FOOD FOR THOUGHT 30TH JULY 2020

THE NUGGET
Quality in a service or product is not what you put in it, it is what the customer gets out of it
– Peter Drucker
EAT- IN
Production cost of bad products is five times the cost of good products. Companies that produce bad products not only will not survive in this competing world, but they pay exceedingly more for the production and marketing of their goods. The greatest cost of bad product is loss of reputation. Bad reputation will quickly cripple organizations and knock them out of business. To stay in business in this chaotic world, organizations must meet four competing demands of the society:
Maintain quality: Quality of service and product will keep any organization competitive. Whether you are operating a school, medical facilities, banking, cleaning services, agribusiness, oil and gas, telecoms and so on, the only connecting thread between your organization and the public is quality product or service.
Service: The way you package your product, the way you attend to your clients and the business environment are sometimes more important to customers than the product itself. By not providing good service to customers, you force them to penalize you by taking their business elsewhere.
Innovation: Innovation is the generation, acceptance and implementation of new ideas, processes, products or services. It can occur in any part of the organization, and it can involve creative use, as well as, original invention. Innovation is the key to increased service, quality, and productivity. It facilitates response to changes in external or internal conditions of the organizations.
Productivity: Excellent service, high quality product and innovative management approach will normally lead to high productivity. Also, the quality of personnel, machines and equipment, materials, capital, facilities, energy and time, will determine the level of productivity.
The products of yesteryears no longer satisfy today’s consumers. With constant fierce competition, new technology, and demanding consumers, the need for quality products, good service, and innovation will be the survival mechanisms. Most successful organizations are those that view excellence, quality, and service as a journey, not a destination.
TAKE AWAY
People do not buy goods and services, they buy relations, stories and magic
– Seth Godin

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