Time isn't really linear as we experience it or is it? The only
moment that exists is the present, yet we 'remember' the past and
plan for the future.
We believe we can affect the future by the choices we make today.
If that's true, why can't we affect the past as well?
How is it you stop yourself from being in the moment? If you are
thinking about the past or the future you are crowding yourself out
of the only moment that exists. What if, just for this moment you
give yourself permission to be fully present?
What if you simply allowed yourself to breathe deeply and BE? Be in
the spaces between your thoughts.
Friday, March 26, 2010
Tuesday, March 23, 2010
Positive Action
In this spirit, here are five characteristics and actions you can take to thrive right now.
1. Refuse to Participate in the Recession - Businesses and people that thrived during past recessions continued to go about their business as usual regardless of the market conditions. They stayed positive, worked hard and focused on taking actions to grow their business. Focus on business as usual and while others allow fear to paralyze them you will charge forward and move ahead of your competition.
2. Increase Marketing and Advertising - It may seem counterintuitive to spend more money on advertising and marketing but with so many people and organizations cutting back on these expenses this is a great opportunity to build your brand, expand your presence and gain market share. People will still be buying goods and services and they will buy from those who they trust and see in the marketplace. This is a great time to win new customers and stand out.
3. Innovate - Just as the phoenix rises from the ashes, great ideas and new business ventures are born during economic hardships. GE, Disney, and Microsoft were all born during recessions. I believe when times are tough we are more open to new ideas, new products and new ways of doing things. For example, smart political and business leaders should be working on alternative energy and green technologies that would lead to great progress and profits.
4. Become a Talent Magnet - If you are a leader or manager there is no better time to find, attract and hire the best talent. Focus on strengthening your business now and you’ll be in a great position to capitalize when the market rebounds.
5. Think Big, Take Action - Consider that both the Empire State Building and the Golden Gate Bridge were built during the Great Depression. Now is a time to think big, create your vision and take action. With more people living in fear and fewer people taking initiative the rewards and recognition will be greater for those willing to work hard and dedicate themselves to building a great business, product, service, and vision. As we know, there is no substitute for hard work and now is a time where those with a positive attitude and great work ethic will shine.
1. Refuse to Participate in the Recession - Businesses and people that thrived during past recessions continued to go about their business as usual regardless of the market conditions. They stayed positive, worked hard and focused on taking actions to grow their business. Focus on business as usual and while others allow fear to paralyze them you will charge forward and move ahead of your competition.
2. Increase Marketing and Advertising - It may seem counterintuitive to spend more money on advertising and marketing but with so many people and organizations cutting back on these expenses this is a great opportunity to build your brand, expand your presence and gain market share. People will still be buying goods and services and they will buy from those who they trust and see in the marketplace. This is a great time to win new customers and stand out.
3. Innovate - Just as the phoenix rises from the ashes, great ideas and new business ventures are born during economic hardships. GE, Disney, and Microsoft were all born during recessions. I believe when times are tough we are more open to new ideas, new products and new ways of doing things. For example, smart political and business leaders should be working on alternative energy and green technologies that would lead to great progress and profits.
4. Become a Talent Magnet - If you are a leader or manager there is no better time to find, attract and hire the best talent. Focus on strengthening your business now and you’ll be in a great position to capitalize when the market rebounds.
5. Think Big, Take Action - Consider that both the Empire State Building and the Golden Gate Bridge were built during the Great Depression. Now is a time to think big, create your vision and take action. With more people living in fear and fewer people taking initiative the rewards and recognition will be greater for those willing to work hard and dedicate themselves to building a great business, product, service, and vision. As we know, there is no substitute for hard work and now is a time where those with a positive attitude and great work ethic will shine.
Friday, March 12, 2010
A Black Hole in the Supply Chain
American Railcar uses TMS to shine light on inbound supply chain
By David Hannon -- Purchasing, 3/11/2010 12:00:00 AM
A black hole in their supply chain.
That's how the purchasing team at American Railcar Inc. (ARI) described the issue that led them to select and implement a transportation management system last year. And that decision is reaping benefits both expected and unexpected.
Like a lot of manufacturing companies, ARI, was having particular difficulty tracking its inbound shipments from suppliers. "We had visibility when the product was ready at suppliers, but then it went into a black hole once it left our vendors' docks until it arrived at our location," says Brent Roever, purchasing agent at St. Charles, Mo.-based ARI, which manufactures and services railcars and parts.
In some respects, ARI was better off than some other manufacturers because it has a smaller supply base than a typical manufacturer, so there were fewer inbound shipments disappearing into the black hole. As a railcar manufacturer with two primary manufacturing locations in Arkansas, its supply base is limited to companies that can meet the rigorous specifications and certifications required by the American Association of Railroads. As a result its relatively short supplier list is based primarily in the U.S.
According to Richard Armbruster, ARI's vice president of purchasing, about 80% of its inbound shipments come via flatbed truckload. Only about 5% come in by truckload van and the rest come from suppliers via less-than-truckload. And, of course, the majority of its outbound shipments go out on rail—literally.
But as a Lean organization, ARI was always looking for ways to streamline its just-in-time manufacturing model and reduce its inventories. In its previous logistics model, ARI provided its suppliers with lists of preferred carriers and routing guides, but "it was on the honor system" according to Roever. "We had visibility when the product was ready at suppliers, but then it went into a black hole once it left our suppliers' docks until it arrived at our location."
So under Ambruster's direction, ARI's Senior Director of Purchasing Scott Smith worked with Roever to investigate what the solution to the black hole problem was. And while they knew it would require some outside help, the first question they needed to answer was TMS vs. 3PL?
"We reviewed both 3PLs and TMS providers we decided a mix of both would suit us best," says Roever. When it came to the TMS, ARI was sure it wanted to go with a web-based TMS that would integrate easily with its in-house ERP system.
With those priorities set, ARI decided that St. Louis-based Logistics Management Solutions (LMS) of was the right choice for its TMS provider. In early 2009, the team began working with LMS to incorporate its TMS system into ARI's purchasing and logistics processes.
The key to effectively streamlining the inbound freight flows was getting ARI's suppliers on board with the program. And it had to be a simple, straightforward process for the suppliers if it were going to be embraced.
In the new process all of ARI's orders flow from the ERP system into LMS' TMS system where suppliers can view those orders. Suppliers respond to those orders and indicate that their shipment is ready either by providing a form or by logging into the LMS system depending on their frequency of shipments and can include notes on how that product needs to be shipped. Some shipments may require a tarp or a flatbed truck, for example, all of which can be indicated on the notification.
With those details in place, LMS can then tender the load to one of ARI's carriers in that given lane. Carriers are only dispatched when the shipment is ready, which avoids costly carrier delays.
But most importantly, the system indicates to Roever and the ARI team when the shipment was picked up at the supplier and when it can be expected at ARI's facility based on established delivery times. Black hole averted.
"This allows us to control early and late shipments and ultimately this helps us reduce our on-hand inventory," says Roever. "It's our goal to have just enough inventory to build our railcars while taking into account transit times. We measure inventory month over month and it is improving from a host of activities, including our work with LMS."
