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lisaanderson

Strategic Pricing

Posted by lisaanderson Oct 31, 2016

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I've been working with a new client recently on digging into costs; however, we aren't taking the traditional cost-cutting approach. Of course, the more efficient and less costs required to run a manufacturing operation, the better, assuming customer service, cash and other metrics remain intact. However, if you take the big picture, cross-functional view of costs and process improvements, you are bound to find opportunities. 

 

In this case, if we can find opportunities, we can go from being a small player in a new market with significant potential to being a going concern. If we are losing deals because of pricing, there might be an opportunity to think differently and design a new formula for success. Lower prices across-the-board is rarely better. Instead, think strategically about pricing. 

 

For example, we followed a strategic pricing strategy when I was a VP of Operations for a mid-market manufacturer. In that case, we knew that if we covered variable costs and strategically priced while considering the break-even point and contribution margin, we could cover key costs, grow the business and increase profitability. We followed the plan and results followed. If we had kept going down the current path, we would never have sold the business for a significant profit because results would have been "too slow". In today's Amazon-paced world, you can miss your opportunity in a blink of an eye.

 

One tip to implement this week:

 

For this week, depending on your position and expertise on pricing, my suggestion is to learn about pricing. How significant a variation does your company provide in pricing? Why? Are there certain volumes, combinations of items or special circumstances that reduce costs so that you can pass on some of the savings to your customers? Do you know what market pricing dictates?

 

If you are already on top of pricing, take a step back and think about pricing from a strategic standpoint. How important is pricing as a reason your customers buy from you instead of the competition? What is most important to them? Are there certain customers or products where an increased level of sales would make your company more attractive to investors, customers and other stakeholders? What are your trade-off's with profitability? Have you thought about pricing differently based on ABC customers and/or products? Gather your team and discuss. Golden nuggets might just arise.

 

Looking for more ideas to keep your supply chain connected? Access more tips and resources on my blog. And keep connected by subscribing to my newsletter and email feed of “I’ve Been Thinking…”

TalentStream.jpgLisa Anderson MBA, CSCP, president of LMA Consulting Group and a sought after manufacturing, distribution and supply chain consultant, speaker and writer who works with manufacturers and distributors in aerospace, building products and food is presenting “The Increased Need for More Control, Speed and Profit: How to Thrive in the Environment” in a TalentStream webinar on Wednesday, November 2, 2016, at 12:00 PM to 1:00 PM EDT.  As the recession is long over and manufacturing has been reigniting, executives are re-evaluating their end-to-end supply chains in response to the critical importance of short lead times, increasing labor rates in low cost countries, concerns about “too much” money tied up in inventory due to lengthy lead times and worries about the increased level of risk. This presentation will feature an interactive discussion on how supply chain and operations leaders can re-configure their supply chain and re-focus their efforts to not only remain competitive but to thrive in this environment.

 

“In today’s Amazon-impacted marketplace, customers expect rapid deliveries and 24/7 accessibility at low prices. Executives are turning previous notions about offshoring upside down,” explains Anderson. “And although there are key challenges, customers don’t want to hear about our obstacles, they just want their orders faster. If we ignore these demands, we risk our customers going to our competitors who can get them what they need when they need it at the right price and level of service.”

 

“Since service has risen to a level of critical importance, I’m starting to see my clients and colleagues consider what it will take to bring manufacturing back to the U.S. and/or to nearby countries. I’m conducting a research study to dig into this topic in more detail so that my clients can stay ahead of the curve. Success will not follow those late to the party. Customers will go to those who have the right product at the right price at the right location at the right time. Join us for the webinar to find out how supply chain management is becoming strategic to business growth and success.”

 

Capitalizing on her over 25 years of experience advising manufacturers and distributors on supply chain, operations, ERP and SIOP, Anderson continually provides data that helps manufacturers and distributors focus in on which people, process and system improvements are essential to preparing their supply chains to create a sustainable advantage.

 

TalentStream, a recruiting company that helps emerging technology companies secure the right people, the most critical piece of the puzzle to build and grow a successful business, is hosting the complimentary webinar. Registration is required.

