Omni-channel Leadership White Paper - Feb 2013

OmNI-cHaNNEl lEaDErsHIP The hidden risk facing retailers

INDEX

Executive summary

Introduction

Omni-channel strategy

Organisation design and culture

Best practice

Skills gaps

Talent attraction and retention

Compensation & Incentives

Benefits, rewards and satisfaction

Key findings and conclusions

Recommendations

About Green Park

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Omni-channel leadership The hidden risk facing retailers

EXEcutIVE summarY

Industry pundits have been talking about omni-channel as ‘the retail of tomorrow’ for some time now. The trouble is, tomorrow is now. Omni-channel is today’s reality and its formats and

dynamics are the key to survival, success or failure for the retail sector.

Customers’ buying habits have already shifted, altering the retail landscape at a rate that has left many organisations in its wake, as evidenced by the recent collapse of many high street brands like HmV, Blockbuster and Comet. Yet, despite such eloquent demonstrations of the dangers of clinging to tradition as things change, we discovered that retailers are still ignoring many of the warning signs.

In our experience of sourcing leadership and managing talent for top retailers across geographies and categories, we have seen the industry adapt and evolve, but never have the consequences of a faux pas been so far-reaching as the risks involved in getting the omni-channel equation wrong. although nobody really knows what tomorrow’s omni-channel will look like and which technological developments will have the greatest impact, retailers must understand that their customers are not interested in technology, but in their product, brand and service. So any innovation that they look to develop must focus on whether it is going to deliver a better customer experience. new technology in itself is not going to do it: retailers need the best human talent to match the appetite for an omni-channel provision. the industry must ensure they have the right people strategy, organisational design and culture, but most importantly they must address the way companies compensate, incentivise and reward their senior digital talent.

We explored best practices and the implications of not tackling skill gaps in retail with an international survey into key omni-channel leaders in the industry. the task we set ourselves presented a challenge right from the start: Who will we be interviewing? there is no single profi le that is the ‘right’ one to lead the omni-channel strategy: in some markets it falls to the marketing director, in others the retail director or a multi-channel director, but rarely are all these skills combined into one function – the omni-channel one.

While it is widely accepted that the industry needs omni-channel professionals to meet the consumer demand for fully integrated and immersive customer experiences, retailers are ignoring the value of retaining the very talent that makes it possible. at their own risk: we discovered that more than half of the top omni-channel leaders are actively looking for new job opportunities and being contacted at least once a week by head hunters.

retailers are out of touch with what leaders in this new discipline expect from their careers: changing demographics mean omni-channel professionals require a different combination of benefi ts than the established pension-health insurance-car allowance offering. Career development is also key to this new generation of employees, yet omni-channel leaders rarely feature on companies’ boards. Shutting this crucial talent out of the top table is a risky move for the retail industry, as it creates an imbalance between the pressure put on the omni-channel function to generate growth and the tools it’s given to bring about the change required to succeed.

retailers are confused as to how omni-channel should be represented on the board, but some leaders have been making the fi rst steps in this direction: John lewis recently appointed a new board level online director; marks and Spencer’s laura Wade-gery is executive director, multi-channel and eCommerce and on the other side of the atlantic, macy’s went as far as appointing robert Harrison as ‘Chief omni-channel offi cer’. trailblazing retailers will no doubt reap the benefi ts of a new structure that will deliver sustainable performance improvement through people.

Steve Baggi, Co-Founder

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INtrODuctION

Retailers of all sizes and categories are constantly reviewing and adjusting their omni-channel strategies to ensure not only that they connect with customers across all physical and digital channels, but also that they retain what has become a more fi ckle customer base than ever before. With that in mind, we set out to explore what this meant from a people perspective, to understand if senior Management and leadership within Retail businesses is meeting these challenges and if it’s equipped to make the most of the opportunities ahead.

We developed a survey that was distributed to e-Commerce, multi-Channel and digital directors including leaders from over 50 retail businesses across the uK and internationally. We surveyed a variety of organisations of different sizes and footprint:

• Businesses with a minimum of £2m turnover and global conglomerates of £1b+

• Businesses operating purely in the uK domestic market and companies trading in the uSa, netherlands, france, germany, and far east markets.

