’s relationship with their manager:
However, store drill down of employee satisfaction show a few stores
where there may be a disconnect between employees and management. This
should not be of significant concern to Magic Sticks. Generally, interaction
between employees is friendly and supportive. Below is data collected from an
online survey employee survey:
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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Overall the culture of the organization is supportive of its vision, mission and
goals.
The organization’s values are aligned with its vision and mission. Perhaps
some modification to addressing a quality product should be embraced by Magic
Sticks versus its sole focus on just breadsticks. Through interviews, it’s been
determined that a quality product and an exceptional customer service are
important to the organization. The organization’s values are communicated to,
understood, and accepted by all stakeholders.
The strategies for Magic Sticks current business model are sound and
effective; as evidenced by successful business growth. However, strategies for
attaining the new business goals of getting operations in place to support the
delivery of the new gelato product, training associates on the proper handling of
gelato and how it is superior to traditional ice cream, and hitting profit targets
have not been defined. The organization is looking to Global Performance
Solutions for guidance in the development of these strategies. Therefore, no
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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communication regarding new product rollout has been formally distributed to
stakeholders.
Data sources for this phase of analysis include:
Magic Sticks Website:
http://www.optionsix.com/ispi/content/popups/magic_sticks_site.htm
Introductory letter from Michael Hamm, Executive Director of Human
Resources
Business Intelligence Resources – Magic Sticks
Magic Sticks Employee Interviews conducted live
Magic Sticks Employee Interviews obtained from Email
Magic Sticks Employee Interviews obtained from an online survey tool
Environmental Analysis
Within the context of this analysis, the organizational environment, work
environment, work and workers were examined.
Organizational Environment
The first line customers for Magic Sticks products are those that visit the
unit stores. There is no one demographic that separates one customer from
another. The stores have established themselves as specialty boutiques that
cater to returning customers. In fact, returning customers has contributed to
organizational growth. Secondary customers are the Magic Sticks stores. Each
store purchases needed equipment and inventory from the corporate Magic
Sticks supply chain. The suppliers to Magic Sticks stores is corporate Magic
Sticks supply chain. Productivity of supply chain appears to have been
satisfactory. Wholesalers have been regionally identified to provide the gelato
product. There is good alignment between corporate operations, supply chain
and corporate and franchise stores.
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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Work Environment
An analysis was conducted to determine what is happening inside the
organization to support optimal performance. To gather data, interviews were
conducted with Magic Sticks executives, store managers and store employees
within the organization that were deemed to have influence on the organization’s
operations.
Magic Sticks unit stores are specialty eateries. Each unit is currently
designed to deliver an existing product menu. There are currently three different
sizes of Magic Sticks store units. The smallest units are located in airports.
These small units bring in the breadsticks and products daily from other stores.
Medium size units are located in strip malls with seating, counter and space in
the back. The largest stores have seating, including larger more spacious
layouts and drive thru.
Interviews were conducted with executives and store managers to
evaluate current performance and workflow at the store levels. It appears there is
initial training support for managers and employees. Managers are directed to
the corporate office and employees to training stores. Good mentoring support
for new managers and new employees exists too; however, there appears to be
a lack of a structured training process when at the store level. Initial interviews do
disclose alignment between job descriptions and performance evaluation, but it’s
unclear if there is a structured process to handle performance issues. Rewarding
of good performance is primarily directed at the store level.
General resources have been identified and are readily available to
support existing operations. Job descriptions, policy and procedures, job aids,
training materials, a training portal, and a learning management system exist; but
will require modification to accommodate the introduction of the new gelato
product. Workflow is currently refined and effective to Magic Sticks’ current
operations model; however, it’s anticipated that additional time will be required
for delivery of the new gelato product. Financial tools are available for outcome
measure, but will require modification.
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Equipment is readily available to support introduction of the new product.
Magic Sticks corporate has arranged the manufacturing of custom display cases
and storage freezers to fit within existing store layout and design. They will
handle all maintenance and support for the equipment through their existing
equipment maintenance team. In addition to a display case/freezer unit, each
store (corporate and franchise) in the roll out will have a set of pans and serving
equipment to get them started. Technology in the form of Point of Sale systems,
manager computers, and an online ordering system currently exist, but will
require updates.
