October 25, 2007
BrainTrust Query: Can RFID replace good supervision?
By Bill Bittner, President, BWH Consulting
It’s probably no longer politically correct to use the term “supervisor,” but the role of a manager or “team captain” to ensure the quality of results is critical to the successful accomplishment of business goals. Individual managers must be able to correct errors and, hopefully, prevent their future occurrence through a combination of training, encouragement and discipline.
The recent announcement by Wal-Mart that one of its new goals for radio frequency identification (RFID) is to use in-store hotspots combined with pallet RFID tags to ensure merchandising programs are properly executed leads to several thoughts. I can only assume that the reason Wal-Mart wanted to do this was because they were not happy with the current level of execution.
Is it possible that the local management doesn’t know they have a problem with program execution? Is providing notification to the central office going to improve compliance? If managers are failing to train, encourage and discipline, is the threat of some kind of retribution from headquarters going to make a difference?
I refer to my own experiences at a major, east coast supermarket chain. In the mid-80’s, we put a system in place that automatically verified the proper shelf tags had been put on the shelf. We also monitored the first order from a shelf tag after a new item introduction to make sure the item had been shelved, and to spot any invalid orders for discontinued items from old tags. The simple result was that we could quickly tell which stores had sloppy shelf management. Great news, but did this fix anything?
It came as no surprise to the local management that their tags were not up to date. The fact that middle management now also understood the magnitude of the problem made some difference. Publishing the report had some competitive influence. But true corrective action required some tough decisions and good management at the local level.
Discussion Questions: Can technology make up, at least in part, for poor supervision of store-level execution? Does more emphasis need to be placed on the quality of results? Do managers properly monitor the quality of results coming from their teams?
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RFID is a tool for the associates to use to make their job easier, therefore assuring results. It is not robotic and certainly won’t replace the need for proper execution. Managing a store such as a Wal-Mart store is a daunting task, there are so many different areas and so many critical execution points. It is imperative that store managers and associates are given tools. The evolution of technology is providing more advanced and informative tools. The best-run stores in busy times could have stockouts. RFID will allow notification and automatic alerts that will assure replenishments.
Do managers properly monitor the quality of results coming from their teams? It depends on where the company or retailer sets the priority. What gets measured gets done! Some probably do but good managers are developed and lead by great leaders who train by example to enable and reward excellence.
Why not use unreliable technology to monitor whether or not the manual execution was reliable or not?
I disagree with the premise that the primary reason for this has anything to do with improving execution; it has a lot more to do with improving performance.
The RFID tagging of displays is not going to change the quality of store execution–it will generate data on the RESULTS of store execution. Once in place, it will allow a retailer to test assumptions about display location, style quantity, sell through, and a host of similar things that the store management either can’t or won’t be able to do now.
The questions WMT will answer here will be less about “did you put the display up” and more around “Is Display Module A in Location X more or less effective than Module B in location Y?”
Plus, it provides a rather nice proof-of-performance trail for collection from vendors.
Let’s see, would an electronic calendar help you with your personal time management? Same question, same answer.
Has anyone seen an RFID GUI? They’re fairly daunting, often poorly integrated or not integrated at all, and are no fun. Think about the “kids” who are expected to use and execute RFID reporting programs. They’re very familiar with videogames and interesting, interactive websites. They’re quick-witted, used to change, experimental, and innovative. It occurs to me that a Graphical User Interface which captures their interest will increase use and accuracy.
The gist I get from people I know in the world of Big Box is that they are continuously cutting management labor. This more than anything is probably leading to the poor execution.
Perhaps at some point in time, someone is going to have to cry uncle. Consumers are going to continue to expect lower and lower prices as long as they give them. There is a difference between being competitive and being insane. Sales mean nothing without profit. And you cannot cut your way into prosperity or create enough technology to totally eliminate the need for human workers.
When putting a system in place to help manager hire better through automating the hiring process, it might be helpful to ponder this comment which came from a head of HR: “Automation has made the best managers great, the good managers better and even the poor manager adequate.”
