Tag Archive: feedback

SIOP for Revenue Growth & Predictability

January 16th, 2020

We have received quite a few calls lately with the underlying theme of revenue growth and predictability. And, it got us thinking: Doesn’t every executive want revenue predictability and growth? Certainly the successful ones do!

If your revenue is difficult to predict from week-to-week, month-to-month and year-to-year, it might be time to think about how to design and implement a SIOP (sales, inventory and operations planning) process that will deliver these results for your business.

Similar to lean, the SIOP methodology alone is useless. Perhaps worse than useless because it might get your hopes up. On the other hand, if you think through how to design and implement the process so that it “works” in your business and supports your bottom line results, it might put you over that stretch target of revenue growth, profitability, or working capital effectiveness. At a minimum, it will align your resources and bring clarity and predictability to the situation so that you know which levers to push or pull to drive results.

How does SIOP enable revenue predictability?

  1. Demand plan: It starts with a demand plan. Once you align all sorts of disparate inputs to your sales forecast (within your organization, with your customers and supply chain, with the market and with your data and information), you will have the best view of your demand plan feasible.
  2. Supply plan: Since you align your demand plan with your supply plans (staffing, overtime, machinery, equipment, storage, supply base), you are much better equipped to deliver the demand plan with high levels of customer service and profitability.
  3. Metrics: SIOP incorporates the monthly review of key metrics related to demand and supply, so all relevant parties remain aligned on critical data points and progress.
  4. Continuous feedback: Since there are weekly activities with a monthly cadence, as business conditions change, any relevant and noteworthy changes and nuances are naturally incorporated into the plans and visible to all relevant parties.
  5. It’s about people; not data: As the EVP of Operations at Fender Guitar says in our interview below, it is all about the people. Although clients typically worry about syncing up data sources (which has to be a part of the process), the most important part of the process is to align people. Once Sales, Marketing, Business Development, Customers, R&D/New Product Introduction, Operations, Finance, and Suppliers are aligned, suddenly all the data concerns disappear.

 

As executives are concerned about potential recessions, impacts of global volatility, the Skills Gap and the Amazon Effect, future-proofing their manufacturing operations and extended supply chain is on their mind. SIOP is one way to future-proof your business so that it remains predictable while minimizing risk and maximizing outcomes.

Why not consider a SIOP assessment to fully understand your potential? Following the assessment, conduct a pilot SIOP process to see the what benefits emerge.  The value will become clear. If you’d like assistance to stack the deck in your favor with this process, please contact us.

Did you like this article?  Continue reading on this topic:

SIOP / S&OP and Bottom Line Results

The Strategic Benefit of SIOP



NOW is the Time to Invest in Employees

January 13th, 2020

Are you investing in your employees? If you have employees who want to do a good job but who don’t have the tools and skills to accomplish this goal, you’ll end up with frustrated employees who are not engaged. What percentage of your employees do you think are in this position? In our client experience, 70% of employees fall in this category!

Frustrated and not actively engaged employees do not deliver results. Not only are you wasting incredible talent, but you have unhappy employees to boot. There are countless statistics that tell us the dramatic impact of unhappy employees. According to a SHRM article, highly engaged employees were 5 times less likely to have a safety incident. In a separate example, increased employee engagement at Caterpillar saved the company millions in decreased attrition, absenteeism and overtime. It is certainly noteworthy!

According to our featured interview with the EVP of Operations at Fender Guitar, investing in employees in all seasons is key to success. Listen to our interview and how many of the core takeaways relate to investing in employees. It should give us pause to re-think our focus on all sorts of programs that don’t seem to deliver results. Instead, we should focus on our employees.

So, what are some ways we can invest in employees? Here are a few we’ve seen to deliver exceptional value:

  1. Gratitude – A simple thank you can go a long way!
  2. Specific feedback – Although all managers seem to fear providing feedback, the best employees value constructive feedback as well as genuine and specific positive feedback.
  3. Assign a mentor – This can bring meaningful and profound change and results. People learn by watching examples and trying new ideas with immediate feedback. That is what mentoring is all about when done well!
  4. Training programs – Building skills and gaining fundamental concepts are the essential building blocks of success. For example, for supply chain and operations professionals, the Association for Supply Chain Management’s APICS certificiations are best in class.
  5. Special programs for the “best of the best” – Instead of investing in our under performing employees by default, why not take the proactive approach and put together a special program with special experiences and training opportunities for your stars?
  6. Opportunities to try new approaches – One of the most important pieces to invest in employees is to allow employees to try new ideas. We must expect failure in our quest for success. Thus, it will require an investment of time, resources and potentially resolving the consequences of failures along the way.
  7. Celebrate success – Lastly, we should celebrate progress and success. As obvious as this seems, it isn’t commonplace.

