Building A Winning Barbershop Organization
Barbershops and Salons
The barbershop/salon business is a hair care service business in the personal care industry. It involves the transformation of the physical characteristics/properties of a customer (head or facial hair for men, and head hair for women). The hair grooming business involves shaping and shaving hair to enhance a person's aesthetic appeal. The service is performed by people - barbers - on people - clients - that are part of the hair grooming process. The desired outcomes include enhancing the appearance, confidence and sense of well-being of customers/clients.
Traditionally, the barbershops in residential communities or neighborhoods have been destination and gathering place for men where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, buy an imported cigar, and get a shoe shine. Barbershop and hair salons provide hair grooming services for the members of the community. Barbershops at airports, however, are more of hospitality centers for men to relax and rejuvenate from the travails of travel or work, get haircut or shave to improve their appearance, boost their confidence and energize them to go about their day-to-day business activities. Barbershops at airports belong to the class of services that serve the airport community.
Airport Barbershop Business
The barbershop business viewed as a system, is a man made system. its creation process can be described in terms of the business life cycle model - "startup", "Survival", "Success", "Growth", and "Maturity". The business has a purpose (a reason for existing), members who occupy specified positions in the organization, and play specified roles. The barbershop business organization is created and maintained through its life cycle stages by the strategic management process. As a system, the barbershop organization has a purpose and reason for existing; this is defined in terms of the mission statement. The mission defines the basic purpose of the organization as well as its scope of operations; A clear mission statement sets the organization with a sense of purpose and provides long term direction.
Barbershops and health spas in airports can be classified as specialty retail. Specialty retail shopping experience is not a primary consideration for most visitors and passengers to the airport. Most specialty retail purchases are not planned expenditures; majority of these purchases are driven by impulse or opportunity. The specialty retail businesses that achieve the strongest sales typically complement the traditional existing airport merchandising mix, such as: food concessions, convenience stores, souvenirs and gifts, and comfort amenities, and fit the demographic profile of travelers, visitors, workers, and crew. As a result the value proposition must be compatible with and supportive of the purpose and goals of the prospective customers.
A strategic goal names (refers to) results that the organization wants to change in order to better meet the mission goals, and help resolve strategic issues. Strategic goals are goals the organization is trying to achieve in a certain period of time, at some future date through solutions to identified strategic issues. They are long-term goals that define what needs to change in the long-term for the organization to be successful. Strategic goals define a place - destination or focus area - where the organization wants to be, and they are comprised of corporate level strategic goals, and business level strategic goals.
Strategic objectives are the big-picture goals for the company: they describe what the company will do to try to fulfill its mission. Strategic objectives are derived from strategic goals, and are more specific, quantitative, and ,measurable ideas on how the organization will achieve its goals.
The barbershop organizational goals and objectives include:
These goals influence the overall direction of the organization. These are goals that take a long time to achieve and involves a lot of planning as it takes into account all aspects of the organization environmental factors such as social, economic, political, etc.
The objectives define common areas of focus for an organization that guide management decisions and actions in order for the organization to achieve its goals. These common areas of focus includes market share, financial resources, physical resources/assets, productivity, innovation, and action planning. Objectives defined for these areas of focus must be prioritized; each business organization having a prioritization unique to it. The strategic objectives provide measures of change to bring about the achievement of the desired outcomes.
The barbershop/salon business is a hair care service business in the personal care industry. It involves the transformation of the physical characteristics/properties of a customer (head or facial hair for men, and head hair for women). The hair grooming business involves shaping and shaving hair to enhance a person's aesthetic appeal. The service is performed by people - barbers - on people - clients - that are part of the hair grooming process. The desired outcomes include enhancing the appearance, confidence and sense of well-being of customers/clients.
Traditionally, the barbershops in residential communities or neighborhoods have been destination and gathering place for men where they can openly discuss politics, watch sports or stock market news on TV, read the newspaper, network, get a cup of gourmet coffee, buy an imported cigar, and get a shoe shine. Barbershop and hair salons provide hair grooming services for the members of the community. Barbershops at airports, however, are more of hospitality centers for men to relax and rejuvenate from the travails of travel or work, get haircut or shave to improve their appearance, boost their confidence and energize them to go about their day-to-day business activities. Barbershops at airports belong to the class of services that serve the airport community.
Airport Barbershop Business
The barbershop business viewed as a system, is a man made system. its creation process can be described in terms of the business life cycle model - "startup", "Survival", "Success", "Growth", and "Maturity". The business has a purpose (a reason for existing), members who occupy specified positions in the organization, and play specified roles. The barbershop business organization is created and maintained through its life cycle stages by the strategic management process. As a system, the barbershop organization has a purpose and reason for existing; this is defined in terms of the mission statement. The mission defines the basic purpose of the organization as well as its scope of operations; A clear mission statement sets the organization with a sense of purpose and provides long term direction.
Barbershops and health spas in airports can be classified as specialty retail. Specialty retail shopping experience is not a primary consideration for most visitors and passengers to the airport. Most specialty retail purchases are not planned expenditures; majority of these purchases are driven by impulse or opportunity. The specialty retail businesses that achieve the strongest sales typically complement the traditional existing airport merchandising mix, such as: food concessions, convenience stores, souvenirs and gifts, and comfort amenities, and fit the demographic profile of travelers, visitors, workers, and crew. As a result the value proposition must be compatible with and supportive of the purpose and goals of the prospective customers.
A strategic goal names (refers to) results that the organization wants to change in order to better meet the mission goals, and help resolve strategic issues. Strategic goals are goals the organization is trying to achieve in a certain period of time, at some future date through solutions to identified strategic issues. They are long-term goals that define what needs to change in the long-term for the organization to be successful. Strategic goals define a place - destination or focus area - where the organization wants to be, and they are comprised of corporate level strategic goals, and business level strategic goals.
Strategic objectives are the big-picture goals for the company: they describe what the company will do to try to fulfill its mission. Strategic objectives are derived from strategic goals, and are more specific, quantitative, and ,measurable ideas on how the organization will achieve its goals.
The barbershop organizational goals and objectives include:
- Increase profits - This could be done by increasing sales of products or services, or by attracting and retaining more customers. Some relevant objectives may include:
- Acquiring "x" number of new customers per week/month
- Increasing marketing efforts to increase brand awareness
- Identifying areas to upsell or offer additional services.
- Improve customer service - This could be done by providing a more comfortable environment, or by offering more high-quality services.
- Grow the business - This could be achieved by opening new locations.
- Retain employees - This could be done by increasing barber income.
- Regularly carrying out performance reviews
- Incentivicing your staff by rewarding them for meeting KPI targets.
- Continuing the education of your staff beyond their initial training.
- Improve customer satisfaction - Customer satisfaction plays a big role in customer retention which is pivotal. Providing excellent customer service is what will keep people coming back time and time again. Some objectives could be:
- Creating a loyalty program to incentivize and reward clients with our loyalty feature
- Resolve customer complaints immediately
- Getting X number of reviews per month to identify areas of success and improvement.
