Category: Expert Advice

Jazz and Work – Second Verse

mcalisterts 0 Comment Expert Advice, Management Skills , , , , ,

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Playing in harmony with a band is a great experience. When the band sounds good and you are doing your part to contribute, there is no better feeling in the world. Good Jazz played well is gratifying not only to the players, but the audience will enjoy the performance as well.

“It’s the group sound that’s important, even when you’re playing a solo. You not only have to know your own instrument, you must know the others and how to back them up at all times. That’s jazz.” Oscar Peterson

Harmony Within the Group

When I acquired a beautiful, new guitar I had the appearance of a good player (at least in my mind), but that didn’t translate to actually being a good player. This applies to the work environment as well. The new person needs to ‘play’ their way into the group and earn their respect. Being too flashy or loud will not work well. Taking time to learn the style of the other players and supporting them as they support you will maintain the group’s harmony.

As one of the veterans within the organization, I took responsibility for helping new employees acclimate to the group. There was a formal orientation program, but as most of us know, it takes months to get into the groove and feel productive. I told new employees that my door was open and if they had questions about the job or the organization they should feel free to stop by and chat. Serving as a mentor, formally or informally, will improve the overall performance of the group.

Practice Makes Perfect

Great Jazz musicians continually challenge themselves to be better, practicing their craft so they are ready for the next performance and will be at their best at all times.

Jazz great Wynton Marsalis tells this story about another amazing musician, Dizzy Gillespie. As a young man Dizzy was a good player, but when he joined a jam session with some seasoned players, he found out he wasn’t prepared. He knew a particular song in one key, but when the group played it in a different key, Dizzy was lost. Not wanting to be embarrassed again, Dizzy went home and practiced the song in all 12 keys, so that next time he was in a jam session, he would be able to play.

When it comes to performing at a high level on the job, the same applies. We need to understand exactly what we are expected to do and to perform at a high level, regardless of the situation. We do best when we attend training sessions and seminars to enhance our knowledge, and continually hone our fundamental skills to be ready for any contingency.

Be Ready to Play Your Solo

Most jazz songs have a basic structure. The melody, or ‘head’, is played at the beginning of the song. The middle of the song will have solos, usually improvisations by the band members. At the end of the song the melody is usually played again and the song ends with a flourish.

There is an expectation in the group that during the solo section of the song, everyone will take their turn to show their stuff. They may play a modified version of the melody or something completely different within the structure of the song. There are many famous solos in songs we have all heard, such as Gene Krupa’s drum solo in Benny Goodman’s famous song, ‘Sing, Sing, Sing’. (Check out this link if the title doesn’t ring a bell for you: Benny Goodman link   In the jazz world, most ensemble players are excellent solo players and improvisers when it’s their time to play.

In an organizational sense, whenever we are part of a team, we are going to be asked to step up and ‘show our stuff’ from time to time. We may be asked to lead a project or put a special presentation together for upper management. We need to be ready to play the lead when we are called upon.

Understand your optimal learning mode. Recognize the simplicity and complexity of the organization. Continually practice your craft. Play in harmony to make your group sound great. Perform memorable solos when it’s your turn to step up. Keep these insights in mind and you will be a star when it’s your time to shine!

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P.S. I would like to add that I will be forever indebted to my amazing guitar teacher, Steve Johnson, for getting me started on a journey that will no doubt enrich my life for as long as my fingers can pluck the strings…

Photo credit: Depositphotos.com #3267295 by vikhr15

Video credit: OnlyJazzHQ, Feb. 5, 2013, Benny Goodman – Sing Sing Sing retrieved from https://www.youtube.com/watch?v=6_YG9XBX04Y

Work and Jazz – First Verse

mcalisterts 1 Comment Collaboration, Expert Advice, Management Skills , , , ,

jazz guitar player

Although I started playing guitar when I was 13, I took my first formal guitar lessons as an adult. Along with learning about Jazz and improving my guitar playing skills, I have noticed several parallels between Jazz guitar, learning styles and successful teamwork.

Learning Style – Understanding How to Learn and Teach

The most commonly discussed modes for learning, are Visual, Auditory, and Tactile. It turns out I’m mostly a visual learner. I have discovered that even after hearing a guitar lick many times, the only way I can reproduce it is by watching my fingers make the correct movements on the strings. Although playing guitar requires auditory skill, I primarily learn how by seeing my fingers move on the fret board of my guitar.

This got me thinking about the training I’ve received over the years; the most effective method for me was hands-on. Listening to an instructor explain how to use the system did not work for me, but using software with dummy data, I could see the system perform the task, and effectively learn it myself.

Knowing how we learn, and looking for training programs tailored to that learning mode can enhance our job performance. It is also important to keep learning modes in mind when putting together training programs for others. If we expect to successfully teach our audience a task, the procedures must be presented in all modes: auditory, visual, and tactile.

