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SALES STRATEGY


– is then appointed for each of the new processes. Kaizen teams – as few as two or three people per team, and as many as 10 – are then created to support each manager, and charged with designing the new SOP to deliver each of the Future State processes. These teams review the current


state SOP for each step of the process, identify and eliminate waste, and through extensive discussion create a Future State SOP. Depending on the complexity of the SOP, a Kaizen can take as little as a few hours or as long as a few months – but eventually a well-defined, Lean SOP will be developed for each process in the Future State VSM. These are then tested, reviewed, tweaked and revised until the Kaizen team is satisfied with the deliverables. With a very high bias on action, the team motto during this entire process is: “Do not let perfect get in the way of better.” For most companies, this will be the


first time that SOPs have been designed mostly by ‘the field’ – the frontline staff – as opposed to the ‘ivory tower’ of management, and the resulting level of employee empowerment and buy-in is usually exceptional. The long- term execution of these SOPs then improves dramatically as a result of this empowerment dynamic.


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Once all Kaizens have been tested and


approved, a Report Out is scheduled for final approval from the executive management team, in which each new, Lean SOP is assessed for financial, legal, cultural and ethical compliance with company standards. Once they have been approved – with tweaking if need be – a Lean rollout of each is systematically designed and launched. Incomplete Kaizens continue to evolve and are launched as they are approved.


• Double digit improvement in sales closing rates


• Double digit improvement in the growth of sales


• Enhanced guest/new member point of sale experience, resulting in higher


the total sales hours per new club membership sold)


referral rates Read Health Club Management online at healthclubmanagement.co.uk/digital


• Double digit improvement in sales productivity and costs (measured as


Living proof Having identified a need to improve sales productivity and sales associate retention levels at the outset of the Lean project in December 2011, Healthtrax systematically implemented the full VSM/Kaizen process across its full network of 18 clubs. By April 2013, the following results had been achieved:


At Healthtrax, the Lean project has led to an improved induction process


• Improved new member induction process, resulting in improved retention


• Improved employee morale due to simplified and more user-friendly sales


• A culture shift, which has developed a management team with a keen critical


eye for lean improvement in all areas At Healthtrax Fitness and Wellness’


most recent board meeting, CEO Ken Navarro summed up the company’s Lean sales journey to date: “At this point, the results we have experienced with Lean have far exceeded our most optimistic expectations. We will continue to use Lean business principles to help improve productivity in all other areas of our operation.” ●


Doug Werner is a fitness industry veteran with over 30 years’ club operations and equipment sales management experience, for the likes of Town Sports International and Nautilus. He is currently vice president of lean sales management for Healthtrax Fitness and Wellness in the US. Email dwerner@healthtrax.net


September 2013 © Cybertrek 2013


procedures and higher earnings through improved productivity


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