Jarinthorn Patamasatayasonthi, Index's vice president of marketing, said yesterday that planning for the reorganisation started early this year when it engaged consultants Entrepreneurship Development Centre (EDC), a Triple Nine Alliance Co Ltd training service provider.

Management at all Index units have identified problems in customer service and are working to find solutions.

The company is also working with EDC to develop a training programme for more than 1,000 Index sales staff nationwide.

The training courses, which kicked off yesterday for 45 headquarters employees, will run for a year.

Training emphasises staff appearance and attire, manners and the providing top-quality service to customers.

Jarinthorn said competition within the furniture industry was changing.

Previous emphasis was on quality products and design. Today, companies also compete on service and creating long-term ties with customers.

The sluggish property industry has effected the company. Also, oil-price hikes had resulted in a 20-to-30 per cent increase in operating and production costs.

Nevertheless, the company had increased its prices just 5 per cent to maintain customer loyalty, Jarinthorn said.

Index expects no sales growth this year, down from an average growth of 20 per cent in past years. But, first-half growth this year may be 5 per cent higher than in the same period last year.

Although the property industry is sluggish, Index said the downtown condominium sector remains popular. Therefore it is tailoring products that fit into smaller apartments.

It will launch new designs within the next two months.

Index is just one of several companies that have turned to staff-training gurus to boost business.

According to Wacharawan Ritthironk, chief executive and managing director of Triple Nine Alliance, companies need tailor-made staff training programmes to succeed.

The training business has boomed in the past three years thanks to three things - a desire to reduce corporate tax payments, create worker loyalty and help staff prepare for restructuring.

She added that the government allowed companies a tax write off of 1.5 times the cost of training. This is aimed at improving staff potential.

Many of Thailand's corporate titans - such as Advance Info Service Plc (AIS) - have restructured and need to prepare staff for changes, according to Wacharawan.

Companies are also looking to reduce staff turnover. Providing training creates a staff-company bond, she said.

EDC prepares tailor-made corporate training on an individual basis, first learning about company problems by conducting in-depth research, including on-site surveys and interviews at all staff levels.

EDC is working with AIS on a leadership course and with Thai International Airways cabin crews.

EDC is one of eight business units of Triple Nine Alliance. Wacharawan declined to reveal revenue for last year, but said that they grew 30 per cent from 2004. This year's target is 50 per cent growth.

Nitida Asawanipont

The Nation