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How to Keep Your Team Engaged

August 31st, 2019
Every client is concerned about how to engage the team. Some executives are thinking about how to ‘keep good people’, others are thinking about how to enable ‘smart people to share what they know’, and still others know they need engagement to ensure customers are happy and bottom line business results occur.
According to Gallup, there is some positive news in that engagement is on the rise and is at an all-time high of 34%. With that said, there is such a long way to go to fully leverage already existing assets – our people! Time and again, the most successful companies actively engage employees in their work. The actively disengaged is down to 13% while ‘not engaged’ is 53%.
A few ideas to consider:
  • 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.


Manufacturing Summit Recap: Innovation & Top Talent

August 27th, 2019
My videos from the Manufacturing Summit, had key themes along with insight into the exciting opportunities for the Inland Empire and advanced manufacturing and how it all tied in with LMA Consulting’s “2019 Predictions from Manufacturing & Logistics Executives” document.

 

I’ve included the quote from Roy Paulson, president of Paulson Manufacturing to kick us off on the state of manufacturing. As Roy says, US manufacturers are thriving and will continue to thrive, assuming they have a focus on innovation.
Innovation is one of the key themes that emerged from the keynote speakers at the summit from Fender and Tesla as well as through the innovation award winners. Going hand-in-hand with innovation is a focus on people. Listen to my recap about the summit and what’s relevant to manufacturers today:
As Lance Hastings, CEO of California Manufacturing & Technology Association said at the summit, the Inland Empire is thriving. There was greater growth in the Inland Empire than any other area of California.  However, far more impressive than that is that the IE beat out the nation (in a state that typically isn’t too keen on manufacturing).
The Brookings Institute agreed with the conclusion in their recent study on the Inland Empire. One of the key recommendations was to create a consortium for advanced manufacturing and logistics success. You’ll be hearing more about this exciting, once-in-a-lifetime opportunity in the coming months. In addition, Governor Newsom is supportive of this path forward and so we are ‘jumping on it’.
If you are interested in staying in the loop on this initiative, please email me so I can add you to the distribution list.


Talent Transformation: People or Robots?

August 23rd, 2019
As much as I’m seeing last month’s feature article on the bedrock topic of inventory continuing to ring true (clients are gaining more interest in reducing inventory levels to free up cash), the promise of technology (automation and robots) is enticing many clients to at least assess what they should be doing when it comes to the topic of the talent transformation. I cannot think of a client that doesn’t have some sort of a talent gap.

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Recognition and the 2019 LMA Advocate Award

August 20th, 2019

 

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?

 

 



Manufacturing is on the Move

August 17th, 2019

 

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.