Category: Communication

A Pathway to Wisdom in the Business World

Mike 0 Comment Collaboration, Communication, Continuous improvement, Expert Advice, Uncategorized , , , ,
Businesswoman in office drinking coffee and looking at computer

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Wisdom equals knowledge plus courage. You have to not only know what to do and when to do it, but you have to also be brave enough to follow through. – Jarod Kintz

Perhaps we think of the workplace as being too busy to spend time learning. But if we are wise, we will use every opportunity to gain knowledge. Here are some tips on how to gain wisdom during the time we spend at work:

  • Never stop learning / learn from diverse sources

Be open to learning in non-traditional ways. New information can come from sources other than books or training seminars. Being open minded and steadfastly curious will create a pathway to continuous learning. For more on this, check out my post Work and Jazz on how guitar lessons helped me understand my learning style and how to get outside of my comfort zone:

  • Find ways to apply your knowledge

Driving change and improving systems and processes is an important role for each member of a business team. Knowing that status quo is an undesirable state helps to create an environment for continuous improvement. Finding ways to drive tangible, positive change with newly found knowledge should be in the business DNA of each employee and influence his or her ways of working. Always be looking for ways to apply your learning.

  • Use new and emerging technologies to enhance your knowledge

Having an open mind about continuous learning includes embracing technology and being open to using new tools to gain knowledge. The features of today’s hand-held devices, such as smartphones and tablets, are amazing. Wifi and streaming video services have made learning much more accessible because it can take place on our individual schedules. The variety of ‘platforms’ available for learning seems limitless and will continue to grow. If trying new technology is difficult for you, find ways to understand it and become more comfortable. Being on the cutting edge can be very exciting.

  • Gather support along the way and take risks

In the business world, risk-taking is viewed differently in every organization and even varies within organizations from department to department. As we learn more and consider the use of new tools to improve systems and processes, it often takes a mentor or sponsor to gain support for improvement projects or process enhancements. Depending on the perceived risk level, getting the boss to ‘try’ something new can be very challenging. However, developing the supporting justification for a change and finding the courage to ask for support will show dedication and initiative.

  • Follow through on plans and actions

Ideas and plans are nice to have, however putting them into action will take considerable effort and courage. The people in the organization who develop the vision, generate an action plan, gather support, and then execute these plans effectively will be extremely valuable.

In the workplace, wisdom is gained by those who remain curious, stay open to new ideas, find support, and successfully execute their plans. In the business world, as in the world outside of work, the pathway to wisdom is a journey we can choose. May you find your own path to wisdom.

 

Photo credit: Depositphotos.com #73412631 gustavofrazao

Who Drives Vision to Reality?

Mike 0 Comment Collaboration, Communication, Continuous improvement, Expert Advice, Management Skills, Metrics, Project Management, Uncategorized , , , ,

Hand holding classic Edison light bulb

Thomas Edison was a visionary, and one of the most influential people in modern human history because he understood the effort it took to successfully execute a vision.

Vision without execution is delusion. Thomas Edison

During my 30 plus years in a large corporation, I worked with many people who had vision but not everyone was able to turn their vision into reality. Although it is true that in many organizations Leadership is responsible for developing the vision, implementing their plans was usually left to others in the organization. Unfortunately, if a solid connection was not made between Leadership’s vision and the plan for execution, the project wouldn’t succeed.

 I’ve had the good fortune to work on several successful teams and it became clear to me that the success of a project was usually a function of Who was on the team. I noticed the successful team members consistently took the following action steps:

  • Connected the vision to the work. The team members who were successful at execution were able to connect the project’s goal (vision) to their current work and the overall success of the organization. The path was clear to them on how the vision could be achieved and how it would positively impact their jobs and the success of the company.
  • Developed an effective plan. Successful members were well organized and able to develop an effective plan for themselves and enlist their teammates in the effort. Their plans for success were well documented and communicated to the team. This communication fostered a sense of ownership and a feeling of transparency that was inherently healthy.
  • Obtained access to accurate and timely data. Success was possible when accurate information and data were readily available. The successful team member knew how to obtain and use the information effectively to drive the project. Those who were able to execute the plans were well versed in using the data management tools available to them. If the tools weren’t available, they would develop their own set of tools that made gathering data and reporting very efficient.
  • Provided clear and concise communication with all stakeholders. This means they developed and published the progress of the project to all interested parties. Communicating pertinent information on a timely basis allowed for discussion of the results and insights. If the information was clear, complete, and concise, it provided guidance to Leadership and facilitated an honest discussion of the project’s progress. In this environment, the project had a greater chance of success.