- Provide relaxed and inviting atmosphere
These goals influence the overall direction of the organization. These are goals that take a long time to achieve and involves a lot of planning as it takes into account all aspects of the organization environmental factors such as social, economic, political, etc.
The objectives define common areas of focus for an organization that guide management decisions and actions in order for the organization to achieve its goals. These common areas of focus includes market share, financial resources, physical resources/assets, productivity, innovation, and action planning. Objectives defined for these areas of focus must be prioritized; each business organization having a prioritization unique to it. The strategic objectives provide measures of change to bring about the achievement of the desired outcomes.
-
Environmental Factors
-
Company Statement & Options
-
Strategic Odyssey
-
Organizational Capabilities
<
>
Environmental Factors
Environment factors that influence a business organization can be categorized as external environment factors and internal environment factors. The SWOT analysis helps executives summarize the major facts and forecasts derived from analysis of external environment and internal environment.
External Environment Factors
Barbershops, like any other business are influenced by various external environment factors that can impact their strategy. Some of the relevant factors may include:
Barbershop owners and managers need to assess these external environmental factors regularly and adjust their strategies accordingly to remain competitive and meet the needs of their target audience. Additionally, staying adaptable and responsive to changing circumstances is crucial for long-term success in the barbershop business.
Internal Factors
Internal environment factors for the barbershop includes:
The internal environment analysis is summarized in terms of strength, weaknesses, such as:
Strengths and weaknesses are internal environment factors that must be taken into consideration when making a business strategic decision, or establishing a business strategy.
Key Critical Success Factors
Critical Success Factors (CSF) refer to aspects of a business that are identified as vital for successful targets to be reached and maintained.
The Critical Success Factors for the barbershop at airports include:
In any organization, certain factors will be critical to the success of that organization, in the sense that, if objectives associated with the elements are not achieved, the organization will fail.
Environment factors that influence a business organization can be categorized as external environment factors and internal environment factors. The SWOT analysis helps executives summarize the major facts and forecasts derived from analysis of external environment and internal environment.
External Environment Factors
Barbershops, like any other business are influenced by various external environment factors that can impact their strategy. Some of the relevant factors may include:
- Economic Conditions - Economic factors, such as the overall health of the economy, employment rates, and consumer spending power, can greatly affect a barbershop's strategy.
- Demographics - The demographic makeup of the area where the barbershop is located is crucial. Factors like population density, age distribution, and cultural diversity can influence the types of services offered and pricing strategies.
- Competition - The competitive landscape in the local market significant. The presence of other barbershops, hair salons, and grooming businesses can impact pricing, marketing efforts, and the overall strategy of a barbershop.
- Technological Trends - Advancement in technology such as online booking systems, payment methods, or even new grooming tools can affect how a barbershop operates and interacts with customers.
- Regulations and Licenses - Barbershops are subject to various regulations and licensing requirements, which can vary from one location to another. Staying compliant and up-to-date with these regulations is crucial for the business strategy.
- Cultural and Social Trends - Changing fashion trends, grooming preferences, and cultural shifts can impact the types of services and products a barbershop offers. Understanding and adapting to these trends is important.
- Health and Safety Concerns - Compliance with health regulations and customer concerns about safety are crucial factors to consider.
- Environmental Factors - Environmental concerns, such as water usage, energy efficiency, and the use of sustainable or eco-friendly products can be important for businesses that want to align with environmentally conscious consumer preferences.
- Customer Preferences - Customer expectations and preferences, which can be influenced by the factors mentioned above, should be continuously monitored and considered when developing a barbershop's strategy.
- Seasonal Variations - Seasonal variations in demand may affect pricing, marketing, and staffing strategies.
- Supplier Relationships - The availability and cost of grooming products and equipment are important.
- Social Media and Online Reviews - The reputation of a barbershop can be significantly impacted by online reviews and social media presence. Maintaining a positive online reputation and actively engaging with customers through these channels can be a part of the strategy.
Barbershop owners and managers need to assess these external environmental factors regularly and adjust their strategies accordingly to remain competitive and meet the needs of their target audience. Additionally, staying adaptable and responsive to changing circumstances is crucial for long-term success in the barbershop business.
Internal Factors
Internal environment factors for the barbershop includes:
- Staffing Skills - The skill level and availability of barbers can impact service quality and capacity.
- Management - The effectiveness of management in terms of organization, decision-making, and leadership.
- Marketing and Branding - How the barbershop positions itself in the market and its ability to attract and retain customers.
- Financial Resources - The availability of funds and financial stability to invest in equipment, marketing, and expansion.
- Location - The physical location of the shop can significantly affect foot traffic and customer demographics..
The internal environment analysis is summarized in terms of strength, weaknesses, such as:
- Strengths - The internal positive attributes of your company that are within your control. These may include: successful business processes; assets you have in your teams i.e., knowledge, education, networks, skills, and reputation; physical assets the organization has, such as customers, equipment, technology, cash and patents; competitive advantages you may have over the competition.
- Location of shop (Distribution Channel) at Airport land-side.
- Owner's experience ad skill as master barber
- Weaknesses - These are negative factors that detract from your strengths. These are factors that relate to things you might need to improve on, to be competitive. For example, things your business needs to be competitive; business processes needing improvement, tangible assets i.e., money or equipment that your company needs.
- Limitation on Financial Resources
- Weak Leadership
- Recruiting quality and experienced barbers and stylists.
- Weak strategic capability
Strengths and weaknesses are internal environment factors that must be taken into consideration when making a business strategic decision, or establishing a business strategy.
Key Critical Success Factors
Critical Success Factors (CSF) refer to aspects of a business that are identified as vital for successful targets to be reached and maintained.
The Critical Success Factors for the barbershop at airports include:
- Building Relationships – Sales requires extensive community contacts and positive customer relationships to achieve desired sales targets.
- Human Resource Management – Align incentives and rewards with employee roles for increased employee satisfaction.
- Enabling Strong Customer Referrals – Increasing market share in our target markets (customer segments) through current customers.
- Customer Service Focus – Customer is always right; be service oriented when working with customers. Customer service targets for customer satisfaction requires team culture of respect for the customer.
- Leadership Development – Management and employees developing strong leadership capacity
In any organization, certain factors will be critical to the success of that organization, in the sense that, if objectives associated with the elements are not achieved, the organization will fail.
Company Statements
The company's hierarchy of statements include: Mission Statement, Vision Statement, Values, and Corporate Strategy Statement.
Mission Statement
The mission statement defines the purpose, values, and core activities of the organization. It answers the question; "Why do we exist?"
For example, the barbershop's mission might be: "To provide high-quality grooming and exceptional services in a friendly and relaxing environment, enhancing our customers confidence and well-being".
The mission defines the kinds of things the organization wants to achieve - the role the organization will play in the business environment as defined by its products (goods and services) the organization will provide and for whom. The mission defines the basic purpose of the organization as well as its scope of operations;.
