East-Coast Traditional Hardware Leader - Vmax Group: Empowering a Team of 150 people for Performance Excellence
Established in 2007, Vmax Group operates a chain of traditional hardware stores across the East Coast, with 7 branches mainly in Kelantan, Terengganu, and Pahang as of 2022. Ever since implementing the VIMIGO performance reward system over the past 3 years, the company has rapidly expanded, opening 9 new branches in just one year!
How did they achieve this remarkable performance?
In its 3rd year of using the VIMIGO system, Vmax Group has opened 9 new branches. This video commemorates the opening of 9th branch in Terengganu in early 2023.
Ms. Puah Say Ling, the Chief Operating Officer (COO) at Vmax Group, brought VIMIGO into the company to oversee the business and operations of the branches.
“Monitoring 7 branches used to take me a lot of time,” said Ms. Puah. Besides daily communication, she had to deal with various issues such as salespersons extending credit to customers, drivers returning late after deliveries, and frequent delivery mistakes.
One of the most challenging situations was when a supervisor provoked others to leave the company. “Perhaps everyone got used to the leisure of working from home during the MCO period. After the MCO was lifted, of course the company wanted to catch up on progress, but employees felt that the company was exploiting them, not allowing them to rest. That supervisor used his influence to persuade others to resign!”
Confronted with this problem, VIMIGO advertisement on Facebook caught Ms. Puah’s attention. Intrigued, she enrolled in an online preview to learn how the performance reward system could help her and promptly subscribed to the VIMIGO system.
vimiGoal
Clear Goal • Output Driven
Ms. Puah began using the VIMIGO performance reward mechanism and applied Shane’s idea of “putting pain on others” to improve everyone’s work attitude and approach.
“For example, salespersons liked to extend credit. I kept reminding them, but it wasn’t really effective. So what I did was I set vimiGoal for my sales team. If a delivery is made, and the payment has not been received, the driver and the accompanying staff are responsible for reimbursing the company for that invoice. This will ensure that the driver will only deliver goods for orders that have been paid. Salespersons will also be cautious not to create troubles for their colleagues. With this regulation in place, I no longer need to remind them.”
As for frequent delivery mistakes, Ms. Puah set a rule such that whenever there is a customer complaint about an order mistake, the driver is the one to be responsible; for mistakes in preparing the order, it is the salesperson’s responsibility.
This way, everyone becomes more cautious and aware of their own responsibility.
“I set the goal for them: less than 2 complaints and returns, and they can earn points. Accumulate more than 60 points, and they are rewarded.”
“Whether the driver will take the initiative depends on how you design goals and commission systems for them. The goals for my drivers and accompanying staff are calculated based on the Delivery Order Amount, which, in turn, is calculated based on orders of which payment has been received. This also addresses the habit of drivers returning late after deliveries.”
By linking the driver’s remuneration to his productivity, the driver will return immediately after delivering goods, because whoever returns first will be able to load the goods and deliver early the next day.
>> Learn more about VIMIGO functions
vimiSales & vimiTeam
Shared Interests • Shared Goals
Even the most refined mechanisms need ‘people’ to execute. Ms. Puah set M1, M2, M3 targets in vimiSales, making it clear that as long as everyone collaborates to generate revenue, there is an opportunity to share company’s profits.
With shared interests in place, the team started to work together to achieve targets. In the first month, they neglected vimiGoal. Although the team achieved vimiSales, they received no rewards because their vimiGoal were not achieved.
“Then everyone became skeptical. Fortunately, two drivers believed in me, thinking that vimiGoal isn’t really difficult. So the following month, they tried to follow vimiGoal. In the end, they got the reward as they achieved both vimiGoal and vimiSales. That’s when everyone began to believe that, as long as they follow the rules set in the VIMIGO app and achieve company’s performance goals, they can be rewarded.”
With clear goals, employees can now define their roles and responsibilities better, contributing more effectively to the company. Employees can plan and arrange their work based on their goals, with data-driven feedback and evaluation of their performance during the process.
