Mothercare wanted to deliver the next wave of growth with particular emphasis on improving the capability of Area Managers.
Mothercare Group – Mothercare stores and Early Learning Centres – is a very successful organisation. The press and the retail industry recognise the great strides the Group have made over recent years. It is a retailer that has seen LFL growth consistently exceed 5% and profits climb; not bad at all.
However, sitting on laurels is not one of Mothercare’s traits – it wanted to be taken to the next level. The senior retail team were not satisfied with current growth; they perceived a richer harvest. They recognised that, with the demise of some major brands, their opportunities for growth increased – “It’s an ill wind...etc.”
The retail team believed that the key lever lay in developing the leadership capability of their area managers. If they could operate in an even more effective way, inspire the stores and improve retail effectiveness, results would dramatically improve; they believed the prize was attainable.
So why bring in ReConsulting? They recognised that ReConsulting had the leadership expertise (behaviour and implementation), unparalleled enthusiasm for their subject and a track record and confidence to deliver something extraordinary, and this we did.
So....we created a five stage process that engaged the senior retail team, the Area Managers (AMs) and ReConsulting in a ‘Holy Alliance’.
The first phase focused on the senior retail team. They had to create a framework which enabled the AMs to be different and stay different. What were the implications for them as leaders? How could they demonstrably support the AMs in the future? How could they engage the AMs in defining the future for retail operations? How to measure performance and improve accountability?
Phase two consisted of a three day event for the AMs, led by the senior retail team with ReConsulting support. The outcome – a transformed AM team; enabled, supported and inspired to massively raise the performance bar.
Now we know “events,” although inspirational, do not on their own deliver behaviour change. So, phase three was all about coaching, by the senior managers and by ReConsulting. We held two onsite coaching sessions to help shape inspirational leadership behaviours and lead the change agenda. This was an outstanding success. Phase four and five brought the whole retail team together to recognise great performances and provide data on further development opportunities. Thus the process is iterative.
In the four months since the end of the three day AM event, performance had risen in two key performance measures – sales and average customer spend. Sales increases, equivalent to over £25 million a year (based on audited 08/09 figures), enhanced by a quantum leap in the average customer spend; represent huge increases with a corresponding impact on profitability. In addition, reduced payroll costs further increased profitability.
Not only have the ‘hard’ measures been positively impacted, but the morale of the AMs has risen to higher levels. This has impacted on their ability to inspire their store teams. Store Managers are, in turn, raising the bar in their own stores. Their willingness to engage in serious performance management of their teams has improved dramatically. They have taken great delight in helping their store teams set BHAGS – Big Hairy Audacious Goals. The morale, buzz and focus of store teams have improved substantially. Customer service levels have risen, customer loyalty enhanced and the anticipated ROI on their investment in ReConsulting is by a factor of about 100!