- Tie each person’s work to the result (for the company, customer etc.) – Wouldn’t you like to know WHY you are doing something?
- Take each employees’ ideas into consideration – Simply asking can go a long way if you truly care about the answer.
- Don’t treat each employee the same – don’t we each have different goals and interests?
- Are you developing your employees? – a little investment into your employees can go a long way.
- Do you address poor performers? – one of the biggest issues we see if letting poor performers carry on. Everyone knows it and is less motivated. Why not just proactively address? Provide an opportunity and swiftly address if necessary.
On the 10 year anniversary of my business, I recognized 10 people for 10 years as LMA Advocates – people who have gone over and beyond, resulting in LMA Consulting’s growth and success. I truly appreciate their support, expertise, ideas and feedback. I would not be here today without them – and certainly not leading a growing and leading edge consulting practice that partners with manufacturers and supply chain organizations to create BOLD customer promises and profits.
Ever since my 10-year bash, I’ve recognized one person each year on the anniversary of LMA Consulting. Thus, on my 14-year anniversary, I’m thrilled to announce Ron Penland as our 2019 LMA Advocate.
Ron Penland and I have known each other for over 10 years. We have collaborated for the mutual benefit of manufacturers, distributors and significant service organizations. We got to know each other well in ProVisors (where I lead the Ontario group) and Renaissance Executive Forums (where Ron leads Inland Empire groups). Not only has Ron been instrumental in introducing me to several key clients, but he also provides significant value with his leadership. His numbers speak volumes. For example, his member CEOs sell their companies for significantly higher multiples than peer companies/ executives. I appreciate the expertise and advocacy Ron has contributed over the years.
One tip to implement this week:
Are you recognizing people who have been instrumental in your company’s growth and success? More importantly, are you paying attention to the contributions along the way that result in the ‘big wins’? I grew up outside Chicago, and my brothers played hockey. My mom read us all a book on Wayne Gretzky who set the record for goals (894) as well as assists (1,963). The best players (Gretzsky) pass the puck in hockey! USA Hockey recognizes not only people who score multiple goals but also the people who achieve multiple assists. If you get 3 or more assists, you earn a “Playmaker” in hockey. Who is your “Playmaker” at work?
Find the gems in your organization and recognize them. Thank them in front of their peers. Tailor their ‘award’ to what is meaningful to them. Perhaps your winner wants to be on a special project team or attend a conference. Why not make it meaningful and demonstrate your appreciation for the contribution to success?
Reshoring was at record levels in 2018! Manufacturers are starting to return as they see the total costs of offshoring combined with the rising costs in China and improved competitiveness of the U.S.
According to an Industry Week article by Harry Moser, almost 1400 companies announced the return of 145,000 jobs in the last year. This trend was starting to occur prior to the tariffs. Now, the tariffs are expediting the return. Manufacturers are also realizing they can gain a competitive edge with rapid customization close to their customer base.
Additionally, even in commodity products, companies are reevaluating how to remain competitive and diversified. Hasbro is the latest company to look at diversifying away from China. According to Industry Week, Hasbro, the largest toy maker globally, said that it planned to move from 75% to 50% production in China by the end of 2020. They are looking at Vietnam and India.
There is a transformation occurring. Executives are more concerned about relying on any one source of production (China), and are diversifying. Intel is reviewing its global supply chain. And, there are rumblings that Apple and Amazon are working on a plan B.
What Should We Consider and/or What Impacts Could Arise?
Speed and agility are critical to thrive in today’s marketplace. Start thinking about how you can radically reduce lead times while accelerating cash flow (reducing inventory levels) and increasing profitability. It is no easy task . Yet, it is what is required to thrive in today’s Amazon-impacted world. What can you do to get ahead of this curve?
Like the big dogs from the Industry Week article, should you be thinking about diversification? Or should you be re-shoring? Or should you buck the trend and offshore while everyone else is re-shoring? There are many companies who would be in far better shape if they had taken that approach 10-20 years ago when every Board member wanted to see an increase in outsourcing. There are no perfect answers except to be thinking about these impacts on your industry, your supply chain partners and on your company so that you can take a proactive stance instead of a reactive one. What will you do to successfully navigate these waters?
Certainly, re-shoring, near-shoring and diversifying are topics related to creating a resilient supply chain. If you are interested in an assessment of your situation, contact us. You’ll find more information on these types of topics on our resilient supply chain series.