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Archive for June 14th, 2017

An interesting example of how a ticklish situation was turned into an opportunity to impress and gain business advantage.

Udaivilas Oberoi

From HBR March/April 2017:

M.S. Oberoi and the front-line obsession

Successful founders understand the economics of customer loyalty. In their early days they know every customer by name. Keeping that up becomes impossible as they grow, but nevertheless they remain obsessed with making sure that someone is looking out for every customer at all times.

Few business leaders have developed this attention to the front line as effectively as M.S. Oberoi, the founder of the Oberoi Group, a chain of luxury hotels in India. Oberoi obsessed about every detail in his hotels that might affect the customer experience. Even in his eighties he kept visiting his hotels to make sure employees were getting everything right, and in doing so he established a culture by which all employees shared in his obsession.

Poornima Bhambal, the assistant manager of the front office at the Oberoi Udaivilas, in Udaipur, described for us the company’s empowerment program, which encourages all employees to do what it takes to delight customers and even gives them access to small amounts of money in order to do so. “We love to surprise and delight guests with little gifts and niceties,” Bhambal said, “and the empowerment program allows this to happen.”

One example, related to us by Vikram Oberoi, a grandson of M.S. Oberoi who now serves as the group’s CEO, was what happened when the staff at one hotel discovered that an American family occupying two rooms was taking all the toiletries — twice a day. This seemed a bit much to the housekeeping staff, and the manager’s first instinct was to go to the family and politely point out that they probably had enough toiletries.

But instead, says Oberoi, after some coaching, “He created a basket of soaps and shampoos and oils used at the hotel’s spa, and wrote a note that was signed by the housekeeping staff. The note said, ‘We notice you like our toiletries and wanted to give you a supply you can take home and share with friends.’ The family loved this. They wrote us after, saying that we were the most fantastic hotel and that they would tell all their friends to visit. That’s a wonderful business result from the investment of a box of lotions!”

Image of Oberoi Udaivilas from theholidayindia.com

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