Company & Employees Growing Together
Sabariah is a supervisor at Vmax Group. She has been working with the company for almost 8 years. She confessed that when the company introduced VIMIGO, she felt like the company was making things difficult for employees.
“VIMIGO made me feel like an added workload, it was really tiring! Later, as I searched on Google, I gradually understood this system. I also learned about bank A/B, vimiBank B in which there is additional income we can spend without waiting until Raya.”
When Sabariah was first promoted to supervisor, she was unsure of her responsibilities. She felt like she had to do everything herself. After attending the VIMIGO For Team class, she is clear about her job scope as a supervisor and no longer sees VIMIGO as a burden.
“Before the company used VIMIGO, everyone didn’t feel like serving when customers walked in. Now, everyone actively serves customers, striving to promote products and persuade customers to spend even just RM10. I can see the transformation in the team!” Sabariah’s tone filled with passion!
“Previously, there was a misunderstanding about VIMIGO. Now I understand that top management wants us to continuously improve our skills and knowledge while increasing our pocket money. We progress together with the company!”
After Ms. Puah introduced VIMIGO to the company, half of the people left the bus. “I am very happy that those who remained are good apples, and in the second year of using VIMIGO, the company’s performance started to take off.”
In the third year, Vmax Group began integrating the performance reward systems of all branches, with employees from different branches but at the same level participating in PK challenges to stimulate their competitiveness.
“The greatest gain from using VIMIGO is that my team has a sense of purpose, and they are actively engaged in pursuing their goals. They start to believe in the company, and leaders will do what they promise!”
Personal Experience Worth More Than a Thousand Words
In November 2023, Ms. Puah brought the team for the fourth time to attend VIMIGO For Team offline class.
Her favorite activity is the Lego game.
The company also organized internal team building for all 150 employees, with Lego game sessions included. But to Ms. Puah, the game conducted during VIMIGO For Team is extraordinary. The live sound effect, the emotion stirred by Shane, and the competitive environment where different companies fight together create a sense of crisis, forcing everyone to thrive and survive.
“The best training method is to teach the team an empty-cup mentality. Only in this way can the team absorb each lesson more quickly and easily. Each activity is closely related to their real work, helping them understand why the company and leaders want them to do this.”
“We ain’t good at teaching the team, considering there are so many people with three different ethnic groups, each with different patterns. But we know what results we really want, how to design, and how to do it.”
“Let them come to understand and experience for themselves, which is better than us conveying the message. Now they finally understand what VIMIGO is and what it means by ‘begin with the end in mind’.”
Ms. Puah feels gratified with the progress the team has made. “I hope the company’s operations can be more automated, and I can focus on other important things to take the company to the next level!”
This year 2023 is the 4th time that Ms Puah (third from right) has brought her staff to VIMIGO For Team offline classes, and one of the teams won the overall championship.
The Vmax Group team worked together during the Lego game session
The Road to Success with Growth Mindset
During these three years of the VIMIGO journey, Vmax Group has experienced rapid growth, and Ms. Puah as the behind-the-scenes strategist plays an indispensable role.
“I can see that after the company has implemented the VIMIGO system, the team has a better sense of direction, a more positive work attitude, and improved collaboration. Equally important, we at the managerial position can measure and improve employees’ performance.”
“The VIMIGO performance reward system is a great tool to review employee performance, guide them to complete tasks, and enhance their work abilities. Ultimately, the company progresses together with the employees.”
Ms. Puah added, “Many bosses merely buy the system and set it up, ignoring the real purpose of the system. Without mindset and skillset, toolset like the VIMIGO system is useless. It’s like giving you a powerful sword, but if you don’t use the weapon in the correct way, it’s just a waste.”
Vmax Group as a leader in the traditional hardware industry on the East Coast embodies the philosophy of ‘no traditional industry, only traditional thinking.’ We look forward to seeing Vmax Group continue moving towards a better future with innovative thinking and outstanding execution!
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