We extended our research to include a wide spectrum of product categories including:

this White paper builds on the main fi ndings of this international survey to present green park’s recommendations for Senior management to create a sound organisational structure for success in omni-channel retail.

FASHION FOOD ELECTRONICS DIY

> £2m £1b+

Retailers are clearly adopting omni-channel practices and it is widely agreed that developing a robust omni-channel strategy is vital to the future growth of the retail industry. however, many businesses have yet to fully integrate it into their corporate strategy and sales channels remain siloed rather than integrated.

retailers have welcomed the benefi ts of online trading, but they have not been so quick to implement cross-channel practices, with the result of a confused customer base. pioneering companies like apple have changed the retail landscape forever: Steve Jobs was adamant in his view of customer experience as a company driver. apple’s control of customer experience from end-to-end means that all brand attributes are fully broken down on all touchpoints. the true omni-channel consumer has grown to expect a seamless experience across channels as a fact of life and is leaving companies that cannot deliver it.

retailers talk the talk, but don’t walk the walk: over half of the organisations have yet to introduce the order and collect purchasing model into their customer proposition. this model is key to meeting the consumers’ expectations in terms of fl exibility and to encouraging the combined use of online channels and physical stores, which will always be a valuable part of the mix. With less than a third of the businesses having a store cross-channel incentivisation programme in place, retailers are gambling with overall customer experience, an all-important factor in today’s crowded market. By not offering employee reward for encouraging shopping across multiple channels, organisations are also losing out on the opportunity to upsell and increase their revenue potential.

retailers must ensure that store staff provide a fi rst class service even though the transaction and reward will be merited elsewhere, demonstrating the crucial link between culture, incentive programmes and customer service.

OmNI-cHaNNEl stratEgY

57% 71.4%

of organISatIonS do not CurrentlY uSe ORdeR-aNd-cOllecT

BelIeVed tHeY Had TOO MaNy sTORes In tHeIr portfolIo

HaVe NO sTORe INceNTIVIsaTION programme In plaCe for CroSS-CHannel SaleS

52.4%

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Omni-channel leadershipThe hidden risk facing retailers

John lewis, the seventh biggest uk mobile retailer with 764,461 unique mobile visitors (source: comscore gsMa MMM November 2012), has been one of the most active retailers in the mobile space, and has claimed smartphone and tablet shopping is generating triple-digit growth, both in terms of traffi c and revenues. although it has yet to determine the exact infl uence mobile has on offl ine sales, John lewis has also used devices to link its online and offl ine customer journeys.

OmNI-cHaNNEl stratEgY continued

SaId tHat SoCIal medIa dId NOT maKe up part of tHeIr Current SaleS mIX

SaId tHat onlIne made up NOT eVeN ¼ of tHeIr total SaleS

reSpondentS BelIeVed moBIle Would Be tHe CHannel to generate MOsT gROWTh oVer tHe neXt 3 YearS

42%

63%

73.6%

of SaleS are drIVen tHrougH moBIle CurrentlY 1

0.5%

1 http://www.themcommercepro.com/news/34/uk-consumers-uneasy-on-mobile-payments-but-m-commerce-still-expected-to-grow/

current sales mix despite the industry increasingly looking to develop innovative online and digital strategies, sales are still largely driven through stores, with social media being neglected as a driver for growth. While some are still questioning the roI of social media for marketing, leaders in the industry, like Currys, are successfully using facebook and pinterest to drive more engaged visitors to their company’s website, strengthen relationships with current customers and increase the total number of sales or average order amount.

the riddle of monetisation for a company’s social media efforts is slowly getting solved: whilst the ‘like’ button is not transaction-based, facebook Cards are proving a successful tool to translate social media activity into real sales. While many retailers are still spectators in the social media game, the market changes at the speed of light, with consumers now able to purchase goods and services with a tweet thanks to american express’ new tie-up with twitter.

to date, one of the biggest developments in the mobile space is Weve, the mobile marketing and wallet joint venture between ee, o2 and Vodafone. this consortium marks the fi rst collaboration between the mobile networks to bring mobile marketing and payments to the mainstream.

retailers need to focus on creating a seamless customer experience across all channels, but also build in increased fl exibility across the ever-changing points of sale. as technology continues to develop and brands become more global, retailers must ensure that they are able to adapt their multi-channel capability to merge social and local.