Technology will never replace supervision but it will give supervisors the tools to do their job faster and more effectively if they use them and apply the knowledge the systems will provide.
The question we need to keep asking is, can we do this job differently and with the change in the demographics, can we do this job without people?
I support Bill’s position as far as it goes–better measurement can only identify problems, but can’t force poor managers to correct them. But our discussion horizon may be a bit too limited if we exclude the group of managers who are generally capable and well-intentioned, but simply overwhelmed by the complexity of today’s promotional cycles/vehicles. We also exclude the other elements of the implementation chain that can err–often to the local supervisor’s detriment and many times without their knowledge. So let RFID drive the exception reporting that management science has championed for years. And let the good supervisors who will use it to improve in-store execution to the benefit of all. THEN fire the incompetents who can no longer hide.
Technology doesn’t replace good supervision. Technology helps people become more effective. Most retail managers are well aware of their execution shortcomings. If RFID-generated reports tell management that needed stock isn’t being displayed, that might improve productivity. Of course, a similar result might be achieved in other, less costly, simpler ways, too.
Good technology, properly implemented, can help a mediocre manager become a good one.
Can it help a poor manager? No way. A poor manager will find a way to screw up.
In the case of RFID, we have new technology with all kinds of local and environmental vulnerabilities. Feedback and diligence from the end users is paramount.
Why not? Management in most companies today is leaner to the point of not being able to accomplish all the tasks necessary. In this competitive age any tool that will help improve merchandising (and hopefully sales!) should be utilized. It is not a replacement for training and interpersonal management skills, BUT it can be a tool that identifies training needs, allows implementation of corrective action and measures results. Any legitimate aid to improving performance should be used.
Can’t argue with any of the above statements, but will add that the analysis of data collected via RFID should help clarify priorities at the store level. RFID will tell the store manager when to expect that promotional shipper he or she has been waiting for so labor resources can be allocated to getting on the floor as soon as it arrives. It can alert him or her when it arrives at the back door. It can confirm scheduled inspections of the shipper to ensure in-stock positions. And much, much more.
RFID will probably make the good managers more effective and could make poor managers more accountable. However, the true value is hidden away in the data. It remains to be seen if this will be a great source of value or just another source of information overload. It could go the way of CRM systems. The data collected by CRM systems are unquestionable valuable; however, it is the rare company that has found a way to profit from it.
No, No, No. RFID is a recording tool, not an implementing tool. Like all tools, it still requires interpretation, implementation, and follow-through as well as review. These are all execution actions and require the mining of the data (which RFID stores) along with the interpretation and execution of a correction plan. RFID still has a long way to go, since it only offers an alternative to the recording of information, yet has technology concerns, personal security issues, and of course the largest issue of cost of implementation (it’s too expensive). Until all of these issues has been adequately addressed and accepted, RFID will continue to be the uneeded, unwanted technology that will not be accepted or standardized in the retail environment.
Bill writes above, “I can only assume that the reason Wal-Mart wanted to do this was because they were not happy with the current level of execution.”
I’ve had a feeling for awhile that RFID at Wal-Mart, in their understandable zeal to embrace new technologies, was a technology looking for an application. It’s not clear to me at this point that RFID, as currently developed, addresses specific, clearly identified problems or significantly improves upon existing operational efficiencies.
The idea of “tagging” displays with RFID is not new. Goliath Solutions has been has been doing this for about four years. The idea is to simply, timely and accurately generate automated reports to a remote location for the purpose of monitoring and controlling the placement and takedown of promotional displays. It will allow a few individuals in a remote location to monitor in real-time the execution of promotional campaigns.