A team member who understood the planning and hard work it took to achieve the vision got noticed and was always given more opportunities to be successful.

Thomas Edison had many quotes, but this one pulls it all together: Opportunity is missed by most people because it is dressed in overalls and looks like work.

 

Photo credit: Depositphotos.com 85115774 4masik

What is in Season?

Mike 0 Comment Business Forecast, Collaboration, Communication, Expert Advice, Uncategorized , , , , , , , ,

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In 1965, a folk-rock band, ‘The Byrds’, recorded their version of Pete Seeger’s song, ‘Turn, Turn, Turn’. The lyrics refer to there being a time for many activities and events, including a time to plant and a time to harvest. Although I’ve heard the song hundreds of times over the years, it had a new meaning for me when I became a supply chain manager.

Consumers want the freshest food possible, necessitating that manufacturers maintain the freshest inventory possible. This is especially true for fruits and vegetables used in processed or semi-processed foods. If these fruits and vegetables are grown in specific geographies, it can be very difficult to maintain a fresh inventory year round. Under these circumstances, purchasing the correct amount of these items is a challenge, and not having enough material to cover the requirements before the next harvest is an obvious problem. Conversely, purchasing too much material can be a problem if the shelf-life of perishable items expires before they can be utilized.

One of the biggest challenges of my career was managing the inventory of perishable materials. My colleagues and I developed a system for calculating the quantity of material to be purchased based on when new material needed to be contracted/purchased and the forecasted rate of the material’s consumption in the production of finished goods.

We determined that it worked best for the people in charge of procurement to frequently talk directly with operations people who have knowledge of the business and production planning. This not only guaranteed the freshest possible product for our customers, it reduced financial losses due to expired materials. It also minimized the need to make emergency purchases at a higher cost on the spot market to make up for shortfalls in the inventory. To facilitate these discussions, we developed a sophisticated spreadsheet tool to capture pertinent information.

Based on our experience, here are the recommended steps for developing an inventory management tool and using it to plan the best purchasing strategy for your business.

  1. Establish the parameters for product availability

List all of the items to be purchased and then answer a few simple questions about everything on the list: What is the shelf life of the material? Where is the item grown? Is it available from sources outside of your country? Is it available in the opposite hemisphere, i.e., if you are located in the northern hemisphere, can the item be grown in the southern hemisphere and shipped economically to your location? Once this information is developed, the purchasing plan can be established.

  1. Develop a consumption model

To predict the consumption of the material, a model will be required to show the projected inventory level of each item. This will require the production forecast by month, and the amount of material used in each finished good item to calculate the usage. Monthly consumption is the most convenient way to view the information. When developing the model, a ‘loss factor’ should be added to the formula to account for material wasted or damaged during storage and/or manufacturing. If the material is used in multiple finished good items, cumulative usage should be tracked and reported as a single number.

  1. Develop the inventory model

 Utilize the product availability parameters (step 1) and consumption model (step 2) to set up a tool that will show the inventory levels at the beginning or end of each month. The third variable in the inventory model should show the contracted quantities and when the material is available for usage.

Combining the inventory, consumption, and purchase quantity will generate a ‘strategic’ view of the available inventory over time. Understanding the strategic view of the inventory will indicate when to purchase the material again in the future.

