Management of Contemporary Fashion Industry

Management of Contemporary Fashion Industry Adriana Velazquez

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I S T I T U T O

I T A L I A N O

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D E S I G N

©2020 Stampa – Press Up, IT10922761001 Via Cadu� sul Lavoro, 01036 Zona Industriale Se�evene VT ©Is�tuto Italiano Design Anwa S.r.l. (IID Srl) – Editore Come da revisione dell’ogge�o dello Statuto Sociale effe�uata con A�o Notarile registrato in Perugia in data 2 gennaio 2019 ed iscri�o al Registro delle Imprese di Perugia il 9 gennaio 2019 protocollo n. 25, contenente il nuovo Statuto Societario Sede legale in Perugia (Italia), Via Galeazzo Alessi n. 1, 3/A e 11 – 06122 Dire�ore Responsabile Do�. Ing. Andrea Lenterna, pubblicista iscri�o all’Ordine dei Giornalis� di Perugia dal 30 maggio 2013 (già Dire�ore Responsabile di: “Cerco & Trovo”; “Art & News”) Approvazione del Comitato Scien�fico IID Grafica e Illustrazioni: ©IID Srl Proge�o Grafico: Diana Magri I diri� di traduzione, di memorizzazione ele�ronica, di riproduzione, di ada�amento totale o parziale, con qualsiasi mezzo (compresi i microfilm e le copie fotosta�che), sono riserva� per tu� i Paesi. Le fotocopie per uso personale del le�ore possono essere effe�uate nei limi� del 15% della presente opera rispe�ando in ogni caso le previsioni della legge 22 aprile 1941 n. 633. Le riproduzioni diverse da quelle sopra indicate (per uso non personale- a �tolo esemplifica�vo commerciale, economico, professionale- e/o oltre il limite del 15%) potranno avvenire solo a seguito di specifica autorizzazione rilasciata da IID Srl. L’elaborazione dei tes�, anche se curata con scrupolosa a�enzione, non può comportare specifiche responsabilità per eventuali errori o inesa�ezze.

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Contents I.

Understanding Branding................................................9

II.

Defining the Brand .......................................................11

III.

Posi�oning the Brand ...................................................13

IV.

Expressing the Brand Iden�ty ......................................14

V.

Communica�ng the Brand Internally and Externally....17

VI.

Understanding Brand Performance .............................22

VII.

Understanding Management .......................................26

VIII. Managing Performance ................................................30 IX.

Managing People .........................................................33

X.

Skill for the Business Managing ...................................36

XI.

Final Advice ..................................................................39

XII.

The State of Fashion 2019 ...........................................40

Bibliography .................................................................53

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Introduction Get a framework for branding, and learn how to develop and launch a brand and measure its success. This subject explains how to define and posi�on a brand and communicate the brand effec�vely internally, to employees, and externally, via social media, PR, adver�sing, packaging, and other channels. Then explains how to measure brand performance in categories such as authen�city, relevance, differen�a�on, consistency, presence, and understanding. The subject concludes with solid steps for periodically reviewing the brand and its effec�veness, especially when there are significant changes that could impact the brand.

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What you should know before making this subject?

Before you a�end, you should know that this is a fundamentals course on branding, including an end-to-end process and a set of tools to create a brand. To help you prac�ce these tools, I'll use a case study. We'll focus on wrist watches, specifically one designed for families. You'll learn how to create a new brand in this category. The steps that you'll perform here will be the same you would use in any category. This course is not about graphic design, such as logos and packaging. Nor is it about adver�sing and other marke�ng communica�ons tools, which can be a part of the branding process. Branding strategy is closely linked to marke�ng strategy, so it's essen�al you have a good understanding of marke�ng principles, especially segmenta�on, targe�ng, and posi�oning before doing this course. Now as temp�ng as it may be, developing a new brand isn't always the right thing to do in certain business situa�ons. I'll give you some guidelines on when you should and should not consider branding. If you're learning about branding as part of your job within a company, it's really important that you understand your company's policies on branding. This includes iden�ty standards and the use of trademarks and logos. Be sure you are familiar with these policies before you apply any of the concepts in this course.

Learning Objec�ves Define a brand.

Explain the significance of brands.

Outline the steps of the branding process.

Iden�fy your core values and purpose.

Create brand drivers.

Design your brand architecture.

Iden�fy and understand customers.

Link brand to product and service.

Manage brand equity.

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Design your

Future

I I.

Understanding Branding

Are you a trustworthy person? Who says so? Okay, so you have friends and colleagues that say you're trustworthy, but why do these people say so? I'm willing to bet it is because you told them you were going to do something, and you did, over and over. You made, and kept, your promises. And because of that, you now have a brand reputa�on as someone people can count on.

You may not have realized it, but you've understood the basics of branding all along. Simply put, a brand is a promise. It's a promise you make to consumers when they do business with you. Now that defini�on may surprise you because most people think of a brand as a logo or a product's name. It's neither. The brand logo and the brand name are not the brand itself. Rather, they are the visual cues to trigger that locus of emo�ons that the brand promises you. Let me share with you Four Keys to Building Successful Brands. First, your brand must be authen�c, in that it's truly �ed to who you are as a company, meaning your values and core purpose. If these are not �ghtly linked, your promise is less believable. Your brand must be relevant, meaning that it promises something that is important to consumers, and that they perceive your brand delivering that promise be�er than the compe��on. You must keep your brand promise consistent across every touchpoint you have with your customers. Why do people see you as trustworthy? Because you are consistent. It is the same for brands. If you lack consistency, you won't build true loyalty. And finally, you and your organiza�on must have a total commitment to keeping the brand promise.

Your leadership and all of your employees, the ones who deliver your brand experience to consumers, must live the brand, support it, and con�nue to invest in it. If you are working to create a brand, start by thinking of the brand promise. What experience do you want your customers to have when they encounter your brand? As you think about the brands you currently work with, ask yourself, is the promise you are making the right one? Because once you make a promise, you got to keep it.

