Tools for Fools III

 
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In the 1960s, Douglas MacGregor defined "Theory X" as the belief that workers are inherently lazy and will avoid work if they can. Today many managers don't believe in Theory X unless a computer tells them to.

Computer programs look over workers' shoulders counting keystrokes and downtime and calls handled per hour. It's not Theory X. It's the quest for efficiency. At least that's what the people selling the programs tell us.

Managers who should know better measure good work by what the programmers and consultants tell them it is. "If the computer can't measure it," they figure, "we won't worry about it."

That's what's going on with the slice and dice retail scheduling programs covered by the Wall Street Journal earlier this month in an articled titled: "Retailers Reprogram Workers in Efficiency Push." The article featured a program in use at Ann Taylor, a woman's clothing retailer.

The program chops the day up into fifteen minute segments and defines the time for everything, from folding a shirt to "clinching a sale." According to Scott Knaul, director of store operations, they've "helped turn more store browsers into buyers."

Maybe. But at what cost? The system allocates five minutes for a sale. In fashion retail that means that salespeople are making quick sales, which are usually small sales and often only accessories. The best salespeople in the industry don't work that way.

The best sales people build both sales and relationships. That takes time. The computer system can't measure the difference between top sales people and the middle of the pack in terms of productive time, so it goes with the average.

My guess is that Ann Taylor will lose its best salespeople because they will find that the system does things that keep them from making money and developing the long term relationships that will help them make more in the future. But that won't show up for a year or so.

It will be the good folks, the ones who can work anywhere who will leave. What will be left will be the people can't find anything else. They may not be able to build big sales but they can fold shirts really fast.

Mr. Knaul can not acknowledge any of this. This should be a big resume-booster for him so he'll share details of that parts that work, like converting browsers to buyers. He does tell us that the store managers like the ease of scheduling, but doesn't share any of their comments about the system's affect on morale or turnover. He doesn't share any comparative sales-per-square-foot figures.

The system must be portrayed as magic. The things it can't measure, like morale, are simply ignored.

The most telling quote I saw in the article was from Mr. Knaul describing why they gave their system a name (ATLAS). It "was important because it gave a personality to the system, so [employees] hate the system and not us."

I wonder if he thinks the people who work in Ann Taylor's stores are that dumb. Maybe he should ask the computer.

Wally's Working Supervisor's Support Kit is a collection of information and tools to help working supervisors do a better job. It's based on what Wally's learned in over twenty years of supervisory skills training. Click here to check it out.

 
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Wally Bock has helped people learn to be great bosses for more than a quarter century. His latest book, Performance Talk: The One-on-One Part of Leadership, makes learning key leadership principles almost effortless by teaching through a story and providing lists of resources for further growth.

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Comments

  • 9/26/2008 10:45 AM GL HOFFMAN wrote:
    Well Said, WALLY. The world is full of advice givers, who don't do an adequate job of owning problems that might arise later. Your feeling is spot on...it is a resume builder for him and a loser for most of the others.
    Reply to this
  • 9/27/2008 11:54 AM Robyn McIntyre wrote:
    In the long ago, I installed phones for Ma Bell and my productivity was judged on standard times for new connects, reconnects, add lines, etc. I understood it, but it was onerous to work under and made all of us feel like machines, since it didn't take into account the differences between the various environments we worked in. We had to constantly justify any deviations from the norm. One of my favorites (I worked in South Central L.A.) was that an addline took me longer because I had a gun pointed at me by an LAPD officer looking for a robber who was using backyards to get away. I couldn't continue my work until he was satisfied I wasn't the robber.

    I loved your take on the "ATLAS" system - sales is about making a connection. This economy is a very bad time for Ann Taylor stores to be initiating such a metrics-driven system.
    Reply to this
    1. 9/27/2008 12:04 PM Wally Bock wrote:

      Thanks for sharing that story Robyn.

       

      I have no problem with performance metrics, but if they aren't both fair and perceived as fair it sets a company up for trouble.


      Reply to this
  • 10/4/2008 8:52 PM Mark Bach wrote:
    The Wharton School has an article expressing your same views of this system. Thought I'd share the link

    http://knowledge.wharton.upenn.edu/article.cfm?articleid=2066
    Reply to this
    1. 10/5/2008 2:06 PM Wally Bock wrote:

      Thanks for sharing that, Mark. We have amazing computing power that can help us do many things. It seems ashamed to devote it to trying to turn people, our critical resource, into interchangeable parts.


      Reply to this
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