Sunday, July 12, 2015

Mumbai Dabbawalas - A perfect strategy

A company's vision is linked to the strategy that an organisation follows. The strategy is the foundation for the performance evaluation. Mumbai dabbawala, an incredible organisation with 5000 semi literate "Dabbawalas" which  literally means box delivery man caters to 200,000 people everyday with 100% accuracy. Not a single error in 120 years.  They have been in business for more than 120 years with a vision to serve its customers at an affordable cost-catering to all sections of the society. With the mission of "always delight the customer", they work in an old fashioned way where each employee is equally motivated and each one is an entrepreneur, negotiates with its own customers.

Strategy : Their strategy revolves around the skill set of the employees. Since their employees are illiterate, with no knowledge of technology they use a colour code system to differentiate the boxes which is in alignment to the delivery system. They use bicycles, carts and trains to deliver the boxes to the destination. The local train system which is the life line of Mumbai is packed at peak hours, when the dabbawalas commute, the train delays or weather conditions nothing has ever stopped a single dabbawala to make a single delivery in time. With 100% accuracy, minimum wastage, self motivated employees (all 5000), extraordinary customer satisfaction - it is a business model discussed in all management schools and is a case worth reviewing.

Performance Evaluation : 100% retention rate and 0% attrition rate implies that the objectives of the employees and the organisation are in perfect sync. How else can they achieve maximum efficiency while maintaining high quality standards. Their is no hierarchy in this organisation. One could say their structure and theory reflects that of socialism, where the profit is shared equally among employees. Their continuous timely reviews, feedback and performance evaluations keep the goals aligned. 

A group of illiterates who serve thousands of office goers everyday, deliver with 100% precision have taught many managers of companies that such as Coca-Cola and Daimler, have been the subject of many research papers and discussions. With exceptional service delivery they have left no scope for any glitches or competition. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.