[Originally published on LinkedIn at: https://www.linkedin.com/pulse/office-diaries-giving-up-till-last-dr-a-k-srivastava/]
Some 16 years back, I retired after 34 years of service. During my career, after spending about a quarter of professional-life in Research & Development, I opted to be transferred to the Business Development wing. Here, I headed business operations of a division which was a pioneer in development of indigenous know-how and production and marketing of a group of 8 speciality-chemicals called catalysts and other chemicals, those were widely used in the Industry. These were used in many process industries, including Fertilizers & Chemicals, Refineries, etc. The other competitors in the fields were big multinationals, having operations worldwide, some having manufacturing facilities in India and others were imported. I will be describing real-life situations and what lessons future managers may learn.
For marketing of ones’ products, one has to compete technically and commercially- lower price, better guarantees, favorable payment terms etc. Sometimes even when one is technically at-par or better than others and price-wise lowest, there is no guarantee that the final decision shall be in his favor. I cite an example, when a prestigious order of supply of a large quantity of High Temperature Shift (HTS) Catalyst to a very large fertilizer plant in Western India was at stake. Our catalyst had proven track records of decades in similar size and similar-technology based plants in India and abroad, and was technically better on many other parameters than other competitors and price-wise lowest too. Under the above background, our top management was almost sure of that order. In anticipation of the same, in order to take advantage of the supply-position, the required raw materials were ordered in advance, with huge financial commitments.
Through our business-intelligence, we came to know that the decision in our favor is under a cloud and probably the order is not coming to us. What happened was that the plant had an old stock of about 35-40% of HTS catalyst-lot, about 10 years old of foreign-origin (also from one of our competitors) and the purchaser’s store was keen to exhume the stock, saving both on less cost-outgo and releasing large space in the stores. The purchaser’s top management was seriously considering the option, as it was plus-plus to every body / department. I was bent upon not letting the order slip at any cost, keeping in view the prestige involved, financial commitment for the raw-materials. Our technical departments quickly raised up their hands and refused to give guarantees for the performance for the Catalyst, with a partial lot, of about 35-40% quantity from 10 years old competitors’ material. They had never faced such an eventuality in the past and had no experience and were not eager to take risk for lesser order-value.
When our regional head was also not sure what to do under the situation, he asked me to talk to the Chairman of the company, who had enormous powers to take decisions both technical and financial and over rule, if required. But, before going to ask for the Chairman's appointment for an one-on-one meeting, one needs to be very sure and ready to reply to all sorts of questions. It had great risks involved, as there was no such precedence in our country or in the industry, anywhere. I did thorough home-work, asked the purchaser to give a sample of the old imported catalyst, got the samples tested in normal and accelerated conditions to find- out residual life, collected the performance and failure-history of the competitors’ material in the country and abroad, the likely demand and supply scenario in next 3-4 years in the country, our inventory position, financial-outgo and profits if partial order comes to us. I had a three hour’s one-on-one meeting with the chairman at his residence and finally got his formal approval in my hand for the partial-order of 35-40% less quantity.
It made a history of sorts. The partial-ordered-catalyst lot was supplied in time, commissioned, and performed for more than 6 years (guaranteed for 5 years).
One should not give up until the very end and keep trying, with all resources at hand and try to find a solution.