Jan 17, 2010 | Management, OE, Operations
Machine utilisation and machine efficiency are probably the most commonly used KPI’s used to measure the performance of factory management. Both serve a purpose, but they do not by any means describe the “whole”.
The factor that completes the picture is “flow”, the state where product “flows” uninterrupted from one process to another, at a rate dictated by demand from the market.
Most factory managers know instinctively, if not by data, that their factories run best when there is uninterrupted flow through the processes, but if they are measured on machine efficiency, (production units/time) as they often are, they will be pushed to maximise the efficiency of individual machine points, building up inventory elsewhere, and interrupting the flow, and compromising the productivity of the factory.
The measurement of efficiency of individual points of a production process is ingrained, it is a fundamental part of the cost accounting and investment disciplines we all take for granted, but badly needs to be re-thought and taught to emerging operations and general management.
Jan 10, 2010 | Management, Marketing, Small business
In a small business, every action has someone responsible for it, whereas in a large organisation , or worse, a public bureaucracy, nobody has responsibility for the dumb things they do, they just become an automatically imposed “rule” that carries the sanction of the organisation.
Taking responsibility is not just good policy, good for the employees, it is good marketing.
Jan 7, 2010 | Demand chains, Management, Strategy
Alliances form because organizations have similarities, and commonalities that promise synergy.
However, most alliances fail because they fail to manage the areas if dissimilarity.
Leo Tolstoy remarked that happy marriages were the result of the manner in which partners dealt with incompatibility, not how compatible they were.
It is the same in a commercial alliance, the literature is full of examples of alliances of one sort or another that emerged because of the prevailing logic of moving into adjacent market areas by merger or take-over, based on seemingly common customers, technologies, channels, or philosophies, only to find a disaster waiting because they failed to see how some dissimilarity that had not been considered relevant threw a spanner in the works, and cost the alliance.
After the synergies have been identified and quantified, but before the deal is done, have a separate group look for the areas where there are no synergies, where the organisations differ substantially, and assess their impact on the potential for disruption of the alliance working as well as the optimists predict.
Jan 4, 2010 | Change, Management, OE, Operations
Over many years, the best marketers I have come across have been trained as scientists, in a wide range of disciplines, many had no formal marketing training.
Took me a long time to figure it out, the scientifically trained people had as a part of their automatic response, a systematic process of collecting data, forming a hypothesis based on the data, testing it and looking for inconsistencies in the results, then forming a further hypothesis based on the better data to test. Kaizen or “continuous improvement” by another name.
It was an automatic, built in response that works really well in a marketing environment, particularly where many marketing people are inclined to see a problem and jump straight to a conclusion based on what has worked in the past, rather than a detailed examination of the root causes of the problem.
As I write this post, I am reflecting on the role of the “automatic” response being one that seeks to understand the cause and effect relationships underlying a problem, and how little we know about how to make our businesses embrace it across all functions and all challenges.
That would lead to systemic Kaizen, and should prove to be a potent competitive tool.
Jan 3, 2010 | Leadership, Management, Strategy
Is it just a date, or does it signify a new beginning?
A bit of both I suspect, and forecasting the future should be left to the ladies in tents at the circus, but a couple of things we know for sure:
Firstly, the infrastructure of the world economy will undergo a profound change over the next decade as carbon management emerges as the dominating political and economic factor after the turmoil in the Middle East, and the potential that has to blow up in our collective faces. How we manage it over the next decade will impact for generations, hopefully we can avoid the short-sighted, narrow, self interested and belligerent posture that created the middle east imbroglio in the equivalent decade a century ago.
Secondly, the world is now connected, the technical advances of the last decade will throw up huge opportunities to address the challenges and inequities we face globally, but will put many impediments in the way.
Are you ready for the ride?
Dec 17, 2009 | Change, Management
In today’s cross functional organisations, “Internal Marketing ” has taken on a whole new meaning.
In the past, functional battles were waged at the senior management level where the resource allocation decisions were made. Now, with cross functional teams and matrix structures having a much larger role, gaining the support of colleagues of differing levels and functional affiliation has become profoundly important. This means that persuasion, or internal marketing has a whole new role to play.
A couple of tips for building support.
- The old Scratch his back, scratch mine comes it the fore. If you support someone else, by speaking in favor, supplying information, or assisting in some way, the sense of reciprocity can be invoked when you need support.
- Invoking an individuals previously stated opinion or activity can swing support your way, as the individual has a degree of credibility invested in their stated positions.
Be careful however, as overt use of either of these strategies can be counter productive. Like anything, common sense and fair play are important.