Once the inventory model is working and actual inventories are updated each month, the inventory levels can be predicted for each time period. Management can then determine if there is a risk of running out of materials or conversely, predict if there will be excess material left over that will expire before it can be used. Examples of an annual purchase and semi-annual purchase inventory model are shown below:

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  1. Review Inventory and Adjust Purchasing Strategy

The most important step of this process is for the appropriate parties to review the inventory positions on a monthly basis, even if the purchase date is several months away. For example, if sales are not going as planned, then a strategy can be developed to manage the potential issues of running out of material prematurely or having excess material that will expire and cannot be used. Ideally the Operations group will know how sales are trending and this intelligence can be brought to the attention of the Procurement group.

  1. Establish Timetables for Making a Purchase Decision

The process works well when a timetable is developed for each item. In general, the process is to jointly review the inventory plan and forecast 3 months prior to when the material is available for purchase. The forecast should be verified with the Production Planning/Scheduling department two months prior to contracting the item. This gives Procurement enough time to develop the quantity requirements and negotiation strategy to be executed in the month prior to the delivery on the contract.

Some companies may have ERP/MRP systems that will generate similar information for a material, however, it is important to have a tool to facilitate the discussions between Procurement and Operations. These discussions need to take place with some frequency to ensure necessary adaptations to business plans.

It may take a few months to develop and launch this entire process, but once it is running and the monthly review of inventory is taking place between Procurement and Operations, the benefits are substantial. Having a sensitive and efficient process for updating the consumption model and the inventory model is key to success. Accurate and timely information will lead to better decisions and improved business results.

It is safe to say that the Byrds were not thinking about inventory position and consumption models when they recorded one of their most famous songs, but it’s easy to hear the wisdom in their chorus:

‘There is a season – turn, turn, turn

And a time to every purpose under heaven’

 

 

 

 

Is Your Forest Too Dense? Part 4

Mike 0 Comment Communication, Expert Advice , , , , ,

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Effective Communication

If you haven’t had a chance to read the first three entries of this series, click here for Part 1, here for Part 2, and here for Part 3.

Your ability to communicate is an important tool in your pursuit of your goals, whether it is with your family, your co-workers or your clients and customers. – Les Brown

One thing that will help an organization as they navigate through a dense forest, aka the busy organization, is communication. Leadership must communicate effectively with everyone in the group to keep the team on the right path.

Leadership has many responsibilities that normally include generating reports and performing analysis showing their team’s progress toward meeting organizational goals. Unfortunately, these responsibilities leave little time to communicate with co-workers.

Here are 3 suggestions for enhancing communication that will improve the overall effectiveness and focus of the team.

  1. Conduct meaningful and effective meetings

If a meeting must be held, then the meetings should be considered by all in attendance to be productive and worthwhile before and after the meeting. As the meeting leader, conducting efficient and meaningful meetings boils down to a few principles:

  • Always have a clearly defined, well communicated reason for each meeting.
  • Set up an agenda that spells out who is responsible for providing information at the meeting.
  • Send out the meeting invitation as far in advance as possible so everyone can plan for it.
  • Be respectful of participants’ time by staying within the time set for the meeting.
  • At the end of the meeting, summarize the action steps and write down who is responsible for the action as well as when it is expected to be completed. Use this as the guide to check the progress of each action.

2. Set up a weekly check-in with each employee

Scheduling time every week for a quick discussion between the manager and each team member will be beneficial to both parties. There should be a simple agenda that includes the status of each project or work-stream and any potential issues. It is also a time to discuss any changes from the management perspective that will possibly impact the team member’s activities.

Once these weekly meetings are established, they become very efficient, and they can reduce the number of surprises on both sides of the relationship.

  3. Publish organizational performance results periodically

Placing a team member (preferably not Management) in charge of communicating the team’s results versus targets and metrics on a periodic basis. Knowing how well the team is performing against established goals and targets will provide motivation. Assigning a non-management team member to track and post the results in a graphical form, e.g., charts or graphs, sends a signal to the team that there is no ‘spin’ to the information being presented.

In today’s world, there are many distractions as well as a multitude of internal activities everyone on the team is expected to manage day in and day out. Hopefully the tips and recommendations in this blog series will help thin out your forest and make it a little easier to see where you and your team are going.

Photo credit: Depositphotos #33835739 by Londondeposit