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II II.

Defining the Brand

Iden�fying your core values and purpose Let's start building a brand. First, we have to iden�fy the values of the brand. Remember that a brand is a promise, and underneath that promise must be a suppor�ng set of values. They are like a founda�on underneath a home, for example. If I make a promise to you, it is because I believe certain things are important.

Otherwise I wouldn't make the promise. The same is true of brands that we create in marke�ng. Think of brand values as the key behaviors, or virtues of the brand, that need to be expressed consistently day in and day out. Taken together these values form the essence or theme of the brand. They're like a belief system of the brand. Determining the brand values starts by understanding the overall marke�ng strategy of your business. What kind of products and services do you offer? What are the key trends and new opportuni�es in your markets? Who are your customers?

And, who are your compe�tors? Given that, what is your overall value proposi�on in the marketplace? You've got to have a solid marke�ng strategy before you can build a solid branding strategy.

The two are closely linked.

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For this course, I'm going to use a hypothe�cal company that wants to create a brand for one of its new products. Let's assume we're in the watch business. We're coming out with a new line of smartwatches that integrate with other tech products like smartphones. Let's say that our strategy is to create a watch ideally suited for families. But not just families in general, we are targe�ng the parents, specifically. We want a posi�on our watch as the ideal watch for moms and dads. For now, let's call it The ParentWatch.

Remember, that's the name of the brand, not necessarily the name of the product itself. Now, given our marke�ng strategy, we wanna create a brand that delivers this promise of being the ideal watch for parents. We start by iden�fying the key values that this new brand must have for this promise to have any meaning to it. So, I start by lis�ng beliefs that people might have about parents. For example: Parents are special. Being a parent is an important role in the life of many moms and dads. Being a parent is hard work. Parents do everything they can to help their families. By crea�ng this list, I'm looking for one, or a collec�on of some of these to shape and form the main theme of my new brand. I wanna create a sentence that conveys what the brand is all about. Let's try this. "The ParentWatch celebrates parenthood by helping parents be the very best they can be." I like this. It's aspira�onal, it's linked directly to my strategy, and it has a strong emo�onal appeal. We can always revise and fine-tune this later, but for now, let's s�ck with this as the core purpose of The ParentWatch brand. Both why it exists, and what it believes. Take a look at the brands you have now or the brand you wanna create. Ask yourself these ques�ons: What is the belief system underneath those brands? Is it linked to your marke�ng strategy? Is it clear what this brand stands for now, and what it wants to be in the future?

Building a strong founda�on is the crucial first step to bring your brand to life.

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III III.

Posi�oning the Brand

Iden�fying your customers Crea�ng and defining your brand is only the first step of the brand-building process. At this point, the brand is s�ll an empty vessel. Empty because you haven't made or kept any promises to customers. Remember that a brand is a promise kept over and over to a target audience to that point that they believe and trust it. Trust builds loyalty and that is your next step, to iden�fy the specific customers that you want your brand to be relevant to. For that, we use a marke�ng technique known as “segmenta�on”.

Segmenta�on means dividing the market of poten�al customers into similar groupings. There are four way to do it. Demographic segmenta�on focuses on physical characteris�cs of customers, like gender, age, their height and weight, even hair color. It's a very useful way to segment, especially if your brand's promise delivers on something related to a customer characteris�c. If you're marke�ng a shampoo for redheads, for example, then you'd want to group your customers by hair color.

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VI IV.

Expressing the Brand Iden�ty

Developing the brand's name At this point in the brand-building process you've defined the brand in terms of its values, drivers, and persona. You've posi�oned the brand in the market and linked it to your marke�ng strategy. Now you're ready to move into the next phase which is how you express the brand. To do that, you create a name, a visual look and feel for the brand, and you create a total customer experience for the target audience when they encounter the brand. The name you select for your brand should do the following ac�ons: reflect the values and purpose of the brand.

Create an associa�on with the brand's persona. Be easy to say. Be unique and memorable. Now, before coming up with names you need to consider what it is that you're branding. A company? A product or a service? A feature within that product or service? Or perhaps a technology. How do all your brands fit together? In other words, what is your brand architecture. Let's do an example with our case study. For this example, I need to create a hypothe�cal company that I'll call the California Watch Company.

It makes a variety of watches in these categories: Luxury high-end watches, sport watches for running, biking and so on, smartwatches for technology lovers, and family-lifestyle watches.

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Closely related to demographic segmenta�on is geographic. Use this approach when you want to group people by where they live or where they work. It can also include things like where they go for certain ac�vi�es or where they just hang out. If your brand promise is related to that loca�on, this way of grouping customers makes the most sense. Next is behavioral segmenta�on. Here we focus on things that poten�al customers do or how they behave.

It includes things like purchase behavior, lifestyles and things like how customers use a product. Once again, it's the right way to segment customers if your brand delivers something of value related to this behavior. For example, people who want to drive fast are going to appreciate brands that promise speed. Finally, this is the a�tudinal segmenta�on. This is what goes on in the customer's head about the benefits they seek. Grouping customers by their needs or benefits they're looking for is extremely powerful because it gets right to the core of your brand's promise. For example, if you are building a new brand for an automobile, you may want to group customers around benefits such as fuel economy, luxury, eco-friendly or status.

Selec�ng the right segmenta�on approach is cri�cal because it helps you with the next two steps of the brand-building process: express and communicate.

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My brand architecture is House of Brands, so these four categories of watches are branded independently of each other, and not connected with the main company name. Let's focus on our new line of family-lifestyle watches beginning with our first entry into the market, the “ParentWatch”. Helping moms and dads be the very best they can be. My product is a smartwatch that connects with the customer's smartphone, so it can do a lot of things. My strategy is to offer one model of watch but in different styles and colors. Customers can load different func�ons into the watch depending on the ages of their children.