Work space has been studied. Executive interviews disclose that work
space is being modified to accommodate specially designed display cases for the
new gelato product. There is some concern for the smaller airport outlets. A
smaller display case with a prepackaged product is being considered. The
proposed store layout for the gelato product appears to support optimal
performance.
For work environment analysis, although there is good presence of
training support, performance communication, general resources, equipment and
work space, it is not aligned with the introduction of the new product gelato.
Work Analysis
Work analysis was discovered through executive and employee
interviews. Under the current operation model, work performance appears to be
optimized. The introduction of the gelato product will impact current workflow.
Additionally, current operational responsibilities are communicated through
respective job descriptions.
Jobs are designed for optimal performance. With the current operational
model, employees have been cross-trained to assume multiple roles within the
store; thereby contributing to higher store productivity. The introduction of gelato
will require modification of job design to incorporate the maintenance and
delivery of this new product. Current allocation of job responsibilities supports
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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store goals. Job descriptions and training processes will need to be modified in
support of the new gelato product.
For work analysis, there is good alignment for communication of
expectations for attaining goals and completing job responsibilities. However, the
current job expectations are not aligned with supporting the new gelato product.
Worker Analysis
The worker population for Magic Sticks is diverse. Employees range from
entry level positions to executive positions within the organization. The abilities of
the store associates will have a critical impact on the success of the rollout. A
focused analysis on this population of workers was conducted.
Under the current operations model, workers do possess the knowledge
and skills required to do their job. Additional education and training will need to
occur with the introduction of the gelato product. The motivation to perform does
exist, but the reasons vary. Some workers are intrinsically motivated to perform
while others are motivated by their manager, incentive systems or the resulting
consequence of not performing to expectation. Also, workers have the capacity
to be successful. It’s unknown if a modification to store layout and workflow will
impact the worker’s capacity. Workers are oriented and trained to work in the
store environment. Additional orientation and training will need to be provided in
support of the new gelato product. There should be no ability barriers to workers
effectively delivering this product.
Inadequate training and/or prior experience with handling and delivering
the new gelato product represents misalignment with proposed future store
operations.
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Data sources for this phase of analysis include:
Magic Sticks Website:
http://www.optionsix.com/ispi/content/popups/magic_sticks_site.htm
Introductory letter from Michael Hamm, Executive Director of Human
Resources
Business Intelligence Resources – Magic Sticks
Magic Sticks Job Aids
Magic Sticks Training Materials
Magic Sticks Training Portal and LMS
Magic Sticks Financial Statements
Magic Sticks Score Cards
Gap Analysis
Gaps were identified using Rothwell’s Six-Cell Model. Gaps are classified
as either positive, neutral or negative (both in present and future tense)
depending on the nature of the gap. Gaps were then ranked to determine how
critical each gap is to the attainment of the organization's strategic goals.
Ranking was accomplished on the on the Criticality Scale for the Gap Priority
Matrix.
The performance gap analysis conducted for Magic Sticks on the
proposed introduction and installation of the new gelato product produced the
following results:
1. Rollout Strategy - Desired performance is that Magic Sticks has a rollout
strategy for the new gelato product which increases average ticket sales,
but does not negatively impact present store operations. Actual
performance is that Magic Sticks does not have a rollout strategy for the
new gelato product.
2. Freezers and Display Cases - Desired performance is that the stores are
set up with the new equipment (display cases/storage freezers) to support
new store operations. Actual performance is that the stores are not set up
with the new equipment (display cases/storage freezers).
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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3. Point of Sale Systems (POS) - Desired performance is that the points of
sale (POS) systems are configured for gelato sales. Actual performance is
that the points of sale (POS) systems are not configured for gelato sales.
4. Maintenance Team Training - Desired performance is that the
maintenance team is trained to support the new gelato equipment. Actual
performance is that the maintenance team is not trained to support the
new equipment.
