8/7/2019 JCPenney_CP

http://slidepdf.com/reader/full/jcpenneycp 1/2

Case Study: JCPenney 

One retailer who has done exactly this is

JCPenney, Inc. In 1996, JCPenney closedits management training acility in Plano,exas, and shited to a distance learningmodel to more eciently communicateand collaborate with over 149,000 storeassociates nationwide. Te decision came asa result o a 1993 internal company study looking into JCPenney’s recruiting andtraining practices. One o the main ndingsindicated that training and developmentopportunities were not consistently availablethroughout the organization.

Te rst step-and one recommended toanyone attempting change within a largeorganization-was taken by the then managero JCPenney’s corporate university, DeborahMasten, who secured management supportrom the very beginning in order to buildthe distance learning program.

“You can’t be all things to all people,”say Deborah Masten, JCPenney’s vicepresident and director o human resourcescommunication and development. “In

order to make a successul change, don’t beoverwhelmed by the non-strategic aspect o things. Build a business case and sell it tosenior management.”

And that is exactly what she did. In 1996,JCPenney chose Oneouch’s broadbandinteractive distance learning platorm to

JCPenn

augment their existing business television

network. oday, training at JCPenney consists o a blended learning model andis entirely paperless. Te Oneouch IDLsolution is a key actor in the continuedsuccess o the retailer’s corporate university.Broadcasting rom a studio at theirheadquarters in Plano, high-potential eldmanagers team teach to store associateslocated nationwide. Associates see thepresenters’ video live on a classroom V,and interact by using the Oneouchinteractive touchpad-a simple, personal

interace that acilitates two-way audioand data exchange between participatingassociates and the team teachers back atheadquarters. Presenters can issue questionsand quizzes, providing an important meanso measurement and a way to establishaccountability among associates. Allparticipant data is gathered in a centraldatabase or urther analysis, includingattendance records, number o times astudent calls in, and question and quizperormance.

JCPenney has ound their Oneouch-powered network to be efective or morethan just training. Weekly virtual meetingsbetween stores has given rise to what couldmore accurately be described as best practicesharing.

Customer Prole 

he retail industry is a competitive and rapidly changing marketplace

aced with a variety o challenges-aligning worldwide retail stores, high

employee turnover and requent product and promotional announcements.

o maintain customer loyalty, retailers must constantly strive to increase

productivity, protability, and gain a competitive advantage.

“Tis approach is ar more 

ecient and efective than

any traditional alternative;

nothing is more powerul in

training efectiveness or cost 

efectiveness.”Deborah Masten

Vice President

JCPenney 

8/7/2019 JCPenney_CP

http://slidepdf.com/reader/full/jcpenneycp 2/2

©2007 One ouch Systems, Inc., San Jose, CA. All rights reserved. One ouch Systems and One ouch are trademarks o One ouch Systems, Inc.

40 Airport Parkway

San Jose, CA 95110

408-436-4600

www.onetouch.com

How efective is it? ake just one examplerom a broadcast among store managers andthe director o merchandising. An Easternstore manager called into the director o 

merchandising and explained how they were receiving multiple customer requestsor white gold jewelry. As a result o thisexchange, the director was able to send thedesired jewelry to that specic store. Tisanecdote reveals two very important things.First, by hearing the demand or white goldjewelry, the director was quickly able to takeadvantage o the revenue opportunity by sending the store the correct merchandise.Second, and probably the most valuable,JCPenney was quickly able to respond tothe market-ultimately improving customersatisaction and leading to customer loyalty.

“We view the Oneouch communicationsolution as a competitive advantage,” saysMasten. “In travel costs alone, the company has saved $12 million over six years.”

Measure of Success

JCPenney knows the importance o aligningthe corporate university with overallbusiness strategy. By completing level ourevaluations, Masten’s department is able to

cost justiy classes to the bottom line. In oneinstance, a single class saved the company $58,000 alone. In another broadcastto 1,000 associates, the team teachersdiscovered that 50 stores were improperly conducting a certain procedure. Once thecorrect procedure was communicated, thestores reported saving $27,000. Te retailerattributes these results to their Oneouch-powered network.

“One ouch is a mission critical part o our business. 149,000 associates can’t betrained in a consistent manner with any other approach. Tis approach is ar more

ecient and efective than any traditionalalternative, we can see which person isinternalizing and who is not; nothing ismore powerul in training efectiveness orcost efectiveness,” concluded Masten.