A clear mission statement sets the organization with a sense of purpose and provides long term direction. A mission statement establishes the organization's future course and outlines who we are, what we do, and where the organization needs to be headed - in effect, setting the organization with a sense of purpose, providing long-term direction, and establishing a clear mission of "what we want to achieve".
Vision Statement
The vision statement usually describes some broad set of aspirations - what the organization aspires to look like in the future. It outlines the long-term aspirations and purpose of the business. It paints a vivid picture of what the barbershop aims to achieve in the future.
For example, a barbershop vision statement might be: "To become the preferred grooming destination for airline passengers and airline and airport workers, known for fast and high quality grooming, exceptional services, and a welcoming atmosphere".
The vision statement guides the development of the organizational capabilities needed to achieve the desired future state, such as skills, resources, and processes. The vision also acts as a compass, ensuring that the organization invests in the right capabilities. The vision influences and informs strategic decisions such as: market positioning, expansion plans, marketing channels, service offerings and pricing strategies.
Core Values Statement
Every organization has values, and these values should be coherent with the strategy. These values are shared by the Board and staff, strongly held and not easily changed. They are the essence of the company’s culture and expression of its “personality.” The values of the company may include:
The core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Brand Positioning Statement
The Barbershop at O'Hare Airport is a modern barbershop that offers high-quality haircuts, beard trims, and other men's grooming services. Our barbers are highly skilled and experience, and they use only the best products and tools. We offer a clean, comfortable and relaxed environment, and we are always happy to chat with our customers about their hair and grooming needs.
Our mission is to provide our customers with the best possible barber experience. We want them to feel confident and look their best when they leave our shop. We believe that everyone deserves to look and feel their best, and we are committed to providing our customers with the highest quality barber services possible. We are confident that you will be happy with your experience at The Barbershop at O'Hare Airport.
Brand positioning statement describes the positioning of our brand from the viewpoint of how it addresses the strategic issues that need to be solved in order to achieve our mission. The statement describes our target market and a compelling picture of how we want that market to perceive our brand. We want our customers to associate our brand with product quality, convenience of access and customer intimacy. Our target customers are people on the go and schedule driven - either travel schedules or work schedules. Our target customers have limited time to have their needs met, but they want high quality haircuts or shaves and exceptional barbershop experience. We offer service packages designed to appeal to the needs, desires, and taste of our target market, and a sense of well-being and relaxed confidence they get from consuming our service.
Competitive Strategy Statement
Our barbershop is committed to providing our customers with the best possible experience. We offer a wide range of services, including hair cuts, shaves, beard trims, styling, facials, etc. Our barbers are highly trained and experienced, and they are always up-to-date in the latest trends in men's haircare. We use only the highest quality products, and we are committed to providing our customers with a clean, comfortable, and relaxing environment. We believe that our customers are our best asset, and we are always looking for ways to improve our services and exceed their expectations. We are confident that are barbershop is the best choice for men's haircuts, shaves, and styling in the area.
The key aspects of our competitive strategy are:
We believe that our competitive strategy is strong, and that it will allow us to grow and succeed in the years to come.
Target Market
Our target market is men and women of all ages who are looking for a high-quality barbering experience. We are particularly interested in attracting customers who are looking for a unique personalized experience.
Competitive Advantage
Our competitive advantage is our team of experienced and skilled barbers, our commitment to quality, and our focus on the customer experience.
Operations Strategy
Our operations strategy will focus on providing our customers with a convenient and enjoyable experience. We will do this by offering flexible appointment times, comfortable waiting area, and a variety of amenities, such as free wi-fi, drinks, etc.
Marketing Strategy
Our marketing strategy will focus on building relationships with our community, and creating a loyal customer base. We will achieve this through local advertising, word of mouth marketing, social media marketing, as well as through promotions.
[TBD]
All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
The management of an organization typically establish Organization Goals; these are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist in tracking its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
[TBD]
[TBD]
Effective communication of the concept should focus on emphasizing the transformative impact of organizational capability on goal setting and strategy development.
Strategic Options
[TBD]
Strategic Options Aligned with External Factors
Aligned strategic options for various external environment factors that can influence a barbershop strategy may include:
Each of these strategic options should align with the external factor they address and the overall goals of the barbershop.
Internal Environmental Analysis - Organizational Strengths and Weaknesses
The SWOT analysis helps executives summarize the major facts and forecasts derived from analysis of external environment and internal environment. The The internal environment analysis is summarized in terms of strength, weaknesses, such as:
Strengths and weaknesses are internal environment factors that must be taken into consideration when making a biusiness strategic decision, or establishing a business strategy.
Strategic Options Aligned with Internal Factors
Aligned strategic options may include:
The company's hierarchy of statements include: Mission Statement, Vision Statement, Values, and Corporate Strategy Statement.
Mission Statement
The mission statement defines the purpose, values, and core activities of the organization. It answers the question; "Why do we exist?"
For example, the barbershop's mission might be: "To provide high-quality grooming and exceptional services in a friendly and relaxing environment, enhancing our customers confidence and well-being".
The mission defines the kinds of things the organization wants to achieve - the role the organization will play in the business environment as defined by its products (goods and services) the organization will provide and for whom. The mission defines the basic purpose of the organization as well as its scope of operations;.
A clear mission statement sets the organization with a sense of purpose and provides long term direction. A mission statement establishes the organization's future course and outlines who we are, what we do, and where the organization needs to be headed - in effect, setting the organization with a sense of purpose, providing long-term direction, and establishing a clear mission of "what we want to achieve".
Vision Statement
The vision statement usually describes some broad set of aspirations - what the organization aspires to look like in the future. It outlines the long-term aspirations and purpose of the business. It paints a vivid picture of what the barbershop aims to achieve in the future.
For example, a barbershop vision statement might be: "To become the preferred grooming destination for airline passengers and airline and airport workers, known for fast and high quality grooming, exceptional services, and a welcoming atmosphere".
The vision statement guides the development of the organizational capabilities needed to achieve the desired future state, such as skills, resources, and processes. The vision also acts as a compass, ensuring that the organization invests in the right capabilities. The vision influences and informs strategic decisions such as: market positioning, expansion plans, marketing channels, service offerings and pricing strategies.
Core Values Statement
Every organization has values, and these values should be coherent with the strategy. These values are shared by the Board and staff, strongly held and not easily changed. They are the essence of the company’s culture and expression of its “personality.” The values of the company may include:
- Integrity - Always doing what we say we will, and striving for excellence and quality in everything we do.
- Honesty - Being open and transparent in all our dealings and maintaining the highest integrity at all times.
- Dedication - Working with urgency and commitment to be successful from individual and company perspectives. Time frames are always met regardless of personal circumstances.
- Reliability - Consistently fulfilling obligations in a timely and satisfactory manner; takes responsibility for personal actions and performance.
- Stewardship - We do business in a way that is socially, economically, and environmentally responsible.
