Creating complete and accurate scorecards does not have to be a time consuming and grueling process, as many organizations may think. The benefits of understanding the value of your retail activities outweigh the efforts behind building your report, so it is important that you get started.
First, determine which decision makers within your organization should be involved in developing key performance indicators. This group of about five people should go through and evaluate each retail activity, to determine the costs of the activity, the results, and what the results would be with no activity at all.
For example, if on-shelf availability is an important focus for your organization, you need to determine what data sources you will use and what the acceptable performance thresholds are, to measure your data against. By analyzing reports that show store performance, it is easy to segment out the stores that are underperforming or over-performing and address them accordingly. If 98% is the acceptable threshold at Walmart, 100 stores are evaluated, and the results show that 68% are at or above that threshold, it is clear that you must take action to gain back lost sales on the 32 stores that are not meeting the threshold.
Every activity should be evaluated, to determine if it is successful, worthwhile or needs to be modified or eliminated. Compare it against your goals and projections. The best part about a scorecard is that all of this information will be apparent and easy to understand and is completely unique to your organization.
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