Wednesday, December 31, 2008

Associates Stealing, No Prolem

As I may have mentioned in previous posts there is a substantial problem with 'testers' and 'samples' being sold on eBay. I have long been suspicious of theses items coming from the most logical source . . . Sales Associates / Product Specialists. This has now been confirmed as recently an Associate was found to have approx. 20 product samples hidden in their lunch box. Both Loss Prevention and Human Resources were on hand to observe and confiscate these samples. The Associate was clearly trying to conceal these items as they were not only inside her lunch box, but wrapped in tinfoil as well. The Department Manager was notified of this. The outcome, as you may have guessed . . . a warning, nothing more. This minor reprimand implicates the Department Manger as well and is a signal that just about any behavior will be tolerated by Neiman Marcus. What a great signal to send to the ethical Sales Associates / Product Specialists who are losing sales due to the fact that individuals may purchase a number of high end product samples and testers online at reduced prices. This has a negative impact on Associates, Specialists, product lines and the revenue of Neiman Marcus.

Saturday, November 8, 2008

The Nordstrom Employee Handbook

The Nordstrom Employee Handbook

http://en.wikipedia.org/wiki/Nordstrom#Employee_handbook

For many years, new employees were given a copy of the famous Nordstrom's Employee Handbook – a single 5 x 8-inch (200 mm) gray card containing 75 words:

Welcome to Nordstrom
We're glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them.
Nordstrom Rules: Rule #1: Use good judgment in all situations. There will be no additional rules.
Please feel free to ask your department manager, store manager, or division general manager any question at any time.

However, new hire orientations now provide this card along with a full handbook of other more specific rules and legal regulations, as the way Nordstrom operates has evolved.

While it's true that new employees at Neiman Marcus receive a rather large handbook of rules and regulations, none of them address the daily situations encountered while working as far as interactions with customers and protocol among coworkers.

Neiman Marcus Rule #1 for Sales Associates: Do whatever it takes to make a sale as you are working for yourself  (commission based). No specific guidance will be provided at any level (who cares what goes on, as long as Dept. and Store goals are met).

I asked Ginger Reeder, Vice President - Corporate Communications, Neiman Marcus, the following question via email:

Is it true that there really is no protocol for Sales Associates, Product Specialists and/or Management at Neiman Marcus? Any information and / or guidance you could provide would be greatly appreciated. Thank You.

Her response: Not at all true.

Mrs. Reeder was unresponsive to the followup email below:

Mrs. Reeder,

The detailed listing on my blog most certainly is true.
I have added it below for your review although I suspect you know very well what's going on in your stores.

If there is indeed a protocol handbook of any kind for Sales Associates, Product Specialists, and/or Management it has never been seen or reviewed by any Neiman Marcus employee that I know of, which leads to the situations outlined below.

It would be very worthwhile, in my opinion, to send some sort of guide (or link to an online guide) to all Neiman Marcus Sales Associates as none of the situations below have been adequately addressed in any form.

I sincerely appreciate your response and am hoping that you will direct some energy to addressing the situation in the near future.

Neiman Marcus Employee HR Hotline

What is a Sales Associate to do when problems arise? The first step is apparently to bring the situation to the attention of Human Resources at the current location which is handled by HR telling the Associate to discuss it with their Department Manger who does nothing about it. So the cycle continues . . . Human Resources does not want any situation to escalate and perhaps reach someone beyond their store and the Department Managers don't like Associates going over their head to address unresolved problems. This is odd because if in either case they were concerned about someone above their level hearing about any problems they would simply make every effort to correct what's going on. Sadly this is not the case. What can the Sales Associate do next . . . call the toll free 'HR Hotline' to discuss their problems. In the specific case I have been told about contact with the 'HR Hotline' was made and the HR person scheduled a call back the following day to discuss the situation. The outcome was . . . no call back and none expected now after three weeks have passed. The result is that Associates feel as though they have nowhere to turn when real problems exist due to the complete lack of action at every level. I know the purpose of Human Resources is basically to make everyone 'feel' as though something has been done or will be taken care of. In all of these cases no attempt was made to address the issues brought by the Sales Associate, period.

Friday, August 8, 2008

Neiman Marcus Observations 01

Obervations on daily situations at Neiman Marcus as conveyed by a Sales Associate.

I constantly hear about situations such as the ones I have outlined below. I can't believe there is simply no procedure for sales associates, leading to constant confrontations among sales associates (often directly in front of customers), conversations with management and frequent trips to Human Resources.

I was told by a current associate when beginning to work with Neiman Marcus that it simply is the 'way it works' (lack of rules/procedure) in the sales associate culture and they were fine with it. Now a year later the constant struggle to resolve even the most basic issues on the sales floor is clearly counterproductive to the service expected at Neiman Marcus and leads to a decrease in the effectiveness of the sales staff and ultimately lowers the revenue of Neiman Marcus. It appears that some basic guidelines would eliminate unnecessary 'interpretation' of the non existent current regulations and foster an atmosphere of competition on a level playing field.

