With the American Economy in shambles, many large organizations had to suffer in many forms. One of the most common form was downsizing of budget & pending contracts. The same happened with a software giant of America.
Their budgets were horribly downsized and they had to cancel most of their onsite trainings which constituted a major part of their operations. To counter this, they decided to take things to a digital level.
The results were astounding
A software company (name not allowed to be disclosed), made big bucks and had a huge budget to go with the ongoing expenses. When recession hit, the management decided to cut back on the budget. The cut was drastic as the original amount of the budget was downsized by around 95%.
The company’s Operation VP was able to cancel most of the pending contracts but a few of them were just not up for cancellation. This added up with the fact that the company had recruited most of the ONSITE trainers who were to go to the client’s site for giving out training already.
The recruited people had left their former employees in the hopes of getting experience in the field of ONSITE training which is considered to be one of the most difficult trainings ending up yielding high returns.
The problems were furthered when it was informed by the Management of the Company of their unwillingness to spend the budget money on the ONSITE training. This led to a number of problems, some of which affected the company’s goodwill and its recruited personnel for the ONSITE work.
To counter the above problems, the following measures were undertaken:
The management of the company was contacted regarding the budget cut. It was an uphill battle which took more than 3 months to get resolved.
The number of recruited personnel to go to the client’s site was reduced to a great extent. That being said, the more experienced employees of the company were decided to be sent for the ONSITE training.
A portal was set up online to help clients with the trainings and also to substitute the previous method of physical ONSITE training. The portal consisted of complete manual & along with it the company also provided call centre facilities.
Social media websites such as Facebook and LinkedIn were essentially used to counter the problem of client diversification. With the help of the mediums the needs of clients were served in an optimal manner.
Following things happened when the company decided to take the above matters:
- Budget was increased from 5% to 8%.
- In the long run, the company was able to mitigate the effects of recession.
- Social Media also helped the company in lead generation, thereby increasing the number of clients.
- Company was benefited and showed an increase in profit due to reduction in costs.