Tag Archive: Bottom Line Results

The Power Of Relationships

October 24th, 2013
Never underestimate the importance of relationships - especially their effect on the bottom line.

Never underestimate the importance of relationships – especially their effect on the bottom line.

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 rule 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?



ERP Implementation: Keys to Success

October 17th, 2013
 ERP implementation

Achieve expected returns from your ERP implementation by following three keys to success.

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?