Tag: collaboration

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 , , , , , , , ,

IMG_1708

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 , , , , ,

Depositphotos_33835739_xs

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

Is Your Forest Too Dense?

Mike 1 Comment Expert Advice, Management Skills , , , , , , , ,

nature. pathway in the forest with sunlight

Part One

I’ve always appreciated the adage about not being able to ‘see the forest for all the trees.’ I have experienced this phenomenon from within the forest and from the outside. At times I find myself getting bogged down in the specifics, unable to see what is going on around me. At other times I feel it’s my colleagues who are lost in the forest.

In business, as in life, there has to be a balance between having a handle on the details and seeing the big picture.

“Having the big picture in mind enables us to overcome the day to day routines that attempt to distract us from pursuing our dream.” ― Assegid Habtewold

From my perspective seeing the big picture is the ability to consider the connections between actions and the consequences, intended or otherwise. When considering actions to take and various alternatives, decisions need to take into account both short-term and long-term ramifications.

Leadership must keep the team focused on the activities contributing to the goals of the organization. Leaders need to see and understand the forest around them to help guide the team forward. The success of the plan executed today will impact the organization’s success tomorrow and well beyond.

The next three blog entries will explore specific areas where leaders can keep their teams focused and productive while keeping the big picture in view. Here are the areas we will explore:

Establish Meaningful Goals

Look for the second entry titled, ‘Goal Management for Success’.

To paraphrase the poet Robert Burns, ‘The best laid plans of mice and men often go awry.”

Setting meaningful and tangible goals is essential to the success of all business. It is also very important to recognize that changes taking place within the business climate will drive the need to adjust the goals from time to time. I will describe a simple process for setting goals and adjusting them to drive the business forward.

Select Essential Metrics

I will address the why and how of establishing metrics in the third blog entry, ‘Meaningful Metrics’.

“What’s measured improves.” Peter Drucker.

Once the goals are set, it is important for leaders to choose the metrics that can be used as markers for the progress of the business toward achieving the goals, and that can accurately measure the health of the organization.

Effective Communication

Finally I will discuss the team’s ability to communicate successfully. Check out the fourth entry, ‘Effect Communication’ for more tips on improving communication.

“Good leadership starts with good communication.” Unknown

Communication amongst the team and across the organization is a key to success. Providing frequent, succinct, and useful information to the team will keep everyone engaged in the business. The manner in which meetings are conducted can have a huge impact on the effectiveness of the team. One on one communication is also very important between the leader and each team member. Lastly, communication associated with business performance results can motivate the team.

So look for the next three blogs as I provide advice on how to ‘thin out’ the forest and make a positive impact on your organization.

Photo credit: Depositphotos.com 7985468  by vovan13

Jazz and Work – Second Verse

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

Depositphotos_3267295_xs

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!

—

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.

 

Photo credit: depositphotos.com 21849021 by:iqoncept

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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

 

Collaboration or Else

mcalisterts 0 Comment Collaboration, Expert Advice, Management Skills ,

People team up technology solution gears

In today’s business world, the functional business teams can no longer work in isolation or in ‘silos’. I have always felt the need for collaboration. I’ve enjoyed numerous opportunities to collaborate at a personal level and I have successfully influenced collaboration amongst functional groups. My journey toward understanding that it was collaboration or else began over 30 years ago.

A lot has changed since my wife and I moved into our first apartment in Woodridge, Illinois during the summer of 1981. That was the summer I started my career in the food industry. Back then most manufacturers followed many of the same practices used since the post-WWII years.  ‘If it ain’t broke, don’t fix it’ was a common theme. Most of us in the Baby Boom generation were more than happy to benefit from the foundation laid by the hard working men and women of Tom Brokaw’s ‘Greatest Generation’.

One of the advantages of being in the business for the past 30 years is having the honor of seeing huge changes in how food manufacturing has adapted to the constantly changing world. Looking back it’s easy to understand why we wanted to maintain the status quo. Unemployment was relatively low and energy was cheap. There wasn’t a huge amount of pressure in 1981 to change the paradigm.