After Wal-Mart proves the effectiveness of monitoring displays, I’d bet they would turn the same technology over to monitoring in real-time the movement of shopping carts within their stores. The analysis of shoppers’ travel patterns on a massive scale through RFID tagging should be very interesting. It has already been done on a smaller scale. (Tag Team: Tracking the Patterns of Supermarket Shoppers)
Just an additional thought: If done right, good RFID-based store reporting could also help with the age old problem of keeping up with planogram compliance for the corporate teams. It’s incredibly difficult for corporate to execute promotional consistency if they don’t know what the local store managers are and are not complying with and where things are actually sitting on the store floor. As we launch more and more consumer-facing digital efforts, this is critical. Regarding large stores, who hasn’t heard that wayfinding is a challenge? And how could we create proper digital wayfinding self service if we can’t ensure planogram compliance? At least identifying the problem stores can help corporate hold each store accountable…and save a heck of a lot of money on ongoing store surveys.
The story I read said that Wal-Mart associates will collect these data using RFID hand-held readers. If they cannot discipline their associates to use already existing $600.00 barcode scanners, how are they going to get them to use the $2,000.00 RFID readers?
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RFID is a tool for the associates to use to make their job easier, therefore assuring results. It is not robotic and certainly won’t replace the need for proper execution. Managing a store such as a Wal-Mart store is a daunting task, there are so many different areas and so many critical execution points. It is imperative that store managers and associates are given tools. The evolution of technology is providing more advanced and informative tools. The best-run stores in busy times could have stockouts. RFID will allow notification and automatic alerts that will assure replenishments.
Do managers properly monitor the quality of results coming from their teams? It depends on where the company or retailer sets the priority. What gets measured gets done! Some probably do but good managers are developed and lead by great leaders who train by example to enable and reward excellence.
Why not use unreliable technology to monitor whether or not the manual execution was reliable or not?
I disagree with the premise that the primary reason for this has anything to do with improving execution; it has a lot more to do with improving performance.
The RFID tagging of displays is not going to change the quality of store execution–it will generate data on the RESULTS of store execution. Once in place, it will allow a retailer to test assumptions about display location, style quantity, sell through, and a host of similar things that the store management either can’t or won’t be able to do now.
The questions WMT will answer here will be less about “did you put the display up” and more around “Is Display Module A in Location X more or less effective than Module B in location Y?”
Plus, it provides a rather nice proof-of-performance trail for collection from vendors.
Let’s see, would an electronic calendar help you with your personal time management? Same question, same answer.
Has anyone seen an RFID GUI? They’re fairly daunting, often poorly integrated or not integrated at all, and are no fun. Think about the “kids” who are expected to use and execute RFID reporting programs. They’re very familiar with videogames and interesting, interactive websites. They’re quick-witted, used to change, experimental, and innovative. It occurs to me that a Graphical User Interface which captures their interest will increase use and accuracy.
The gist I get from people I know in the world of Big Box is that they are continuously cutting management labor. This more than anything is probably leading to the poor execution.
Perhaps at some point in time, someone is going to have to cry uncle. Consumers are going to continue to expect lower and lower prices as long as they give them. There is a difference between being competitive and being insane. Sales mean nothing without profit. And you cannot cut your way into prosperity or create enough technology to totally eliminate the need for human workers.
When putting a system in place to help manager hire better through automating the hiring process, it might be helpful to ponder this comment which came from a head of HR: “Automation has made the best managers great, the good managers better and even the poor manager adequate.”
Technology will never replace supervision but it will give supervisors the tools to do their job faster and more effectively if they use them and apply the knowledge the systems will provide.
The question we need to keep asking is, can we do this job differently and with the change in the demographics, can we do this job without people?
I support Bill’s position as far as it goes–better measurement can only identify problems, but can’t force poor managers to correct them. But our discussion horizon may be a bit too limited if we exclude the group of managers who are generally capable and well-intentioned, but simply overwhelmed by the complexity of today’s promotional cycles/vehicles. We also exclude the other elements of the implementation chain that can err–often to the local supervisor’s detriment and many times without their knowledge. So let RFID drive the exception reporting that management science has championed for years. And let the good supervisors who will use it to improve in-store execution to the benefit of all. THEN fire the incompetents who can no longer hide.
