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5 Ways To Foster Employee Engagement In The
Manufacturing Sector
The Manufacturing sector comprises establishments engaged in the mechanical,
physical, or chemical transformation of materials, substances, or components
into new products.
Like all industry sectors, this sector is focused on finding ways to better manage
labour costs, while still being flexible enough to respond to changing market place
and customer requirements. Most manufacturers are seeking cost reductions but
one of the most important drivers to improve business performance is the
empowerment and engagement of the front line managers and employees.
Indeed, employees who are not engaged will affect the organisational
performance through higher absenteeism, higher turnover and lower
productivity.
A simple example of an engaged employee in the manufacturing industry might
be: at the end of a long and busy day, an employee could choose to use the last
minutes to either leisurely clean up or rush to make sure that one more shipment
has been loaded for another on-time delivery. The engaged employee would
commit that extra energy to do what is best because, he likes working in an
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environment where he feels valued, respected, secure, and safe as well as being
rewarded for his good job.
It can be challenging to engage employees in todays manufacturing
organisations, here are 5 elements that contribute to a highly engaged workforce:
1) Hiring the right people
Its essential to hiring employees who fit the job requirements, meaning those
who have the right skills and the experience but also tap into employees
identification with the organisation but also passion and commitment for the
industry. It is important to identify the applicants personal core values and
ensure that there is an alignment with the companys core values. High job fit is
achieved by effectively deploying employees' talents when making selection,
placement and promotion decisions. Selecting employees with strong
motivational fit for the job will lead the company to higher level of productivity,
quality, attendance and retention.
2) Engaging from the top
Another key element that contributes to a highly engaged workforce is the quality
of management. Engaged leadership is vital in the manufacturing industry,
leaders need to own and live the organisations values to encourage employees to
hold them too and they also need to have the right skills to lead with influence,not with control. Engaged leaders understand that their role is not to take charge
of all the decisions, but to be more like proactive coaches. They are able to inspire
others to share in their vision and purpose and influence them to join the
movement. They have tremendous influence over employees by enrolling them in
the business vision and delivering compelling and persuasive communications.
3) Empowering employees
Employees need to understand the vital role they have in working in the
manufacturing sector and why it is critical to future success. They must have clear
goals and know how they fit with the Companys bottom line to assimilate how
their inputs are related to the wider corporate picture. Creating and maintaining a
positive workplace culture based on openness, empowerment, integrity, trust,
collaboration and passion is undoubtedly among the biggest factors in enhancing
employee engagement in the industry. Indeed, by being transparent on the
evolution of established company goals, employees will show willingness coming
up with new ideas and initiatives. Besides, they will feel empower because they
have decision-making power in what they are doing. Give your employees a voice
and listen to what they say and let them the chance to give genuine feedback on
performance.
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4) Communicating internally, the cornerstone
Strong employee communications connects employees to the leaders vision and
company strategy. A culture of employee engagement only happens when
employees share and believe in the same vision, values, and objectives as the
leader and behave in a consistent manner with those beliefs. In addition having
an open and honest communication from leaders to employees, it is appropriateto set up communications channels to ensure employees are well informed. A
good way to make information accessible in the manufacturing company is
installing touch screen kiosks in the workplace. Other channels to consider are
regular team meetings, frequent briefing sessions following by focus groups to
ensure messages have been effectively understood, employees bulletins and
newsletters displayed on the touch screen kiosks. Finally, regular Employee
satisfaction surveys provide information on employees job engagement and
company commitment, as well as giving them the opportunity to make
confidential comments.
5) Recognising and personal growth
Outperform your employees by investing in specific training such as job training,
seminars, courses or further education that relate to the companys strategy. Give
employees opportunities to grow to successfully achieve company-wide goals.
Managers and leaderships also need training and development to be educated on
the company values and strategy. For new hires, development programme willensure that the values are applied in their daily work. To keep maintaining a
positive workplace culture, recognition and rewards are great motivators. When
an employee comes up with a new way of doing a job or an innovative idea to
enhance the workplace productivity, ensure that is properly rewarded. Most
importantly, ensure the reward is given publically so others can see that kind of
behaviour is appreciated and recognised by the company.
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How to use data science to grow your
restaurant/cafe business ?
Ideal time for applying and Data science to Restaurant Businesses: The
restaurant business in India, nay, the entire world has been a happy hunting
ground for many entrepreneurs, big or small. The sector is still seeing high
growth and a huge amount of investments, with new chains opening at a rapid
pace. For some of the older players though, the time has come to consolidate their
businesses and/or expand. This requires systematic management and oversight
to ensure a smooth transition so that the basic fundamentals on which their
businesses have been built is not scarified at the altar of growth. This is the idealtime for embedding Analytics into their everyday business processes.
How can Analytics increase revenues? The question that most Restaurant
owners would ask is how Analytics is going to positively impact their revenues.
There are many indirect ways in which Analytics can help restaurants make more
money, but for the purpose of this discussion, we will concentrate only on the
direct ones :-
A- Helps you understand your customers
Customizing offers for different parts of the day is an effective differentiating
strategy. Customers need to be led to believe that they should order certain kinds
of meals at certain times of the day, even though you maybe having an all time
favourite meal- like the English Breakfast running all day.
Running a business is also about conserving costs- when your data reveals that
your restaurant is not doing business at all, at either the early hours of the
opening or closer to your closing hours, you should think of changing the timings
this will reduce your electricity costs, reduce fatigue of employees etc.
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B- Increase the share of wallet of existing customers Where is the
Loyalty Strategy?
