Turn Right to Save Money!!

UPS

 

Improving the efficiencies within a corporation are usually the biggest tasks for upper management to tackle, and especially for a global company like UPS (with operations in over 220 countries and over 395,000 employees (UPS)): How do they stay efficient and be competitive? and Where should they put their focus?

Over the past few years UPS has been testing and implementing a new system to save time, money, and gas consumption within their operations. How did UPS, one of the largest shipment and logistics companies in the world, come up with one of the easiest solutions to being more efficient in these areas? Well they did it by just turning right!! When I first read about this, I really didn’t believe it and was in wonderment – is it really this easy? UPS did numerous studies on the effects of left turns and the data showed lost time at backed up left turn lanes, a waste of gas, and a disproportionate number of accidents. (Priceonomics)

When I did some research and looked at the numbers that UPS came up with, I was really blown away. According to Bloomberg during their testing phase during 2010 – 2012 UPS saved, “more than 1.5 million gallons of fuel and reduced carbon dioxide emissions by 14,000 metric tons, eliminated 206 million minutes of idling time and saved more than 1.5 million gallons of fuel.” This simple idea didn’t come about over night though. It took UPS almost a decade to design and implement an onboard program – Orion, On-Road Integrated Optimization and Navigation, that will utilize incoming pickups and reroute trucks to be the most efficient. This was first introduced in 2012 to about a quarter of their fleet and will eventually be on all their trucks by 2017.  According to UPS, the reduction of 1 mile per day for every driver will save the company as much as $50 million a year in fuel, vehicle maintenance and time. (Forbes)

With social responsibility being a prevalent topic in society and used in marketing and PR, UPS has found a way to use this to their benefit in more than one way.  The benefits are clear-cut: not only does this benefit the company’s bottom line but also benefits social causes that are aimed at reducing greenhouse gases and car emissions.

What other ways do you see this benefiting society?

 

 

http://www.pressroom.ups.com/Fact+Sheets/UPS+Fact+Sheet

http://priceonomics.com/why-ups-trucks-dont-turn-left/

http://www.bloomberg.com/news/2013-10-30/ups-uses-big-data-to-make-routes-more-efficient-save-gas.html

http://www.forbes.com/sites/alexkonrad/2013/11/01/meet-orion-software-that-will-save-ups-millions-by-improving-drivers-routes/

Why Should the NFL Change?

Fan or no fan, most people are aware of the recent PR nightmare for the National Football League which began when a video surfaced showing Baltimore Raven Ray Rice knocking his then fiancée, now wife, unconscious. Following the Rice video, Adrian Peterson of the Minnesota Vikings was arrested on child abuse charges, and multiple other NFL players were linked to domestic-violence incidents. With all these serious allegations you might think that the NFL would face some backlash, however TV ratings for the 2014 season have surpassed those of last year. Why?

Football is the undisputed number one sport in America. In July of 2013 Sports Media Watch released a list of the 50 most-watched sporting events between January 1 and July 16 and of the top 10 most-watched events, the NFL had 10. That’s right, the most-watched sporting events of the first half of 2013 were NFL playoff games and number 11 on the list was the NCAA BCS Championship game between Alabama and Notre Dame. The 2013 Pro-Bowl Game, which is widely regarded as a joke, had higher ratings than any Major League Baseball game or National Hockey League game. Football, especially the NFL, has a strong hold on America’s televisions. In fact, it was the television that grew football. As televisions became common in households, networks looked for programming to fill the Sunday void. The scheduling of games fit the timeslots and the flow of the game was conducive to black and white televisions. In addition, the stoppage of play created the perfect, natural point to break for commercials. Now broadcasting deals generate around $5 billion for the NFL.

The NFL has taken advantage of technologies with Madden, a $4 billion franchise that set the bar for sports video games. Madden is key for the NFL, which is trying to grow an international fan base. Although it may take time, the virtual world is connecting people more than ever before and the NFL is in position to capitalize on it.

However, despite its broadcasting and gaming success, football could be facing new problems in the upcoming years. The recent flurry of domestic-violence incidents, criticisms of NFL Commissioner Roger Goodell, and a lawsuit filed by NFL cheerleaders have put the spotlight on female football fans. Women make up about 45% of the NFL’s American fan base and are the NFL’s fastest growing demographic, but the recent problems could be hindering growth.  There is also a decline in youth football participation, which could be linked to another lawsuit filed against the NFL, this time by thousands of former NFL players for concussion-related claims.

