By George Anderson
A new study from Zenith Management Consulting says that retailers can be making money, growing year-over-year sales, outdoing the competition and satisfying consumers -- and still be in trouble.
Many retail managers are not even aware their businesses are in trouble or, more likely, where they are vulnerable, says Race Cowgill, a principal with Zenith and a member of the RetailWire BrainTrust, "because retail organizations systematically mis-process uncomfortable, critical information" while focusing on distracting, good news instead.
The Zenith research shows that 94 percent of retail businesses have underlying critical problems that affect their top and/or bottom line performance, says Mr. Cowgill.
The study, Every Retail Organization is in Danger but Doesn't Know It, found that distracted businesses focus most often on putting out small fires while preoccupying themselves with new technology and competitive trends.
The Zenith report shows that data specific to the retail organization, what Mr. Cowgill calls high intensity information, analyzed without the normal defensive mechanisms put up by individuals within companies, is necessary for underlying problems to be identified and solved.
"Our research shows that, if done this way, retail organizations are 16-times more likely to implement lasting, significant change," says Mr. Cowgill.
Moderator's Comment: Do you agree that many businesses are overlooking critical problems that may in the short or long-term damage their business? What recommendations do you have for companies that will help them take the blinders off?
Click here for a copy of the Zenith Management Consulting report, Every Retail Organization is in Danger but Doesn't Know It. - George Anderson - Moderator