5. Manager Training - Desired performance is that the managers do
understand how to maintain the new equipment. Actual performance is
that the managers do not understand how to maintain the new equipment.
6. Associate Training - Desired performance is that the employees are
trained to support and deliver a gelato product. Actual performance is that
the employees are not trained to support and deliver a gelato product.
7. Average Ticket Sales - Desired performance is that the average ticket
sales will increase with introduction of new gelato product. Actual
performance is that average ticket sales are aligned with current product
delivery.
8. Vision Statement - Desired performance is that Magic Sticks’ vision
statement does accommodate the introduction of new products other than
breadsticks. Actual performance is that Magic Sticks’ vision statement
does not accommodate the introduction of new products other than
breadsticks.
9. Mission Statement - Desired performance is that Magic Sticks’ mission
statement does accommodate the introduction of new products other than
breadsticks. Actual performance is that Magic Sticks’ mission statement
does not accommodate the introduction of new products other than
breadsticks.
10. Feasibility Study - Desired performance is that Magic Sticks has
conducted a thorough product feasibility study with a firm that specializes
in new product analysis. Actual performance is that Magic Sticks has
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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internally conducted market research on the feasibility of a gelato product
on the market.
11. Test Market – Desired performance is that Magic Sticks has established a
test market reflective of independent research recommendations. Actual
performance is that Magic Sticks has not established a test market for
gelato based on independent product research.
12. Cash Flow - Desired performance is that Magic Sticks has adequate cash
flow for operations and capital investment. Actual performance is that
Magic Sticks has negative cash flow for operations and capital investment.
Performance gaps deemed of the highest critical nature are those with a
score of 9 or 10 on the Criticality Scale: Rollout Strategy, Freezers and Display
Cases, Point of Sale Systems, Maintenance Team Training, Manager Training,
Associate Training and Average Ticket Sales. (Note: If GPS was consulted from
the inception of the gelato product idea, a higher criticality rating would have
been given to Feasibility Study, Test Market and Cash Flow; however, since
Magic Sticks has already committed to the product and didn’t necessarily solicit
this type of input from GPS, the information has been provided in consideration
of providing a thorough analysis for the introduction of a new product). The
presence of these performance gaps represents misalignment with desired
performance results of having a successful gelato product rollout.
Cause Analysis
The methods used to determine why performance gaps exist was derived
from Gilbert's Behavioral Engineering Model, and Gilbert's PROBE model.
Performance issues have been identified for each identified gap. The top
performance issues have been identified. Causes and drivers for each
performance issue have been provided for further analysis and ranked according
to priority.
1. Magic Sticks does not have a rollout strategy for the new gelato product
(lack of a rollout strategy introduces liability that the rollout will not be
successful) - The causes and drivers are (#1) Data – There is insufficient,
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accessible data and clear directions for managers and employees to
perform well, (#2) Data – There are no clear and measurable performance
standards to let managers and employees know how they’re supposed to
perform, (#3) Resources – Inadequate assistance exists to do the job well,
(#4) Incentives – There are a lack of extrinsic reward factors, (#5)
Knowledge and Training – Employees do not have the technical concepts
to perform well, and (#6) Knowledge and Training – Employees do not
have good job aids available.
2. Magic Sticks stores are not set up with the new equipment (display
cases/storage freezers) (absence of new equipment to support the gelato
product will create a barrier to storage and delivery) - The causes and
drivers are (#1) Data – There is insufficient, accessible data and clear
directions for the maintenance team to perform well, (#2) Tools – The
necessary implements are not on hand for doing the job, (#3) Resources –
Adequate materials, supplies and assistance are not available to do the
job well, (#4) Knowledge and Training – The maintenance team or
installers do not have the technical concepts to perform well, (#5)
Knowledge and Training – The maintenance team or installers do not
have sufficient specialized skills, and (#6) Knowledge and Training – The
maintenance team or installers do not have job aids available.
