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5WaysToFosterEmployeeEngagementInTheManufacturingSector|AnnabelleBervert|LinkedIn
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5WaysToFosterEmployeeEngagementInThe
ManufacturingSector
Mar23,2015
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TheManufacturingsectorcomprisesestablishmentsengagedinthemechanical,
physical,orchemicaltransformationofmaterials,substances,orcomponents
intonewproducts.
Likeallindustrysectors,thissectorisfocusedonfindingwaystobettermanage
labourcosts,whilestillbeingflexibleenoughtorespondtochangingmarketplace
andcustomerrequirements.Mostmanufacturersareseekingcostreductionsbut
oneofthemostimportantdriverstoimprovebusinessperformanceisthe
empowermentandengagementofthefrontlinemanagersandemployees.
Indeed,employeeswhoarenotengagedwillaffecttheorganisational
performancethroughhigherabsenteeism,higherturnoverandlower
productivity.
Asimpleexampleofanengagedemployeeinthemanufacturingindustrymight
be:attheendofalongandbusyday,anemployeecouldchoosetousethelast
minutestoeitherleisurelycleanuporrushtomakesurethatonemoreshipment
hasbeenloadedforanotherontimedelivery.Theengagedemployeewould
committhatextraenergytodowhatisbestbecause,helikesworkinginan
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5WaysToFosterEmployeeEngagementInTheManufacturingSector|AnnabelleBervert|LinkedIn
environmentwherehefeelsvalued,respected,secure,andsafeaswellasbeing
rewardedforhisgoodjob.
Itcanbechallengingtoengageemployeesintodaysmanufacturing
organisations,hereare5elementsthatcontributetoahighlyengagedworkforce:
1)Hiringtherightpeople
Itsessentialtohiringemployeeswhofitthejobrequirements,meaningthose
whohavetherightskillsandtheexperiencebutalsotapintoemployees
identificationwiththeorganisationbutalsopassionandcommitmentforthe
industry.Itisimportanttoidentifytheapplicantspersonalcorevaluesand
ensurethatthereisanalignmentwiththecompanyscorevalues.Highjobfitis
achievedbyeffectivelydeployingemployees'talentswhenmakingselection,
placementandpromotiondecisions.Selectingemployeeswithstrong
motivationalfitforthejobwillleadthecompanytohigherlevelofproductivity,
quality,attendanceandretention.
2)Engagingfromthetop
Anotherkeyelementthatcontributestoahighlyengagedworkforceisthequality
ofmanagement.Engagedleadershipisvitalinthemanufacturingindustry,
leadersneedtoownandlivetheorganisationsvaluestoencourageemployeesto
holdthemtooandtheyalsoneedtohavetherightskillstoleadwithinfluence,
notwithcontrol.Engagedleadersunderstandthattheirroleisnottotakecharge
ofallthedecisions,buttobemorelikeproactivecoaches.Theyareabletoinspire
otherstoshareintheirvisionandpurposeandinfluencethemtojointhe
movement.Theyhavetremendousinfluenceoveremployeesbyenrollingthemin
thebusinessvisionanddeliveringcompellingandpersuasivecommunications.
3)Empoweringemployees
Employeesneedtounderstandthevitalroletheyhaveinworkinginthe
manufacturingsectorandwhyitiscriticaltofuturesuccess.Theymusthaveclear
goalsandknowhowtheyfitwiththeCompanysbottomlinetoassimilatehow
theirinputsarerelatedtothewidercorporatepicture.Creatingandmaintaininga
positiveworkplaceculturebasedonopenness,empowerment,integrity,trust,
collaborationandpassionisundoubtedlyamongthebiggestfactorsinenhancing
employeeengagementintheindustry.Indeed,bybeingtransparentonthe
evolutionofestablishedcompanygoals,employeeswillshowwillingnesscoming
upwithnewideasandinitiatives.Besides,theywillfeelempowerbecausethey
havedecisionmakingpowerinwhattheyaredoing.Giveyouremployeesavoice
andlistentowhattheysayandletthemthechancetogivegenuinefeedbackon
performance.
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5WaysToFosterEmployeeEngagementInTheManufacturingSector|AnnabelleBervert|LinkedIn
4)Communicatinginternally,thecornerstone
Strongemployeecommunicationsconnectsemployeestotheleadersvisionand
companystrategy.Acultureofemployeeengagementonlyhappenswhen
employeesshareandbelieveinthesamevision,values,andobjectivesasthe
leaderandbehaveinaconsistentmannerwiththosebeliefs.Inadditionhaving
Home
Profile
MyNetwork
Pulse
5WaysToFosterEmployee
EngagementInThe
ManufacturingSector
AnnabelleBervert
Howtousedatascienceto
growyourrestaurant/cafe
business?
