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Jewellery

Richa April 2, 2019

Industry

Jewellery

Strategic Service offered by Finesse

Virtual CEO

Issue

Loss making for the last 4 years

Genesis

Production was at 40% of installed capacity
High rejections of the final product by quality at customer end
High wastage
Unacceptable Overtime
Delayed deliveries
Sales team with low morale and poor confidence
Absent in the critical “to be visible” brand spaces

Action Points

Started with a deep dive exercise and used the force field analysis with the team to create the strategic direction

Branded the exercise “OIBDA” positive and launched the project with high visibility and excitement amongst the team

There were 4 key projects that were selected basis the research which were to be attacked to become “OIBDA” positive

  • Production
  • Sales
  • Review Mechanism
  • Brand Presence

These key projects were handled by CFT’s (cross functional teams) and were reporting to the Finesse CXO

There were milestones and rewards assigned to the output expected by each team

Production

Structural changes to avoid duplication of a job in the design team
Defined the product development process
Trained team on the Product Development process and also upskilled them to analyse reports and escalate
2 CAD designers were assigned to each designer to reduce the design time
Created a closer alignment between the sales team and production team and set up check points on the GANTT chart at different stages of production
Outsourced noncritical roles
Team incentives were announced wherein production targets were given to the entire factory. The pay-out incentive was “complimentary leaves”
Quality metrics were there, they were implemented more stringently to keep rejections within the acceptable level
Productivity norms were redefined at piece rate to trim overtime

Sales

Defined the sales strategy basis customer segments, product portfolio and geography and the required sales process
Built the Sales Organisation from hiring, to upskilling, grooming etc.
Goal setting, methodical drill down of targets supplemented with co creating achievement strategy for each team member
Marketing strategy defined – online and offline
Built the brand through PR and participation in elite events to create perception of a premium brand
Weekly review and upskilling of sales team
Funnel management
Launched attractive, timely, transparent incentives. The key was transparency because even as a salesperson closed the sale – he / she knew the incentive.
Incentives were paid timely
Greater sensitivity around pricing – with emphasis on margin. A pricing committee was set up
Sales team never ventured in the local market. The Organization makes traditional jewellery that the city is famous for. They thought that the city is flush with the type of jewellery they make and there will be no buyers. With constant persuasion the Finesse CXO made the team try the local market and the very first day they made a huge sale. This changed their mindset and inspired a “can do” attitude

Review Mechanism

Established a review rhythm so that the team and management knew what was important. What needed to be reviewed as. It helped drive results as “what gets reviewed gets done”
Created a ritual around the review process

Mindset

Outsourcing of non-critical processes
Participating in events of international repute to build premium brand
Tie-ups with leading designers to explore untapped customers
How to say no for a low profit margin sale
Tourists and retailers buy “local jewellery”

Result

Sales more than tripled in a year
Production doubled with same resources and infrastructure
Bottom line improved phenomenally because the team went for highest margin sales irrespective of the geography

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