Macy’s L&D Programs For Enhanced Customer Experience And Organizational Success

Organizational Context

The value of the human resource in organizational success must never be underestimated by business leaders. The preceding sentiment is quite true especially now that the modern consumer prioritizes experience in his or her interaction with providers (services and/or goods). Macy’s Inc. is among the successful global firms that have managed to capitalize on their workforce to facilitate enhanced value production (Anitsal, Anitsal, & Girard 2013).

The brand has remained iconic due to its management’s understanding of the need for high quality service delivery in the consumer-centric luxury retail business. Unlike most retailers, high-end departmental stores such as Macy’s are visited by clients who seek peculiar shopping experiences. In order to deliver such a value, the brand applies the ‘Everyday Magic’ strategy to engage its human resource in a sustainable learning and development process: it focuses on improving employee experience. Such an approach has been marked by the implementation of various programs including Military Executive Development, Daily Boot Camp, and Employee Transition (Taylor 2013).

Daily Boot Camp is a progressive initiative by the company’s leadership, and it aims at promoting the employees’ knowledge and skills through training. Note that the scope of the training is reliant on the employees’ potential skills as well as the value of their roles in the organization. In this case, Macy’s management explores the organizational functions to ensure that the employees working in positions/departments that might become outdated with time are equipped with sustainable skills (Thind 2017).

This program is somehow similar to the Employee Transition Program. The only difference is the organization’s end-game with respect to the latter: it focuses on preparing employees for new employment opportunities in case of layoffs or resignation. Such a progressive L&D approach was useful in 2009 when the company’s economic performance necessitated the dismissal of around 850 workers (Best 2017). Macy’s ensured that they were engaged in a learning process that expanded their knowledge and skills with regards to job-seeking and entrepreneurship. Lastly, the Military Executive Program aims at offering leadership positions to veterans in order to diversify the company’s management approaches: emphasis on the army’s unique organizational culture and administration.

The described programs have proven useful in augmenting Macy’s market position as a high-end shopping option. For one to gain a clear perspective of the inseparable nature of L&D in the company’s human resource management, one should reflect on the recent disruptive forces evidenced in the retail sectors. Digital brands such as eBay, Amazon, and Alibaba have transformed how consumers perceived shopping (Tokosh 2018).

These industry players allow customers to shop through smartphone applications. Such a trend indicates that in-store shopping remains relevant for experience-seeking shoppers. For a company that offers luxury brands such as Louis Vuitton, Gucci, Michael Kors, Burberry, and Bold, the industrial transformations present an opportunity to focus on the customer experience. Macy’s leadership believes that immense investment in its employees enhances their ability to meet the ever-changing market needs seamlessly.

Organizational Context

An organization’s mission, vision, strategy, and values play a pivotal role in determining its success. Such is often the case as they provide a clear sense of direction to every member of the human resource. In Macy’s case, the retail giant envisions a dynamic retail brand that focuses on the customer (Diehl, Van Herpen, & Lamberton 2015). On the other hand, its mission is to capitalize on opportunities before they become obvious so as to align its resources with the core customer needs. Note the emphasis on the brand value obtained by the consumer.

PESTLE Analysis

When placed into perspective, the human resource is an essential tool in the organization’s value proposition especially since customer experience remains a top priority (McLymont 2015). Considering the unique role Macy’s employees play in its positioning as a global leader, one can confidently agree that learning and development is necessary. The current section explores the brand’s micro- and macro-environments from theoretical perspectives.

PESTLE Analysis

Political Factors. It suffices to claim that Macy’s political environment is quite stable. This sentiment is grounded on the fact that the brand’s unique HR management strategies have mitigated common challenges such as lawsuits: consider the company’s approach to the 2009 layoffs. Unfortunately, the organization’s business ties with the controversial United States President Donald Trump jeopardize its market position (Khaled 2012). Recent investigations report that some of Macy’s customers have promised to boycott the brand as long as it continues promoting the Ivanka Trump fashion line despite her father’s racist remarks during the US campaign period. When viewed from this point, it is clear that Macy’s L&D efforts might enhance its market appeal amidst the controversy.