Jazz – Simultaneously Simple and Complex

Most of the basic rules for music are not particularly difficult to understand. Jazz uses a subset of the rules that make jazz what it is, but once these rules are understood, the chords and melody for most jazz standards are relatively simple songs that a novice can play. However, advanced Jazz players understand the subtlety of the structure and are able to enhance the music with their own personality and style. They understand how to improvise around the melody and use chord substitution to create a much richer version of the song.

Work organizations, like Jazz bands, follow relatively simple rules of operation and protocol that are easy to learn. However, it is within the basic work structure that high performers understand the complexity of the organization and how to enhance operations with their own personalities and style. In the example below, I followed the basic rules of the organization and worked with all of the appropriate people to get answers to my questions. My experience and understanding of the operations was useful because I knew the right questions to ask of my co-workers.

  • At one point in my career I was in charge of investigating consumer complaints. Based on my experience, I knew that there could be many facets of the situation that possibly contributed to the complaint. I worked closely with various co-workers to obtain additional information such as production data, maintenance logs, and the results of raw material inspections. By performing this level of ‘due diligence’, every consumer complaint was viewed as an opportunity to ensure all procedures are being followed and to ultimately enhance the overall strength of brand.

Look for my next blog as I continue my thoughts on work and Jazz.

Photo credit: Depositphotos.com 46950533 by estudiosaavedra

Build Bridges of Understanding – Part 2

mcalisterts 0 Comment Case Studies, Collaboration, Expert Advice, Food Safety, Management Skills, Uncategorized , , , , , , ,

Find the Answer - Magnifying Glass

 

 

 

 

Building Bridges Part 1 addressed how to gather useful information by having honest conversations with the people involved in the issue. Gathering as much information as possible was the key to determining exactly what happened. However, fact gathering is only a part of the process; it is equally important to implement improvements based on the information.

The highest levels of performance come to people who are centered, intuitive, creative, and reflective – people who know to see a problem as an opportunity. – Deepak Chopra

Here was the journey we took to solve the problem described in Part 1.

Once we gathered the preliminary information, we decided that the issue was most likely related to the raw material handling process. As we dug into the details of how the raw materials were handled we started asking questions such as, “how could one raw material be introduced into another raw material?”

We then discussed scenarios in which the offending material might have been introduced into a ‘common’ raw material, and developed one such scenario:

Contamination may occur when an offending allergen (seafood) attached itself to a common ingredient (pasta) because it was unsuccessfully separated out during the ‘re-work’ process (used to reclaim raw materials from damaged packages). When the ‘contaminated’ pasta was used again, it was used as raw material for a product that didn’t contain seafood. Thus, the process for re-using raw materials from damaged packages would have created the situation where unwanted ingredients were inadvertently mixed into the raw material.

As we talked through this scenario, we realized that a process intended to avoid wasting materials, actually put the product at risk. Armed with this information, we were able to determine the most likely root cause for the issue.

We were now presented with the ‘opportunity’ to eliminate the potential for contamination. This would involve changes in the material handling procedures and a commitment to a training program for the workers who manage the tracking paperwork. The owner of the business was amenable to the changes; peace of mind about the safety of his products was well worth any additional expense. The changes were effective. Millions of packages were consumed over the next 15 years without incident.

To summarize, here’s the entire process:

  1. Open up an honest and in-depth discussion about the situation and ensure everyone involved is on the same page. Establish the goal of the discussion and keep it in mind the entire time.
  2. As the discussion leads to various possible scenarios that could explain what occurred, critically and thoroughly review the scenarios – the smallest detail can lead to the smoking gun.
  3. Once the root cause is determined and verified, develop ‘fool-proof’ procedures to ensure the issue cannot re-occur. These new procedures must be audited to ensure they truly eliminate the potential issue.
  4. Discuss the rationale for making procedural changes with the production workers and supervision. Let them know why it is so important to follow the new procedures and how they can help keep the product safe.

I have always believed that “all of us are smarter than one of us”. In the end, because my team had the trust of the owner and his team, we were able to resolve the issue together.

To boil it down: focus on getting accurate, detailed information at the beginning of the process. Once the information is gathered, let your intuition guide you toward the next steps, such as brainstorming about scenarios. Once logical opportunities are presented, go out and test them. You will find out quickly if the situation can be recreated. Lastly, work out new procedures or policies that will effectively eliminate the problem.

Successful problem-solving starts with building bridges of understanding. Mr. Carnegie put it into words over 75 years ago and his words ring true today.

 

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Build Bridges of Understanding – Part 1

mcalisterts 0 Comment Case Studies, Collaboration, Expert Advice, Food Safety, Management Skills , , , , ,

Person on bridge helping another

 

 

 

 

Investigating major quality problems can be a difficult task. I think I speak for most workers; people don’t like to ‘get in trouble’, especially on the job. Whether negligence is involved or not, gathering useful information can be a challenge. However, in order to correct the situation and prevent it from happening again, it is extremely important to determine exactly what happened.

