Firm Focuses on the Long Term After Katrina

METAIRIE, LA — In business, Randall L. Shaw has certainly encountered his fair share of obstacles.

Shaw, president of Nordic Kitchen & Bath, endured Hurricane Katrina, which flooded his business with four inches of water. While this challenged his firm’s resolve, it also set the stage for an almost equally challenging landscape, as many opportunists set up temporary kitchen and bath shops around New Orleans shortly thereafter.

Now, as an economic “hurricane” sweeps through many industries in the U.S., he finds his firm challenged once again. But Shaw – along with Michael Haase, CKD, and five other staff members – is intent on doing what he’s done since the firm’s inception nearly 14 years ago: weathering the storm.

“Having a disaster plan allowed us to reopen quickly after Hurricane Katrina, and it enabled our business to withstand the immediate after-effects,” he reports. “Although the procedures we had in place kept losses of time and money to a minimum, we realized that there were issues we hadn’t taken into account. This prompted us to revise and improve our disaster plan for the next time.

“We’ve always been a very technologically advanced company, and doing such high volume after the storm required us to add new software to track our products, which made us more organized and efficient than ever. It forced us to revisit our policies, revise as needed and keep a closer eye on accounts receivable,” Shaw adds.

He realized that, if the firm was to handle the increased business efficiently, he didn’t necessarily need to add sales staff as much as additional support staff. He is currently seeking to add a design assistant.

“Customer service has always been our top priority, and I believe it is why the majority of our new business is referred to us from previous clients,” Shaw stresses.

Weathering the Storm

A mere week after Katrina hit, Shaw and his staff reopened their doors, doing their best to salvage displays.

“Initially, business was manageable, but after a few weeks, it became apparent it would increase exponentially,” he remarks.

Without the time to train new employees adequately, the existing staff at Nordic Kitchen & Bath started working much longer hours – some as much as 12 hours a day, seven days a week, for up to a year after the storm.

“We also reduced the days our showroom was open to four per week at the time, closing on Mondays to complete designs, enter orders and handle paperwork,” Shaw reports. “Salespeople and designers began assisting with shipping and receiving as well.

“Having a great staff that actually cares about the customers and the business goes a long way in [maintaining the operations and] fulfilling the customers’ desires and expectations,” he continues.

The challenge of keeping up with the increased workload was compounded by carpetbaggers, who opened satellite showrooms around the area.

“There were dealers relocating to the area from as far away as Seattle,” he notes. “As they saw their business grow, some of the local dealers began adding more salespeople and ‘designers’ to their staffs, although many were hardly qualified.

“Other local dealers moved into newer and larger showrooms, and some actually opened multiple locations,” he adds.

Many of the showrooms that opened multiple locations after Katrina have since closed, or gone out of business completely, he reports.

“With no long-term interest in the city, these firms pulled out as the choice jobs were completed. It left little or no service structure for the homeowners,” Shaw adds, which is where his staff stepped up.

Climate Change

For Shaw, the business survival instincts that kicked in during Katrina have greatly empowered the firm to overcome the current economic recession.