 

Questions:

  • Do you think the NFL’s actions regarding the Ray Rice incident will harm them in the future?
  • Does the NFL have any incentive to change its policies?
  • Do you think the NFL will continue to have positive growth into the future?
  • Is there a viable global market for the NFL?

I think the NFL’s actions/reactions to Ray Rice will be a blemish on their record, but I don’t believe any long-term damage will come of it. As a female sports fan I would love to see more inclusive advertising or even acknowledgment that female football fans exist, but I don’t have any realistic expectations for the NFL to change its outlook. The only way I can see them changing is if over half of the 45% leave the game all together, but as a sports fan I can’t see myself dropping everything and cutting it out. I am sure that the NFL will continue to grow as it discovers new avenues to expand the game and I will be interested to see if the National Football League catches on worldwide.

 

Link to the original New York Times article: http://www.nytimes.com/2014/10/12/magazine/whats-the-nfls-incentive-to-change.html?ref=business&_r=1

 

 

 

 

Olive Garden: Success or Failure?

The restaurant industry has been struggling over the last couple of years and Olive Garden is no exception. Darden Restaurants, which owns Olive Garden, has been accused of bad management and distasteful food (Smith). In chapter one, we have learned in class about ten strategic decisions of operations management. Olive Garden has neglected most of these strategies.

The strategic decisions are as follows:

  •   Design of goods and services
  •  Managing quality
  •   Process and capacity design
  •  Location strategy
  •  Layout strategy
  •  Human resources and job design
  •   Supply-chain management
  •   Inventory management
  •   Scheduling
  •  Maintenance

One article that I read on CNN.com, proves that Olive Garden has neglected the first two strategic decisions by not defining the requirements of operations and neglecting customer’s expectations. Olive Garden’s food has been deteriorating in quality and critics say that “there are too many preservatives and artificial ingredients”. Olive Garden failed to provide higher quality to customers, hence why the company’s stock decreased by five percent this year.

Furthermore, Olive Garden lacked in its Location Strategy as well. Due to its low sales, Red Lobster was replacing Olive Garden, making the restaurant chain far from its customers. Not to mention that Olive Garden continued to raise its prices. It is evident that Olive Garden has not considered costs and other logistics.

Although I have never worked at Olive Garden, my sister has said that within the last year, the environment, food and service has changed tremendously. When my sister was first hired, they looked for employees that were motivated and had previous customer service experience. Now, many employees have quit because the company was unable to integrate each employees schedule with the demand that was needed on a specific day.  For example, on Saturdays they would be shorthanded, while on a weekday, there would be too many waiters working and shift was not evenly disbursed. This shows that Olive Garden’s Layout and Human Resource and Job Design Strategy was inconsistent because the company was not able to keep their qualified employees nor keep the “flow of personnel and information” steady. Furthermore, as the year continued, their inventory management was organized. My sister told me that there would be a surplus amount of breadsticks available for consumers, but when it came to certain entrees or desserts, the restaurant would be out of that particular product for weeks at a time.

Olive Garden is an example of another company that was successful a few years ago, but by not following the ten strategic decisions, the company’s consumer base, food quality and service decreased. Now, knowing some of the personal experience of working at the restaurant and what critics have written about Olive Garden, do you think that its operations is running smoothly? If so, why? In addition, if not, how do you think the restaurant can improve?

Sources:

http://money.cnn.com/2014/09/08/news/companies/olive-garden-pasta/index.html?iid=EL

http://www.reuters.com/article/2014/09/12/us-darden-results-idUSKBN0H717A20140912

 

The Key To Success: Planet, People, Profit

There are questions that people ask about the route a company should take in order to be successful. The main question is, what does it mean to be successful? Is it always about the money? Configuring a company’s operations of benefiting the community may bring out the answer.


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Corporate Social Responsibility has become a huge impact on the image companies portray. One way to look at this would be future investments. I’m not only talking about assets we may gain, but also maintaining a healthy environment we all wish to live in. There are so many products and services that emit toxic chemicals that damage the planet we live in. Now if you don’t support or care about the health of our planet, I’m sure you care about the reputation of the company you work for. In today’s society, consumers prefer to purchase green products and services over others. From my own experience, when I saw two identical products where one promoted “going green”, you can bet I chose the product that supports the health of our environment. Choosing the “going green” route will label your company in the ecofriendly category that will support its marketing campaign.