The TMS system also lets the purchasing team at ARI track which suppliers ship on-time and which are late. That data is then included in the supplier's scorecard and also lets ARI perform root-cause analysis on those that are consistently late.
"We're using Lean to become world-class so being able to use reporting tools to identify and fix problems is very valuable," says Roever. "These tools give us more data to analyze in these areas."
While there was some pushback from suppliers early in the process, currently ARI has 99% of its suppliers on the system now. Roever says one thing that made the transition smoother was LMS assigned dedicated reps to the ARI contract, so all of ARI's suppliers are interfacing with the same people at LMS each time.
"Communication at every stage is crucial," says Roever. "Bring suppliers in early when you're looking at the change and ask them how it would impact their business."
By David Hannon -- Purchasing, 3/11/2010 12:00:00 AM
A black hole in their supply chain.
That's how the purchasing team at American Railcar Inc. (ARI) described the issue that led them to select and implement a transportation management system last year. And that decision is reaping benefits both expected and unexpected.
Like a lot of manufacturing companies, ARI, was having particular difficulty tracking its inbound shipments from suppliers. "We had visibility when the product was ready at suppliers, but then it went into a black hole once it left our vendors' docks until it arrived at our location," says Brent Roever, purchasing agent at St. Charles, Mo.-based ARI, which manufactures and services railcars and parts.
In some respects, ARI was better off than some other manufacturers because it has a smaller supply base than a typical manufacturer, so there were fewer inbound shipments disappearing into the black hole. As a railcar manufacturer with two primary manufacturing locations in Arkansas, its supply base is limited to companies that can meet the rigorous specifications and certifications required by the American Association of Railroads. As a result its relatively short supplier list is based primarily in the U.S.
According to Richard Armbruster, ARI's vice president of purchasing, about 80% of its inbound shipments come via flatbed truckload. Only about 5% come in by truckload van and the rest come from suppliers via less-than-truckload. And, of course, the majority of its outbound shipments go out on rail—literally.
But as a Lean organization, ARI was always looking for ways to streamline its just-in-time manufacturing model and reduce its inventories. In its previous logistics model, ARI provided its suppliers with lists of preferred carriers and routing guides, but "it was on the honor system" according to Roever. "We had visibility when the product was ready at suppliers, but then it went into a black hole once it left our suppliers' docks until it arrived at our location."
So under Ambruster's direction, ARI's Senior Director of Purchasing Scott Smith worked with Roever to investigate what the solution to the black hole problem was. And while they knew it would require some outside help, the first question they needed to answer was TMS vs. 3PL?
"We reviewed both 3PLs and TMS providers we decided a mix of both would suit us best," says Roever. When it came to the TMS, ARI was sure it wanted to go with a web-based TMS that would integrate easily with its in-house ERP system.
With those priorities set, ARI decided that St. Louis-based Logistics Management Solutions (LMS) of was the right choice for its TMS provider. In early 2009, the team began working with LMS to incorporate its TMS system into ARI's purchasing and logistics processes.
The key to effectively streamlining the inbound freight flows was getting ARI's suppliers on board with the program. And it had to be a simple, straightforward process for the suppliers if it were going to be embraced.
In the new process all of ARI's orders flow from the ERP system into LMS' TMS system where suppliers can view those orders. Suppliers respond to those orders and indicate that their shipment is ready either by providing a form or by logging into the LMS system depending on their frequency of shipments and can include notes on how that product needs to be shipped. Some shipments may require a tarp or a flatbed truck, for example, all of which can be indicated on the notification.
With those details in place, LMS can then tender the load to one of ARI's carriers in that given lane. Carriers are only dispatched when the shipment is ready, which avoids costly carrier delays.
But most importantly, the system indicates to Roever and the ARI team when the shipment was picked up at the supplier and when it can be expected at ARI's facility based on established delivery times. Black hole averted.
"This allows us to control early and late shipments and ultimately this helps us reduce our on-hand inventory," says Roever. "It's our goal to have just enough inventory to build our railcars while taking into account transit times. We measure inventory month over month and it is improving from a host of activities, including our work with LMS."
The TMS system also lets the purchasing team at ARI track which suppliers ship on-time and which are late. That data is then included in the supplier's scorecard and also lets ARI perform root-cause analysis on those that are consistently late.
"We're using Lean to become world-class so being able to use reporting tools to identify and fix problems is very valuable," says Roever. "These tools give us more data to analyze in these areas."
While there was some pushback from suppliers early in the process, currently ARI has 99% of its suppliers on the system now. Roever says one thing that made the transition smoother was LMS assigned dedicated reps to the ARI contract, so all of ARI's suppliers are interfacing with the same people at LMS each time.
"Communication at every stage is crucial," says Roever. "Bring suppliers in early when you're looking at the change and ask them how it would impact their business."
Thursday, March 11, 2010
Business Trends
Nine trends for business in 2010
Consultancy Brand Keys has put forward nine “major trends” for 2010 (although bear in mind these are slightly US-centric). We’ve summarised them below. What do you think? Do you agree with these trends or not – let us know your views!
1. Price Matters if you’re a commodity
With financial pressures and a lack of confidence in the economy, consumers will to continue to be very, very conservative in their spending. An on-going psychographic trend is that no matter how much consumers earn and no matter how much discretionary income they have available, they still want to be perceived as “wise shoppers.”
In 2010, that title is bound to be more of an economic imperative than one having to do with fiscal self-image. This will be especially true given current economic indicators, all exacerbated by a decreased lack of trust in – and increased suspicions about – established financial and retail institutions. The precipitous decline in the economy will feed the ongoing trend of brands being unable to provide meaningful differentiation or resonating values, except, of course, those of low, lower, and lowest prices.
2. Differentiation, meaning and added-values matter mor
Marketers will need to fight desperately with their research departments and advertising agencies to ensure that insights can be identified and communications configured so that their brands actually stand for something significant in the mind of the consumer.
Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success, i.e., sales and profitability. Those who primarily rely on “flavor of the month” promotional tactics will quickly find that they are creating a lasting perception among their consumer base that only price (or price cuts) differentiates their products from the competition. Do that often enough and your product and service will move away from being a “brand” and will come to be regarded as a “category placeholder” and nothing more.
3. Engagement is not a fad. It is the brand objective
It has already been proved that real engagement correlates with positive consumer behavior. Engagement should be defined by consumer response: it is the outcome of any marketing or media initiative that substantively improves a brand’s equity (the degree to which a brand is seen to meet – or to exceed – consumers’ expectations for the category in which it competes).
Marketers will realize that attaining real brand engagement is impossible if they continue to try to measure it using out-dated attitudinal models. Marketers will come to accept that there are four
engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there’s only one objective: Brand Engagement.
4. Media planning will be more innovative, touch-point focused, and two-way
Planners will still classify media touch-points as “above-the-line,” “below-the-line” and “new,” but planning will be based on some critical considerations: Which touch-point will best reinforce brand values? Where will the brand + media equation yield real engagement?
Effectiveness will result only where the plan is seamless, believable, personalised, and authentic. Media planning innovation and technological innovation will become one and the same. Mobile devices are becoming an increasingly important touch-point for consumers and 2010 will be a starting point for migration from desktop to laptop to blacktop. Location-aware software for phones should inspire the mobile medium, so expect promotional coupons to show up along with IMs and look for greater granularity in measuring marketing ROI.
