Best Buy Retail Stores

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Best Buy Retail Stores Powered By Docstoc
					 Linking 360° Feedback to
Business Outcome Measures

        Anna Erickson
         Tony Allen
  Nation’s #1 Specialty Retailer
of Technology and Entertainment
     Products and Services
           Best Buy Performance
                            ($ in billions)

 $30

 $25
                                                            19.6
 $20
                                                     15.3
 $15
                                              12.5
                                     10.1
 $10                          8.3
                7.2   7.8
          5.1
     $5

     $0
FY        '95   '96   '97     '98     '99     '00    '01    '02

                                Revenue
               Best Buy Retail
• Structure
  – 584 Stores
  – 56 Districts
  – 3 Regions
• Leaders “Score Carded” on Key Financial
  and Operational Measures Including:
  –   Revenue & Gross Margin
  –   Sales of Key Products
  –   Customer Loyalty
  –   Employee Engagement/Satisfaction
             Our Research
• 360° Feedback Results (June 2002)
  – 38 District Managers (DMs)
  – 573 Store/General Managers (GMs)
• 4 Key Financial Measures (July 2002)
  – Revenue
  – Gross Margin
  – Accessory Sales
  – Sales of Product Service Plans
     Best Buy 360 Highlights
• Administered Annually
• Retail and Corporate Leadership
  – Corporate Director level and above
  – Retail Store Manager (GM) and above
• Purely Developmental
• Competency Based
• Raters = Self, Superior, Subordinates
  and Peers
       Best Buy
Corporate Competencies
                District Manager Correlations
                (n = 38)
                                                 Gross        Accessory Service
                           Revenue               Margin         Sales Plan Sales
Drive for Results           -.100                -.066          .486**  .547**
Managing Vision & Purpose -.213                  -.155          .455**  .484**
Organizational Agility      -.234                -.180          .445**  .464**
Strategic Agility           -.118                -.074          .365*   .396*
Customer Focus              -.252                -.235          .431**  .415**
Integrity, Trust, & Ethics  -.145                -.133          .349*   .274
Self-Knowledge              -.288                -.240          .518**  .423**
Building Effective Teams    -.099                -.057          .508**  .591**
Developing Direct Reports   -.145                -.063          .396*   .406*
Listening                   -.308                -.271          .431**  .251
Managing Diversity          -.391*               -.370*         .615**  .487**
Motivating Others           -.276                -.182          .470**  .389*

** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
    District Manager Results
• Correlations with Gross Margin and
  Revenue NOT statistically significant
  for most competencies

• Managing Diversity negatively
  correlated with Margin & Revenue
  – Gross Margin r = -.39 (p<.05)
  – Revenue r = -.37 (p<.05)
     District Manager Results
• Service Plan and Accessory Sales strongly
  related to 360 Results for DMs
• Strongest Relationships with Accessory Sales
  were
  – Managing Diversity     r=.61
  – Self Knowledge         r=.52
  – Bldg Effective Teams   r=.51
• Strongest Relationships with Service plan
  Sales were
  – Drive for Results      r=.55
  – Bldg Effective Teams   r=.59
  – Managing Diversity     r=.49
                Relation of scores to outcomes

14.5                                                        9.0

                                                            8.8
14.0
                                                            8.6

13.5                                                        8.4

                                                            8.2
13.0
                                                            8.0
12.5
                                                            7.8

                                           Mean JUL PSP %   7.6
12.0

                                                            7.4
11.5
                                                            7.2

11.0                                                        7.0
                3.00         4.00   5.00                                   3.00          4.00   5.00


       BUILDING EFFECTIVE TEAMS                                   BUILDING EFFECTIVE TEAMS
                  Store Manager Correlations
                  (n = 573)
                                                  Gross       Acsry    Srvc Plan
                                     Revenue      Margin      Sales      Sales
Drive for Results                    .192**       .218**      .258**     .356**
Managing Vision & Purpose            .116**       .133**      .220**     .167**
Organizational Agility                .079        .086*       .251**     .225**
Strategic Agility                    .151**       .170**      .251**     .336**
Customer Focus                       .176**       .194**      .237**     .319**
Integrity, Trust & Ethics            .177**       .193**      .245**     .325**
Self Knowledge                       .188**       .201**      .290**     .355**
Building Effective Teams             .174**       .191**      .264**     .330**
Developing Direct Reports            .154**       .171**      .278**     .340**
Listening                            .196**       .214**      .280**     .385**
Managing Diversity                   .177**       .184**      .288**     .343**
Motivating Others                    .109**       .102*       .170**     .137**

** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
    Store Manager Results
• All correlations positive and most
  statistically significant
• Again, accessory and service plan
  correlations stronger than those with
  Revenue & Gross Margin
• Overall, correlation coefficients
  much smaller than for DMs
  Why are correlations for Dist. Mgrs
   larger than for Store Managers?

• Frequent movement of Store Mgrs

• Sophistication of Raters

• Quality of items included in the
  survey
        Sample Items: Drive for Results
District Mgr. Items                Store Mgr. Items
 – Focuses attention and            – Creates and executes
   energy on factors critical to      plans to improve
   success                            store performance
 – Sets high standards and
   expectations for him/herself     – Has a sense of
                                      urgency, passion,
 – Consistently meets
   aggressive timelines as            and energy
   established by self or           – Accepts nothing less
   others                             than our best effort
 – Mobilizes others as a way to       every day; strives for
   accomplish difficult tasks         excellence
 – Consistently follows
   through on his/her
   commitments
           Summary/Learnings
• 360 does relate to important Company
  outcomes – especially those more directly
  impacted by manager behavior
• Rigor in item development pays off later
• Don’t assume the process is purely
  developmental – identify outcomes most
  likely to be impacted and build a
  measurement plan early
• Shape best practices to work with culture

				
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posted:11/14/2010
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