“Tell me how you measure me, and I will tell you how I will behave”
The way we measure functions can have some unintended consequences.
Conflicts between sales and planning teams can occur due to different goals and objectives.
These conflicts can lead to issues such as not having enough well-selling items or running out of cash to buy other items.
To prevent these conflicts, the retail company needs to align the key metrics for the Sales and Planning teams.
Identify metrics that are important for both teams and align them with the goals of the company, such as inventory turnover and stock-out rate.
Additionally, having a clear operating strategy, call to action and corporate mission can help teams understand the bigger picture.
Anger and Fear give you bad advice.
Don’t follow it.
Our thoughts start with an emotion.
Our brain then creates a story or perceived-fact pattern that explains our feelings. This leads to confirmation bias.
Emotions like fear and anger are valuable signals.
But the rational stories that the brain creates to justify these emotions can prevent us from taking action. And limit our potential.
By being aware of this, we can recognize when fear and anger is giving bad advice.
And choose to move forward despite them.
For example,
A retailer may be feeling fear about expanding business into a new market. He may be unsure about how their products will be received and if they will be profitable.
But by taking a deep breath, the retailer may recognize that this fear is just a prediction. There is a chance that the expansion will be successful and lead to growth for the business.
The retailer, thus, decides to move forward with the expansion despite their initial fear.