Economic Factors. The emergence of powerful disruptive competitors such as Amazon Inc. and Alibaba have dented the revenues of most if not all departmental store chains. Macy’s recognizes the fact that its only leverage is customer experience since it is what most in-store shoppers seek in the modern retail industry (Moberg & Leasher 2011). Investment in L&D enhances the employees’ ability to deliver high-quality service to meet the emergent market needs.

Social Factors. Recently, the retail sector has recorded a transition in the consumer preferences. Clark & Wojcik (2018) found that modern consumers prefer products that tell stories to materialistic ones. Also, a significant percentage of the modern shoppers have grown a health conscious. Investment in L&D – especially the daily boot camp – allows the employees to understand how market demands transform, as well as how they can be sustained. At this point, the reader is urged to reflect on Macy’s market strategy “follow the trend”. Clearly, the employees must be up-to-date with respect to the social environment.

Technological Factors. As mentioned earlier, the digital revolution has initiated a transformative period in the retail sector. Macy acknowledges this fact; hence, it has invested heavily in the development of a technology-enabled workforce (Naugle, Naugle, & Naugle 2000). It promotes familiarity through various schemes including employee interaction websites and social media interaction with customers among others. Note that all of the aforementioned programs place emphasis on the employees’ technological know-how since the modern and future consumers – millennials and Gen Z respectively – are familiar with the infrastructure.

Legal Factors. As a supplier of high-end products, Macy is expected to comply with a wide range of quality standards as stipulated by various producers. Note that the same is expected from the said producers. L&D is quite instrumental at this point given that Macy’s workforce delivers the products to clients (Schunk 2012). Failure to have in-depth knowledge of the products prevents them from ascertaining of the quality of goods delivered to the company for sale.

Environmental Factors. Macy’s is committed to sustainable development. Such a factor is evidenced in its investment in a broad range of CSR activities including green energy, employee safety, and community charities among others – consider its Green Living, Employee Resources Groups, and Go Red for Women projects. The mentioned examples facilitate sustainable development in terms of energy, HR development, and community development respectively.

Horizontal Integration

Horizontal integration is a process through which a company expands its production capacity through investment in inventories. This implies that focus is placed on the expansion of its product line. As far as Macy’s Inc. is concerned, the acquisition of strong brands such as Bloomingdale places it a notch higher than its competitors (Thomas 2014). Note that this kind of growth is considered horizontal since the purchased company offers similar services.

Structure and Culture

Macy’s organizational structure utilizes the hierarchy model. Like most global firms, it is run by a board of directors, which is supported by executive officials in various departments including operations, legal, marketing, communications, stores, strategy, real estate, and the acquired brands executives. Such a dynamic workforce offers multiple perspectives with respect to the company’s market position. It is in line with the brand’s customer-centric culture: emphasis on the ability to grasp market trends from multiple perspectives. Also note that the broad structure is supported by a team of empowered subordinates who indirectly partake in organizational leadership through suggestions/market reports.

Value Addition

According to Kolb, Boyatzis, and Mainemelis (2001), brand value refers to the factors that make a firm’s products or services unique. Macy’s achieves this by ensuring that the customers experience magic when shopping. While Macy’s value is considerably high in the current retail sector, there is need for augmentation. Such a progressive goal can be achieved through investment in technological strategies such as drone delivery. This move decouples the workforce from boring tasks, thus allowing them to focus on impressing the customers both online and offline.

Consideration of the L&D Budget

By now, it is apparent that Macy’s ‘Everyday Magic’ learning and development stratagem is multifaceted by default. This implies that it seeks to fulfil multiple stakeholder needs. Note that emphasis is placed on the human resource and the consumers. On that note, the progression of L&D programs including the Military Executive Development, Daily Boot Camp, and Employee Transition necessitates colossal investments. Perhaps, almost a half of the company’s resources should be geared towards this end especially as the two types of stakeholders (customers and employees) are responsible for its current market position.