 

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APICS Inland Empire Symposium Sets Stage for Global Supply Chain Strategies, Compliance, and Sourcing Decisions

 

The October 29 Fall Executive Panel & Networking Symposium will focus on managing and navigating Global Supply Chains giving manufacturing and logistics attendees access to an expert panel with international law, global supply chain and manufacturing and international trade experience.

 

The Inland Empire Chapter of APICS, the leading association for supply chain and operations professionals, will be delivering an international-focused meeting on global supply chain trends and strategies at its Navigating Global Supply Chain Fall Executive Panel & Networking Symposium on October 29  in Corona, Calif. Expert panelists including international business attorney John Tulac; Josie Vigil, Director of Supply Chain Operations for B. Braun Medical Inc.; Pooya Kabirir, Vice President of Engineering & Operations at Combustion Associates, Inc.; Elizabeth Warren, Executive Director for FuturePorts; and Luke Haylock, Global Director of New Product Development for Alcoa. The panelists will discuss global trade, the evolving requirements and regulations and how to balance customer needs, cost, cash flow and compliance. Attendees will walk away with a better understanding of global supply chain strategic thinking, global disruptors and how to best manage these impacts in the manufacturing and distribution of products. In addition to a focused conversation on global supply chain, attendees will have time to network and benchmark with area companies and build contacts within the manufacturing and distribution community to also help them build their career.

 

“We’ve assembled a panel that touches on all of the strategic, compliance and operational aspects of a global supply chain, says Lisa Anderson, President of APICS-IE and LMA Consulting Group. “We are fortunate to have a community of professionals, including speakers, sponsors and members, committed to helping attendees gain value so that they walk away with strategies and new concepts to lead their companies and functions, provide valuable input on key initiatives and develop their personal careers. Gaining a competitive edge in the global supply chain requires a team approach!”

 

Sponsors this year include Arbela Technologies, Brandman University, Manufacturing Executive Institute, and Compete Consulting Group. Event supporters provide additional value to attendees serving as a resource and advocates of this symposium’s focus on the ‘Global Supply Chain’. Compete Consulting Group, a new sponsor of APICS-IE, values the community of experts and resources that the Symposium will bring together to help those considering or trying to make improvements to their logistics operations. “Like APICS-IE does for its membership through the educational topics they present, it is our business to provide a new level of visibility and cost savings within the shipping industry,” notes Josh Dunham, Managing Partner of Complete Consulting.

 

With so many moving parts, it takes a virtual international village to support companies in navigating the global supply chain. “A global supply chain has so many connections and complexities that leveraging the right system to bring it all together is critical to the success of a business,” said Amir Khoshniyati of Arbela Technologies. “As part of the APICS-IE Symposium, we look forward to collaborating with attendees and hearing more about the secrets to success in navigating the supply chain. We are proud to support APICS-IE in delivering such a value-packed program.”

 

The APICS-IE Executive Panel & Networking Symposiums draws attendees from all over Southern California. Held twice yearly, platinum sponsor Manufacturing Executive Institute actively promotes attendance at the Symposium. “We support APICS-IE in providing opportunities for our members to learn from experts on topics like global growth and supply chain,” states Maggie Watson, Manufacturing Executive Institute. “We are proud to sponsor APICS-IE as we offer complimentary training programs and are dedicated to bringing relevant knowledge to individuals who are interested in making dramatic improvements in their manufacturing and distribution companies.”

Brandman University, a leading provider of undergraduate and graduate programs including those focused in supply chain management, is supportive of the APICS-IE programming and encourages students to attend. “Brandman University is proud to partner with APICS-Inland Empire to equip and empower this great community and region with the knowledge, skills, and abilities to have the finest supply chain professionals in the U.S.” says Nick Lacy, Director of National Relations.

 

The APICS-IE Fall Symposium: Navigating Global Supply Chain will be held Saturday, October 29, 2016 at the Eagle Glen Golf Club in Corona, Calif. Fees to attend the event from 8:00 AM to 11:30 AM are $15 for members, $25 for non-members and students are free. Breakfast buffet is included. Register online or cut and paste this link into your browser: http://events.r20.constantcontact.com/register/event?oeidk=a07ed1rzbt5632f374f&llr=pd7pgykab.

stoplight.jpgKeeping with the APICS 2016 theme, we can achieve profit through people by following the 5 second rule, according to Mel Robbins, commentator and legal analyst for CNN. Her point is "Do you think you'll ever feel like doing what you need to do?... NEVER! Thus, follow the 5 second rule.