Following are situations and solutions to typical daily problems encountered by Neiman Marcus sales associates due to lack of procedure and lack of management. These issues cause unnecessary stress to sales associates which impacts sales performance, produces negative feelings by associates towards management and corporate and reflects poorly on the Neiman Marcus group.

These are the things I hear on a regular basis:

Situation 1
A sales associate (1) approaches a customer and asks if they may assist them.
The customer responds in the affirmative, requesting assistance.
The customer does not request any specific sales associate.
As the sales associate (1) works with the customer another associate attempts to engage the customer.
Solution 1
Upon seeing another sales associate working with a customer, no other sales associates should approach either the customer or initial sales associate for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate.
It is neither productive nor polite to ask either the initial sales associate or customer if they in fact asked for a different, specific sales associate.

Situation 2
A sales associate (1) approaches a customer and asks if they may assist them.
The customer responds in the affirmative, requesting assistance.
The customer does not request any specific sales associate.
The sales associate (1) completes a sale with the customer.
Moments later the customer decides to continue shopping and is approached by a different sales associate (2).
Solution 2
The initial sales associate (1) has no claim to any subsequent sales unless the customer once again seeks them out and/or lets the secondary sales associate know that he/she has been shopping with sales associate (1).
Upon seeing another sales associate (2) working with the customer, no other sales associates should approach either the customer or secondary sales associate for any reason.
The fact that the initial sales associate or other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek to continue shopping with the original sales associate (1).
It is neither productive nor polite to ask either the secondary sales associate or customer if they in fact asked for a different, specific sales associate.

Situation 3
A customer is not approached by any sales associate and works with a product specialist.
The product specialist works in a bay with specific sales associates, none of whom were available at the time the customer approached.
The product specialist calls over or is approached by a sales associate during the sale.
Solution 3
The sales associate working with the product specialist at that time receives the full sale.
Upon seeing another sales associate working with a customer, no other sales associates should approach the customer, sales associate or product specialist for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate.
It is neither productive nor polite to ask the sales associate, product specialist or customer if they in fact asked for a different, specific sales associate.

Situation 4
A customer is not approached by any sales associate and works with a product specialist.
The product specialist works in a bay with specific sales associates, none of whom were available at the time the customer approached.
Solution 4
The product specialist has her manager give the sale to Neiman Marcus.
Neiman Marcus receives the sale and no commission is paid out to any sales associates.
Upon completion of the sale, no other sales associates should approach the customer or product specialist for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate and has completed the sale.
It is neither productive nor polite to ask the product specialist or customer if they in fact asked for a specific sales associate.

Situation 5
A customer is not approached by any sales associate and works with a product specialist.
The product specialist works in a bay with specific sales associates, none of whom were available at the time the customer approached.
Upon completion of the sale, the product specialist or manager gives the sale to a sales associate of their choice who is working that day.
Solution 5
Both the manager and product specialist should be reported to Human Resources.
No sale should be given to any sales associate and the sale should be reversed and given to Neiman Marcus.
Neiman Marcus receives the sale and no commission is paid out to any sales associates.
Upon completion of the sale, no other sales associates should approach the customer or product specialist for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate and has completed the sale.
It is neither productive nor polite to ask the product specialist or customer if they in fact asked for a specific sales associate.

Situation 6
A customer is not approached by any sales associate and works with a product specialist.
The product specialist works in a bay with specific sales associates, none of whom were available at the time the customer approached.
Upon completion of the sale, the product specialist or manager gives the sale to a sales associate of their choice who is not working that day or is on vacation.
Solution 6
Both the manager and product specialist should be reported to Human Resources.
No sale should be given to any sales associate and the sale should be reversed and given to Neiman Marcus.
Neiman Marcus receives the sale and no commission is paid out to any sales associates.
Upon completion of the sale, no other sales associates should approach the customer or product specialist for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate and has completed the sale.
It is neither productive nor polite to ask the product specialist or customer if they in fact asked for a specific sales associate.

Situation 7
A sales associate (1) approaches a customer and asks if they may assist them.
The customer responds in the affirmative, requesting assistance.
The customer requests a specific sales associate (2).
The sales associate (1) lets the customer know that the requested associate (2) is available and walks them to that associate (2).
The initial sales associate (1) has no continued connection with the customer or sale.
Solution 7
Upon seeing another sales associate working with a customer, no other sales associates should approach either the customer or initial sales associate for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate.
It is neither productive nor polite to ask either the initial sales associate or customer if they in fact asked for a different, specific sales associate.

Situation 8
A sales associate (1) approaches a customer and asks if they may assist them.
The customer responds in the affirmative, requesting assistance.
The customer requests a specific sales associate (2).
The sales associate (1) lets the customer know that the requested associate (2) is not available because they have stepped out of the store for a moment (lunch etc.).
The initial sales associate (1) attempts to notify the requested sales associate (2) to allow them to work with the customer and/or asks if the customer would like to wait for the requested associate or continue shopping with them (1).
Solution 8
If the customer decides to wait for the requested sales associate (2) then upon returning the requested associate will receive the full sale.
If the customer decides to continue working with the initial sales associate (1) then the associates will split the full sale as the initial sales associate (1) did spend time with the customer.
Upon seeing another sales associate working with a customer, no other sales associates should approach either the customer or initial sales associate for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate.
It is neither productive nor polite to ask either the initial sales associate or customer if they in fact asked for a different, specific sales associate.

