How to manage large retail projects
As retail technology has evolved and new initiatives has grown in popularity during the last decade, both retailers and their customers are eager to explore new ways to shop. The benefits of new retail solutions, combined with increased competition and elevated consumer needs has driven more retailers towards investing in some sort of retail technology solution.
There is a variety of retail technology projects to pursue – and the number of available solutions keeps growing. Some of these projects are fairly small, whereas others require significant investments – both in terms of time and money.
Regardless of project size and scope, designated Project Managers and their skills have shown to be a great tool to realize these ambitions in an efficient way. Due to the many stakeholders within these types of projects that can increase friction, Project Managers make sure to encourage a common understanding and for all parties to collaborate. Moreover, the complexity of tech projects requires a clear structure and roadmap, something that Project Managers usually provide.
Fredrik Lindstedt has been a Project Manager for more than 15 years and has been involved in both in-house and external projects. The projects have been connected both to ERP and retail, each with their own challenges and complexities.
Fredrik Lindstedt has more than 15 years of Project Management experience
Today Fredrik manages several major retail technology projects at Datema Retail, making sure the self-scanning implementations and improvements runs smoothly for large retailers all over Europe. With his vast experience and specific expertise, Fredrik is the connection between the customer, the other Project Managers and Datema Retail’s internal resources.
So what are some of the common pitfalls when it comes to these types of projects? Moreover, what can be done to ensure a smooth and efficient project, from start to finish? Gain some valuable insights one of our most experienced Project Managers!
What does as self-scanning project normally look like?
The structure of a project can depend on a variety of things, such as the self-scanning setup. There is a difference whether the self-scanning will be done using external hardware, or with the shoppers’ own smartphones. With a dedicated self-scanning device, additional stakeholders are needed in the project. In general, these types of project have 4-6 parties involved, each with their own distinct expertise.
Each stakeholder has their own area of responsibility, often lead by a dedicated Project Manager. In Datema’s case, Fredrik is the Project Manager for the self-scanning software. Collaboration between these stakeholders is essential, and that is also part of the Project Manager’s role. Throughout the process, all Project Managers disclose the progress of their specific area to the project owner.
Regarding project ownership, it is usually the same for all projects. The project owner is the customer, or a person hired by the customer to have ownership. This means that the project owner’s ambitions and goals influence all other stakeholders in the project, including the Project Managers.
The most common mistakes in large retail projects
Experienced Project Managers do often recognize themes or similar patterns in their projects, regardless of setting or scope. This can also be true for the mistakes that are being made. “The mistakes are similar, regardless of what type of project one manages – but the consequences differ”, says Fredrik.
Mistakes can be made on several levels, and for various reasons. Fredrik recognizes that in some international projects the cultural differences between stakeholders can be a challenge. Due to the different corporate structures, politics and ways of communicating, there needs to be a general understanding of how to communicate and what expectations to have. Moreover, different company cultures can affect the ways of working, even if all stakeholders share the same nationality.
One of the most serious mistakes for self-scanning projects is that not enough time is spent on the initial steps, such as planning, setting expectations, and establishing responsibilities. Fredrik further explains:
“Maybe it´s not a common mistake, but it sure happens, and when it does it could jeopardize the entire project. And that is to underestimate the importance of the project initiation, and instead “jump right into to action”. The purpose of the project initiation is to define the project and to clarify high-level scope and objectives.”
By not having these things clearly communicated and agreed, the project is put at risk. That could mean delays, cost overrun, scope creep or in worst case project failure.
“The mistakes are similar, regardless of what type of project one manages – but the consequences differ”, says Fredrik.
How to avoid project management mistakes?
Making mistakes in projects with this many parties involved can cost the customer a great amount of both time and money. Moreover it creates frustration among team members, project managers and other stakeholders.
When discussing the possibility to avoid any major mistakes within project management, one previously named topic does re-occur: There needs to be clarity regarding the demands and expectations.
This is true both for the overall main goal of the project, but between all stakeholders and the project owner as well. As Fredrik puts it: “If we don’t agree about what needs to be done – how will the project succeed?”. This also connects to the issue of expectations versus reality, and to ensure that all expectations are being written down and clearly understood by the project participants. Fredrik highlights that by having all expectations written down, each part can be explained in order to ensure clarity, and the different stages can be discussed if needed.