Apps for babies, toddlers, and so on. Pre�y cool watch. Do you remember the brand “Persona”? One of the traits was "Intelligent". That seems to fit. So, given the �ght connec�on between my brand and the product that delivers on the promise, I'd be smart to name my product the same as my brand in this case. That makes the most sense for my target audience. Once they understand my brand's promise, they'll associate that promise with the watch itself if I name it the same. Otherwise they might get confused. The name ParentWatch is connected to the values and purpose, is unique and easy to say, and it seems to fit my brand's personality. The name strikes me as strong, reliable, but at the same �me fun. I like it. There are �mes, though, when it makes sense to come up with a name that is completely new with no literal meaning. The name “Sony” is a completely made up name. The name “Apple” also has no connec�ons with the companies’ products and services. In that case, you have to select the name, then communicate the name and its associated values and purpose, so that people start to make the connec�on. It's usually harder and more expensive to do, but it can yield a powerful brand name that s�cks in the minds of the consumers: that is an effec�ve way to create and keep customers.

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V V.

Communica�ng the Brand Internally and Externally

Iden�fying the internal channels Branding is all about making and keeping a promise. As a brand builder you're the one who makes the promise, but who keeps it? Is it the product, service, well if so then who is it that stands behind your products and services? It is your employees and partners, like distributors, who keep the promise. Brand delivery boils down to people, and if they don't understand the brand they are likely to struggle trying to keep that promise. Employees have to believe in the brand, and live it every �me they come in contact with a customer. Let me share with you some ways to effec�vely communicate your brand internally. There are two parts to this, first you have to train your team, and then you need to consistently reinforce it. Otherwise, people stop believing that the brand is important. When you develop training programs about the brand you should consider developing different programs for different types of employees. Front line employees for example, deal with customers every day, the training program for them will be much different than for people back at headquarters, including your senior execu�ves. Ideally, every employee is trained, new ones and especially old ones. Exis�ng employees might have to change their mindset a lot to embrace and believe in the brand.

Take an airline, next �me you fly watch the airline's employees, listen to what they say, imagine how training on the brand would be different for a pilots, flight a�endants, baggage handlers, as well as reserva�on agents who sell �ckets.

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Every job and every contact with customers is different, so the training should match that. What do you train? Employees need to know the brand promise, how it links to the company's values, the drivers-customers will experience when they encounter the brand, the brand iden�ty including look and feel, the name, and of course the persona. Most importantly, they need to know how they should think, feel and act. What words come out of their mouths?

What ac�ons do they take to deliver the promise? You have to help them make that bridge from the brand promise to their ac�ons, or they won't be able to truly live the brand. Training is important, but it's not enough, you must reinforce it to keep the brand closely �ed to the culture of the company.

First of all, make sure the brand iden�ty is visible throughout the company.

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Later I'll talk about how to create branded spaces like your company's front lobby as a way to reinforce the brand. Every �me the employee walks through it, they're reminded of the brand. Most companies appoint a brand champion, and a team of brand ambassadors. These are the influen�al company employees who represent what the brand stands for. They can help others understand how their words and deeds link to the brand and its drivers. Speaking of employees, many companies focus on hiring the right people from the very start. Given the characteris�cs of the brand, what characteris�cs of poten�al employees would best align with the brand? Your human resources partner may be able to help you with that. Perhaps the best way to reinforce the brand internally is to do a great job delivering on the promise externally. When employees see that the company consistently lives up to its promises even in tough �mes, it strengthens their resolve and commitment to the brand. Take a look at how your company communicates internally to its employees. Good brand builders look for these everyday opportuni�es to reinforce the brand.

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Iden�fying the external channels To make a promise, you have to communicate it. The key is to select those communica�on channels that are most consistent with the essence of the brand, its authen�c persona. A simple framework for this is answering the ques�ons: who, what, why, where and how. First, you have to decide on why you want to communicate. Are you telling the market your overall strategic brand posi�oning, the core brand promise? Or are you building tac�cal awareness around some new feature or benefit of the product? If this happens, this type of campaign would link directly to your tac�cal marke�ng posi�oning. During the posi�oning step of the brand-building process, we answer the next ques�on: who? That of course is your target audience. You iden�fy the specific customers that you want your brand message to be relevant to. You group your customers using one of four Segmenta�on Approaches: Demographic, Geographic, Behavioral or A�tudinal. The one you use depends on what you're about to communicate. If it's a new feature, you may want to use behavioral segmenta�on. If it's about an emo�onal benefit of your brand, a�tudinal is likely the best choice. Narrowing your target audience makes your communica�ons campaign more efficient. Next is what you are communica�ng, and for that you need to refer to your long list of brand drivers.

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The brand drivers give ideas about the specific message you want to include in the communica�ons. Pick the brand driver that is best suited for what you're announcing to the market and the target audience you've selected.

Using brand drivers this way in all your communica�ons reinforces the brand promise and it builds brand equity. Where you communicate depends on several factors. Remember the customer experience touchpoints and the steps of the buying process. Select which step is most relevant to the brand driver and what you're announcing to the market. You may want to reach the target audience in their homes, places of work, during leisure �me, or perhaps online. The en�re customer experience gives you many op�ons. And finally, is how you communicate. The media channel you select, depends on the target audience, how many of them you want to reach, the complexity of the message you're sending, and how frequently they need to hear the message. Marketers have a wide choice of tradi�onal media, including television, radio, print adver�sing, outdoor billboards, and digital media, which includes social media, websites, and mobile channels. Each type of media has advantages and disadvantages. TV commercials, for example, can reach millions of people, but it's expensive. Billboards, on the other hand, are not that expensive, but they're limited in what they can achieve. It would be hard to explain how to use a complicated product in a billboard. Whichever channel you use, be sure to refer to your brand book to make sure all the design elements and tone of the communica�on are on brand.

