Case Study Description of Belk: Towards Exceptional Scheduling
With 24,000 staff and over 300 stores, Belk Inc. sought to replace its entirely manual labor scheduling system with an automated software solution from Reflexis. Belk hoped the upgrade would simplify scheduling, reduce time employees spent in non-customer-facing roles, and result in improved allocation of resources through the use of big data, thereby increasing sales productivity. Like many other retailers, Belk expected the benefits from automated scheduling software to be significant. But unlike other retailers who took an iron hand approach to push compliance, Belk's implementation permitted store managers "edit" the system to "fix" the "bugs" in the automated schedules-seeking not to replace labor but rather inform it. Belk commenced piloting the solution in May of 2013 and subsequently expanded the number of stores running the software to 50 over the course of 2013. Despite signs of initial success with the stores running the scheduling solution, Bass quickly began to notice a significant issue with the implementation: over 70% of shifts generated by the system were receiving manual overrides ("edits") by the store managers. Store managers believed the edits were necessary to remain responsive to local needs-and were, indeed, productive. Senior executives were skeptical, concerned that edits indicated resistance to productive change, and unsure of why Belk had spent so much time and money on an automated system only to have the stores override it. Having deliberately allowed store managers and lead schedulers to override the system, SVP Eric Bass (a retail store veteran who worked his way up to corporate) now needed to understand how and why they were doing so, and make sure that those edits were being made in a constructive manner. In a disagreement between human and machine, Belk allowed humans to win by design by giving them the right to edit the 'optimized' schedules. The case allows students to go deep into the question (qualitatively and quantitatively) and drive a detailed conversation about whether the result of Belk's flexible "edit" policy was a more or less effective implementation.
Authors :: Ethan S. Bernstein, Saravanan Kesavan, Bradley R. Staats, Luke Hassall
Topics :: Organizational Development
Tags :: Business processes, Change management, Corporate governance, Developing employees, Human resource management, Labor, Organizational culture, Performance measurement, Technology, Time management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "Belk: Towards Exceptional Scheduling" written by Ethan S. Bernstein, Saravanan Kesavan, Bradley R. Staats, Luke Hassall includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Belk Edits facing as an external strategic factors. Some of the topics covered in Belk: Towards Exceptional Scheduling case study are - Strategic Management Strategies, Business processes, Change management, Corporate governance, Developing employees, Human resource management, Labor, Organizational culture, Performance measurement, Technology, Time management and Organizational Development.
Some of the macro environment factors that can be used to understand the Belk: Towards Exceptional Scheduling casestudy better are - – technology disruption, talent flight as more people leaving formal jobs, increasing energy prices, challanges to central banks by blockchain based private currencies, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, etc
Introduction to SWOT Analysis of Belk: Towards Exceptional Scheduling
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Belk: Towards Exceptional Scheduling case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Belk Edits, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Belk Edits operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Belk: Towards Exceptional Scheduling can be done for the following purposes –
1. Strategic planning using facts provided in Belk: Towards Exceptional Scheduling case study
2. Improving business portfolio management of Belk Edits
3. Assessing feasibility of the new initiative in Organizational Development field.
4. Making a Organizational Development topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Belk Edits
Strengths Belk: Towards Exceptional Scheduling | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Belk Edits in Belk: Towards Exceptional Scheduling Harvard Business Review case study are -
Ability to lead change in Organizational Development field
– Belk Edits is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Belk Edits in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Belk Edits is present in almost all the verticals within the industry. This has provided firm in Belk: Towards Exceptional Scheduling case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Digital Transformation in Organizational Development segment
- digital transformation varies from industry to industry. For Belk Edits digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Belk Edits has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Effective Research and Development (R&D)
– Belk Edits has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Belk: Towards Exceptional Scheduling - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the Belk: Towards Exceptional Scheduling Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Ability to recruit top talent
– Belk Edits is one of the leading recruiters in the industry. Managers in the Belk: Towards Exceptional Scheduling are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Organizational Resilience of Belk Edits
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Belk Edits does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Belk Edits is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Belk Edits is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Belk: Towards Exceptional Scheduling Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Innovation driven organization
– Belk Edits is one of the most innovative firm in sector. Manager in Belk: Towards Exceptional Scheduling Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Belk Edits is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Ethan S. Bernstein, Saravanan Kesavan, Bradley R. Staats, Luke Hassall can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Belk Edits has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Belk: Towards Exceptional Scheduling Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Belk Edits in the sector have low bargaining power. Belk: Towards Exceptional Scheduling has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Belk Edits to manage not only supply disruptions but also source products at highly competitive prices.
