How to Ruin a Good Company?
How to Ruin a Good Company?
By:
Vijay Sardana
Vijay Sardana
Yesterday, I had an incidence in one of the retail store in Delhi. That experience inspired me to put some of my thoughts and experience in this brief article.
In the last eight years, many companies entered in retailing with mixed level of success. Author was keeping close track of the developments in this sector. There were many lessons for CEOs and supply chain managers in the last eight years. Some of them are highlighted in this article.
Author was involved in retailing revolution in India since beginning in various capacities. Undertook many projects for various organisations including capacity building at various levels, developing systems for supply chain management, vendor selection and negotiations and business modeling.
The focus in this article is mainly on what were the reasons why retail chains have not delivered as per the expectations Why high profile launches were not able to sustain the euphoria which was created at the time launches by big business houses.
The focus in this article is mainly on what were the reasons why retail chains have not delivered as per the expectations Why high profile launches were not able to sustain the euphoria which was created at the time launches by big business houses.
Arguments given for the need of retail chains in India were as follows:
1. Shopping experience by offering all under one roof.
2. Clean and hygienic environment
3. Value for Money
4. Farm to Fork Concept under one roof
5. Infrastructure development by these companies will help the farmers
Let us focus on First point first.
Let me share some live examples, as a customer, I visit many outlets and gave my inputs in the from of consumer complaints to understand what organisation does with these complaints. This was just to develop live case study.Complaints were forwarded by email to understand how they will react. You will be shocked to know, except ONE, no one was even willing to acknowledged the written complaint.
The most encouraging response and positive development came from Metro Cash and Carry. They took consumer complaints on war footing and addresses the problems in few hours or in couple of days. In other organisations, what they do with complaints I don't know.
In my view,
COMPLAINTS ARE FREE ADVISE FROM PEOPLE THOSE WHO MATTER.
Why people Complain?
Because they have expectation from organization. Consumers take trouble in filing the complaint because they want to come back and expect better service or product next time.
And....What we do, as a managers?
If someone is complaining, it means buyer expects that we will improve by the the time he comes back. We disregard buyers' views, without realizing that he has options to go somewhere else, but companies have no option. Still they need buyers and consumers for their own existence.
Don't argue with the customer. It's very easy to take complaints.
You don't need Multinational consultancy companies to know what is wrong with your company and product. Just listen to what your customers and buyers are saying. This least cost common sense approach will be most cost effective way to find out the true reasons behind most of the problems within your organisation. This will also develop customer loyalty.
Poor performance by companies can be gauged by the system of handling consumer complaints. Do an in-house audit, if you want to survive in the competitive market.
In most of the organisations we treat consumer complaints with negative mindset.
Line managers will prefer to hide the complaints because they thing it will reflect poorly on them.
Area managers think it will be additional workload and try to dump at the earliest.
Senior managers consider consumers and buyers are idiots. They argue about consumers knowledge base. How much consumer know about their business and product? What we are doing is right. They are doing it from last so many years, consumers are just creating issues without reason. etc etc.
Promoters and Top management is beyond a reach. Call up head office of any company, you just can't talk to them. Their support staff will create an iron wall around them as if they are the most precious thing in the history of mankind and world can't move without them and they are so busy in solving problems created by the God himself.
Do you know the reason? These HOD tell their staff, don't disturb us with complaints we have better things to do? We are HOD for customer service that is fine, but my first job is to see the welfare and mood of my Boss. These designations doesn't mean that this is their job and they will act accordingly. We will do as per our company policy. Consumers views can't change our policy. (... these companies exist for whom...). In democracy, Voters have option to change the government, not the management of companies. Only option is change the company.
EXERCISE: You may be thinking I am joking, pick-up any company and dial the number of Head of Customer care. Tell the receptionist or his personal staff that you want to talk to him because you have some complaint about your product. These people will give you all sorts of directions but very rarely allow them to contact the Head of Customer Service. Try this and have fun.
BEST OPTION: Dial your own company's customer service number. Behave like a common man and see what happens. If you are well-wisher of your company, you will know what to do next....
What is the outcome?
Consumers move to more responsive companies. These organisations suffer. These new companies will start growing faster than the old companies in age and thoughts. Instead of blaming their own action or inaction, these managers and promoters will start blaming government policies, economic environment, etc. They will never blame themselves and their own actions and in-actions.
IMPORTANT: Have you ever met or seen any CEO or promoter who says, I have screwed-up my company or business. I have attended many seminars and conferences, but till date never heard this statement. Do you know why, because Promoters, MDs and CEOs can't make mistakes... but God can.