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VI. Understanding Brand Performance

To keep your brands healthy, you need to measure their performance on several factors. First, what is the basic awareness of the brand? You need to conduct market research to measure the percentage of people that recognize the brand when shown the logo or hear the name of the brand. Basic awareness is especially important within your target audience, so be sure to direct your marke�ng research efforts to those specific customers. A�er a basic awareness, you also want to measure how well the target audience understands the brand. Can they tell you what the brand stands for? Do they understand its dis�nc�ve quali�es and characteris�cs? What do they associate the brand with, and how closely does it match with your core promise and brand drivers? You may have very broad awareness of the brand, but if customers aren't understanding it the right way, then you need to go back and either sharpen the drivers or communicate your brand more effec�vely. Finally, you want to measure how well the brand is crea�ng customer loyalty. And for this, you measure customer reten�on rates, or repeat purchases. Or you might measure how likely they are to recommend the brand to others.

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If you find yourself slipping in customer loyalty, it could be a sign of several things. First, the brand may be losing its relevance. It might not be delivering benefits that are important anymore to the customer. Or the brand lacks differen�a�on, the degree to which customers perceive the brand to have a differen�a�ng posi�oning dis�nc�ve from the compe��on. Or finally, it could be a problem with consistency, in terms of how well the brand delivers across all the touchpoints. If you're inconsistent in keeping the promise, people lose trust. Now, these are all the external factors that you measure out in the marketplace. You should also measure a few key internal indicators. For example, measure the clarity that employees have about what the brand stands for, and its values and posi�oning. How well do your employees understand the target audience, customer insights, and brand drivers? Your employees are the ones who keep the promise, so they have to have a clear understanding of it. Be sure to measure the commitment your company has to the brand in terms of how much support it gets. Is it ge�ng its share of the budgets and investments needed to keep it strong? Are key individuals devo�ng enough �me to it versus other brands or programs? Finally, try to assess how well protected the brand is. Are other companies infringing on your trademarks or designs? Are others taking unfair advantage of your brand by viola�ng your patents or proprietary methods and materials? Hey, you've invested a lot to create and manage the brand, so it's essen�al that you keep others from dilu�ng it. Measurement is important. If you measure these factors daily, you'll be able to spot trends and head off any problems with your brand before they happen.

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The branding industry is a huge and exci�ng one, with many types of firms and many types of roles. Branding professionals are highly sought-a�er because of their ability to create and manage these important assets. I am going to share with you some guidelines on how to con�nue developing your skills and prac�ce your cra�. First, you need to decide where you want to focus. Careers in branding fall into four broad areas, strategy, brand management design and communica�ons. But within these are many different types of jobs and special�es. In communica�ons, for example, there are jobs in digital branding, including social media and mobile brand building, or you could concentrate on more tradi�onal media in adver�sing. You should also decide on the types of industries that interest you most. Do you want to work within the corporate side, or the agency side? Do you want to specialize on consumer brands, or business-to-business brands? You have many choices, once you narrow your focus, you'll need to create a development plan. When I give career advice, I remind people to never let a year go by without developing some part of your professional skill set. Here are some �ps. First, study the classic, as well as the new academic research about branding. Always think of yourself as a lifelong learner. Read about what other companies are doing. Stay on top of new technology, watch for new trends. Branding is all around you, so take advantage of it.

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When you see a new product in a store, or you see a commercial on TV, try to figure out the branding aspect of it, and the strategy that the company is trying to use. If you consider yourself a branding professional, then I advise you to join the community of prac�ce. Get out there and engage in organiza�ons like the American Branding Associa�on. A�end one of the many branding conferences held each year. Join branding-related groups on LinkedIn. A�end networking events and get to know other branding professionals. Be sure to prac�ce your cra�. Learning is a process of taking an ac�on, reflec�ng on what happened, learning from it, and then, improving for the next �me. You'll want to learn at a rate faster than the rate of change.

That means you need to experiment, prac�ce new techniques, while perfec�ng the old ones. And finally, keep a strong ethical base when building brands. Hey, brands are powerful, and influen�al. The products and services that are linked to your brands should be safe, and effec�ve. The actual quality of the products should match the perceived quality as represented by the brand. Always communicate honestly, and create brand drivers that are authen�c and credible. Great brand builders are as trust worthy as the brands they build. I encourage you to always do the right thing, and strive for being one of them. Congratula�ons on comple�ng this part of the lesson. I'm excited to see what you do with the knowledge from it, and seeing examples of your great brands in the market place.

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VII VII.

Understanding Management

Managers play an essen�al role in every organiza�on, but it is good managers who drive any organiza�on to success. Managers’ duty is to supervise numerous teams, from as small as one employee to as large as a hundred, with layers of managers between me and the front-line staff.

In this part of this course you will be given specific �ps and strategies for increasing your competency in a range of key management skills.

We will look at how you can design a performance management process that guides your interac�ons with employees year-round.

This includes hiring, onboarding, goal se�ng and coaching. We'll also look at how you can maximize the poten�al of those you lead through building trust and engaging your employees, you'll be able to guide their ongoing growth and development. We will even delve into common issues like resolving conflict, managing mul�ple genera�ons and avoiding micromanagement. And, finally, we will explore how you can help your organiza�on achieve its goals through key business skills, such as �me-management and fair HR prac�ces in Fashion Industry.

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What is management?

At the heart of any successful organiza�on, you'll find good managers who are making important decisions every day. Managers make sure that projects are completed, that work is of the highest possible quality, that employees are mo�vated and engaged, and that policies and procedures are followed. In fact, managers do so many things that management is more a series of key skill sets rather than one specific role. Good management is the usage of key skills and prac�ces correctly applied at the right �me to help the organiza�on reach its highest poten�al. The good news is that management skills can be learned and improved.

