Unlike a car that is a finished, tangible product when it comes
off the assembly line, a new kitchen is largely an intangible
product crafted on-site from a series of consultations, a set of
blueprints and written specifications. The cabinets, appliances,
plumbing fixtures indeed, virtually all of the materials that go
into a kitchen come from different sources. The tradespeople
involved to fit all of the pieces together are just as diverse:
carpenter, plumber, electrician, sheetrocker, tile contractor,
painter, etc.
As a result, there can be literally thousands of sources of
potential errors in a kitchen project. That’s why the business is
so people-intensive and quality control is such a constant
challenge. Because of this, there can be little dispute that your
company’s greatest intangible asset is the people on your staff.
It’s their skills, services and communication that deliver the
attention to detail that makes for successful projects.
Now, how you organize the members of your staff will determine
their productivityand the positive impact on your bottom
line.
Working Smarter
We are all familiar with
“hard technologies.” This term refers to the use of machines (or
the equivalent) as a productivity replacement for human labor. In
our industry, CAD (computer-aided design software) has reduced the
time to generate a kitchen floorplan and perspective.
But, “hard technologies” can only go so far in an industry where
there are so many layers of human endeavor to produce a new
kitchen. However, there is an alternative technology applicable to
services that can also generate impressive productivity gains.
The concept of “soft technologies” substitutes a division of
labor for one-person craftsmanship. Instead of having your
salesperson consult, design, draft, estimate, close, order,
acknowledge, schedule, project manage and collect on every job,
identify the services that can be performed effectively by another
person who will serve as a competent assistant at a lower
salary.
For example, the hiring of an entry-level design assistant to
take over the duties of drafting, estimating, ordering and
acknowledging will free up the salesperson to sell more jobs. The
hiring of a project manager to take over the duties of scheduling
and project managing will do more of the same.
The results of this division of labor are both many and
profound. First, your staff will make fewer mistakes; as
specialists, they will be working smarter not harder and
individually accomplish a great deal more. Second, your jobs will
go in more smoothly with fewer delays, oversights and hassles.
Third, your clients will enjoy a higher level of satisfaction with
your work and be motivated to recommend your firm without
reservations. Fourth, your company will incur minimal “profit
erosion” during the course of installation. And lastly, your staff
morale will increase dramatically so there will be very little
personnel turnover.
There are several keys to successfully implementing “soft
technologies.” First you need an organization chart to see how the
division of labor interrelates and who reports to whom.
Another key is the use of job descriptions for each position in
the “assembly line” of producing a new kitchen. Consider the job
description as an organizational vehicle to get the most return out
of your intangible assets.
In the personnel recruitment process, it is important to
accurately communicate the nature of the job and thereby avoid
costly hiring mistakes. It is also a handy resource when both
solving quality control issues and planning for growth. Job
descriptions typically list (1) primary duties, (2) performance
standards for those duties, (3) secondary duties, and (4) possible
career paths.
For firms on an aggressive growth track, an operations manual is
needed for effective training purposes. Besides housing the
organization chart and job descriptions, each chapter covers how a
kitchen is produced from point of lead to the collection of the
final check. There should also be a chapter on personnel policies
and benefits.
Service pluses
Without question, having such
a division of labor delivers a higher level of customer service. As
stated earlier, a salesperson with the support of both a design
assistant and a project manager will have many more hours to
develop multiple designs and consult with the client than the
typical competitor. A firm with a separate project manager can give
a job a lot more attention when it is underway than the typical
competitor.
Imagine the value this extra service can provide your client in
the way of satisfaction with the ultimate design, materials
selections and installation. And, imagine the competitive advantage
your firm holds that can be promoted as a result!
Yes, it may cost the client a little more to have a team of
people working on his or her project. But, if you provide your
clients with proof of the values they receive uniqueness of design,
greater attention to detail, fewer delays, quicker response to
service calls, better “fit and finish,” etc. they will pay the
price. Indeed, the best marketers and salespeople in this business
take the time during the client’s initial visit to their showroom
to (1) educate the customer on the “intangibility of kitchens” and
(2) dramatize how their company’s division of labor will produce
the highest caliber job for the dollars invested.
A firm employing “soft technologies” generates benefits for both
parties. The client gains a greater value in service, while the
company gains a clear path to dynamic sales growth and higher gross
profit margins.