Flooring Industry Management Research

The Flooring ITO recently carried out comprehensive nationwide research into the key issues facing the performance of the New Zealand flooring industry and its requirements for successful businesses. They also investigated how the ITO could assist in strengthening the business management of flooring firms.

Project interviewees collectively identified six core requirements for a successful flooring business:

• A well developed understanding of the industry and the options available to develop a unique competitive brand positioning for the firm.

• A good knowledge of core business management principles as they apply to the flooring industry value chain.

• A clear understanding of product and service costing processes and an unwavering commitment to sustainably profitable operations.

• A consistent commitment to superior customer service as a key contributor to profitability.

• A high level of technical expertise, flooring industry experience, and commitment to consistent product and service innovation.

• Better processes to attract, develop, retain and reward high-performing staff.

The research discovered that current industry performance was deemed to be only adequate overall. Areas needing particular attention were identified as front line sales and service; interpersonal skills; technical trade skills; financial management; and operations management.

There was a consensus that well-designed and competently delivered training could prove beneficial for all types of flooring firms. Such training would ideally be targeted, relevant and practical. Local classroom training delivered in just one day would be preferable, with individual mentoring and coaching if necessary.

The initial research recommended that Flooring ITO develop a business capability enhancement programme for current and prospective owner/operators as the next stage in this project. A further recommendation was that interpersonal communication skills are taught as part of existing flooring industry qualifications and apprenticeship schemes.

The final recommendation from this research is for retail flooring organisations to participate in a pilot programme to identify management weaknesses, led by the Flooring ITO. The outcome would be used to promote the benefits of improving business management capability throughout the flooring industry.

WEBSITE - www.flooringito.org.nz