But as escalating energy prices and inflation drove down profitability, the business environment evolved rapidly. Private equity firms completed leveraged buyout transactions that rocked the food industry. Companies were bought and restructured resulting in huge layoffs, signaling the end of the ‘fat and happy’ style of business. As a young man learning his way around the business world, it was clear I would need to adapt in order to survive.

Around this time we found ourselves asking what would it take to survive a leveraged buyout? It quickly became clear that if the new owner asked, ‘who gets the job done around here?’, the names that come up the most would survive.

With the environment changing dramatically, I knew I had to look at my work differently. If I wanted to ‘be in the conversation’ my instinct told me that a collaborative approach to my job would go a long way toward being productive as well as being recognized by co-workers as an excellent team member.

When I moved into management roles, I took this concept to the next level; I knew that collaboration between functional groups in a manufacturing company would be crucial to success in the business world.

Current business practices and collaboration

In Top Food Entrepreneurs Dish on How the Business Has Changed , INC on-line magazine, several key food industry executives discuss how consumer behavior has changed dramatically over the past 30 years. They emphasize that consumers are savvy and information is available very quickly through the use of social media.

Smart companies use the ability to ‘hear’ their consumers through social media to their advantage. However, to be in a position to rapidly respond to consumer demands, food manufacturers must be flexible from a manufacturing perspective.

Even if a company has the physical assets to rapidly react to changes in consumer taste, they must be able to harmonize the business and operations teams. It is imperative that the supply chain be fully synchronized with the business team. In other words, success depends upon a true collaboration between Marketing, Sales, Finance, and the Supply Chain.

“Coming together is a beginning, staying together is progress, and working together is success.” – Henry Ford (link to reference) 

To facilitate collaboration I have used a ‘Core Team’ approach. Here is the basic process for making this happen:

  • Assemble the ‘Core Team’ – The supply chain manager responsible for the day-to-day planning and operations will work with business counterparts to determine who would be a member of the ‘Core Team’. The business functions must be represented; i.e., Marketing, Sales, and Finance. Production planning, Manufacturing, and Procurement would also be members of the core team.
  • Establish a team charter – It is very important to ensure everyone on the core team understands the purpose of the meetings and how each member will contribute. The goal of the Core Team is to create and maintain a platform for the business team to understand how the Operational function impacts the success of the business and vice versa. For example, the Supply Chain representative will provide explanations to the team regarding customer service issues. Since the Sales manager is at the table, they will be able to talk about demand, e.g. under-forecasting. If manufacturing issues are creating the problem, Operations explains the actions taken to correct the issues.
  • Ensure transparency – The core team will be successful when current data is made available to the entire team. This data must include information and insights into current issues as well as potential issues facing the supply chain in the future. For example, the business team shares sales projections for the next few years on a regular basis. This is critical for ensuring that production capacity is available for future growth. The more transparent the information is between the functional groups, the more efficiently and effectively the core team will operate. An effective core team will result in a successful business.

You may be thinking this core team concept sounds very similar to the S&OP (Sales & Operating Plan) process. The primary difference between the core team and an S&OP process team is the core team agenda is more holistic as opposed to the financial focus of S&OP. In other words, S&OP is more about the ‘what’ and hitting the financial numbers; the core team will determine how the business team will reach their targets. The purpose of the core team meeting is to form a true collaboration between functional groups and ensure everyone understands how the business is going to succeed.

When I think back to those days in the 80’s and the looming threat of being purchased and potentially unemployed, fear was the driving force behind becoming more collaborative. Not being able to respond to the customer and consumer is the modern ‘fear’ driving change in today’s business world. As the paradigm shifts, collaboration at all levels in the organization is the key to being successful in today’s constantly changing environment.

As it turns out, for most of us collaboration or else will keep our companies successful and ourselves in the conversation.

Photo credit: Depositphotos 9959012 michaeldb