Monday, July 2, 2007

Danny's Music Spot

Danny backed into his dream job. It was luck. He has owned a music store for the past 30 years but it didn’t start out that way. His family came up with a business plan and, almost by default, Danny eventually took over. Danny was always a working musician and has benefited greatly by being a music store owner. Still, he looks forward for the day when his current lease is up and he can scale his involvement to a manageable size.

Working with landlords and leaseholders is a constant pain. There are constant time-consuming fights about the most seemingly insignificant details. It drives Danny and other business owners crazy.

I asked Danny why he doesn’t take more time off. He laughed, apologized, then got serious. He can’t leave the store because he can’t fully trust the personnel and constantly worries about how the store is doing.

Although Danny has a big stack of resumes, it is very difficult to find the right people to work in the store. People, especially musicians, are difficult to evaluate. By default, you need musicians; people who will work for less salary that most places. Sales staff must be able to demonstrate the merchandise. They must be able to play music and explain the technology behind complicated electronic equipment. In Danny’s case, since he holds a pawnbroker’s license, personnel must also carefully evaluate used equipment and price purchased equipment in a way that produces high turnover that creates profit.

Musicians are not inherently go-getters in the business world. When Danny finds someone who is competent in most aspects of running the store, he counts his blessings and hopes they stay for a while. There are a few who can become the type of general manager that Danny can trust to run the store while he is away. One worker would look for things to do, if he wasn’t waiting on customers, he would grab the Windex and clean something.

In terms of customer relationship, Danny says that two out of a thousand customers will make you want to quit. This business brings in lots of folks who are looking for value in a musical instrument but every once in a while certain customer demands will get the best of you.

Danny’s business is subject to outside influences including the economy and the musical instrument industry. The industry has moved to the Internet where buyers and sellers need no intermediary. eBay and other online auction places have taken a chunk out of local sellers’ business. Chain companies like Guitar Center has also changed the way musicians buy and sell equipment.

Suppliers and other business have a mind-set that you are like them. That you talk and act the way they do. This isn’t so says Danny.

Wednesday, June 13, 2007

Tuesday, June 12, 2007

Management at Starbuck's

My interview with Matt, general manager at a busy Starbuck's on a mall property in the Phoenix area was squeezed in on a Monday afternoon, his best down time of the week.

The organizational structure is not unlike other retail/service stores. Each store has a general manager and an assistant manager, each with varying levels of duties. The difference between a general and assistant manager is basically the ability to order certain products. District managers oversee between 8 to 12 stores. Regional managers cover, of course, larger geographic areas, for example, part of Arizona, all of New Mexico and parts of Texas. Significant travel is a requirement at this level. Regional managers report to one of two vice national presidents of retail. Starbucks has over 12,000 stores and is moving toward a goal of 40,000 in the next few years. This means that district and regional managers' territories are always shifting.

Managers and assistant managers are the only employees considered full-time. All other employees are part-time and participate in benefits.

Matt is responsible for supervising about 18 employees. He sets their schedules does their performance evaluations. His theory of supervision is clear, "I work for them." If they have roadblocks to success, Matt removes those barriers. Like customer relations, supervision is based on relationships. When he talks about the supervisory aspect of his job, he uses words like coach and teach instead of supervise or manage.

Few of Matt's baristas have second jobs. Their motivation for work is that they work for a successful organization and they share in that success. Starbuck's is one of the Best 100 Places to Work. Starbuck's has a policy of promoting from within the organization. Approximately 60 percent of Starbuck's work force promotion is internal.

Matt has managed three stores in the past few years and took over his current store which was, at that time, considered under-performing. He used his management skills and gained the trust of the employees to change the culture of the store.

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STARBUCK'S RESOURCES
Here's a link to the Starbuck's unofficial gossip blog. Very interesting insider information about everything Starbuck's usually from the employee perspective.

Starbuck's union blog. Industrial Workers of the World's blog site to unite Starbuck's workers.

AeroSpec

AeroSpec specializes in the manufacturing and support of production equipment, control panels and control systems.

Monday, June 11, 2007

Project Begins Today

The MGT project begins today. I will be posing content soon and creating a navigable site throughout the week.

Friday, June 8, 2007

Purpose of the Blog

This blog is based on a 2007 summer project to increase my personal and professional growth related to teaching MGT 101 Techniques of Supervision and MGT 276 Human Resource Management. This project is funded by MCLI, Maricopa Center for Learning and Instruction.