The 5 second rule: The moment you have the idea (to talk to someone, to email your boss, to present an idea to a key customer, or help a colleague), you have 5 seconds. Start doing something within 5 seconds. For example, if you want to talk with someone, start walking towards them. If you want to present an idea to a customer, write it down. Think of some small step that will get you going in the right direction. Otherwise, you'll talk yourself out of it!

So, how can we use the 5 second rule?

  1. Tell your boss about an idea - can you imagine how many ideas we'd have if everyone just communicated one idea? 
  2. Change one small thing you have wanted to change - it is amazing how often people just "get through their day" and don't consider changing something to make their daily life better. Pick one small thing and do it.
  3. Tell one person about how you admire them - there has to be someone at work you think is doing a great job, has a great attitude, etc. Even if it is the President, go tell him/her. Pick up the phone.
  4. Introduce yourself to someone you wanted to meet - perhaps you've been interested in R&D but didn't think anyone would listen. Ignore your inner voice and introduce yourself. 
  5. Give constructive feedback to a colleague - this can be one of the hardest yet most appreciated things you can do. If you truly want to help, do it. You never know how effective it could be.

Mel has been wildly successful talking about the 5 second rule. She told us her story of being "down and out" and picturing a rocket taking off "5, 4, 3, 2, 1....." and pushed herself to get out of bed. Who hasn't felt that way before? From lying in bed to CNN - imagine what you could do if you followed the 5 second rule?

 


Did you like this article? Continue reading on how to Profit Through People:

Motivating Your Team

        

Three C's to Leadership Success

lisaanderson

Favorite Charities

Posted by lisaanderson Oct 24, 2016

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When I led my ProVisors ONT meeting last week, we talked about our favorite charities. We are a group of trusted advisors for businesses (commercial bankers, commercial insurance, consultants, attorneys, etc.) yet discussing charities was a great exercise to get to know each other better which also improves our ability to collaborate and do business with each other. At the end of the discussion, we picked a name out of the attendees, and one of us walked away with the money collected for the charity of our choice. The winner gave the money to rescue the animals. Do you know what is meaningful to your colleagues? 

 

I talked about the Michael J. Fox Foundation for Parkinson's Research because my dad had Parkinson's. Although my mom extended his capabilities beyond the typical (for example, kept him walking with help longer than the typical person), it was a great struggle and Parkinson negatively impacted his ability to lead his life. It would be great for them to find a cure and/or to extend the quality of life.

 

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One tip to implement this week:

 

The tip this week is quite simple. Find out what is important to your colleagues, your boss and/or your employees. Whether or not you can ever do anything to help with these causes, don't you think it would be good to know what is important to them? I had no idea that some of the folks would pick the charities they talked about even though I have known them for many years. It was good to hear about these worthy causes.  

 

Perhaps it will be a great start to your holiday season to spend a few minutes thinking about this topic....

 

Looking for more ideas to keep your supply chain connected? Access more tips and resources on my blog. And keep connected by subscribing to my newsletter and email feed of “I’ve Been Thinking…”

 

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Manufacturing Connector Lisa Anderson initiates research study to better understand the outsourcing, nearsourcing and insourcing trends and how these practices impact manufacturers’ and distributors’ strategies.

 

Lisa Anderson MBA, CSCP, president of LMA Consulting Group, is launching a third industry research study to help manufacturers, distributors and supply chain executives identify, understand and anticipate the trends in outsourcing, nearsouring and insourcing.  On the heels of the recession and an earlier trend by business to outsource, many businesses have jumped on the outsourcing bandwagon only to reverse course and bring all or some of their production back in-house. Later hybrids of insourcing and nearsourcing have helped companies maximize total value and more effectively meet customer demand. The study will look at national trends and have a subset of Southern California business activities.