In my experience, the success of an investigation usually depends upon the investigator’s ability to put workers at ease. This helps the process to move quickly and thoroughly, resulting in accurate identification of the problems and rapid resolution.

Dale Carnegie recommends listening first, particularly in a tense situation.

“Let them finish. Do not resist, defend or debate. This only raises barriers. Try to build bridges of understanding. Dale Carnegie – Goodreads.com link

When trying to solve a serious problem, getting the full story with as much detail as possible is very important. Channeling Mr. Carnegie’s term, always attempt to “…build bridges of understanding”.

The three steps below are useful in the initial stages of the investigation

  1. Preface the discussions with the people involved
    • Let the interviewee know that all information is helpful toward resolving the issue completely.
    • Help them understand they are part of the solution, not part of the problem.
    • Make the discussion as non-emotional as possible. Let the person being interviewed know that the discussion is strictly intended for gathering facts and not meant to find someone to blame for the issue.
    • Mention that it is very seldom a single act or situation that caused the problem and their input is needed to be able to assemble the ‘pieces of the puzzle’ to resolve the issue once and for all.
  2. Establish the timeline based on facts
    • When did the situation occur?
    • What equipment or process was involved?
    • Explore any unusual circumstances taking place at the time of the incident.
    • Who else would have been in the area when the problem occurred that could add more information?
    • If the interview process uncovers multiple sources of the problem, collate all of the information into a single timeline listing all of the discrete times, places, and people involved in the issue.
  3. Once the basic causes are worked out set up a meeting with the appropriate personnel to perform a root cause analysis (to be discussed in Part 2).

Over 15 years ago I had a situation where I used the steps above to gather critical information necessary to resolve a complicated quality issue. A third party manufactured a finished product for our company and unfortunately the product was contaminated with an undeclared allergen. This was an extremely dangerous situation for someone who was highly allergic to the material, and a nationwide recall was performed. Thankfully nobody was ever injured as a result of this issue.

Immediately after the discovery of the problem (and a separate team had quickly initiated the recall), I was sent to the manufacturer to determine what happened and implement new procedures to prevent it from happening again. From the very beginning it was clear that this investigation was going to be challenging. From a practical perspective it was going to be costly; the situation would most likely result in a major insurance settlement (best case) or a significant legal proceeding (worst case).

The first thing I did was schedule a meeting with the owner at the company. The purpose of the meeting was to lay out the intent of my visit and the expected outcomes. In this case, it seemed straight-forward: determine exactly what happened and establish new procedures that would prevent it from happening again. I made it clear that my focus was on determining the root cause without assigning blame. I also made it clear that the information gathered during the investigation would be shared with the owner prior to communicating it to my management. I wanted the owner to agree that the information being communicated was factual and unbiased before it was distributed to anyone else.

I believe by establishing these ‘ground rules’ up front, it helped the owner to feel more comfortable disclosing all of the facts. He also encouraged his employees to fully cooperate in the investigation by saying that all information would be important in resolving the issue.

The interview process took place and a comprehensive timeline was developed. With this information we were able to initiate a successful root cause analysis and determine exactly how the product was contaminated. I will describe the root cause analysis process and ultimate resolution to the problem in Part 2.

Establishing open communication, ground rules, and transparency at the start, was key to expediting a successful investigation. This enabled us to ‘build bridges of understanding’.

Look to Part 2 for the results of the interviews, the root cause process and how we worked together to correct the situation permanently.

 

Photo credit: Depositphotos.com Image 11826066 by 6kor3dos

Dreamer or Doer: Who Do You Need in Your Organization

mcalisterts 0 Comment Expert Advice, Management Skills , , , ,

Dream Big Work Hard Concept

The world needs Dreamers and the world needs Doers. But above all, the world needs Dreamers who Do. Sarah Ban Breathnach.

Over the years, as I watched people flourish or flounder at work, I witnessed the degree to which success is dependent upon a good fit between workers and their role in the organization. I found there are two characteristics essential to success in any organization: dreaming and doing. We are all Dreamers and Doers to some extent, however most of us tend to lean a little more one way than the other.

When hiring new employees or considering a change for current employees, it’s a good idea to gauge the degree of Dreamer/Doer requirements of the position. A successful fit is almost always related to how a person’s Dreamer/Doer ratio aligns with their role. Dreamer roles tend to require more creativity, and Doer roles, more routine.