Marketing dollars transitioning to online isn’t new, but social networks will also become more engaged in engagement to help marketers more effectively deliver messages and determine return on their efforts.
5. How green is my brand?
Simply playing in the environmental awareness arena will not be an option in 2009, and brands will have to find ways of positioning their offerings in ways that meaningfully support a sustainable future. But as
the number of companies trying to co-opt the environmental movement for their products and services grows, so too will the number of sceptical consumers.
Most consumers have heard these promises before and will begin to demand evidence and authenticity. Measuring that authenticity and the degree to which the brand is perceived by the consumer to really be green will become more necessary than in the past. Possessing such measures will provide insights and strategic direction that will aid in brand differentiation, the creation of added value, increased consumer
engagement, and, the ultimate bottom line, profitability.
6. Brands will need to identify – and leverage – new values
Happily, loyalty and engagement metrics identify trends and values that will be more important to consumers many months before they are blips on traditional research radar screens. Looking at the 60 categories and nearly 500 brands measured in the Brand Keys Customer Loyalty Engagement
Index, the average percent-of-contribution that “customization” makes to product and service engagement, adoption, and loyalty, is currently 18%. That’s nearly five times what the value was when first measured in 1997. Watch for “customisation” – the newest of the loyalty values to insert itself into virtually every product and service category – to be something marketers will be paying great attention.
7. Behavior will finally beat attitude
More marketers will come to realize that “to know you” is not necessarily “to buy you” (or, for that matter, even to like you). Brands will need to recognise – and address – real behavioral metrics. Corporations will use the identification of behavioral consumer segments to synergistically reinforce brand values, brand and corporate positioning efforts, communications, and media planning to make the marketing function more effective and efficient.
8. Consumer expectations will continue to grow
Brands are barely keeping up with consumer expectations. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. In 2010, expect smart marketers to identify and capitalise on unmet expectations via newly identified values (like customisation), using more and more high-tech systems. This approach will help them differentiate brands from competitors, and brand-
consonant touch-points (like mobile marketing) will play a major role in meeting and managing consumer expectations.
9. Make life simple for your brand and your customer
The poet-marketer H. D. Thoreau foretold the coming of 2009’s ninth and final trend: “Simplify. Simplify.” Consumers are searching for and demanding simplification. In some categories this is showing
up strong, such as cell-phone plans, search engines and laundry detergent. Who has not looked at switching cellular carriers and bemoaned the task of comparing one complicated plan to another?
Simplification is also showing up as a driver in online travel sites for itinerary planning. Yet as the competition has heated up brands still continue to compete on price, and not what will engender positive
consumer behavior – simplification.
The future may not be what it used to be, but brands can be pretty sure that it will pose a more difficult time for marketers. But marketers and planners that have loyalty metrics in place will have a handle on the
trends that are bound to show up in their offices. And doing that will make them both prophets and profits in 2010.
Consultancy Brand Keys has put forward nine “major trends” for 2010 (although bear in mind these are slightly US-centric). We’ve summarised them below. What do you think? Do you agree with these trends or not – let us know your views!
1. Price Matters if you’re a commodity
With financial pressures and a lack of confidence in the economy, consumers will to continue to be very, very conservative in their spending. An on-going psychographic trend is that no matter how much consumers earn and no matter how much discretionary income they have available, they still want to be perceived as “wise shoppers.”
In 2010, that title is bound to be more of an economic imperative than one having to do with fiscal self-image. This will be especially true given current economic indicators, all exacerbated by a decreased lack of trust in – and increased suspicions about – established financial and retail institutions. The precipitous decline in the economy will feed the ongoing trend of brands being unable to provide meaningful differentiation or resonating values, except, of course, those of low, lower, and lowest prices.
2. Differentiation, meaning and added-values matter mor
Marketers will need to fight desperately with their research departments and advertising agencies to ensure that insights can be identified and communications configured so that their brands actually stand for something significant in the mind of the consumer.
Awareness as a meaningful market force has long been obsolete, and differentiation will be critical for success, i.e., sales and profitability. Those who primarily rely on “flavor of the month” promotional tactics will quickly find that they are creating a lasting perception among their consumer base that only price (or price cuts) differentiates their products from the competition. Do that often enough and your product and service will move away from being a “brand” and will come to be regarded as a “category placeholder” and nothing more.
3. Engagement is not a fad. It is the brand objective
It has already been proved that real engagement correlates with positive consumer behavior. Engagement should be defined by consumer response: it is the outcome of any marketing or media initiative that substantively improves a brand’s equity (the degree to which a brand is seen to meet – or to exceed – consumers’ expectations for the category in which it competes).
Marketers will realize that attaining real brand engagement is impossible if they continue to try to measure it using out-dated attitudinal models. Marketers will come to accept that there are four
engagement methods including Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there’s only one objective: Brand Engagement.
4. Media planning will be more innovative, touch-point focused, and two-way
Planners will still classify media touch-points as “above-the-line,” “below-the-line” and “new,” but planning will be based on some critical considerations: Which touch-point will best reinforce brand values? Where will the brand + media equation yield real engagement?
Effectiveness will result only where the plan is seamless, believable, personalised, and authentic. Media planning innovation and technological innovation will become one and the same. Mobile devices are becoming an increasingly important touch-point for consumers and 2010 will be a starting point for migration from desktop to laptop to blacktop. Location-aware software for phones should inspire the mobile medium, so expect promotional coupons to show up along with IMs and look for greater granularity in measuring marketing ROI.
Marketing dollars transitioning to online isn’t new, but social networks will also become more engaged in engagement to help marketers more effectively deliver messages and determine return on their efforts.
5. How green is my brand?
Simply playing in the environmental awareness arena will not be an option in 2009, and brands will have to find ways of positioning their offerings in ways that meaningfully support a sustainable future. But as
the number of companies trying to co-opt the environmental movement for their products and services grows, so too will the number of sceptical consumers.
Most consumers have heard these promises before and will begin to demand evidence and authenticity. Measuring that authenticity and the degree to which the brand is perceived by the consumer to really be green will become more necessary than in the past. Possessing such measures will provide insights and strategic direction that will aid in brand differentiation, the creation of added value, increased consumer
engagement, and, the ultimate bottom line, profitability.
6. Brands will need to identify – and leverage – new values
Happily, loyalty and engagement metrics identify trends and values that will be more important to consumers many months before they are blips on traditional research radar screens. Looking at the 60 categories and nearly 500 brands measured in the Brand Keys Customer Loyalty Engagement
Index, the average percent-of-contribution that “customization” makes to product and service engagement, adoption, and loyalty, is currently 18%. That’s nearly five times what the value was when first measured in 1997. Watch for “customisation” – the newest of the loyalty values to insert itself into virtually every product and service category – to be something marketers will be paying great attention.
7. Behavior will finally beat attitude
More marketers will come to realize that “to know you” is not necessarily “to buy you” (or, for that matter, even to like you). Brands will need to recognise – and address – real behavioral metrics. Corporations will use the identification of behavioral consumer segments to synergistically reinforce brand values, brand and corporate positioning efforts, communications, and media planning to make the marketing function more effective and efficient.