The ongoing emergence of new channels, such as the most recent mobile commerce, means the industry struggles to come up with forward-looking strategies, because it focuses on the individual performance of each channel. Businesses must take a holistic view if they want to future-proof their approach: they should focus on integrated services, seamless back offi ce processes and consistency of customer experience. Retailers must ensure organisational design and infrastructure are fl exible and agile enough to allow them to plug-and-play as new developments emerge.

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http://www.themcommercepro.com/news/34/uk-consumers-uneasy-on-mobile-payments-but-m-commerce-still-expected-to-grow/

OrgaNIsatION DEsIgN aND culturE

Whilst managers and directors in the retail industry feel confident that their organisation has adapted quite well or very well to the omni-channel challenges both on and offline, reality offers a different picture. Customers rate their experience online 5% better than in-store2. Having such a marked difference between customers’ experiences on and offline can only lead to a diluted brand message and further confusion for customers. With only a few store incentivisation programmes for

ImportanCe of Culture on SuCCeSS of omnI-CHannel approaCH

HaS tHe Culture of tHe organISatIon adapted to tHe omnI-CHannel CHallenge?

Retailers recognise that culture is important in the successful design and delivery of an omni-channel approach. The appreciation of culture as a driver of success in the push towards true omni-channel retail is an important cog in achieving competitive advantage in highly pressured markets.

cross channel selling, and online sales and social media being negligible parts of the sales mix, it is hard to justify such optimism.

the retail sector has traditionally had an appreciation of the benefits of strong and positive organisational culture: perhaps more than many other sectors. the drive for customer service excellence has typically been the motivator for that trend, but increasingly culture is seen as a cornerstone of all elements of the retail equation. Senior management has the power to ‘make it happen’ and must ensure that omni-channel models are in place to effectively reflect the industry’s positive attitude towards innovation and real structural change.

70% respondents

reported directly into the board

When devising their omni-channel strategy, retailers need to take the utmost care in the timing of changes to the structure of their sales teams: maintaining siloed sales channels will work only until a certain point. on the other hand, the emergence of new channels in an omni-channel context can drive retailers to merge teams too early, before such channels are profitable and before the operational and logistical elements of a business are fit for purpose to deliver such a cross channel service. retailers should be aware of the repercussions that deep organisational changes have to other areas of their business.

For retailers to be able to implement a new evolutionary strategy effectively, the omni-channel function must be represented on the company’s board. Only with board visibility can real change happen and the value of omni-channel activity to commercial success be recognised.

2 http://econsultancy.com/uk/blog/11255-online-retailers-deliver-a-better-customer-experience-than-high-street-stores-report

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8614 5010

40Not important

Important

8614 5010

40Very well

Quite well

Not very well

http://econsultancy.com/uk/blog/11255-online-retailers-deliver-a-better-customer-experience-than-high-street-stores-report

BEst PractIcE

In identifying operational benchmarks that illustrate best practice our research highlighted three key themes:

the ability to provide a seamless customer experience, regardless of point of sale, channel or technology

the consistency of high customer service levels across all touch points

the uniformity of the brand and thereforepublic perception

1.2.3.SuB-SeCtor demonStratIng InduStrY BeSt praCtICe

grocery

Fashion/sport/Footwear

general Merchandise

Telecommunications

entertainment

department stores

32%

24%

24%

12%

4%

4%

While there is no clear category leader established in industry best practice, organisations that are regarded as clear examples of best-practice include Burberry – renowned for its ambitious digital endeavours – and John lewis, for the strength of its cross-channel logistics and customer service behaviours.

tesco.com’s gatwick shopping wall is another example of successful innovation in omni-channel retail. With what is currently one of the most successful supply chain strategies across the industry, fashion retailer next ensures the same levels of customer experience across all channels- physical stores, online stores, mobile apps, telephone sales. With omni-channel best practice the retailer’s reputation and ongoing relationship with its customers is enhanced and greater customer spend encouraged.

general Merchandise, department stores and Telecommunications fi rms are perceived to be trailing the fi eld.

