Connect Retailer - January 2004

Preparing your company and staff for a new system implementation.


Reprinted with permission

Choosing and implementing an advanced IT solution is not just a technical challenge, it’s also an exercise in organizational change. Here, Nancy Silverman and Terrance Young, of Nancy Silverman Associates, offer advice for assessing needs, building support, and transitioning staff.

As consultants, how do you help retailers chart a course between where they are and where they want to be?

NS:       Our role is to help retailers define their needs, identify their options, and choose the best ones. We examine not only problem areas in depth, but also the business as a whole. We then leverage and apply that knowledge with our extensive experience in retail operations, systems implementation, and training.

How do you clarify objectives — and what can the client do to achieve them?

NS:     We create a detailed requirements document by considering many factors, from the overall goals of the business and each department to the capabilities of the IT systems and how they are used, linked, and maintained. The document provides an easy checklist for prospective vendors, and it also serves an important internal role. The process of creating it gets everyone on the same page, up front, and helps the retailer compare how things are done in practice with how they ought to be done.

TY:     Through that process, the client will often see disconnects between departments or system users on different levels that may be counterproductive to the business goals. We also determine whether a system can be modified or needs to be replaced, based on its ability to adapt to growth or the resources available to maintain it.

Do you follow this approach with all retailers?

NS:     The approach is similar, but the areas we concentrate on and the information we capture varies. Each retailer is different. A mass merchant obviously won’t have the same requirements that a specialty retailer does. And among various specialty retailers, the types of products each one sells are going to influence the information you need.

For example, all POS systems must help capture the required information points, process transactions, and exchange information with head office. But some retailers will need a system that can also support a very high level of customer service, while others will prioritize simplicity, ease of use, and speed. Similarly, the needs of each area within a given enterprise will also be distinct.

What are some of the other key factors you assess to determine the retailers’ needs?

NS:     Naturally, we consider how the various retail systems interact. The retailer has to be able to understand how changes in Merchandising, for example, will affect Sales Audit. There are many layers of interaction between systems, some of which are obvious while others are not.

Another part of our job is to make sure the retailer understands their technology options and what will be needed to support them. For example, with best-of-breed solutions, retailers must be prepared to link and manage many systems, and it’s a lot of work. That’s one reason more retailers are moving to fully integrated systems with standardized operating systems and interfaces.

Staffing is another big consideration. If the retailer doesn’t have the staff to support a given system, such as CRM or Planning and Allocation, they’re not going to get the ROI they expect.

TY:     It’s also important to develop good partnerships — not just with end-users and teams who will be directly affected by the hands-on factors, but with all areas of the business.

Once you have helped a retailer assess their requirements and select a new system, what is your role in supporting the implementation?

NS:     A successful implementation depends on teamwork, as well as clear processes and procedures. NSB understands this. Their implementations are always handled consistently and are well documented.

We often undertake a business process review to document procedural changes the retailer will have to make. Everyone affected must understand them, so we encourage a team effort. If you’re implementing CRM for example, you need to involve the Store and IT people as well.

TY:     Creating an internal team will motivate people to get actively involved. People will be excited — not just as users, but as partners in the project. But to build this team you need management’s support.  

Even with a supportive team, how can you ensure staff will actually adapt to the new system and use it to its full advantage?

NS:     Training is obviously important. We can manage the training independently or assist vendors such as NSB, whose systems we know well. We can also support clients beyond the vendor’s formal training to ensure the retailer’s staff thoroughly understands the system and can use it to maximum effect.

TY:     It’s critical to make sure the users actually apply what they learn, and there are many potential barriers. In some cases, it’s just the challenge of changing familiar but unproductive or outmoded ways of working. In other cases, people may be afraid of making mistakes or even being made redundant. That’s why it’s so important to work as a team and to clearly communicate the benefits and goals. Motivation counters fear, and can turn reluctant participants into enthusiastic supporters.

NS:     If the other key processes have been handled properly up front, these barriers won’t be hard to overcome. At the training stage, for example, all it usually takes is to sit down with the users and show them how the system is going to help them save time and do a better job.

TY:     Another factor is to make sure the system is set up properly with your parameters and your department class structure, so the data is relevant and easy to use.

NS:     It’s also very important for department managers to learn the system, to set the standard and serve as an example. Sometimes companies are willing to spend millions of dollars on a new system, but their managers aren’t willing to go in and learn it, and that really hurts their investment.

How do you know when an implementation is successful and your efforts have paid off?

TY:     There are many indicators, small and large. One sign is when you’ve prepared your requirements document so well that it can be used directly to specify and document your procedures.

NS:     Another is when you empower and please the users. We had a gentleman last year who had never touched a computer. He was apprehensive in the beginning, but once he was trained, he was really into it. All it took was for someone to sit down and partner with him, and to show him how it worked.

TY:     A larger and more obvious measure of success is when your client is able to reach a goal they haven’t been able to before — when they are able to grow their business because of what you’ve done.

We recently worked with NSB on an installation in Boston. The system has really helped the retailer bring up their sales. They’ve been able to capture more of their business by putting both the systems and the processes in place to better manage their enterprise, including excellent inventory controls.

NS:     Perhaps our greatest validation is that we get a lot of repeat business. And on a personal level, it’s the fact that after 12 years in business, I still love what I do. It comes from listening to what your clients have to say, and sharing their goals. It comes from working with highly experienced professionals who are doing this by choice. Above all, it comes from helping and watching our clients succeed.

Nancy Silverman Associates is an independent management-consulting firm that works with a variety of retailers and solutions providers, including NSB. For more information, visit www.silvermanassoc.com.

 Sidebar

Nancy Silverman Associates focuses on retail systems analysis, requirements definition, system and operational documentation, system selection, and implementation. The firm was incorporated in 1992.  

President and founder Nancy Silverman has implemented and managed systems for hotels and retail businesses since 1976. She has held a variety of senior positions in the retail industry, including Director of MIS for Barneys New York and Manager of MIS at T. Deane.

Terrance Young has been with the firm since 2002, focusing on retail head office and point of sale systems and operations. Previously, he served as Director of Information Technology for Blissworld, LLC (LVMH Inc.), and as Director of Information Systems at Tommy Hilfiger Retail, Inc.