Course 2 - 201 - Building An Effective Program

Question 1

What are some of the common factors that come into play when attempting to build an effective program?

Answer 1

A Clearly Defined Mission and Focus.

A Comprehensive and Clearly Articulated Plan.

Establishment of an Organizational Structure.

Efficient Documentation and Reporting Procedures.

A Quality Staff Committed to the Program.

The Full Support of Upper Management.

Strong Collaborations with Others.

Adequate Authority and Resources.

Engaging Training and Awareness Programs.

Appropriate Auditing and Internal Controls.

Compliance Mechanisms.

Accountability.

Feedback.

Question 2

Why is it important to look at the company and the loss prevention department from a historical perspective when attempting to build an effective program?

Answer 2

Historical perspective gives us something to build on. It gives us a better feel for what has worked, and how we can improve upon our successes. It provides a means to forecast possible points of failure, and how we can help to avoid repeat mistakes.

Question 3

Why is it important to see the loss prevention department as a part of the bigger picture?

Answer 3

We provide support to an entire retail operation that involves a wide array of functions and complexities that makes every organization distinctive and unique

Question 4

What are some of the different numbers that we should review when developing our program? Why?

Answer 4

Sales numbers will also serve as an important indicator for many key business functions, and provide deeper insights into the overall management and performance of the stores. There are many numbers worthy of our focus and attention (others might include operational compliance, employee turnover, etc.) that can provide clues into past performance issues and point toward future performance enhancements.

Question 5

What is performance?

Answer 5

Performance is a vibrant word that describes the act of beginning and carrying something through to completion.

Question 6

Why is it important that we review the history of shrink programs for our company when developing our program? What are some of the factors that we should consider?

Answer 6

n evolving retail industry not only requires adjustments and flexibility in our programs, but consistency in our message as well. The message sent through programs and processes helps to provide strength and stability, and also lends credibility to the department. Having a firm grasp on this historical characteristic of the program provides critical insights into opportunities and expectations for continued growth and development.

Question 7

What are some of the questions that we should ask when reviewing the success of various loss prevention tools?

Answer 7

how well have those resources supported the overall productivity of the department and the organization? How reliable have those assets been, and how well can they be expected to perform moving forward? How well have we been able to pinpoint unreliable assets and suppliers? Can we use historical data to predict reliability issues moving forward? Can we consolidate resources and/or services to enhance performance and reduce expenses? How can we manage those resources to achieve the greatest degree of efficiency and effectiveness?

Question 8

Why is it important to examine the historical shrink culture of the organization? What types of issues should we explore?

Answer 8

Shrink performance may be shaped by the tools and processes, but it is still driven by people. As a result, when we evaluate shrink performance, we also must examine the historical shrink culture as well. Has the loss prevention message been accepted by the stores? Is it threaded through the fabric of the organization? Why or why not? Does our program complement the culture of the organization as a whole? How well has the organization responded to loss prevention initiatives in the past? Have the people voiced concerns or offered suggestions? How were they received? In order for any loss prevention initiative to be successful, the people must be willing to make an investment and take ownership of the program. Reviewing past successes and failures can provide us with valuable guidance to help move the program, the department, and the company forward.

Question 9

What are some of the common ways that we can obtain industry-related information that can help us to develop our program?

Answer 9

Industry-specific studies can provide information regarding current and past shrink trends, average shrink results, company awareness and participation in shrink programs, budget information, the overall impact of shrink on the business, the use of data mining, EAS, CCTV and other technical systems, and other prominent problems and issues faced by retail companies.
Industry trade associations offer training seminars, product/vendor demonstrations, networking opportunities, social gatherings and charity events.
Publications and other media.
Networking.

Question 10

What are some of the common questions that businesses will ask when exploring business trends and performance?

Answer 10

What trends are shaping the retail business environment?
How will those trends affect the business enterprise of the future? How will they impact our organization? How will they impact our competitors?
How do we determine what products will best meet the needs of our core customer?
How do we identify and interpret sales patterns to meet the changing needs of the business?
How do we best evaluate growth opportunities by product, category and/or class?
How do we best design inventory flow to meet customer demand and the capital needs of the business?
How do we most effectively design merchandise presentation to optimize exposure, attract customers and sell products?
How will mergers, acquisitions, remodels, and similar projects impact a company’s growth? What are the potential benefits, challenges and drawbacks?
Does the company face any reorganization or downsizing issues? How might any potential issues affect the business?
How do economic growth and recession, employment trends, price stability and other economic factors impact the health of the organization?
How are social trends impacting the business?
How might changing trends in training and development affect the business?
How might potential leadership changes at different levels throughout the organization impact the business? How might we prepare for potential changes?
How can technological effectiveness help the company reach its goals?
How has information technology transformed the business? What types of systems will be incorporated into our management information systems?
How can we use technology management and planning to help optimize our information technology systems? How will this influence our decision making?

