Off Target

When Target came to Canada in 2011, not only were consumers surprised that the retailer opened up over one hundred stores across the country, but so was the business community. To do such a “big bang” approach, you either know what you’re doing or you’re taking a major risk. Unfortunately for Target, its major risk did not pay off.

Target’s biggest failing was in not piloting its entry to Canada with one or two stores before launching full scale. Any project manager worth their trade will tell you that starting small and building up when it makes sense to do so is the best guarantee of success.

In addition to missing the mark with their full-scale roll-out across Canada, Target missed out on the basics of operations management. For one thing, their demand forecasting appears to have been a dismal failure. If they had forecast properly, they would have learned that Canadians preferred the U.S.-type Target stores and not reincarnations of Zellers.

Target also missed out on strategic capacity planning as well as facility layout design. Their inventory systems management was absent, to say the least. This also speaks to their lack of adequate supply chain management. When inventory is scant (as it was at Canadian Target stores), one might reasonably presume that the retailer was using some type of customized just-in-time fulfillment. However, this, too, appears to not have been part of Target’s strategy.

A material requirements planning or enterprise resource planning software would have helped Target manage its stocks and stores. However, we can see that even if Target had such a system, it, too, failed them.

And what about quality? Quality and price are generally prominent factors for consumers. Integrating quality into every element of an operation allows an organization to reduce its prices while still remaining profitable. Clearly, quality does not appear to have been a high priority for Target.

While one can hypothesize about Target’s demise in Canada, it provides little comfort to Target employees. As well, the company itself is now targeted (pardon the pun) as a losing venture:  At least, in Canada.

One thing is certain, though: Target really did miss its mark!

Thriving or Surviving?

What is your worst case scenario? What will you do if: (a) you are unable to prevent it from happening, or (b) you are unable to mitigate the outfall from its actual occurrence?

What if the worst possible thing happens during your project, in your company, in your life? What will you do if you cannot prevent the thing you thought you could prevent?

It’s true. Sometimes even the best thought-out plans and prepared-for scenarios are beyond our control.

Many organizations create risk management strategies and hope to never use them. Some even go beyond planning and simulate risks to test their risk mitigation strategies. But imagine an environmental, financial, or other disaster that is beyond your or your risk management strategy’s control. The risk blows up your project or your organization.

What happens next is the difference between surviving and thriving.

An organization that survives will patch up the outfall from the risk and continue business with a limp, hoping to get back to pre-risk operations.

An organization that thrives will look beyond the risk, reinventing itself to become a stronger, better service provider. In short, companies that thrive are lean to begin with and are able to bounce back stronger than ever

Many companies anticipate and identify challenges and opportunities in any project. That is a typical first step. However, moving beyond the first step involves change—and change is difficult. For one thing, agile companies (those that thrive) do not have an emotional attachment to the corporate status quo. They are not in love with their product or service. In fact, the less emotionally attached the corporation is to its products, processes, services, etc., the easier it is to change and become a thriving organization.

A thriving enterprise reinvents itself frequently. It not only looks forward five, 10, 15 or more years down the road, but it continuously adjusts its products, processes, and services to meet the approaching challenges and opportunities. In fact, a thriving organization learns to “fail forward” to thrive. That is, developing a perspective around change, challenges and opportunities that are relentlessly solution focused enables organizations to thrive.

Like love and respect for a family, revisiting and remembering the past is good, but not if it stalls your future. Organizations that pre-emptively make the necessary hard decisions, will not only sustain their future, but will thrive in doing so.