Analysis

The successful implementation of learning and development (L&D) strategies demands in-depth grasp of the learning needs based on the extant or anticipated knowledge and/or skill gaps. Such a goal calls for a comprehensive evaluation of the employee capabilities in the wake of the transformative business environment. As noted, the retail sector is undergoing major shifts following the emergent consumerism trends. Modern consumers (mostly millennials) are interested in technologically advanced, sustainable, healthy, and experiential shopping (Pietrobelli & Rabellotti 2011). Fortunately, a significant number of the company’s workforce comprises of the millennials. Such a factor places Macy’s at an advantage since its employees are highly familiar with the emergent shopping trends.

However, there is need to create new channels for the incoming generation (Gen Z). Inasmuch as a significant number of this populace lacks financial capabilities – note that most of them are currently studying –, they are bound to start joining the workforce in a decade from now.

Most importantly, they are expected to comprise a large number of the future consumers. Such a bold declaration is grounded on the fact that they are more familiar with the digital revolution; hence, they are highly likely to utilize the platforms for income generation compared to their millennial counterparts (Jarvis 2013). At this juncture, the reader is urged to reflect on the recent boom in online freelance employment opportunities. Such a trend shows that the incoming generation will have high disposable incomes, making them vital customers in future. Furthermore, they will expect the digital infrastructure to be integrated in most if not all retail functions.

When viewed from this lens, it becomes apparent that Macy’s has to prepare its human resource for the described future transformations. The current workforce must acquire necessary knowledge and skills regarding the alignment of fundamental business functions with digital solutions such as Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI), Big Data, and the internet at large (Barrientos, Gereffi, & Rossi 2011).

It appears wise to restate that in-store shopping will still remain relevant in future. Such is the case as the digital framework only improves the shopping experience by removing the ‘chore’ aspect of shopping. People still enjoy visiting departmental stores for the experience. It is also important to understand the role of millennials as mentors to the Gen Z. The fact that both generations understand the modern business models places immense responsibilities on the current workforce (Cruz & Boehe 2010). Macy’s has to invest heavily in Research and Development (R&D) to understand how the Gen Z population perceives both work and consumption. Such information will prove effectual when mastered by the current workforce as a means of preparation for future transformations.

On that note, basic Learning and Development concepts must be applied in the advancement of the current workforce’s abilities and skills. The ‘RAM’ framework appears instrumental with that regard: the acronym refers to Relevance, Alignment, and Measurement. Such a model ensures that the L&D process is geared towards overall business improvement (McDonnell, Lamare, Gunnigle, & Lavelle 2010). In other words, the L&D goals must be relevant, aligned (emphasis on fundamental business processes), and measurable.

The Knowledge, Skills, and Attitudes (KSA) theory is also vital in the process. The concept follows the conventional assumption that the learning outcomes can only be improved if the process is cognitive, skill-based, and affective. As far as the first is concerned, R&D will play a pivotal role in increasing Macy’s Inc.’s employees’ grasp of the market dynamics (Kaplinsky & Farooki 2011). In this case, one would recommend the provision of necessary learning materials to the relevant employees as soon as market surveys are complete. On the other hand, skills can be enhanced by ensuring that the workplace routine is transformed to meet the L&D goals.

For instance, Macy’s can offer its employees some free on-job browsing sessions so they can learn more about the internet consumers (young generations). Such an approach will make learning an intrinsic employee role in the company. Lastly, the company should uphold its collaborative leadership – consider Macy’s current HR empowerment programs which aim at promoting employee participation in decision-making. One can confidently agree that the workers’ attitudes will be in favor of the L&D process if their opinions are taken into consideration.

***Note that the company’s integration of emergent Information Communications Technology (ICT) frameworks such as AR, AI, VR, the internet, and Big Data into its basic business functions will demonstrate market preparedness in the highly transformative retail industry.

