My experiences about Cranfield MBA ..... and beyond

Tuesday, August 14, 2007

The Inverse Pyramid

After having worked in the industry for good 15 years, last month I started afresh - this time in management consulting sector. While I undergo induction / on-boarding, last week I was called for supporting a team working on an assignment in Retail sector. No, I am not discussing their assignment here nor the client. Instead, I share an insight which perhaps no book will ever capture. I chose the same words what my colleague Andy called it - the Inverse Pyramid.

When we walked in the HQ of this major retail player, we found it to be absolutely basic, frills-free, low profile office. It did not come across as the HQ of a global multi-billion player and this set us talking. This firm believes in the fact that their customers who walk into their stores across the country are their reason for existence. And it shows. Very simply - the focus is on the stores - it is the stores which need the best of look and feel; not the HQ.

This made me think - not just UK, even in India I have seen few retail players who have plush, hip HQ's but almost basic (if not down trodden) retail stores. It is as if the retail stores exist for the HQ rather than the other way around. All attempts to cut costs began with the stores while the management, sitting in their ivory towers, spent money to get those latest laptops and mobile instruments, constantly spend on reorganising work stations and layouts, flying around in business class for even short haul trips, etc. The list goes on.

This leading UK retailer has, perhaps the swankiest of stores which give a feel-good factor to anyone walking in. I am sure it keeps bringing back repeat, loyal customers - who are the focus. This is the inverse pyramid - where the organisation exists for its customers; an organisation who would rather invest their funds on its customers than its own management team / HQ.

I hope someone is listening.

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