The following is a refreshing account of some well earned success achieved by Digital Island Communications in New Zealand. DI are a top ICT company that provides internet & data services, toll calling, phone lines & systems, mobile phone services, conference calling, phone cards and fax-to-email services. They were also winners of the Deloitte Fast 50 “Fastest growing technology company in 2008”, and “Fastest growing telecommunications business” award in October 2007.  Ruth Le Pla [1] in NZ Business magazine writes that in a slowing economy DI was losing a lot of revenue and to overcome this it worked at improving its total operations and closely examined its underlying business model.  As a result instead of retrenching this led DI to make the following improvements:

• Carrying out a re-branding exercise in order to put a new sparkle into its image,
• Examining the products offered and eliminating poor performers,
• Dropping some suppliers and picking up new ones as appropriate,
• Proactively offering key customers better prices i.e. reducing costs!
• Assigning additional staff to focus on loyal customers,
• Improving service levels,
• Leveraging technology by implementing sales-force software and efficient document management systems,
• Implementing cost reductions by targeting areas where the greatest impact and maximum gain would be achieved and not by “nit picking”,
• Managing debtors closely by following up personally on the 21st of the month.
• Communicating well internally so that staff were always in the picture,

As a result of these actions Digital Island achieved more than 25% revenue growth for the 2009 financial year. Blair Stewart of Digital Island said that “When times become tough, you need to make better decisions faster than ever,” and offered the following advice for achieving growth:

• Stay in touch with cash flows.
• Add value to customers.
• Personalise offers.
• Develop ways to up-sell.
• Carry out contingency planning.
• Work closely with key suppliers and banks developing a relationship of openness and honesty.
• Guide customers through sales processes and keep them informed, customers value the experience just as much as they value the result.
• Don’t read newspapers. They spread negativity.
• Be positive. (The attitude projected by management teams has an incredible effect on an organisation.)

[1]  Le Pla, R., (2009), The tough get going!, NZ Business, Vol 23, Iss  6, pp 24-28, Adrenalin Publishing Ltd., Auckland