Executive Blog

Industry 4.0 Technology
In a recent survey, 76% of manufacturers said they would increase their investment and use of smart devices or embedded intelligent into the manufacturing processes within the next few years. In the same survey, 66% of the manufacturing CEOs expect to increase profitability through the use of new technology and the Internet of Things (IoT) within the next five years. According to these results, Industry 4.0 is being adopted far and wide. So, what do they know that you don’t? Advances in Technology are happening at a rapid pace, and it takes special attention to not only understand how new technology functions but also how it can actually help. Indeed, is it hype or help? From a CEO’s point of view, how new technology works is secondary to how adoption could impact the company and its bottom-line. What to consider before adopting Industry 4.0 Most investigations have shown there are…
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Lean Six Sigma for Companies
What is Lean Six Sigma? Six Sigma is a set of methods and tools for process improvement with the goal of improving efficiencies and profitability. Developed in 1986, Six Sigma has become a global phenomenon with companies around the world adopting the paradigm as the core of their business operations. The “Lean” methodology is similar to Six Sigma. It stresses achieving the greatest efficiency in all characteristics of operations. Six Sigma emphasizes more on eliminating errors within processes. The lean strategy focuses on identifying needless steps that consume effort and resources. Lean Six Sigma (LSS) has proven to be so successful that it is estimated that over 69% of the medium and large manufacturers in the world use it. I mean, who doesn’t want to be efficient and well organized? In fact, as businesses grow, the tendency is to become more inefficient and less organized. These two methodologies have spawned…
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Becoming a Lean Office
How a marketing Kaizen can help revitalize sales All companies depend on sales. But, as with all things dynamic, sales can run in cycles. In fact, while there may be certain macroeconomic issues that impact sales cycles, many slumps in sales change as a result of the inner workings of a company. In fact, what may have worked before may no longer be effective. Indeed, this was the case with a Health and Welfare Benefits vendor. Rather than just accept a “normal” cyclical downturn in sales, the CEO decided to take a closer look. After hearing some grumbling coming out of the sales department, he decided to investigate. He wasn’t sure what the problems were, and he had hoped his Sales Manager would have let him know in their regular meetings. The CEO decided to have an outside expert come in and perform a review of the company rather than…
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“In just 30 days, profits increased by $50,000.” Management articles are almost always about problems. But, this real-life event showcases how problems can be turned into opportunities. Owners and top-level management can sometimes be held captive by their limited experiences and training. However, there are many enlightened leaders who understand there is always something to learn. Indeed, learning from the mistakes of others is a wise strategy, but too often ego gets in the way. Until there is acceptance of a problem and a resolution to fix the problem can real learning take place. The following is a true story that demonstrates how education can quickly turn a problem into a long-term tool for success. The Business Problem A Chicago, Illinois-based steel fabricator, supplying a global market with wire product displays,  store fixtures, point-of-purchase (POP) displays, and custom wire frameworks, realized their profits were trending negatively. They had tried a…
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Decision-Making Process for Industry 4.0
“Decision-makers must learn to leave egos at the door” In the era of Industry 4.0, technology will play a greater part in optimizing solutions. But do decision-makers have the expertise needed to fully understand the rapidly evolving tech world? If leaders can’t stand up and say: “I don’t understand how that tech solution works” and have the humility to learn new things, then optimal decision making in the era of Industry 4.0 may be in jeopardy. Making a good decision is only validated by the results. However, in an age of constantly growing complexity and the push to be innovative and “out-of-the-box”, there may be too many unexpected variables that can bring about unexpected results. This logical fear plagues decision making. In fact, decision making has become more challenging due to the exponential growth and access to information. Validating information is becoming a serious issue in the Corporate C-suite. Misleading…
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What Is the Cost of Safety?

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What is the cost of Safety
What is the cost of Safety when it’s not the first priority Have you ever wondered if putting money into your organization’s safety policy was worth it? If so, you’re not alone. Many people think they can put safety off, until something happens, and then, they instantly regret their decision. One organization in particular made an investment in improving their safety and truly reaped the benefits. Their safety turnaround resulted in Zero Lost Time Incidents, One million safe hours…then, two million safe hours, An Iowa Safety Council Award, and A National Safety Council Award. Perhaps most importantly, the safety improvement even lead to a feature story on ABC prime time. (more…)
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Transformation is change, and change is hard. People resist change. Even if today’s situation is terrible, change is still uncomfortable and scary – a case of the devil you know vs. the devil you don’t. People must become committed to the desired transformation, and this requires communication AND training. Communication lets people understand the vision, the desired outcome of the transformation. Training gives them the skills they will need in order to successfully contribute and therefore become committed. This kickoff training gives people the skills they need to become effective problem solvers, tools based on the “observation, then deduction” method of Sherlock Holmes. Holmes would look for clues at a crime scene, things that were out of place or different. Workers are trained to observe their own operations, to look at conditions when it performs brilliantly and when it performs terribly. They learn tools that search for the Consistent Differences…
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One of the first training programs I run is not about Lean. It’s not about Adding Value to the Customer, how they must strive for perfection, etc. etc. No, one of the first things that executives have a right to understand is how Lean will make them money – how the high cost of implementing Lean will have some return on its investment besides the visual tools on the floor that people associate with the process. Consultants, who have never been executives, scoff at this response, pressuring you as a leader that is not about money, but about the true Spirit of Kaizen, or that it’s all about the people. They point to the visual elements of Lean, and are more than willing to point out your failures on Gemba walks, with worker efficiency, holding you accountable, how you should “just do it”, your poor time management skills, etc. And…
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Andy Goldstrom
When I was 30, I was extended an offer to serve as an Account Director at a small, start-up company.  The CEO and Founder created a unique and accountable culture from the day he opened for business.  The offer contained all the requisite language about the responsibilities and rewards, but what was most impactful was the last paragraph before the signature block, which said: “This employment offer is based on Andy’s commitment to USI’s standard Business Practices and Operating Philosophy, including: Making commitments and keeping them Providing total quality in everything you do Being a team player Holding yourself accountable to the USI team and Holding the USI team accountable to you” The company had a strong value proposition, but what was just as important was the culture.  Healthy and competitive peer pressure emanated throughout the organization.  When one person succeeded, the entire team succeeded.  When one person failed, the…
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Bob Flynn
Private equity portfolio companies face aggressive goals when they try to expand their business in short-time frames. With acquisitions thrown into the mix, there is added complexity and risk. The projects to accomplish these growth and integration initiatives require dedicated resources and your best resources who are already spread too thin end up being over-utilized. The best strategy is to find experienced, specialized, interim resources that you can rely on, and have them available on demand. A key area of focus is to have a strong Project Management Office with enough project management talent and project management professionals, and a great process to drive your strategic initiatives. Plan ahead, form these relationships now with strategic staffing and talent companies. Make sure these companies and their team can deliver the breadth and depth of talent required, especially in terms of industry expertise and functional knowledge. Oftentimes, it takes weeks to find…
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