September 14, 2020

BOARD: Making The Right Decision

Yesterday we talked about the fusion of PetSmart and DoorDash.

If you were writing Goals and Objectives for 2021, you'd ask yourself "DOES THIS SOLVE OUR PROBLEM?" Wouldn't you? You are an "O" dominated brand (omnichannel business strategy with e-commerce linked to stores) leveraging a "B" strategy (e-commerce-in-a-box) to compete against Amazon ("A").

Does this "B" strategy solve the problem?

You'd first ask "what is our problem"?

If the problem is "nobody is buying from our stores and we can't just let those stores sit there", then the solution does not solve the problem. No. The solution buys you time to think. Therefore, the Goal/Objective you write for staff reflects your perspective. You might want 10% of e-commerce orders to happen via DoorDash while retail sales hold flat ... that might be your Goal for the year.

  • Exceeds Objective = 15% of e-commerce sales via DoorDash, retail comps grow by 3% or more, respond to DoorDash customer interactions with stores/e-commerce for a modified strategy by July 1, 2021.
  • Meets Objective = 10% of e-commerce sales via DoorDash, retail comps between 0% and 3%.
  • Missed Objective = < 10% of e-commerce sales via DoorDash, retail comps decrease.
If the problem is "our customers are buying from Amazon now", you have a different Goal/Objective structure, don't you? You now care about "who" is buying. You want to protect your existing customer base and get product to the customer before Amazon can get product to YOUR customer.
  • Exceeds Objective = Convert 20% of existing customer base to a DoorDash delivered e-commerce order.
  • Meets Objective = Convert 10% to 19% of existing customer base to a DoorDash delivered e-commerce order.
  • Missed Objective = < 10% of existing customer base converted to a DoorDash delivered e-commerce order.
If you are just executing a test to see how this works, you don't even bother writing a Goal/Objective for your team.

Does that make sense? You are trying to link BOARD with Strategy via Goals/Objectives that tell employees how they will be rewarded.

So start thinking about BOARD, Strategy, and Goals/Objectives. I'll help you through the process if you need assistance.

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