 

“It is our goal to be on the leading edge of trends impacting manufacturers and distributors so that we can recommend strategies to not only remain competitive but to thrive in today’s era of volatility,” explains Anderson. “Following on two of the most vital ingredients for success of any company – employees and customers – reflected in our Skills Gap research and Amazon Effect studies, we wanted to turn our attention to a topic receiving global attention that greatly impacts both employees and customers — outsourcing, nearsourcing and insourcing. I saw many executives follow the popular wave of outsourcing with short-sighted decisions to outsource key products because they thought they would save significant labor costs and be congratulated by corporate, Boards and the like, only to find out it wasn’t as easy or successful as they thought. Not only did they consume all sorts of resources in trying to manage the process, they also extended lead times, created disgruntled customers and often-times, stockpiled inventory. With the emergence of some of the newer, hybrid versions of nearsourcing and insourcing and with the rise of the customer in today’s Amazon-impacted and high-tech, automated world, I think it will be fascinating to see what can and should be reversed and what innovations can be developed to support this “what makes sense” strategy of positioning inventory close to the customer.”

 

Capitalizing on her over 25 years of experience advising manufacturers and distributors on supply chain, operations, ERP and SIOP, Anderson continually provides data that helps manufacturers and distributors focus in on which people, process and system improvements are essential to preparing their supply chains to create a sustainable advantage.

 

Qualified participants in manufacturing and distribution are welcome to complete the survey.  The complete Outsource, Nearsource and Insource report will be available in 2017. To receive the free report when it is available, register here to automatically be sent a copy.

 

For information about Lisa Anderson, go to http://www.lma-consultinggroup.com/ or call 909.630.3943.

lisaanderson

US Roadmap 2025

Posted by lisaanderson Oct 19, 2016

Fotolia_94538680_XS.jpgThe Material Handling and Logistics Association has taken the lead in updating the roadmap for supply chain and logistics for 2025. I participated in a strategy session focused on thinking about what is coming in ten years, what disruptors are likely to exist and how we should prepare to succeed in 2025. Southern California is #1 in both manufacturing and logistics; thus, there is much to think about to stay ahead of the curve and think about how technology, workforce, and other factors will affect logistics in the future.

 

For example, we discussed the impact – or lack thereof – of the Panama Canal. Although it is certainly an alternative, it might not be as much of a threat of the change in the origin of manufacturing. As manufacturing moves away from China, could different routes make other ports more viable? The advantage Southern California has is the sheer size and capability of the ports – they can handle big ships (which many others cannot), there is deep water, the equipment and infrastructure at the ports is available, etc. However, there are grave concerns about the 710 freeway coming out of the Long Beach port. Traffic and congestion is a big concern. What is likely to change in the next ten years? Can we collaborate with government? Will autonomous vehicles be commonplace? How about increasing truck traffic at night? There are many considerations to ponder.

 

It is wise to stay on the leading edge of what is of such critical importance to manufacturers, distributors, logistics providers and the economy. Think about attending local trade association events such as APICS Inland Empire’s executive panel and networking symposium on “Navigating the Global Supply Chain”. Read trade journals. Talk with colleagues. Ask experts. And join us at the Material Handling and Logistics Roadmap 2025 unveiling at ProMat in April 2017.

 

Did you like this article? Continue reading on how to be the Strongest Link in your organization:

 

APICS-IE Focuses on ‘Navigating the Global Supply Chain’

 

Lisa Anderson Invited to Participate in the 2017 U.S. Roadmap for Material Handling & Logistics

business man figuring it out.jpgFrom time to time, we receive a call from a client dealing with a challenged ERP implementation. Unfortunately, "challenged" is a nice word for most of these! Of course, by the time the client calls, they have spent a lot of money and are frustrated which isn't a great starting point because unscrambling the situation is never an easy endeavor — assuming you want to provide service and make money.