The charts below illustrate the Dreamer/Doer ratios for positions in a supply chain company:

Screen Shot 2015-07-27 at 3.32.42 PM

  • A Material Planner is responsible for ordering materials needed for production. Usually the information comes from a system (e.g., MRP) and then the raw materials are ordered through the procurement system. Accuracy and consistency are essential to successfully executing the process every day to keep the production lines running. (Strong Doer)
  • A Planning Manager needs to be a creative problem solver in order to resolve issues that arise everyday. They must also be strong communicators and be able to work effectively and efficiently. (Strong Dreamer)
  • A Director of Logistics must develop innovative ways to improve the overall efficiency of the supply chain. People who have risen to this level have done so because of their strengths in both practical and creative arenas. (Strong Doer/Dreamer)

Here are a few characteristics of Dreamers and Doers that may be helpful when determining the ratio of potential candidates:

Characteristics of an effective Dreamer

  • Candidates with experience in finding creative ways to use technology are dreamers. Various technologies continue to grow at an exponential rate. The companies with employees who find ways to leverage emerging technology will be leaders in their field. For example, new technologies exist in the form of improved hardware and software that allow for better, quicker decision-making. Companies who work out innovative ways to use this technology will have a competitive advantage.
  • Candidates who know how to gather and analyze data are effective Dreamers. For example, the Dreamers who have found innovative ways to optimize networks or systems will be extremely valuable in most organizations. Having the ability to review complex data analyses and provide solid recommendations for enhancements is always an excellent capability.

Characteristics of a strong Doer

  • Candidates with meaningful experiences as leaders, as well as working on successful teams, are strong Doers. Those who have demonstrated strong leadership skills in difficult situations are extremely valuable. When it comes to executing plans, I personally found the candidates who put a plan together, and then rolled up their sleeves to fully support the team, were going to be successful in the organization.
  • Candidates willing to take on difficult challenges and work outside their comfort zone are strong Doers. People who are ‘comfortable being uncomfortable’ are most likely to adapt and take on new challenges, as well as to grow within the organization.

One last consideration is to gauge a candidate’s ability (or willingness) to adjust their Dreamer/Doer ratio as they move up in the organization. Knowing that the roles at the various levels of the organization will require varying amounts of Dreamer/Doer, it’s important when hiring ‘high potential’ future leaders that they show the ability to ‘do’ as well as the ability to ‘dream’.

It takes a little practice and patience to get to know a person’s ‘ratio’ but once it is understood, there will be an improvement in success rate of the candidates.

Photo credit: Depositphotos.com #57460535 LlianaMihaleva

Are You Painting a Clear Picture?

mcalisterts 0 Comment Business Forecast, Case Studies, Expert Advice, Uncategorized , , , ,

Woman standing in the gallery

As my department worked through a crisis several years back, I discovered that the information we needed was not available in a format that would help us resolve the issues. Due to the nature of the crisis, and the need to communicate information inside the company and to our customers, I found a way to assemble a large amount of data into a single, concise communication that made sense to everyone, not just supply chain people.

“Every now and then one paints a picture that seems to have opened a door and serves as a stepping stone to other things.” ― Pablo Picasso

I have a feeling that Picasso wasn’t thinking about customer service when he said this, but I like his sentiment. If painting ‘pictures’ can serve as stepping-stones, then they can help us move on to bigger and better things.

I was the Supply Chain manager when a production issue necessitated a massive recall for half of the existing inventory in my category. The production network was running at 100% capacity when the problem occurred so we all knew it would take time to recover. The million dollar question (literally) was how long would the situation affect our customers? A few weeks? Several months? As you might imagine, our customers were not going to accept an answer of ‘we aren’t sure when you will get your product.’ I asked my planner for a report that would show the weekly inventory position for every item for the next 13 weeks, and I was told the planning system was not able to generate such a comprehensive view.

Since a problem of this size was new for me, I asked my compatriots for examples of how to manage such a major problem. Unfortunately, I was only greeted with kind words of support. It turned out that nobody on the staff had dealt with a problem this large before and no template was available.

It was clear that we needed to develop a method for communicating the status of the inventory, and here are the steps my team and I took to ‘paint a picture’ that would generate useful information for Management and ultimately our customers.

  1. Determine what information is available from the planning system, and how to download it into a spreadsheet.
  • Weekly production plans were available in the supply planning system, however a complete view of the inventory position was not available in a single report. This was a quirk of the system, and getting individual items to aggregate into a single report was something I.T. was not willing to tackle, regardless of the circumstances.
  • We found that the individual item information could be downloaded from the planning system, however, this report included raw data showing the current inventory and planned production quantities along with other pieces of extraneous data. Using an ‘intermediate’ spreadsheet, we extracted and formatted the information needed for the next step.
  1. Once the data is in a spreadsheet, determine how to format the information to accurately tell the story
  • Within our company, most people understood the inventory position in terms of ‘days of coverage’. For the purposes of communication, we needed to put several of the items on a single page, to see the overall effect of the production plan. The most accurate way to calculate the inventory coverage was to develop a formula that used 1) the inventory available at the beginning of the week, 2) the production plan, and 3) the demand forecast, in order to calculate the theoretical days of coverage in the inventory each week going forward.
  • Once the formulae were set up to calculate days of supply for the next 13 weeks, we determined it would be helpful to color-code the information to generate a way to identify issues more easily. This is where the ‘stop-light’ formatting for each cell was used; with green being considered ‘good’ inventory levels, yellow considered ‘risky’ or potentially problematic, and red being ‘bad’ or definite customer service problems. We also used blue to indicate if the inventory was above target.
  1. Develop a view that provides information for driving decision-making.
  • Once the data was verified and the color-coding applied, we assembled a view to show the ‘days of supply’ for all items for the upcoming 13 weeks. It indicated that it would take over two months for the inventory to completely recover. (The chart below is a simulation of the initial inventory positions we discovered. It does not use the actual data.)
  • With the inventory projection view finally in place, we could discuss various production options, such as delaying the production of less popular (slower moving) items, and risking some case fill issues, while producing larger volumes of the more popular items. A few scenarios were presented to management for their review and decisions were made regarding the information to be shared with customers. Now we could show our customers when they could expect the product back on their shelves.

