Lessons Learned from Failure

February 4th, 2012

Why do failures generate so much interest? Perhaps as students, we had it pounded into our heads that mistakes are bad – avoid failure at all costs. What can we learn from failure?

1. First, failure isn’t fatal - not only is failure not fatal but it also is critical to success. What?!? Yes, the only way to innovate is to try new things, which ensures failure somewhere down-the-line.

2. Leverage failure – If you’re going to fail, don’t hide under a bush! Instead, find out what happened so that you can leverage those lessons in your next attempt.

3. Ask questions – One of the best ways to discover the “small things” which are the difference between success and failure is to ask questions. Leverage the talent of your team, peers, and experts.

4. Leverage strengths – It might sound odd to look for strengths in failure but typically something went well, even if the task, project or experiment failed. See if there’s a way to better leverage your strengths.

5. Look for trends – As Edison failed countless times before his significant success, it is important to look for trends. Is there a trend of what’s working or what’s not working? Anything different or unique from one attempt to the next? Trends can be enlightening.

© Lisa Anderson 2012. All rights reserved.

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Top Strategies to Ensure Success in the New Year

January 31st, 2012

As we start the New Year, I thought it was worthwhile to discuss critical yet often overlooked blocking and tackling maneuvers that ensure success. As most are debating New Year’s resolutions and how to reengage after the holidays, why not get a leg up on the competition by excelling at what most know but do not use? Execution discipline.

Can you imagine your favorite football team going to the Super Bowl without practicing? Preposterous? Then, why do we think we can skip foundational elements of success? Instead, I find that those people and organizations that excel at the basics succeed every time. What are those top strategies that ensure success? 1) Organize. 2) Prioritize. 3) Plan & Execute.

1. Organize – There is no way to succeed if you don’t know what’s on your plate. You must organize! How will you find what you need when you need it? Have you categorized? For example, if my client has 1,000 customers, 200 suppliers, and 10,000 parts, how likely is it that something will be needed every day? Quite likely. And how likely is it that my client will be able to quickly understand how to find or where to look up information and/or whether it’s important to address quickly? It depends….how organized are they?
For example, are customers segregated by size, type, geography etc.? Does everyone know where to find notes on previous supplier meetings? Are part numbers segregated by product family, machine, customer, etc.? Organization doesn’t require rocket science but it does require thought.

2. Prioritize – Frequently, I’m finding that my clients could accelerate results simply by prioritizing. Not surprisingly, firefighting is common. After all, if an executive sees a fire break out (such as an angry, top customer or a demanding Board member), he or she will jump to put it out. The problem arises when we stay busy on a daily basis solely fighting fires.
Instead, we need to prioritize. I’ve been amazed as to how much progress I can help my clients achieve by assessing their situation and recommending priorities based upon what’s most critical to achieving the top company objectives.

For example, I helped a company who was struggling with a recently implemented ERP system to assess where to focus attention in order to rapidly restore service levels. Since there were thousands of issues to address (which can be common with system implementations), it became a real challenge for those fighting daily fires to climb out. In another example, I helped a company who struggled with lead times assess their supply chain network to determine which of the many potential process improvements to begin with in order to have the most significant and quickest impact.

3. Plan & Execute – Although vital to success, I find that my clients who do an effective job of organizing and prioritizing are twice as likely to have a playbook and are successful in achieving the touchdown when they need it. Yet the reminder is always welcome: Plan the work. Work the plan. As easy as these sounds, it is not often done. You can stand out in the crowd simply by developing a plan and executing the plan. Follow up and follow through.
I’ve consistently seen these top strategies “work”. They don’t require a degree from Harvard or vast resources and capital to implement. What’s holding you back from “blocking and tackling” in order to ensure success in the New Year?

© Lisa Anderson 2012. All rights reserved.

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What are the latest supply chain trends?

December 15th, 2011

How can we not only “get through” today’s new normal business environment but THRIVE? In my 20+ years of experience as both an Operations Executive and as an entrepreneur and business consultant who has worked with multiple companies ranging from start-ups to multi-billion dollar enterprises across varied industries and geographies, there are a few common keys to success. One of them is to leverage trends. Watch for key trends, spot changes or deviations and adjust and/or leverage these hidden opportunities – long before your competition even sees them coming.