- Ownership - Taking ownership of our customer’s needs and being accountable for delivering friendly and professional service.
The core values define the organization in terms of the principles and values the leaders will follow in carrying out the activities of the organization.
Brand Positioning Statement
The Barbershop at O'Hare Airport is a modern barbershop that offers high-quality haircuts, beard trims, and other men's grooming services. Our barbers are highly skilled and experience, and they use only the best products and tools. We offer a clean, comfortable and relaxed environment, and we are always happy to chat with our customers about their hair and grooming needs.
Our mission is to provide our customers with the best possible barber experience. We want them to feel confident and look their best when they leave our shop. We believe that everyone deserves to look and feel their best, and we are committed to providing our customers with the highest quality barber services possible. We are confident that you will be happy with your experience at The Barbershop at O'Hare Airport.
Brand positioning statement describes the positioning of our brand from the viewpoint of how it addresses the strategic issues that need to be solved in order to achieve our mission. The statement describes our target market and a compelling picture of how we want that market to perceive our brand. We want our customers to associate our brand with product quality, convenience of access and customer intimacy. Our target customers are people on the go and schedule driven - either travel schedules or work schedules. Our target customers have limited time to have their needs met, but they want high quality haircuts or shaves and exceptional barbershop experience. We offer service packages designed to appeal to the needs, desires, and taste of our target market, and a sense of well-being and relaxed confidence they get from consuming our service.
Competitive Strategy Statement
Our barbershop is committed to providing our customers with the best possible experience. We offer a wide range of services, including hair cuts, shaves, beard trims, styling, facials, etc. Our barbers are highly trained and experienced, and they are always up-to-date in the latest trends in men's haircare. We use only the highest quality products, and we are committed to providing our customers with a clean, comfortable, and relaxing environment. We believe that our customers are our best asset, and we are always looking for ways to improve our services and exceed their expectations. We are confident that are barbershop is the best choice for men's haircuts, shaves, and styling in the area.
The key aspects of our competitive strategy are:
- Superior customer service
- Wide range of services
- High-quality products
- Clean, comfortable, and relaxing environment
- Competitive price points - value pricing
We believe that our competitive strategy is strong, and that it will allow us to grow and succeed in the years to come.
Target Market
Our target market is men and women of all ages who are looking for a high-quality barbering experience. We are particularly interested in attracting customers who are looking for a unique personalized experience.
Competitive Advantage
Our competitive advantage is our team of experienced and skilled barbers, our commitment to quality, and our focus on the customer experience.
Operations Strategy
Our operations strategy will focus on providing our customers with a convenient and enjoyable experience. We will do this by offering flexible appointment times, comfortable waiting area, and a variety of amenities, such as free wi-fi, drinks, etc.
Marketing Strategy
Our marketing strategy will focus on building relationships with our community, and creating a loyal customer base. We will achieve this through local advertising, word of mouth marketing, social media marketing, as well as through promotions.
[TBD]
All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
The management of an organization typically establish Organization Goals; these are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist in tracking its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
[TBD]
[TBD]
Effective communication of the concept should focus on emphasizing the transformative impact of organizational capability on goal setting and strategy development.
Strategic Options
[TBD]
Strategic Options Aligned with External Factors
Aligned strategic options for various external environment factors that can influence a barbershop strategy may include:
- Economic conditions:
- Diversification of Services: in a strong economy, consider offering premium or additional services like facials or spa treatments. In a weaker economy, focus on cost-effective services.
- Demographics:
- Tailored services: Adjust the type of services and pricing to cater to the specific demographics in the area.
- Competition:
- Differentiation: Develop a unique selling proposition, such as specializing in a particular haircut style or offering superior customer service to stand out from competitors.
- Collaboration: Consider partnering with complementary businesses like clothing stores or beuty salons to cross promote services.
- Technological Trends:
- Online Booking and Payments: Implement an easy-to-use online booking system and accept digital payments to enhance convenience for customers.
- Regulations and Licensing:
- Compliance: Invest in staff training and stay up to date with licensing requirements and health regulations to ensure compliance and avoid penalties.
- Cultural and Social Trends:
- Training and Education: Stay up to date on the latest grooming and style trends through continuous staff training and education to meet customer preferences.
- Health and Safety Concerns:
- Enhanced Sanitation Protocols: Communicate your commitment to safety through visible, enhanced sanitation practices and make customers feel comfortable.
- Environmental Factors:
- Sustainable Practices: Consider using eco-friendly and sustainable grooming products and implement energy-efficient practices to attract environmentally conscious customers.
- Customer Preferences:
- Feedback Systems: Create systems to gather feedback from customers and make adjustments to services based on their preferences and suggestions.
- Seasonal Variations:
- Supplier Relationships:
- Social Media and Online Reviews:
- Online Engagement: Actively engage with customers on social media, respond to online reviews (both positive and negative), and use these platforms for marketing and customer engagement.
Each of these strategic options should align with the external factor they address and the overall goals of the barbershop.
Internal Environmental Analysis - Organizational Strengths and Weaknesses
The SWOT analysis helps executives summarize the major facts and forecasts derived from analysis of external environment and internal environment. The The internal environment analysis is summarized in terms of strength, weaknesses, such as:
- Strengths - The internal positive attributes of your company that are within your control. These may include: successful business processes; assets you have in your teams i.e., knowledge, education, networks, skills, and reputation; physical assets the organization has, such as customers, equipment, technology, cash and patents; competitive advantages you may have over the competition.
- Location of shop (Distribution Channel) at Airport land-side.
- Owner's experience ad skill as master barber
- Weaknesses - These are negative factors that detract from your strengths. These are factors that relate to things you might need to improve on, to be competitive. For example, things your business needs to be competitive; business processes needing improvement, tangible assets i.e., money or equipment that your company needs.
- Limitation on Financial Resources
- Weak Leadership
- Recruiting quality and experienced barbers and stylists.
- Weak strategic capability
Strengths and weaknesses are internal environment factors that must be taken into consideration when making a biusiness strategic decision, or establishing a business strategy.
Strategic Options Aligned with Internal Factors
Aligned strategic options may include:
- Staffing and Training - Invest in ongoing training and skill development for barbers to enhance the quality of the service.
- Effective Management - Streamline operations and decision-making processes to improve efficiency and customer satisfaction.
- Marketing and Brand Building - Develop a strong brand identity and use effective marketing strategies to reach and retain customers.
- Financial Planning - Implement sound financial management practices to ensure the sustainability and growth of the barbershop.
- Location Assessment - Consider relocating or expanding to more favorable locations based on market research..
- Diversification of Services - Introduce additional services or products to attract a broader customer base.
- Customer Relationship Management - Implement systems to build and maintain strong customer relationships to encourage repeat business.
Strategic Odyssey
The strategic odyssey of an organization describes the lifecycle journey of an organization through the stages from birth to demise. Each stage is defined in terms of the capacity development crucial to developing the organizational capabilities needed at each stage in the lifecycle.