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OmNI-cHaNNEl skIlls gaPs

Omni-channel is the new retail battleground, and best practice is emerging at the speed of light: the pace and scale of progress means that signifi cant and potentially threatening skills gaps are created, requiring developmental action to bring teams and divisions up to grade.

the lack of specifi c development plans in place to tackle best-practice skills gaps is a real concern for organisations looking to keep apace in a very dynamic and volatile market environment like the retail industry.

as with any sector moving rapidly, it’s extremely diffi cult to fi nd and allocate time and budget to improve internal skills at the same time as attempting to import new talent from the wider market.

leaders must look outside of retail to get a balance of skills to build a best in class function. Sectors such as financial Services and fmCg can bring insights into customer experience.

the biggest gap in required skills to succeed in the evolving world of retail is ecommerce trading. more traditional functions including buying and merchandising have been developed across the retail industry with courses and formal training, but also considerable in-house programmes.

Courses such as the mSc in Internet retailing and International fashion retailing (multichannel marketing) mSc are aimed at providing a wider understanding of all aspects of internet retailing, from web to marketing to supply chain management and logistics. more education and training programmes are being created across different sectors to equip new entrants in the job market and professionals alike with the creative, critical and professional skills necessary to tackle omni-channel retailing. retailers must make sure that the next wave of talent coming through the industry is more prepared and should therefore support such education programmes, as well as promote vocational training among their staff.

It is now imperative that organisations address their succession planning and talent management by investing in their internal capability to build a future pipeline, not only for the organisation itself, but the industry as a whole. In doing so, not only will the retention of staff, but also the attraction of new talent be made easier, as organisations actively show an interest in investing in internal talent and in the future of the business. When choosing to develop skills within organisations, the industry must take action and work together to start to think strategically and for the long term.

WHat CruCIal SKIllS are mISSIng In Your team?

tHe maJorItY of leaderS Had leSS tHan 5 YearS’ eXperIenCe WorKIng In onlIne retaIl.

< 5 years experience

47.3% ecommerce Trading15.7% customer Insight10.5% International ecommerce10.5% cRM/data Management

talENt attractION aND rEtENtION

Over the last few years the economic downturn has led to a number of changes and restructures within organisations. With an increase in redundancies and employees ‘in fear’ for their jobs, organisations have found that it has been easier to retain the staff they have. But as the economy begins its recovery and starts to grow, organisations are at a far greater risk of losing their employees to competitors who are willing to compensate and reward more aggressively.

organisations are also struggling to attract future top talent; therefore it is now more important than ever that talent is nurtured from within the organisation.

OF ORgaNIsaTIONs had expeRIeNced dIFFIculTIes IN aTTRacTINg aNd hIRINg TaleNT They Need

aVeRage TeNuRe IN leadeRshIp Is less ThaN 2yRs

saId They WeRe dIssaTIsFIed WITh TheIR cuRReNT ROle

OF leadeRs saId They WeRe acTIVely lOOkINg FOR OppORTuNITIes

RespONdeNTs aRe BeINg cONTacTed aT leasT ONce a Week RegaRdINg OppORTuNITIes

61.5%

< 2yrs

35%

63.6%

once a week

the level of job satisfaction among e-commerce and multi-channel directors is astonishingly low. omni-channel, although an important function, is still uncommon on a leadership board, despite its pivotal role in being one of the few channels to enable business growth.

Where before Ceos felt safe in the knowledge that their omni-channel functions were largely fit for purpose, the reality is that this oversight could see organisations losing some of their best talent, leaving the organisation very exposed at a time when their omni-channel function should be thriving and driving growth.

C E O S ARE AT RISK OF LOSING THEIR MOST

SENIOR LEADERS IN THIS FUNCTION TO COMPETITORS

retailers need to take action to counter this drift, explore the possibility of long-term incentive plans and the possible progression to a main board position.

attraction and retention programmes have to be embedded in the organisation’s overall strategy in order to entice and keep hold of leading talent, especially for omni-channel expertise.

Retailers must realise that omni-channel leaders are the most critical talent in the business at the moment, as they are crucial to growth. Retailers need to spend time to understand what motivates this vital part of their human capital or they will lose it at what is one of the most critical times for the success of their business.