999+
Advanced
anopenandhonestcommunicationfromleaderstoemployees,itisappropriate
Searchforpeople,jobs,companies,andmore...
Jobs
Interests
BusinessServices
TryPremiumforfree
tosetupcommunicationschannelstoensureemployeesarewellinformed.A
goodwaytomakeinformationaccessibleinthemanufacturingcompanyis
Publishapost
installingtouchscreenkiosksintheworkplace.Otherchannelstoconsiderare
regularteammeetings,frequentbriefingsessionsfollowingbyfocusgroupsto
ensuremessageshavebeeneffectivelyunderstood,employeesbulletinsand
newslettersdisplayedonthetouchscreenkiosks.Finally,regularEmployee
satisfactionsurveysprovideinformationonemployeesjobengagementand
companycommitment,aswellasgivingthemtheopportunitytomake
confidentialcomments.
SnehamoyMukherjee
3MistakestoKillYourEmail
Marketing!
AnindyaaGhosh
5)Recognisingandpersonalgrowth
Outperformyouremployeesbyinvestinginspecifictrainingsuchasjobtraining,
seminars,coursesorfurthereducationthatrelatetothecompanysstrategy.Give
PepperTapscollapseshows
everythingthatiswrongwith
Indiasyounginternet
qz.com
companies
employeesopportunitiestogrowtosuccessfullyachievecompanywidegoals.
Managersandleadershipsalsoneedtraininganddevelopmenttobeeducatedon
thecompanyvaluesandstrategy.Fornewhires,developmentprogrammewill
ensurethatthevaluesareappliedintheirdailywork.Tokeepmaintaininga
TheMandrakeApproachto
Governance
SantoshDesai
positiveworkplaceculture,recognitionandrewardsaregreatmotivators.When
anemployeecomesupwithanewwayofdoingajoboraninnovativeideato
enhancetheworkplaceproductivity,ensurethatisproperlyrewarded.Most
UtterlyButterlyFoolicioustake
onadvertising
importantly,ensuretherewardisgivenpublicallysootherscanseethatkindof
behaviourisappreciatedandrecognisedbythecompany.
AnantRangaswami
Makingsenseofhyperfunded
startupvaluations
KashyapDeorah
EmployeeEngagement, Manufacturing,
Reportthis
InternalCommunications
Starttoupskillifyoureunsure
ofyourstartup
Writtenby
GeraldJaideep
BrandingBeyondStorytelling
AnnabelleBervert
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SaurabhSharma
Bethefirsttocommentandstarttheconversation!
WhydoesAndhraoutperform
BiharintheIITJEEexams?
SubhashChandra
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APracticalGuideto
Entrepreneurship
SnehamoyMukherjee
DataScience&AnalyticsLeader,VisitingFacultyofBusinessAnalyticsatnicheB'
SchoolsinIndia
RakeshAaroraa
WhatPMModicanlearnfrom
CMModi?
RiteshKumarSingh
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Howtousedatasciencetogrowyour
restaurant/cafebusiness?
Apr22,2016
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IdealtimeforapplyingandDatasciencetoRestaurantBusinesses:The
restaurantbusinessinIndia,nay,theentireworldhasbeenahappyhunting
groundformanyentrepreneurs,bigorsmall.Thesectorisstillseeinghigh
growthandahugeamountofinvestments,withnewchainsopeningatarapid
pace.Forsomeoftheolderplayersthough,thetimehascometoconsolidatetheir
businessesand/orexpand.Thisrequiressystematicmanagementandoversight
toensureasmoothtransitionsothatthebasicfundamentalsonwhichtheir
businesseshavebeenbuiltisnotscarifiedatthealtarofgrowth.Thisistheideal
timeforembeddingAnalyticsintotheireverydaybusinessprocesses.
HowcanAnalyticsincreaserevenues?ThequestionthatmostRestaurant
ownerswouldaskishowAnalyticsisgoingtopositivelyimpacttheirrevenues.
