A Marketing Example
Taken from the book How Businesses Really Work:
In the early 1990s in the City of London a unique telesales company was failing to meet targets, suffered from a high staff turnover, and had such a variable income that the whole operation’s stability was threatened.
The owner-manager was something of an administrative genius. In the days before the internet or the advent of commonplace desktop computers, he had devised a paperwork system to track and control complex commercial dealings which was both simple and inexorable in its efficiency. The company’s product was a portfolio of financial assistance, tailor-made to suit a client’s needs. An effective sales patter had been developed and was being employed, and, when it was used correctly, it had remarkable success. The whole business could potentially have run like a well-oiled machine.
But income was shaky; staff were dispersed and in some cases out of control; volume of production was puzzlingly low, despite a healthy commission system. The owner-manager was frantic - he realised that something needed to be done, but had no real idea as to how to proceed. Bills were coming in - rent in the City of London was high and other expenses difficult to maintain. Unless something fundamental happened fast, he felt that the business was doomed.
It was turned around in two days.