Weaknesses Belk: Towards Exceptional Scheduling | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Belk: Towards Exceptional Scheduling are -
Workers concerns about automation
– As automation is fast increasing in the segment, Belk Edits needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Belk: Towards Exceptional Scheduling HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Belk Edits has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Belk Edits, firm in the HBR case study Belk: Towards Exceptional Scheduling needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Belk Edits has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Belk Edits even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Belk Edits is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Belk: Towards Exceptional Scheduling can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Belk: Towards Exceptional Scheduling that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Belk: Towards Exceptional Scheduling can leverage the sales team experience to cultivate customer relationships as Belk Edits is planning to shift buying processes online.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Belk Edits supply chain. Even after few cautionary changes mentioned in the HBR case study - Belk: Towards Exceptional Scheduling, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Belk Edits vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Belk Edits has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study Belk: Towards Exceptional Scheduling has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Belk Edits 's lucrative customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Belk: Towards Exceptional Scheduling, in the dynamic environment Belk Edits has struggled to respond to the nimble upstart competition. Belk Edits has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Belk: Towards Exceptional Scheduling, is just above the industry average. Belk Edits needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities Belk: Towards Exceptional Scheduling | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Belk: Towards Exceptional Scheduling are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Belk Edits is facing challenges because of the dominance of functional experts in the organization. Belk: Towards Exceptional Scheduling case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Belk Edits to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Belk Edits can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Belk: Towards Exceptional Scheduling, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Belk Edits can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Belk: Towards Exceptional Scheduling suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Loyalty marketing
– Belk Edits has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Organizational Development industry, but it has also influenced the consumer preferences. Belk Edits can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Belk Edits can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Belk Edits can use these opportunities to build new business models that can help the communities that Belk Edits operates in. Secondly it can use opportunities from government spending in Organizational Development sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Belk Edits to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Belk Edits to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Belk Edits in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Organizational Development segment, and it will provide faster access to the consumers.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Belk Edits in the consumer business. Now Belk Edits can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Belk Edits has opened avenues for new revenue streams for the organization in the industry. This can help Belk Edits to build a more holistic ecosystem as suggested in the Belk: Towards Exceptional Scheduling case study. Belk Edits can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help Belk Edits to increase its market reach. Belk Edits will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Threats Belk: Towards Exceptional Scheduling External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Belk: Towards Exceptional Scheduling are -
High dependence on third party suppliers
– Belk Edits high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Belk Edits is facing in Organizational Development sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Belk Edits needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Organizational Development industry regulations.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Belk: Towards Exceptional Scheduling, Belk Edits may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Organizational Development .
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Belk Edits needs to understand the core reasons impacting the Organizational Development industry. This will help it in building a better workplace.
Consumer confidence and its impact on Belk Edits demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Belk Edits can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Belk: Towards Exceptional Scheduling .
Easy access to finance
– Easy access to finance in Organizational Development field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Belk Edits can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Belk Edits.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Belk Edits with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Stagnating economy with rate increase
– Belk Edits can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Belk Edits business can come under increasing regulations regarding data privacy, data security, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Belk Edits will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Belk: Towards Exceptional Scheduling Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Belk: Towards Exceptional Scheduling needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Belk: Towards Exceptional Scheduling is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Belk: Towards Exceptional Scheduling is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Belk: Towards Exceptional Scheduling is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Belk Edits needs to make to build a sustainable competitive advantage.