Addition to helping our planet, Corporate Social Responsibility improves businesses’ public relations. As mentioned, consumers prefer products that do not harm our environment. Representing an ecofriendly company can also have an opportunity to connect with potential suppliers. Going green includes conserving energy and using recycled products. These acts will reduce costs of businesses and attract suppliers. Think yourself as a supplier. Would you rather partner with a business with low costs and responsible actions, or one that does not have these attributes? I don’t think I need a response.

Let’s get into the most desirable component that derives from Corporate Social Responsibility. Profit. To put it out there, thousands of businesses are profitable who aren’t socially responsible. They may even be more profitable than businesses that are socially responsible. However, looking at a long-term perspective, businesses that are socially responsible are more likely to stay profitable. There are numerous options of cost savings such as recycling and reducing energy consumption. Maintaining an appropriate level of social responsibility will look more appealing to the community, allowing businesses to expand.

Benefiting both the consumer and the supplier will result in a successful company and a happier community. I personally took a class on Corporate Social Responsibility where I learned how much of an impact this trait could do for a business. The best method for a business to succeed and maximize their revenue is to benefit the community and establish a reputation. Taking these steps will open new opportunities and accomplish the desired goals. With this in mind, LET’S GO GREEN!

 

Do you believe that Corporate Social Responsibility can determine how well a business will operate?

Other than “going green” what other ways do you believe Corporate Social Responsibility can be portrayed?

What do you think is the most important aspect of Corporate Social Responsibility? Is it the reputation of a business or actually improving our environment?

 

Sources:

http://www.businessrevieweurope.eu/leadership/164/Feature:-The-Evolution-of-Corporate-Social-Responsibility

http://smallbusiness.chron.com/benefits-going-green-business-3225.html

From #Bendgate to #Hairgate

We’ve all heard about the infamous crowd of customers camping out for days outside the golden gates of the Apple Store, anxiously waiting to get their hands on the new iPhone 6 and the iPhone 6 plus.  Shortly after the initial “new toy” excitement, it was reported that the iPhone 6 plus was suffering a design failure and bending while stored in people’s pockets.  This bending property quickly began trending on twitter as #bendgate and started a frenzy of “who can bend their iPhone 6 plus”.

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As soon as the bending ordeal began to simmer down, a new problem arose with the iPhones.  Known on twitter as #hairgate, users are complaining that the new iPhones are snagging the hair from their heads and faces.  The issue here lies within the small empty seam between the glass interface and aluminum casing.  While iPhone owners are talking on the phone, their hair gets stuck inside the seam.  As the user moves the phone away from their head to put it down, their hair is torn out of their head.

Hairgate

Both the bending and hair pulling kinks are design issues that have no noticeable affect on the actual usage of the phone.  So what’s the big deal? Well customers don’t want to wait days for a phone that works great but bends after a few days of regular use.  Customers want a phone that has the whole package, software and hardware.

Although I think it’s safe to say that the pros have definitely outweighed the cons when it comes to the new iPhone 6 and iPhone 6 Plus, the question still remains, why does this highly awaited phone have two significant design issues?  I believe that the answer lies within the operations management of Apple Corporation.  Somewhere along the deign process, employees decided to turn their heads and ignore pertinent issues with the design of the new iPhones.

The lack of design in the iPhone reminds me of the paper puppet activity we did in class.  Two sheets of green paper were noticeably damaged, however, not a single employee in the design process tried to communicate the damage.  Why? Well it could be for various reasons, but the most obvious answer would be the idea that someone else will take care of it.  Each employee saw the damage and brushed it off since it was not part of their job description.

Lack of communication occurs in the operations management of many companies, Apple is simply the latest to be publicly criticized for it.  Had some of their employees simply verbalized their observations on test models, perhaps Apple would not be obliged to replace so many bent iPhones.

What are your thoughts? Do you think the new iPhone’s design issues could have been avoided with more effective operations management? Or do you think this was simply an accident?

