Raleigh &Rosse

Measures to Motivate
Exceptional Service

1715075060 (Ehsaan)
1715077060 (Mahmud)
1715132660 (Shabnam)
Industry Background (Key Facts)

• The industry bloomed in US after WWII. Previously, goods were custom

ordered from Europe
• 1980’s Luxury Retail Stores acquisition by fashion/luxury giants
• 1995-2007: Global Sales Doubled
• 2009 Global Sales - $214 Billion
In 2009 U.S. Largest Luxury Market ($57 Billion)
• 1950s-1980s
Expansion of merchandise and retail stores
Company Background (Key Facts)

• Founded by Michael Raleigh and Conor Rosse

• 1903: Saddlery and Equestrian Shop
• 1920’s – Additional Luxury Imports
• 1980’s - leading Luxury Retailer with exceptional Customer Service and
Highly Rich clientele
• 2002 - Top 100 Employer
• 2005 - Negative Press (Fortune Magazine article)
• 2007 - Peak Revenues of $524.2 Million
Rayleigh &Rosse’s Customer Service
• Impeccable customer service and
loyalty was a core value
“a calling, a • Managers at R&R were meant to
vocation to serve hire, train and continually motivate
sales associates
our clients at the
highest level of • Sales associates were vital in this
company
devotion”
• In many occasions, they were more
than a sales associate
R&R’s
Ownership
Culture
A revamp in the company’s
culture happened in 1992 in
order to make sure new team
members were capable of
carrying the firms values.
Measuring SPH


Selling and Non- selling hours

Selling Hour - Attending Customer on sales floor.

•Distinction is often vague and confusing.

Non-Selling Hour - Off floor work such as

restocking merchandise and attending meetings.
•Recoding non-selling hour would decrease SPH
Cons
 Intensely fierce Work Environment
▪ Sales contest
▪ Managers read customer testimonial letter publicly
▪ Repeated honorees recognized as “All Star”.
▪ Pressure lead to “Sharking”
 #'s are not the only way to judge customer satisfaction and employee
success
 Unfair wage policy
 Favoritism of top performers
 Peer pressure to not report hour
 Organizational culture became "Every man for themselves"
Broad Line Impact

• Store managers overlooked employee complaints

• Fortune Published article criticizing R&R practices
• Sued for unlawful termination (2004)
• Investigation by New York Department of Labor
• Violation of State wage and hour law
Other economic
factors
1. Recession
2. Growth in market
3. Operational framework redesign
4. Alternative approach in performance
analysis
 • Pros:
R&R will maintain its harmonious
Alternative Course #1 operations and will recover once the
recession is over.
Status Quo or Continue with
the Current HRM Process
• Cons:
Watkins will continue with its The current system may once again
produce lawsuits towards the
current process, culture and company
performance management
system.
Elicited behavior might impact the
company negatively amongst its
employees
 • Pros:
Alternative Course #2 Watkins will prevent future lawsuits
related to the SPH program
Improve the SPH program as The overall behavior will shift to a
per state laws healthy competition rather than
“sharking”
Watkins will improve the
current SPH program as per
minimum requirement of the • Cons:
state law. The company will still be affected
by the current economic downturn
and loose more profit.
 • Pros:
Watkins will prevent future lawsuits
related to the SPH program.
Alternative Course #3 Watkins will help the company
Change the current performance from further losses and cope with
management system
the current economic downturn.

Watkins will change the SPH and

• Cons:
create a new performance
Watkins will encounter huge
management system like the resistance within the company
balanced scorecard and other since the SPH is a time tested
evaluation programs. program.
Recommendations
• Improve the SPH program
• Restructuring the unprofitable company
stores.
• set up a strategic plan for long run through
integrative HR & CRM ERP
• Employee Engagement to achieve OCB
through POS
• A better HR supervision & periodic reporting
to management as per employees’ concerns