8. Consumer expectations will continue to grow
Brands are barely keeping up with consumer expectations. Every day consumers adopt and devour the latest technologies and innovations, and hunger for more. In 2010, expect smart marketers to identify and capitalise on unmet expectations via newly identified values (like customisation), using more and more high-tech systems. This approach will help them differentiate brands from competitors, and brand-
consonant touch-points (like mobile marketing) will play a major role in meeting and managing consumer expectations.
9. Make life simple for your brand and your customer
The poet-marketer H. D. Thoreau foretold the coming of 2009’s ninth and final trend: “Simplify. Simplify.” Consumers are searching for and demanding simplification. In some categories this is showing
up strong, such as cell-phone plans, search engines and laundry detergent. Who has not looked at switching cellular carriers and bemoaned the task of comparing one complicated plan to another?
Simplification is also showing up as a driver in online travel sites for itinerary planning. Yet as the competition has heated up brands still continue to compete on price, and not what will engender positive
consumer behavior – simplification.
The future may not be what it used to be, but brands can be pretty sure that it will pose a more difficult time for marketers. But marketers and planners that have loyalty metrics in place will have a handle on the
trends that are bound to show up in their offices. And doing that will make them both prophets and profits in 2010.
Wednesday, March 10, 2010
Suppl Chain Trends
As a result of the crisis, CEOs are rethinking their strategy, reshaping their business models to take advantage of future growth opportunities.
How this impacts your supply chain operating model?
According to the 13th Annual CEO Survey released in January 2010 by PWC, the major initiatives the worldwide organisations are prepared to address in 2010 and beyond are:
1. Generate internal Cash flow to finance growth at an acceptable cost of capital as Banks will remain risk averse.
2. Adjust their business strategies and operating models in order to respond with more agility and in a more collaborative manner to the changing consumer behaviour and the wide fluctuations in market conditions.
3. Assign risk management to the entire organisation and engage to a long term performance and compliance management in order to align risks with strategic business planning.
4. Maintain/increase investment in the climate change strategies to take advantage of the business benefits such as new product leads, brand building/reputation management as well as corporate responsibility.
5. Collaborate with governments for a better enforcement over new regulation for financial sector stability and for social and environment sustainability without affecting the benefits of entrepreneurial initiatives.
6. Reinforce skilled workforce to increase risk awareness, market adaptability, change management capability and new customer demand responsiveness.
As Supply Chain and/or Procurement Directors, how do you think these corporate initiatives will affect your tactical and operational plans in 2010 and 2011? What initiatives are the most critical in your organisation? Do you foresee any major restructuring to complete these initiatives?
How this impacts your supply chain operating model?
According to the 13th Annual CEO Survey released in January 2010 by PWC, the major initiatives the worldwide organisations are prepared to address in 2010 and beyond are:
1. Generate internal Cash flow to finance growth at an acceptable cost of capital as Banks will remain risk averse.
2. Adjust their business strategies and operating models in order to respond with more agility and in a more collaborative manner to the changing consumer behaviour and the wide fluctuations in market conditions.
3. Assign risk management to the entire organisation and engage to a long term performance and compliance management in order to align risks with strategic business planning.
4. Maintain/increase investment in the climate change strategies to take advantage of the business benefits such as new product leads, brand building/reputation management as well as corporate responsibility.
5. Collaborate with governments for a better enforcement over new regulation for financial sector stability and for social and environment sustainability without affecting the benefits of entrepreneurial initiatives.
6. Reinforce skilled workforce to increase risk awareness, market adaptability, change management capability and new customer demand responsiveness.
As Supply Chain and/or Procurement Directors, how do you think these corporate initiatives will affect your tactical and operational plans in 2010 and 2011? What initiatives are the most critical in your organisation? Do you foresee any major restructuring to complete these initiatives?
Saturday, March 6, 2010
What is supply chain collaboration
What is supply chain collaboration?
Let's look at consumer-packaged goods for an example of collaboration. If there are two companies that have made supply chain a household word, they are Wal-Mart and Procter & Gamble. Before these two companies started collaborating back in the '80s, retailers shared very little information with manufacturers. But then the two giants built a software system that hooked P&G up to Wal-Mart's distribution centers. When P&G's products run low at the distribution centers, the system sends an automatic alert to P&G to ship more. In some cases, the system communicates down to the individual Wal-Mart store, allowing P&G monitor the shelves through real-time satellite link-ups that send messages to the factory whenever a P&G item swoops past a scanner at the register. Within the last couple of years, the relationship has expanded to include radio-frequency identification (RFID) technologies to gain even more insight into ridding inefficiencies in the supply chain.
With this kind of minute-to-minute information, P&G knows when to make, ship and display more products at the Wal-Mart stores. There's no need to keep products piled up in warehouses awaiting Wal-Mart's call. Invoicing and payments happen automatically too. The system saves P&G so much in time, reduced inventory and lower order-processing costs that it can afford to give Wal-Mart "low, everyday prices" without putting itself out of business. (For more on Wal-Mart's supply chain, see "How Wal-Mart Lost Its Technology Edge.")
What are the roadblocks to installing supply chain software?
Gaining trust from your suppliers and partners.
Supply chain automation is uniquely difficult because its complexity extends beyond a company's walls. Employees will need to change the way they work and so will the people from each supplier that a company adds to its network. Only the largest and most powerful manufacturers or retailers (i.e. Wal-Mart) can force such radical changes down suppliers' and partners' throats. Most companies have to sell outsiders on the system. Moreover, one company's goals in installing the system may be threatening to their suppliers, to say the least. For example, Wal-Mart's collaboration with P&G meant that P&G would assume more responsibility for inventory management, something retailers have traditionally done on their own. Wal-Mart had the clout to demand this from P&G, but it also gave P&G something in return—better information about Wal-Mart's product demand, which helped P&G manufacture its products more efficiently. In order for a company to get its supply chain partners to agree to collaborate, business leaders and supplier relations managers have to be willing to compromise and help partners achieve their own goals.
Internal resistance to change.
If selling supply chain systems is difficult on the outside, it isn't much easier inside. Operations people are accustomed to dealing with phone calls, faxes, spreadsheets or hunches scrawled on paper, and will most likely want to keep it that way. If management can't convince front-line operations people that using the software will be worth their time, they will easily find ways to work around it. Senior executives cannot disconnect the telephones and fax machines just because they have supply chain software in place.
Many mistakes at first.
There is a diabolical twist to the quest for supply chain software acceptance among employees. New supply chain systems process data as they are programmed to do, but the technology cannot absorb a company's history and processes in the first few months after an implementation. Forecasters and planners need to understand that the first bits of information they get from a system might need some tweaking. If they are not warned about the system's initial naiveté, they will think it is useless. In one case, just before a large automotive industry supplier installed a new supply chain forecasting application to predict demand for a product, an automaker put in an order for an unusually large number of units. The system responded by predicting huge demand for the product based largely on one unusual order. Blindly following the system's numbers could have led to inaccurate orders for materials being sent to suppliers within the chain. The company caught the problem but only after a demand forecaster threw out the system's numbers and used his own. That created another problem: Forecasters stopped trusting the system and worked strictly with their own data. The supplier had to fine-tune the system itself then work on reestablishing employees' confidence. Once employees understood that they would be merging their expertise with the system's increasing accuracy, they began to accept and use the new technology.