C- Removing slow moving items from your menu -When you have a long
menu card, it is important to analyze what people are consuming and what they
are not
D- Pricing Strategy
E-Menu Mix solution-Which items bought together contribute to maximum
sales? Create combinations of such items and offer discounts to drive up sales and
productivity.
Let us now look at the above mentioned aspects in greater detail.
A- Understand your customers
The most important aspect of any business is the ability to understand your
customers. If you know your customers well, what they buy, when they buy, how
they buy etc., half your job is done. When your business is small and your
clientele is limited, it is easy to remember your customers at a personal level,
often knowing what their favourite orders are. But, when your organization gains
scale and it is difficult to even recognize them by face it is important not to lose
track of that very attribute which helped you establish your business in the first
place - your ability to understand your customers ! When you have more than one
restaurant, the job becomes even more difficult. That is why you need to harness
the power of data. But before you do that, you must devise mechanisms to collect
the data on your customers. If you do not have a mechanism to collect data that
identifies your repeat customers- dont lose heart. You can still do a lot by
analyzing the POS(Point of Sale) data.
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Understand Customer Behaviour
Understanding customer behaviour is a good proxy to understanding your
customers. When you have hundreds of thousands of customers, ordering
different items from your menu cards, it becomes imperative for you to look at
groups of customers to understand their consumption behaviour. The data from
your POS systems can be analyzed to come up with segments based on differentkinds of consumption behaviour of people. One of the most popular
segmentations used in Analytics in restaurant businesses is the Trip
Segmentation.
Here is a hypothetical example of what different kinds of trip segments that can
be there in a restaurant business and how they can be used with tremendous
impact on the business.
In the above example one is able to analyze the data and come up with these
segments which split the population into meaningful segments. Once, the
segments have been identified and profiled, the next step is to devise strategies to
tap each of the segments for increasing revenues.
Let us pick up one segment for furthering our discussion on this: The Solo Trip
Segment. This segment provides opportunity for increasing sales with a bundled
offering. This can be done by identifying the most popular combinations that are
ordered by the rest of the segments along with the most popular items being
ordered by the this segment. The next step is to come up with a promotion,
offering couple of items together as a bundle/combo. This will help increase sales
and coax the solo item buyers to order another popular item from the menu.
Distribution of segments throughout the day By plotting the segments
across various times of the day, you may be surprised to find that the penetration
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of certain kinds of segments maybe more in certain day parts than in others. This
provides a great opportunity for differentiated offering/promotions in different
day parts, depending on the kind of customers coming to your store. It will also
help in kitchen management better, because you would be aware of what kind of
orders to expect at different day parts.
In the above hypothetical example, the occurrence of solo trips is maximum
between 15:00 to 18:00 hours and is the perfect time for the restaurant to
promote combo offers with the most popularly sold solo items.
Dashboards: Measuring your business real time
We may have all heard about the popularity of management dashboards and
maybe wondering what use they might have in the running of restaurants. On the
contrary, a dashboard for a restaurant is one of the most powerful tools that an
owner of a restaurant can have. The Management dashboard for the owner/top
management of a restaurant chain will help him get an immediate snapshot view
of the business in real time. Some of the very useful metrices would be:
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An example of a dashboard
Loyalty Strategy
For a business with a very high probability of repeat customers, it is interesting to
note that very few restaurant businesses in India have a loyalty strategy in place.
Having a loyalty strategy doesnt mean implementing a cash heavy loyalty
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program, replete with plastic cards and heavy discounting.
A loyalty strategy means:
Pricing Strategy
It is important to carry out a well thought out pricing strategy in your chain. You
should increase prices, but in a very strategic manner and by measuring the
impact of the price changes. There are two phases of the pricing strategy which
are critical. One is the pre-increase period when you determine the products for
which you are going to change prices and the other is the post price change period
where you need to measure the impact of the price changes on the customerbuying behaviour.
Activities:
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Identifying menu items for which price should decrease
Identifying menu items for which price should increase
Identifying menu items for which price should not be changed
The simple diagram above exemplifies how changes in price have affected
changes in revenue.
The gist of the learning from the above is as below:
Menu Mix Solution:
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Written by
The famous observation that beer bottles and nappies when kept adjacent to each
other, led to increased sales in retail stores, introduced a new concept of product
bundling/adjacency to the world of Retail. In the business of restaurants, the
closest corollary is that of menu mix.
When you find meals consisting of burgers, fries and coke are being served to
you at discounted price, doesnt mean that McDonalds is trying to push coke intoyour menu. It means that they are being customer first and have observed that
this one of the most popular combinations that people usually order and they
have institutionalized it for the benefit of customers, efficient customer service
(you save time instead of ordering individual items) and above all it drives
revenue as customers see an inherent value in the meals as they get something
else at a lower price than what they would otherwise have to pay.
Similarly in restaurants, menu mix should be analyzed and the most popular
meals should be bundled together and offered to customers at a lower price to
incentivize them to buy their favourite meals. This will increase loyalty of
customers to the restaurant, apart from driving more repeat visits from the
customers who would like to come back for their favourite meals at reduced
prices. The menu mix should only be done for the most popular meals and there
should only be a few combos on offer, else it will become complicated and make
the customers confused
Conclusion :
There is a big opportunity waiting to be utilized by the more entrepreneurial and
innovative restaurant owners. Whoever takes the lead will win. Soon, there will be
no other option but to innovate and devise strategies, keeping the customer at the
heart of all your decision making. The rate at which this space is growing, it will
be difficult for laggards to survive. Analytics provides the only solution to ensure
scalability, efficiency, keys to customer satisfaction and above all, increased
revenues.
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