Tag: Competency

A Pathway to Wisdom in the Business World

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

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

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

  • Never stop learning / learn from diverse sources

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

  • Find ways to apply your knowledge

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

  • Use new and emerging technologies to enhance your knowledge

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

  • Gather support along the way and take risks

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

  • Follow through on plans and actions

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

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

 

Photo credit: Depositphotos.com #73412631 gustavofrazao

What is in Season?

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

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

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

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

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

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

  1. Establish the parameters for product availability

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

  1. Develop a consumption model

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

  1. Develop the inventory model

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

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

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

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  1. Review Inventory and Adjust Purchasing Strategy

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

  1. Establish Timetables for Making a Purchase Decision

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

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

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

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

‘There is a season – turn, turn, turn

And a time to every purpose under heaven’

 

 

 

 

Staying Sharp

Mike 5 Comments Continuous improvement, Expert Advice, Management Skills , , ,

Businesswoman in office drinking coffee and looking at computer

“Even if you’re on the right track you’ll get run over if you just sit there.” – Will Rogers

I participated in a Dale Carnegie course many years ago and I remember the final speech from our instructor, Debbie. The point of her speech was to say that now that we have a new set of skills from the course, it’s important to keep them sharp. Debbie emphasized the point by telling a parable: A young, ambitious lumberjack was sent out for the first time and in his first few days he chopped down an impressive number of trees. However, after a week he noticed that even though he worked just as hard as he had those first days, he cut down fewer and fewer trees as each day passed. His frustration grew and finally he asked a veteran lumberjack why his productivity was dropping. The veteran asked a simple question, “How often do you sharpen your ax?”

When we come out of academia or training programs we have a set of skills and knowledge that we want to utilize to make a difference. If we are fortunate, we are placed in a position to use some of these skills and contribute to the success of the organization. However, as time marches on and the world changes, the original set of skills will need updating periodically. As with most things worth doing, staying current takes time and effort. But as the young lumberjack learned, it’s important to take the time to sharpen your ax.

Here are some ideas for staying current and keeping your skills sharp:

  • Schedule time to specifically work on maintaining or improving your skills. Make self-improvement a priority and plan for specific activities.
  • Read as much as possible. The internet and the library make it easy to find relevant content that may help in the quest to stay sharp.
  • Read blogs related to areas of interest. Staying current in your area of interest will help to identify the skills needed to be successful. Searching for helpful blog sites can be a little tedious, but once a few are identified, they can be a great source of information for what is taking place in your industry.
  • Be open to ideas from other disciplines. Looking for information as it applies to areas outside of your expertise or industry can be an interesting way to develop alternative ideas. For example, project management techniques used in one industry may be applicable to another industry.
  • Look for tools that will improve your effectiveness. Being able to use software to a greater extent is always helpful. Understanding and practicing the use of programs such as Excel and Power Point will always be helpful when you are faced with new challenges involving data analysis and communicating ideas to an audience.
  • Be willing to spend time learning new skills. If time isn’t available during the workday to ‘play’ with a program or on-line tool, e.g. project management software, then take the time after the workday or on a weekend to work with it. The time spent exploring the use of a tool will come in handy down the road when the opportunity presents itself.

A person who has a ‘continuous improvement’ attitude will be motivated to stay sharp and will always look for ways to improve. Conversely, it is clear that having the attitude of ‘that’s the way I’ve always done it’, is a good way to start down the slippery slope of obsolescence. It’s always going to be better to say, ‘Let’s find a better way to do it’.

Attitude is very important in today’s workplace. Showing a willingness to grow and improve will go a long way toward building a successful and fulfilling career. With Will Roger’s quote in mind, stay ahead of the pack to avoid being passed by.

Photo credit: Depositphotos.com 4767256 by monkeybusiness

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

Can I Trust That Character?

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

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Over the years I’ve had the honor of leading many groups of people who depended on my character to support them and help them become successful. In my world, I only considered myself successful if the people around me were successful. To make my organization successful, there had to be mutual trust and it was of paramount importance that everyone one around me trusted me as their leader.

