SWEDOL in brief
Swedol is a market-leading retail chain for professionals in the construction, contracting, haulage and industrial sectors. Its 50 or more Swedish retail stores are where professionals look for electrical goods, tools, hydraulics and consumables.
In the autumn of 2015, the challenge consisted of achieving an extension in line with an ambitious growth strategy. There were also challenges in establishing "a truth" and reliable outcomes in follow-up documentation, as well as increasing the use and impact of the Qlikview business intelligence system previously invested in.
The 6 most important drivers
Because the key to a successful growth strategy was to focus more sharply on what drives the business, we identified the six main drivers stores should focus on to achieve increased sales. Each store could choose between two or three of these drivers to focus on during the coming year based on the individual store's circumstances and requirements. The drivers are monitored monthly in each store's dashboard to ensure a consistently high level of activity throughout the year.
In addition to a clear focus, each store underwent a review of the boundaries it should remain within. This element of the follow-up is more reactive, and stores need only act if there is a risk of stepping outside any of the boundaries.
In order to ensure reliable follow-up documentation, a terminology list was drawn up defining each follow-up item, how it is calculated, where data comes from, and who is responsible for any adjustments. Thus Swedol obtained follow-up documentation it relies on and which it dares to base its actions on.
During the first year of performance management, Swedol achieved organic growth of 11.9% compared to the previous year. The Swedish stores exceeded their sales targets by 5.5% in 2016 and 7.8% in 2017.
The number of active users of the business intelligence system increased from an average of 35 to 55 per month.
In addition to the above, the project provided a unifying theme from the strategy to store employees by clarifying how each store could best pursue the growth strategy in practice. The clear boundaries, which were monitored in the store's dashboard, showed the store manager's responsibilities and room for manoeuvre. By using clearly defined metrics, a consensus was created around KPIs and how they are defined, which made devoting more energy to a store's sales efforts possible.
- 11,9% Organic growth
- 5,5% Sales above budget 2016
- 7,8% Sales above budget 2017
Are you interested in a similar journey?
Contact our performances management expert responsible for the project and we will help you.
Johannes Ingerby Performance Management expert Johannes Ingerby is a partner and performance management expert at The Information Company. Johannes has more than 20 years' experience in performance management, business development and strategic change management. email@example.com +46 734 44 55 90
Read more »