Investing in employees is the best way to future-proof your manufacturing and supply chain. In fact, it is also the best way to future-proof your technology road map. Perhaps it is time to re-think your approach to investing in employees AND automation. These are not separate concepts as robots and autonomous vehicles will not work separately from human capital and talent. The most successful executives understand that the secret to success is how to invest strategically into both.

If you’d like an assessment of where you should invest (time, resources, money) to maximize your employee engagement and your business value, contact us if you’d like to assess your situation.

Did you like this article?  Continue reading on this topic:

How to Keep Your Team Engaged

Do You Treat Your People as Critical Assets to Your Success?

Profit Through People



The Skills Gap in the Modern Era

October 2nd, 2019

People are the #1 topic on our most successful clients’ executives minds. That’s because these clients realize that even the best strategies and plans will fail without people.

On the other hand, we have seen clients who appear the least likely to succeed, overcome great obstacles to not only become competitive but also to gain a strategic advantage in the marketplace. The secret ingredient is people. As a former VP of Operations and Supply Chain, there was no doubt that my success was directly correlated to the strength and attitude of my team.

Since it is such a key topic to ensuring growth and profitability, we wanted to dig into the current state of the skills gap. As a follow up to our research several years ago when we found that 87% of companies were experiencing a skills gap, we wanted to understand the current state of this topic and how it has evolved as we are knee deep in the technology era. For example, there is quite a bit of discussion on the topic of people vs. robots. Do we need to think about the skills gap if robots can take over? In other circles, the talk is all about artificial intelligence (AI). Will AI transform the industry? For example, there is a concern about this happening in the accounting profession. However, it might just mean that those trusted advisors must add value to what can be taken over by robots. That is certainly true in manufacturing environments. The skill requirements are changing. Perhaps we need people to interpret data? And how about to get people and technology to work together?

Please take our skills gap survey as we would appreciate your feedback into the following types of questions:

  • Which skills do you need the most?
  • Are technical skills enough? Do you need a savvy communicator as well?
  • How do you find your best talent?
  • Do you offer incentive to keep top talent such as rewards and recognition programs, performance management programs (tied with compensation systems) etc.?
  • How have you seen these requirements changing with the hot bed of technology?

A few highlights from what we’ve seen at a cross-section of clients across closely-held businesses to private equity backed companies to global enterprises:

  • Broad skills: Companies are looking for a broader base of skills. It is no longer sufficient to be an expert in a specialized area.
  • Presentation skills: Those who can present ideas effectively succeed whereas the most talented resources will struggle if they can’t get their ideas across.
  • Technology overload: Although everyone is interested in the latest technology, we are overwhelmed with all the options. Selecting just enough technology to advance a key point is often the best course of action.
  • Your network is your most valuable asset: It doesn’t matter if we are talking about a new hire, sourcing a supplier or getting just the ‘right’ trusted advisor at just the ‘right’ moment, the best way to find these resources is through your network. Are you nurturing your network?

The bottom line is that the most successful companies pay close attention to their #1 asset, their people. This idea extends to your customers, suppliers, trusted advisors and more since your face to your customer will be inclusive of each of these people. As the rubber meets the road, navigating your skills base will be of paramount importance.

Participate in our skills gap survey and we will ensure you are the first to receive the findings to help all of us successfully navigate the skills gap.

Did you like this article?  Continue reading on this topic:

People and Robots Can Coexist Successfully
Profit Through People



The Resilient Supply Chain: Cross-Organizational Collaboration

January 4th, 2019

I’ve been coordinating a process involving several disparate players, ranging from multiple educational institutions who are not aligned with one another, government players (with many differing goals) and business partners (with a completely different set of needs).  Although there are others, these 3 core groups are more than enough!

Success will only come to those who find common ground with collaboration.  If collaboration was as easy as simple communication, everyone would do it. We would probably have a lot more happy customers and more profits to share with investors, employees and for reinvestment and giving back.

What should we think about if this is the outcome we wish to create?

  1.  Look for the win-win-win –  If someone wins and someone else loses, it isn’t a successful collaboration.  If you think hard enough, there is usually a way to turn a situation into more of a win-win-win with some shared give-and-take.
  2.  Think about positioning –  If your idea is presented in isolation, it has a much greater chance at failing than if it is presented in light of the bigger picture. Why is it important?  How can each person play a role? Does each person know how he/she fits in and provides value?
  3.  Value diversity – Each time I think “I don’t want to be on this person’s team because he/she is annoying or won’t add value”, I find that I am completely wrong (luckily these are just thoughts, not actions).  The best ideas come from the most unlikely places.  And, interesting suggestions that can lead to “big” ideas typically come from someone who is quite opposite and thinking about the situation from a different perspective.
  4.  Recognize progress of the team –  Who doesn’t want to be recognized with a pat on the back as progress is made?  The key to collaboration is not to say positive things about collaboration and then reward individual performance.  Instead, reward team progress, even if that progress is simply gaining an understanding of how much they do not agree with each other yet are willing to listen.  
  5.  Consensus isn’t needed – As much as collaboration can achieve dramatically better results than each superhero individual thinking on his/her own, consensus is overrated.  Set the expectations upfront of how collaboration works. Feedback and input is expected. Discussion and debate participation is mandatory. But consensus isn’t required for every decision.  Otherwise, you might get there eventually but your competition will be LONG gone. More importantly, determine how to collaborate and make decisions upfront.decisions

The importance of collaboration comes up more frequently than almost any other topic.  Since executives are collaborating with customers, suppliers, trusted advisors, other supply chain partners and even competitors, there is just no room for poor collaborators.  

