September FAQ — Not just a focus on numbers
One Friday each month, I dedicate the post to looking at some questions I have heard recently from developing leaders. Sharing those questions and my thoughts about them is a way for me to spread the information to as many leaders and future leaders as possible. If you have a question about leadership, or just a situation you would like some additional insight on, please email me at Effective Retail Leader. Let’s take a look at this week’s question.
I am a new leader and I do not want to just focus on the numbers. That has always been the case in the store I have taken over. How do I help change that thought process without losing positive results?
I love this question and I wish it would get asked more often. I am still amazed at how many people in every level of retail immediately wrap themselves up in just the reports and numbers. They frequently forget to stop and ask why we are getting the results they see on the screen, and just react. It is an easy trap to fall into. I find myself still getting caught up in just the numbers versus pausing to understand what internal, external, or other factors need to be considered.
Numbers are black and white outcomes, they represent facts. That doesn’t mean that data cannot be used in ways to paint more positive results when shifting the parameters. But often in retail, we have a set of metrics that are clearly defined and represent what people are measured on. Some simple examples are sales to plan, profit to plan, or customer service scores to expectation.
Put your energy into understanding what activities improve the number.
If you spend all of your time just looking at the numbers and not how you get to them, you will always feel like you are on a treadmill. Or as I have seen multiple times over the course of my career, people spend a lot of time trying to prove that the numbers are somehow wrong or unfair. Tip number one: stop concentrating effort on proving numbers one way or another. Put your energy into understanding what activities impact the number. Then translate that into the actions your team can take.
It can be very simple. And I will over simplify it here, but if you want to improve your sales — sell more stuff. If you want to improve profit — manage expenses, and sell more margin rich stuff. If you want to improve your customer service scores — talk to your customers, be friendly, work efficiently. Obviously, a lot goes into each of those simple steps, but it also doesn’t have to be much more complicated than that.
Tip number two is to dedicate time to observing your team. This is a two-step process. Observing is the first half, the second portion is about sharing your observations and providing feedback and coaching. This is much more difficult than it sounds. I would argue if more store or multi-unit leaders invested time in this two-step activity, results would begin to improve immediately. We get distracted by the other moving pieces of the business, and it is all too easy to skip this activity. Try it for even a couple of days and see how your team responds. Then watch the difference in results.
Connect behaviors to the results you are getting. If you already have ‘good numbers’, talk about the actions and activities that are happening currently that are leading to those positive outcomes. Encourage and coach your team to do more of those. If you are not getting the results you want, make changes. If you have some that are doing well, ask them to help you support others. Peer to peer support and coaching can go a long way in making shifts in behavior and outcomes.
“Looking at the numbers” is important. Understanding the numbers is even more so. While we tend to talk about the numbers more than anything else, it is never about the numbers. They are only the outcome of everything else that is going on around you. It could be scheduling, training, merchandising, engagement, or in-stocks, to name a few common internal drivers. It could be a macroeconomic, marketing, or brand concern, to name a few external possibilities. For store and multi-unit leaders, we must control what we can control first. There are many behavioral levers we can control that will be the drivers ‘of the numbers’—address those head on, and you’ll no longer need to worry about the numbers (as much), they’ll take care of themselves.
If you have a question you would like answered in the future, ask in the comments, or send directly to Chris@effectiveretailleader.com.
Join other retail leaders in continuing their development journey with Effective Retail Leader.com. SUBSCRIBE today to receive leadership tips directly to your inbox and monthly newsletters that provide many tools to help further develop your leadership skills. JOIN NOW!
No spam ever — just leadership goodness.