Throughout this subject, we'll explore specific strategies for honing yourmanagement skills. While there's a range of key management skills and prac�ces, they fall into mainly three areas: Managing performance, managing people, and managing the business. Within each of these areas are specific competencies. Throughout the course, we'll delve into each of the competencies and I'll cover strategies you can use to improve your effec�veness as a manager. It's important to understand that management has come a long way since its ini�al roots.

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Management was conceived during the Industrial Revolu�on when factories necessitated organizing the work of large groups of people.

Early management theories focused on controlling workers. There was an assump�on that people inherently resisted work and needed to be prodded or even forced to do a good job. Management occurred by using power over workers through structures like hierarchy, bureaucracy and punishments to create produc�vity. But we've come a long way since the 1800's and over �me, management has evolved. The efforts of the labor movement and key legal decisions certainly have done a lot to humanize the workplace, making it safer for people, both physically and emo�onally. And our economies have changed. The age of informa�on and technology has radically transformed what work is and how it's accomplished. And globaliza�on has redefined where we access our customers, suppliers and even employees. Many organiza�ons also discovered that how they treated their employees had an impact.

Companies who treated their employees well saw higher produc�vity, reduced turnover, and even less sick �me, which translated to huge cost savings. In addi�on, they discovered that happy employees treat customers be�er and are more crea�ve, leading to product innova�ons.

This has been driven home by the modern genera�ons of workers, especially Genera�on X and Millennials who have come to expect more from their jobs than just a paycheck. They vote with their feet, making the cost of recruitment and reten�on of good workers a high priority, even during economic slumps. Now I don't want to imply that autocra�c management is a thing of the past.

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You can s�ll find it being used, especially by older managers and leaders.

But you'll find that organiza�ons that are thriving are doing so because they've embraced the latest revolu�on in management, which is to focus on mo�va�ng and engaging employees and customers alike. There are several key areas of management that have shi�ed over the years. One area is how decisions get made and implemented. Organiza�ons are moving away from hierarchy based on authority and power and instead tapping into the wisdom and exper�se of people at all levels of the organiza�on. This yields be�er decisions and increases engagement.

Another area is how ac�vi�es are coordinated across the organiza�on.

Instead of using bureaucracy and rigid roles, organiza�ons are moving to more agile and nimble models that allow them to make changes quickly.

In today's fast paced world, managers are giving employees more autonomy and independence. The third area is how employee performance is measured. Rather than focusing on narrow markers of achievement, organiza�ons are focusing more on competencies that support a wide range of successful outcomes. In addi�on, managers are stepping away from the reward and punishment model of mo�va�on and tapping into how people are intrinsically mo�vated. This yields increased produc�vity and engagement. What does this all mean for you? Well, it means that your success can be enhanced by learning and implemen�ng modern management strategies, knowing how to be�er manage performance, people and the business will pay off for you in numerous ways. As you become known as a great manager, you will also reap direct benefits in your career as your tapped for future opportuni�es in leadership.

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VIII VIII.

Managing Performance

I believe that managing performance is at the heart of the manager's role, so We're first going to explore what performance management is. And then I'll share some strategies you can use with your employees. Performance management is the en�re series of prac�ces, policies and procedures that guide and support an employee's successful comple�on of their work.

Ul�mately, you are managing people and comple�ng work that is necessary to your organiza�on's success. All of this is done within the structure of the performance management process you use. Now, I'm not just talking about the so�ware or system you use for comple�ng annual reviews, although that's certainly part of it. This means that effec�ve performance management includes and aligns many different aspects, such as the organiza�on's goals and objec�ves, the organiza�onal values and culture, job descrip�ons, competencies, assessment of employee performance, process for developing and mo�va�ng employees, compensa�on like salary and bonuses, and making employment decisions such as promo�on and termina�on.

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Ideally, all these elements should align to create a cohesive system that's clear to all involved. And it should provide you, the manager, with clear strategies and prac�ces to use during your interac�ons with your employees, from one-on-one discussions to project mee�ngs, to formal annual reviews.

No ma�er your organiza�on's size or industry, today's work environment is drama�cally different than it was a few years ago, more work straddles mul�ple departments or customer bases, this in turn requires more collabora�on, which then necessitates be�er communica�on, and more employees are now working remotely or with colleagues in other states or countries. Because of the changing nature of today's business environment, many organiza�ons are realizing the need to revise their performance management systems, so you'll likely experience a range of models and systems over the course of your career.

As a manager, you'll need to u�lize the current system in place at your organiza�on, but I think it's always a good idea for you to stay informed about best prac�ces in performance management because it can guide how you implement your organiza�on system or even how you advocate for needed change. Some of my favorite sources of informa�on are the Human Resources Leadership Council, the Society for Human Resource Management, Harvard Business Review, Bersin by Deloi�e and McKinsey Newsle�er.

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To be an effec�ve manager, I recommend that you use the following strategies: First, become informed about your organiza�on's process for performance management, and do so as early as you can. If they offer training, a�end it right away. Many managers wait un�l they must complete an annual review, but that's actually 12 months too late. Performance management is something you should be doing every week with all of your employees, if they don't offer a training or if you s�ll have ques�ons, make an appointment with the appropriate person in HR. Ul�mately, the performance process offers legal protec�on to both the employees and the organiza�on. The manager is the person responsible for implemen�ng it appropriately and accurately, no pressure or anything. Second, create your own method for organizing key informa�on, consider how you'll track and measure each employee's progress throughout the year, perhaps design your own form for one-on-one mee�ngs or agendas for team mee�ngs that helps you align the day-to-day work with performance management. Be sure to explore the features that an online system might offer you or other online tools that can help you. Third, be transparent with your employees, share with them all you can about the process, discuss how and when their performance will be assessed, how you will support them in being successful, and how it relates to compensa�on and career opportuni�es, no employee should ever be surprised during their annual review. I recommend doing this in a group se�ng so that everyone hears the same thing at the same �me. It not only saves you from repea�ng yourself, it also helps the team know that they're all held to the same process and standards. In the rest of this chapter we're going to look at more parts of the performance management process and how you can use various tools to maximize your success as a manager.