Mock DOH Chart 121514

Prior to developing this methodology, we were making educated guesses about the timing of the recovery. For the most part, these guesses were inaccurate, frustrating management and our customers alike. Having much more accurate and comprehensive days of supply information available was extremely helpful to the Sales team and our customers. Armed with this information customers could find ways to work around the gaps on their shelves.

At the end of the day, a clear picture of bad news was better than not knowing when customer service would recover. With a chart like the one above, we were able to have meaningful and honest discussions with our customers. Sharing accurate information, even if it is not good news, is the key to building trust between organizations.

Picasso was certainly correct about a picture serving as a stepping-stone. We found a way to move forward with our customers once we generated a clear picture of the situation.

 

Photo credit: depositphotos.com image:26852525 by: semisatch

Spending Enough Time on Your Message?

mcalisterts 0 Comment Expert Advice, Management Skills , ,

Depositphotos_55493215_xs

I had a friend who was a Methodist minister and he once told me that a good preacher would spend one-third of his time working on his weekly sermon. My initial reaction was that this seemed like a lot of time to spend on a 15-20 minute ‘speech’, but the more I thought about it, the more sense it made. To keep the parishioners headed in the right direction, the message needed to be inspiring and meaningful. If the message is going to have a positive impact on the listener, the speaker needs to make sure they give themselves a lot of time to think about the point they want to make. Putting this in a more secular perspective, it is very important to ‘sit and think’ about the messages we use to inspire those who work for us.

With so many ways for us to receive messages these days, it is especially important that we, as leaders, become more effective at developing and delivering our message. During the times we are the busiest, it is extremely important to get our message to our teams in the most effective manner possible. From a practical perspective, being an effective communicator and leader becomes an exercise in time management.

A few years ago I was asked to take on a large amount of additional work. At that time I was running the supply chain for one business, and was asked to take on a second business. I wanted to accept this challenge because this business had been my responsibility in the past and I had an emotional attachment to it.

This ‘dual’ business management scenario re-emphasized the need to prioritize my time and make sure I provided clear direction to both of my teams, while satisfying the needs of my internal customers.

You get to decide where your time goes. You can either spend it moving forward, or you can spend it putting out fires. You decide. And if you don’t decide, others will decide for you.” ― Tony Morgan

During this hectic time, I started my workdays with every intention of spending at least the first 30 minutes planning the day. Though I started an hour before most people got to work, things always happened that required my immediate attention, and burned through my planning time.

When I was in firefighting mode, other important work that wasn’t urgent, didn’t get done, and this ‘slippage’ created situations that would require even more firefighting in the future. It was a vicious cycle: firefighting led to more firefighting. If time was not being set aside to trouble-shoot and correct the issues causing the problems, the situation was going to deteriorate. Sound familiar?

Knowing it was very important to craft my message for my team, I had to make a conscious effort to find the time for planning and setting direction. I found a few basic time-management principles that helped me push the pile forward.

  1. Find a strategy to categorize your activities. One method was dividing up daily tasks into 4 categories: Q1 – Important and Urgent; Q2 – Important but Not Urgent; Q3 – Not Important and Urgent; Q4 – Not Important and Not Urgent. Once the activities are sorted, one can decide which tasks to attack. My familiarity with this methodology was from a time management course I took based on Steven Covey’s model. One of the primary recommendations of this method is to make sure there is a sincere attempt to focus time on the Q2 items, which were ‘Important, but Not Urgent’. Examples of these activities were physical exercise, reading industry-related articles for ideas, and taking time to evaluate and develop your own career. For more information on this concept, take a look at a great article from Sid Savarra that describes the quadrants and how your activities can be categorized. Covey’s Time Management matrix.
  1. Focus on understanding where your time goes every day. If you track your activities for a few days, you can start to see what is taking up your time. Once you have a list, evaluate whether or not the activity will help you make progress. Looking at situations and tasks we are asked to address with this ‘go / no go’ perspective can help sort out the non-value added tasks. For example, attending a Marketing update meeting on changing advertising agency strategies was not going to impact how the supply chain operated. However, if the marketing strategy was to increase the amount of money spent advertising, then the discussion was very worthwhile and would have an impact on the supply chain.
  1. Enlist your boss to help prioritize the activities. About once a week I had discussions with my boss regarding all of the activities on my list, identifying the ones I felt would not help the business make progress. Most bosses are interested in making progress and are amenable to worthwhile suggestions. Even if they want everything on the list to be done, they will help prioritize the work. These meetings are also a good time to keep your boss updated on the progress of each activity.