Question 11

What are demographics? How can studying demographics impact the business?

Answer 11

Demographics are the statistical characteristics of human populations that are used by retail organizations to identify market areas.

Question 12

How do we go about collecting and analyzing the right information as we look to develop our loss prevention program?

Answer 12

We should always start with our evaluation goals, and the reason that we undertook the project in the first place. When collecting information we should be thorough, accurate, objective, and complete. When interpreting information, we must attempt to put the information in the proper perspective when comparing outcomes with goals and expectations. When reporting evaluation results, we must consider who the information will be shared with when determining the level and scope of those results.

Question 13

Why is the ability to build, nurture and develop relationships with others important when developing our loss prevention programs?

Answer 13

Our partnerships contribute to the groundwork for every project, program, and initiative, and are absolutely essential to building an effective loss prevention program.

Question 14

What is a partnership?

Answer 14

A partnership is a relationship characterized by mutual cooperation and responsibility. In the business world, it is often depicted by a joint agreement to pool talents and resources towards a common goal.

Question 15

What are some important steps that we should follow that can help us to receive management buy-in for our program?

Answer 15

Get involved in the business. Establish credibility. Have a well-defined plan. Communicate messages effectively. Tackle the issues. Get everyone involved. Follow through, and follow up.

Question 16

Buy-in is a product of ownership, and ownership is driven by understanding. Explain…

Answer 16

Employees at every level of the organization have a common need to feel important and valued, and information is empowering. Training is typically associated with job satisfaction, job security, and company loyalty

Question 17

What are some important characteristics of a good training initiative?

Answer 17

Focusing, persuading individuals to go the extra mile and further develop their careers.

Self-defining, allowing the employee to evaluate where they are and where they want to go through a process of self-discovery.
Complementary, further identifying what their position, company and career has to offer.

Fulfilling, presenting new dimensions on how they can contribute and emphasizing the critical role that they play in the success of the company.

Question 18

How can the relationships with our different vendor partners help us to build an effective loss prevention program?

Answer 18

Vendors can also help keep us informed on other aspects of the retail business, as well as the general practices, strategies and innovations of other loss prevention programs. They can serve as a liaison to help us develop additional contacts, provide a relevant and reliable source of training and education, and help us to stay contemporary with the industry in general.

Question 19

What are some of the physical and organizational factors that we should consider when constructing our program?

Answer 19

The type of retail organization we represent

The type of products we sell

The specific needs and interests of our customer base

The particular skills, abilities, limitations, and expectations we have for our employees

The number of stores we have

The size, design, and physical layout of the stores

Additional facility needs (distribution centers, district/regional offices, corporate offices, etc.)

The markets where the stores are located

General needs common to all locations

Special needs in designated locations

Question 20

What are some of the decisions that we must consider when searching for the technological tools necessary to help us build a successful program?

Answer 20

We must consider costs, which will extend well beyond the initial investment made in the product. We must consider the operational and technical support currently available within the company. We must consider product compatibility with current systems. Some products have very specific system needs, and won’t function properly (or with maximum efficiency) without the appropriate support. We have to consider how complicated or user-friendly the systems might be.We must consider how flexible the resource can be.

Question 21

What are some of the steps that we should take when assessing our human resource needs?

Answer 21

Step 1: We should define our current team, the number of employees, the roles and responsibilities, standards, and requirements. This would include a detailed account of the current structure and distribution of loss prevention personnel throughout the company.

Step 2: We must evaluate the actual performance of the department and our people against existing standards. We must determine the skills, knowledge, abilities, capabilities, characteristics, and leadership of our employees as compared to current organizational and departmental goals.

Step 3: We must identify the desired or necessary conditions for departmental and organizational success. This should focus on defined roles, structure, and standards as well as the skills, knowledge, abilities, characteristics, and leadership necessary to accomplish critical tasks.

Step 4: We must identify the gap between what we currently have, and what we feel we need to maintain a productive and successful department. Is the team performing as expected? What are the strengths? What are the problems or deficits? Are we where we need to be? What are we looking for? This would potentially account for current roles, future roles, promotions, reassignments, position eliminations, and new positions.