Thus, my focus is on partnering with my clients to take advantage of this often overlooked strategy and deliver bottom line results. As I recently returned from speaking at and attending the Association of Operations Management (APICS) International Conference and had lengthy discussions with a book editor on these topics, I thought it was a good time to highlight the latest supply chain trends. The top few include: 1) Demand driven MRP. 2) Supply chain risk. 3) Supply chain sustainability. 3) Supply chain fundamentals.

1. Demand Driven MRP – A game changer! Let’s start with the basics – this is the new, fancy name for what I’ve always found to be the optimal yet often controversial solution for optimizing inventory planning results – reducing inventory levels, improving service levels, increasing operational efficiencies, reducing multi-level bill of material complexity, etc. It supports what is obvious to exceptional inventory planners – traditional planning methods don’t work (MRP). If that wasn’t bad enough, even the “latest and greatest” concepts don’t work: TOC (theory of constraints) and Lean.
Instead, demand driven MRP is a combination of MRP, Lean and TOC, and it “works”. Yet no system supports it fully, which is why it is often times extremely controversial. In my early days, I was thrown out of meetings and even roles for speaking a bit too loudly on this topic. Could I really be saying that I wanted to perform a critical function with Excel or Access (only utilizing system data) instead of fully utilizing a multi-million dollar system? I must be insane!

Imagine how excited I was when I saw a name and process put to what “works”! There’s no doubt – if you’re interested in results, use logic for inventory planning (demand driven MRP). My track record speaks for itself – consistent 50%+ reductions in inventory levels, dramatically improved service levels to the high 90%’s, improved operational efficiencies etc.

2. Supply chain risk – Supply chain risk has skyrocketed in the last several years. We’ve extended our supply chains. Gone global. Added complexity. Experienced natural disasters. Had conflicts (ports, wars, etc.). Suffered dramatic swings in currencies. Seen increased regulation. It has become a staggering effort to minimize and mitigate supply chain risk yet it’s vital to success. Those who figure out how to simplify profitably and mitigate supply chain risk will have the opportunity to leapfrog their competition in the new normal business environment.

3. Supply chain sustainability – My alma mater (UNC) is a leader in this field, which isn’t surprising as UNC is an innovator and ahead of the curve with leading-edge topics. Although I view much of this topic as common sense (again combining what makes sense of best practice manufacturing concepts, lean, green, etc.), there is an increased interest and heightened awareness in today’s new normal business environment as it achieves the triple bottom line – people, planet and profit.

4. Fundamentals - I typically stick with 3 core points; however, this one is too important to overlook – those companies who block and tackle better than their competition will outpace their competition and grow market share when everyone else struggles to remain flat – or even in business at all.

Think about how these trends impact your business. Since my brothers used to be heavily involved in ice hockey, one of my favorite analogies becomes applicable here: How can you skate to where the puck is going instead of skating to where it is?

© Lisa Anderson 2011. All rights reserved.

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Inventory Management Best Practices

December 8th, 2011

Does your company have effective inventory management policies? It can make a significant differences to not only your cash flow but also your customer service and productivity. I’ve worked with many businesses across multiple industries and geographies to implement best practices in inventory management. All-in-all, it boils down to a few keys to success. To hear more about these inventory managment strategies, listen to my video – click here.

© Lisa Anderson 2011. All rights reserved.

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How Do We Create a Customer Service Edge?

December 6th, 2011

In today’s new normal business environment, providing exceptional customer service is paramount as customer not only want “more for less” but they also will jump ship to who they can rely upon to deliver consistent, reliablye and exceptional customer service.

Check out my video on how to create a customer service edge. I discuss three strategies I’ve found successful in creating a customer service edge. Please watch it here.

© Lisa Anderson 2011. All rights reserved.

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Can You Prevent ERP Implementation Chaos?