In the end, I would block out time on my schedule for planning every day. I would go ‘radio silent’ during this time and only answer the phone if it was an important caller, i.e. the boss or my wife. I may not have been able to spend a third of my time on the message, but the more time I spent on it, the better my team responded and the more we accomplished. In the end, making the time to ‘sit and think’ was always worthwhile.

 

Yoda was Right

mcalisterts 0 Comment Collaboration, Expert Advice, Management Skills, Uncategorized , , ,

Yoda figure and moss. Ecology Concept

Do or do not. There is no try. Yoda – The Empire Strikes Back

In the spring of 1977 I waited in line with hundreds of other fans for Star Wars tickets at a movie theater in Omaha. What was going to be so special about a wayward kid, a scoundrel, two robots, and a damsel in distress? I had heard this movie was ground-breaking, and that George Lucas worked hard to convince the Hollywood establishment that an audience existed for high quality science fiction.

Lucas and his team may have used Yoda’s words as their battle cry to drive their vision and plans to change how people experienced movies. Star Wars was a game changer and it took a huge commitment to pull it off. As a science fiction fan, I am very glad they were successful.

To bring Yoda’s message back to Earth, driving change in an organization can be very challenging. For change to take place, there is no ‘try’. For change to take place successfully, everyone involved in driving the change must be committed to ‘do’, especially if the majority of the people in organization are satisfied with the status quo.

Several years ago, I was asked to manage a corporate Quality group that was very good at putting out fires. Unfortunately little work had been done to address the root cause of these fires. To improve this situation, it was clear this would require a major change in how everyone worked. I was convinced a ‘collaborative’ approach between the Quality experts in my group and the Manufacturing group was essential.

If we were to improve the quality of our products, and reduce the number of fires, a great deal of dedication on my team’s part would be essential to achieving a successful transition.

Before I explain how it all worked out, here are the three basic principles we followed to drive this major change.

  1. Establish the vision and expected benefits.

Management is more likely to get behind the proposed changes if they have substantial, detailed goals. In my example above, I presented the idea of converting the Quality group into a resource and moving the majority of the on-line product quality to the people making the product. The expected benefit of this change was the improvement of product quality and better external audit results. This was a major shift in responsibility, but my manager understood the advantages and felt confident the rest of the supply chain would agree to this change in the ways of working.

  1. Develop and communicate plans that will clearly show how the change will take place.

A blueprint showed how the goal was going to be achieved and who was involved in the change. For example, I showed Management our plan to use the Quality group as a training resource and subject matter experts. One of the ways we planned to improve the current situation was for the Quality group to work with the plants to perform root cause analyses and then eliminate the source of the issues. This type of collaboration had not been attempted before, but when the plants were presented with the concept, they felt it was a step in the right direction.

  1. Generate interest and acceptance from the ground up.

The people involved in implementing the change must be fully committed to their mission. In my situation, the people in the Quality group were somewhat skeptical of the change at first. Enforcing the rules and regulations had always been a Corporate responsibility. However, once they could see their role was to become the instructors and subject-matter experts instead of the policemen and firefighters, they were extremely dedicated to the change process.

One of the primary tactics for driving the change was to demonstrate that the Quality group was truly available and would be present to help, not criticize. The Quality group was also committed to success at the plants. In the past, the Quality group would perform internal audits to point out issues/violations and tell the plant to fix them. In the proposed arrangement, it was made clear to the Quality group that if the plant failed an external audit, the Quality group also failed.

After a year of consistent support from the Quality group, and positive results, we were getting calls from the plants asking for help. Everyone could see that working together to solve issues benefited the business and reduced stress levels. By the second year of this new arrangement, we progressed to a place where the plants and Quality professionals were sharing their experiences and collaborating on a regular basis to improve the entire business. It was a great use of limited resources, and also allowed for the experts in the plants to be utilized for the greater good of the entire business.

Making a significant change in an organization requires a combination of vision and planning. It is also a matter of commitment. It is clear that George Lucas, with a little help from Yoda, had a clear vision of their goal and the determination to make it happen. As was once said ‘A long time ago, in a galaxy far, far away,’ when it’s time to make a change, there is no try. Only do.

 

Photo credit: Depositphotos, image ID 56376641, by IlianaMihaleva

 

Is There an App for Supply Chains?

mcalisterts 0 Comment Business Forecast, Expert Advice, Management Skills , , ,

Tablet PC and Smart Phone with navigation system

When in unfamiliar territory in this day and age, we automatically reach for our smart devices to map out directions to our destination. We conduct a search for the place we want to go, tap the map icon and head off in the right direction. Mapping out directions for a supply chain is not so simple.

