The Power of Direct Observation in Retail

All to often people make changes based on data without taking the time to observe what is really happening.  This can lead to decisions that are not in the best interest of the business.

Recently, in our retail shop the data showed that we had some product that was not selling.  If we would have gone strictly with the data, we would probably clearance out the product and not carry it anymore.  But, we believed the product was something that people truly wanted.

Instead, we observed people as they perused the shop.  What we saw was people weren’t even seeing the product with the way they were shopping the store.

We decided to re-merchandise the store and almost instantly, as in the next day, we had sales on the product that wasn’t selling.

Data didn’t tell us the problem, but it did point us in the direction of a problem.  That is were data is very helpful, but the power came in observation.  Observation helped us see what the problem truly was so we could take appropriate action.

Do you take the time to observe the problem?  Or do you just manage by data?

Advertisement

Guest Post: Leadership style and neural networks – Part Two

Today’s post is from Karen Wilhelm.  Karen has inspired me to connect and learn more through blogging.  It has been great communicating with Karen over the last few years.  Her insights are always enlightening.  This is part two of a three part series.  

Developing versatility

We’ve seen in Part One of this article that a leader often has a preferential use of the task-oriented brain network, but we can also switch to the social neural domain.

Can a leader use both domains at the same time? Apparently, that doesn’t work out so well. That results in treating people as things — objectifying them — and manipulating them to achieve some goal, whether we mean to or not. People naturally recognize the insincerity. The leader may mean well in assuming an action will benefit people, but without proper use of the DMN operating, it’s impossible to know for certain what they want or need. When people aren’t involved in that DMN-related decision interaction, they aren’t as accepting of a management action.

The study’s authors have a couple of suggestions for training more versatile leaders. One is to use simulations for practicing switching. Another is to design career paths that alternate or split time between DMN creative endeavors like marketing or training others, and TPN activities like finance, IT, and quality assurance. In addition, Boyatzis says, management education should include more teamwork, service learning, internships and personal reflections on the impact of behavior and values on others.

Matt Wrye: As a lean change agent, the switching between TPM and DPM happens routinely.  I have had to develop training and put myself in the learner’s shoes trying to understand what they need.  Then a few hours later switch modes and work on solving a problem using data.  I would say that my natural tendency is TPN and I have had to learn more about DPM through the years.

Chris Paulsen:  It seems that most leadership roles require switching between TPM and DPM if they are to be done well.  My natural tendency is definitely TPN and DPM takes more effort for me.  The rotation between these two domains discussed in Part 1 may explain why being more people oriented seems to come easier on some occasions than others.

Leadership style and neural networks – Part 1

Visit Karen’s Lean Reflections  Blog for more interesting blogs.

Open for Business

I have had a hard time keeping up with the blog this year for a very good reason.  Regular readers may know that my wife has had an online business selling handmade soaps and bath and body products that she makes.  Over the last 4 years revenue has continued to grow at an incredible rate.  So much so, that we out grew out house a year ago and have been searching for a space outside the house to make the products.

Everything finally fell into place.  On Saturday, July 5th, 2014; Crimson Hill Soapworks and Gift Market retail soap opened for business.

It took almost a year and a half to find a place, negotiate the build out and rent, get the work done to the space and then set up the retail space and the kitchen.  The opening went better than we could have hoped for and now we are fully open for business.

Are we using lean in the business?  You bet.  We aren’t perfect and we have a long way to go, but we have always applied the biggest tenant of lean from the start.  Focus on value for the customer.  We believe the customer sets the market price for the product and our profit is that price minus our cost without suffering quality.

We know our target market and that is who we aim to please.  Our products may not be for everyone but for our target market we want to drive a high value proposition.

Here’s to new adventures!