In the professional environment, to gain the trust of our co-workers we must demonstrate our character. Our character will shine through in many ways, including but not limited to, how we speak to others, how we talk about people who are not in our presence, and how well we perform our jobs day in and day out. The way we conduct ourselves builds trust. The same is true for our business partners.

Trust has many facets, and one of my favorite books is, “The Speed of Trust: The One Thing that Changes Everything,” by Steven M.R. Covey. A great quote from this book is, “Trust is equal parts character and competence… You can look at any leadership failure, and it’s always a failure of one or the other.” More from Covey later.

In the supply chain world, I see a very strong connection between operational success and the level of trust in the vendors. In other words, if a vendor is trustworthy and reliable, product can be made on time and in full. When this happens, the business will make progress. Without trust, it’s a very tough road.

Consider this example of what happens when trust doesn’t exist between the company and its vendors: A manufacturing company makes a variety of Widgets containing anywhere from 10 to 15 parts in each widget. There is at least one vendor for each part, depending on the volume of parts needed for production. Since the assembly process is continuous from beginning to end for each variety of widget, all parts must be available at the beginning of the assembly process. If even one part is not available, the finished product cannot be assembled.

Most producers carry low inventories of raw materials, and deliveries of new raw materials are usually ‘just in time’. More than likely, if the vendor does not deliver the supply of parts on time, production will not occur. The repercussions of this scenario are always negative and costly… downtime, unplanned schedule changes, inventory imbalance, over-time, etc.

In my experience the best way to approach this situation is to find a reliable vendor with the technical resources to meet the demand, and an ‘organizational character’ you can trust. Perhaps this sounds a little far-fetched but things go well when both organizations truly embrace how they mutually benefit each other.

“Good teams are committed to the team mission and to each other personally. Good leaders inspire and build this commitment and trust.”  Lee Ellis (Leading With Honor: Leadership Lessons from the Hanoi Hilton)

From my perspective there are ways to assess whether a new vendor will be trustworthy. Steven M.R. Covey, identifies four basic components of the trustworthy relationship: Integrity and Intent (Character) along with Capability and Results (Competency). Covey describes the process for building trust, and if the producer can answer yes to all of these questions, then the relationship will move forward quickly and efficiently. When evaluating your current vendors or considering a partnership with a new vendor, ask yourself the following questions proposed by Covey (paraphrased):

  1. Does the vendor have Integrity? –Does the vendor do what they say they will do? Do they act with humility or do they ‘brag’ about their accomplishments? Do they show the courage necessary to do what needs to be done?
  1. What is the vendor’s Intent? – Do they want to make one big sale, or do they want a long-term relationship? What is their agenda? Are they interested in what will make your company and your products better?
  1. Does the vendor have the necessary Capabilities? – Do they have the talents, skills, and knowledge you will need to move forward? Does the vendor have the resources, intellectual capacity and capabilities needed to make a difference for your business?
  1. Will the vendor get Results? – Do they consistently deliver the expected results? Will they continue to deliver in the future? Does the vendor take responsibility for their results or do they find reasons/excuses for their failures?

I have been in situations where a good vendor will answer all of the questions without hesitation and have data to back up their claims. I’ve also been involved with vendors who over-stated their capabilities… which is failure of both character and competency.

There is no simple way to get through the process of evaluating vendors. However, if time allows, the best way is to meet face-to-face with the technical representatives to ask the difficult questions and get a true understanding of their capabilities. When both parties can look each other in the eye, there is going to be a much stronger connection and subsequently, a higher level of trust.

When it comes down to it, we are all in business to be successful… you can measure success any way you like. Vendors are your partners or ‘team members’ in the enterprise and when they are successful, your business has a much better chance of being successful. If you can build a trusting relationship with ALL of your vendors you will be amazed at how much time you can then dedicate moving your business forward. Trusting those ‘characters’ will make all of the difference.

 

Picture credit:

ID 17981211 © Andrey Popov | Dreamstime.com