3. The points of sale (POS) systems are not configured for gelato sales
(POS systems not configured for gelato sales will not allow for the capture
and tracking of sales information) - The causes and drivers are (#1) Data
– There is insufficient, accessible data and clear directions for the (IS)
team to perform well, (#2) Tools – The necessary implements are not on
hand for doing the job, (#3) Resources – Adequate materials, supplies and
assistance are not available to do the job well, (#4) Knowledge and
Training – The (IS) team does not have the technical concepts to perform
well, (#5) Knowledge and Training – The (IS) team does not have job aids
available.
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4. The maintenance team is not trained to support the new gelato equipment
(lack of training for the maintenance team to support new gelato
equipment will create extended downtimes for equipment failures and
possible delay in new installations) - The causes and drivers are (#1) Data
– There is insufficient, accessible data and clear directions for the
maintenance team to perform well, (#2) Data – Data and directions for the
maintenance team is not accurate, (#3) Tools – The necessary
implements are not on hand to train for doing the job, (#4) Resources –
Adequate training materials, supplies and assistance are not available to
do the job well, (#5) Knowledge and Training – The trainers do not have
the technical concepts to perform well, (#6) Knowledge and Training – The
trainers do not have sufficient specialized skills, and (#7) Knowledge and
Training – The trainers do not have job aids available.
5. The managers do not understand how to maintain the new equipment
(lack of knowledge in maintaining the new gelato equipment will potentially
cause equipment failure or decreased performance) - The causes and
drivers are (#1) Data – There is insufficient, accessible data and clear
directions for the managers to perform well, (#2) Data – Data and
directions for the managers are not accurate, (#3) Tools – The necessary
implements are not on hand to train for doing the job, (#4) Resources –
Adequate training materials, supplies and assistance are not available to
do the job well, (#5) Knowledge and Training – The trainers do not have
the technical concepts to perform well, (#6) Knowledge and Training – The
trainers do not have sufficient specialized skills, and (#7) Knowledge and
Training – The trainers do not have job aids available.
6. The employees are not trained to support and deliver a gelato product
(lack of knowledge and skill in promoting and handling the gelato product
will potentially result in increased waste and decreased customer sales) -
The causes and drivers are (#1) Data – There is insufficient, accessible
data and clear directions for the managers to perform well, (#2) Data –
Data and directions for the managers are not accurate, (#3) Tools – The
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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necessary implements are not on hand to train for doing the job, (#4)
Resources – Adequate training materials, supplies and assistance are not
available to do the job well, (#5) Knowledge and Training – The trainers do
not have the technical concepts to perform well, (#6) Knowledge and
Training – The trainers do not have sufficient specialized skills, and (#7)
Knowledge and Training – The trainers do not have job aids available.
All identified performance issues and associated causes and drivers are aligned
with identified performance gaps.
Summary and Next Steps
Analysis Summary
Results of the organizational analysis demonstrate that there is
misalignment. Though there is understanding and agreement between all
stakeholders with regards to the vision statement and mission, there is
misalignment of vision and mission with regards to the introduction of the new
gelato product. The proposed organizational goals are not appropriately aligned
with the mission and vision; and the new goals will need to be communicated to
all stakeholders. All stakeholders can communicate understanding of current
goals and are in agreement with the goals. Overall the culture of the organization
is supportive of its vision, mission and goals. The core values have good
alignment with the current vision and mission, they will align with a modified
vision and mission statement, and are evident in organizational policy and
procedures and organizational processes. Lastly, the strategies for Magic Sticks
current business model are sound and effective; as evidenced by successful
business growth. However, strategies for attaining new business goals of getting
operations in place to support the delivery of the new gelato product, training
associates on the proper handling of gelato and how it is superior to traditional
ice cream, and hitting profit targets have not been defined and are consequently
not in alignment.
