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GE’s Tool Kit: How to Foster Innovation and Operational Improvement within a Retail Organization

Jonathan Wainberg Vice President GE Retail Finance Mike LaChapelle Vice President GE Commercial Finance

What is Access GE?
At the Customer, For the Customer (ACFC)

“The goal of our ACFC initiative is to bring the entire ‘GE toolkit’ to our Customers to help ensure their success..whatever GE capabilities are most important to them and will have the biggest impact on their bottom line.”
Jeffrey Immelt Chairman and CEO, GE

Our Toolkit Access…GE’s Tools & Methodologies A set of game changing tools and process improvement methodologies proven successful within GE…and with customers • Collaborative Problem Solving (Work-Out) • Change Management (CAP) • Acquisition Integration • Strategic Growth Workshop • GE Learning Center (Crotonville) CFO Day Acquisition Integration Roundtable Leadership for Customers • Team Development • Innovation Facilitation Tools • Strategic Planning Essentials • Lean Overview / Simulation Kaizen Events including 5S Value Stream Mapping SMED / Quick Changeovers • Six Sigma Executive Overview / Simulation Green Belt Training Project Coaching • Process Mapping • Project Management Training .

Health. Forest Products. Transportation Emerging Markets China India Eastern Europe Russia Brazil GE Initiatives Growth as a Process Net Promoter Score Ecomagination Globalization Enterprise Selling . Retail.Our Toolkit Access…GE’s People & Experience Access GE experts to leverage our industry breadth & functional knowledge Function / Process HR Performance Management Integrity & Diversity Finance . Safety New Product Introduction GE Operating Rhythm Shipping & Logistics Sales Force Effectiveness IT & Digitization Shared Services – Payroll.Treasury & Hedging Sourcing & Outsourcing Call Center Management Environmental. Rail. Chemicals. Construction. Media. Food/Beverage. T&L Marketing & Branding GE Core Businesses Infrastructure – Aircraft. Manufacturing. Healthcare. Steel. Lighting Healthcare NBC Universal GE Money Commercial Finance *Operations in 100 countries Staff Industry Expertise Aerospace. Auto. Energy Industrial – Appliances. Communications and Entertainment.

Jewelry. Health & Personal Care . Apparel. Consumer Electronics. Sporting Goods. Home Furnishings.GE Retail Partners Luxury. Auto/Tire. Discounters.

Retail ACFC Examples Customer Retail Drug Store Chain Electronics Retailer Sporting Goods Computer Retailer Furniture Retailer Department Store Chain Department Store Chain Sporting Goods Department Store Chain Activity Increase Customer Traffic Improve Order-to-Fulfillment Process Implement Warehouse Management System Project Management Training Business Continuity Planning HR/Benefits Communication Process Internal Store Communications Selling Skills Increase Inventory Turns .

Exceeded expectations.Store Operations Manager "Lots of value taken from this.ACFC Snapshot: Improved Store Communications Customer Department Store Chain Customer Issues and Objectives • Redesign Store Communications to better serve Store Managers and Staff • Improve Timeliness and Accuracy of Communication • Reduce Repetition." -.Store Manager "Great way to raise/hash through the issues/opportunities quickly. understandable. Focus on Critical Items ACFC Engagement • GE facilitated a 1 ½ day Work-Out on Store Communications Customer Benefit • Streamlined process for Store Communications designed around needs of Store Managers and Staff "Work-Out was a great tool to produce meaningful solutions to a complex problem in a simple way. well thought out. Really enjoyed the session. Guardrails help maintain structure to conversation" -.Brand Director . Very good tool! Over exceeded my expectation" -. Looking forward to sharing this with my peers.Buyer "Actionable." -.

“ – Director of Services...extremely professional and you did a very good job calibrating the pace and level of detail to the audience and situation.“ . Retail "Very well done.Director of Business Transformation "Greatly exceeded expectations..“ – Director of Retail Transformation .ACFC Snapshot: Change Acceleration Process Customer Electronics Retailer Customer Issues and Objectives • Learn about GE’s Change Acceleration Process (CAP) • Apply CAP Tools to In-Store Services Reorganization/Rebranding Initiative • Ensure Associates’ Support for Initiative ACFC Engagement • GE facilitated a 2 day CAP Session Customer Benefit • Detailed Action Plan for Successful Launch of Rebranding Initiative "Very valuable . Facilitators had great insight into our goals and mission.learned a great deal that I will apply.

Senior VP Manufacturing & Quality Control "Liked the structure. presented very well. Glad to see we did this.Senior Manager. interesting info that was never boring." . Merchandise Planning and Allocation "Insightfully facilitated. tools.VP Merchandise Planning and Allocation "Process is excellent for producing workable objectives" .ACFC Snapshot: Inventory Management Customer Specialty Retailer Customer Issues and Objectives • Learn about GE Best Practices in Inventory Management • Develop Action Plan for Inventory Reduction • Develop Experience in Team Based Problem Solving ACFC Engagement • GE facilitated a 2 day Work-OutTM on Inventory Management Customer Benefit • Clear plan to tackle $40 million Inventory Reduction target "Very well organized.Executive Vice President/CIO . Thanks" . and the ling to a real opportunity for my team and company" . useful techniques. good real-world analogies.

