The challenge

Addressing Operational and Cultural Challenges

This multi-channel retail organization sought transformational change. They needed to significantly boost the quality and productivity of their work and enhance the work culture within the facility.

Part of the low morale stemmed from a newly launched team-based gainsharing program. While it was paying out large payments, it was uneven. Worse yet, a recent employee survey ranked it as the least-liked feature. So, they reached out to the Joshua Tree Group for help.

The Solution

Building a Foundation of Performance Excellence

While transforming company culture was a primary goal, the JTG team first had to improve the operational processes. This included a blend of process redesign, management training, associate coaching, and new decision-support tools. These, along with new multi-variable performance goals, created the foundation for an analytically based pay-for-performance program.

Most importantly, the supervisors were given a new set of tools to coach associates toward high performance. 

Here are actions that led to success:

  • Creating a comprehensive policy that defined and upheld the spirit of the program

  • Establishing new performance reporting tools and coaching guides

  • Implementing lasting improvements in operational workflow, layout, and procedures

  • Assigning client sponsorship throughout management and associate ranks

  • Changing manager and supervisor focus to proactive staff planning, associate coaching, and performance planning.


The results

Transformational Outcomes in Productivity and Culture

The new program led to remarkable improvements across the board:

  • Productivity: Increased by more than 35%.

  • Bonus earnings: Associates earned 12% bonus earnings for achieving 100% performance, with many earning even more.

  • Supervisor rewards: Supervisors were recognized for meeting goals in productivity, quality, staffing efficiency, and coaching/feedback effectiveness.


The company also experienced a culture shift that prioritized:

  • Regular, objective coaching and performance feedback.

  • Weekly and daily staff planning.

  • Public recognition of associates with high levels of performance improvement.


These changes resulted in a range of financial and cultural benefits, including:

  • Reduced labor costs through increased productivity.

  • Deferred capital expenses on assets from lift trucks to workstations and from RF scanners to parking spaces.

  • Improved quality and service performance during both peak and off-peak times.

  • Lower turnover, reducing hiring and training costs due to higher morale.

  • Clear performance expectations with objective criteria and goals for all employees.

  • Simplified annual reviews through daily, personal feedback on performance relative to goals.

  • Precise staff scheduling capabilities via integrated modeling tools.


By embracing a performance-driven culture and providing clear, objective feedback, the company achieved significant results: boosting productivity, reducing costs, and creating a more engaged and motivated workforce.