Situation 9
A sales associate (1) approaches a customer and asks if they may assist them.
The customer responds in the affirmative, requesting assistance.
The customer requests a specific sales associate (2).
The sales associate (1) lets the customer know that the requested associate (2) is not available because they are not working that day.
The initial sales associate (1) asks if the customer would like to return on another day for the requested associate or continue shopping with them (1).
Solution 9
If the customer decides to return on another day for the requested sales associate (2) then upon returning the requested associate will receive the full sale.
If the customer decides to continue working with the initial sales associate (1) then the initial sales associate (1) will receive the full sale.
Upon seeing another sales associate working with a customer, no other sales associates should approach either the customer or initial sales associate for any reason.
The fact that other sales associates believe that the customer may have or should have asked for them or if the customer has shopped with them before is irrelevant as they (the customer) did not seek any specific sales associate.
It is neither productive nor polite to ask either the initial sales associate or customer if they in fact asked for a different, specific sales associate.

Situation 10
A sales associate lets customers know that they need to make a specific goal and that they should buy a good deal of merchandise and simply return it to another store as it will not be taken off their 'numbers'.
Solution 10
The sales associate must be strongly reprimanded and notified that repeated offenses will result in termination.
Customers should never be made aware of sales associates goals or asked to buy merchandise in such a manner.

Situation 11
A manager constantly gives phone sales or in store sales unattached to any specific sales associate to a single sales associate.
Solution 11
The manager must be strongly reprimanded and notified that repeated offenses will result in termination.
Any/all unattached sales will be given to Neiman Marcus.

Situation 12
A sales associate (1) makes a pre-sale for a customer, either in person or via phone, and places the pre sale bag and slip in a back room on hold etc.
Another sales associate (2) believes strongly that the sale should be theirs although the customer did not ask for them.
The sales associate (2) contacts the customer to sell them additional items.
Sales associate (2) takes the pre sale slip completed by sales associate (1) and completes the sale and sends the products to the customer before sales associate (1).
The initial sales associate (1) sends out the items to the customer.
The customer returns the items from sales associate (1).
Solution 12
Once a pre sale has been made the customer may not be contacted again to discuss that pre sale by anyone other than the initial sales associate (1).
No pre sale tickets may be reviewed and / or used as a contact point by anyone other than a manager and the initial sales associate (1).
Contact of the customer by any sales associate other than the original sales associate for that pre-sale is prohibited.
The secondary sales associate (2) must be strongly reprimanded and notified that repeated offenses will result in termination.

Other Items

Goals To Nowhere
The management asks sales associates to make specific goals for specific time periods or events during the year. Sales associates receive no benefit from meeting these goals aside from a possible 'well done' from management. The managers receive monetary benefits, vacation packages etc.
What incentive do sales associates have to produce aside from their own financial gain?
Seeing management be rewarded for work done by associates and not in any way facilitated by management is demoralizing. Has the manager made sure all products are in stock / available at all times etc. or dealt with many of the above mentioned situations? In all cases the answer is no.

If The Numbers Are Good
Store Mangers see the 'numbers' from each department and believe everything is excellent as long as the numbers are good. The store manager doesn't review the methods of the department manager to see how each department can be optimized to increase sales. Department managers do not do anything aside from push their sales associates to make goals with no serious support or incentive. As long as the 'numbers' look good to the store manager, the department manager looks good etc. Why wouldn't Neiman Marcus want to carefully define and review procedures to maximize employee satisfaction, customer satisfaction and profit margins. From what I've heard, the Manger simply reviews the sales associate schedule done by the department coordinator and asks them to make goals, that's it. Management should sort out (in writing) the daily disagreements between sales associates based upon the complete lack of procedure and ensure product availability. If they are not doing these things the are simply clerical cheerleaders, making schedules and constantly reminding sales associates of goals.

HR and Management Ping Pong
Sales Associates going to HR on a regular basis about the problems mentioned above only to have HR place it back in the hands of the Department Manager who does nothing. As far as I can tell (from what I hear) both HR and the Department Managers do this so that upper management thinks everything is working smoothly. This forces Associates to use the Neiman Marcus HR Hotline . . . and I have yet to hear the results of such actions.

Ebay Sales
Large quantities of sample packets and / or full size 'gratis' items being sold on Ebay. It appears that Product Specialists and Sales Associates may be taking home far too many samples of expensive products and also purchasing multiple higher ticket items when they are on 30/30 in order to re-sell them. It should be easy to check which products are bought by which Sales Associates and Specialists and traced through Ebay. Only a single manager should be allowed to distribute samples although it may not be as quick as allowing everyone free access to samples. This is due to Associates and Specialists taking advantage of the situation and must be stopped. Customers may be purchasing these items at a discount taking revenue away from Neiman Marcus as well as from Associates who play by the rules.

Please share your experiences working in high end / luxury retail as far as management style, customer interaction guidelines, product specialists, and professionalism among sales associates.