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IX IX.

Managing People

Now we are about to deal with going from peer to manager. The managing career usually makes people both excited and nervous, as everyone has experienced bad bosses, and I’m sure you want to do a good job being someone your employees trust and respect: this should be your goal, to be able to build a rela�onship with them based on trust and respect. In this part we will cover ways you can do that, but first let’s talk about how your transi�on from being a peer to a manager. If you are coming in from the outside, and have not worked alongside your reports it can be easier, because you do not have a previous rela�onship with them. You come in to a role of authority. While they don’t know you, they also don’t have any preconceived no�ons about you. However, you’ll have more work to do to help them get to know you and trust you. If you’ve been promoted to supervise your colleagues, they do know you, which means they have some beliefs about who you are and how you’ll manage. These may or may not be accurate, so you may need to overcome not only their assump�ons but your own. Whether you’re promoted from within or hired from the outside the following strategy should guide your ac�ons the first few weeks and months.

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First, have pa�ence with their nervousness. You probably remember having a new boss yourself, because we have all lived with poor managers people are somewhat anxious to see what kind of manager you’re going to be. This means that they will simultaneously be pu�ng on their best behavior for you, and also guarded about what they share with you. They will also be trying to bend your ear about their priori�es and concerns. That is good, you want to learn all you can so listen. Just do not promise anything early on un�l you’ve really had �me to assess everything.

This is a great �me to focus on ge�ng to know your people, your second strategy. One of the best things any new manager can do is to make a point of mee�ng with each of your people to learn more about them. Here are some key ques�ons to ask. Tell me about your role, I’d like to hear your perspec�ve on what your priori�es are and the challenges that you face. How I can support you in being successful? How do you like to be supervised? What mo�vates and engages you at work, and by thanking them for the informa�on. At this point, don’t make any promises about what you will or won’t do. It’s too early to commit to anything. I also think it is a good idea to meet with your colleagues in other departments, and also those above you. Ask them the first two ques�ons, you will learn a lot. This is all part of the third strategy, which is to take �me and gather informa�on. This is certainly important if you are new to the organiza�on, but it is even more so if you are already working there and here is why. As you move up you gain a whole new perspec�ve about things. You will be privy to all kinds of informa�on that you did not have before.

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You will learn more about the people above you, the organiza�on’s goals and challenges, as well as confiden�al informa�on about the budget and personnel files. Trust me when you move up, it’s a whole new world. So, you want to take �me to learn all that you can before you make any big decisions, or implement new ideas. While you may be brimming with them, it is in your best interest to slow down, and thoroughly explore the real lay of the land. Fourth, be transparent with your values and philosophy. While you may be wai�ng to design and implement changes, you can use this �me to share your values and management philosophy. This is how you start building trust, and establishing your integrity. Your employers are nervous, and they want and need to know who you’re going to be.

I recommend comple�ng the handout called, Discovering Your Core Values.Fi�h, take �me to cra� your overall strategy. Once you’ve gathered informa�on you want to think about how you can address and resolve some of the challenges while also maximizing strengths and opportuni�es. This all needs to work within the structures and resources you have. By cra�ing your overall plan, it will help you map out how you’ll make changes over �me. In addi�on, it will be the North Star that will guide your decision making in all kinds of situa�ons. If you know you’ll be implemen�ng change, be sure to watch the course called, Leading Change. Finally, pace yourself. I know you may be chomping at the bit to get started, but if you rush too quickly you may accidentally damage the rela�onships you’re trying to build. Your effec�veness as a manager is completely dependent on your ability to build posi�ve working rela�onships with people all over your organiza�on. So, focusing on that first, and the rest will follow.

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X X.

Skill for the Business Managing

Being a manger means you manage a lot of things. We've already covered all the ways you'll manage people and their performance.

Now we are going to look at how you manage the business. This includes making decisions, overseeing projects, complying with the key policies and regula�ons, and also managing the budget.

The first place we need to start is how you manage your �me.

Being a manager is really a juggling act. You must keep a lot of balls in the air at the same �me. Your first priority is having a method for managing your �me, so that you can a�end to each of the important things you oversee, without exhaus�ng yourself or burning out. I'd like to add the following �ps.

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First, really focus on what is true about you. Managing your �me starts with you and how you, and only you, interact with �me. This includes when you're at your best for certain types of tasks. For example, my mind is sharpest in the morning from eight to noon. That is the best �me for me to do ac�vi�es that require a lot of thinking, like wri�ng or designing training sessions. Another thing to consider is how long you can focus without a break, and how long of a break you need before you are fresh again. There are no right answers, but there are the answers that are true for you. Second, explore the different components of �me management. People o�en think that �me management is just about clocks and calendars, but it is really about managing all the things that take your �me. This means that you need to look at managing your email, scheduling your calendar, and even files, papers and notes. Third, crea�ng a system that supports how you really work.

Once you know more about yourself, choose or design a system that supports you. The only criteria are those ones which help you be more focused and effec�ve. Finally, and perhaps the most importantly, learn how to say no, or at least not now. A big part of managing your �me includes protec�ng it. All the wonderful inten�ons and systems will go out the door if you con�nue to pile things on your already full plate. So, one of your key strategies is to control the flow of things that you take on. This can be especially challenging if you have a hard �me disappoin�ng people. It's called the disease to please, and I suffered from it for years. I kept taking on more and more, ge�ng more stressed out with each commitment. And then I started ge�ng angry and resen�ul at my job.