Results of the environmental analysis demonstrate that there is good
alignment between corporate operations, supply chain and corporate and
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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franchise stores in the organizational environment. This will not represent a
barrier of constraint to effectively rolling out the gelato product. At the work
environment level, there is opportunity to establish more defined training
procedures at stores other than defined training stores. General resources of job
descriptions, policy and procedures, job aids, training materials, a training portal,
and a learning management system will require modification to accommodate the
introduction of the new gelato product. Workflow is anticipated to require
additional time for delivery of the new product. Technology in the form of Point of
Sale systems, manager computers, and online ordering systems will require
software updates. For work analysis, job descriptions and training processes will
need to be modified in support of the new gelato product. There is misalignment
for the job to be able to accommodate the new gelato product. Lastly, for review
of worker analysis, inadequate training and/or prior experience with handling and
delivering the new gelato product represents misalignment with proposed future
store operations.
Results of the gap analysis demonstrate that the performance gaps
deemed of the highest critical nature are those with a score of 9 or 10 on the
Criticality Scale: Rollout Strategy, Freezers and Display Cases, Point of Sale
Systems, Maintenance Team Training, Manager Training, Associate Training and
Average Ticket Sales. The presence of these performance gaps represents
misalignment with desired performance results of having a successful gelato
product rollout.
Lastly, results of the cause analysis demonstrate that all identified
performance issues and associated causes and drivers are aligned with identified
performance gaps from the gap analysis.
Aligning Gap and Cause Analyses with Future Intervention Selection
The performance issues highest priority causes and their impact on the
performance issue were examined and aligned with future interventions.
1. Magic Sticks does not have a rollout strategy for the new product gelato.
Marketing Strategy
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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Badges
► Let employee’s sample gelato and pick favorite flavor.
► Create badges that look like gelato in a cup and have a
flavor on it – this way the employee can wear the badge and
the customer may ask why they are wearing it. The
employee can say this is my favorite flavor. –The customer
then may try gelato and like it.
► Badges – can do for flavor of the month or new flavor also.
Storefront Decals
► Prepare advertisement for product
► Include stores favorite flavor on advertisement
► Enticement to come try a sample or take home a container.
Store T-Shirts
► Create T-shirt about new product. Wear on certain days for
1 month ahead of rollout time. For example, “Breadsticks
has a new family member coming… more details!”
► New T-shirt with product and main flavors offered in
store/region – on back of shirt- Want to try some???? Have
certain days for workers to wear them
T-Shirt Giveaway
► All customers that sample/purchase gelato on the
predetermined day receive a t-shirt.
► If they wear the t-shirt when they come in, they get a free
serving. One per customer for the first month of rollout.
► Distribute t-shirts at community gatherings – children
sporting events, cook outs, etc
Banners/Community Events
► Post banners about new product coming to town – 1 month
before hand.
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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► Have booth or gelato and breadsticks available at gathering.
Flyers/Posters
► at malls
► schools
► sporting events
2. Magic Sticks stores are not set up with the new equipment (display
cases/storage freezers).
3. The points of sale (POS) systems are not configured for gelato sales.
4. The maintenance team is not trained to support the new gelato equipment.
5. The managers do not understand how to maintain the new equipment.
6. The employees are not trained to support and deliver a gelato product.
Training - Various methods can be used to train store managers
and employees. GPS recommends a blended approach, including
utilizing the training store, performing in store and on-the-job
training, and e-learning delivered via the LMS.
Method 1 - Simulation
We recommend that Magic Sticks simulate a realistic store
environment by using real gelato, and use an operational POS
system configured for the new product. This would require either
after hours or off site training, to minimize the impact on regular
store operations. If possible, the employees should be given a
comparison of the gelato along side ice cream and other frozen
desserts (as available, and as deemed appropriate representations
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of competing products). The training simulation should include the
following critical learning components:
► Information and experience with new product, preferably in
comparison to a competing product (for example, ice cream
from Baskin Robbins)
► Experience with handling the new product, equipment, POS
systems.