Let's look at consumer-packaged goods for an example of collaboration. If there are two companies that have made supply chain a household word, they are Wal-Mart and Procter & Gamble. Before these two companies started collaborating back in the '80s, retailers shared very little information with manufacturers. But then the two giants built a software system that hooked P&G up to Wal-Mart's distribution centers. When P&G's products run low at the distribution centers, the system sends an automatic alert to P&G to ship more. In some cases, the system communicates down to the individual Wal-Mart store, allowing P&G monitor the shelves through real-time satellite link-ups that send messages to the factory whenever a P&G item swoops past a scanner at the register. Within the last couple of years, the relationship has expanded to include radio-frequency identification (RFID) technologies to gain even more insight into ridding inefficiencies in the supply chain.
With this kind of minute-to-minute information, P&G knows when to make, ship and display more products at the Wal-Mart stores. There's no need to keep products piled up in warehouses awaiting Wal-Mart's call. Invoicing and payments happen automatically too. The system saves P&G so much in time, reduced inventory and lower order-processing costs that it can afford to give Wal-Mart "low, everyday prices" without putting itself out of business. (For more on Wal-Mart's supply chain, see "How Wal-Mart Lost Its Technology Edge.")
What are the roadblocks to installing supply chain software?
Gaining trust from your suppliers and partners.
Supply chain automation is uniquely difficult because its complexity extends beyond a company's walls. Employees will need to change the way they work and so will the people from each supplier that a company adds to its network. Only the largest and most powerful manufacturers or retailers (i.e. Wal-Mart) can force such radical changes down suppliers' and partners' throats. Most companies have to sell outsiders on the system. Moreover, one company's goals in installing the system may be threatening to their suppliers, to say the least. For example, Wal-Mart's collaboration with P&G meant that P&G would assume more responsibility for inventory management, something retailers have traditionally done on their own. Wal-Mart had the clout to demand this from P&G, but it also gave P&G something in return—better information about Wal-Mart's product demand, which helped P&G manufacture its products more efficiently. In order for a company to get its supply chain partners to agree to collaborate, business leaders and supplier relations managers have to be willing to compromise and help partners achieve their own goals.
Internal resistance to change.
If selling supply chain systems is difficult on the outside, it isn't much easier inside. Operations people are accustomed to dealing with phone calls, faxes, spreadsheets or hunches scrawled on paper, and will most likely want to keep it that way. If management can't convince front-line operations people that using the software will be worth their time, they will easily find ways to work around it. Senior executives cannot disconnect the telephones and fax machines just because they have supply chain software in place.
Many mistakes at first.
There is a diabolical twist to the quest for supply chain software acceptance among employees. New supply chain systems process data as they are programmed to do, but the technology cannot absorb a company's history and processes in the first few months after an implementation. Forecasters and planners need to understand that the first bits of information they get from a system might need some tweaking. If they are not warned about the system's initial naiveté, they will think it is useless. In one case, just before a large automotive industry supplier installed a new supply chain forecasting application to predict demand for a product, an automaker put in an order for an unusually large number of units. The system responded by predicting huge demand for the product based largely on one unusual order. Blindly following the system's numbers could have led to inaccurate orders for materials being sent to suppliers within the chain. The company caught the problem but only after a demand forecaster threw out the system's numbers and used his own. That created another problem: Forecasters stopped trusting the system and worked strictly with their own data. The supplier had to fine-tune the system itself then work on reestablishing employees' confidence. Once employees understood that they would be merging their expertise with the system's increasing accuracy, they began to accept and use the new technology.
Thursday, March 4, 2010
Lead; Don't Follow
Sure, we're in some challenging times economically. Sure, the landscape of business is going through massive upheaval. And sure society's look is completely different from even a year ago. Yet, the fact remains this is the single best time in the history of humanity to be in business - and to be alive.
There have never been so many opportunities to deliver rich value to your customers. It's never been so easy to build a globally admired brand. And there have never been so many chances to influence people by the example that you set - and the influence that you offer.
Real leaders have trained their brains to focus on the possibilities and opportunities available with military-like focus. They block out the noise of the doomsayers and shut out the voices of their critics. They get that their mindset and their personal energy are two of their most valuable resources. So then protect them well.
Here are 5 things you can to do rewire your brain to develop the mindset of the best leaders in business:
1. Sell Your TV
Ok, this might be a dramatic (game changing?) move. But much of TV news operates on the sale of fear. The more negative the news, the more scared people get. And the more scared people are, the more they'll watch the news. But every piece of data you allow into your mind is the seed of an outer result. Put excellent information in and you'll deliver excellent results.
2. Value The Great Ones
Reading heroic books, biographies of people who've done great things and listening to inspirational audiobooks is a brilliant move to create your best life. Leadership is a lonely sport. Critics will try and knock you down. Competitors will try and knock you out. And the unexpected will visit you just about every single day. Your antidote to the stresses that you'll face as you stand for your absolute best? Work hard to stay inspired. In a world that discourages, do whatever it takes to maintain your courage. To build out your dreams.
3. Watch Your Words
The words you use determine the feelings you'll feel. The best performers understand that each word spoken has power. Use positive, encouraging, energetic words. Avoid negativity, gossip, criticism and condemnation. Just watch what happens to your mindset (and heartset).
4. Avoid The Energy Vampires
Smart leaders get that who you surround yourself with drives who you'll become. Play with excellent, ethical, inspired and passionate people and their stardust will rub off all over you. Avoid people who can't wait to dump their resentment/negativity/anger and fear all over you.
5. Own Your Power
It's so easy to play victim versus be a leader (Without a Title). In my upcoming book "The Leader Who Had No Title: A Modern Fable on Real Success in Business and in Life" (public launch: April 6), I write that the key switch to flip that changes the whole game is this one: switch from victimhood into leadership. Too many people give away their power to create positive results. They blame. They make excuses. They do nothing.
But we all have power, even if we have zero authority. Every single person alive today has the power to inspire. The power to innovate. The power to influence. The power to act. The power to serve. And the power to Lead. Use it. Please. (The world demands no less of you!).
There have never been so many opportunities to deliver rich value to your customers. It's never been so easy to build a globally admired brand. And there have never been so many chances to influence people by the example that you set - and the influence that you offer.
Real leaders have trained their brains to focus on the possibilities and opportunities available with military-like focus. They block out the noise of the doomsayers and shut out the voices of their critics. They get that their mindset and their personal energy are two of their most valuable resources. So then protect them well.
Here are 5 things you can to do rewire your brain to develop the mindset of the best leaders in business:
1. Sell Your TV
Ok, this might be a dramatic (game changing?) move. But much of TV news operates on the sale of fear. The more negative the news, the more scared people get. And the more scared people are, the more they'll watch the news. But every piece of data you allow into your mind is the seed of an outer result. Put excellent information in and you'll deliver excellent results.