November 29th, 2011

I’ve found that noticing and acting on trends can be a key to success from both a professional and personal perspective. Lately there have been plenty of trends to notice; however, a noteworthy one is that I’ve received several requests and/or inquiries about ERP implementation, post go-live support and how to leverage ERP systems to drive business results. One of my recent speeches, “Leveraging ERP for Bottom Line Results” has become a popular topic, and as companies are beginning to think about investing in ERP again, it is all the more important to ensure success with your ERP projects in order to achieve the expected returns.

In my experience in working with multiple companies in a variety of industries and globally on implementing and leveraging the use of ERP systems to drive business results, I’ve seen the good, bad and ugly and have derived a set of best practices for achieving success. A few of the keys to success include the following: 1) Build core metrics into the process upfront. 2) Focus on exception processes. 3) Look for ways to simplify

1. Build Core Metrics into the Process Upfront – Building core metrics into the process upfront is undoubtedly the #1 key to success. For example, in one Oracle implementation, the company went over and beyond to ensure success by hiring not only Oracle consulting experts but also process experts to ensure a seamless transition; however, there was a significant gap with the day-to-day business. As is typical in implementations, often your best internal experts become involved with the implementation (and not focused on prior responsibilities), transition to new functions in the business or are dealing with entirely new business processes tied to the new system; thus no one is minding the store.

In my example, although there were people tasked with metrics and it appeared that the teams were well-organized, no one realized they were shipping significantly less immediately following the go-live. Soon, it built on itself, and they were suddenly behind and scrambling in shipping, production, planning and purchasing as well. Customers suffered! And costs increased. Instead, I’ve found that if you determine your core metrics upfront (or as soon as you realize your gap) and develop a simple tracking process; you’ll avoid unnecessary chaos and upheaval to your business.

2. Focus on Exception Processes – I’ve found that although there is typically a concentrated focus on testing all of the core areas of the business, implementations fall short with exception processes. I’ve yet to see an implementation that wasn’t struggling to maintain deadlines; thus, you are often fortunate to get through the testing and pilot process with your main functions let alone exceptions. Unfortunately, how many typical days are without exceptions (no mistakes, no entry errors, no changes in customer orders, and no delays in purchase orders)? Not many!

As exceptions begin to occur, the processes fall apart. It builds upon itself as well-intentioned employees find workarounds to resolve the exception which creates down-the-line issues. Instead, it is vital to ensure exceptions are incorporated into the training process. If that ship has already sailed, make sure to focus a team of people on bringing the organization up-to-speed on how to handle exceptions.

3. Look for Ways to Simplify – Last but not least, look for ways to simplify – your processes, systems and implementation. It is easy to get side-tracked in complexity when implementing a new system, as you want the system to do everything you previously couldn’t do as well as you wanted in order to achieve your business goals.

However, I’ve found it is at least 10 times better to simplify: 1) Boil down your desires to your core business drivers – what are your profit drivers? What aligns with your strategy? 2) Align your systems with your core business drivers through your critical success factors – typically, there are a handful of functionality areas to focus on in order to ensure the system will support your business and guarantee a smooth transition with key customers. 3) Ensure that the team focuses on these areas, even if it’s at the detriment to the rest of the areas. I’ve found this is easier said than done; however, the rewards are substantial.

Implementing and leveraging systems can help drive business results; however, they often cost FAR more than intended with poor results due to implementation chaos. Take a look at implementing a few best practices and turn a potential mess into results!

Why not start on the right foot by syncing lean with the business strategy, integrating it into the culture and putting in the effort to implement solid operating principles? Not only will you deliver bottom line results but you’ll also develop a culture of continuous improvement?

© Lisa Anderson 2011. All rights reserved.

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The Power of Relationships

November 18th, 2011

The power of relationships is immense! I typically partner with clients to accomplish significant bottom line results on a wide variety of topics ranging from organizational change and culture projects to process projects such as service improvement, inventory reduction and lean programs to technical projects such as leveraging and implementing ERP systems, and there is one common element across all of them – the power of relationships. To add fuel to the fire, it also holds true for personal success.

