SlideShare une entreprise Scribd logo
1  sur  18
Télécharger pour lire hors ligne
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
3
4
5
7
8
9
10
11
13
15
17
18
2
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 profile
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 benefits 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 first 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 officer’.trailblazing
retailers will no doubt reap the benefits of a new
structure that will deliver sustainable performance
improvement through people.
Steve Baggi, Co-Founder
3
Omni-channel leadership
The hidden risk facing retailers
4
Omni-channel leadership
The hidden risk facing retailers
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 fickle
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 findings
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 benefits 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 flexibility 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
first 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%
5
Omni-channel leadership
The 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 traffic and
revenues. although it has yet to determine the
exact influence mobile has on offline sales,
John lewis has also used devices to link its
online and offline 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 3YearS
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 first 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 flexibility 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 office processes and consistency of
customer experience. Retailers must ensure
organisational design and infrastructure are
flexible and agile enough to allow them to plug-
and-play as new developments emerge.
6
Omni-channel leadership
The hidden risk facing retailers
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
7
Omni-channel leadership
The hidden risk facing retailers
86
14 5010
40Not important
Important
86
4 5010
40
Very well
Quite well
Not very well
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 therefore
public 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 firms are perceived to
be trailing the field.
8
Omni-channel leadership
The hidden risk facing retailers
9
Omni-channel leadership
The hidden risk facing retailers
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 significant and potentially
threatening skills gaps are created, requiring
developmental action to bring teams and
divisions up to grade.
the lack of specific 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
difficult to find 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
InYour team?
tHe maJorItY
of leaderS Had
leSS tHan 5YearS’
eXperIenCe
WorKIng In
onlIne retaIl.
< 5 years
experience
47.3% ecommerceTrading
15.7% customer Insight
10.5% International ecommerce
10.5% 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
hiringtalent
they need
Averagetenure
in leadership is
lessthan 2yrs
saidthey were
dissatisfied
withtheir
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.
10
Omni-channel leadership
The hidden risk facing retailers
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 specifically recognised
as a significant 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 specifically 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%
11
Omni-channel leadership
The hidden risk facing retailers
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
flexibility 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 benefits packages that attract,
motivate and retain valued employees –
particularly top digital talent – if they want
to forge ahead in a challenging market.
12
Omni-channel leadership
The hidden risk facing retailers
BENEFIts, rEWarDs
aND satIsFactION
There is a clearly defined gap between what
digital employees want from their incentives
and benefits, and what they are offered by
their employers.What omni-channel leaders
would like from a benefits package is very
different from the traditional benefits 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 fin. 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 fin. 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
firm 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 benefits 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 profitable for the employer, retailers must
identify and close the gaps quickly and effectively.
remuneratIon SatISfaCtIon
13
Omni-channel leadership
The hidden risk facing retailers
extremely
satisfied
dissatisfied
satisfied
8
58
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 firms.
a third of e-commerce, multi-Channel and digital
directors are not satisfied with their level of
remuneration, making them ‘at risk’ as a potential
retention issue. In fact, even those ‘satisfied’ 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 benefit
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
14
Omni-channel leadership
The hidden risk facing retailers
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
benefits are tailored specifically 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 flexible
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
20
12
12
16
16
8
8
4
7
retentIon
15
Omni-channel leadership
The hidden risk facing retailers
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 specific
learning and development opportunities around
technology and customer service
• 61.5% organisations had experienced
difficulties 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
specific channel distribution and share options
• 35% said they were dissatisfied 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 benefits 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 identified 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
benefits package focused on this channel.
16
Omni-channel leadership
The hidden risk facing retailers
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 officer’ 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 cONclusIONs
continued
Green Park’s recommendations
Carry out an organisational review
The 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.
17
Omni-channel leadership
The hidden risk facing retailers
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 Practice
green 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 us
steve Baggi, co-Founder
green park
15 portland place
london W1B 1pt
t: 0207 399 4301
e: steve.baggi@green-park.co.uk
18
Omni-channel leadership
The hidden risk facing retailers

Contenu connexe

Dernier

The 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyThe 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyTinuiti
 
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779Best VIP Call Girls Noida Sector 51 Call Me: 8448380779
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779Delhi Call girls
 
Supermarket Floral Ad Roundup- Week 17 2024.pdf
Supermarket Floral Ad Roundup- Week 17 2024.pdfSupermarket Floral Ad Roundup- Week 17 2024.pdf
Supermarket Floral Ad Roundup- Week 17 2024.pdfKarliNelson4
 
The 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyThe 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyKatherineBishop4
 
Film= Dubai Call Girls O525547819 Call Girls Dubai Whsatapp
Film= Dubai Call Girls O525547819 Call Girls Dubai WhsatappFilm= Dubai Call Girls O525547819 Call Girls Dubai Whsatapp
Film= Dubai Call Girls O525547819 Call Girls Dubai Whsatappkojalkojal131
 
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779Best VIP Call Girls Noida Sector 50 Call Me: 8448380779
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779Delhi Call girls
 