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One day I was asked, once again, to take on something. I was already super stressed out working evenings and weekends, and s�ll not ge�ng everything done. I said to my boss, "I don't understand how you expect me "to take on this project. "Can't you see how overwhelmed I am?" And she said, "Brit, I'm not pu�ng this project on you. "I came to you and asked if you could take it on. "Your answer could be yes or no. "If you can't do it that's fine, "just tell me and I'll ask someone else." Wow, I was stunned. No was an op�on? When I thought back on it, I realized that was how I ended up with every project on my overflowing plate. She'd asked, and I had said yes. Needless to say, that was a big life lesson. It really showed me how I was not taking responsibility for my own �me or priori�es. And the ability to say no is part of that. I actually recommend you have go-to phrases that you prac�ce and use. Here are a couple of mine. "Let me get back to you in 48 hours. "I need to assess what's currently on my plate." This buys you �me to think. Or, "I can see that you need me to take this on "and I'm happy to help out. "Let's chat about what task we'll take off my plate "to make room for this one." And perhaps the most powerful, "No thank you." I encourage you to create your own list and prac�ce them out loud un�l you get more comfortable saying them. That way you'll be ready when someone is standing in front of you with a request.

Together, all of these strategies will help you be at your best so you can manage others with style and grace.

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XI XI.

Final advice

Between managing people, their performance and the business you have a lot to do, but your organiza�on has confidence in you otherwise they would not have given you this responsibility. Management is definitely something you learn on the job, so take a deep breath, roll up your sleeves, and dive in.

As you grow and learn as a manager, you will get be�er at each of the skills we have covered in this course. Since being a manager takes a lot of �me and energy let’s talk about my favorite strategies for keeping you at your best.

First, it is important to find ways to pace yourself. It takes �me to develop your competency as a manager, and it will not happen overnight. Review the assessment you filled out, and design a professional development plan. If you focus on one new skill per month you can accomplish a lot in a year. Second, take care of yourself so that you’re in good shape to manage others. This means both physically and emo�onally. In my course Leadership Fundamentals, I go into depth about the key prac�ces of sustained ability and resilience. You need to be tending to both. Third, build a network of other managers. It can be really helpful if you have peers, both inside and outside your organiza�on whom you can turn to for support. Managing can be challenging, and you need confidants whom you can trust, and who can also share their experiences. I also recommend that you have a mentor. This person should hold a posi�on you aspire to have some day, and who’s willing to provide advice and guidance. Finally, remember that your people are the ul�mate reflec�on of your skills as a manager. Their successes are yours, so invest in mo�va�ng and engaging them, and helping them reach their highest poten�al. This will not only help the organiza�on achieve its goals, but will demonstrate that you’re ready for higher levels of opportunity. In the exercise files I share a list of recommenda�ons so you can further enhance your learning on management. You’ve already done a lot of great work by a�ending this course and using these prac�ces, so keep going you are on the right track.

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XII XII.

The State of Fashion in 2019

Hereto shown the analysis run by McKinsey & Company with reference to the data collected by Business of Fashion.

Execu�ves describe 2018 withthe words“changing”, “digital”,and“fast”.

New

Exhibit 1: Top 3 words to describe the industry Top 3 words; % of respondents who men�oned word, n=274

First

Second

Ques�on: What are the 5 adjec�ves you would use to describe how you feel about the fashion industry in 2018 so far?

2017

2018

Uncertain

Uncertain

Changing

54

53

34

Changing

Challenging

Digital

31

32

26

2016

Third

Challenging

Op�mis�c

Fast

29

21

25

Source: BoF-McKinsey State of Fashion Survey

40

Execu�ves generally viewed consumer shi�senabled by technology as the most important trends in 2018

Exhibit 2: Perceived impact of 2018 trends Average ra�ng of respondents (1-10)

Technology related

Consumer shi�s

Mobile obsessed Pla�orms first Start-up thinking Ge�ng personal Sustainability credibility Predictably unpredictable Asian trailblazers Globalisa�on reboot

Ques�on: Looking back at 2018 so far, how much have the following trends impacted your business?

Off-price decep�on AI gets real

Source: BoF-McKinsey State of Fashion Survey

41

Vola�lity, uncertainty and shi�sin the global economy is s�ll foreseen as the industry’s #1challenge New

Exhibit 3: Main challenges for year ahead 1st

2017

2018

2019

Dealing with vola�lity, uncertainty and shi�s in the global economy

Dealing with vola�lity, uncertainty and shi�s inthe global economy

Dealing with vola�lity, uncertainty and shi�s inthe globaleconomy

15% of respondents

2nd

Compe��on from online and omnichannel

Sales and profitability growth

Compe��on from online and omnichannel

13% of respondents

rd

3

Compe��on from online and pure-playplayers

Value chain improvement and digitalisa�on

Speed of changing consumerpreferences

7% of respondents

Ques�on: What do you think will be the single biggest challenge for the fashion industry next year?

4th

Decreasing foot traffic and offline retailing pressure

Supply chain improvement

Need to achieve greater sustainability and transparency 7% of respondents

Source: BoF-McKinsey State of Fashion Survey

42

While the premium/luxury segment expressed overall op�mism value and midmarket players appear to be more cau�ous

Become worse Remain the same Become better

Exhibit 4: Outlook for industry condi�ons in 2019

Market segment 2019 F

32

Premium/luxury

12

56

% of respondents Mid-market

58

42

54

Value

19

27

Geography 2019 F

Ques�on: How do you expect condi�ons for the fashion industry todevelop over the course of the next 12 months?

30

North America

6

47

Europe

Asia

51

64

9

44

19

30

Source: BoF-McKinsey State of Fashion Survey

43

Exhibit 5: Expected change in global economic condi�ons, next 6 months % of respondents

Global economy Dec 2017

Mar 2018

Jun 2018

Sep 2018

3

Substan�ally be�er 48

5

38

3 29

Moderately be�er

2 23

Moderately worse 14 1 24

Substan�ally worse

1

32 3

37 4

Respondents who answered “the same” are not shown.

