Tiffanie Harrison Overview Identify Analyze Recommend Timeline ACSI Index 20012005 Net Earnings 20012007 From Nardelli Blake Problems Assuming that employee engagement has a direct correlation to customer satisfaction ID: 535559
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Slide1
The Home Depot
Tiffanie HarrisonSlide2
Overview
Identify
Analyze
RecommendSlide3
TimelineSlide4
ACSI Index 2001-2005Slide5
Net Earnings 2001-2007Slide6
From Nardelli
BlakeSlide7
Problems
Assuming that employee engagement has a direct correlation to customer satisfaction…
Focusing on the bottom-line and not customer satisfaction
Employee recognition and incentives sending mixed messages
Store manager behavior goes uncheckedSlide8
Orangeblooded CultureSlide9
Inverted Triangle of Home DepotSlide10
I Put Customers FIRST
Find a customer; find the product.
I
nquire.
Ask open-ended probing questions. Ask, “How can I help you?”R
espect. Be polite, professional and positive.Solve their problems.
Thank the customer. Say, “Thank you for shopping with us. We appreciate your business.”“I was greeted by 5 people when I walked in but could not find anyone when I actually needed help finding something.”
-CustomerSlide11
In Addition to Customer Service…
Execute Power Hours 100%
Order & Pack-Down for your area
Follow-up on all out-of-stocks
Don’t allow a customer to leave dissatisfied due to an out-of-stock
Keep aisles uncluttered and easy to navigate
Execute MAP standardsEnsure that the ad is 100% set in your area each weekSlide12
Employee Rewards
Success Sharing
Incentive program for hourly store associates driven by individual store performance.
What effect would this have on morale? Why are you getting a bonus if I do all of the work?
Homer Awards
Individual awards given to associates for outstanding customer service.Stock GrantsStarting at the assistant store manager levelSlide13
Inverted Triangle of Home DepotSlide14Slide15
Recommendation OverviewSlide16
Focus on Store Management
Include store-level management in the
pyramid for accountability
Make
criteria for incentives clear & standardize
Dale Carnegie training @ $1,350 per manager for a 2-day session. If 2 managers were sent from every store that would be approximately $5.9
millionThis cash might be better invested in developing and/or refreshing existing programming$45K for 55 hours a week. Increase salaries as a possibility. Approximately $22 million cash outlaySlide17
Make Criteria Clear for Rewards
Back off of the Success Sharing program over time
Reallocate the 50% of the annual $63 million payout to individual incentives
Can we expect hourly and part-time employees to fully buy-in to sales goals?
Success Sharing will grow with time as store managers are held accountable and
trainedSlide18
Lighten the Load
At one point in time, HD invested $2 billion into new hires for ample support
Customers still complained that even though there were more employees, there was still not enough help to go around
Moving forward, hire for strengths
Allow sales employees to have a singular focus
Place people strategically“Own the Pro”, Merchandising Execution Teams, etc.This should come at no cost to the companySlide19
Contingencies