TherearemanyindirectwaysinwhichAnalyticscanhelprestaurantsmakemore
money,butforthepurposeofthisdiscussion,wewillconcentrateonlyonthe
directones:
AHelpsyouunderstandyourcustomers
TripSegmentationhelpstounderstandwhatkindofmealsdocustomers
cometoyourrestaurantforyoumightsurprisedthatalargenumberofyour
customersmaybebuyingonlyoneitem(solotrip),somemaybeonadinner
tripwhilestillothersareonapuredrinkingbinge
Visitpatternsdifferenttypesofcustomersvisityourcafeatdifferenttimes
ofthedayhence,menudifferentiationishencenecessaryfordifferentday
partstoboostyourbusiness
Customizingoffersfordifferentpartsofthedayisaneffectivedifferentiating
strategy.Customersneedtobeledtobelievethattheyshouldordercertainkinds
ofmealsatcertaintimesoftheday,eventhoughyoumaybehavinganalltime
favouritemealliketheEnglishBreakfastrunningallday.
Runningabusinessisalsoaboutconservingcostswhenyourdatarevealsthat
yourrestaurantisnotdoingbusinessatall,ateithertheearlyhoursofthe
openingorclosertoyourclosinghours,youshouldthinkofchangingthetimings
thiswillreduceyourelectricitycosts,reducefatigueofemployeesetc.
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BIncreasetheshareofwalletofexistingcustomersWhereisthe
LoyaltyStrategy?
Understandwhatyourcustomerslikeandpersonalizeoffersforthem
Getyourcustomertovisityourrestaurantonemoretimeandbuyonemore
meal
Yourloyalcustomersareyourbiggestbrand
CRemovingslowmovingitemsfromyourmenuWhenyouhavealong
menucard,itisimportanttoanalyzewhatpeopleareconsumingandwhatthey
arenot
DPricingStrategy
Identifyitemswhichareconsumedbypricesensitivecustomers
Identifyitemswhichareconsumedbyupmarketcustomers
Undertakepricingtrialstocheckpricesensitivityofcustomerstodifferent
menuitems
EMenuMixsolutionWhichitemsboughttogethercontributetomaximum
sales?Createcombinationsofsuchitemsandofferdiscountstodriveupsalesand
productivity.
Letusnowlookattheabovementionedaspectsingreaterdetail.
AUnderstandyourcustomers
Themostimportantaspectofanybusinessistheabilitytounderstandyour
customers.Ifyouknowyourcustomerswell,whattheybuy,whentheybuy,how
theybuyetc.,halfyourjobisdone.Whenyourbusinessissmallandyour
clienteleislimited,itiseasytorememberyourcustomersatapersonallevel,
oftenknowingwhattheirfavouriteordersare.But,whenyourorganizationgains
scaleanditisdifficulttoevenrecognizethembyfaceitisimportantnottolose
trackofthatveryattributewhichhelpedyouestablishyourbusinessinthefirst
placeyourabilitytounderstandyourcustomers!Whenyouhavemorethanone
restaurant,thejobbecomesevenmoredifficult.Thatiswhyyouneedtoharness
thepowerofdata.Butbeforeyoudothat,youmustdevisemechanismstocollect
thedataonyourcustomers.Ifyoudonothaveamechanismtocollectdatathat
identifiesyourrepeatcustomersdontloseheart.Youcanstilldoalotby
analyzingthePOS(PointofSale)data.
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UnderstandCustomerBehaviour
Understandingcustomerbehaviourisagoodproxytounderstandingyour
customers.Whenyouhavehundredsofthousandsofcustomers,ordering
differentitemsfromyourmenucards,itbecomesimperativeforyoutolookat
groupsofcustomerstounderstandtheirconsumptionbehaviour.Thedatafrom
yourPOSsystemscanbeanalyzedtocomeupwithsegmentsbasedondifferent
kindsofconsumptionbehaviourofpeople.Oneofthemostpopular
segmentationsusedinAnalyticsinrestaurantbusinessesistheTrip
Segmentation.
Hereisahypotheticalexampleofwhatdifferentkindsoftripsegmentsthatcan
bethereinarestaurantbusinessandhowtheycanbeusedwithtremendous
impactonthebusiness.
Intheaboveexampleoneisabletoanalyzethedataandcomeupwiththese
segmentswhichsplitthepopulationintomeaningfulsegments.Once,the
segmentshavebeenidentifiedandprofiled,thenextstepistodevisestrategiesto
tapeachofthesegmentsforincreasingrevenues.
Letuspickuponesegmentforfurtheringourdiscussiononthis:TheSoloTrip
Segment.Thissegmentprovidesopportunityforincreasingsaleswithabundled
offering.Thiscanbedonebyidentifyingthemostpopularcombinationsthatare
orderedbytherestofthesegmentsalongwiththemostpopularitemsbeing
orderedbythethissegment.Thenextstepistocomeupwithapromotion,
offeringcoupleofitemstogetherasabundle/combo.Thiswillhelpincreasesales
andcoaxthesoloitembuyerstoorderanotherpopularitemfromthemenu.
