Apr 21, 2010 | Customers, Demand chains, Leadership
Integrated value chains are nothing new. IBM had one before it started “outsourcing” what turned out to be the future to Microsoft and Intel, Ford had one at centered around the Dearborn factory, from where the company controlled by owning everything from growing the cattle to supply the leather for the T model seats, to the end of the production line, and beyond, and even the Venetian shipyards way back in the 1400’s was an integrated chain.
What has changed are the tools by which we can manage integrated value chains, and the recognition that they do not necessarily need to be controlled by equity, the power of the customer is far more potent.
Apr 20, 2010 | Management, OE, Operations
Working my way through a book on the implementation of “Lean” called “Manage to learn” an interesting book that further evolves the textbook as a story genre started by Eliyahu Goldratt’s best selling book “The Goal” originally published back in the early eighties, I saw the list of questions reproduced below.
The book itself is about the learning how to use A3 method of problem solving and teaching that has come out of Toyota and is very useful, but it struck me that the list is a generic list of sensible questions that should be asked in a wide range of circumstances where solving a problem is the task at hand.
1. What is the problem or issue?
2. Who owns the problem?
3. What are the root causes of the problem?
4. What are some possible countermeasures?
5. How will you decide which countermeasures to propose?
6. How will you get agreement from everyone concerned?
7. What is your implementation plan—who, what, when, where, how?
8. How will you know if your countermeasures work?
9. What follow-up issues can you anticipate? What problems may occur
during implementation?
10. How will you capture and share the learning?
Answer all these, and the path will be very clear.
Apr 19, 2010 | Management, OE, Operations, Personal Rant
All you hear about currently is the Australian “health debate” a debate the pollies have decided to have as a political exercise, are discussions about who gets to spend the money i.e. exercise the power, it has little to do with the health outcomes of Australians, that is just the excuse.
Cynical perhaps, but if it were otherwise, you would be hearing real discussions about the manner in which the billions were spent, not how just much, and by whom. We do need more to be spent, but more importantly in a society where health costs are increasing rapidly, and will continue to do so, we need debate, and importantly action, on the effectiveness of the spending, and the means by which that effectiveness, measured by patient outcomes, can be improved.
Applying proven process improvement, Lean, and Six Sigma commercial disciplines to public spending should be a priority, but perhaps that would impinge on vested interests a bit much, so we leave it alone.
The parody via the “Lean” hyperlink above has a scary resonance, and we leave discussion about the effectiveness of spending alone, to the great cost of to our community over the medium & long term.
Apr 18, 2010 | Communication, Demand chains, Innovation, Social Media
Can you imagine the changes that would have occurred in the behavior of the tobacco industry in the 70’s and 80’s had there been the “net-enabled” communication tools available then, when the big tobacco companies were conducting a rear guard action against those who sought to have the lethal effects of tobacco on health made public.
Simply, they would not have got away with 20 years of denial, the ridicule circulating via blogs, twitter, Digg and all the rest would have been overwhelming.
When you think about it, the negative reaction that would have occurred may have been better than all the public advertising that has gone on since the 80’s, sanctimonious adults telling youngsters what to do (again) whilst still taking the taxes.
Apr 17, 2010 | Leadership, Personal Rant
“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”
The Roman historian and thinker Cicero said these words in 55 BC, but it could be any one of our current crop of pollies, from either side, although the language may be a bit polished for some of them.
However, we now explicitly understand the notion of public investment, and the associated debt as a means to build productive infrastructure to benefit the commercial activity of the whole community. In Roman times it was a matter of “Romanising the Barbarians” as a means of subduing them, the economic activity was a fortunate offshoot. (The link is to a wonderful book that casts an entirely different light on the popular view of Roman history)
Our forbears understood this when they built the train lines, bridges, and the Snowy scheme, that we still use today, but we appear to have forgotten the value of long term investments, and need to justify every activity in the current electoral cycle
Nonsense.
