LP FAQ in 2 is a new blog series by LP Innovations which answers the mostly frequently asked LP questions in about two minutes.Read More
What is it?
A statistical snap shot audit is an objective method to rank certain operational aspects of a store’s performance. It compares the store’s activities to company averages and scores the store based on being above, at, or below other store’s performance levels. So for example, a store with a $100 refund average would be ranked (and scored lower) than a store with a $50 refund average.
Why is it important?
Truly objective data can provide greater insight and be a better predictor of future and potential losses.
Long Story Short
A statistical snapshot is a form of Forced Ranking applied to stores. Although it is a true and important measure of a store’s performance compared to other locations, it doesn’t take into account important differences that occur due to store size, revenue, location, or staffing.Read More
An audit can be an extremely valuable tool to indicate whether or not a store is operating according to expected standard guidelines and may indicate a potential shrink problem. One would think it’s easy to start auditing; create it, schedule it and gather results. There is more to audit implementation than you think. Here are 5 areas that you should be considering.Read More
Expectations are a funny thing. Often they are completely reasonable, such as with the rules of the road. You expect that everyone will stop at the red light and go on the green…and speed up on that yellow. Other times our expectations can be a little bit “off.” Does anyone really believe that a “miracle” weight loss pill is the “secret the fitness industry doesn’t want you to know”? As a matter of fact, yes. Millions of people spend billions of dollars on such “secrets” each year in the belief that chemistry can replace hard work.
Expectations, however, are an important feature of the human psychology. They are mental “leaps of faith” that allow for a mostly smooth functioning daily life. If we had no expectation that people would obey traffic signals, there would be a lot more chaos on the road. If we didn’t form expectations, the future would be a dark, faceless place filled with uncertainty. In many ways, expectations drive behavior. When we “expect” a result, we begin to act in a manner that promotes that outcome. Problems only arise when expectations are either not realistic or when two people doing the same thing each have expectations for a different outcome. There is, of course, a business application for this, but let me first provide a personal illustration.Read More
I’ve been discussing the changing loss prevention landscape for a while. If I were to draw a picture that landscape would look much like an overgrown, barren field. This is not to present a negative, hopeless picture of the profession’s future, but rather to suggest that we cannot ignore the changing environment and simply “hope” that the days of old will return. Too many factors suggest that retail has struggled to transform for the past several years and that those who survive will be a different organism.Read More
Achieving a goal is simplistic in its complexity. We define our target objective, we create the process to get there, and then we periodically measure our progress. In loss prevention, the latter we measure through the audit practice. In that sense an “audit” can really be any type of measurement. In the retail and restaurant environment, we audit many different practices and at times our overzealous desire to measure “everything” can result in information overload - a topic I’ll discuss further in an upcoming post.
Although every audit question provides some form of information, some questions are better than others are. This principle, loss prevention interviewers learn early in their careers.Read More