DistributionofsegmentsthroughoutthedayByplottingthesegments
acrossvarioustimesoftheday,youmaybesurprisedtofindthatthepenetration
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ofcertainkindsofsegmentsmaybemoreincertaindaypartsthaninothers.This
providesagreatopportunityfordifferentiatedoffering/promotionsindifferent
dayparts,dependingonthekindofcustomerscomingtoyourstore.Itwillalso
helpinkitchenmanagementbetter,becauseyouwouldbeawareofwhatkindof
orderstoexpectatdifferentdayparts.
Intheabovehypotheticalexample,theoccurrenceofsolotripsismaximum
between15:00to18:00hoursandistheperfecttimefortherestaurantto
promotecomboofferswiththemostpopularlysoldsoloitems.
Dashboards:Measuringyourbusinessrealtime
Wemayhaveallheardaboutthepopularityofmanagementdashboardsand
maybewonderingwhatusetheymighthaveintherunningofrestaurants.Onthe
contrary,adashboardforarestaurantisoneofthemostpowerfultoolsthatan
ownerofarestaurantcanhave.TheManagementdashboardfortheowner/top
managementofarestaurantchainwillhelphimgetanimmediatesnapshotview
ofthebusinessinrealtime.Someoftheveryusefulmetriceswouldbe:
AverageSalesperchainperday/perweek/permonth/perquarter/per
annum
Likeforlikesalesperchainacrossweeks/months/quarters/year
Averagemenuitemssoldperday/week/month/year
Categorieswithmaximumsalesinaparticularday/week/month/year
Menuitemswithinlargercategoryheadswithmaximumandminimumsales
Costofgoodssoldforeachchainonadaily/weekly/monthly/yearlybasis
Costofrawmaterialsunderdifferentheadsonadaily/weekly/monthlybasis
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Performanceofchainsacrossdifferentsegments
Percentageofrepeatvisitsofcustomersonaweekly/monthly/yearlybasis
Revenuefromeachsegmentofcustomersdaily/weekly/monthly
Topperformingchains
Poorperformingchains
Shareofrevenuefromtopperformingchains
Shareofrevenuefrombottomperformingchains
Whendoyourdifferentchainsgetthemosttraffic?
Identifypeakhoursinsaleswhichwillhelpinstaffingdecisions
Whichchainsaregettingmoretrafficandwhichchainsarenot?
Identifywhichcategoriesareperformingpoorlyandwhere?
Identifyavailability/outofstockissuesatchains,atdifferenttimesoftheday
Whatarethedriversofsuccessofcertainproductsandcertainstores?
Identifythedrivingfactorsbehindtheperformanceofyourchains.E.g.are
increasedsalesduetomorecustomersorthesamecustomerseatingmore?
Anexampleofadashboard
LoyaltyStrategy
Forabusinesswithaveryhighprobabilityofrepeatcustomers,itisinterestingto
notethatveryfewrestaurantbusinessesinIndiahavealoyaltystrategyinplace.
Havingaloyaltystrategydoesntmeanimplementingacashheavyloyalty
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program,repletewithplasticcardsandheavydiscounting.
Aloyaltystrategymeans:
1.Havingtheabilitytotrackyourrepeat/loyalcustomersineachvisit:which
canbedonethroughsimplemethodslikecapturingtheirmobilenumbers
whilebookingaseat,whileprocessingtheirorders/payments
2.Designingsimpleandeasyrewardmechanismstorewardthecustomerto
showhimthatheisvalued
3.Havingacontinuousandopencommunicationchannelinplacewithaloyal
customer,incentivisinghimtomakemorefrequenttripsand
buying/orderingmoreitemsonthemenuoneachvisit.
4.Buildingapersonaltouchwithacustomersothathehasatopofthemind
recallforyourrestaurant
5.Understandingthebuyinghabitsofyourcustomersothatyouknowhowyou
couldprovidemorevaluetohiseatingexperience.