► Simulated tasks must include:
o Greeting customer and taking order (single item,
combo, other items per menu)
o Responding to basic questions about product
o Packaging (in all sizes and configurations)
o Ringing up various sales on POS
o Using a coupon
o Disposing of, and refunding for, an incorrect order
o Inspecting and maintenance of equipment (moving
items in/out of freezer, arranging display, checking
temperature of freezer, operating lid, etc.)
o Inspecting product for quality and consistence (for
example, looking for signs of melting or freezer burn)
o Assessing need to order more inventory (managers)
o Placing an order on the inventory system (managers)
o Run a sales report from POS and analyze
results(managers)
Method 2 – eLearning
The current LMS (Learning Management System) can be utilized
for supporting elearning. Although the preferred training method is
by simulating as realistic a work environment as possible, the
benefits of online learning cannot be overlooked. We recommend
using the LMS as a backup method, with classes available on basic
information. For example, Magic Sticks may want to consider
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developing an informational elearning on gelatos benefits, history
and manufacturing. Maintanance tasks can be filmed and uploaded
to the LMS as an instructional video.
Due to the tight schedule and limited information available, GPS
does not consider elearning to be a critical component for the initial
rollout. We would highly recommend it for supporting training and
instilling basic knowledge into new employees. It will require a
dedicated team of subject matter experts, as well as experienced
instructional designers.
Justifying the Business Need for Analysis
Inability of Magic Sticks to rollout the new product gelato both effectively
and efficiently creates a liability that could result in a financial loss and/or
damage to its brand name and reputation. A financial loss could occur from ill
prepared management of the rollout process and product that could result in the
gelato product negatively affecting current financial performance of the stores.
Additionally, this loss could dramatically affect the Magic Sticks’ image in the
community and consequently result in a decrease of market share it currently
experiences.
To truly take advantage of the performance opportunity pursued by Magic
Sticks, a systematic performance opportunity analysis must be implemented.
Taking a systems view is vital, because organizations are very complex systems
that affect the performance of the individuals that work within them. It is important
to distinguish a systems approach from a process model. A process contains
inputs and outputs and has feedback loops. A system implies an interconnected
complex of functionally related components. The effectiveness of each unit
depends on how it fits into the whole, and the effectiveness of the whole depends
on the way each unit functions. A systems approach considers the larger
environment that affects processes and other work. The environment includes
Analysis Summary Report – Magic Sticks, Inc. Global Performance Solutions
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inputs, but, more importantly, it includes pressures, expectations, constraints,
and consequences - ISPI Performance Standard 2.
Using a systematic analysis approach by GPS to identify key data, the
organization and GPS can then determine:
1. If and how the work, workplace, or industry environment supports or
impedes the desired organizational and group performance.
2. If and how the current culture supports or impedes the professed
performance.
3. If and where there is a lack of alignment between or among key factors
affecting the success of the solutions.
4. If and how the barriers and leverage points support or impede the
proposed solutions and the desired organizational and group
performance.
5. How the proposed solutions will affect the greater environment of the
organization as a whole.
6. Whether and how the results of GPS and how GPS plans on going about
producing those results might jeopardize the client, the organization, or
society’s well-being.
7. How to ensure that the methods of deploying and the results of the project
will have a positive impact on the client, the larger environment, and
society.
Value Added Benefits of the Analysis Process for this Organization
GPS is providing a process that will help Magic Sticks fully understand the
implications of its choices, set appropriate measures, identify barriers and
tradeoffs, and take control. Using a systematic analysis approach by GPS to
identify key data, the organization and GPS can then determine the value added
benefits of the analysis process by:
1. Establishing at the start what will be used as evidence of success,
accomplishment, or worth and communicate that to all vested parties
(stakeholders). For this analysis, the measure of success will be
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measured by Magic Sticks stores effectively and efficiently rolling out the
new gelato product and simultaneously experience an increase in store
revenues.
2. Determining that a mechanism exists to determine whether the gain was
realized and to track early indicators of success so corrections are made.
Store daily sales versus average ticket sales should be used as
measurement standard.
3. Determining if the assumptive base and the argument for or against a
course of action is documented and communicated. GPS could maintain
these reports.
4. Stating what tradeoffs were made and what value was gained, and
conclude that the value outweighed the cost.
5. Mutually agreeing that the product of the assignment or the goal of the
task is sound and beneficial to the organization. The end result will be that
Magic Sticks rollout of the new gelato product will not create a liability that
could result in a financial loss and/or damage to its brand name and
reputation.