Unscrambling these scenarios requires a unique combination of skills:

  1. System thinking - as odd as it sounds, there is NOT a need for experience in the specific system. Certainly, it might add value but the most important skill is system thinking — connecting the dots in terms of how systems work, down-the-line impacts, how they'll integrate with other process steps, etc.
  2. Business process expertise - we find that this is a critical component. There are always several ways to perform a certain role or accomplish a task. Some of the ways will create positive down-the-line impacts while accomplishing your goal and some will work perfectly well for you (and might even be faster) but will create negative down-the-line impacts. The complication is that no documentation will tell you about these. This is where having "been there and done that" with multiple systems and process combinations is required.
  3. Timing/sequencing - even if you have good system thinking and good process expertise, if you don't "see" the various outcomes with different sequences and timing impacts, you'll still end up in a jumble. 
  4. Project management expertise - unscrambling several moving parts requires a deep project management expertise. Organizing and tracking several moving parts and related impacts (prerequisite steps, concurrent steps, etc.) requires a skill in project management.
  5. Relationships/communication - one would think we are asking for too much when we throw this topic into the mix but it is a key component. Often, there will be some technical capability required to resolve certain aspects. Thus, communicating effectively across applications and technical capabilities is a must. Additionally, your ERP and system partners (or lack thereof) might need to be addressed, improved and/or changed out. After all the frustration already incurred, it is essential to know quality resources.
  6. Training/application understanding - this is an easy one to outsource once you know what is needed. Our clients typically think it is #1, yet it is the least critical aspect. Once the solution is known, it is easy to provide training.

 

Yes, it is one of those situations where there are no easy solutions. The fix itself could seem simple yet putting together a plan and executing the plan will turn complex. Our best advice is to take a step back and assess your situation. After spending a lot of money (that has become a sunk cost), the key will be to remain focused on what the best long-term solution will be to maintain and grow your business successfully. It will require more money than you hoped but you'll "right the ship" so that you have a sustainable solution.

 

As an aside, if you happen to employ resources with many of these skills, hang on to them. Follow the advice of one of my best clients who hired top notch engineers during the recession when he didn't need them. He now has them and will sail past his competition.

 

 

Did you like this article? Continue reading on how to become a Systems Pragmatist:

 

How Challenging ERP Can Be!

 

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APICS Inland Empire Focuses on ‘Navigating the Global Supply Chain’ at Fall Symposium on October 29

 

The Fall Executive Panel & Networking Symposium tackles the pay-offs and perils of managing a worldwide supply chain giving attendees from manufacturers and logistics a chance to improve their strategy for managing a global supply chain. The Inland Empire Chapter of APICS, the leading association for supply chain and operations professionals, will be presenting attendees with an expert panel focused on global supply chain trends and strategies at its Navigating Global Supply Chain Fall Executive Panel & Networking Symposium on October 29, in Corona, Calif. In addition to expert presentations, engaging dialog and industry networking, APICS-IE is an excellent resource for all supply chain professionals seeking education and improvement.

 

Supply Chain Professionals Think Bigger at Symposium

“We’re thinking big at this year’s Symposium and focusing our discussion on successfully navigating the global supply chain, says Lisa Anderson, President of APICS-IE and LMA Consulting Group. “We look forward to pushing the envelope in supply chain strategic thinking, global disruptors and how to best manage these impacts in the manufacturing and distribution of products. We’ve assembled a panel rich in international law, import and export, logistics, and global manufacturing and R&D experience to drill down into what we need to know to be successful globally.”

 

Experts Share on Managing Global Supply Chain

Expert panelists including international business attorney John Tulac; Josie Vigil, Director of Supply Chain Operations for B. Braun Medical Inc.; Pooya Kabirir, Vice President of Engineering & Operations at Combustion Associates, Inc.; Elizabeth Warren, Executive Director for FuturePorts; and, Luke Haylock, Global Director of New Product Development for Alcoa. The panel will each present their perspective on managing the supply chain in a global economy as well as answer attendee questions.

 

The APICS-IE Fall Symposium: Navigating Global Supply Chain will be held Saturday, October 29, 2016, at the Eagle Glen Golf Club in Corona, California. Fees to attend the event from 8:00 AM to 11:30 AM are $15 for members, $25 for non-members and students are free. Breakfast buffet is included. Register online now as space is limited.

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Last week, I participated in the development of the Supply Chain Roadmap 2025. It will result in a compilation of what more than 100 industry thought leaders had to say about the future of material handling and logistics. It is quite an interesting process to take a step back from the daily grind and sometimes fire-fighting to think strategically and long-term. I look forward to the report coming out in the spring of 2017!