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cOmPENsatION & INcENtIVEs

The new world of economic austerity has forced the retail industry to drastically change in its approach to the way it interacts with customers. Behind the scenes, those changes have impacted the internal functions of retail businesses in a similarly drastic manner.

SalarIeS for multI-CHannel leaderS

< £100k

£101-120k

£121-140k

£141-160k

£161k+

maXImum potentIal BonuS for multI-CHannel leaderS

0%Bonus

1-20%Bonus

21-40% Bonus

41-60% Bonus

61-80% Bonus

81-100% Bonus

28.6%

21.4%

14.3%

14.3%

7.1%

7.1%

less than 50% of respondents felt they could expect to achieve their bonus in the next 12 months

< 1% 1/2

less than 1% indicated that online/digital performance is specifi cally recognised as a signifi cant part of their compensation package

Close to half of respondents indicated their bonus was based upon a mix of individual and company performance

While the initial stages of the recession brought rapid and wide-reaching cost-cutting to the top of the agenda, the second and third stages of the downturn have placed the onus on creating the right teams to deliver on new strategies – with a strong focus on the digital space.

the talent pool within the omni-channel space is scarce and ‘over-mined’.

most e-commerce, multi-Channel and digital directors expect either no bonus, or a bonus of below 20%, mostly because target metrics are linked to group performance rather than individual channel growth.

over two thirds argued that their bonus should have a stronger link to online/digital performance therefore expressing an interest in being recognised specifi cally for the work, impact and value they drive for the organisation through the omni-channel function.

With costs pared back to the limit, the retail industry must get the right online talent and get the most out of it when they do get it. there is a need to benchmark omni-channel talent in retail against other industries where it is more developed and much better rewarded, such as financial Services.

low compensation, together with the lack of board responsibility are the main causes of apathy or even dissatisfaction among omni-channel professionals.

The retail industry is putting its future growth on the line by not recognising the value of the omni-channel function and the instability caused by under-compensation.

9%

21%

25%

32%

13%

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BonuS aCHIeVed In laSt 12 montHS

0%Bonus

1-20%Bonus

21-40% Bonus

41-60% Bonus

61-80% Bonus

81-100% Bonus

43%

19%

17%

3%

9%

5%

cOmPENsatION & INcENtIVEs continued

more frequently we are identifying the need for fl exibility in packages for different people and at different stages of a company’s lifecycle. It is essential that compensation structures are made more innovative by combining base salaries with incentive bonuses and, wherever possible, balancing cash and equity/options to compete with private equity owned businesses.

Retailers must create compensation, incentives and benefi ts packages that attract, motivate and retain valued employees – particularly top digital talent – if they want to forge ahead in a challenging market.

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BENEFIts, rEWarDs aND satIsFactIONThere is a clearly defi ned gap between what digital employees want from their incentives and benefi ts, and what they are offered by their employers. What omni-channel leaders would like from a benefi ts package is very different from the traditional benefi ts offered such as private medical insurance, pension or car allowance. aVaIlaBle InCentIVeS/BenefItS

28.5%share option scheme

equity stake

long term incentive (lTIp) plan

cash based incentive based on fi n. perf

private medical insurance

car allowance

contributory pension

personal performance bonus

21.4%

7%

21.4%

57.1%

57.1%

57.1%

57.1%

moSt attraCtIVe InCentIVeS/BenefItS

share option scheme

equity stake

long term incentive (lTIp) plan

cash based incentive based on fi n. perf

private medical insurance

car allowance

contributory pension

personal performance bonus

35%

57.1%

21.4%

21.4%

7%

7%

21.4%

93%

employees across all industries are viewing their employment status differently from the way employees viewed it in the past. these are the times of the ‘transient employee’: the days of the gold watch after 30 years of service with the same fi rm are long dead. omni-channel professionals are an entrepreneurial group, who would like to be rewarded for the direct value they bring to the company and how they contribute to the growth of the business through omni-channel. the gap between available benefi ts and desired rewards is an obvious threat to organisations’ ability to retain talent, as well as impacting their ability to attract new employees.

