Introduction About GAP Inc.

HISTORY (1)

1970 1983
Opened second store in Bought Banana Republic &
San Jose, California turned inyo higher-end brand

1969 1973 1986

was founded by Donald The stores was ecpanded Established GapKids, a
and Doris Fisher, as a to 25 locations children’s apparel retailer
retailer of vinyl records &
Levi’s Jeans in San
Fransisco.
 HISTORY (2)

1997 2008
Opeened e-commerce Bought brand Athleta,
site, gap.com women’s athletic wear

1994 2000 2013

Created old navy, a brand
featuring value conscious
fashion and expanded
overseas in Western
Europe and Japan
Expanded to China and Acquired the high-end
established a franchise boutique and e-commerce
operation brand Intermix

01
Brands:
Gap, Old Navy, Banana Republic,
Athleta, and Intermix
04
Supply chain
Gap Inc. outsourced production of its
designs to third-party garment production
companies and used third- party logistics
companies to ship its merchandise to
distribution centers
Gap Inc. in 2015
02
Stores
had more than 3,200 locations in
50 countries worldwide
05
Digital Channels
The company’s websites shipped to
90 countries in 2015.
03
Revenues
Revenues in 2015 topped $16.4 billion,
an all-time high. Net margins were
around 7%. Old Navy and Banana
Republic brands generated more than
half of the revenue.
06
Competitors
Mall retailers; women’s retailers;
athletic wear retailers; department
stores; and global retailers.
 Performance management shifting (1)
New Performance Management
Old Performance Management
(GPS – Grow, Perform, Succeed)

Culture Nice Nice and honest

- In goal setting (we set tough objectives)
- Managers rated the employee in 4 rating
Performance - Managers inspire and drive through regular
scale (SAT, AT, OT, BT)
Standard - Year-end reviews
coaching and feedback
- For year-end rewards allocation

- Enterprise goals
- Key business goals - The GMT leader will have one set of
Goals - Lists of tasks that needed to get done goals (no more than 8 goals) which
include enterprise initiatives
 Performance management shifting (2)
Old Performance Management
One hour-long conversation about
Touch base performance with each of their direct
reports once a year
The bonus was 50% financial (purely
Rewards driven by business unit performance) and
50% individual contribution (IC).
New Performance Management
(GPS – Grow, Perform, Succeed)
- frequent informal performance
conversations
- Build employee feedback skills by
providing a course in effective, “brain-
friendly” feedback (Feedback People Can
Hear) and opportunities to practice.
- business performance would determine
75% of annual bonuses; individual
performance would determine the
remaining 25%.
- increased manager discretion on bonus
allocation
The objective of refrashioning performance
Management

• Raise the bar of performance.

• Provide meaningful reward for exceeding plan and consequences for
missing.
• Ensure managers take accountability for assessing, developing and
rewarding performance.
• Support a shift in culture from nice to nice and honest.
• Be simple.
2. Diagnose and analyze the problems (you might choose
your own process conceptually and quote the references)

• GPS were applicable to retail store employees or not

• Training for all managers in 2 years ahead possible or not
• Possible rejection from employees