 

Similarly, I have been focused on finalizing the executive panel for APICS Inland Empire's upcoming symposium on navigating the global supply chain — we have an amazing lineup of experts! Certainly many topics crossed over between these two events.  

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Join us for intriguing discussions with manufacturing and logistics thought leaders — learn more and register here. We are connected globally more than ever before. I cannot name a client who isn't connected with another country when looking at their extended supply chain and the maze of suppliers and customers. Thus, it is worth learning how to effectively navigate these waters!

 

 

 

One tip to implement this week:

 

At first glance, it seems a bit challenging to figure out what can be done in a week. However, since the global supply chain is all around us, it isn't that hard after all. How about we start by taking stock? What connections do you have when thinking globally?

 

Perhaps your company has international locations? Suppliers? Customers? If not, go one layer deeper. Do any of your suppliers have global suppliers? How about your end users? Where are they located? Or do you utilize distribution? Are they global? How about your transportation partners? UPS and FedEx certainly are global! And, let's not forget your trade associations like APICS — they are global. Soon, you'll have an interesting map evolving. Share your findings with your colleagues.

 

Looking for more ideas to keep your supply chain connected? Access more tips and resources on my blog. And keep connected by subscribing to my newsletter and email feed of “I’ve Been Thinking…”

supply chain management.jpgOne of the reasons we attend the APICS International Conference is to understand what is trending in supply chain today. Which topics are "hot"?

1. Logistics - APICS' new certification, CLTD (certified in logistics, transportation and distribution) is the hottest ticket in town. Not only were there many educational sessions about these topics, the APICS Inland Empire chapter gets inquiries every week about it. In today's Amazon-impacted world, logistics is cornerstone to success - how else will you deliver exceptional customer service rapidly and cost-effectively?

2. SIOP (Sales & Operations Planning) - this is near and dear to my heart as a significant portion of LMA Consulting Group's practice focuses on helping clients achieve significant results (growth, service, profit and cash) with SIOP. Check out our proprietary process, 4 EXCEL for driving exponential results with SIOP.

3. Data & the digital world - PwC published a report, "Connect and optimize; The new world of digital operations". We are on the cusp of a digital revolution. It certainly has taken over the e-commerce and distribution world, and now it is taking over manufacturing and supply chains. Mobile technology, big data, the internet of things...

4. Risk - and, let's not forget risk. There are countless risks when looking at your end-to-end supply chain. How can you develop a resilient supply chain? Have you thought about political risks, natural disasters, security risks, financial risks — and the list goes on.

Keep track of what is trending in your business. As my HR mentor used to say, "knowledge is power". Do you have the power? If you'd like to get an assessment of your supply chain performance, contact us.

 

Did you like this article? Continue reading on how to be the Strongest Link in your organization:

 

How to Manage Supply Chain Complexity

 

Is Your Inventory System Working?

Last week, while attending APICS 2016 in Washington DC, I was able to spend time with the West Coast student case competition's winning team, San Diego State University. I am the Chair of the West Coast student case competition, and I was proud to see our team represent us at APICS 2016's global competition. In today's Amazon-impacted world, supply chain management is ever more relevant. And, it was especially exciting that our team made it into the top 5 teams globally — congrats! (See them pictured below after the competition.)

 

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Effectively managing the global supply chain is not only a relevant topic but vital to succeeding in today's marketplace. These students have taken the bull by its horns and are getting ahead of the curve. What executive wouldn't hire these winners on the spot?

 

One tip to implement this week:

 

Similarly to these students, are you thinking of ways to go the extra mile to stand out in the crowd? They were working on their presentation while their buddies were out exploring DC. Yet it will rebound to them in time. What can you do to make a difference and further your education, experience and network?   

 

Similar to these students, do you see it as an exciting opportunity — and turn it into one?! Or, do you see it as a chore? Before turning down ideas from your colleagues, think about the possibilities. If these students had turned down the opportunity to compete, they wouldn't have created one of the most valuable networks possible for their careers. Imagine how far you can go with the "right" perspective!

