Friday, May 20, 2011

KICKBACKS!

By implementing certain policies or practices without doing prior Research and Analysis puts the Company at risk of facing 'kickbacks' which erodes away the very fundamentals of Building, Sustaining and Growing. It may appear insignificant but over the long term, the side-effects are cumulative. At even a 10% loss of revenue each month, it is wasteful 'deterioration' that a new business can ill-afford.
Take for instance, a Cinema Operation where the main activity involves 'over-the-counter' transactions and 'call-in' telephone bookings. The main criteria for CUSTOMER SERVICE is friendliness, attentiveness, accuracy, communication skills, courtesy, promptness, pro-activity, sincerity and willingness of the Staff to 'go the extra mile'. Apart from cleanliness and freshness of utilities and environmental comfort (that includes ambiance) and consistent and constant upgrading of service, the drawing force that keeps the customer coming back is not in in the hands of the Cinema Staff. It is a pure waste of time and effort on the part of the staff to call the customers and enquire why they have stopped patronizing the Cinema for a period of time. Customers may conclude that 'the Company might be in financial problems to behave in such a desperate manner' apart from the feeling of annoyance, to be 'disturbed' in this way! As a means of ensuring compliance is maintained, Tools such as KPI (Key Performance Indicators) are implemented. Failure to fulfill certain individually-specified quotas (in revenue) will mean having to explain in writing why it was not fulfilled. On top of that, the Staff concerned will not qualify for incentive entitlement. Such punitive measures are demoralizing and puts the Company on the loosing end! Synergy will not be derived as Staff will have to fight for 'survival' in 'grabbing' as much of the 'cake' as possible, instead of pooling their energy resources to work as a TEAM and focusing on CUSTOMER-SERVICE SATISFACTION. To further compound the situation, it is part of the KPI requirement that the Staff is also to identify, reach out and introduce himself/herself as the personally appointed Staff-in-attendance. Somehow disharmony takes root when Staff start to think, 'well that's not my customer.........so I should not have to bother to do more than what is necessary!'
When Staff feel that they are being forced to do something that makes no sense because some 'smart alec' cooked up the idea that KPI initiatives is the effective way to derive strong bottom line gains is both frustrating and humiliating! The resulting 'kickbacks' will not be obvious though there will be 'adverse reactions' as Staff constantly 'conspire' to do the things that will 'on the surface' appear to be FULLY-COMPLIANT but in reality, many areas had been compromised. The Management hierarchy will also be affected if Venue Heads are included in the KPI exercise, as assertiveness lessens gradually to the extent enforcement is minimal. Top Management should know better than to lose their hold on the 'reins of influence' with Venue Heads.
It is clearly evident that certain categories of KPIs are NOT applicable in certain types of business operations. As we have read in the Newspapers, KPIs had even been found to backfire when applied to the Judiciary, and that can be said to be a matter of life and death!

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