Phase I — Assess & Design
The first phase of a CATz engagement. Output is a signed decision: proceed, against a specific vision, backed by a quantified business case.
Duration
- Small SMB specialty retailer: 2–4 weeks compressed.
- Mid-sized retailer with multiple channels or locations: 6–10 weeks.
- Enterprise-scale operation: 12–20 weeks.
Workstreams
Ten workstreams run in parallel within Phase I. Each has a defined purpose, input artifacts, output artifacts, and SME involvement.
1. Executive Interviews
Purpose. Capture what leadership thinks is broken, what they want, and what success looks like.
Inputs. Stakeholder list (C-suite + 1 level down per function), interview guide, calendar coordination.
Outputs. Per-executive analysis file + compilation + summarized compilation. The compilation triad is non-negotiable — individual files are audit trail, compilation is the thesis, summary is what the steering committee reads.
Runs. Week 1–2 (parallel with field visits).
2. Field Visits
Purpose. See the operation. What leadership describes and what stores actually do are often different.
Inputs. Store sample plan (high-volume / low-volume / geographic spread / channel mix). Visit protocol.
Outputs. Per-store visit report + compilation. Same triad pattern as interviews.
Runs. Week 1–3.
3. As-Is Workshops
Purpose. Document the current operating state per business domain.
Inputs. Cross-functional SMEs per domain. Prior interview and visit outputs.
Outputs. One as-is deck per domain (Commercial, Supply Chain, Finance, Store Ops, Space / Range / Display, People / Labor, Property / Assets, Loss Prevention, Technology).
Runs. Week 2–5, one workshop per week per domain.
4. Executive Visioning
Purpose. Define the target operating state. This workstream is forward-looking and distinct from the backward-looking interviews.
Inputs. Interview outputs, industry benchmarks, executive alignment.
Outputs. Vision deliverable (presentation + doc) articulating the target state in operating terms.
Runs. Week 3–5, after as-is is well underway.
5. Benchmarking
Purpose. External anchors for the vision. Where does the retailer stand against peers?
Inputs. Industry data sources, ARTS / NRF benchmarks, public peer filings.
Outputs. Benchmarking analysis per KPI (sales growth, gross margin, EBIT, stock turn, customer satisfaction, labor cost, etc.).
Runs. Week 2–4, in parallel with as-is.
6. Balanced Scorecards
Purpose. Framing artifact applied over everything. Not a workstream per se — a lens.
Inputs. Balanced Scorecard framework (financial, customer, internal process, learning & growth).
Outputs. One spreadsheet + one deck applying the scorecard to the retailer's current state.
Runs. Week 3–4.
7. Quantitative Analysis
Purpose. Ground the narrative in data. "There's a significant opportunity" without numbers is a vibe, not a diagnostic.
Inputs. Financial extracts, POS data, operational data from existing systems.
Outputs. Four to six focused analyses, each answering one question (examples: inventory turns by vendor; discontinued items by store; service levels by region; labor cost per transaction).
Runs. Week 2–5.
8. Business Case
Purpose. Quantify the prize. Low/high ranges per driver.
Inputs. As-is analysis, visioning output, benchmarking data, quantitative analyses.
Outputs. The business case triad: - Benefits case (what's the prize, per driver) - Cost model (what's the investment, phased) - NPV synthesis (what's the financial story) - Solution-to-value traceability (which solution components map to which value opportunities)
Runs. Week 4–6, after the quantitative analysis produces baseline.
9. Presentations
Purpose. Steering committee cadence. The engagement's heartbeat.
Inputs. All other workstream outputs.
Outputs. SC#1 presentation, SC#2 presentation, SC#3 presentation, final Phase I report. Numbered, dated, Final-marked. Version control is non-negotiable.
Runs. Continuous. SC every 2 weeks.
10. Change Management
Purpose. Transformation doesn't succeed on analysis alone. The change-management plan is a workstream, not an afterthought.
Inputs. Stakeholder analysis, org design inputs, change- readiness assessment.
Outputs. Change-readiness assessment, stakeholder engagement plan, communications plan.
Runs. Week 2–6, in parallel with business case.
Exit criteria
Phase I closes when:
- Vision is signed by the steering committee.
- Business case is signed (benefits, cost, NPV all validated).
- Phase II scope is defined (which workstreams run next).
- Change-readiness assessment is complete.
- Phase I final presentation is delivered and the executive sponsor confirms "proceed."
If any of those are unsigned, Phase I does not end. Compressing Phase I by skipping the sign-off is a failure mode; the method forces the decision gate.
Related
- phase-2-select-and-implement
- ../overview
- ../retail-diagnostic
- ../../proof-cases/canary-self-diagnostic