While there are certainly challenges creating packages that are ‘ideal’ for an employee and still feasible and profi table for the employer, retailers must identify and close the gaps quickly and effectively.

remuneratIon SatISfaCtIon

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extremely satisfi ed

dissatisfi ed

satisfi ed

858

34

remuneration has become a highly competitive and contentious issue in the retail sector. part of that competitiveness is down to the aggressive and direct targeting of top talent: headhunting the best of the best from direct competitors has been a tool to drive retailers’ own strategies, as well as unsettling and distracting rival fi rms.

a third of e-commerce, multi-Channel and digital directors are not satisfi ed with their level of remuneration, making them ‘at risk’ as a potential retention issue. In fact, even those ‘satisfi ed’ with their remuneration will be relatively easy potential targets for prospective employers.

there is clearly a shortfall in terms of overall remuneration in the omni-channel space, which is likely to become a battleground as rare skills are aggressively pursued.

With omni-channel one of the most competitive talent spaces of all, retailers must create benefi t and reward packages that serve not only to attract, but also to retain the best talent in the face of approach from competitors.

BENEFIts, rEWarDs aND satIsFactION continued

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retention has always been a challenging issue in the retail space, and omni-channel professionals are no exception. respondents indicated a wide range of retention motivators, with no single conclusive winner. However, both a higher base salary and clear career progression to board score equally, demonstrating the possibility of securing staff through main board positions.

The retail industry must make sure that standard company benefi ts are tailored specifi cally for talent within omni-channel to aid retention. That puts extra pressure on the company’s reward strategy, and in many cases might go directly against rigid compensation structures already in place. however if no changes are implemented, organisations risk losing critical talent to more fl exible and commercially minded competitors.

higher bonus

equity/share options

strong employer brand

higher base salary

clearer career progression to board

lTIp

More personal development

e-commerce/Multi-channel bonus

More investment in omni-channel

2012

121616

88

47

retentIon

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kEY FINDINgs aND cONclusIONs

realItY CHeCK

organISatIonal StruCture and Culture

SKIll gapS

talent retentIon

JoB SatISfaCtIon

• 70% of respondents reports into board and 16% said that they would like a clear progression to a board position

• organisational culture, and its alignment to omni-channel strategies, is crucial to success

• the majority of leaders that responded to our survey had less than 5 years experience working in online retail, substantiating the apprehension for skill gaps in the industry

• omni-channel employees recognise the need for rapid up-skilling to keep up with the pace of change and would be incentivised by specifi c learning and development opportunities around technology and customer service

• 61.5% organisations had experienced diffi culties in attracting and hiring talent

• respondents are being contacted at least once a week regarding opportunities

• average tenure in leadership is less than 2yrs

• In order to retain the most talented individuals within omni-channel functions, retailers will have to provide improved remuneration beyond the base salary, particularly bonuses focused on the specifi c channel distribution and share options

• 35% said they were dissatisfi ed with their current role

• 63.6% of leaders said they were actively looking for opportunities

• remuneration packages are not currently doing enough to motivate and retain leadership in this area

• 71.4% have no store incentivisation programme in place for cross channel sales

• 52.4% believed they had too many stores in their portfolio

• 57% organisations do not use order and collect currently

Retailers are facing some real and immediate risks affecting their ability to implement a long-term omni-channel strategy. The biggest and most impending threat to growth and stability is not technology or marketing, but talent retention. With omni-channel currently being one of the few growth channels of any retail business, the fact that so many organisations are out of touch with how they can retain and attract staff is worrying.

omni-channel leaders would prefer to steer away from the traditional benefi ts package, with the majority opting for a package that is linked back more directly to the value and growth they drive. even though omni-channel has been identifi ed as a key growth function, compensation appears to be behind the norm compared to other functions within the organisation with as much, or in some cases less, responsibility and accountability. retailers must realise that this skillset is strategically important for the growth of their business and act accordingly, by establishing a separate reward and benefi ts package focused on this channel.

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although remuneration plays a major part in both the attraction and retention of talent, career progression to a board position plays just as important a role. this gives retailers the opportunity to close the gap with traditional compensation and work towards a new proposition for winning the war for talent. through awarding operating or main board positions, retailers can provide further scope and wider responsibility, potentially offering a combination of scale and package leading to an increase in job satisfaction and increased tenure. the link to job security for the employer is through making a little more room at the board table.

