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CASE STUDY
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Prior to
our analysis, *The Fireplace Shop was a growing business with
major growing pains. Founded in 1998 out of the garage of the
owners, Bob and Julie Smith, the business relocated in 2002 to a
very high traffic area of their city. The new store is very
well appointed. Sales growth has been excellent.
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Issues:
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Owner burnout.
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Not enough time out of
the store to enjoy their family and outside interests.
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No way to develop their
people.
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Owners’ opinion that
growth has topped out since the amount of stress makes growth
impossible.
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Too owner-centered.
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Violent peak period each
year. The volume done from September – December is as if the volume
is 3 times what the annual volume is.
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Administrative logistics
are far behind and they can’t seem to get caught up.
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No plans in place for
employee usage such as installation technicians during non-peak
times.
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Had no budget, and did
not understand how to calculate and control cash-flow. They only
had their tax return to review their financial performance. They
therefore suffered results with no opportunity to engineer better
outcomes.
Comments:
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The
potential of this business is tremendous. Customers coming in
the store do not get taken care of properly if the owners are
busy working with other customers already in the store, they are
out of the store on installations, or
they are performing administrative tasks. |
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Objective:
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Create a management team to build a
mission-driven, principle-based synergistic team where all
departments function interdependently and all are aligned with a
company mission.
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Define everyone’s roles, tasks, and
accountabilities.
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Develop a communication tool to develop
and maintain employees.
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Clearly define the lines of
communication.
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Define the role of the sales manager.
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Measure and track the critical aspects
of sales.
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Train the sales manager to maximize the
return on each customer asset.
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Define The Fireplace Shop's selling system.
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Train the sales team in The Fireplace
Shop's selling system.
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Become a goal-driven company.
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Eliminate price negotiation.
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Institute more appropriate delivery and
installation charges.
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Eventually fire the owners from their
roles as salespeople and replace them with well trained and
accountable salespeople.
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Develop strong financial
controls including an annual budget, a monthly profit and loss review
process and cash-flow analysis.
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JRM Solution:
Re-defined lines of communication.
Created a management team consisting of the owner, sales
manager, office manager, and operations manager.
Developed a company mission statement for the team.
Trained the management team to work as a synergistic,
cohesive group that worked interdependently of one another.
Trained the team on how to have effective meetings.
Created job descriptions: defining everyone’s roles,
responsibilities, tasks, and measurements.
Created job appraisals and trained how to effectively
perform them.
Defined and implemented their company's selling system.
Set goals for sales and store performance.
Redefined compensation based upon sales performance.
Created a tracking system for sales performance and goal
attainment.
Increased delivery charges and service fees.
Implemented a program to effectively sell extended
warranties.
Created a procedure manual for the office.
Stopped price negotiation.
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Projected Results
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Quantifiable results:
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Owner income
increased by 55%
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Profits increased
1.9 times
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Total sales
increased by 33%
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Delivery and
installation charges increased by 28.4%
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Gross margin
increased 3 points.
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Re-energized the
owners in their business.
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Owners can take off
when they want without negatively affecting the business.
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Everyone in the
company is on the same
page.
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Everyone understands
their roles and responsibilities.
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Created a team
approach to decision-making and problem solving.
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Accountability became
the model.
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Their employees are happier because they
feel more important and their ideas are valuable.
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A tool was developed to help the
owner and sales manager manage results.
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A tool was developed to help each
salesperson attain their income goals.
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A system was
developed to train and
continually develop the sales team.
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Created a procedure
manual for office tasks.
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Everyone learned new
skills.
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*Simulated Case Study based on information received
during the HPBA Convention.
CONTACT US
info@jrmsales-mgmt.com
866-925-6287 Toll Free |
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