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Looking for development areas in the head-office
07.05.2019

Usually in search of development zones, the company arranges audits of final performers. In the case of retail networks, these are retail stores. However, the low efficiency of business processes is not always due to the poor performance of line employees. Often the reason is in the top tier.

Let's find the real reason

Imagine the typical situation for a retail network in preparation for a marketing campaign. The marketing department has prepared all the necessary materials and handed them over to the logistics department. The work is done and it remains to wait for the results. But there are only a few days left until the start of the campaign, and the stores are not prepared: showcases are not decorated, advertising is not launched, promotional materials are not used. The conclusion from all this is that the store managers didn't perform their job. But they deny it.

The trial begins and it turns out that when the marketing staff handed over the design materials to the logistics department, they did not attach a store distribution map, which should indicate location, description and quantity. "Logistics" just handed over the materials to the warehouse for onward shipment, where they are still located, because no one knows what to do with them.

The situation could be different. The boxes could have been split equally and sent across the entire retail network. In any case, the result is deplorable - the stores are not ready to hold a marketing campaign, but it is not the managers' fault, but the marketing department's.

Solving the problem

Let's continue the example with the lost design elements. The solution to the problem is usually as follows:

  1. The audit reveals that the stores are not ready for the promotion. The reason given by the manager is the lack of promotional materials.

  2. This information is passed on to the regional managers.

  3. Regional managers report the problem to the head of retail for the entire retail network.

  4. Retail manager redirects the problem to the logistics division.

  5. “Logistics” reports that all materials have been delivered to the warehouse on time.

  6. The warehouse reports that the design elements were received without proper documentation of the distribution between the stores.

  7. The marketing department corrects its mistake.

As a result, a lot of time and resources have been spent on finding out the reasons. In the meantime, everything could be resolved in one day if they used MD Audit.

Sending reports to responsible persons

In large companies, there are cases of shifting the responsibility to each other between departments. We have already shown this by the example of design materials, when “retail” and "marketing" accuse “warehouse” of delivery delay. Consider another example.

During the store audit it turns out that the internal radio does not broadcast current promotions and the screens show videos promoting last year's collection. In this case, most often the store manager is appointed “guilty” for not keeping track of the current promotional activity of the company. This may indeed be the case, or maybe the reason is that the store just didn't get the right audiovisual content from the marketing department.

In order to avoid such disputed situations, it is necessary to differentiate the audits by area of responsibility. Then their results will be immediately available to the right division of the company. For example, the audit results of the readiness of stores for marketing campaigns shall be delivered to the marketing department, the inspection of the IT-system — to the technical department, and the accounting - to the financial service.

Using MD Audit system you will solve 2 tasks at once:

  1. CEO will see the whole picture of the company's operations across the entire management hierarchy. This will help to find growth areas and modernize business processes for greater efficiency.

  2. The problem will be immediately known to the owner of the business process, and therefore, it can be solved with minimal time loss.

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