As tempting as it might be for executives to think that “all will be fine” if only they implement the latest fad (even if it is a “good” fad such as lean, green or whatever will be the next fad, probably rhyming with “een”), technical bell and whistle or best practice process, don’t fall in the trap! Although many of these might be valuable from one perspective or another (which is why it is so common to take a trip down this rabbit hole), the 80/20 to achieving bottom line results goes back to people. So, why waste so much time, money and resources on the “20″ of the 80/20?

In addition to the traditional aspects of people (hiring exceptional people, valuing your employees, following a simple yet effective performance management process etc.), there is nothing more critical to success than developing and leveraging the power the relationships. Thus, a few tips include: 1) Take stock. 2) Build relationships. 3) Value your relationships.

1. Take stock – It sounds silly but it is not bad to start with simplicity – what relationships do you have currently? Which are those you consider long-term partners (customers, suppliers, trade association members, brokers, other people at your company or client, etc.) and/or people you’d like to stay connected to for the long term? Which are shorter in nature yet critical for a period of time? Which are already on a solid track? Which need help? Take a step back and think about how you’d prioritize? For example, as a leader, it is typical to spend the majority of your time on your non-performers yet your top performers deliver 80% of the results – where should you focus?

2. Build relationships – I’d be surprised if you didn’t find someone you need to build a relationship with and/or a relationship to nurture. So, how do you begin? How about taking a step back and thinking of how you can provide value to your employee, your boss, your customer, your supplier or whoever you’ve identified? No point in starting with what you want – how is that interesting to the other person? It’s not! Instead, ask compelling questions and listen – you’ll learn everything you need to know in order to build a relationship.

3. Value Your Relationships – My neighbor across the street from my house passed away suddenly recently – such a nice man. 15+ years ago, I remember him always wandering by to check on things if need be, and he really liked and appreciated my parents as they were whirlwind gardeners (and he didn’t even know what they did in the house!) – they came for a long weekend, and my garden/ landscaping could go from so-so to great in 8 hours flat! It makes you think – do you take your relationships for granted or do you value them? The same is true of your best, low-maintenance customer or supplier that you always overlook for your high-maintenance, low profitability customer.

There is only one nugget of wisdom which spanned every role in my 20+ year career without exception which ranged from roles of Production Planner to Project & Transition manager to VP of Supply Chain & Operations to Business Consultant, Entrepreneur and President of LMA Consulting Group, Inc. and APICS Inland Empire (and non-profits do throw a few wrenches into the mix) – it is the undeniable power of relationships. Think of it this way – who is there for you when the unexpected occurs? What are you doing to build and nurture your relationships?

© Lisa Anderson 2011. All rights reserved.

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Best Practices in Inventory Management

November 16th, 2011

In today’s new normal business environment, cash is king and service is paramount! Effective inventory management is vital to both.

Implementing solid inventory planning processes provide the ability to not only reduce inventory levels (free up cash) but also improve service levels. I often consult with clients to help them reduce inventory levels while maintaining/ improving service levels, or I help them dramatically improve service levels with inventory planning process improvements. In addition, improving inventory accuracy levels also improves both outcomes – frees up cash and improves service levels.

I’ll be discussing these strategies at a presentation at APICS Orange County on November 16th. Learn more and join us – click here

© Lisa Anderson 2011. All rights reserved.

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How can we implement sustainability?

November 13th, 2011

Not only is sustainability gaining traction as an emerging trend but it can also add dollars to your bottom line. Here are a few tips/ ideas:

1. Reduce waste – look for all types of waste; not just the standard trash cans of manufacturing waste. Think about the lean definition of waste.

2. Packaging – certainly there are countless opportunities in packaging. How can you optimize packaging while minimizing materials? Can you optimize for more efficient pallets? Truckloads?

3. Heating, cooling & lighting – there are often times hidden opportunities in these areas. Are you using the latest lighting technology? Have you reviewed your energy usage? Opportunities often times pop out.

4. Supply chain network – have you thought through the optimal supply chain network? Consider not just cost and lead time but also distribution patterns, the complete footprint etc.

5. Collaborative partnering – have you thought about how to partner with your customers and suppliers to not only increase sustainability but to also improve the overall supply chain performance? You might be missing a goldmine!

