Quantity vs Quality
Rapid growth of the company threatens to reduce service quality
Peter built a company over the last five years providing services which holds a significant market share. Peter already has many loyal customers and because his services were really top quality his client base started to grow. After some time Peter's company wasn’t able to provide good services to his clients due to bigger demand. Providing quality services decreased and loyal clients felt it. Some of them started to search for new suppliers and some found better suppliers and made the change. Peter's company did not make as much profit as before, because as everybody knows you cannot build a business on occasional customers. After some time Peter had to fire some employees, cut back on company growth and identify the mistakes to never repeat them again.
What did he do?
Peter found his mistake. He prepared his company for growing demand by implementing an information system. He thought about standardization of processes and to automate some routine processes. He stabilized his company and prepared for providing services differently according to advice he got from his clients. In his CRM system he can divide customers by how much they contribute, so clients who contribute a lot get extra care. Thanks to a good system, Peter is able to provide top quality of services to every client. No matter how big or important they are.
Thanks to the system that carries out a huge part of the process and not Peter's employees, his employees are happier because they do not have to deal with boring routines. He provides quality services for every single customer. His company is stable and the number of employees also stays stable. There wasn't a need to hire new people because much of the work is done by the system. Main benefit is that Peter gets a bigger profit.
QUIZ: What mistake did peter do?
1. Peter wasn't prepared for bigger demand and his employees weren't able to provide services in the same top quality as before.
2. Peter invested too much money into cars. His garage looked like formula 1 Box.
3. Peter bought a trip to The International Space Station (ISS) and he cannot manage his clients from this far.
1) You're right! Even though Peter spent a lot of money when he bought the Formula One Team, the main reason why his business started to fall was that he wasn't prepared for bigger demand.
2) Wrong answer. Peter took a trip to ISS and then he couldn't prepare his employees for bigger demand.
3) Wrong answer. He didn't buy a trip, he bought ISS and after NASA stopped space flights, he could travel to cottage[ISS] only with the Russians. Too Bad for him – he doesn't speak a word of Russian. The.main reason why Peters‘business started to fail was bad preparation for bigger demand.