Kudler Fine Foods is a specialty foods store in the San Diego metropolitan area. Like many businesses, Kudler must adapt to the changing needs of the market and the organization itself. The sales department of Kudler Fine Foods faces the need for changes within its operations. These changes will provide important opportunities for the organization. There are four dimensions that will manage this change and apply specifically to these modifications. The project management approach allows for control of the change and support for this proposal comes from expected return on investment.
Kudler’s next enterprise is following purchase behavior of individual customers and encouraging large incentives with a loyalty points program (University of Phoenix, 2011). Tracking this information will allow Kudler to better assist its customers and offer products and deals that are best matched to its customer’s needs. Being a specialty store, the Kudler customer is most concerned with the quality of the product and its uniqueness and availability in the local market.
To match the tastes of its customers, Kudler’s loyalty program offers its customers with rewards such as high end gift items, airline first-class upgrades, or other specialty foods (University of Phoenix, 2011). In order to adapt to this new incentive program, the sales department at Kudler is going to need change. The sales department must add another program to the repertoire of sales at Kudler Fine Foods. Pushing the loyalty program needs to integrate itself into the everyday sales message. In order for the program to become successful and achieve its goal of increasing revenue, the sales department eeds to be on board with the changes.
There is a need for increased training surrounding the loyalty program and its benefits and offers. A bonus program for employees that garner participation by customers in the loyalty program is also a tool that can assist in implementing the change. There are four dimensions of change that leaders must consider when implementing a successful transition or change. Strategy, resources,systems, culture and their interrelated components makeup the key elements of change management as it relates t using the project management approach.
Linking the dimensions f change and the project management approach allow the organization to proceed in a systematic and organized manner that ensures performance gals and objectives are met (Leban & Stone, 2008). Assessment of the needs of Kudler Fine Foods reveals a need for increased training in the sales division regarding the loyalty program. The new way of operating in the sales department leads to learning about what the new organizational objectives really are and what they will demand as far as attitudes, behaviors, and skills.
This learning process and interaction between dimensions of change eventually align the organization’s culture and strategy (Leban & Stone, 2008). The project management approach slows control over the development of the changes and adds flexibility for the plan to evolve as the organization sees fit. Constant monitoring of the plan can keep alignment between time, costs, and quality objectives. The comp,any is also interested in the return on investment and an deviation from this expected result. Kudler Fine Foods expects to increase revenue from its loyalty program.
Tis may only occur f the entire organization is aligned on the objeives and proper training is given to employees in the sales department. Investing in the training for sales as well as offering bonus incentives aims at motivating employees to see how the loyalty program can improve customer satisfaction and also benefit employees. By taking the time to invest in employee knowledge and skill level, they can feel the support from upper management. Tips program is being rolled t with the support ad backing of the organization with the intent to help employees excel and succeed. The loyalty program itself has an outlined expected revenue lift.
Quarter one to include employee training expects an initial revenue lift of . 25%, followed by . 50% in quarter two, 1. 75% in quarter three, and 2. 25% for the fourth quarter (University of Phoenix, 2011). The expected revenue lift totals 4. 75%. This return is expected to come directly from the frequent shopper loyalty program, a direct result of the motivated sales people behind it. Today’s global economy and business world is changing rapidly due the redesigning of systems to reduce costs, the need to develop products faster, and the focus on increasing customer satisfaction..
These types of changes support the use of project management as a way to introduce change to an organization. Kudler Fine Foods may utilize this approach for transitioning its sales department into an increasingly customer-oriented fashion. Not only will the company seek higher quality products better matched to its customer’s needs, but it will provide the necessary training for its employees to be successful. Sales will be trained on these loyalty programs, including in-depth training on data analysis. The management of this change is an integral component to the future success of Kudler Fine Foods.