The Good Jobs Strategy MIT Sloan Alumni Reunion Zeynep Ton
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The Good Jobs Strategy
MIT Sloan Alumni Reunion
Zeynep Ton
©Zeynep Ton 2014
Phantom stockouts: 25-30% in CPG, 60% at a specialty retailer
Promotion compliance: 50%
Data Accuracy
©Zeynep Ton 2014
Vicious cycle
Low sales
& profits
Low labor
budgets
Low
quantity &
quality of
labor
Poor operational
execution
Who suffers?
Customers
Employees
Investors
Conventional wisdom
bad jobs & bad service
necessary for low prices
Satisfy
Customers, Employees, Investors
Satisfy
Customers, Employees, Investors
Costco versus Walmart
©Zeynep Ton 2012
©Zeynep Ton 2014
What’s their secret?
Operational excellence
The Good Jobs Strategy
Operate with slack
Cross-train
Offer less
Standardize
& empower
Invest in
people
Operate with
slack
EMPLOYEES Ability to succeed Time off
INVESTORS Higher sales Fewer errors Improvement Better hiring
CUSTOMERS Low prices Good service
Components work together
Operate with slack
Cross-train
Offer less
Standardize
& empower
Invest in
people
Two strategic benefits
1- Differentiate 2- Ability to adapt
Mercadona in 2009
• Reduced product variety
• Lots of other changes
– Produce presentation €175million/yr
– Water and milk cartons €2 million/yr
– Cereal and nut packaging: €900,000/yr
– ……
• Cut prices by 10% (€720 less per
household)
©Zeynep Ton 2014
©Zeynep Ton 2014
Sustainable strategy in which
everyone wins
Jobs with meaning and dignity
©Zeynep Ton 2012
Erika Karp
Cornerstone Capital Group
Is your money being invested in
ways that align with your values?
The Good Jobs Score
Thank you!
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