For any company, 30 years is a long time to be in business
or any company, 30 years is a long time to be in business. Along the way there are bound to be challenges and obstacles that prove too much for less resilient firms.
A longtime survivor is PT Columbindo Perdana (CP), better known as Colombia Cash & Credit. In March 2012, the pioneering retail company dealing in electronics and modern furniture will celebrate its 30th anniversary.
Established by Darwin’s father, Leo Chandra, the company was hard hit during the financial crisis of 1997-99; 20 of its outlets were burned down during the political turmoil and Leo had to start again almost from zero.
“To reach the age of 30 we have gone through a lot of things,” said chief operation officer Darwin Leo.
Darwin believes that the most important part of operation excellence is human resources, especially the “front liners” of customer service who have to directly deal with customers and must handle between 50 and 60 customers every day.
“We want the front liners to give the same high quality service to them,” he said.
While it’s not easy, Darwin believes that it can be achieved and he has prepared a number of necessary steps. First is to develop a sense of belonging among the approximately 9,000 employees.
“A sense of belonging to the company is extremely vital,” he said, adding that steps to secure that loyalty also included the company’s incentive scheme and clear promotions.
The employees are also given internal and external training to enhance their expertise.
The international business management alumnus of Aoyama Gakuin University, Tokyo, acknowledged that it is not easy to manage people.
“There is no fixed formula to manage humans,” he said, noting that multiethnic Indonesia makes for a unique workforce, with different approaches to their management.
“Managing people in Java is very different from those in Kalimantan or Sumatra.”
Darwin gives leeway to each regional office in its human development programs. “The head office only provides guidelines,” he said.
Operation innovation
Surviving such trying times, and reaching a milestone of 30 years in business, is no reason to be complacent, Darwin says. In fact, the company continues to innovate with its management approach, and is being assisted by Singapore-based consultant AS Louken.
“From the beginning of 2011 we have implemented a program called operation excellence in line with Colombia’s rejuvenation,” explained Darwin.
There are many reasons why the rejuvenation is needed. First, competition today is tougher than in the past.
Colombia, according to him, has its own unique features, as a company involved in both retail and financing sectors.
“We face a two-pronged competition as currently there are many multi finance companies here and also available are lots of credit cards for various kinds of purchases, including electronics and furniture,” he said.
There are also now many retail competitors and technology has developed very rapidly requiring fast decisions.
“We don’t want to be known as merely the pioneer, but we also want to continue to exist and become the customers’ first choice,” he said.
Branching out
One of the steps to expedite the decision-making process is to divide the operation area into eight regions with greater autonomy. He said formerly all branch offices had to report directly to headquarters, making for a very bureaucratic system. Starting last year regional offices became responsible for the branch offices in their areas.
“We have provided them with sufficient rights,” he said.
By dividing the operations into regional authorities, the head office has become more focused on formulating short and long-term strategies. “Today we are not too involved in the opening of new outlets because most are handled by the regional offices,” he said.
Colombia is also increasingly aggressive in expanding its business. Last year it opened 50 new outlets throughout Indonesia, for a total of about 400.
“This year our target is to open another 50 or 60 new outlets,” he said.
Darwin emphasized that the company has huge potential to develop further as awareness – one of the vital assets – is quite high. There will be further positive results, he said, once this asset is combined with excellent service and marketing strategy. “We are always striving to make the most of our own potential,” he concluded.
Name: Darwin Leo
Date of birth: April 3, 1975
Marital status: Married
Education:
• 2001: International Business Management, Aoyama Gakuin University, Tokyo.
Experience:
• 1999-2001: Okamura Co. Ltd. Tokyo, Jepang
• 2001 – present: Chief Operation Officer, PT Columbindo Perdana.
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