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Case in point 2 - Aditya Birla’s methodology for scoring store success

Best practices workshop

ABRL realised that they had an employee base that possessed unique skill sets acquired from having worked in several industries, including FMCG, retail, brick and mortar, etc; as a result, the mindset

of staff was diverse.

Mr. Thomas Varghese, Chief Executive

Officer, ABRL realised that the company needed to create a uniform

Factors for success

  • Systematic and measured approach to aligning staff and the organisation in a singular direction

  • Extensive due diligence of KRAs, KPIs, expectations, etc.

  • Best practices workshops based on operational dynamics

  • Focus on ensuring that “everyone is on the same page”

  • Support and buy-in from senior management was essential in encouraging new and shared behaviours, actions, etc.

set of standard operating procedures, processes and prescribed methodologies by which all members of the organisation would be aligned

To achieve this, Mr. Varghese created a high potential team that was mandated to create the content of the Best Practices in Retail. This team assessed all the operational functions of a retailer, such as—

  • Business Development (Opening right quality profitable stores)

  • Buying and Merchandising

  • Supply Chain Management

  • Store Operations

  • Loss Prevention

  • Quality

  • Execution of Private Labels

  • Marketing and Visual Merchandising

  • Human Resource

  • Finance and Commercial

These functions were then translated into a series of Best Practice Workshops. It took four months for the team to create and execute the excellence workshops. The workshops were rolled out over two days for zonal teams across 13 zones. Each day lasted between 12 to 13 hours and it took over two months to cover all the zones. These workshops were conducted by internal domain specialists and by March/April 2009, the organisation had 1300 people who understood excellence and were aligned in a singular direction, with common perspectives, goals and directions.

Best Practice training is a continuous process. The re-training of best practices occurs on a periodical basis for zonal operations teams. The Business Excellence team owns and drives the implementation of the best practices across all stores. This team assumes an important role in updating and converting new best practice into SOPs (Standard Operating Practices.)

ABRL interprets the concepts of measurement and standardisation through a holistic approach. ABRL follows the Balanced Scorecard methodology in deriving the KRAs and the KPIs in a top-down approach. This has enabled ABRL to drive its organisational objectives through aligned goals across the length and width of the organisation.

(Source: Primary research interview with Aditya Birla Retail)



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