1.Forexample,ifyouknowthefavouritewineofyourcustomerandhave
thewaiteraskhimifhewishestohavethesame,itcreatesanimmediate
connectofapersonalnaturewhichislonglasting
2.Ifyouknowthatyourloyalcustomerlikesastarter(sayspicy
mushrooms)whichhehasorderedonquiteafewoccasionsandyou
empoweryourwaiterwiththatinformationaswellastheauthorityto
providethatasafreestarter,youwillhavewonacustomerforalifetime
3.Theseelementsofsurpriseanddelightrewardsforcustomershelps
buildahugeelementofanticipationforthenextvisit
4.Thesurpriseanddelightrewardprogramsinvolvelowcosts,butleadto
bigimpactoncustomerdelight.Italsocreatesanelementofsuspensein
themindsofthecustomerswholookforwardtothenextrewardcoming
theirwayandtriggersthenextvisit.
PricingStrategy
Itisimportanttocarryoutawellthoughtoutpricingstrategyinyourchain.You
shouldincreaseprices,butinaverystrategicmannerandbymeasuringthe
impactofthepricechanges.Therearetwophasesofthepricingstrategywhich
arecritical.Oneisthepreincreaseperiodwhenyoudeterminetheproductsfor
whichyouaregoingtochangepricesandtheotheristhepostpricechangeperiod
whereyouneedtomeasuretheimpactofthepricechangesonthecustomer
buyingbehaviour.
Activities:
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Identifyingmenuitemsforwhichpriceshoulddecrease
Identifyingmenuitemsforwhichpriceshouldincrease
Identifyingmenuitemsforwhichpriceshouldnotbechanged
Thesimplediagramaboveexemplifieshowchangesinpricehaveaffected
changesinrevenue.
Ittellsusinsimpletermsthatweshouldincreasethepriceofliquoritemsas
inspiteofincreasingprice,therevenuealsoincreases.
Weshouldnotincreasethepriceofstartersasthepriceincreasehad
impactedtherevenuenegatively
Priceofsandwichescanbedecreasedasithashadapositiveimpacton
revenues
Decreasingthepriceofsoupshadacounterintuitiveeffectitactually
decreasedrevenues.Soweshouldholdthepriceforsoups.
Thegistofthelearningfromtheaboveisasbelow:
Identifywhichitemsareconsumedbypricesensitivecustomerslowor
marginalincreaseinprice
Identifywhichitemsareconsumedbyupmarketconsumerspricescanbe
increasedwithoutimpactingsales
IntroducePricingtrialstocheckpricesensitivityofcustomerstodifferent
menuitems
MenuMixSolution:
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Thefamousobservationthatbeerbottlesandnappieswhenkeptadjacenttoeach
other,ledtoincreasedsalesinretailstores,introducedanewconceptofproduct
bundling/adjacencytotheworldofRetail.Inthebusinessofrestaurants,the
closestcorollaryisthatofmenumix.
Whenyoufindmealsconsistingofburgers,friesandcokearebeingservedto
youatdiscountedprice,doesntmeanthatMcDonaldsistryingtopushcokeinto
yourmenu.Itmeansthattheyarebeingcustomerfirstandhaveobservedthat
thisoneofthemostpopularcombinationsthatpeopleusuallyorderandthey
haveinstitutionalizeditforthebenefitofcustomers,efficientcustomerservice
(yousavetimeinsteadoforderingindividualitems)andaboveallitdrives
revenueascustomersseeaninherentvalueinthemealsastheygetsomething
elseatalowerpricethanwhattheywouldotherwisehavetopay.
Similarlyinrestaurants,menumixshouldbeanalyzedandthemostpopular
mealsshouldbebundledtogetherandofferedtocustomersatalowerpriceto
incentivizethemtobuytheirfavouritemeals.Thiswillincreaseloyaltyof
customerstotherestaurant,apartfromdrivingmorerepeatvisitsfromthe
customerswhowouldliketocomebackfortheirfavouritemealsatreduced
prices.Themenumixshouldonlybedoneforthemostpopularmealsandthere
shouldonlybeafewcombosonoffer,elseitwillbecomecomplicatedandmake
thecustomersconfused
Conclusion:
Thereisabigopportunitywaitingtobeutilizedbythemoreentrepreneurialand
innovativerestaurantowners.Whoevertakestheleadwillwin.Soon,therewillbe
nootheroptionbuttoinnovateanddevisestrategies,keepingthecustomeratthe
heartofallyourdecisionmaking.Therateatwhichthisspaceisgrowing,itwill
bedifficultforlaggardstosurvive.Analyticsprovidestheonlysolutiontoensure
scalability,efficiency,keystocustomersatisfactionandaboveall,increased
revenues.
Reportthis
FeaturedInIndiainBusiness,SalesStrategies
Writtenby
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5WaysToFosterEmployeeEngagementInTheManufacturingSector|AnnabelleBervert|LinkedIn
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