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Assessment & Evaluation

Luxottica Retail: Using Scorecards to Build Stronger Business Partnerships

Jason Averbook and Michael Brennan

As a large employer with more than 34,000 associates, Luxottica Retail’s corporate HR team takes a shared-services approach to meet the needs of each of its brands, which include LensCrafters, Pearle Vision and Sears Optical. As the nation’s largest optical retailing company with more than 5,400 retail locations, the company leverages functional HR teams to work proactively with internal clients on strategic initiatives, as well as operational issues that need improvement.

Collaborating to Build a Scorecard

To more closely tie its services to the needs of the brand leaders it serves, Luxottica’s HR leadership team chartered a new HR analytics group to build an associate development scorecard.

The tool, which is being created with the input of internal clients, is designed to support the creation, automation and dissemination of HR operational and workforce effectiveness metrics throughout the organization.

The initial audience for the scorecard is one of Luxottica’s optical brands, which is testing the tool in a region. Designed to present regional brand leaders with concise information on how their stores are executing from a human capital standpoint, easy-to-view charts and indicators offer visual appeal. Text fields, containing key questions regional managers can use with store managers to uncover behavior traits that drive associate performance, support the graphics.

After discussing scorecard results and identifying performance gaps, regional managers can work with store managers to determine the next steps to improve performance. Conversations focus on insight and action planning, and brand leaders from operations and finance partner closely with HR consultants in learning and development, as well as associate relations, to review trends.

To build this initial scorecard, HR worked with the IT department to identify multiple systems where the required data elements were housed. Luxottica then put together a long-term technology road map to automate data management, metrics calculation and presentation of information and analysis.

Building on Success

More automation will be needed because of brand leaders’ warm initial reception of the associate development scorecard. Impressed by this proof of concept, as well as the prospect of distributing various views of the scorecard to managers throughout the corporation as future best practices, they want all managers to be more cognizant of the workforce segments they oversee and of those they depend on to execute business goals.

Consequently, HR will need a flexible and secure data infrastructure to deliver the custom views and drill-downs its growing audience will require. Plans have been made to collaborate further with the IT department to realize this vision.

Further, HR increasingly will be held to standards established through its own scorecard. By more proactively identifying and managing the metrics its clients consider important, the group will have ongoing reference points for continuous improvement of the services it delivers.