Step 5: If we don’t feel that we’re where we need to be, we must identify causes and what steps we need to take to close the gap. Is it training? Is it technology or other support? Is it staff adjustments? Is it taking the team or the program in another direction? Is it something else?

Step 6: We must evaluate potential solutions and growth opportunities. If team members are performing their job responsibilities effectively, perhaps the best solution is to leave well enough alone. If not, some appropriate training and/or other interventions may be called for to improve the effectiveness of the program. If the problem is not believed to be associated with a lack of knowledge and is primarily associated with a need for change, developmental opportunities may include strategic planning, performance management, team building, or departmental restructuring.

Step 7: We must identify priorities and importance. Our priorities should always serve the best interests of the company, the department, and our team. We must examine personnel decisions in terms of importance and urgency in view of our needs and requirements—what is cost-effective, what will have the greatest impact, and where we can achieve the greatest value.

Question 22

Why is it important that we send a clear message regarding the LP program?

Answer 22

Rather than simply spewing the details of our program, it is vital that we send a clear message to our audience regarding how our program and our department will interact with and complement the business, voicing our support and our intention to enhance the overall operations and profitability of the company

Question 23

What are some key areas that can help make our communication efforts more effective?

Answer 23

Style of Delivery and Method of Speaking Content of the Message Timing of the Message and Frequency of Delivery Skill Sets

Question 24

What are some of the key questions that we should ask when making outsourcing decisions?

Answer 24

What are the costs of the agency vs. the costs of internal staff time and resources? How much more efficient will this make our department? How compatible is the product or service provided with our specific needs? Are there any additional long-term or short-term costs? Do we have the resources or skills to do it on our own? What might it cost us if we don’t outsource the service? Do we want to accomplish a result that is better, faster, or cheaper?

Question 25

What are some of the core objectives of our training and educational programs?

Answer 25

We want to communicate a consistent message that is informative and effective. We want to engage employees, holding their attention and sparking their interests. We want to maintain an atmosphere that is cooperative, supportive, and mutually beneficial. We want our educational partnerships to result in measurable improvements in shrink performance and the overall performance of our employees and our business.

Question 26

What are the basic components that set the tone for our training initiatives?

Answer 26

. It should effectively explain a policy, procedure, or practice rather than simply stating what it is.

Question 27

Ultimately, what is the goal of our Loss Prevention Awareness Programs?

Answer 27

It offers a viable explanation as to why it’s important to prevent these losses. A truly successful program will achieve a shift in behaviors and attitudes that will enhance the approach towards the subject of loss prevention and the overall quality of the organization.

Question 28

Why is it important that the members of our loss prevention team have a balanced retail education?

Answer 28

Clearly, the individual must be responsible for their own personal growth and development. Individual team members must be held accountable and must demonstrate the skills and abilities necessary to be successful. However, we still carry the responsibility to provide our team the tools they need to be successful. Expectations should remain high—but practical and reasonable, demonstrating an atmosphere that strives for quality while providing opportunity and support.

Question 29

Why is continuing education so important for team development?

Answer 29

The need for continuing education and career development is paramount to stay one step ahead of the competition

Question 30

When initially developing a Loss Prevention Training program, from a global perspective where should we focus our priorities first?

Answer 30

Every store must benefit from our support and reflect our mission, and we still must be consistent in our message and proactive in our approach. But we want to reduce company shrink by first concentrating efforts and resources in those areas where we feel we can make the greatest gains and have the greatest impact on the business.

Question 31

How can identifying and analyzing specific trends allow us to focus our training resources?

Answer 31

Different strategies and different tools are necessary depending upon where we want to concentrate our attentions. Designing the program to attack our greatest needs grants the best opportunity to make a significant impression.

Question 32

What are some of the factors that will help establish store inclusion in a Target Store Program?

Answer 32

High risk locations (generally those that for any number of reasons are considered more prone to theft, robberies, and/or other types of crime) may also be included in the program. This may include stores that have a historical tendency to experience shrink issues for various reasons.

Question 33

What are some of the programs/solutions commonly included in a Target Store Program?

Answer 33

Stores may benefit from a variety of solutions, such as electronic article surveillance systems, CCTV systems, increased staffing levels, refund management systems, burglar alarms, roll-down gates over windows, and a host of other tools.

Question 34

What are some key factors that will influence our ability to sustain an effective loss prevention program and maintain effective outcomes?

Answer 34

those goals should also be specific, relevant, and measurable; and must align with the values and culture of the organization.