Sources:

http://www.independent.co.uk/life-style/gadgets-and-tech/forget-bendgate-now-hairgate-is-apples-latest-problem-with-the-iphone-6-9777301.html

http://www.businessinsider.com/iphone-6-plus-bending-issue-2014-9

An UberlyFantastic New Business Model

Recently ride-share programs have been all the rage. I myself cannot remember the last time I took a cab. In my opinion these ride-share programs, and I will specifically be speaking on the behalf of Uber as that is the only one I utilize, have massively decreased the amount of money I spend on cabs. On a Friday night, I can get from downtown to Lincoln Park area for about $10-$12 which is far cheaper than the usual $20 with tip I give to cab drivers.

The operations of Uber itself are quite unique and they have been as successful as they have found a way to thrive on the free-market system in the United States, as well as other countries in the world. There has been recent political pressure to shut-down the companies but it looks like those demands will not be fulfilled.

Uber has morphed together the fast smartphone world of today as well as finding a massively over-priced market and have completely changed the world know to cab drivers. We all have had experiences were you sit in a cab feeling uncomfortable as they make no effort to talk to you, are on their phone talking the entire time, and the inside of the car is beat up. Uber has change that by operating a unique manner few have tried to do. The operations of Uber itself have always impressed me as they literally have a network of hundreds of thousands of driver and they have penetrated the global markets as well.

I will always take Uber now over taking a cab, except for one instance. Surge pricing has always confused me and at times will annoy me to no end. Last season my friend and I attended a Blackhawks game and we took an Uber. Since it was snowing there was a surge pricing in effect; however, we failed to look to see the multiplier of the surcharge. Our ride ended up costing us about $60. At the time Uber was not super transparent about surge pricing but since then they have made it clear to the consumer by making sure to have the consumer actually accept the surcharge before the car is ordered.

Another thought is if Uber’s growth will sustain itself, or will there eventually be too many drivers for too little of consumers? This in my opinion directly relates itself to our class in Week 4 where we were discussing forecasting. With a new company such as Uber being in a newly created market space it is hard to look to comparables. Using forecasting techniques such as weighted average will be useless as the amount of high growth will through of the long term sustainability Uber is looking to achieve. Other techniques such as Exponential Smoothing and Trend Projection will be useless as there is not enough years to look to when performing research. It will be interesting to see in the upcoming years if Uber avoids the over forecasting pitfall so many new companies do and continue to transform the car industry as we know it today.

Uber-Taxi-NYC2-1024x615

How would you go about and forecast Uber’s growth?
Have you ever used a ride share program? If not, what would your reason be?
Have you found the ride-share programs to be dramatically cheaper than cabs?
What is your opinion about surge pricing? Is it a necessity for Uber to efficiently maximize profits or will it ends up hurting the company by turning away consumers?

Sources

http://consumerist.com/2014/09/18/how-do-uber-and-lyft-work-and-why-should-i-even-care/
https://www.uber.com/cities
http://www.nytimes.com/2014/10/01/upshot/uber-improves-life-economists-agree.html?ref=technology&abt=0002&abg=1

A Fashion Empire in Silicon Valley

sophia amoruso                 nasty gal

For my post, I decided to reflect on a book I am currently reading which I thought would relate perfectly to our class. The newly published novel is called #Girlboss and was written by Sophia Amoruso, founder and CEO of Nasty Gal, an online retailer of new and vintage clothing.

Nasty Gal was started eight years ago as a side project when Amoruso began selling vintage items that she found at local thrift stores on eBay. She always had a passion for clothing and fashion trends but never had the plan for her store to take off the way it has. At 30 years old, she is the head management at a $100 million dollar company in Silicon Valley. Beginning as a misfit, shoplifting from her local mall and paying her clothing models with burgers, Amoruso has made many operations management improvements as her company has expanded.

In her book, #Girlboss, Amoruso recounts on her experiences that got her to where she is today. Throughout the novel, she gives her tips for running a successful business. Since Nasty Gal began as a side project, selling solely vintage items, the company has made many changes in their goods and services. Not only does the online retailer sell unique vintage pieces, but clothing from independent suppliers and their own original collection. As of 2014, Sophia Amoruso has been quoted saying that the company plans to open physical store locations, in addition to the online portion, beginning with a store in L.A. As their customer base has expanded, Nasty Gal, has improved its service and kept up in the maintenance department in order to maintain relationships and fit the needs of the people it serves.