LEARNING: In every management school they teach how to develop good customer service. But from where these manager learn how to ignore customer feedback. Who are their guides and trainers for these new lessons. They can be either their Bosses, Superiors or Promoters of these companies, because the young executive and manager learn from the environment where they are working.
Do you have any department to register complaint against "Complaint Handling Department." If yes, are these emails and contact numbers accessible to the customers and buyers? If not, why?
It is a well known statement: Boss is Always Right.
Is this TRUE?
Do share your thoughts.
1. Shopping experience by offering all under one roof.
2. Clean and hygienic environment
3. Value for Money
4. Farm to Fork Concept under one roof
5. Infrastructure development by these companies will help the farmers
Let us focus on First point first.
Let me share some live examples, as a customer, I visit many outlets and gave my inputs in the from of consumer complaints to understand what organisation does with these complaints. This was just to develop live case study.Complaints were forwarded by email to understand how they will react. You will be shocked to know, except ONE, no one was even willing to acknowledged the written complaint.
Outcome, now 60 to 70 % of my monthly shopping expenditure is in that particular outlet only.
The most encouraging response and positive development came from Metro Cash and Carry. They took consumer complaints on war footing and addresses the problems in few hours or in couple of days. In other organisations, what they do with complaints I don't know.
In my view,
COMPLAINTS ARE FREE ADVISE FROM PEOPLE THOSE WHO MATTER.
Why people Complain?
Because they have expectation from organization. Consumers take trouble in filing the complaint because they want to come back and expect better service or product next time.
And....What we do, as a managers?
If someone is complaining, it means buyer expects that we will improve by the the time he comes back. We disregard buyers' views, without realizing that he has options to go somewhere else, but companies have no option. Still they need buyers and consumers for their own existence.
Don't argue with the customer. It's very easy to take complaints.
You don't need Multinational consultancy companies to know what is wrong with your company and product. Just listen to what your customers and buyers are saying. This least cost common sense approach will be most cost effective way to find out the true reasons behind most of the problems within your organisation. This will also develop customer loyalty.
Poor performance by companies can be gauged by the system of handling consumer complaints. Do an in-house audit, if you want to survive in the competitive market.
In most of the organisations we treat consumer complaints with negative mindset.
Line managers will prefer to hide the complaints because they thing it will reflect poorly on them.
Area managers think it will be additional workload and try to dump at the earliest.
Senior managers consider consumers and buyers are idiots. They argue about consumers knowledge base. How much consumer know about their business and product? What we are doing is right. They are doing it from last so many years, consumers are just creating issues without reason. etc etc.
Promoters and Top management is beyond a reach. Call up head office of any company, you just can't talk to them. Their support staff will create an iron wall around them as if they are the most precious thing in the history of mankind and world can't move without them and they are so busy in solving problems created by the God himself.
Do you know the reason? These HOD tell their staff, don't disturb us with complaints we have better things to do? We are HOD for customer service that is fine, but my first job is to see the welfare and mood of my Boss. These designations doesn't mean that this is their job and they will act accordingly. We will do as per our company policy. Consumers views can't change our policy. (... these companies exist for whom...). In democracy, Voters have option to change the government, not the management of companies. Only option is change the company.
EXERCISE: You may be thinking I am joking, pick-up any company and dial the number of Head of Customer care. Tell the receptionist or his personal staff that you want to talk to him because you have some complaint about your product. These people will give you all sorts of directions but very rarely allow them to contact the Head of Customer Service. Try this and have fun.
BEST OPTION: Dial your own company's customer service number. Behave like a common man and see what happens. If you are well-wisher of your company, you will know what to do next....
What is the outcome?
Consumers move to more responsive companies. These organisations suffer. These new companies will start growing faster than the old companies in age and thoughts. Instead of blaming their own action or inaction, these managers and promoters will start blaming government policies, economic environment, etc. They will never blame themselves and their own actions and in-actions.
IMPORTANT: Have you ever met or seen any CEO or promoter who says, I have screwed-up my company or business. I have attended many seminars and conferences, but till date never heard this statement. Do you know why, because Promoters, MDs and CEOs can't make mistakes... but God can.
LEARNING: In every management school they teach how to develop good customer service. But from where these manager learn how to ignore customer feedback. Who are their guides and trainers for these new lessons. They can be either their Bosses, Superiors or Promoters of these companies, because the young executive and manager learn from the environment where they are working.
Do you have any department to register complaint against "Complaint Handling Department." If yes, are these emails and contact numbers accessible to the customers and buyers? If not, why?
It is a well known statement: Boss is Always Right.
Is this TRUE?
Do share your thoughts.
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