Birth: Inception Stage
Initial stage
Youth: Growth Stage
Growth stage
[TBD]
Maturity Stage
Mature stage
[TBD]
Decline: Revival Stage
Sunset stage
[TBD]
Strategy Statement - Birth Life Cycle Stage
In the early stages of the airport barbershop, the owner/CEO plays a pivotal role in shaping the company's direction and ensuring its initial success. Some of the key decisions the CEO/President may need to make include:
At this early stage in the organization's odyssey, the CEO/president is instrumental in setting the foundation for the barbershop success by making strategic decisions that align with the overall vision of the business. These strategic decisions are the means by which management's intentions and ideas are realized, and define the organization's business strategy.
Corporate Strategy Statement
This is a statement of the corporate strategies that will help the barbershop to achieve its mission and vision. The set of corporate strategy options include:
We believe that these strategies will help us achieve our mission and vision.
Organizational Capabilities
Organizational capability refers to an organization's capacity/ability to employ its resources to achieve its strategic objectives. All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
The management of an organization typically establish Organization Goals; these are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist in tracking its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
Organization Lifecycle Stage 1 - Birth event
[TBD]
Organizational capabilities at the early stage of development of the business organization, is crucial for establishing a sound and strong foundation to ensure early success. Some examples of organizational capabilities that suipp[ort capacity development in the early stagers of a company's inception may include:
[TBD]
The strategic odyssey of an organization describes the lifecycle journey of an organization through the stages from birth to demise. Each stage is defined in terms of the capacity development crucial to developing the organizational capabilities needed at each stage in the lifecycle.
Birth: Inception Stage
Initial stage
- Infrastructure Capacity
- Location
- Equipment
- Staff
- Operational Capacity
- Service Menu
- Scheduling System
- Quality Control
Youth: Growth Stage
Growth stage
- Human Resource Capacity
- Recruitment
- Training programs
- Leadership
- Service Capacity
- Extended hours
- Additional services
- Customer experience
[TBD]
Maturity Stage
Mature stage
- Capacity Optimization
- Efficiency
- Cros Training
- Inventory Management
- Marketing Capacity
- Loyalty Programs
- Partnerships
- Online Presence
[TBD]
Decline: Revival Stage
Sunset stage
- Adaptability Capacity
- Market Research
- Diversification
- Rebranding
- Crisis Management Capacity
- Contingency Plans
- Financial Resilience
- Employee Morale
[TBD]
Strategy Statement - Birth Life Cycle Stage
In the early stages of the airport barbershop, the owner/CEO plays a pivotal role in shaping the company's direction and ensuring its initial success. Some of the key decisions the CEO/President may need to make include:
- Business Concept and Niche - Defining the Unique Selling Proposition (USP) and niche of the barbershop, such as specializing in certain haircut styles, grooming services, or targeting specific customer demographics.
- Location and Market Entry - This may involve the following decisions:
- Selecting an optimal location for the barbershop, considering factors such as foot traffic, accessibility, and proximity to target customers.
- Determining the market entry strategy, including whether to launch in a specific area of the airport
- Brand development
- Creating and establishing the brand identity, including the barbershop's name, logo, and overall aesthetics.
- Developing the marketing and branding strategy to differentiate the barbershop from competitors and attract the target audience.
- Legal and Regulatory Compliance
- Ensuring compliance with local regulations and licensing requirements for operating a barbershop.
- Securing necessary permits and licenses to operate the business legally.
- Financial Planning and Budgeting
- Supplier and Inventory Management
- Recruitment and Team Building
- Operational processes
- Customer Experience
- Marketing and Promotion
- Community Engagement
- Performance Metrics and Analysis
At this early stage in the organization's odyssey, the CEO/president is instrumental in setting the foundation for the barbershop success by making strategic decisions that align with the overall vision of the business. These strategic decisions are the means by which management's intentions and ideas are realized, and define the organization's business strategy.
Corporate Strategy Statement
This is a statement of the corporate strategies that will help the barbershop to achieve its mission and vision. The set of corporate strategy options include:
- Providing high-quality services: We will use our skills and expertise to create best possible haircusts, shaves, and other grooming services. We will also use high-quality products and tools.
- Creating a hospitable, friendly, and welcoming atmosphere: We will strive to provide our customers with a hospitable, friendly, and welcoming atmosphere in which they can relax and feel at ease. We will also make sure our shop is clean, sanitized, and well-maintained.
- Being committed to customer satisfaction: We will strive to provide our customers with the best hair grooming experience. We will also be responsive to their feedback and suggestions.
- Investing in our employees: We will invest in our employees by proving them with training and development opportunities. We will also create a positive and supportive work environment.
- Giving back to the community: We will give back to the community by supporting local charities and initiatives. We will also promote sustainability and environmental awareness.
We believe that these strategies will help us achieve our mission and vision.
Organizational Capabilities
Organizational capability refers to an organization's capacity/ability to employ its resources to achieve its strategic objectives. All organizations are endowed with an initial set of resources which they employ to create output such as policies, rules, etc., which in turn guide the creation and delivery of value (products and services) to customers.
The management of an organization typically establish Organization Goals; these are strategic objectives outlining expected outcomes to guide employees' efforts. They help define a company's purpose, assist in tracking its business growth, and guide efforts to achieve its financial objectives.
Strategic priorities are a part of the core culture; they are the values aligned with the organization's vision and goals. They can be uncovered by understanding what the organization needs to focus on and pay attention to in order to achieve its business goals.
Organization Lifecycle Stage 1 - Birth event
[TBD]
Organizational capabilities at the early stage of development of the business organization, is crucial for establishing a sound and strong foundation to ensure early success. Some examples of organizational capabilities that suipp[ort capacity development in the early stagers of a company's inception may include:
- Skill development programs:
- Training Initiatives - Implementing training programs for barbers to enhance their skills, stay updated on industry trends, and provide excellent customer service.
- Workshops and Seminars - Conducting regular seminars and workshops on the latest hair cutting techniques, grooming trends, and customer engagement to foster continuous learning.
- Customer Relationship Management (CRM):
- Database Management - Developing a system to manage customer information, preferences, and feedback.to personalize services and build strong, lasting relationships.
- Customer Loyalty Program - Creating and managing loyalty programs to reward repeat customers, encouraging customer retention and positive word-of-mouth.
- Effective Inventory Management
- Supply Chain Optimization - [TBD]
- [TBD]
- Financial Management
- Technology Integration
- Brand Building and Marketing
- Adaptability and Innovation
- Team Building and Leadership
[TBD]
Organizational Capabilities
[TBD]
Strategy Statement - Airport Barbershop
The airport barbershop, located in a pre-security area close to the baggage claim area, in the early on in the inception stage. Its strategy in this early stage is defined by the strategic engine of the organization, as follows:
Strategy Execution
Strategy execution is the continuous process of decisive strategic decisions that occurs at all levels and functional areas in the organization that drive the actions/activities undertaken at all levels in the organization to turn implemented strategy into commercial/social success as defined by the mission.