Several years ago I was involved in a situation where the senior business team decided to reallocate advertising and promotional dollars from my team’s brand to another brand in an attempt to increase earnings. Those of us at Headquarters knew this maneuver signaled a significant reduction in the amount of product needed over the next few months.

Since the resulting change was a ‘system-driven’ exercise, it was a few weeks before the new production forecast was available and published. By that time the new plan was in the system, my team had moved on to other battles and the impact of the funding strategy change was a distant memory. A month later I got a call from the Plant manager who was directly affected by this change. It was not a pleasant call… and rightly so. His staffing was based on the ‘old’ forecast and now he had to lay off people that he had hired recently.

Using colorful language not suitable for publication, he let me know that I made a big mistake. We called these discussions ‘leadership moments’. I vowed from that day forward to keep the plant and the rest of the supply chain ‘in the loop’ when it came to changes in the business strategy. To do this, I needed a mechanism to clearly communicate the impact of changing business conditions to the rest of the supply chain. In today’s lingo, I needed an ‘App’ to point supply chain operations in the right direction.

Efforts and courage are not enough without purpose and direction. John F. Kennedy

There was never any doubt the plant would do whatever it took to achieve the production targets we established months before. Unfortunately making product based on an outdated production plan, was not what the business needed. As a result of my ‘leadership moment’, we developed a very effective way to communicate the state of the business, along with specific information to the supply chain by using a process called the ‘Operational Review’.

Most organizations have a way to show Management their production capacity plan, however multi-colored charts are only part of the story. A good operational review process has several elements that will encourage greater understanding between the business team at Headquarters, and the supply chain.

Here are the basic elements of the Operational Review:

1.    Production Capacity Review

  • Periodically updated visual depictions (charts or graphs) of each manufacturing line showing the production capacity and the volume currently planned for the line: These charts will identify production capacity concerns in the near future and whether there is capacity to grow the business.
  • Updated charts showing inventory projections that take into account sales forecasts: These charts are usually expressed in a ‘days of supply’ format. The purpose of these charts is to give an indication of current and potential customer service concerns.

2.    Performance Metrics Review

  • Updated summaries of the inventory value (working capital) versus targets: These summaries will show how well the production plan is performing against the forecast. For example, higher than expected inventory value may indicate the sales forecast is not meeting expectations. However, if lower than expected sales are not the root cause of the increased inventory, then further investigation will be needed to find the source of the issue.
  • Information regarding customer service: Customer Service problems should be discussed to determine how and when they would be resolved. For example, if customers say they are running short on product, yet the overall inventory is above the agreed target levels, then the supply chain will need to determine what is creating this imbalance, and report back to the business team.
  • Production performance metrics presented by the plant showing the actual production results versus the production schedule: This is sometimes called ‘output reliability’ or ‘schedule reliability’.

3.    Discussion of Events Impacting the Business

  • The Sales Forecast and Promotional Sales calendar is shared with the plant: This information will help the plant determine the amount of resources needed to meet the expected demand.
  • Future projects, such as packaging or graphics changes should be discussed well in advance: This discussion will help with production planning and minimize material write-offs.
  • Plans for future innovation projects, such as line extensions and new products should be discussed with the plant as soon as possible: Innovation projects should result in incremental business, and the plant will need to plan for the additional resources.

A key consideration when establishing the Operational Review process is deciding who is to be involved in the discussion. One of the purposes of the Review is to provide purpose and direction to the troops in the field. It was my experience that the person at Headquarters who has responsibility for providing the tactical direction to the plant is a key member of the Headquarters team, and the Production team, and is in the best position to be the facilitator of the discussion.

The majority of the information at the meeting will be intended for the Plant Manager and their production staff. However, the plant staff will also be asked to provide information for the review. A very important function of the meeting is for Headquarters and Production to gain a mutual understanding of the current and future challenges the business faces. It may be helpful to include other support functions on the team, such as Procurement and Quality.

Another factor to consider is the frequency of the meetings. We found that a monthly meeting was appropriate, however this could vary depending on the industry. Having pertinent and timely information to share is important, and most companies utilize a monthly business cycle.

Sometimes the path you’re on is not as important as the direction you’re heading. Kevin Smith

It was always my experience that when Management at the plant was well informed regarding the direction of the company, the trickle-down effect of this knowledge was always positive, even if the news was not always good. When plant management, supervision, and the line workers had a clear understanding of the direction of their business, they were more likely to make good business decisions. In the bigger picture, everyone wants to feel that they are contributing to the success of their company, and not coincidentally, their own success.

A steady and honest flow of information between Headquarters and Production regarding the direction of the business is always a good thing. Implementing an Operational Review process is an ‘app’ that can ensure everyone is going in the right direction.