2. Value The Great Ones
Reading heroic books, biographies of people who've done great things and listening to inspirational audiobooks is a brilliant move to create your best life. Leadership is a lonely sport. Critics will try and knock you down. Competitors will try and knock you out. And the unexpected will visit you just about every single day. Your antidote to the stresses that you'll face as you stand for your absolute best? Work hard to stay inspired. In a world that discourages, do whatever it takes to maintain your courage. To build out your dreams.
3. Watch Your Words
The words you use determine the feelings you'll feel. The best performers understand that each word spoken has power. Use positive, encouraging, energetic words. Avoid negativity, gossip, criticism and condemnation. Just watch what happens to your mindset (and heartset).
4. Avoid The Energy Vampires
Smart leaders get that who you surround yourself with drives who you'll become. Play with excellent, ethical, inspired and passionate people and their stardust will rub off all over you. Avoid people who can't wait to dump their resentment/negativity/anger and fear all over you.
5. Own Your Power
It's so easy to play victim versus be a leader (Without a Title). In my upcoming book "The Leader Who Had No Title: A Modern Fable on Real Success in Business and in Life" (public launch: April 6), I write that the key switch to flip that changes the whole game is this one: switch from victimhood into leadership. Too many people give away their power to create positive results. They blame. They make excuses. They do nothing.
But we all have power, even if we have zero authority. Every single person alive today has the power to inspire. The power to innovate. The power to influence. The power to act. The power to serve. And the power to Lead. Use it. Please. (The world demands no less of you!).
Wednesday, March 3, 2010
10 Examples of Tremendous Business Leadership
Great leadership can be hard to come by. With all the politics and blaming that can go on within an organization, many companies are lacking good, solid leadership from people who are willing to stick to their word.
That's why it's always refreshing to see examples of great leadership in our society. Here are 10 examples of top-notch leadership from leaders who ultimately led by example, letting their actions (and bottom lines) speak for themselves.
1. How Southwest Handled 9/11
Southwest is known for their customer service. In an industry fraught with awful customer service, Southwest distanced itself from other airlines by putting the customer first, no matter what the situation.
On September 11, 2001, airlines were forced to shut down for days while the rest of the nation recovered from the terrorist attacks. This meant that all airline passengers, flight attendants and pilots were stranded with the planes across the country. Instead of merely sitting and waiting, Southwest employees were encouraged to take passengers bowling or to the movies to pass the time.
Many airlines started cutting jobs in the months following 9/11. The airline industry had been badly damaged, and many airlines were forced to cut their workforce by up to 20%. Instead of following the trend, Southwest made an announcement only three days after 9/11 that Southwest would be keeping all of their employees and starting a $179.8 million profit sharing payment to employees.
Southwest CEO James Parker believed that because Southwest had built their company on sound business principles for the past 30 years, they were able to handle crisis better than other airlines.
2. Toyota's Digg Transparency During The Recall
Toyota recently announced that they would have to recall 2.3 million vehicles for faulty brakes. Outrage ran rampant across the media and public. Complaints were filed and lawsuits were made. It appears as if the Toyota brand has been tarnished for many years to come.
Instead of letting a PR team handle the issue with only press statements and interviews, Toyota turned quickly and offered a live conversation on one of the most popular communities on the web: Digg.
The community behind the social news site Digg is generally quite hostile to corporations. So it came as a shock to many that the Toyota CEO Jim Lentz would appear on a Digg Dialogg to be asked all sorts of questions about the company and the recall. Over a thousand hard questions were submitted from consumers and even past employees, and Mr. Lentz answered as many as possible in the given time. The questions were asked in order of votes, and none were filtered. It was a totally transparent interview.
While the fallout of the recent recalls are massive, Toyota's openness will greatly help with minimizing the damage to the company's reputation.
3. The Redfin Blog Saved the Company
Glenn Kelman knows a thing or two about being humble. In fact, it's a method he's utilized to successfully bring his company into the online real estate industry.
Redfin is an online real estate brokerage firm that gives back two-thirds of the commission that traditional agents charge. Real estate agents hated it, and started blacklisting anyone who used the service.
So, instead of keeping the problem quiet, Kelman started a company blog that focused on many of the awful aspects of the real estate business. He also posted about internal struggles within the company, and even criticized himself on many occasions. The blog was raw and authentic.
Customers loved the transparency. They appreciated the fact that a CEO could make fun of himself and the dirty parts of his industry. Since starting the Redfin blog in 2006, business has grown dramatically. Kelman gave his reasoning to the openness in a Wired article.
"I honestly believe that if Redfin were stripped absolutely bare for all the world to see, naked and humiliated in the sunlight, more people would do business with us."
And they have.
4. Costco's CEO is the Normal Guy
Over the past five years Jim Sinegal has shepherded his company Costco to impressive returns. Costco's stock has doubled, and revenues continue to grow at an impressive rate.
Yet Sinegal might be better known as a man of the people at Costco. His name tag plainly says "Jim," he answers his own phone, and his plain office at the company headquarters doesn't even have walls. While other CEO's are spending tens of thousands of dollars just decorating their offices, Sinegal's pays himself a yearly salary of $350,00. Most CEOs of large company are paid in the millions. His simple contract is only a page long, and even includes a section that outlines how he can be terminated for not doing his work.
So how did he come up with that number? He figured he shouldn't be paid more than 12 people working on the floor.
His employee turnover rate is the lowest in the retail industry, over five times less than rival Wal-Mart. In an age where CEOs are paid in the millions and would never be seen in the "trenches," Jim Sinegal is an anomaly. And his workers love him for it.
5. How Starbucks' CEO Handled Company Tragedy
Starbucks is known for its exceptional treatment of employees, offering things like insurance to even part-time workers. When tragedy struck the company, it's no surprise that their CEO was able to comfort a hurting store and community.
In 1997 three employees were killed in a bumbled robbery of one of their Washington D.C. stores. Instead of issuing a press release or calling legal counsel, CEO Howard Schultz flew straight to D.C. and spent the entire week with the employees and their families in the area. Schultz's compassion and incredible leadership helped heal those closest to the tragedy.
6. IBM Encourages Blogging
At a time when the idea of "business blogging" was brand new (and usually feared), IBM encouraged their 320,000 employees to start company blogs. IBM leadership drafted a corporate blogging policy that encouraged employees to be themselves, speak in first person, and respect their coworkers.
The result? A marketing bonanza for IBM. Their company blogs are some of the most trusted technology blogs and generate tons of pageviews and links back to IBM. Instead of fearing the new technology, IBM embraced it, making their customers and employees very happy.
7. How Nelson Mandela's Father Made Tribal Decisions
Nelson Mandela is easily the most recognizable name in the Mandela family. Few people know of Mandela's adoptive father, Chief Jongintaba. Mandela credits Chief Jongintaba as a major source of leadership learning, and Mandela learned how to make important decisions based on how his father interacted with his tribe.
Chief Jongintaba was a tribal king, and would frequently hold meetings of the court. Men from all walks of life would gather in a circle and express their opinion. The Chief waited until every everyone had spoken before he would enter the conversation.
Mandela would later use his father's technique, gathering leaders at his kitchen table or in his driveway and holding discussions. Mandela would always listen first, and speak last.