Startup Stage Execution Trace
Once a company creates a strategic plan, it has constructed what could be defined as a intended strategy that guides deliberate (top-down) execution. The strategy execution involves decisions and actions available to various levels of management in the organization such as leadership and executive level, middle management level, and individual level and can be classified by the following decision patterns.
Board of Directors
The board of directors is comprised of two (2) people; the owner and his wife. The board is responsible for making strategic decisions that guide overall direction and success of the business. Some of the decision options that the board might consider may include:
Executive Management - CEO/President
In the early stages of the startup business, the CEO and president play a pivotal role in shaping the company's direction, and ensuring its initial success. Some of the decisions that the CEO/president may need to make include:
[TBD]
etting strategic direction - Establishing strategic objectives and goals aligned and supportive of the mission and vision
<<TBD>>
Business Unit Level Management Decisions
These are strategic decisions revolving around product offering, positioning, and competitive advantage.
Operations Management Decisions
[TBD]
Function Level Management Decisions
These decisions and actions are carried out in functional areas such as: Marketing, Finance, Sales, HR and IT.
Individual Level
The effectiveness of the decision-making process can be improved to the extent the organization provides an execution system that enables timely and good decisions that drive organization processes about people, strategy and operations.
Emergent Strategy
The company's strategy may also emerge from the day-to-day decisions and actions in following areas:
[TBD]
Short-Term Objectives
The objectives detail what will be accomplished in relation to each goal. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by). An outcome determines whether the organization was successful in achieving its objectives. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
Annual Objectives
The strategic objectives are measures of change to bring about the achievement of the desired goals defined above; and whose achievement is deemed most important to the current and future health and performance of the business organization. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
The strategic objectives for the barbershop include:
The objectives detail what will be accomplished in relation to each goal. The strategic objectives are outcomes desired by the owners and top management and whose achievement is deemed most important to the current and future health and performance of the business organization. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by).
Outcomes Analysis
Outcomes analysis takes the objectives and resulting data to see if the desired result was achieved. In addition, it reviews any ancillary information that might pertain to the objective's impact (outcome). An organization might not achieve an outcome because of unforeseen external events; this information is evaluated to plan for further objectives and potential unforeseen risks to success.
[TBD]
[TBD]
[TBD]
The organizational infrastructure defines the structures, processes and systems that institutionalize the barbershop practices, procedures and rule of organization, organized around the life cycles stages of the barbershop, such as:
[TBD]
Roles and Responsibilities
Once you have determined the goals you are working towards and the variables that might get you on your way; build a road map for achieving those goals. Set expectations among the team, and clearly communicate your implementation plan.
[TBD]
Organizational Capabilities
Building a winning organization (Barbershop) requires the organization to identify and define organizational capabilities in behavioral and operational terms to address the question "what economic or customer value each capability delivers? A capability assessment identifies the organizational capabilities that currently exist and work well and those capabilities called for by the organization's corporate and business strategic priorities. These capabilities are the collective skills, abilities, and knowledge/expertise of the organization. Some of the organization capability dimensions of relevance include:
Capabilities represent the ways people and resources are brought together to accomplish work. They form the identify and "personality" of a company by defining what it is good at doing, and in the end what it is.
[TBD]
If the corporation has the capabilities, enterprise advantage, and business portfolio it wants its corporate strategy is implemented. If the business unit has the customers, value proposition, and skills it has chosen to have, its business strategy is also fully implemented. Technically, a strategy can never actually be fully implemented because everything that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategy call for. Closing this gap is implementation.
Closing the implementation gap involves capacity/capability develop is a perpetually evolving process of growth and positive change. At the heart of this capacity building process, is a set of functional capabilities. These are the essential management skills that allows for planning, implementing, and monitoring and evaluating initiatives for growth.
Policies
Salon/Barbershop policies are a set of rules and principles that guide how you carry out various actions in your business. Your policies also shape the processes and decisions you make in your salon and can serve as a handy reference for your clients and employees. Creating salon policies and procedures allow you to safeguard against unwanted or unexpected scenarios. Part of owning a service-based business means dealing with the ups and downs of managing staff and dealing with clients.
Client/Customer Engagement Policies
[TBD]
[TBD]
Policies for Employees
Policies for staff are a little easier to get across and can simply be added to any onboarding documentation when staff is hired and listed in the break room so that it is clear what is expected of staff when they are at the salon.
There are many rules and policies that you can enforce on your staff. Below is a nice long list of suggestions:
[TBD]
[TBD]
When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategic Control
Strategy valuation and control includes:
Operational Control
These include:
[TBD]
Strategy evaluation and control actions include:
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
Outputs tell the story of what you produced or your organization's activities. Output measures do not address the value or impact of your services for your clients.
[TBD]
Strategy Statement - Airport Barbershop
The airport barbershop, located in a pre-security area close to the baggage claim area, in the early on in the inception stage. Its strategy in this early stage is defined by the strategic engine of the organization, as follows:
- Corporate strategy: Growth Through Market Share Acquisition: - []
- Business competitive strategy: Differentiation through Unique Airport Experience - []
- Operations strategy: Streamlined and Efficient Service Delivery - []
Strategy Execution
Strategy execution is the continuous process of decisive strategic decisions that occurs at all levels and functional areas in the organization that drive the actions/activities undertaken at all levels in the organization to turn implemented strategy into commercial/social success as defined by the mission.
Startup Stage Execution Trace
Once a company creates a strategic plan, it has constructed what could be defined as a intended strategy that guides deliberate (top-down) execution. The strategy execution involves decisions and actions available to various levels of management in the organization such as leadership and executive level, middle management level, and individual level and can be classified by the following decision patterns.
Board of Directors
The board of directors is comprised of two (2) people; the owner and his wife. The board is responsible for making strategic decisions that guide overall direction and success of the business. Some of the decision options that the board might consider may include:
- Business strategy and planning
- Developing and approving the overall business strategy, including brand market positioning, target demographics, brand positioning, and growth objectives.
- Reviewing and approving the business plan. ensuring alignment with the company's mission and vision.
- Financial planning and oversight
- Approving the annual budgets and financial forecasts, ensuring financial goals are in line with business strategy.
- Overseeing financial performance, reviewing financial reports, and addressing any discrepancies or concerns.
- Capital allocation and funding
- Deciding on funding strategies, including equity financing, loans, or other forms of capital injection.
- Approving major capital expenditures and investments in equipment, technology, or other locations.
- Leadership and Management
- Investing in developing organizational capability in leadership, customer connectivity, and Shared Mind-Set (Brand Identity)??
Executive Management - CEO/President
In the early stages of the startup business, the CEO and president play a pivotal role in shaping the company's direction, and ensuring its initial success. Some of the decisions that the CEO/president may need to make include:
- Business Concept and Niche
- Location and Market Entry
[TBD]
etting strategic direction - Establishing strategic objectives and goals aligned and supportive of the mission and vision
- Communicating strategic objectives, mission and vision to all employees at all levels in the organization.