If you’ll notice, many disruptors collaborate with strange partners. Perhaps this core skill is a key ingredient to success…. Or, think of it another way, how will anything get done without it?

 



How to Keep Your Team’s Morale Up During Change

December 8th, 2016
team morale

Team morale can take a hit during times of intense change. Motivate your team with a relatable, easy-to-understand vision and keep them informed every step of the way.

Dramatic growth is commonplace. Companies are looking for opportunities to improve margins, accelerate cash flow and cut costs. Only those companies that change will endure. And only those teams that embrace change, and the leaders who engage people around change initiatives will thrive. The others will be left in the dust.

In order to create this type of engagement, leaders must support team morale during change. But if you think about it, why should this be an issue, if the change is presented properly from the outset? Who wouldn’t be excited about positive and interesting new opportunities?

Here are seven key ways to keep your team’s morale up when there’s a change under way.

1. Start with a compelling vision. People don’t fear change. They fear the unknown. Thus, one simple first step in overcoming this hurdle is to provide a vision (e.g., a reason for the change). Start by clearly answering the questions:

  • How will the change help the company succeed?
  • How will it help your customers?

For example, when I was VP of Operations for an adult incontinence manufacturer, we saw our job as helping our parents and grandparents maintain a quality lifestyle in their older years. It certainly provided a sense of purpose and vision to our projects —and this is valuable!

2. Translate the vision. Although lofty visions can be quite valuable, it’s also important to be able to translate those visions into something tangible. You want to be able to show how each department, team and person will relate to that vision, add value and contribute it as well. I’ve found that the most successful leaders take the time to help team members understand how their piece of the puzzle contributes to the bigger picture.

3. Collaborate on the plan. When team members participate in a change, rather than have it dictated to them, they’ll buy into the new way of doing things and feel good about it, too. You can make this happen by collaborating with your project team to build the new plan.

Provide guidelines, ideas and advice in order to spur the process forward. Ask for input and ideas from all team members. Don’t dismiss ideas without explaining why. And don’t just accept ideas to include input if they’re not optimal for the end result. Instead, be willing to take the role of a coach and facilitator.

After partnering on hundreds of projects over the years, I’ve yet to see one fail when it’s approached in a collaborative manner; but I’ve seen many fail when the approach is: “Just do it because I am your manager.”

4. Communicate the plan. A critical step for keeping morale up during a change initiative is communication! Just as people don’t fear change, they fear the unknown; they fear not understanding how they will get to the vision. In essence, the fear lies in no-man’s land —the uncertainty in getting from Point A to the “Promised Land.”

Thus, communicating the plan and allowing ample time for questions and answers is paramount to success. Again, feedback and ideas can still be incorporated if it makes sense. There is no reason to drive around the block three times to get to the same place you could get to by walking next door. In addition to providing information and comfort with the plan, you could pick up on superb ideas that will ensure success.

5. Manage the critical path. As in all projects, the critical path should be the focus. If the critical path stays intact, the project will likely succeed, even if it runs into non-critical path task bumps along the way. On the other hand, if the project team becomes distracted during the bumpy times and loses focus from the critical path, the project will veer off track.

Begin by explaining the importance of the critical path up front, so team members will understand why the focus might not be on their tasks. Make sure everyone knows they have an important piece in achieving the vision, no matter what the role. Ask all task owners to help each other and to succeed together.

6. Adjust as needed. As simple as it seems, don’t become so focused on your project plan that you lose sight of adjustments that should occur along the way. Since change is the only constant in business today, change will occur. Make sure you consider any changes that relate to your project and adjust accordingly.

7. Feedback. Last but not least, celebrate wins. Focus on strengths but do not ignore weaknesses that will impact success. If someone isn’t pulling their weight, have a conversation with them. One of the main ways to keep morale up is to address roadblocks and issues in an honest and respectful manner. Provide suggestions.

Once again, it’s not change that people resist, but the unknown. Strong leadership and project skills will go a long way toward navigating your team through the bumpy waters and on to success—and keeping morale up along the way!

Originally published @LiquidPlanner, July 20, 2015. http://bit.ly/2hoPOy0

 

Did you like this article? Continue reading on how to strengthen your Eagle Eye:

Vision Backed by BIG Goals and Leadership

The Value of Clear Communication