GEs 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
AccessGEs Tools & Methodologies
A set of game changing tools and process improvement methodologies proven successful within GEand 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

Our Toolkit
AccessGEs People & Experience
Access GE experts to leverage our industry breadth & functional knowledge Function / Process HR Performance Management Integrity & Diversity Finance - Treasury & Hedging Sourcing & Outsourcing Call Center Management Environmental, Health, Safety New Product Introduction GE Operating Rhythm Shipping & Logistics Sales Force Effectiveness IT & Digitization Shared Services Payroll, T&L Marketing & Branding GE Core Businesses Infrastructure Aircraft, Rail, Energy Industrial Appliances, Lighting Healthcare NBC Universal GE Money Commercial Finance *Operations in 100 countries Staff Industry Expertise Aerospace, Auto, Chemicals, Communications and Entertainment, Construction, Food/Beverage, Forest Products, Manufacturing, Healthcare, Media, Retail, Steel, Transportation Emerging Markets China India Eastern Europe Russia Brazil GE Initiatives Growth as a Process Net Promoter Score Ecomagination Globalization Enterprise Selling

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

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

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, Focus on Critical Items ACFC Engagement GE facilitated a 1 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. Really enjoyed the session. Exceeded expectations." -- Store Manager "Great way to raise/hash through the issues/opportunities quickly. Guardrails help maintain structure to conversation" -- Store Operations Manager "Lots of value taken from this. Looking forward to sharing this with my peers." -- Buyer "Actionable, understandable, well thought out. Very good tool! Over exceeded my expectation" -- Brand Director

ACFC Snapshot: Change Acceleration Process

Customer
Electronics Retailer

Customer Issues and Objectives

Learn about GEs 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 - learned a great deal that I will apply. Director of Services, Retail "Very well done....extremely professional and you did a very good job calibrating the pace and level of detail to the audience and situation. - Director of Business Transformation "Greatly exceeded expectations. Facilitators had great insight into our goals and mission. Director of Retail Transformation

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, presented very well. Thanks" - Senior Manager, Merchandise Planning and Allocation "Insightfully facilitated, good real-world analogies, interesting info that was never boring, useful techniques. Glad to see we did this." - Senior VP Manufacturing & Quality Control "Liked the structure, tools, and the ling to a real opportunity for my team and company" - VP Merchandise Planning and Allocation "Process is excellent for producing workable objectives" - Executive Vice President/CIO

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, sharing best practices, measurement systems, 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 1.6X
We were very impressed with GEs ACFC program. We expected our lenders to be focused on our performance, but GE went above & beyond. They actually helped us improve our operating performance. The initiative delivered a tremendous level of value and helped drive our business growth. John Trainor USA Drug, SVP Finance

Company Highlights
Tourneau is the worlds 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

Tourneau Projects with GE

GE Tools i.e. Lean - White Plains Backroom Project Innovation Workshop Summer 2007

GE Tool: Lean

Lean- White Plains Backroom Project Objective: Streamline Back Office Processes and Organize Record Keeping in Tourneaus White Plains Store

Tourneau Lean 5S Event: Store Back Office

What is 5S?
1. Sort Eliminate unneeded items 2. Simplify A place for everything 3. Shine or Sweep Keep the workplace clean 4. Standardize Identify work standards 5. 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, NY Interacted with other GE Retail Customers Shared insights from different business models (Grocery, Sporting Goods, Furniture) During break out session, utilized Customer Journey Mapping tool Generated new initiative creating unique Top Customer Reward program utilizing Vendor Incentives

GE Innovation Tools & Exercises

INNOVATION ASSUMPTIONS
Discuss the common assumptions about innovation to start a dialogue.

WHAT BOX ARE YOU IN?

DEFINING AND CLASSIFYING INNOVATION INNOVATION FRAMEWORK

Re-define your context to find new customers and markets. Map the system of players in the industry to innovate more holistically. Explore customers lives and motivations to uncover unmet needs. Look at the customers entire experiences to find ways to create value at every touchpoint. Unstick your thinking and get clearer about how to test and evaluate your idea. Diagnose your strengths and weaknesses on innovation traits. Explore the types of environments that will best reinforce your innovation goals. Learn the nine essential roles in innovation, and who in your organization can play each role.

CUSTOMER ECOSYSTEMS CUSTOMER PROFILING

Explore various types of innovations to clarify your own innovation goals. Discover the mindset and behaviors essential to effective innovation. Ask the simple questions that challenge our most basic assumptions about the world around us. Look at how major trends are affecting our business and providing new opportunities. Sharpen your hypothesis and determine the factors that will lead to success.

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.

MAPPING CUSTOMER JOURNEYS

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

Exploring the customers journey to identify innovation opportunities.

While no two experiences are the same, there are three basic stages to every journey. Each provides an opportunity to change the status quo and tap into customers unmet needs. AWARENESS
We become aware and we learn about a product, service, or brand.

COMMITMENT
We choose and we buy specific goods, knowledge, or services.

USAGE
We use, enjoy, repurchase, and share our experiences with others.

Examples of customer journey

AWARENESS
By focusing on universities, Dell became widely used and known by students who spread word about the brand to their friends and family.

COMMITMENT
Dell wanted to offer customers cheap, customizable PC s, so they reinvented how consumers select and purchase by selling directly through an online portal.

USAGE
Dell backs up their purchases with 24 hour online and phone support, and onsite visits for the problems they cant solve over the phone.

CUSTOMER JOURNEY MAPPING

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

At the Customer, For the Customer

Growing with Our Retail Partners