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779Best VIP Call Girls Noida Sector 55 Call Me: 8448380779
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779Delhi Call girls
 
Top Rated Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...
Top Rated  Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...Top Rated  Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...
Top Rated Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...Call Girls in Nagpur High Profile
 
Dubai Call Girls O525547&19 (Asii) Call Girls Dubai
Dubai Call Girls O525547&19 (Asii) Call Girls DubaiDubai Call Girls O525547&19 (Asii) Call Girls Dubai
Dubai Call Girls O525547&19 (Asii) Call Girls Dubaikojalkojal131
 
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call Girl
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call GirlIndian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call Girl
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call GirlAroojKhan71
 

Dernier (10)

The 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyThe 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing Study
 
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779Best VIP Call Girls Noida Sector 51 Call Me: 8448380779
Best VIP Call Girls Noida Sector 51 Call Me: 8448380779
 
Supermarket Floral Ad Roundup- Week 17 2024.pdf
Supermarket Floral Ad Roundup- Week 17 2024.pdfSupermarket Floral Ad Roundup- Week 17 2024.pdf
Supermarket Floral Ad Roundup- Week 17 2024.pdf
 
The 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing StudyThe 15 Minute Breakdown: 2024 Beauty Marketing Study
The 15 Minute Breakdown: 2024 Beauty Marketing Study
 
Film= Dubai Call Girls O525547819 Call Girls Dubai Whsatapp
Film= Dubai Call Girls O525547819 Call Girls Dubai WhsatappFilm= Dubai Call Girls O525547819 Call Girls Dubai Whsatapp
Film= Dubai Call Girls O525547819 Call Girls Dubai Whsatapp
 
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779Best VIP Call Girls Noida Sector 50 Call Me: 8448380779
Best VIP Call Girls Noida Sector 50 Call Me: 8448380779
 
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779Best VIP Call Girls Noida Sector 55 Call Me: 8448380779
Best VIP Call Girls Noida Sector 55 Call Me: 8448380779
 
Top Rated Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...
Top Rated  Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...Top Rated  Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...
Top Rated Pune Call Girls Talegaon Dabhade ⟟ 6297143586 ⟟ Call Me For Genuin...
 
Dubai Call Girls O525547&19 (Asii) Call Girls Dubai
Dubai Call Girls O525547&19 (Asii) Call Girls DubaiDubai Call Girls O525547&19 (Asii) Call Girls Dubai
Dubai Call Girls O525547&19 (Asii) Call Girls Dubai
 
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call Girl
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call GirlIndian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call Girl
Indian Call Girl In Dubai #$# O5634O3O18 #$# Dubai Call Girl
 

En vedette

2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by HubspotMarius Sescu
 
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPTEverything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPTExpeed Software
 
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage EngineeringsProduct Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage EngineeringsPixeldarts
 
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental HealthHow Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental HealthThinkNow
 
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfAI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfmarketingartwork
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024Neil Kimberley
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)contently
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024Albert Qian
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsKurio // The Social Media Age(ncy)
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Search Engine Journal
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summarySpeakerHub
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next Tessa Mero
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentLily Ray
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best PracticesVit Horky
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project managementMindGenius
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...RachelPearson36
 

En vedette (20)

2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot2024 State of Marketing Report – by Hubspot
2024 State of Marketing Report – by Hubspot
 
Everything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPTEverything You Need To Know About ChatGPT
Everything You Need To Know About ChatGPT
 
Product Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage EngineeringsProduct Design Trends in 2024 | Teenage Engineerings
Product Design Trends in 2024 | Teenage Engineerings
 
How Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental HealthHow Race, Age and Gender Shape Attitudes Towards Mental Health
How Race, Age and Gender Shape Attitudes Towards Mental Health
 
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdfAI Trends in Creative Operations 2024 by Artwork Flow.pdf
AI Trends in Creative Operations 2024 by Artwork Flow.pdf
 
Skeleton Culture Code
Skeleton Culture CodeSkeleton Culture Code
Skeleton Culture Code
 
PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024PEPSICO Presentation to CAGNY Conference Feb 2024
PEPSICO Presentation to CAGNY Conference Feb 2024
 
Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)Content Methodology: A Best Practices Report (Webinar)
Content Methodology: A Best Practices Report (Webinar)
 
How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024How to Prepare For a Successful Job Search for 2024
How to Prepare For a Successful Job Search for 2024
 
Social Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie InsightsSocial Media Marketing Trends 2024 // The Global Indie Insights
Social Media Marketing Trends 2024 // The Global Indie Insights
 
Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024Trends In Paid Search: Navigating The Digital Landscape In 2024
Trends In Paid Search: Navigating The Digital Landscape In 2024
 
5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary5 Public speaking tips from TED - Visualized summary
5 Public speaking tips from TED - Visualized summary
 
ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd ChatGPT and the Future of Work - Clark Boyd
ChatGPT and the Future of Work - Clark Boyd
 
Getting into the tech field. what next
Getting into the tech field. what next Getting into the tech field. what next
Getting into the tech field. what next
 