Inventory management is another portion of the business that Amoruso has had to make many changes in since the beginning. Because of the site’s immense popularity, Nasty Gal has had to search for inventory in different places. The one-of-a-kind vintage pieces are great but they can only serve so many customers. Amoruso has hired a team of people, some being her best friends, that she trusts to stay up to date on current trends and the clothing that everyday women need and want. As Nasty Gal has grown, she has had to change the way in which she manages her large group of employees compared to how she got things done when it was her a few other co-workers. “I’m making long-term goals, which I never had in the beginning, and am trying to create meaning and have conversations about it, so that everybody can take that and do a better job. It’s a completely different team I’m managing today compared to the team I was managing six years ago,” said Amoruso in a recent interview.

Lastly, despite the company’s rapid success, Amoruso has tried to stay grounded and stick to the original goals and values of the project. She wants to take pieces that are irrelevant and make them things that her customers need and want. There is an intense focus on high quality products and service. In addition to have a successful business, she wants to hire people that are excited about working in the fashion business and building the Nasty Gal brand. “…I want people excited about this opportunity, who can unleash big-time experience to augment the business, and who don’t try to cookie-cutter anything. I want people who are self-led and self-motivated, who take things personally. There’s no “that’s not my job” here.”

Questions

How to you think operations management comes into play for other start-up companies? Do you think the management at start-ups usually have all of their strategies outlined before they begin their business or do you think things usually evolved over time, as in the case with Nasty Gal and Sophia Amoruso?

Sources

http://www.fastcompany.com/3027023/the-secrets-of-a-nasty-gal

http://www.washingtonpost.com/blogs/on-leadership/wp/2014/05/14/from-anti-capitalist-to-ceo-how-nasty-gals-sophia-amoruso-made-it-big/

Big Box Retail Stores going the way of the dodo?

I remember when I was a few years younger about 18 at the time and needed money for whatever an 18 year old needs money for. I had a sales associate job with a company whose name I will not divulge for the privacy of the company. Although I can tell you that the name rhymes with ‘Best Buy’. The job was one of the less enjoyable ones that I have held, I always thought this was a problem because of bad management but now I realize that the problem was bigger than the store management. The problem with the company was how the operations were structured; the operations encouraged a high rate of turn over and a low level of employee morale. I was of course, an employee.

 

As a sales associate my job was to sell product for the store. Sales were tracked by the amount of units an associate sold, but this was not the most important statistic that was viewed. You see, computers are not very profitable for a store to sell. The store either breaks even or looses a few dollars when selling a unit. “Mario, then how does a store stay in business with such an unprofitable model?” Well I’m glad you asked! You see, the managers instill in the employees that every single computer should be sold with an extended warranty, geek squad recovery discs, or a home instillation by a geek squad member. Best Buy all of these services are basically pure profit for the store and are the statistics that the managers are interested in. This is all fine. A company needs to make a profit, which is the essence of capitalism.

 

However, where the company falters is how these goals are incentivized. Managers view the ‘attachment’ numbers of employees like gospel. Employees that can sell are given more hours and ones who do not are phased out. There is a very high rate of employee turn over. The employees make an hourly rate no matter how much they sell or don’t sell. The managers earn a bonus depending on how many attachments are sold with the computers and how profitable these attachments are.  As one can infer this would create a rather hostile working environment between employees who can care less if a customer does not want recovery discs with their laptop because it does not affect them directly. While at the same time managers can be seen swooning whenever a customer declines additional services. Ultimately harsh words are said to the employee and the day goes on. As expected morale and company loyalty are either deplorable or nonexistent.

 

So, what do my fellow students think about the operations structure of this company? Do you agree with the structure to work employees with no incentive, a bad environment and bad morale? Or do you have any suggestions on how a company can go about to remedy this issue.  Can this be fixed or do you foresee more companies going the way of the dodo and Circuit City?

Is that easy to be a restaurant manager?

    Is that easy to be a restaurant manager?  Most people’s answer will be YES. I was working at a restaurant before, so i know it is not that easy to be a restaurant manager. On the contrary, it is under many pressure. Restaurant management involves in many different aspects, including inventory ,dealing with staff, public relations, customer service and so on. Managers are responsible for the business performance of their restaurant as well, such as service, health and safety, and maintaining high standards of food. Restaurant managers also ensure that restaurants operate efficiently and profitably while maintaining their reputation. They must coordinate all kinds of activities.  Moreover, restaurant management combines strategic planning and day-to-day management activities, such as shift pattern organization and so on.