© Lisa Anderson 2011. All rights reserved.

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Is Your Inventory System Working?

November 8th, 2011

In my experience in working with clients across multiple industries, geographies and sizes, I have no doubt that effective inventory management is far from a no-brainer, yet implementing a few secrets to success can yield dramatic bottom line results. In today’s new normal business environment, characterized by sluggish growth, tight liquidity, elevated customer expectations and a general theme of “more for less”, companies need an inventory edge! After all, cash is king.

I watch trends closely as one of my secrets to success is synthesizing people, processes and systems from a cross-functional perspective to uncover hidden opportunities. Lately, I’ve seen an increased need for effective inventory management systems. Interestingly, the reasons stem from vastly different sources: 1) a decrease in profitability (which led to a need to track inventory more closely); 2) poor customer service levels (which led to a need to implement inventory management process improvements); 3) A need to free up cash (which led to a need for inventory and distribution collaboration improvements).

Inventory management could be the subject of my next 100 articles as there are many ingredients to an effective inventory system; however, I’ve boiled it down to a few questions: 1) Do you have the right talent? 2) Is your system working? 3) Have you eliminated complexity?

1. Do you have the right talent? – It is surprising how often this question is overlooked yet it is #1 to achieving bottom line results. Although inventory could be considered a “basic” fundamental skill and is often on the resume of every supply chain and operations job applicant, all talent is not created equal.
There is vast confusion surrounding inventory skills and which skills are needed for which job functions. For example, do you need inventory control? Inventory accuracy? Inventory planning? Supply chain planning? Inventory tracking? In addition, most of these roles require far more than inventory expertise; they require the right combination of analytical skills and communication skills. It’s one of the only roles outside of a CEO/ COO that often times puts you in the middle of multiple, competing functions……. got communication skills?

If there is one consistency, it is that if you find the right fit, you can develop the rest. More often than not, I find that the person already exists within the organization and is often underappreciated. Thus, secret to success #1 is to identify the person (or, in the rare case, find the person), give them the responsibility, communicate the new responsibilities to the organization and back it up with training and support.

2. Is your system working? – First, to clarify, when I refer to system, I mean the combination of the process and system. The second most common mistake is to try to put a square peg in a round hole. Instead of dictating the process or system based on whatever worked in a previous life or what your ERP system says is “best practice”, I’ve found the key to success is to understand what works for each particular situation (unique combination of people, processes and systems).
If you utilize a configured product, why are you adding enormous complexity adding 1,000′s of part numbers to address configurable elements? For example, if you produce doors, there is a standard door type (the base product), and then there will be thousands of iterations based on the dimensions, material type, color etc. The same can be true in aerospace for specs and characteristics associated with types of metal. Set inventory up to support your business.

If you have a complex, multi-level bill of material, are you lost in complexity? How can you simplify? If you are dealing with a product with lots or expiration dates, can you track it easily? No matter your product, can you get closer to your customer and find out what they are selling? What’s most important to your inventory? Focus on that!

3. Have you eliminated complexity? – Last but not least, I gain tremendous traction in delivering bottom line results solely from eliminating complexity. I find that complexity is enticing – the more complexity, the more people feel valued and indispensable. So, instead of getting lost in complexity, encourage and reward simplicity.
Get the team together and brainstorm ways to unscramble the complexity. Can you focus on just A items? What are other ways you can categorize your inventory in order to prioritize so that you focus on what will achieve the majority of your results? Can you start with one machine? One commodity? One location? One customer? One supplier?

If you improve inventory accuracy by 10%, you will end up with 10-100+% improvement in on-time delivery and/or efficiency. If you improve inventory turns by 10%, you’ll end up with MORE CASH and increased efficiency. Why not spend a few minutes to think about the question: Is my inventory system working?

And the list goes on. Undoubtedly, focusing attention on existing customers is not just a good idea, it is essential. Brainstorm the ways you can provide value to existing customers, and stay tuned for future newsletters as we delve further into this key to success. You don’t have to start with a complex plan – what is one action item you can do to improve current relationships?

© Lisa Anderson 2011. All rights reserved.

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