Google's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search IntentGoogle's Just Not That Into You: Understanding Core Updates & Search Intent
Google's Just Not That Into You: Understanding Core Updates & Search Intent
 
How to have difficult conversations
How to have difficult conversations How to have difficult conversations
How to have difficult conversations
 
Introduction to Data Science
Introduction to Data ScienceIntroduction to Data Science
Introduction to Data Science
 
Time Management & Productivity - Best Practices
Time Management & Productivity -  Best PracticesTime Management & Productivity -  Best Practices
Time Management & Productivity - Best Practices
 
The six step guide to practical project management
The six step guide to practical project managementThe six step guide to practical project management
The six step guide to practical project management
 
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
 

Omni Channel Leadership White Paper 2013

  • 1. OmNI-cHaNNEl lEaDErsHIP The hidden risk facing retailers
  • 2. 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 3 4 5 7 8 9 10 11 13 15 17 18 2 Omni-channel leadership The hidden risk facing retailers
  • 3. 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 profile 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 benefits 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 first 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 officer’.trailblazing retailers will no doubt reap the benefits of a new structure that will deliver sustainable performance improvement through people. Steve Baggi, Co-Founder 3 Omni-channel leadership The hidden risk facing retailers
  • 4. 4 Omni-channel leadership The hidden risk facing retailers 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 fickle 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 findings 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+
  • 5. 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 benefits 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 flexibility 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 first 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% 5 Omni-channel leadership The hidden risk facing retailers
  • 6. 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 traffic and revenues. although it has yet to determine the exact influence mobile has on offline sales, John lewis has also used devices to link its online and offline 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 3YearS 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 first 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 flexibility 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 office processes and consistency of customer experience. Retailers must ensure organisational design and infrastructure are flexible and agile enough to allow them to plug- and-play as new developments emerge. 6 Omni-channel leadership The hidden risk facing retailers
  • 7. 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 7 Omni-channel leadership The hidden risk facing retailers 86 14 5010 40Not important Important 86 4 5010 40 Very well Quite well Not very well
  • 8. 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 therefore public 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 firms are perceived to be trailing the field. 8 Omni-channel leadership The hidden risk facing retailers
  • 9. 9 Omni-channel leadership The hidden risk facing retailers 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 significant and potentially threatening skills gaps are created, requiring developmental action to bring teams and divisions up to grade. the lack of specific 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 difficult to find 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 InYour team? tHe maJorItY of leaderS Had leSS tHan 5YearS’ eXperIenCe WorKIng In onlIne retaIl. < 5 years experience 47.3% ecommerceTrading 15.7% customer Insight 10.5% International ecommerce 10.5% cRM/data Management
  • 10. 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 hiringtalent they need Averagetenure in leadership is lessthan 2yrs saidthey were dissatisfied withtheir 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. 10 Omni-channel leadership The hidden risk facing retailers
  • 11. 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 specifically recognised as a significant 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 specifically 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% 11 Omni-channel leadership The hidden risk facing retailers
  • 12. 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 flexibility 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 benefits packages that attract, motivate and retain valued employees – particularly top digital talent – if they want to forge ahead in a challenging market. 12 Omni-channel leadership The hidden risk facing retailers
  • 13. BENEFIts, rEWarDs aND satIsFactION There is a clearly defined gap between what digital employees want from their incentives and benefits, and what they are offered by their employers.What omni-channel leaders would like from a benefits package is very different from the traditional benefits 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 fin. 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 fin. 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 firm 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 benefits 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 profitable for the employer, retailers must identify and close the gaps quickly and effectively. remuneratIon SatISfaCtIon 13 Omni-channel leadership The hidden risk facing retailers extremely satisfied dissatisfied satisfied 8 58 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 firms. a third of e-commerce, multi-Channel and digital directors are not satisfied with their level of remuneration, making them ‘at risk’ as a potential retention issue. In fact, even those ‘satisfied’ 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 benefit and reward packages that serve not only to attract, but also to retain the best talent in the face of approach from competitors.
  • 14. BENEFIts, rEWarDs aND satIsFactION continued 14 Omni-channel leadership The hidden risk facing retailers 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 benefits are tailored specifically 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 flexible 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 20 12 12 16 16 8 8 4 7 retentIon
  • 15. 15 Omni-channel leadership The hidden risk facing retailers 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 specific learning and development opportunities around technology and customer service • 61.5% organisations had experienced difficulties 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 specific channel distribution and share options • 35% said they were dissatisfied 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 benefits 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 identified 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 benefits package focused on this channel.
  • 16. 16 Omni-channel leadership The hidden risk facing retailers 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 officer’ 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 cONclusIONs continued
  • 17. Green Park’s recommendations Carry out an organisational review The 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. 17 Omni-channel leadership The hidden risk facing retailers
  • 18. 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 Practice green 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 us steve Baggi, co-Founder green park 15 portland place london W1B 1pt t: 0207 399 4301 e: steve.baggi@green-park.co.uk 18 Omni-channel leadership The hidden risk facing retailers