THEY WANT TO WORK

Where
They
Want
To
Work
The
Omni-
Boss
Today’s executive requires
a more diverse skill set.
By DEBRA BORCHARDT
Photograph by Carly Erickson/BFA.com/REX/Shutterstock
T
he omnichannel boss may be
the most in-demand job in retail
today. It’s a position that stretches
from software to logistics, e-commerce
and fulfillment to marketing
and social media.
“Omnichannel retailing has become
a popular buzz phrase for
chief executive officers as they
articulate their strategies to evolve retail models in the digital
age,” wrote Morningstar in a recent report.
The problem is that it’s almost impossible for one person
to be able to master the divergent set of skills needed and,
as a result, filling such a position in retail is a challenge for
executive recruiters. First, there aren’t that many people in
retail with a proven track record to pull from since the job
hasn’t existed for that long. Second, the retailers don’t know
exactly what they want, which makes the search even more
difficult to fill.
Anthony Christodoulou, president of executive search
firm Janou Pakter LLC, said he may fill the job with one type
of candidate, only to have the client come back two years
later and ask for someone with a completely different set of
skills. Since there isn’t one specific description for the job,
there isn’t a repeatable road map for executive recruiters
to follow.
“If you’re the retailer and the stores are doing well and you
want to get into the [e-commerce] side, they will have us find
somebody that can build it for them on a project basis versus
employ them permanently,” Christodoulou said. When the
retailer decides it no longer wants to pay the employment
agency and decides to bring the job in-house, they want to
find a permanent employee for that role and build a team
around them. The retail companies, in an effort to solve the
digital dilemma, keep pivoting when trying to fill the job.
He noted the searches are also exceedingly niche. “It all
comes down to the skill. The skill doesn’t always transfer
into their model and that’s the bit that’s difficult.”
He said some retailers want to be a “techie company” and
they want someone from Apple, Google or Facebook, but
they can’t attract them. He cited instances where a tech person
switches to retail for a specific project, but then retailers
being retailers, they change their minds, which frustrates
the tech person. “They want to be this techie company, but
really you’re a retailer,” Christodoulou said.
“The common theme I’m finding now is that people are
looking at digital more for image like public relations and
marketing — more than to make any revenue out of it,” he
said. This is a big switch, because while much of the research
shows that online shopping is growing, actually making
money at it is difficult. “It’s hard for the executives to
decide who to bring in,” Christodoulou acknowledged. Do
they bring in a logistics whiz to make online shopping more
economical, or do they hire a brand expert who can create
a powerful story narrative?
For example, Target brought in Brian Cornell from PepsiCo
specifically for his extensive experience outside of the
traditional mass merchant. Cornell had global expertise
from PepsiCo Americas Foods, online skills from his time
overseeing safeway.com and logistics experience from the
fulfillment program he initiated at Sam’s Club. The search
firm Korn Ferry found Cornell for Target.
The data indicate the growing importance of finding executives
with that kind of broad skill set. According to Aberdeen
Group, companies with extremely strong omnichannel
customer engagement see a 9.5 percent year-over-year
increase in annual revenue compared to 3.4 percent for
weak omnichannel companies. Plus, the companies with
this strong engagement retain their customers 89 percent of
the time versus the weaker retailers, which only retain them
33 percent of the time.
It’s the omnichannel boss’ responsibility to find the e-commerce
sweet spot for a retailer: Balancing brand engagement
with the cost of digital investment. EKN Research revealed
that retailers spend a whopping 18 cents of every dollar on
omnichannel fulfillment, so it’s critical for the omni-boss to
get that right.
“Everybody is trying to crack the code,” said Farla Efros,
president of HRC Advisory. “Meaning, how do we make
money. That’s the reality.”
Logistics are a key aspect of the online shopping experience
and a large part of the omni-boss job. Some create big
fulfillment centers, while others opt to fill orders from the
stores. The omni-boss has to choose which method is best
for that particular company. The boss also has to decide
how much to charge customers for shipping. Free shipping
could be an expense decision or a marketing decision.
The omni-boss doesn’t have to be an IT wizard but needs
to be aware of all the latest available technology and where
best to spend the company’s IT dollars. It’s critical that the
omni-boss be able to separate necessary tech updates from
novelty tech upgrades. Are store beacons really necessary,
or is the company better off upgrading inventory tracking
technology?
With such a divergent skill set, it’s no wonder that these
jobs candidates can command hefty salaries. “You pay a lot
for these omnichannel people. They get paid a lot more than
the [chief information officer] jobs,” Efros said. “They’re
hard to find. They’re really hard to find.”
Efros noted that many companies are looking for people
with entrepreneurial skills to fill the role. An entrepreneur
is a person who can understand and coordinate all these
needs in a creative way.
“There are no one-size-fits-all candidates,” said Les Berglass,
founder of Berglass + Associates. “We look for all our
job candidates today — regardless of position — to respect mobile
without having to understand the nuts and bolts of it.”
Ultimately, the best person for the job is the person who
ensures that the brand presence remains consistent.
Brenda Malloy of Herbert Mines Associates said the ability
to connect the dots across the organization is also a desirable
attribute. “The digital leaders need to be fully rounded
to be really successful both for their peers and for the company
as a whole,” she said.
Malloy noted that the best omnichannel candidates are
ones with proven track records. “Bringing experience from
successful companies and winning strategies is key. Past behavior
is the best predictor of future performance. Rarely
do people go from last to first,” Malloy said.
While some believe it takes a Millennial to navigate today’s
new online marketplace, Malloy disagrees. “Youth is good,
but nothing replaces wisdom. Relevant experience is valued
more than youth.”
Trying to find the right person for a constantly evolving
role has led to a lot of retail and technology crossovers. Most
notably, Apple hired Burberry’s Angela Ahrendts to reshape
the retail stores. Before that, Apple’s retail senior vice president
Ron Johnson left to go work for J.C. Penney Co. Inc. — a
move that proved disastrous for Penney’s and for Johnson.
Penney’s then turned to a tried-and-true retailer for its next
ceo, Marvin Ellison, although he had key operations experience
at Home Depot. ■
Target brought in Brian
Cornell from PepsiCo
specifically for his extensive
experience outside of the
traditional mass merchant.
Cornell had global expertise
from PepsiCo Americas
Foods, online skills from
his time overseeing
safeway.com and logistics
experience from the
fulfillment program he
initiated at Sam’s Club.
40 APRIL 2016, No. 1 WWD.COM Illustration by SAM ISLAND
WWD.COM APRIL 2016, No. 1 41