With the omni-channel function represented at board level, better decisions will be made. Having people who can understand, tackle and explain this emerging customer behaviour to the rest of the business is key to all strategic steps for growth. examples like martha lane fox, co-founder of lastminute.com and now Chair of the government digital Service advisory Board, Wade-gery on marks and Spencer’s board and macy’s ‘Chief omni-channel offi cer’ robert Harrison, can help the industry see how key talent can be incorporated into a board structure.

Succession planning, training and development are also key to overcoming omni-channel skills gaps as well as creating a future talent pipeline in the industry. If nothing is done, the retail industry faces a fate of talent and skill gaps that will turn into stumbling blocks to business growth.

If retailers sit back and do nothing to retain and attract staff, particularly within the omni-channel space, organisations will lose top talent to more commercially-minded organisations that are more proactive in addressing how omni-channel talent can and would like to be rewarded.

kEY FINDINgs aND cONclusIONscontinued

grEEN Park’s rEcOmmENDatIONs

carry out an organisational reviewThe review should ideally be led by the chief executive Officer and the human Resources director.

the review task force should answer the following questions:

• What is our anticipated channel mix in 1/3/5 years, according to our strategic plan?

• What is our current organisational structure and where are the clear skills/functional gaps?

• Where are the individual weaknesses? are there current post holders best placed to drive this particular agenda?

• What steps need to be taken in order to move from our current situation to where we want to be (gap analysis)?

• What is the current attitude to integrating digital channels in the mainstream business?

• What are the cultural obstacles?

• How can we get our business to embrace the new integrated approach?

introduce new performance measurement tools, competency frameworks and Key performance indicators to encourage best practice behaviours and employees’ engagement with the omni-channel strategy of the business

develop a new reward and retention strategy in line with performance framework. many employees in these channels believe that linking pay directly to the performance of the respective channel would be highly motivational

adopt a tailored approach to pay and reward strategies in order to address issues of employee dissatisfaction and increasing attrition rates

devise and implement training development plans

lobby for an industry-wide approach to build education programmes supported by the British retail consortium

Build a balanced and best-in-class team to include talent from areas outside of retail

ask yourself: “if your Omni-channel director left tomorrow, what would you do?”

In light of the results of our survey of omni-channel leaders, we have compiled our professional recommendations for retailers to attract and retain talent and for their business to thrive.

1.

2.

3.

4.

5.

6.

7.

8.

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aBOut grEEN Park

green park is one of europe’s fastest growing suppliers of executive search, interim management and board advisory solutions across the private and public sectors. since inception in 2006, we have achieved six years continuous growth, and been nominated and won many national and industry awards spanning a range of specialisms, industries and disciplines. In 2010 we were named the uk’s 19th fastest growing private company in the sunday Times Fast Track 100 and have been recognised as a top 10 interim management supplier by the Institute of Interim Management. additionally, Recruiter Magazine has named us one of the industry’s top three recruitment businesses in both 2011 and 2012.

green Park’s retail Practicegreen park’s retail practice collectively boasts more than 50 years within the recruitment industry across executive search, management consultancy and interim services. We have longstanding partnerships with a number of uK and international brands spanning geographies, categories and operating models. We have a strong track record of supporting the operating boards of a variety of retailers and have built senior management teams on behalf of a selection of private equity houses.

our practice has worked alongside these organisations to acquire, develop and retain best in class talent across functions including digital, e-commerce, m-commerce and Buying & merchandising, in addition to the corporate functions such as finance, Hr, It and operations in the uK and internationally. We have partnered with organisations to attract Ceos, Cfos, Coos, non-executive directors and Chairs. In addition, we have also been developing a number of thought leadership pieces including a report written in collaboration with Henley Business School and a study of retail expansion into China. In 2012 we were proud to be corporate sponsors of the retail Week power list.

contact ussteve Baggi, co-Foundergreen park 15 portland place london W1B 1pt

t: 0207 399 4301e: [email protected]

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Documents

Omni-channel Leadership White Paper - Feb 2013