- Monitoring and evaluating organization performance and progress towards desired strategic objectives and goals
- Evaluating external environmental factors and decide on how/what opportunities and threats to respond to.
- Assessing impact of changes in PESTEL/legal and regulatory factors on successful execution of current strategies.
- Chartering initiatives and programs to close gaps
- Updating strategies
<<TBD>>
Business Unit Level Management Decisions
These are strategic decisions revolving around product offering, positioning, and competitive advantage.
- Product offering
- Product positioning decisions
Operations Management Decisions
[TBD]
Function Level Management Decisions
- Communicate - Communicate the approved strategy through various communication platforms and making it transparent and easy-to-understand in order to create the necessary understanding and engagement for the new/adapted strategy. Some thought should be given to how the strategy is communicated and factors such as quality of content, tone of voice and presentation skills - essential elements in the transferring content and creating the necessary enthusiasm for others to pass on the message.
- Manage Initiatives - Initiative management is where your dreams run up against reality, your strategy meets operations, and resources are added to the formula. Initiative management is about selecting, prioritizing and executing the right initiatives, those actions that will lead to the realization of your objectives.
- Cascade - Break down the strategic objectives into smaller chunks for the next organizational level. The process stops at smallest unit level - these are often teams/positions. In the end the size of the organization determines the size of the cascade.
- Compare and Learn - The intended strategy is a hypothesis; it is the organization's best estimate of the route to success. It is crucial to take some time at the end of each cycle of execution to check the hypothesis, compare your initial strategic assumptions with what you have learned from the reality of the execution cycle that is being completed. Make sure you also examine and take a look at the organization's strategy execution capability and development capacity.
These decisions and actions are carried out in functional areas such as: Marketing, Finance, Sales, HR and IT.
Individual Level
- Manage Initiatives - This involves selecting, prioritizing, and executing the right initiatives; those that would lead to the realization of the strategic objectives..
- Set Objectives -
- Monitor & Coach - Monitor the key performance indicators defined for the organization's strategic measures, and track progress towards achieving the mission. This includes monitoring employee performance and providing feedback on performance in such a manner to reinforce positive behavior and outcomes; acknowledge and celebrating success.
- Evaluate Performance -
The effectiveness of the decision-making process can be improved to the extent the organization provides an execution system that enables timely and good decisions that drive organization processes about people, strategy and operations.
Emergent Strategy
The company's strategy may also emerge from the day-to-day decisions and actions in following areas:
- Diversify the company's revenue base; enter new business and/or industries.
- Extend geographically to post-security parts of airport.
- Efforts to integrate forwards or backwards.
- Efforts to broaden/narrow the product/service lines, product quality, or modify customer service.
- Actions to capitalize on new opportunities i.e., new technology, product innovation, acquisition,new trade agreements in foreign markets.
- Defensive moves to counter the actions of competitors and defend against external threats.
- Actions to respond to changing industry conditions, i.e., shifting demand patterns, new airport regulations, entry of new competitors.
[TBD]
Short-Term Objectives
The objectives detail what will be accomplished in relation to each goal. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by). An outcome determines whether the organization was successful in achieving its objectives. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
Annual Objectives
The strategic objectives are measures of change to bring about the achievement of the desired goals defined above; and whose achievement is deemed most important to the current and future health and performance of the business organization. Objectives provide specific milestones with specific timeline for achieving a goal. The attainment of each goal may require a number of objectives to be reached.
The strategic objectives for the barbershop include:
- Raise profit margins by bundling services to sell to current customer base at higher and charging higher prices. - [Goal: #1]
- Increase growth in sales by 50% to 126 clients' visits to shop per week by end of December 2018. - [Goal: #2]
- Increase growth in revenue by 50% to $165k by end of December 2019. - [Goal: #2]
- Capture bigger market share by increasing market share by 40%. In order to grow, the business needs to increase its share of competitive markets. - [Goal: #2]
- Increase customer referrals by 40% by end of December 2019. - [Goal: #5]
- Increase customer retention by 95% by end of December 2019. - [Goal: #5]
- Increase membership in loyalty program by 50% by December 2019. - [Goal: #5]
- Develop, where applicable, best practices in barbershop related operations and customer service/care.
- Develop methodologies for promoting the barbershop to airport authorities.
- Establish baseline metrics by which the City and the airport authority can evaluate barbershop performance.
- Quantify and define the relationship between air-side and land-side issues as they impact the growth of barbershop usage.
- Earn at least a 25% after-tax-rate of return on investment during next year.
- Reduce waiting time for walk-in customers to maximum of 10 minutes.
The objectives detail what will be accomplished in relation to each goal. The strategic objectives are outcomes desired by the owners and top management and whose achievement is deemed most important to the current and future health and performance of the business organization. The purpose of setting objectives is to convert managerial statements of business mission and company direction into specific performance targets/goals (something the organization's progress can be measured by).
Outcomes Analysis
Outcomes analysis takes the objectives and resulting data to see if the desired result was achieved. In addition, it reviews any ancillary information that might pertain to the objective's impact (outcome). An organization might not achieve an outcome because of unforeseen external events; this information is evaluated to plan for further objectives and potential unforeseen risks to success.
[TBD]
- Increased Profitability - To reach this goal, objectives could consist of increasing annual sales by 50%; reduce expense objectives such as controlling and cutting overhead experiences e,g., utility bills by 15%.
- Better Customer Service - This may include goals such as reducing complaints by 50% over one year; improve resolution times to customer complaints to a maximum of one business day; improve the substance of the resolution to complaints. To meet this customer service goals objectives could include providing better training for barbers, implement a policy where customers are guaranteed to receive a refund if they have a complaint by the quality of haircut/shave.
- Improved Staffing - This may include goals such as improved recruiting, retention, and labor cost management. To make the goal improve employee retention, for example, more specific, measure the current turnover rate, e.g., one employee in 3 leaves after three months; and decide to double this figure to six months. Objectives could include implementing a training program that details new-hire activities for the first 90 days on the job; implement one-on-one bi-weekly meetings with employees in an effort to build rapport and find out what's on their mind.
- []
- Profitability Goal Related Objectives
- Maintain net profit as a percent of sales at 20%
- Maintain positive cash flow
- Increase net profit by 10% annually until we reach 20%
- Revenue Growth Goal Related Objectives
- Increase growth is sales by 30% annually until we reach $35ok or more in annual sales
- Maintain annual sales revenue at $350k or above.
- Sales rank in the to exceed $500k in five (5) years.
- Increase market share by 30%
- Better Customer Service Goal Related Objectives
- Decrease number of complaints by 10%
- Increase customer referrals by 20%
- Increase customer retention by 90%
- "Improve customer satisfaction scores by 5 points each quarter".
- Improve Employee Retention Goal Related Objectives
- Reduce employee turnover by 30%
- "Improve employee satisfaction scores by 5 points each quarter".
