Page 188 - Successful Onboarding

172 • Successful Onboarding

Given the narrow deviation, Mark did not understand the point of this
exercise. It seemed like he was just spinning his wheels, and as a result,
he felt bored and unhappy (except for the incoming fresh ice cream). He
grew terribly disillusioned with the prospect of graduation and work at big
companies. He even found himself rethinking his career choice altogether.
Everything changed one afternoon when Mark was delivering the
report to an executive who stopped and asked how the internship was
going. With little to lose, Mark expressed gratitude for the job but frustra-
tion with the focus of his work and the report he was preparing. The exec-
utive, Steve, quickly got the point and invited Mark to sit down for a talk.
As Steve explained, the Häagen-Dazs brand was defined by quality in every
regard and at levels unheard of in ice cream category. This quality focus
enabled the company to charge a premium price to its customers (largely
grocery chains) and get the shelf space it needed to drive growth. To
execute on its strategy, the company needed to ensure a top-quality prod-
uct and top-quality experience—for both the customers (e.g., the grocery
store retailing companies) and the consumers who ultimately enjoyed the
product. In addition to the best flavors and highest quality ingredients and
recipe, Häagen-Dazs had to ensure that every part of the supply chain
cooperated in delivering excellence. The company had to deliver the right
flavors, in the right quantities, to the right markets, and at the right times.
It was unacceptable to send product that had been damaged or that had
dropped even a few degrees and refroze in transit from factory to distri-
bution center and distribution center to grocer’s freezer.
That was not all. As Steve related, the company had to convince retail-
ers to support its premium brand positioning in its merchandising, care of
the product, and final provision of the product (adding a freezer bag to
every consumer’s shopping bag). In addition, the company preferred its
stores to avoid discounting the product’s selling price so as to help main-
tain its premium brand. The brand, in essence, comprised a core operat-
ing requirement and central tenant for the company’s strategy to grow
market share, maximize profit margin, and provide investors with a high
return on investment. Steve went on to relate actions he had taken in the
course of the summer when noticing tiny inflection points in Mark’s
reports, and he also reported how people had lost their jobs over the years
for neglecting seemingly minor production imperatives. The bottom line:
Operational excellence mattered. Analysis of the numbers Mark provided