ACFC Snapshot: Increased Customer Traffic Customer USA Drug Customer Issues and Objectives • Improve Customer Service • Increase Customer Traffic ACFC Engagement • GE facilitated and supported USA Drug through the development of a customer service program that included additional training. We expected our lenders to be focused on our performance. but GE went above & beyond. sharing best practices.” John Trainor USA Drug. They actually helped us improve our operating performance. The initiative delivered a tremendous level of value and helped drive our business growth. SVP Finance . and reward and recognition programs • The customer service program was rolled out in 18 stores for 14 months Customer Benefit • Same store customer count up 3.4% • Prescription Sales Growth rate increased 1. measurement systems.6X “We were very impressed with GE’s ACFC program.

Company Highlights • Tourneau is the world’s leading retailer of luxury watches • We operate: – – – – 34 stores in 13 states Watchgear: 8 stores in 4 states Outlets: 3 in 3 states 6 stores in the Caribbean and China • Each Senior management member has at least 20 years retail experience with an average of 8 years with the Company .

e.White Plains Backroom Project • Innovation Workshop – Summer 2007 . • Lean .Tourneau Projects with GE GE Tools i.

White Plains Backroom Project Objective: Streamline Back Office Processes and Organize Record Keeping in Tourneau’s White Plains Store .GE Tool: Lean Lean.

Tourneau “Lean” 5S Event: Store Back Office .

Standardize – Identify work standards 5. Simplify – A place for everything 3. Sort – Eliminate unneeded items 2.What is 5S? 1. Shine or Sweep – Keep the workplace clean 4. Sustain or Self Discipline – Keep it going! .

Before .

During .

After .

Details .

Tourneau “Lean” 5S Event: Store Back Office Results • Unnecessary Paperwork and Promotional Items Eliminated • Space Freed Up • Retained Items Labeled for Easy Retrieval and Timely Disposal • Paperwork Handling Processes Improved .

GE Tools: Innovation Workshop June 2007 Held at GE Global Training Center in Crotonville. Sporting Goods. utilized Customer Journey Mapping tool • Generated new initiative creating unique Top Customer Reward program utilizing Vendor Incentives . NY • Interacted with other GE Retail Customers • Shared insights from different business models (Grocery. Furniture) • During break out session.

• ADOPTING A CURIOUS MINDSET • RINGSIDE • MAPPING CUSTOMER JOURNEYS • PROTOTYPING YOUR IDEAS • HYPOTHESIS MAPPING • DEVELOPING INNOVATION TRAITS • INNOVATION ENVIRONMENTS • INNOVATION ARCHETYPES • UNLOCKING INNOVATION POTENTIAL (THE RIPPLE EFFECT) Trace the potential impact of an idea to get ahead of the changes it spawns. Ask the simple questions that challenge our most basic assumptions about the world around us. Discover the mindset and behaviors essential to effective innovation. • WHAT BOX ARE YOU IN? • DEFINING AND CLASSIFYING INNOVATION • INNOVATION FRAMEWORK Re-define your context to find new customers and markets. Learn the nine essential roles in innovation. Unstick your thinking and get clearer about how to test and evaluate your idea. Look at the customers’ entire experiences to find ways to create value at every touchpoint. Sharpen your hypothesis and determine the factors that will lead to success.GE Innovation Tools & Exercises • INNOVATION ASSUMPTIONS Discuss the common assumptions about innovation to start a dialogue. Explore the types of environments that will best reinforce your innovation goals. Explore customers’ lives and motivations to uncover unmet needs. . • CUSTOMER ECOSYSTEMS • CUSTOMER PROFILING Explore various types of innovations to clarify your own innovation goals. Map the system of players in the industry to innovate more holistically. Diagnose your strengths and weaknesses on innovation traits. and who in your organization can play each role. Look at how major trends are affecting our business and providing new opportunities.

.MAPPING CUSTOMER JOURNEYS LOOK AT THE THREE BASIC JOURNEY STAGES TO IDENTIFY OPPORTUNITIES TO CHANGE THE STATUS QUO AND ENHANCE THE CUSTOMER EXPERIENCE.

service. repurchase.Exploring the customer’s journey to identify innovation opportunities. and share our experiences with others. Each provides an opportunity to change the status quo and tap into customers’ unmet needs. COMMITMENT We choose and we buy specific goods. knowledge. USAGE We use. AWARENESS We become aware and we learn about a product. enjoy. there are three basic stages to every journey. • While no two experiences are the same. or services. . or brand.

Examples of customer journey AWARENESS By focusing on universities. customizable PC s. USAGE Dell backs up their purchases with 24 hour online and phone support. COMMITMENT Dell wanted to offer customers cheap. and onsite visits for the problems they can’t solve over the phone. Dell became widely used and known by students who spread word about the brand to their friends and family. so they reinvented how consumers select and purchase by selling directly through an online portal. .

– Describe the customer’s current experience and its anomalies or points of frustration. – Brainstorm what customers desire. what is possible. – Identify which ideas could benefit both types of customers. and what role your company can play. .CUSTOMER JOURNEY MAPPING – Identify the customer (business customer or end consumer segment).

At the Customer. For the Customer Growing with Our Retail Partners .