Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit

RIP Example 4: Grand Slam

This RIP was designed to increase the average sale in a chain of retail hardware stores.

■ KPI: Average Sale (total sales divided by number of transactions).

■ Quantifiable Objective: To increase Average Sale by 4 percent in 90 days.

■ Financial Effect on the Company:

• Increase revenue by $200,000 ($800k annually).

• Increase profit before tax by $98,000 (annual).

• Increase incentive pool by $26,000 (if threshold is met).

• Drive equity value (they had an Employee Stock Ownership Program).

■ Actions:

• Identify best-selling products and merchandise accordingly.

• Have daily “employee specials.”

• Allow employees to identify their favorite products and to post signs for them (for example, Susan recommends this!).