Researchers love it, administrators hate it. Some call it
the parallel economy. Others refer to it as the unorganized market. But my most
preferred definition is the ‘market of jugaad’. True to the spirit of ‘survival
of the fittest’ theory, the system or the lack of it has been around for long.
And in order to prove its worth, it has not just survived, but has thrived.
My objective here is not to rationalize or judge the
existence of this phenomena, on either the socio-economic parameters nor on
moral-ethical grounds. I am just presenting the observations and amazement of
an outsider.
I recently accompanied a friend to a car-repair shop. A
prior appointment was taken, all stakeholders were informed and the date, time
& venue were fixed. For me the visit was like attending a refresher course
in business management, all in the span of a couple of hours.
We were asked to park our vehicle in a public parking slot. This was totally different from the authorized automobile service stations I visited in past. After a few phone calls and follow-up calls, the representative of the ‘market
of jugaad’ came and met us. He parked his well-maintained motor-bike and walked
towards us with a smile. He was dressed neatly in imitation clothes (like
imitation jewelry) with logos of well-known brands. Over next few hours we
realized that this man, who has taken minimal formal education, is actually a
master of his trade.
Offered cost
effective solutions
He examined the vehicle. One of things required was a change
in the headlight. The outer cover had become almost opaque over the years and
thus needed a change. While the customer was willing to invest in a new set,
our SME (subject matter expert) refused. He removed the cover and gave it to
his junior for a thorough clean-up. Needless to say we saved a few grands all
thanks to a detergent and a brush.
Knew the product well
Over the next few hours, our SME examined and corrected all
parts of the vehicle. From seat-covers to stereos, from engine parts to
wheel-alignment, he knew everything about everything. At times I wondered if a
trained automobile engineer knew his products so well.
Excellent marketing
skills
While he saved our money on one side, he suggested multiple
other changes. From small upgrades to necessary replacements. He sold and we
bought.
Strong network with
peripherals
Our protagonist maintained a healthy inventory of goods and
supplies. Whatever missing could be easily procured from neighboring shops.
Even the parking lot where we were parked, was a part of this syndicate,
providing a work-space.
Customer relationship
management
I have already talked of our protagonist’s marketing skills.
He was adept in customer relationship management as well. He learnt that
one of us wanted to move out for some time. On hearing this he promptly offered
his own motorbike. This was nowhere a part of his job description, but
certainly helped in raising our ‘customer satisfaction levels’.
Apprenticeship
They say one should start early if one wants to travel far.
The perfect example was the young assistant of our SME. This young guy, maybe
in his mid-teens, was undergoing his ‘on-the-job-training’. His assignment of
the day was to clean the car headlights. And I must mention, he did it with
complete sincerity. However the inexperience showed when the corner of the
glass chipped off.
Focus on
profitability
At the end of it all it was time for us to leave. The
vehicle had undergone a few changes, some planned, some unplanned. Our
protagonist promptly showed us the printed price of each spare part used. And
added his labor charge. He even gave us a discount on the overall purchase.
Even though we knew he had earned more than his labor charge, we didn’t object.
As we drove back, I couldn’t stop myself from wondering. Basics
of business management are simple and easy to understand. They were demonstrated well by this man, whose name will never get published in any business magazine or
training certificate. Yet, in our large corporate world, many of us struggle to
figure out these principles from behind the guides of work cultures and
processes.