Apparently, the suggested solution – Macy’s investment in employee learning and development with regards to the integration of digital infrastructure in fundamental organizational functions – demands an effectual learning framework. For now, it suffices to suggest that experiential learning can boost the L&D process (Harrison 2011). Kolb’s four-stage learning cycle is quite illustrious.

The model holds that learning begins and ends at a stage when the learner has concrete experience: this implies that the experience might be sufficient or not (Alexander & Doherty 2010). The experience is then advanced through reflective observation. Here, the learner compares and contrasts his or her knowledge and skills against those of other individuals. Through reflection, a learner generates a unique idea on how to improve his or her practice. This stage is then succeeded by an experimentation phase where new skills and knowledge are applied. Below is a graphical representation of Kolb’s experiential learning cycle:

A similar perspective was applied by Honey and Mumford, in their four-stage learning cycle (Alexander & Doherty 2010). Unlike in Kolb’s framework, the stages represented unique learning preferences including activist, reflector, theorist, and pragmatist. Below is a graphical illustration of Honey and Mumford’s model: note how the stages correspond to Kolb’s experiential learning cycle model.

This model holds that a learner can perceive knowledge and skill acquisition from any phase: then the cycle begins. As far as the proposed L&D solution is concerned, Macy’s Inc.’s workforce should be exposed to the digital world. The company should avail R&D reports on other firms – regardless of the industry – that have utilized AR, AI, VR, Big Data, and Internet platforms to transform their product and/or service delivery.

Note that this progressive effort will demand collaboration across all organizational departments. The employees will then engage in group and individual experiential learning based on the knowledge garnered from the R&D efforts. Note that a broad range of learning techniques can be promoted by the HR department including workshops, mentoring, action plans, coaching, and classroom/formal education. At this point, it appears wise to acknowledge the fact that people often display distinct perspectives and capabilities with respect to learning. Such a realization is vital for Macy’s Inc.’s management considering the diverse nature of its workforce.

There is a broad range of learning and development methods available to Macy’s Inc. with respect to the proposed solution.

Technology-Based Learning

One of these methods includes technology-based learning. Such an approach is highly convenient considering the fact that the proposed solution revolves around the integration of the digital infrastructure in the business functions. It involves the use of basic computer programs, interactive video sessions, interactive multimedia, and web-based instruction (Wilson 2014). This technique boils down to the recommended social networking sessions. The sessions will be vital in strengthening the employees’ grasp of the basic ICT capabilities.

Market simulations can also be utilized by Macy’s to attain the L&D goals. As far as this method is concerned, the company can engage students (millennials and Gen Z) in simulated shopping experiences to offer the employees a sneak peek of the trends to expect from the future consumers. Note that the simulation approach is an on-the-job training that can be applied in many ways. For instance, the organization can build a virtual store through which its employees interact with customers: both the employees and the participating customers might build avatars based on their attributes and interests (Bolden 2016). It is a fun approach that might have a positive impact on the company’s customer relations. In an attempt to understand the virtual reality simulator approach, one should reflect on the highly publicized fantasy football.

Coaching/Mentoring

By default, this approach involves one-on-one instruction from an individual with immense experience. As far as the proposed solution is concerned, Macy’s employees should be provided with mentors from different professional backgrounds, mainly ICT, management, and HR. These individuals will enhance the worker’s understanding of the key business functions while advancing their knowledge on matters pertaining to technology and leadership. Mentorship programs are vital in developing future mentors from the current workforce especially since the team has to be prepared when the Gen Z population joins the workforce. Like the preceding method, this one is an on-the-job training option that improves HR capabilities. It is also cost-effective in the sense that most if not all of the mentors will be sourced from Macy’s organizational departments.