- Implement one-to-one bu-weekly meetings.
- Implement training program
- Improve Corporate Social Responsibility Related Objectives
- [TBD]
- Implement a bonus profit sharing program for the shop's barbers.
- Develop an employee/barber training program.
- Design a marketing plan to increase purchases by current customers and attract new customers within existing target markets.
- Increase operational effectiveness and efficiency.
- Develop incentives to maintain high barber retention with a turnover rate of less than 20% annually.
- Build O'Hare Barbershop Brand
[TBD]
[TBD]
The organizational infrastructure defines the structures, processes and systems that institutionalize the barbershop practices, procedures and rule of organization, organized around the life cycles stages of the barbershop, such as:
- Governance and decision-making structures - [TBD]
- Business Structure - These are the legal structures an owner may consider when organizing a barbershop; these may include: sole proprietorship, partnership limited liability company (LLC), S corporation, and C corporation.
- Administrative structures - The administrative structures define lines of authority. It determines how the roles and responsibilities, and power are assigned, and how the work process flows among different management levels. For example, a barbershop might have an organization board with two board members and three officers' positions (president, treasurer, and secretary). The executive management structure might include a CEO/President, Operations VP, and marketing/sales VP.
- Policies, operating procedures, and protocols
- Human resources, recruitment, and staff selection - This outlines the number of staff required, their roles and responsibilities, and the process for hiring and training new employees.
- Training systems
- Supervisory and coaching system
- Service array, and service delivery system
- Information system and data supports
- Evaluation, quality assurance, and continuous quality improvement systems
- Communication systems (Internal)
- Communication systems (External)
[TBD]
Roles and Responsibilities
Once you have determined the goals you are working towards and the variables that might get you on your way; build a road map for achieving those goals. Set expectations among the team, and clearly communicate your implementation plan.
- Document all the resources available including: employees, teams, and departments that will be involves.
- Define roles and responsibilities required for achieving the objectives.
- Establish a communication process that everyone should adhere to.
[TBD]
Organizational Capabilities
Building a winning organization (Barbershop) requires the organization to identify and define organizational capabilities in behavioral and operational terms to address the question "what economic or customer value each capability delivers? A capability assessment identifies the organizational capabilities that currently exist and work well and those capabilities called for by the organization's corporate and business strategic priorities. These capabilities are the collective skills, abilities, and knowledge/expertise of the organization. Some of the organization capability dimensions of relevance include:
- Management Capabilities - These include capabilities in areas such as: corporate portfolio management and finance, business unit strategies and priorities, talent management and culture
- Operations Capabilities - These include capabilities in areas such as: Service Production and Operations, and customer relationship
- Technical Capabilities /Proprietary Assets - These include capabilities and strategic assets such as: Brand image and reputation, and tiered customer network.
Capabilities represent the ways people and resources are brought together to accomplish work. They form the identify and "personality" of a company by defining what it is good at doing, and in the end what it is.
[TBD]
If the corporation has the capabilities, enterprise advantage, and business portfolio it wants its corporate strategy is implemented. If the business unit has the customers, value proposition, and skills it has chosen to have, its business strategy is also fully implemented. Technically, a strategy can never actually be fully implemented because everything that was necessarily assumed when formulating the strategy - about customers, technology, regulation, labor market, competitors, and so on - is in a constant state of flux. There will always be a gap between where the company is and what its strategy call for. Closing this gap is implementation.
Closing the implementation gap involves capacity/capability develop is a perpetually evolving process of growth and positive change. At the heart of this capacity building process, is a set of functional capabilities. These are the essential management skills that allows for planning, implementing, and monitoring and evaluating initiatives for growth.
Policies
Salon/Barbershop policies are a set of rules and principles that guide how you carry out various actions in your business. Your policies also shape the processes and decisions you make in your salon and can serve as a handy reference for your clients and employees. Creating salon policies and procedures allow you to safeguard against unwanted or unexpected scenarios. Part of owning a service-based business means dealing with the ups and downs of managing staff and dealing with clients.
Client/Customer Engagement Policies
[TBD]
- Cancellation Policy
- Latecomer Policy
- No Show Policy
- Kids Policy
- Refund Policy
- Privacy Policy
[TBD]
Policies for Employees
Policies for staff are a little easier to get across and can simply be added to any onboarding documentation when staff is hired and listed in the break room so that it is clear what is expected of staff when they are at the salon.
There are many rules and policies that you can enforce on your staff. Below is a nice long list of suggestions:
- Staff is expected to arrive on time, ready to start work. Multiple late arrivals could result in dismissal.
- Workspaces and common areas are to be kept tidy. All staff are expected to clean up after themselves.
- No drama in the salon.
- The use of drugs or alcohol at work will result in dismissal.
- When calling in sick, management must be notified with ample time to find a replacement.
- Staff is expected to keep appearance tidy and professional at all times.
- Professionalism is expected, always. Staff is never to argue with customers.
- Staff is expected to treat one another with respect and professionalism at all times.
- Cell phone use is only permitted on breaks.
- If you are sick, stay home.
- Theft is not tolerated. Removing anything that is not yours from the premises without permission will result in termination.
- Customers are to be greeted as soon as they walk in the salon.
- Staff is to always be polite, friendly and upbeat with customers.
- Staff is expected to participate in all team meetings and training sessions.
- Staff is expected to recommend products and upsell where possible.
[TBD]
[TBD]
When evaluating long-term goals it is important to reflect on the goals themselves as well as the progress towards them. This process allows you to look at the past performance while preparing your business for the future. The process of assessing results and making necessary corrections isn't necessary a matter of evaluating whether your company has succeeded or failed in achieving your objectives. Instead, its a way to creatively and methodically inquire into when it's necessary to adapt and when your course of action is fundamentally sound.
Strategic Control
Strategy valuation and control includes:
- []
Operational Control
These include:
- .
[TBD]
Strategy evaluation and control actions include:
- Monitoring
- Evaluating Activities
Monitoring
Monitoring internal and external issues enables you to react to any substantial change in your business environment. If you determine that the strategy is not moving in the company towards its goal, take corrective actions. If those actions are not successful, then repeat the strategic management process. Because internal and external issues are constantly evolving, any data gained in this stage should be retained to help with any future strategies.
Outcomes and Outcome Measures
An outcome is the level of performance or achievement that occurred because of the activity or services your organization provided. Outcome measures are a more appropriate indicator of effectiveness. Outcomes quantify performance and assess the success of the process.
Some examples of outcomes and outcome measures include:
- In the hamburger example, some outcomes are the consumers’ perception of quality, or the ability of the product to eliminate hunger.
- An outcome measure is the result of a test that is used to objectively determine the baseline function of a patient at the beginning of treatment. Once treatment has commenced, the same instrument can be used to determine progress and treatment efficacy.
Outputs tell the story of what you produced or your organization's activities. Output measures do not address the value or impact of your services for your clients.
Copyright Enterprise Design Labs 2005 - 2023