Kmart
Context:
A large chain of retail stores in Australia and New Zealand, founded in 1969, faced the need to adapt in an age of unpredictable and accelerating change.
WHY:
Serious disruption from Covid caused supply issues and the organisation was not set up in a way to operate effectively under new conditions.
Needed to adapt at pace to stay competitive and serve customers needs
Opportunity to ‘bottle’ agility that teams showed in Covid response
Approach:
Early step taken to form an Executive Action Team (EAT) to define questions and how they would be answered to manage balance between changing and running the business
Created 6 pillars in an enterprise blueprint that was the starting point pattern for all teams
Started by trialling an approach with one initiative, establishing an OKR and governance framework linking work towards end state vision. Made changes to the funding model.
Created autonomous cross functional teams leveraging a hypothesis-driven approach to deliver through experimentation.
Impact:
Better
- Market valuation
- Use of fabrics - 50% consolidation
Value - Delivery of OKRs
Sooner - Ability to start work, similar to a start up
- Digital prototype lead time reduced by 4 weeks
Safer - 9% improvement in lost sales in supply chain (sales lost to being out of stock)
Happier - Teams who wouldn’t go back to ‘old’ way of working
Link to the video: https://youtu.be/AmjfOojtz5k?si=YHtepenQj3LZQVdZ