Evaluation

One of the most important aspects of L&D projects is evaluation. Failure to objectively analyze a training strategy prevents an organization from understanding its effectiveness. After all, no firm wants to spend resources on a training process that yields negative returns. For this reason Donald Kirkpatrick’s Four-Level Evaluation, Return on Investment (ROI), and Return on Expectations (ROE) models are quite instrumental.

Kirkpatrick’s Four-Level Assessment

As far as the first is concerned, it measures efficacy based on employee reaction, learning, behavior, and results (Garavan, Carbery, & Rock 2012). Below is a graphical representation of the model: note that the fifth dimension (ROI) is essential inasmuch as it is explored separately.

Reaction. This level revolves around the exploration of the employees’ reaction to the training (Garavan, Carbery, & Rock 2012). Macy’s management can utilize various tools such as questionnaires, interviews, and employee reports to gauge their reaction to the procedures.

Learning. This phase focuses on ensuring that the L&D solution is in line with the organizational goals. For this reason, the management assesses the value anticipated from the knowledge and skills learned by the trainees (Garavan, Carbery, & Rock 2012). The most effective assessment approach in this respect is the Training Needs Analysis (TNA): it requires reflective management.

Behavior. As the name suggests, this level explores the training’s impact on the employees’ behaviors. From an analytical point-of-view, it focuses on individual and group application of the learnt concepts from the L&D programs (Garavan, Carbery, & Rock 2012). This stage is highly ambiguous; thus, it is difficult to measure. Nonetheless, periodic employee performance polling allows the management to gain some insight on the value added by the training from a behavioral standpoint.

Impact/Results. At this juncture, success is measured based on organizational performance. Various elements can be assessed including employee turnover rates, sales rates, productivity, and employee participation (Garavan, Carbery, & Rock 2012). The theorist suggested that enhanced organizational performance indicates successful L&D.

Return on Investment (ROI)

This evaluation model was introduced by one Jack Phillips in the early 1990s. According to him, successful training processes were accompanied by increased profitability. Such a line-of-thought is reasonable since investment in any organizational resource must have profitability as the end-game – unless the organization does not pursue profits (Malik & Blumenfeld 2012). The ROI will be measured by monetizing the profits gained from Macy’s digital integration L&D project then dividing it by the costs. This measurement framework can also be used to estimate the anticipated value of a training program using the following formula (Malik & Blumenfeld 2012):

ROI = {(anticipated profits – anticipated costs) / anticipated costs x 100%}

Return on Expectations (ROE)

Unlike the ROI model, this one is quite straightforward. It involves an assessment of the training with respect to the attainment of the predetermined goals. As one would expect, it involves observing whether the learning process enabled the company to meet its L&D goals (Romijn, Raven, & deVisser 2010). As far as the Macy’s case is concerned, emphasis will be placed on the development of integrated AR, AI, Big Data, and Internet platforms/networks. Other measures such as employee and customer enrollment in the networks can also be observed to determine its success.

Conclusion

Macy’s Inc. is one of the largest retail brands in the international arena. This luxury department store chain has a strong brand reputation following its immense investment in customer-centric strategies, objectives, and procedures. Such an approach has been evidenced in the company’s undivided attention on its workforce. The unanticipated layoffs recorded during the 2009 global financial crisis enhanced the brand’s value in the eyes of the customers as well as the employees. Thanks to its Employee Transition Program, Macy’s ensured that most of the laid-off workers had employment opportunities regardless of the process.

This kind of human resource management is vital to the organization’s market positioning in the wake of experience-seeking consumers. Nonetheless, the digital revolution poses either a threat or an opportunity depending on how Macy’s will manage it. Investment in ICT will enable the brand to meet the needs of the young generations since they comprise the larger section of the employees and consumers. Furthermore, the Gen Z’s entry into the consumer and labor markets should be anticipated by the company. For this reason, the employees should be familiarized with emerging technologies such as AI, VR, Big Data, and the internet to enhance their ability to meet the future needs. After all, such a learning and development strategy will position Macy’s in a favorable competitive state in future.

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