“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…
“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…
What Is the Cost of Safety?
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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…)
Why Kickoff Training is the Key to Successful Transformation: Guest Blog by MetaExpert Gregg Young
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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…
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…
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…
It’s important to keep your drivers happy and your fleet happy as this infographic about the high cost of employing (and losing) a truck driver shows. Here’s how I help fleets perform and maintain loyalty: Make the driver part of the solution, and not part of the problem. I ask drivers for their input on what the company can do better. When they have an idea, I run with it as long as it does not negatively affect a customer, company policy, cost control, safety etc. I always say, “I will let a driver win a battle as long as the company wins the war”. So even if I do not agree with the idea, I will implement it as long as it is not detrimental. If the idea works, I let everyone know which driver thought of it. You can never take credit for an idea that is not…
The biggest challenge I encounter in achieving supply chain excellence is that many organizations believe they are powerless when it comes to working with their suppliers. The typical beliefs I encounter are: “we aren’t big enough to have any leverage”, “we can’t control what our suppliers do”, and “implementing a Lean supply chain will increase our costs”. Interestingly, most organizations feel the same way toward managing their customers as well. It is this victim mentality that prevents many companies from achieving operational excellence. The root cause of these limiting beliefs usually comes down to two critical factors: 1) not fully understanding what a Lean supply chain actually is, and 2) not understanding how to “sell it”, in other words, how to demonstrate how it will help the supplier to be more competitive and then use that as part of the negotiating process. To overcome these limiting beliefs, I focus on…
My perspective is that obstacles to supply chain operational excellence occur in business when there is a lack of alignment between people’s measure of success. In most organizations communication is a fundamental area that almost always requires work and improvement. In those undergoing significant change this comes to light and is amplified, creating confusion and other feelings that often get in the way of the improvement process. Ensuring that the entire value stream is aligned and that ownership is established with a minimum of silos is critical to success in achieving operational excellence, not just improvements. I like to refer to what we most often experience in this regard as “islands of success in a sea of waste”. Unless there is alignment which is often associated with Hoshin Kanri or Strategy Deployment, there will be a lot of good work that can go to waste because of the communication and…
Ron Crabtree The concept of 5S, which is a methodology to reduce waste through a rigorous approach to workplace organization and cleanliness has five steps that loosely translate as Sort, Setup, Scrub, and Shine, Standardize and, finally, Sustain. Until recently, it never really occurred to me that the concept of 5S could be extended creatively to improving processes that have absolutely nothing to do with physical organization. Joann Parrinder is a co-author of our book Driving Operational Excellence and has written a very interesting chapter in it titled “Lean Thinking Applied to Your Idea Development [Life]cycle.” Joann, glad you could join me. Joann Parrinder Thanks, Ron. I’m glad to be here. Let me give you a bit of my background. I have about 15 years of program and project experience and I’m PMP certified in project management. I like to build things, so my projects have primarily been in the…