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Tesco:
Streamlined New-Store Opening
With
fierce competition in the High Street, leading supermarket chains
constantly
strive to gain a commercial advantage over their rivals. Tesco
builds
more than 20 new stores in the UK each year, so any savings in terms
of the
time or cost required to open new outlets have a direct effect on
the company’s
bottom line. Tesco commissioned Atticus to create an ‘enterprise
map’ of
its entire new-store opening process, and to identify where improvements
could have an immediate impact. Atticus completed the resulting
project in four weeks – an incredibly short time, given the
intense activity
involved – and Tesco was delighted with the outcome.
Out
in Front
The
supermarket chain Tesco is engaged in an on-going store-opening
programme
designed to maintain its market-leading position in the UK,
currently opening more than 20 new stores annually. The construction
of a new store is relatively
straightforward, but the overall process – identifying suitable
sites, acquiring
land, obtaining planning permission, and so on – is extremely
complex and
lengthy.
It’s
crucial for Tesco to make this process as efficient as possible,
because the sooner
a new store is open, the sooner it can win customers and generate
revenue
to start providing a return on the company’s investment.
Tesco
initiated a project called PROSPECT to identify where information
technology
could enhance operational performance, and where Lotus Notes in
particular
could improve workflow procedures. Tesco already had a fully documented
check-list for the new-store opening process, but PROSPECT project
manager Conway Daw describes it as more of a ‘to-do’ list,
rather than a complete
understanding of the process.
PROSPECT
had three aims, as Conway Daw explains: "We wanted to map the
process
and measure the workload involved in site acquisition and building.
We also
wanted to understand what aspects of the process would benefit from
IT workflow
support. Thirdly, as Tesco becomes a global company, we wanted to
understand
the process in the UK, so that we could apply the model in other
parts of
the world in which the company is expanding." Tesco
commissioned Atticus
to facilitate its understanding of the process-mapping element of
PROSPECT,
and to enable it to maintain its own process maps in the future.
The
Atticus Approach
Atticus
devised a three-prong strategy: to develop a process map of the
existing new-store-opening
process to identify any limitations or conflicts; to use this map
to create
an ideal future model; to enable this model to be automated within a
workflow/Lotus
Notes environment as effectively as possible. It was the first prong
of these
three that was completed within four weeks.
One of
the keys to Atticus’ success was that it actively involved Tesco
staff at all stages,
encouraging them to identify problem areas for themselves rather
than being
preached to. This helps employees to feel they have a stake in any
eventual solution.
Atticus’
vastly experienced consultants operate by listening and seeking to
understand
the valuable input of employees at the sharp end of the business.
They
reflect what they have heard and represent their understanding
graphically stage
by stage.
The
Tesco Challenge
Atticus
began by organising in-depth workshops involving a cross-section of
Tesco
staff from all departments and at all levels, to derive a clear
understanding of
the new-store opening process. A further series of workshops
produced an outline
Enterprise Map, which was input into the process modelling software,
producing
a large-scale first-pass map of the complete process of opening a
new Tesco
store. The map was displayed publicly in Tesco’s property offices,
and employees
were encouraged to offer their own input and make constructive
comments.
The
resulting feedback led to a second series of workshops at which
revisions were
incorporated into the initial map, and the process was repeated.
Second and third-generation maps were also publicly displayed. The
final map consisted of
a detailed display of the full, core store-opening process, with
organisational structures,
IT infrastructures and management decision points overlaid.
Once
Tesco’s employees had agreed the final iteration of the process
map, Atticus
produced a ‘hot-spot’ report, highlighting key areas where Tesco
could improve
its planning of new-store openings. At a concluding workshop,
Atticus worked
through these hot-spots with key Tesco managers, helping them to
identify
where they could commission tactical projects to improve operational
effectiveness.
Conway
Daw, project manager for PROSPECT, speaks highly of Atticus’
involvement
in Tesco’s process mapping activity: "The consultants came
across very
well and were very comfortable with the scope of what we were trying
to do.
They
engendered a great deal of excitement and enthusiasm with
departments that
aren’t always noted for such responses! They were extremely good
at probing
from different angles to obtain the information they required. They
understood
our environment and processes very quickly. They had also thought
very
carefully before they even came to us about what a new store opening
must involve."
In the
event, Atticus’ extensive input on PROSPECT was very timely for
Tesco’s property
services division: "It coincided with another initiative from
Head Office to review
the whole way in which we work," says Conway Daw. "It gave
us a significant
head-start as a result. We’re now considering whether the huge
number of
schemes we normally look at before we finally settle on a site could
be reduced."
The
acid test in any situation is whether a customer would recommend a
supplier to
other people, and Conway Daw is unequivocal in his verdict: "We
would be very
happy to use Atticus again for appropriate projects, and to refer
them.
Atticus
worked on a fixed price, and delivered to time and to budget to the
level of quality
that I was expecting. They worked with us, not under wraps, which
was very
important. I have no doubt that they would apply the same level of
professionalism
to taking the model further, should we be able to justify it."
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