 

Photo credit: Depositphotos.com 33866531 monicaodo

Water Chestnuts Only Come from China? Really?

mcalisterts 0 Comment Case Studies, Expert Advice, Management Skills, Preparedness , , , , ,

Depositphotos_53476899_xs

“There’s no harm in hoping for the best as long as you’re prepared for the worst.” Stephen King, Different Seasons

Although Mr. King is not known for his supply chain expertise, he could have written a thriller based on a situation that took place in our supply chain a number of years ago.

About a month after our company had launched a new product line using water chestnuts, we immediately saw signs of sales exceeding the forecast. After confirming this with Sales, I performed analysis on the raw material inventory to determine if we were at risk. It had already been a long day when my spreadsheet revealed that we would run out of water chestnuts in less than 6 weeks. I gave Procurement a quick call to let them know we would need to move up a shipment or two.

After a few minutes of discussion with Procurement, what I learned was a little shocking: the supplier was in China and they didn’t have any ‘safety stock’ in the US. This meant that there wasn’t any extra material readily available and we were likely to run out of material before the next shipment.

Unfortunately, it got worse. Digging further, we determined that the amount ordered and in-transit was not going to be enough to cover the rapidly rising requirements. We needed to ship incremental material quickly or we would jeopardize the product launch. This situation emphasized one of the unwritten rules of planning: If you are about to run out of a material, demand for the product will invariably increase.

My next question for Procurement was about an alternative supplier that could cover the potential shortage. After an uncomfortable pause on the phone, my contact said, “Water chestnuts are only sourced out of China, and because of our unique specifications, the supplier is the sole source of supply for the material we need for our product.” Really?

Rosemary Coates’ ‘The Risk of Failure.’  addresses rising supply chain risk due to materials being routinely sourced from far-reaching geographies. Speaking from experience, the risk is very real.

If we had to do it over again, we would certainly do things differently. It is the business team’s prerogative to ‘assemble’ the best product they can with the materials at their disposal. It can always be debated whether a unique material is ‘necessary’ to make a desirable product, but this discussion will focus on a proactive approach to managing long lead-time materials.

“Prepare for the unknown by studying how others in the past have coped with the unforeseeable and the unpredictable.” Gen. George S. Patton

There were a few days that felt like we were in the Battle of Bulge along with General Patton. In other circumstances it would be good news that sales of the product line were exceeding the forecast, but in this case, the supply chain was raising flags saying we may experience a shortage of water chestnuts (among other ingredients) making it difficult to produce some of the items. Putting it mildly, this is not what the business team wanted to hear.

Based on the trials and tribulations we experienced as we worked out the situation, here are three broad areas to consider when sourcing unique materials from distant geographies:

  1. Carefully estimate the transit time and the time it takes to move items through Customs. What is the typical shipping time? Does it take 3 weeks or more to get across the ocean? How long does it take to get through Customs. Does your company have experience clearing materials through Customs. How long does it take to transport the material from the entry port to your location? Hiring an experienced import resource to manage the paperwork at the port and subsequent transactions can be very helpful. For this particular item, we allowed 6 weeks from the time the boat left the port in China until the material was in our facility ready for use.
  2. Understand the vendor’s options if their primary source is depleted or the demand outpaces the rate of supply. Does the vendor have an alternative supplier or additional production capacity? If the demand for the material unexpectedly doubles or triples, can the vendor keep up? If not, what are the alternatives? Will a slightly different material work for short periods of time? Knowing the answers to these questions prior to being in a panic situation can be very helpful.
  3. Develop a conservative inventory policy for high-risk materials. A conservative policy in this context means ‘extra’ inventory. Obviously it is necessary to be fiscally responsible, however the risk of suffering customer service issues (no product available) must be weighed against making sure 3-4 months of inventory is always available in a local warehouse. A key to making this plan work is requiring the vendor to have ‘safety stock’ readily available at all times. It is extremely important to ensure this agreement is being upheld and the inventory confirmed on a frequent basis. Having this stock locally available (in country) on short notice can greatly improve the chances for success of a product launch.

Perhaps you are wondering how our ‘thrilling’ situation worked out. We had to air-freight some of the material from China to the US. Suffice it to say this was very costly. From the beginning of the product launch, our customers were extremely excited to have the product on their shelves. The initial success of the product line led the business team to justify the expense.

After this incident, one of the activities that proved to be helpful was setting aside a day to conduct what we called ‘War Games’. The idea behind this activity was to get all of the key players (Sales, Marketing, Procurement, Planning, Quality, etc.) in one room for a day to go through all of the possible issues that could jeopardize the launch of a product. This brainstorming session would take place soon after Management decided to launch a new product and everyone had a chance to discuss possible upcoming challenges to the new business. All aspects are discussed, including competitive market challenges, distribution problems, supply chain concerns (such as the one discussed here) and any other concerns the team may uncover.

Planning conservative raw material inventories can make a significant difference in ensuring product is available during the critical stages of a product launch. Turning Mr. King’s quote around, “Preparing for the worst will let us hope for the best.”

 

Photo credit: Depositphotos.com 53476899 thinglass