PLAYS & WAYPOINT REPORTS
sub-totals and grand totals of estimated profits for every customer by each
potential, cost-to-serve transaction type:
orders (pre-sold, hits docks, then delivered):
parts, maintenance transactions
And then, rank them by: profit center
and sales territory
customers are hand coded by - industry segment;
business model strata (A, B, C, D);
how they value service;
relative growth rate
– then data can be loaded into Waypoint and reports can be generated that:
customers by profit within segment-strata niches
the segment-strata niches by total
that are “marginal” can be sorted into three piles:
for making profitable (#1 niche, service value buyer and growing faster than
for sending firm new (profitable-for-us) letter.
any action for now
are we so profitable in our top 1 to few profitable niches?
are we so unprofitable in (too) many other segment-strata niches?
alternative, business-model competitor makes money in those niches? Why might
their business model (location, mix) actually give better, situational service
value to that niche?
our best niche (one at a time):
can we sign up as “advisors” (big,
open, innovative) who will help us co-create next-level, service-value
are the biggest, best, fastest-growing target (gazelle) accounts that our entire team will focus on partnering?
are the few biggest losers in this
niche to target for “lead to gold” strategic, co-transformation calls/plans?
niche can have a 5-5-5-5-5 tracking
report that includes: (for more on 5-5-5 go to: http://www.merrifield.com/exhibits/Ex44555kit.pdf)
best core accounts to defend and grow;
gazelles to crack, partner and then grow you;
super-losers to gold;
fastest-growing accounts (y-o-y); and
most-down accounts (y-o-y).
auditing and working with “advisor” accounts, refine and start daily tracking of the Big 8+ of service
metrics for each niche. Waypoint allows hand-gathered, process data to be
entered securely via the net from all locations and results to be accessed by
all individuals anywhere on a secure basis.
and win more (very profitable) direct-ship orders for best customers due to “fast price and availability response time”
(“P & A”) by short-circuiting the process at: the customer’s shop;
ours; and a few key supplier’s.
a customer-ranking report of only direct and indirect order profitability within
can we focus and excel in this niche area?
out and analyze most-profitable,
warehouse-order-only customers. Who are they? How do we target more of
MORE TO THE CORE
a most-popular item ranking report
for all of the (best) customers within a target niche and then do fill-rate
improvement investing to improve all aspects of “fill-rate economics”.
a list of all the most-popular-items-within-a-niche that a niche customer IS
NOT BUYING. Track how well the sales force sells these potential target items
by referring to article # 2.29 at www.merrifield.com.
(more “old – to - old”)
new, commonly-bought items at “advisors” that can be added to round-out, the one-stop, in-stock,
highest fill-rate offering that we have for the niche.
an audit scorecard system for a target niche by which to rate the customer’s
total procurement effectiveness for replenishment orders. The customers with
audits can be tracked to measure: further penetration and average order size
metrics. (Customer replenishment systems
how to DURR (downsize, upgrade,
refocus and re-orient) the sales force
which will allow:
reps to call on best accounts to win 20%+ more penetration on a more total
total sales force numbers and cost.
up 50%+ of the accounts currently assigned to reps for which the margin
potential can not support such coverage to then market in a more effective,
lower-total cost way.
the “high performance service excellence
culture and service excellence metrics by:
regular anonymous surveys of
employees on: their morale; view on management effectiveness; overall value
ratings for co-workers; etc.
retention ranking reports (last
month, quarter margin dollars vs. month, quarter before)
support the “zero error” program
Credits/transaction ranking reports by customer and rep
Log of all mis-picked items to address the environment of the
most frequently mis-picked
grids for front-liners to enter daily numbers for: cycle count accuracy scores;
on-time shipping and/or delivery; same day receiving; heroic acts and
recoveries accomplished per day; etc.
Database scorecards (Module 5.3-6) can then be
created, tracked, rolled-up for all profit centers and used to spread best practices
from one location to another.
NEXT PHASE OF REPORTING (to be
developed as needed): HUMAN RESOURCE/HIGH PERFORMANCE INPUT DATA
Grade book for every corporate student
with company (how many are in the max. productivity window between young,
inexperienced and coasting on out)
(personal attention opportunity)
annual wage (rank high to low and spot the grossly over and underpaid in the
line up and start a plan to rectify it, because everyone else senses the
raise date (anticipate the annual anxiety/hope for raises)
them from 1 - 10; 1 toast; 2-3 in workout; 4 heading there; 5 steady; 6-7
active +; 8 - 9 promising tigers; 10 intrapreneurs (what’s the profit centers
overall average score trend chart look like)
path report a) on time; b) effort; c) spirit; d) overall grade 1 to 10 (this
replaces the annual, top-down performance review with a bottom-up,
What questions does the grade book application answer or
that service excellence is a by-product of motivated people who have been with
the company long enough to be highly skilled at what they do, rank the branches
years of experience
mastery level metric
high employees rate the effectiveness of the branch manager
great people yield great service, which then yields great economics, what is
GM$/FTEE for the past 12 months
trailing for the
employee compensation divided by GM$?
ROCA – PBIT divided by average inventory and receivables
weighted score for the “Big 8” of service excellence score?
compensation strategy, we want to move toward general wage transparency, in the
sense that all employees have a chance to earn premium compensation for their
job niche in a given metro market.
many have learned-and-earned their way to the maximum target compensation level
for their job niche?
we can’t grow total compensation faster than GM$/FTEE; for everyone wins
comp/GM$ must also drop for premium profitability and reinvestment growth
Free resource flow
and bright ideas pipeline
If we ever
get to the point where we dominate our target customer niches and have best
critical mass inventory economics and a high pretax ROTA,
then we have the enviable opportunity of deciding how to invest the excess cash
that the company will be throwing off and how to redeploy the excess intrapreneurial
talent and ambition. Until we are a 95%-ile performer at our core activities,
we have no business getting into someone’s else’s core business with initial,
do we measure excess resource flows?
do we marry it with Innovation Management metrics that are aimed at strategic
adjacencies off of our core business.
Consulting Group, Inc., Exhibit 56