holidays for a lifetime service excellence - why & how? m&m’s general management program...
TRANSCRIPT
Holidays for a Lifetime
Service Excellence - Why & How?
M&M’s General Management Program
at
IIM Bangalore
R. Santhanam
Mahindra Holidays
December 11, 2003
Holidays for a Lifetime
Case Study 1
An entrepreneurial start up in 1962– Grown Top Line steadily @ 36% CAGR since then
– Biggest customer of: P&G, Disney, Gillette & Hollywood
– Over 10 million customers/ day
– One of the largest - real estate developer / energy consumer /
employer
– The largest, The Best ,The Most Profitable & The Most
Admired.
Holidays for a Lifetime
An entrepreneurial start up in 1976– Grown Top Line steadily @ 36% CAGR since then
– At one time biggest customer of J&J for a high tech
product. Today largest supplier.
– Over 3,600 customers/ day
– The largest, The Best ,The Most Profitable & The Most
Admired.
Case Study 2
Holidays for a Lifetime
Who are they?
Holidays for a Lifetime
Case Study 1
Wal-Mart –Bentonville Arkansas– Focused Low Price Retailer
– US$ 260 Billion Fortune No.1
– Shocks & Awes - P&G, Disney, Gillette & Hollywood
– The largest, The Best ,The Most Profitable & The Most
Admired – Retailer.
Holidays for a Lifetime
Aravind Eye Hospital Madurai– Focused on “Cataract Surgery”
– 1.4 Million out patients / 200,000 surgeries in 2002
– No. 1 in Intra-ocular lenses.
– The largest, The Best ,The Most Profitable & The Most Admired – Eye
Hospital
Case Study 2
Holidays for a Lifetime
What’s Common to Wal-Mart & Aravind?
Holidays for a Lifetime
What’s common?
Both are enterprises in “Services” that have “Excelled”
• Created “winning” positions.
• Focused Businesses with Clear Vision.
– Wal-Mart: Reduce Cost of Living for Customers
– Aravind: Sell good eye sight. There are millions
of people who need it.
• Developed Service Strategy to Achieve the Vision
– Chose Segments
– Put together appropriate “Activity Systems”
• Built Ordinary People into Extraordinary Teams
Holidays for a Lifetime
Manufacturing Organisations&
Service Organisations
In theory, there is no difference between theory and practice.
But in practice …. there is.
Holidays for a Lifetime
Fundamental Differences
Manufacturing
– Manufacturing & Marketing
separated. Coordination at
higher levels
– Can Store / Carry Stock
– Purchase Decisions BINARY
– Segment on Needs
– Low Variability. Possible to
HALT & Correct
– Scale Economies at Operating
Unit Levels
– Assets Important
– Customer is Consumer
Service
– Manufactured & Marketed
simultaneously. Often by the
same person
– Cant Store. Perishes.
– Purchase Decisions CONTINUUM
– Segment on Expectations
– High Variability. Impossible to
HALT & Correct
– Scale Economies at Network /
Company Level
– Assets & Information Important
– Customer is co-producer too
Holidays for a Lifetime
Adapting to the intrinsic differences
Service Strategy– Whom to serve?
– What to promise?
– What price?
– What cost?
Service Vision– Outside In
– Inside Out
Service Operations– Creating an “Activity
Set”
Service Teams– Selection
– Empowerment
– Motivation
– Supervision
Holidays for a Lifetime
Summing Up
• Create “winning” positions.
• Focus Businesses on the Vision.
• Develop Service Strategy to Achieve the Vision
– Chose Segments
– Put together appropriate “Activity Systems”
• Built Ordinary People into Extraordinary Teams
Go ahead & create you own
Wal-Mart or Aravind!
Holidays for a Lifetime
Thank You