I interviewed Tim Calie who discussed Leadership for Business Improvement with Existing Salaries and Systems.
Can you first provide a brief background of yourself?
Yeah. Certainly.Good morning, Dustin. I have been a supply chain executive for the past 27 years with various distribution [inaudible 00:00:36], various distribution, transportation, warehouse, third-party logistics, as well as asset-based firms. In every single environment, I was able to reduce cost and improve service levels with the existing salaries and systems by an average of 10 to 20%.
Can you introduce this topic about Leadership for Business Improvement and discuss what it's about?
Yes. The topic thatI'm going to discuss is after being involved in the executive leadership role for 27 years. The past five years I've been doing consulting projects. And as a consistent viewpoint of all the other consultants that are out there to [inaudible 00:01:25] businesses is that normally, a consultant will go to a business for improvements that are warehouse, transportation, distribution. Again, third-party logistics as well as asset-based. And what they will do is they would put in a new software system or a new hardware system which means a [inaudible 00:01:49] scanning system to improve the existing operation as well as put in a new salary to improve existing operations, that they're having service-level issues, or more importantly, high cost within the existing operations.
So what I've seen is that they have to put in more money into the system to improve the current system as far as salary or a hardware/software system, whether it's something as far as integrating the existing software or a [inaudible 00:02:33] forklift operating, RF system, or any kind of scanning mode. So that's where I'm at, and I'm able to improve the existing operation without putting in new salaries.
Can you talk some more, a little bit about how it's done?
Yes, of course. I'll describe to you the brief methodology of it. The [inaudible 00:02:59] of the methodology aspect is leadership, culture, analysis of the suitability of the associates, the re-structure and the reorganization of the environment regarding process flow. Also, the analysis implementation, formatting of process and procedures and lastly, engagement, motivation, and empowerment of teams. Those are the key focal points in the methodology to improve the existing operation, again, with no new software, hardware, and no new salaries.
The next point would be to create a culture. By that, I mean create a motivated culture that fosters and promotes teamwork and collaboration. The second [inaudible 00:03:48] culture aspect would be to improved communication among associates and management.
The leadership aspect — the key is making the time to orchestrate a business [inaudible 00:04:02], to perform at a high [inaudible 00:04:04] with motivated associates. This breaks down to two simple entities— people and processes. Again, leadership. Leadership is a critical component of creating a high-efficient, profitable, and motivated business environment. [inaudible 00:04:22] industries and have a superior work ethics to possibly produce prolific results. But a highly prolific leader will first engage all the associates on a consistent basis with a positive, professional, and supportive demeanor, and most importantly, respect the care for all team members. That's very, very important.
A consistent, engagement verbiage will open-ended inquiries to learn about all the associates [inaudible 00:04:54] performing their responsibilities is very important for a leader to obtain the full pulse of the operation.
Again, the leader most [inaudible 00:05:06] with the associates know many reasons why the issues are occurring, that are its high cost or low-service levels. And then he has the solutions, get leaders that are engages, cares, and respects the [inaudible 00:05:18] in general.
Some [inaudible 00:05:24] a greatly...also very respectful and open to admit that they make a mistake and engages in a very collaborative, open-ended inquiries. "Does that make sense?" Or "What do you think?"
The [inaudible 00:05:39] issue history regarding root cause... Many businesses in our world, when an issue occurs, [inaudible 00:05:46] an abundance of people into a process [inaudible 00:05:49] creating an [inaudible 00:05:50] scenario. It involves an analysis of the root cause of the issue, proper restructuring at the processes, procedure, to ensure there is accountability to present any further issues if required.
Analysis process flow will be the next step. Again, regarding the analysis process flow, if its own inspection and analysis of the environment to identify optimum process flow of product throughout the operation.And the second point would be the identification and analysis of daily, weekly, and monthly reports to be monitored and assigned to pertinent product leaders. [inaudible 00:06:39]
Streamlined process of procedures would be the next step. And that would involve creating a flow chart to track all the activity within operation. Then a complete review [inaudible 00:06:57] on all processes and procedures to ensure that there is firm accountability [inaudible 00:07:05]...
