June is a special month for my Company,
21 June to be exact, it is the day we commenced production in 1996. Our factory
was finally ready in March 1996; however we were unable to start as there was
no power. We watched helplessly as the peak season rolled by and we twiddled
our thumbs. Finally, with the rains came power and believe me we cursed all and
sundry for the lost opportunity.
The next three months were hard, but by
the end of August we were singing a different tune. We no longer believed that
we had lost an opportunity. Rather we believed we were fortunate that because
of the delay we were forced to launch during the off season.
Our rejection rate in those early months
was close to 28%. Power failure accounted
for 90%. This was easily rectified with the addition of a generator. The
balance, attributed to employee training. Training took a longer time as everyone
had to understand the technology in a factory situation. The theory seemed so
simple.
I can only imagine the situation had we
launched during the peak season. Far from capturing the market we would have
cut a sorry figure with delayed deliveries and shoddy service. This would have
irritated our new found dealers and direct customers. It is said that, it costs
ten times more to add a new customer than to retain one. Surely we learned our
lesson, but were spared the hard way.
Yet launching at the start of a new
season is the flavour of the day decision. Just check out the advertisements
launching new restaurants at the start of every season in Goa, then check out
how many were still around in the next season. Also look for restaurants which
start pre season and usually they are around then next time the season starts.
If you have watched kids play with body
boards in the surf? You will notice it is the ones who struggle with the little
waves, who finally get far enough and catch the big wave for a cool ride back
to the beach. But the big ride means lots of spills initially on the way out.
After some trial and errors, the kid figures it out and he rides back easily
with every outing.
With a pre season or lean period launch
you can address the bugs in your system; the falls will be small and can be
managed. A supplier may need to be changed because his material is substandard,
since you are doing things at a slower pace you can catch the defect. You are
running out of clean cutlery, well you can calculate how much more you may
need. If the place was operating at 100%, it would be pretty embarrassing would
it not? Another analogy, driving a car
at 100 km/h on the first day, a recipe for disaster.
Maybe, I am old fashioned and my idea of
slow and steady might seem like a plodding strategy. For those who wish to hit
the ground running, I would recommend lots of dry runs to fine tune delivery
strategy and remove system bugs. In addition the team must be in place for at
least 2-3 months before launch date so that they develop an understanding
between each other. This would pre-empt but not close out all interpersonal
issues which can play a huge role in the eventual success. Last but not the
least the Boss must be free to look at customer issues immediately and close
them to the customer’s satisfaction.
A customer at an upscale restaurant in Panaji
was dissatisfied with the service levels. However once the owner ,who was not
present, got to know, he not only apologised but reassured the customer of
meeting his standards the next time and door delivered a free order to try and
make up. Imagine if you were the customer, I am sure you would be delighted. He
had just launched.
Contrast this to another fashionable
restaurant in the back of beyond in Verna, on a week day it was full. The
customers are waiting for their order, jokes are being exchanged across the
tables, and waiters are being harangued. The owner, who was present, coolly
sips his drink behind the bar and looks the other way. You take a guess which one will be around
longer, if serious corrective action is not taken.
At the end of the day, launching and
handling front end carefully after launch is all important.
No comments:
Post a Comment