Refashioned

Performance
Management
Indra Kusmara
Laila Nurfitrah
Lubis
Mila Mujaadilah
Gilang
Matriansyah D.

INTRODUCTION
Gap Inc. is an American worldwide clothing
and accessories retailer.
In early 2013, After great recession, senior
director Rob-Ollander Krane revamping Gap
Inc. performance management
Developed
a
new
performance
management called GPS Grow, Perform,
Succeed

Founded on
Ocean Venue
by Donald
and Doris
Fisher
Had grown
to 25
location

19

HIST
ORY

Created
Old
Navy

69 1970 1973 1983 199

4
Opened its
second
location in
San Jose,
California

Bought
Banana
Republic

acquired highend boutique

and e-commerce
expanded brand Internix

operations to
china and
established a
franchise
operation

19

00 2008 201
3

20

Opened its
first ecommerce
site

bought a woman
athlethic-wear
brand Athleta

GAP INC.
IN 2015
Gap Inc. was made up of five brands: Gap, Old
Navy, Banana Republic, Athleta and Intermix.
In 2015 Gap Inc. made a revenue up to $16,4
billion, an all-time high.
Recent growth driven by old navy and banana
republic
The cyclical of Gap Inc., about 60% occurring in the
fall (back to school) and winter (holiday) season.

Gap Inc.
Stores

The typical Gap Inc.

Brand
store
was
about 8,500 square
feet. Many stores
were located in malls,
but
some
were

The
average
headquarters
manager
oversaw three
to five direct
reports,
the
average store
manager
oversaw
between
35

Performa
nce
Managem
ent at
Gap Inc.
Headquar
ters

Through 2000s
Gap Inc., use to a
traditional
performance
management
that
Based on process
a
rated
and ranked
traditional
process,
employee each
typically manager
year.long
had one-hour
conversation about

GPS
Grow, Perform,
Succeed

Performance
Standard
Goals

Touch Based
Rewards

GPS
PERFORMANCE STANDARD

In Goal Setting ( set

though objectives)
Quickly learn from
our experience and
strive to win.
Managers inspire
and drive
performance of
their teams through
regular coaching
and feedback.

Introduce a
GOALS

modified goalsetting approach to

ensure employees
set fewer, more
outcome-oriented
goals with a stretch
component.
Use monthly touch
base as an
opportunity to
review goals on a
more regular basis.

GPS cont.
TOUCH BASED

REWARDS

Support shift in culture from

nice to nice and honest.
Ensure managers take
accountability for assessing,
developing and rewarding
performance.
Frequent infomal
performance conversations.
Build employee feedback
skills by providing a course
in effective, brain-friendly
feedback and opportunities
to practice.

Change the companys

bonus structure to
more strongly link it
to each business
units performance.
Increase managers
discretion on bonus
allocation, determined
by monthly touch
base meetings

Implementation
Challenges
Some managers didnt
understand the
reasoning behind GPS
Hard to adjusting the
new process of giving
and receiving feedback.
And inherent challenges
in having regular touch
base meetings

The First Year

Result of GPS
A large
Some employee
majority of Gap
feels harder for
There are a
Inc.
them to earn
massive drop in
headquarters
bonus, and
complaints
employees
they had less
from employee
reported that
control over
who were
their monthly
their annual
unhappy with
touch base
bonus under
their bonuses.
meetings was
the new
very helpful
process

Problem
Would GPS translate
directly or would a new
process need to be
designed for store-level
employees?
Was the grow, perform,
succeed framework
flexible enough to serve
as the basis of any level
store-level performance
management process?
If that GPS program was

SOLUTION
GPS can translate directly, because although their day-today jobs and work environment was very different from
what was found in companys store but GPS is based on
belief that when employees are placed in an environment
were there are given clear and challenging goals, targeted
feedback in regular performance focused conversation and
opportunities to learn success and failure, they can grow
and developed also improve their performance. Thats
called growth mindset.
GPS is flexible enough because GPS growth mindset can
be applied for every employees, that can be their
motivation to grow so that business can grow too.

How And
When
Develop the objectives that will help achieved GPS overall strategy.
Educate all the managers on why GPS are important because they are
the people who are responsible to communicate GPS to all employee.
GPS was designed to link organizational goals to individual goals that
make both individual goals and company goals can be met. It will
cause the employees not only achieve individual goals but also
participate in the achievement of company goals, which make them
motivated and get greater satisfaction.
The result will be brought to the company start from headquarters to
each regional managers, which then lowered to the district level
manager and the last to the store manager. The store manager then
execute the GPS plan to all employees and routinely given coaching
and counseling between superiors and subordinates.
Continuing the 3 years long term goals which already run for 18
month, GPS program can be implement right after all managers
understand the important of GPS and how it works.