And I go to work at nine
I got no time for livin'
Yes, I'm workin' all the time
It seems to me
I could live my life
A lot better than I think I am
I guess that's why they call me
They call me the workin' man
'Cause I get home at five o'clock
And I take myself out an ice cold beer
Always seem to be wondering'
Why there's nothin' goin' down here
I guess that's why they call me
They call me the workin' man
"Workin' Man" - Words & Music by Lee & Lifeson
All four Lincoln Super Saver ASDs switched in one move. The Cornhusker ASD (me) moved to Pine Lake, who moved to 56th and Highway 2, who moved to 48th & O, who moved to Cornhusker. I'm going to divert from my own personal story to focus on what was going on in another store.
Store Directors earned bonuses based on how close their gross profit was to what was budgeted. In most situations if you achieved or exceeded your budget the budget was increased the following year. Rarely was it lowered if you failed to achieve the profit target. For some reason the exception was the store that the previously mentioned Ron S ran, the 56th and Highway 2 Super Saver. The profits regularly exceeded the budgeted amount by a huge margin, but the budget was never increased. This guaranteed that the store director and assistant store director received the maximum amount in their annual bonus. The ASD who was leaving 56th was very upset about leaving. He was used to getting the maximum bonus - in fact, he had recently divorced and his child support was based on the assumption that he would continue to receive the maximum bonus. As I mentioned in Part XVII, Bill had been transferred out of my store and to the 56th Super Saver, since Ron S had been "promoted" into the corporate office. A couple of things happened in the wake of these moves. The first was that the budget for gross profit was changed to more closely reflect the business that the store actually did. (Why not sooner?) The second was that the store's inventory was counted more closely.
Without getting too deep into the math, one of the key numbers that determined a store's profit was the inventory level. If inventory was undercounted, profit calculations would be low, since the assumption would be that the missing stock had been either thrown out for being outdated, or stolen, since there was no revenue to account for it. If the inventory, on the other hand, was overcounted, then the opposite would be true and the profit margin would be calculated higher than the real number. The latter was what was going on at 56th under Ron S. It was a test store for using an internal ordering and inventory system called INGEN (I forget what those letters stood for), which, among other things, kept a running, daily, count of all items in the center store departments. One of the problems with using this system for your inventory count was that there were many possible data entry, human error, possibilities. For example, a customer buys two cases of Chobani yogurt, 12 to a case. There are eight different flavors, but the cashier rings them all up under one flavor. The result is that one flavor's inventory will be lower than the actual numbers, while the other seven will show a higher inventory. Markdowns were another problem. Usually marked down items were rung up manually by department, so there was nothing in the system to indicate that it had been sold. Outdated items that were thrown out had to be scanned out of the inventory, but if not, the system thought they were still there. At 56th under Ron S it was discovered, after he left, that the inventories for several departments were higher than actual and were skewing the profit calculations, making the store look more profitable than it actually was.
One of the things that B&R Stores engaged in was never questioning good results, while freaking out over bad ones. The 56th and Highway 2 Super Saver was a profitable store. At the time there were no competitors nearby (this was pre-Walmart), so no one questioned the continual high profits. The store management who were raking in huge bonuses certainly didn't question it. It wasn't until a new management team came in that the inventory issues were discovered. One of the things that stores were supposed to do, was continuously update their inventory. There was to be an employee specifically dedicated to this task who would rotate through the store, keeping the inventory accurate. Bill, and his new ASD Dan set about to check their inventory and get things in line with company policy. They found out that things were really, really bad. The inventory numbers were way off. So much so that several departments had negative gross profits, which is virtually impossible. Another thing that was impossible was the scenario where the new management was so incompetent as to take a very profitable store and run it into the ground in one year. Not only run it into the ground, but screw it up so badly that it was losing money. (One of the things that I found out about that store was that routine maintenance and repairs were being ignored when Ron S was in charge. This led to Bill having to spend a lot of money fixing things that never should have been broken. The store was also filthy. When I was there for a reset the dirt under the shelving was so thick that small animals could have gotten lost in it. When we discovered this Ron [who with us] tried to get us to believe that years of dirt had accumulated in one year)
Around this time the corporate office decided to change assistant store director responsibilities again, using 56th as a test store. The position of in-store HR Coordinator would be eliminated, and each store would have two ASDs, one of whom would be responsible for HR functions as well as a couple of departments, and the other would oversee the rest of center store. This was a project pushed by Operations VP Tom Schulte and opposed by HR Director Donna Bristol. A second ASD was brought in and Dan, the existing ASD was given the HR responsibilities, which he was completely in the dark about. He attempted to get help from corporate HR, who refused to assist him, or even educate him on his HR duties. He reached out to HR Coordinators in other stores, who were willing to help him, but were prohibited from doing so by Donna, in a petty retaliation for losing the battle to Tom. Of course Dan failed. He was set up to fail.
Meanwhile, in order to solve the problems that took place under Ron S's watch, corporate sent in...Ron S. Ron set up a little table in the grocery office as his desk and went about micromanaging the management team, including mandating the precise number of hours that Dan could spend working HR. Of course nothing that he did fixed the problem. The problem traced back to overstating inventory, which, when corrected, led to low and negative gross profits. Correct inventory levels would cause the profit problem to correct itself. These obvious observations never occurred to the corporate directors. Bill and Dan were blacklisted and moved to smaller stores as punishment. This opened my eyes to the kind of people that I was working for, even though at the time it had no direct effect on me.
Before I close out this sordid chapter, I want to call back to another sordid chapter. HVAC maintenance and repair for all the stores had been contracted out to A-1 Refrigeration, a local company. While I was still working at the Cornhusker store, one of their technicians was sexually harassing a teenaged girl who worked in the Deli. She complained to the store director, who complained to A-1, who immediately fired him. Dan H, the pervert in question, went on to start his own HVAC company. With the collusion of John W, one of the Super Saver ASDs, he obtained some of A-1's invoices and approached Jane Raybould to become contracted to maintain the HVAC equipment at some of the stores, underbidding A-1's rates. Jane gave him the contract for all the Russ's Markets, leaving the Super Savers to A-1, despite being made aware of why A-1 had fired him. His company was also given the contract for the new Russ's at Coddington and West A. Jane eventually fired him, but only because he did not obtain permits for what he was doing, not because he sexually harassed teenaged girls.
Yes, a shady business.
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