 

Looking for more ideas to keep your supply chain connected? Access more tips and resources on my blog. And keep connected by subscribing to my newsletter and email feed of “I’ve Been Thinking…”

leadership.jpgAs my HR mentor used to say, "It begins and ends with leadership". After a 25 year plus career with leadership positions in organizations, trade associations, non-profits and more, it is clear that leadership will make or break success.

 

It is interesting the difference leadership can make. We can go to 2 similar clients with similar products, services, systems and resources with the only difference being the leader, and we'll see two vastly different environments. In one case, we will be wildly successful and, in the other, we'll struggle. Even in the best of cases (when they are more closely aligned), one project will have quicker results than the other. 

 

No matter how effective or ineffective the leader, short term results are likely to occur. With focus, things improve. Also, even if the leader has a dictatorial style, he/she can gain short-term results as people do not want to lose their jobs; however, sustainable results will not follow.

 

For example, we've worked with quite a few large complex, global aerospace companies. As is typical with any large, complex organization, the leader of an individual facility will be under pressure to perform. We have seen more than our fair share of General Managers, COO's or Presidents come and go over the years. From time to time, it will be night and day with the change in leadership. One day things seem disorganized and folks are frustrated and struggling on legitimate concerns, and the next, we have direction and clarity. Of course, people do not become less frustrated over night but with clarity and direction, 80% of the people will calm down and performance will improve within a reasonable time frame. The 20% might not be interested in being accountable or they could have crossed the line in terms of frustration levels and need to make a change.

 

Since leadership will make or break success, make it a top priority!

 

Did you like this article? Continue reading on how to Profit Through People:

 

Put Your Eagle Eye on What is #1 to Success - Leadership  

 

Never Stop Learning

Fotolia_102474785_XS.jpgSAP CEO Bill McDermott talked much more than just about data. One of his most compelling stories related to turning around Xerox's lowest performing division and ending the year as #1. Who says success isn't derived from leadership has his/her head buried in the sand.

 

The keys Bill described were quite simple: 1) Listen. 2) Provide the vision and goals. 3) Lead.

 

We believe this proves the premise behind our newsletter, Profit through People — people are any organization's #1 assets! Do you treat your people like assets? Or costs?

 

Bill said that the people at this division were quite disgruntled and specifically upset because the cost cutter that preceded him took away their Christmas party. So, he listened to what they requested — for him to communicate clearly what he wanted and for him to give them their party back.

 

The next day he stood before them and told them that he had booked the best place in town for the party, and he gave them his vision for the future. He accompanied that with the BIG goal of going from last place to 1st place by the end of the year. And then he supported them — and LED.

 

Guess which division ended the year in 1st place? Theirs!

 

As my HR mentor used to say, leadership will make or break success. Bill proved this theory. Will you?

 

Did you like this article? Continue reading on how to strengthen your Eagle Eye:

 

It Begins and Ends with Leadership

 

The Hidden Benefit of Observation

 

Fotolia_121839635_XS.jpgEvery week is busy, don’t you think? We always think next week will be better, but is it? Doubtful. Another corporate priority arises. A customer wants to tour your facility. An employee calls in sick. Month-end reports are due. We are bombarded with data. Who knows what else might happen! If this is the status quo, the key is how to lead effectively during these busy times.

 

We have found that it is most effective to go against the tide. Haven’t you found that the most successful person is zigging when everyone else is zagging? Certainly in almost every stock market crash, everyone was in a panic to buy while the market was hot. So, how do we go against the tide with leadership during busy times? Remain calm.

 

Our clients with the best leaders remain calm under the most pressing of circumstances. Of course, when it rains, it pours. Thus, customers will not spread their issues out evenly throughout your week. Your machines will all break down at once – on 2nd shift when your supervisor calls in sick. How can we encourage our teams to remain calm yet act aggressively and proactively to resolve issues and raise the bar? Have you thought about implementing standards and processes? However, they will fail miserably without consistent leadership to back them up. Build resilience and flexibility into them. Stay on top of what is happening. Monitor progress. Celebrate successes. Provide opportunities for your people to succeed. Most will rise to the occasion.

 

Did you like this article? Continue reading on how to Profit Through People:

 

Put Your Eagle Eye on What's Key to Success-Leadership

 

10 Ways to Stay Focused on the Critical Path