Question 35

What are some of the "truths" involved in sustaining an effective loss prevention program?

Answer 35

The program must make the best use of available resources, using those resources wisely and in the best interests of the program and the company as a whole. Programs that demonstrate the ability to support multiple initiatives will be those that have the greatest potential for long-term success. We must show the ability to sustain a viable program without taking away from the other needs of the business.

Question 36

Why is it important that we are able to measure the success of our loss prevention program?

Answer 36

measures can be used to demonstrate the results of various program initiatives, show how these results benefit company objectives, justify resource allocation, identify strengths and challenges, spark new ideas, provide tangible feedback, promote accountability, motivate our employees, and enhance the ability to communicate.

Question 37

What are some of the key principles that should be implemented as part of our measurement system?

Answer 37

Focusing on outcomes, metrics should help us understand how the program contributes to the success of the department and the company. Key metrics and indicators should be SMART (Specific, Measurable, Actionable, Relevant and Timely). Measurement systems and approach should be simple, easy to use and understand, and cost-effective to ensure sustainability. Our metrics and approach should provide a positive contributor intended to help improve performance. Metrics should attempt to measure indicators that identify both short-term and long-term objectives. Program metrics should focus on internal trends before external benchmarks. Once internal trends are understood, external benchmarks will be more meaningful. To keep results meaningful and relevant, the performance measurement system should be reviewed and improved on an ongoing basis.

Question 38

What are some common ways that companies can keep their employees and management teams actively involved in the loss prevention program?

Answer 38

Incentive programs are often used to boost profits, drive sales, and increase employee satisfaction.

Question 39

What are some important questions that can help us to determine the best approach?

Answer 39

For an incentive to be truly meaningful, it must have some real value to the employees, and be proportionate to the achievements made. Incentives don’t necessarily have to be monetary to be meaningful, but should offer employees inspiration and encouragement for their performance, and show them that they are an essential part of our team. Incentives should reflect the amount of effort that it takes to earn them. They should represent a significant enough value to make a difference and be worth the effort to achieve. Guidelines that determine how incentives will be earned should be defined in such a way that there is a clear understanding of what will be expected to earn the incentive. The incentive should require effort to achieve and should represent a direct correlation to intended objectives. Reward programs should provide acknowledgement in a timely manner following incident resolution so that the award is clearly associated with the desired behavior. For example, bonuses for improved shrink performance might be awarded soon after inventory results are obtained, or at review time. We want the association to be clear, showing the effort was valued and appreciated.

Question 40

What are some typical questions that must be answered in order to help keep our loss prevention programs progressive and meaningful?

Answer 40

How can we better assume a more permanent existence in the company culture? Where do we fit in? How can we better fit in? How do we stay contemporary with the needs of the business? How do we best determine what those needs are? How will we become better business partners? What kind of program do we want to run? Do we have the resources necessary to keep the program effective? Do we have appropriate staffing? Does the team have experience executing the specific type of program that we want to establish? What internal resources can we use? How do we best use those resources? What external resources do we need? What sources can best and most cost-effectively meet those needs? Which provide the best products? Who is providing the best service? How do we keep vendors educated about our needs? How can we enhance these partnerships? How do we make our internal team better and more productive? What types of staff training should we be providing to help improve the program overall? What types of awareness training programs are best suited for our company employees? Which will be most productive? Which have been most successful in delivering our message? How do we keep associates engaged? What costs are involved in implementing and maintaining our program? What is the most effective way to balance costs and results? How do we continuously build and maintain program credibility? How do we expand employee involvement in all aspects of our program? How do we get the word out about our program so we can recruit the best candidates? How do we make our program better?

Question 41

QUIZ QUESTION: As a Regional Operations Manager that has been charged with helping to open a new market, you are asked to provide statistical characteristics pertaining to the demographics of the new market. What is the primary reason why this information is considered valuable to the company?

Answer 41

a. It is used to identify the primary customer base – who they are, where they live, and how likely they are to purchase the products that the company is selling.

Question 42

QUIZ QUESTION: As a new Director of Loss Prevention, you have determined that an important aspect in the development of the loss prevention department is putting together an effective Loss Prevention Awareness Program. Ultimately, the goal of this type of program would be:

Answer 42

d. Providing employees with a shift in insight and understanding of LP as well as modifying behavior

Question 43

QUIZ QUESTION: A successful loss prevention program requires effective communication between the stores and the loss prevention department. This requires strong leadership that:

Answer 43

a. Shares perspective and understanding; and the value of good listening skills