Technology doesn’t replace good supervision. Technology helps people become more effective. Most retail managers are well aware of their execution shortcomings. If RFID-generated reports tell management that needed stock isn’t being displayed, that might improve productivity. Of course, a similar result might be achieved in other, less costly, simpler ways, too.
Good technology, properly implemented, can help a mediocre manager become a good one.
Can it help a poor manager? No way. A poor manager will find a way to screw up.
In the case of RFID, we have new technology with all kinds of local and environmental vulnerabilities. Feedback and diligence from the end users is paramount.
Why not? Management in most companies today is leaner to the point of not being able to accomplish all the tasks necessary. In this competitive age any tool that will help improve merchandising (and hopefully sales!) should be utilized. It is not a replacement for training and interpersonal management skills, BUT it can be a tool that identifies training needs, allows implementation of corrective action and measures results. Any legitimate aid to improving performance should be used.
Can’t argue with any of the above statements, but will add that the analysis of data collected via RFID should help clarify priorities at the store level. RFID will tell the store manager when to expect that promotional shipper he or she has been waiting for so labor resources can be allocated to getting on the floor as soon as it arrives. It can alert him or her when it arrives at the back door. It can confirm scheduled inspections of the shipper to ensure in-stock positions. And much, much more.
RFID will probably make the good managers more effective and could make poor managers more accountable. However, the true value is hidden away in the data. It remains to be seen if this will be a great source of value or just another source of information overload. It could go the way of CRM systems. The data collected by CRM systems are unquestionable valuable; however, it is the rare company that has found a way to profit from it.
No, No, No. RFID is a recording tool, not an implementing tool. Like all tools, it still requires interpretation, implementation, and follow-through as well as review. These are all execution actions and require the mining of the data (which RFID stores) along with the interpretation and execution of a correction plan. RFID still has a long way to go, since it only offers an alternative to the recording of information, yet has technology concerns, personal security issues, and of course the largest issue of cost of implementation (it’s too expensive). Until all of these issues has been adequately addressed and accepted, RFID will continue to be the uneeded, unwanted technology that will not be accepted or standardized in the retail environment.
Bill writes above, “I can only assume that the reason Wal-Mart wanted to do this was because they were not happy with the current level of execution.”
I’ve had a feeling for awhile that RFID at Wal-Mart, in their understandable zeal to embrace new technologies, was a technology looking for an application. It’s not clear to me at this point that RFID, as currently developed, addresses specific, clearly identified problems or significantly improves upon existing operational efficiencies.
The idea of “tagging” displays with RFID is not new. Goliath Solutions has been has been doing this for about four years. The idea is to simply, timely and accurately generate automated reports to a remote location for the purpose of monitoring and controlling the placement and takedown of promotional displays. It will allow a few individuals in a remote location to monitor in real-time the execution of promotional campaigns.
After Wal-Mart proves the effectiveness of monitoring displays, I’d bet they would turn the same technology over to monitoring in real-time the movement of shopping carts within their stores. The analysis of shoppers’ travel patterns on a massive scale through RFID tagging should be very interesting. It has already been done on a smaller scale. (Tag Team: Tracking the Patterns of Supermarket Shoppers)
Just an additional thought: If done right, good RFID-based store reporting could also help with the age old problem of keeping up with planogram compliance for the corporate teams. It’s incredibly difficult for corporate to execute promotional consistency if they don’t know what the local store managers are and are not complying with and where things are actually sitting on the store floor. As we launch more and more consumer-facing digital efforts, this is critical. Regarding large stores, who hasn’t heard that wayfinding is a challenge? And how could we create proper digital wayfinding self service if we can’t ensure planogram compliance? At least identifying the problem stores can help corporate hold each store accountable…and save a heck of a lot of money on ongoing store surveys.
The story I read said that Wal-Mart associates will collect these data using RFID hand-held readers. If they cannot discipline their associates to use already existing $600.00 barcode scanners, how are they going to get them to use the $2,000.00 RFID readers?