8. TDIndustries Avoids Bankruptcy by Trusting Employees
TDIndustries is employee-owned and consistently on Forbes' Best Companies to Work For list. But the company almost didn't make it through the late 1980's without savvy leadership.
Many Texas banks were failing in the late 1980's, and TDIndustries was hurting greatly by the lack of funds needed to do large construction jobs. The company leadership informed their employees that instead of filing for bankruptcy, they were going to pay out the Defined Retirement Plan to its employees, and asked employees to use that money to reinvest into the company.
Because of the company's transparency and trust in their employees, the employees responded by giving back 30% more than what the company asked for. The money helped stabilize the company, and they weathered the rough financial spell.
9. Sun's CEO Fights for Internet Transparency
Jonathan Schwartz recently resigned his post at Sun with a Haiku tweet. While he was at Sun though, he was a major proponent of more transparency from CEOs. Schwartz was one of the first Fortune 500 CEOs to start a blog and opened up large companies to an excellent example of corporate blogging.
One of Schwartz's biggest moves as CEO was hosting a public debate on openness for companies on the Internet. Schwartz and SEC chairman Christopher Cox had an open debate on their blogs about the Regulation Fair Disclosure not including the Internet (or blogs like Schwartz's). By fighting for more openness from the SEC, Schwartz gave other customers and companies reason to trust his leadership.
10. Toro Adds Empathy to a Lawsuit Policy
Toro was going through major financial troubles in the late 1980's, and after a series of firings placed Ken Melrose as the CEO. Melrose was able to cut serious costs on lawsuits against the company by making a slight change: he added empathy.
Toro manufactures commercial lawn and golf course management equipment, and because of the machinery experiences many lawsuits. The company yearly sees around 100 serious injuries on average. Toro started sending a company representative to meet with the injured person and their family to see what went wrong, express the company's sympathy and try to attend to any needs the injured family might have.
Before they instituted the change, around half of the injuries resulted in a lawsuit. After the change, that number dropped to only a single lawsuit since 1991.
Wise Bread is a leading personal finance community dedicated to helping people get the most out of their money. Get daily money tips by following Wise Bread on Facebook or Twitter.
Photo credit: Aldo Murillo
Tags: glen stansberry, leadership, management, wise bread
That's why it's always refreshing to see examples of great leadership in our society. Here are 10 examples of top-notch leadership from leaders who ultimately led by example, letting their actions (and bottom lines) speak for themselves.
1. How Southwest Handled 9/11
Southwest is known for their customer service. In an industry fraught with awful customer service, Southwest distanced itself from other airlines by putting the customer first, no matter what the situation.
On September 11, 2001, airlines were forced to shut down for days while the rest of the nation recovered from the terrorist attacks. This meant that all airline passengers, flight attendants and pilots were stranded with the planes across the country. Instead of merely sitting and waiting, Southwest employees were encouraged to take passengers bowling or to the movies to pass the time.
Many airlines started cutting jobs in the months following 9/11. The airline industry had been badly damaged, and many airlines were forced to cut their workforce by up to 20%. Instead of following the trend, Southwest made an announcement only three days after 9/11 that Southwest would be keeping all of their employees and starting a $179.8 million profit sharing payment to employees.
Southwest CEO James Parker believed that because Southwest had built their company on sound business principles for the past 30 years, they were able to handle crisis better than other airlines.
2. Toyota's Digg Transparency During The Recall
Toyota recently announced that they would have to recall 2.3 million vehicles for faulty brakes. Outrage ran rampant across the media and public. Complaints were filed and lawsuits were made. It appears as if the Toyota brand has been tarnished for many years to come.
Instead of letting a PR team handle the issue with only press statements and interviews, Toyota turned quickly and offered a live conversation on one of the most popular communities on the web: Digg.
The community behind the social news site Digg is generally quite hostile to corporations. So it came as a shock to many that the Toyota CEO Jim Lentz would appear on a Digg Dialogg to be asked all sorts of questions about the company and the recall. Over a thousand hard questions were submitted from consumers and even past employees, and Mr. Lentz answered as many as possible in the given time. The questions were asked in order of votes, and none were filtered. It was a totally transparent interview.
While the fallout of the recent recalls are massive, Toyota's openness will greatly help with minimizing the damage to the company's reputation.
3. The Redfin Blog Saved the Company
Glenn Kelman knows a thing or two about being humble. In fact, it's a method he's utilized to successfully bring his company into the online real estate industry.
Redfin is an online real estate brokerage firm that gives back two-thirds of the commission that traditional agents charge. Real estate agents hated it, and started blacklisting anyone who used the service.
So, instead of keeping the problem quiet, Kelman started a company blog that focused on many of the awful aspects of the real estate business. He also posted about internal struggles within the company, and even criticized himself on many occasions. The blog was raw and authentic.
Customers loved the transparency. They appreciated the fact that a CEO could make fun of himself and the dirty parts of his industry. Since starting the Redfin blog in 2006, business has grown dramatically. Kelman gave his reasoning to the openness in a Wired article.
"I honestly believe that if Redfin were stripped absolutely bare for all the world to see, naked and humiliated in the sunlight, more people would do business with us."
And they have.
4. Costco's CEO is the Normal Guy
Over the past five years Jim Sinegal has shepherded his company Costco to impressive returns. Costco's stock has doubled, and revenues continue to grow at an impressive rate.
Yet Sinegal might be better known as a man of the people at Costco. His name tag plainly says "Jim," he answers his own phone, and his plain office at the company headquarters doesn't even have walls. While other CEO's are spending tens of thousands of dollars just decorating their offices, Sinegal's pays himself a yearly salary of $350,00. Most CEOs of large company are paid in the millions. His simple contract is only a page long, and even includes a section that outlines how he can be terminated for not doing his work.
So how did he come up with that number? He figured he shouldn't be paid more than 12 people working on the floor.
His employee turnover rate is the lowest in the retail industry, over five times less than rival Wal-Mart. In an age where CEOs are paid in the millions and would never be seen in the "trenches," Jim Sinegal is an anomaly. And his workers love him for it.
5. How Starbucks' CEO Handled Company Tragedy
Starbucks is known for its exceptional treatment of employees, offering things like insurance to even part-time workers. When tragedy struck the company, it's no surprise that their CEO was able to comfort a hurting store and community.
In 1997 three employees were killed in a bumbled robbery of one of their Washington D.C. stores. Instead of issuing a press release or calling legal counsel, CEO Howard Schultz flew straight to D.C. and spent the entire week with the employees and their families in the area. Schultz's compassion and incredible leadership helped heal those closest to the tragedy.
6. IBM Encourages Blogging
At a time when the idea of "business blogging" was brand new (and usually feared), IBM encouraged their 320,000 employees to start company blogs. IBM leadership drafted a corporate blogging policy that encouraged employees to be themselves, speak in first person, and respect their coworkers.
The result? A marketing bonanza for IBM. Their company blogs are some of the most trusted technology blogs and generate tons of pageviews and links back to IBM. Instead of fearing the new technology, IBM embraced it, making their customers and employees very happy.
