What Makes a Great Place to Work [Case Studies from Tully’s and The Bon Marche]

What Makes a Great Place to Work

Here are two examples of defining documents, designed to communicate to employees what a great place to work looks like, and how the business organization intends to improve the workplace.

Tully’s Coffee Case Study

Objectives:

• Get input from management at Tully’s stores
• To list all of the policies and activities that a great employer has or does
• To compile a report and assess Tully’s status as a great employer

Ten areas to help Tully’s be a great place to work:

1.  Business Plan Clarity and Accurate Financial Reporting:

In March, we spent a lot of time discussing Tully’s business plan. The quarter ending June 2011 was the first time for quarter reporting in our new P&L format.

NEXT STEPS: Continued need for improvement in execution of our business plan and much more refinement of our accuracy of financial reporting.

2.    Clear Job Descriptions:

Job descriptions have been rewritten for the entire organization.

NEXT STEPS:  Review job descriptions with all store managers to ensure they are accurate and understood.

3.  Clear Career Path Progression:

To understand how someone can join Tully’s as a barista in training and move up through the organization to store manager and district manager or into the corporate office.

NEXT STEPS:  No plan yet.  We need to clearly define this progression.

4. Salary Progression:

How should our pay increases work? For our hourly staff, are pay increase milestones after their training period, after working nine months, etc? When does the wage top out?

For our managers, should salaries relate to store sales volume levels or responsibility levels – for example, if a manager runs a training store – or based upon a manager’s years of experience?

NEXT STEPS:  No plan yet.  We need to clearly define this progression  and how decisions are made.

5. Clarity of our Bonus Program:

We have not yet established a bonus program that clearly connects which operational elements store managers can control toward earning a bonus, either through good planning, or great execution.

NEXT STEPS: We are working to re-design our bonus program.  We have not yet figured out how to get accurate information to support areas you can control, such as product waste and COGS business, and some of our revenue plans are not in line with reality. We need your input to complete a quality bonus program.

6. A Clear Review Program:

Prior to April and May 2007, reviews were hit and miss and done on anniversary hire dates. We now have a unified, company-wide approach and have made changes to how you are reviewed, based upon how you perform your job description.

NEXT STEPS: To have the organization of stores do a mid-year review in early October 2007.

We completely redesigned our employee benefits and launched the program in May 2007.  It is with great appreciation that we increased our overall enrollment by 160 people over 2006, with almost 100% being store managers, assistant managers, and lead baristas.  The company pays 75% and this program is “Best In Class.”  We now support employees with medical and dental benefits at a minimum of 17.5 hours per week.

NEXT STEPS: Enroll more employees.

8. A Great Training Program:

Our training program is being completely redesigned with the idea that all of us must become great trainers.  In fact, we will only succeed if we become a great training organization.  We need not only basic trainings, but great programs for managers, assistant managers, and lead baristas to help support your professional and personal growth.

NEXT STEPS:  We are working to have a complete program by spring 2008.

9. Annual Employee Surveys:

Great organizations listen to their employees.  This is demonstrated in both the exercise we are going through now to define a vision and get input, but also in a formal survey program.  We launched our first effort in February 2007.

NEXT STEPS:  Re-survey our organization in winter 2008.

10.   Legal  and  Other Issues:

Tully’s does business in an environment of ever-changing laws and governmental influence. By going public, Tully’s will be required to change some of our policies. For example, in California, there is a class action lawsuit against Starbucks that our legal team is watching closely. After it is settled, Tully’s needs to define how we should all proceed.

NEXT STEPS:  Respond to these changes with as open and clear communication as possible and define the issue so we all own it.

Conclusion:

We stated that we would be giving a 2% cost of living raise to our managers in July 2007. That would be the easy answer, but not the best one. It is my responsibility to look forward and tell you that the issues of a clear career progression, a clear salary progression, and a completed bonus restructuring, and some looming legal decisions need to be taken into consideration and we, together, will make the best decision. This will then allow us to open 20-30 new stores with clarity.

I asked the District Managers to discuss this letter and these ten areas of employment carefully with each of you, so that upon my return, all of us are on the same page as to what we are trying to accomplish and clear decisions are made with the big picture in mind.  I am proud of all of you and what we have accomplished together in the last ten months, and eager to celebrate our future successes!

Prepared by John Buller July 25, 2007

The Bon Marche Definitions:

EFFECTIVE LEADERSHIP

Effective leadership is having a clear vision, pursuing that vision with passion, and remaining focused and consistent.  Effective leaders are committed to honest communication, building a strong team, and fostering a caring work environment.

 EFFECTIVE LEADERSHIP  IS . .. .

1. Clearly defining and communicating each individual’s role in achieving the Vision.

2. Directing and supporting the organization.

3. Measuring and rewarding successful results.

CLEAR FOCUS AND EXECUTION OF MISSION AND VISION

Every employee clearly understands the vision and is accountable for their role in making it happen.

CLEAR FOCUS AND EXECUTION OF MISSION AND VISION IS . . .

1. Store policies are in line with the vision.
2. We invest in assets to support vision.
3. Feedback occurs to check vision bottoms­ up/top-down.
4. Success is rewarded.

QUALITY ASSOCIATES, ALL LEVELS

Quality exists because we have an organization of people with the requisite skills and attitude to accomplish the vision.

THE PEOPLE…

1. Include a stable core of productive players.

2. Are informed and highly skilled.

3. Are caring, dedicated, hard working, positively competitive, and have a desire to accomplish the vision.

4. Believe in a reward for performance system.

QUALITY, VALUE, FASHION-RIGHT MERCHANDISE

Quality, value, fashion-right merchandise is the primary reason that our customers shop at The Bon Marche. This selection meets the customers’ expectations by providing full assortments of distinctive, fashionable, fresh merchandise at fair prices.

QUALITY, VALUE, FASHION-RIGHT MERCHANDISE IS . .. .

1. Dominant assortments of premiere, core, and private label resources.

2. In-stock on “NEVER OUT” basics.

3. Competitively priced.

4. Presented in an exciting, friendly, and convenient shopping environment.

CREDIBILITY WITH ASSOCIATES

The Bon Marche maintains a consistent relationship with its employees involving open, honest communication which results in a shared understanding of its vision.

CREDIBILITY WITH ASSOCIATES IS .. . .

 1. All policies and procedures are understood and explainable.

2. Our environment respects the dignity of the individual.

3. Management communicates relentlessly on “what” and “why” .

4. The Union becomes our partner.

CREDIBILITY WITH CUSTOMERS

Credibility with the customer exists because their experiences with The Bon Marche are perceived to be fair, consistent, and to live up to the expectations we have created for them.

CREDIBILITY WITH CUSTOMERS IS . . .

1. Credible associates with a sensitivity to our diverse customer base.

2. Credible marketing demonstrated by our in­-stock position on all advertised items, store level price accuracy, and the absence of gimmicks.

3. Stores that declare service expectations to our customers, offer better service than the mass merchants, offer acts of service that often exceed expectations in clean, orderly, and fun to shop (Theatre) environments.