Goals Going Astray

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Excerpts

BestValue was a professionally managed company providing automotive repair and maintenance solutions across the country. Started in 1999 and headquartered in Pune, it had 53 service centers manned by an average of 15 personnel and equipped with state-of-the-art facilities as of late 2010...

The auto repair industry comprised firms involved in providing repair and maintenance services for automotive vehicles...

BestValue enjoyed a healthy market share, customer loyalty, and financial performance in the initial eight years of its operations. However, with the increase in the number of players in the market since 2007, it found the competition hotting up...

Concerned about the declining average revenue per service outlet, Gupta recruited a new marketing head, Ashwath, hoping to increase the company's revenue... Prevent 'em Campaign Thus Ashwath came up with a new scheme for revamping the operations and employees' performance of BestValue. The new scheme was billed as the 'Prevent 'em Campaign'. As part of the campaign, he decided that BestValue would offer its customers more than what the customers requested by providing technical suggestions on other necessary service issues which the customers might not be competent to know about...

According to the proposed plan, for every hour worked, the service advisors would get a basic salary of Rs. 12/- per hour which they would receive for regular attendance at work. The daily target for service advisors was set at 10 customers per day...

However, this arrangement had its downside. Some customers complained that they were unhappy with the hard sell approach adopted by the service provider. Initially, the management was not too worried as such customers were few in number...

Raju had joined the Bengaluru unit of BestValue as Service Advisor in March 2010. After completing a diploma in mechanical engineering, he had worked for a local car dealer as a service station supervisor for about two years in his home town Hassan...

Back in the head office, Gupta was livid when he reviewed the report of the inquiry committee. He was more incensed when someone brought to his notice the news clip regarding the company that had appeared in that day's newspaper...

Exhibit I: The News Clip Getting the Worst from BestValue
Exhibit II: Earlier Salary Structure of BestValue Service Employees
Designation: Service Maintenance Officer (Qualification- Diploma/ Degree Engineer)
Exhibit III: Present Salary Structure and Component-wise Break-up
Exhibit IV: Performance Linked Incentive Plan

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