7. How Nelson Mandela's Father Made Tribal Decisions
Nelson Mandela is easily the most recognizable name in the Mandela family. Few people know of Mandela's adoptive father, Chief Jongintaba. Mandela credits Chief Jongintaba as a major source of leadership learning, and Mandela learned how to make important decisions based on how his father interacted with his tribe.
Chief Jongintaba was a tribal king, and would frequently hold meetings of the court. Men from all walks of life would gather in a circle and express their opinion. The Chief waited until every everyone had spoken before he would enter the conversation.
Mandela would later use his father's technique, gathering leaders at his kitchen table or in his driveway and holding discussions. Mandela would always listen first, and speak last.
8. TDIndustries Avoids Bankruptcy by Trusting Employees
TDIndustries is employee-owned and consistently on Forbes' Best Companies to Work For list. But the company almost didn't make it through the late 1980's without savvy leadership.
Many Texas banks were failing in the late 1980's, and TDIndustries was hurting greatly by the lack of funds needed to do large construction jobs. The company leadership informed their employees that instead of filing for bankruptcy, they were going to pay out the Defined Retirement Plan to its employees, and asked employees to use that money to reinvest into the company.
Because of the company's transparency and trust in their employees, the employees responded by giving back 30% more than what the company asked for. The money helped stabilize the company, and they weathered the rough financial spell.
9. Sun's CEO Fights for Internet Transparency
Jonathan Schwartz recently resigned his post at Sun with a Haiku tweet. While he was at Sun though, he was a major proponent of more transparency from CEOs. Schwartz was one of the first Fortune 500 CEOs to start a blog and opened up large companies to an excellent example of corporate blogging.
One of Schwartz's biggest moves as CEO was hosting a public debate on openness for companies on the Internet. Schwartz and SEC chairman Christopher Cox had an open debate on their blogs about the Regulation Fair Disclosure not including the Internet (or blogs like Schwartz's). By fighting for more openness from the SEC, Schwartz gave other customers and companies reason to trust his leadership.
10. Toro Adds Empathy to a Lawsuit Policy
Toro was going through major financial troubles in the late 1980's, and after a series of firings placed Ken Melrose as the CEO. Melrose was able to cut serious costs on lawsuits against the company by making a slight change: he added empathy.
Toro manufactures commercial lawn and golf course management equipment, and because of the machinery experiences many lawsuits. The company yearly sees around 100 serious injuries on average. Toro started sending a company representative to meet with the injured person and their family to see what went wrong, express the company's sympathy and try to attend to any needs the injured family might have.
Before they instituted the change, around half of the injuries resulted in a lawsuit. After the change, that number dropped to only a single lawsuit since 1991.
Wise Bread is a leading personal finance community dedicated to helping people get the most out of their money. Get daily money tips by following Wise Bread on Facebook or Twitter.
Photo credit: Aldo Murillo
Tags: glen stansberry, leadership, management, wise bread
Monday, March 1, 2010
Don't Complain
5 Things To Do
Instead Of Complain
I’ve been speaking to a lot of organizations around the country and the one thing I keep hearing from leaders and employees is that complaining is at an all time high. I’m not surprised. There are two main reasons why we complain. 1. We complain because we feel powerless. 2. We complain because it’s a habit. The economy has shaken a lot of people’s foundations and we feel powerless which leads to a rise in habitual complaining.
So this week I want to encourage you to go on a complaining fast. Not because it will make everyone around you happier, although it will, but because it will help you experience more joy, peace, success and positive relationships. Believe me; I know a lot about complaining. I use to be a professional complainer and found that it not only sabotages your happiness and success but the morale of your team and family.
To help you break out of a “complaining” rut here are five things you can do instead of complain. These tips will help you realize you are not powerless. You have the power to choose your beliefs and actions. And in your focus on the positive instead of the negative you'll find the faith, strength and confidence to take on life’s challenges and identify the solutions to your complaints.
1. Practice Gratitude. Research shows that when we count three blessings a day, we get a measurable boost in happiness that uplifts and energizes us. It's also physiologically impossible to be stressed and thankful at the same time. Two thoughts cannot occupy our mind at the same time. If you are focusing on gratitude, you can't be negative. You can also energize and engage your coworkers by letting them know you are grateful for them and their work.
2. Praise Others. Instead of complaining about what others are doing wrong, start focusing on what they are doing right. Praise them and watch as they create more success as a result. Of course, point out their mistakes so they can learn and grow, but make sure you give three times as much praise as criticism.
3. Focus on Success. Start a success journal. Each night before you go to bed, write down the one great thing about your day. The one great conversation, accomplishment, or win that you are most proud of. Focus on your success, and you'll look forward to creating more success tomorrow.
4. Let Go. Focus on the things that you have the power to change, and let go of the things that are beyond your control. You’ll be amazed that when you stop trying to control everything, it all somehow works out. Surrender is the answer.
5. Pray. Scientific research shows that daily prayer reduces stress; boosts positive energy; and promotes health, vitality, and longevity. When you are faced with the urge to complain or you are feeling stressed to the max, stop, be still, plug-in to the ultimate power, and recharge.
Instead Of Complain
I’ve been speaking to a lot of organizations around the country and the one thing I keep hearing from leaders and employees is that complaining is at an all time high. I’m not surprised. There are two main reasons why we complain. 1. We complain because we feel powerless. 2. We complain because it’s a habit. The economy has shaken a lot of people’s foundations and we feel powerless which leads to a rise in habitual complaining.
So this week I want to encourage you to go on a complaining fast. Not because it will make everyone around you happier, although it will, but because it will help you experience more joy, peace, success and positive relationships. Believe me; I know a lot about complaining. I use to be a professional complainer and found that it not only sabotages your happiness and success but the morale of your team and family.
To help you break out of a “complaining” rut here are five things you can do instead of complain. These tips will help you realize you are not powerless. You have the power to choose your beliefs and actions. And in your focus on the positive instead of the negative you'll find the faith, strength and confidence to take on life’s challenges and identify the solutions to your complaints.
1. Practice Gratitude. Research shows that when we count three blessings a day, we get a measurable boost in happiness that uplifts and energizes us. It's also physiologically impossible to be stressed and thankful at the same time. Two thoughts cannot occupy our mind at the same time. If you are focusing on gratitude, you can't be negative. You can also energize and engage your coworkers by letting them know you are grateful for them and their work.
2. Praise Others. Instead of complaining about what others are doing wrong, start focusing on what they are doing right. Praise them and watch as they create more success as a result. Of course, point out their mistakes so they can learn and grow, but make sure you give three times as much praise as criticism.
3. Focus on Success. Start a success journal. Each night before you go to bed, write down the one great thing about your day. The one great conversation, accomplishment, or win that you are most proud of. Focus on your success, and you'll look forward to creating more success tomorrow.
4. Let Go. Focus on the things that you have the power to change, and let go of the things that are beyond your control. You’ll be amazed that when you stop trying to control everything, it all somehow works out. Surrender is the answer.
5. Pray. Scientific research shows that daily prayer reduces stress; boosts positive energy; and promotes health, vitality, and longevity. When you are faced with the urge to complain or you are feeling stressed to the max, stop, be still, plug-in to the ultimate power, and recharge.
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