As a restaurant manager, there are many tasks for them to complete. Tasks of the restaurant managers are depending on the type of the restaurant, but usually include:

Business activities:

-Taking responsibility for the business performance of the restaurant. – Organising marketing activities, such as promotional events and discount schemes  – Preparing reports at the end of the shift/week, including staff control, food control and sales and inventory. – Planning and coordinating menus.

Front-of-house:

– Coordinating the entire operation of the restaurant during scheduled shifts. – Managing staff and providing them with feedback. – Responding to customer complaints. – Meeting and greeting customers and organize table reservations. – Recruiting, training and motivating staff.

Housekeeping:

-Maintaining high standards of quality control, hygiene, and health and safety. – Checking stock levels and ordering supplies. -Preparing cash drawers and providing petty cash as required. – Helping in any area of the restaurant when circumstances dictate.

Absolutely, the working capacity of the restaurant manager  is very largePersonally, I feel like it is not that easy to be a restaurant manager. However, how to be a successful restaurant manager? Here I have two advices:

1. Start out in a small role and learn the business. Some of the best managers started with their  careers as waiters or hostesses, and they  worked their way up from that position.Once you know everything of the restaurant, no matter who make any mistake, you will quickly know what happened and how to solve it because you have ever experienced it.  As a restaurant manager, you must know everything of the restaurant. For this reason, try  doing all the role at the restaurant so that get familiar about all the position.  Career progression is very important when trying to move forward as a manager.

2. The customer is always right.  This is the  golden rule of business. It takes patience and a commitment to always putting the guest first and everything else second. Even if you don’t agree with a customer’s complaint, how do you handle it will determine if the customer comes back to your restaurant next time?  It is actually a issue about the image of the restaurant. If a customer complains for no reason, but if you still serve them as they are right, they will be happy and will give you a positive feedback. They may recommend the restaurant to their friends and visit the restaurant next time. On the contrary, if the restaurant tell the consumer that it is not their fault, they might be angry, and give the negative feedback to others about the restaurant. They will never come back again.

Hope these tips are helpful for the people who are interested in the restaurant management. So do you still think that it is easy to be a restaurant management?

Resource: http://www.themanagersoffice.com/advice-for-a-new-restaurant-manager/2013/01/18/

http://www.wikihow.com/Become-a-Restaurant-Manager

Retail Job Management Issues

For about a year and a half, during the end of high school and the beginning of college, I worked at GameStop. During that time I had three different managers and many different assistant managers. After learning more about operations management, I can reflect on what my managers did well and did poorly. Some of the things that were managed poorly explain why I did not enjoy working there a lot of the time.

One of the main issues at GameStop was what tasks were seen as higher importance than others. As an associate, my job was to work the register and to organize and put away games on the shelves. I found that the other associates would waste their time chatting while I was always sure to work on organizing games when I was not at the register. Whenever I would work, the store started off as a mess and I would get it organized while I was there. The problem here was that no one was being told that they should stop standing around and actually put games away. My managers would always complain to me that the other employees would not organize well, but did nothing about it.

Although I was always on task, I ended up being told that I was not doing well because my sales numbers were not high enough. Some days I would get great numbers, but other days I would not, which showed that what customers buy is not completely dependent on me and how I sell the game, but much more the customers decision. I do understand that selling the games and memberships is of high importance, but I think my managers could have focused on more than just numbers when it comes to employee reviews.

These complaints bugged me and gave me less motivation to work hard, but what I really thought was a poor decision was how my manager decided to schedule me and the other employees at my level. It was clear that I was better at organizing the store and that the other associates were better at selling. Since my numbers were not great, my manager decided to put me on the schedule for busy nights so I could get better at selling, thus pushing the other employees to less busy days. While it is good to learn and get better at what we are not good at, I think it would have made much more sense to put me on the less busy nights so I could focus on getting the store organized and fixing and cleaning up what other employees had organized poorly. The result of the new schedule was that the store was a mess because I had no time to clean it and we did not get great numbers because I was not skilled at that.

Do you think it is more important to have employees improve on what they are not good at or is it better to delegate tasks according to skill level, in order to have higher productivity levels?