In Dec 2017, n=1,648; and in Sep 2018, n=1,158.

Source: McKinsey Economic Condi�ons Snapshot, September 2018

44

Exhibit 6: India powers ahead of other major emerging markets Real GDP CAGR 2018-22 forecast, %

8.0

India

6.1

China

3.7

Turkey

3.0

Mexico

2.3

Brazil

1.5

Russia

Source: Economist IntelligenceUnit

Exhibit 7: Belief that changes intrade policy will pose poten�al risksto global economic growth 62

% of respondents 56

25

Q4 2017

Q12018

Q3 2018

Source: McKinsey Economic Condi�ons Snapshot, September 2018

45

Exhibit 8: Expecta�ons on consumer appe�te for new ownership models % of respondents More relevant in 2019

44

Less relevant in 2019

22

41

Pre-owned

28

Rental Source: BoF-McKinsey State of FashionSurvey

Exhibit 9: Totalfashion, apparelandbeauty B-Corps Absolute number of corpora�ons 197 186

200

150

Examples: Eileen Fisher Athleta Allbirds Mud Jeans Soma

138

100 87

50

0 2015

2016

2017

Apr 2018

Source: B Lab

46

Exhibit 10: As conversion rates are significantly lower for mobile than desktop, retailers will work to improve the customer journey Fashion average sales conversion rates, desktop and mobile, % 3.2

0.9

Desktop

Mobile Source: McKinsey &Company

Exhibit 11: Fashion execu�ves an�cipate consumers’ need for transparency

Survey respondents that cited “consumer needs for trust in product Authen�city and crea�ve originality” in their top 5 trends for 2019; ranked 2nd out of a possible 12.

65%

Source: BoF-McKinsey State of Fashion Survey

47

Exhibit 12: Followers of challenger brands are more ac�ve and engaged than those of legacy brands Instagram like/followerra�o (LFR)

Average number of likeson each post in propor�onto number offollowers over four weeks in August 2018.

Source: McKinsey & Company, analysisbased on Instagram data

Exhibit 14:

Exhibit 13:

Survey respondents‘ aspira�on level Valua�ons of online retail players are significantly higher than tradi�onal retail for a shi� to nearshoring 2017 average market capitalisa�on to EBITDA mul�ples

% ofrespondents >20% share of total sourcing

20.0

11.1

33 Online retail

Other fashion companies

2018

Based on averages of publicly listed fashion retailers with $100m + annualrevenue.

60 2025 Source: McKinsey &Company

Source: McKinsey Global Fashion Index (MGFI)

48

Exhibit 15: Automa�on of sewing will be the biggest driver of labour reduc�on

Source: McKinsey & Company and ITAat RWTH Aachen

Exhibit 16: Nearshoring and automa�on will be important enablers to reach a circular value chain

Indirectly enabled by a more closely integrated chain Enabled by near-shoring Enabled by automa�on

Circular (zerowaste) design process

Improved recycling business case by elimina�ng shipping

Poten�al to minimise waste by reducing unsold items

Produc�on of renewable and sustainable fibres

Co-located collec�on and recycling of tex�les

CIRCULAR FASHION VALUE CHAIN

On-demand distribu�on and retail sales

New resource efficient fabric produc�on

Automated produc�on of high quality garments

New, near-shored fabric industries could invest in resource afficient and sustainable technology Automated finishing significantly reduces use of energy, water and chemicals

Could increase the value of fast fashion items for consumers and pro-long garment life and chemicals Source: McKinsey &Company

49

Exhibit 17:

128

-47

-34

3

Bo�om 20%

6

100

21- 80%

18

Top 20%

-18

Fashion companies’ contribu�on to industry economic profit 2005-2015 vs. 2016 vs. 2017 %

144

The top 20 percent of fashion companies generated 128 percent of industry economic profit

2016

Based on publicly listed companies.

Exhibit 18: Top20 fashion companies‘ contribu�on toindustry economic profit 2008-2017

2017

Source: McKinsey Global Fashion Index (MGFI)

108 97

10 Years Average: 88

101

97

93 86

86

81 73 70

70

73

81

86

86

97

101

97

2011

2012

2013

2014

2015

2016

2017

93

2009

2010

108

2008

%

Financial Crisis Based on publicly listed companies.

Source: McKinsey Global FashionIndex(MGFI)

50

Companies consistently inthe top 20 from 2008-2017

Exhibit 19: The“super winners” Top 20 players 2017, By economic profit, $US million

At adjusted 2017FX rates.

Based on publicly listed companies.

Source: McKinsey Global Fashion Index (MGFI)

Discount 4 4%

Exhibit 20: Economic profit distribu�onby segment

Luxury 24% 24

Value 20 20%

Totaleconomic profit by price segment, 2017 % of all public companies

Due to rounding, numbers presented may not add up precisely to 100.

Based on publicly listed companies.

Affordable 4% luxury 4

11% Premium/ Bridge 11

Mid-market 36 36%

Source: McKinsey Global Fashion Index (MGFI)

51

Exhibit 21: Fashion industry sales growth by region, category, and segment, 2018-2019 %

Source: McKinsey Global Fashion Index (MGFI)

52

Bibliography

Brand Iden�Kit: Trasformare un Marchio in una Marca. Gaetano Grizzan�, Fausto Lupe� Editori; Marke�ng Management. Qua�ordicesima Edizione. Kotler – Keller – Ancarani – Costabile. Pearson; 8 Ways to Win: Market your way to Growth. Philip and Milton Kotler, Wiley; Come Costruire il tuo Brand. Manuel Schneer, Adriana Velazquez, GueriniNext.

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