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Raleigh & Rosse
Transcript of Raleigh & Rosse
Michael Raleigh and Conor Rosse
1903 Saddlery and Equestrian Shop
Customer Service and High Class
1920s – Luxury Imports
Class Action lawsuit
Forcing employees to work “off the clock”
Double unpaid hours plus damages
Watkins Settlement Decisions
$200 Million Cost
Substantial Change to “Ownership Culture” and SPH
Leadership in the Trenches
Where is Brian Posse coming from when designing the new HR policies and processes?
What would be the benefits of effective Manager/ Sales Associate leadership by Upper Management?
What might Podsakoff, et al. foreshadow to Brain Posse before developing his version of non-owners “Ownership Culture”?
Pay the settlement
Perform a complete overhaul of the compensation program
Efficiency to Customer Service
NPS (Net Promoter Score)
Consider time and seasonal traffic in goal setting
Sales to Customer oriented (roots)
Began after WWII
Before goods were custom ordered
1980’s Luxury Retail Stores
1995-2007 Global Sales Doubled
2009 Global Sales
In 2009 U.S. Largest Luxury Market
Expansion of merchandise and retail stores.
Peak Revenues 2007
Top 100 Employer 2002
2005 Negative Press
Linda Watkins, CEO 2007
“Extraordinary Customer Service”
$63,000 Avg Salary
2008-2009 Negative Sales
2010 Labor Lawsuit
Maintaining Core Values
New hiring and commission standards
Sales Per Hour (SPH) System
Use of Contingent Rewards
Transactional Leadership in R&R
2009 - $412 SPH
Difficult but attainable goals
Above SPH - 7.35% Sales Commission
Below SPH - Hourly Wage
Pay the Settlement Costs and leave the system as is
Perform a complete overhaul of the management and pay systems.
Leadership in the Trenches
Misconceptions and Administration of Leader Reward and Punishment
What misconceptions did Brian Rosse have about leader reward and punishment when developing the SPH program?
What did the SPH program excel at in regards to rewarding and punishing the sales associates and managers?
What could Brian have done differently to the SPH program to effectively administer positive and negative feedback?
Employees Rewards Gone Wrong and Right
Problems with SPH
Poor HR Investigations