This links back to the project initiation stage mentioned earlier. We need to review and understand the needs and requirements and agree on the project expectations. What are “need to have” and what are “nice to have”. What are the functional and non-functional requirements of the solution? Why is this project initiated and what are the pains we´re supposed to solve? What roles and responsibilities do we and the other parties have and how do we organize the project?
“It can initially be time-consuming to set up the framework, but the purpose is not to waste time, it is to avoid correcting mistakes that has been discovered in hindsight. We want the project to be delivered with high quality.”
For Fredrik, also experience has played a large part in avoiding mistakes. By having completed many projects over the year, the knowledge base of learnings and know-how has grown. Also, by learning from others success and failures one may gain additional information that can prove to be helpful in upcoming projects too.
What can a Project Owner do, in order to provide clarity and reduce friction?
As Project Manager(s) are about to begin a new project, there are some things that the Project Owner could do in order to make the project easier. By putting in some effort at the project start, or even beforehand, Fredrik recognizes that some common issues could be prevented.
Here are some of the things project owners could to, to lower friction in a project.
Secure funding and resources
Securing funding and resources is a crucial step when initiating a new project. By making sure the project has funding and resources assigned, the project owner will make sure that there are no sudden restraints or pauses of the project. Then the Project Managers will have the tools and means necessary to pursue the project as planned.
Involve relevant stakeholders early
By involving relevant stakeholders early in the project, each stakeholder will have knowledge of the project goals, the process as well as how this project will be managed. Moreover, they can more clearly identify the benefits of the project itself, as well as gain a deeper understanding of the required efforts.
Of course, also stakeholders that would be negatively affected by the project outcome should be informed – not only for ethical reasons. The negative attitude towards the project could be changed, or at least reduced. Moreover, they often bring important input to the project that other, more positive stakeholders tends to forget (or ignore).
As retail technology projects such as self-scanning often affects several departments, from IT to Marketing and HR, the project owners should map out all relevant stakeholders, and reach out to them.
Failing to involve people, stakeholders might view the project with suspicion, or fail to see how the specific project will be beneficial for the company, even those who would actually benefit from the project. This negative attitude towards can cause projects to be delayed, questioned or in worst case cancelled.
After involving stakeholders, there is a great chance that these become advocated for the project, which can further benefit both the Project Manager and the project itself.
Find project advocates
Advocates are important, one can view them as promoters that could defend and support the project when needed. Thereby the project owner should find and create advocates even before the project has been initiated, to ensure a smooth start.
Fredrik illustrates this point with a real-life example, where he managed a project where one of the key stakeholders clearly was against the project itself. This key person was actively questioning the project’s validity, and was quick to point out limitations and shortcomings during the process. It turned out this person feared for his employment and thought that his role would vanish or diminish if the project turned out successful.
When it turned out that the project instead would be beneficial for this key stakeholder as well, his attitude immediately changed and he became a fierce advocate for the project. So he should have been involved – and informed- from the beginning.
What does this mean in a retail technology context?
As previously mentioned, these types of projects are usually complex. They tend to involve many stakeholders, both internal and external, and also requires a variety of technological competences. By making sure that the previous points have been dealt with, project owners give the Project Managers better conditions and a higher chance to succeed.
For a self-scanning implementation, the points could be applied as followed:
Project approval – ensure that all relevant decision-makers are aware of the scope of the project, the time plan as well as the necessary resources (both internal and external). Provide information that will help them gain a realistic view of the project as a whole, and why self-scanning would be beneficial for the company.
Involving stakeholders – inform everyone that will be direct or indirectly affected by the project. This includes managers at the stores, HR personnel needing to ensure that self-scanning training is available, as well as marketing departments for preparing campaigns and other communication materials.
Finding project advocates – create and provide individuals with information about the project benefits, and discuss and explain how the self-scanning implementation can be beneficial for them. For store owners, the benefits could include more time for staff to focus on more customer-intense tasks rather than working in a manned checkout.
Retail technology products does bring complexity, but the potential benefits such as those from self-scanning makes it worth the trouble. By having clearly articulated goals, roles and structures, the project has a higher chance of succeeding – without any sudden surprises.
The Project Manager plays a great role in making sure their responsibilities are fulfilled, while also making the best use of the resources available.
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