The next step would be analysis of the [inaudible 00:07:29]. And that would be the research of all pertinent reports that show volume, velocity, and trends of [inaudible 00:07:37]...
The next step would be the implementation of metrics and measures, which benchmarks and KPIs called Key Performance Indicators. This is very important to structure and organize the environment. [Inaudible 00:08:08] standards, benchmarks, KPI (Key Performance Indicators), [inaudible 00:08:14] departments.
...and the second point of metrics and measures, it’s important that all positive progress is shared in open forums to [inaudible 00:08:39]...
...as well as sharing positive details with subordinates and presenting it in a positive professional manner, such as [inaudible 00:09:07] positive awards, such as keep the pulse going [inaudible 00:09:12]...
...documented for [inaudible 00:09:29] accountability and corrective action. Again, that's going back to the root cause of the issues that are one of the root cause. And when an issue occurs, most businesses put many people and many procedures on it and do a crisis management without finding out the root cause of the [inaudible 00:09:48]...
.. Accountability is critical in an operation, because if you don't hold people accountable in a positive, professional way, the same occurs. It will happen over and over again. [inaudible 00:10:17], as far as accountability goes, [inaudible 00:10:18] with all the climate meters, coach, train, and motivate all areas of concern in a progressive manner.
Products [inaudible 00:10:26] standards. [inaudible 00:10:29] of all activity to each area and obtaining average time and process for each department activity. Productivity standards, as far as incentives goes, there can also be incentive [inaudible 00:10:43], implemented from [inaudible 00:10:45] productivity which will also greatly reduce the number of associates required to process all products in their operation which will greatly impact your cost reduction aspect of your goals to improve the operation.
Productivity standard incentives, this program should be implemented by analysis of the best [inaudible 00:11:04] productivity versus the incentive productivity level, which again, will also [inaudible 00:11:11] reduce your staff and reduce cost if I give them incentives to produce a higher standard of productivity than with the average standard productivity is, which is called the benchmark.
Going back to leaderships.Leadership goals. [inaudible 00:11:27] company goals in open forum and also individual goals of all associates in individual sessions. More about leadership goals.It's very important that these goals, expectations of both overall company and associates have been carefully measured to ensure they're achievable of all associates.
Going into continuous improvements.It's very important to continuously communicate with your associates and a continuous sense of urgency over the environment. The continuous improvement methodology must always be inhigh-gear to maximize any areas of further improvements.
The next step would be going into morale and motivation. The final component is a focus of optimized associate morale. This is very important as this will further raise the service and productivity level and raise the bar to collaborate and foster an environment to achieve more.
The establishment of an appreciative, [inaudible 00:12:35], and motivating leadership to promote a team environment and a [inaudible 00:12:40] associates to provide their feedback for general improvements.
Another aspect of morale would be implementation of an associate of the month award to reward and recognize appreciation for outstanding [inaudible 00:12:55].
Associate of the month. The associate of the month is to be decided by a committee of all department leaders in the initial states. Also, the group of people who have been awarded associate of the month award, those associates form a committee to elect the further associate of the month, future associate of the month, to maintain the integrity of the reward and their [inaudible 00:13:27] overall.
The awards for the associate of the month can include any or all of the following. Days off from work, cash bonus and check, a parking spot close to the warehouse entrance, [inaudible 00:13:44] associate of the month. And we'll put your names in a designated area by the cafeteria, in the hallway, in an entrance way, [inaudible 00:13:54].
And again, finalizing the overall purpose of the business is the consistency. [inaudible 00:14:05] also needed is consistency of all [inaudible 00:14:09] areas to be improved in a progressive and continuous improvement level. Consistency brings a constant awareness and provides a pulse of progressive improvement of both service, productivity, and overall morale.
Any follow-up of documentation can be seen in our LinkedIn profile. Our email address is email@example.com for any further information that you want to ask. That's t-i-m-c-a-l-i-e, the number six, @hotmail.com, as well as my cell phone number 718-431-3050.
Thanks for sharing today, Tim.
You're very welcome, Dustin.
About Tim Calie
Top 1% Supply Chain Executive
27 years Reduce Costs/Improve
Service Levels 10% - 20%
Existing Systems & Salaries