Archive for Change Management

Fair and Good Trade

datsunI made the trade for a Ford Taurus. By then my little red Datsun 210 had traveled from California to New Hampshire. It had carried me through my masters degrees, my early career days, into a marriage and kids. The seat fabric had rotted and split. The paint finish was crackled and faded. A family of mice had decided to store dog food pellets in the fabric roof lining. (We have ever since stored dog food in metal cans!) But this car meant something to me and it was a hard possession to give up. But I needed a car that didn’t slip and slide in the snow and that carried me with a little more dignity to my engineering manager job. So I made the trade. It was fair. It was good.

These days, in the midst of isolationist leanings, there is a great deal of talk about fair trade. The treaties that were enacted over a decade ago are being blamed as the root cause for all of our economic woes and lack of full employment. The US has 14 trade agreements in effect with 20 countries. We are in the process of examining and likely will be rejecting an additional Asia-Pacific trade agreement, known as the Trans-Pacific Partnership (TPP) Agreement and are in negotiations with the EU  regarding the Transatlantic Trade and Investment Partnership (T-TIP). Why are these agreements in place and are they fair and good? 

The argument for international trade agreements is that they reduce barriers to U.S. exports and protect U.S. interests and enhance the rule of law in partner countries. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment makes it easier and cheaper for U.S. companies to export their products and services. This is goodness if both parties have something valuable to exchange and if each side ends up satisfied with the arrangement. Right now in the US we are not satisfied. We have lost over 5M manufacturing jobs since the beginning of the century. Our annual trade deficit was $500B or 3% of the GDP last year. That money is used by foreign investors to buy real estate or businesses or other assets. But these stats don’t tell the whole complicated story. The complex story makes the solution complex. The WSJ covered this recently in an article on the Future of Manufacturing. If we close our borders to trade or if we heavily tax imports to slow down in the influx of goods, there are consequences.

  • We export more services than we import to the tune of about $300B. If we slow imports we could slow exports of our service industry thus hurting those US businesses.
  • If we tax imports of cheaper goods we are creating a regressive tax. In other words we will hurt the people with smaller incomes who can’t afford it.
  • We could lessen the value of our currency making imports look more expensive but that again will be a regressive action, hurting the wrong people.
  • Moving quickly could cause an economic backlash that could push the US into a recession.

None of the ideas above are easy to implement without repercussions. But we can take positive action to increase our competitiveness and move back to a positive trade balance. However, these ideas require leadership, partnership with government, some patience and a bit of altruism. We as a country seem to be short on those things right now.

  • Measure the costs: Company executives should measure the full, true cost of off-shoring. Doing the math rather than just following the crowd could accelerate the trend to keep manufacturing in the US.
  • Train workers: There is a gap between manufacturing workers needed versus available even today. This gap will increase as our baby boomers retire. We need to create training programs and apprenticeships like are available in Germany and other countries.
  • Embrace Technology: There are ways to improve our competitiveness and the time is ripe. Additive manufacturing, Internet of Things (IoT) and collaborative robotics are ways to use our technical prowess to beat the competition. US universities have developed and progressed these capabilities and progressive companies are employing them to improve productivity and features. The government should encourage investments in manufacturing technology. US incentives for investments in factory automation and research lags behind our competition.
  • Employ Lean and Agile Methodologies: Productivity in the US (GDP/hour worked) has increased year over year for 3 decades. In the first quarter of 2016 it actually decreased by .6%. We need to find ways of doing more with what we have. Lean for Manufacturing and Agile for Innovation are two proven ways to improve efficiency and speed up results.
  • Create Manufacturing Ecosystems: Regional governments have been encouraging a resurgence of focused manufacturing capabilities. Examples are the growth of automotive manufacturing in the Southeast or capital machinery in the Midwest. These clusters are attracting the right kind of workforce, setting up supply chains and are working with regional governments to create workable tax schemes.

We will not rewind time to the days when you could provide for a family and retire on one assembly worker’s wages. But it is possible to generate a good living with the new jobs that are emerging. A robot technician’s salary is about $60K.  A CNC programmer and operator earns about $40K. With the right kind of training and infrastructure we can revitalize manufacturing in the US and embrace good and fair trade once again.

Good and fair trade is within our reach. I gave up my Datsun with thoughts of better driving days to come. Similarly, we need to let go of the past and embrace a new manufacturing reality of automated factories building products the rest of the world will want to buy.

Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.      Barack Obama

Trickle-up: A Path to US Manufacturing

fountain2This is not a political post. It is a call to personal reflection and action. Politicians and policies can help change the rules but we are the change agents in our companies. We have gutted our manufacturing prowess here in the US. We can blame trade agreements, tax burdens, short term quarterly reporting or politicians. But we also need to look at executive leadership. I am guilty. I’ve been a manufacturing executive during the biggest downturn in manufacturing…ever. Since the 90’s we have been shuffling manufacturing off-shore at an amazing rate. We have lost over 8M manufacturing jobs since the peak in 1979 with most moving to Asia since 1999. While this trend has slowed and there is some evidence of a reversal (~800K net increase in manufacturing jobs returning since 2010), it isn’t enough and we need to take action. The economics are just about there. What isn’t clearly showing in the numbers yet is the longer term benefit of having a return of the manufacturing base. I call this a trickle-up effect.

Trickle-up is not a new term but is new in this context. The trickle-up effect or fountain effect is an economic theory used to describe the combined demand of middle-class people to drive the economy. The theory is credited to John Maynard Keynes early in this century. Because each manufacturing dollar supports $1.33 in output from other sectors, it creates a trickle of economic value. Manufacturing has the largest multiplier of any other industry sector. Reshoring is a way to multiply jobs and economic value for our country. In addition there are intangible business benefits like increased creativity, faster time to market and increased customer responsiveness.

The late Andy Grove said in a 2010 New York Times essay, that what creates tech employment is scaling. “Scaling is hard work but necessary to make innovation matter.” And now scaling is not happening in the US. The big tech legends like Intel, Tandem, HP, Sun, Cisco all scaled in the US when they started. Then we shifted manufacturing to Asia. Now, companies like Foxconn and Flextronics build our electronics products with millions of engineers, technicians and managers located in Asia. Let’s tune our innovation engine to include scaling. Tools such as additive manufacturing, collaborative robotics and IC manufacturing equipment are developed here. Let’s use them here.

If we agree that it is best for our country to bring these jobs back, how can we accelerate? We need to examine our decision criteria. In some cases the numbers are in our favor already. In other cases we need to take action as leaders to change the equation. Here are some practical actions to take:

  • Calculate the total cost of manufacturing before deciding where to build. Labor costs have increased in Asia and have decreased in the US. Energy costs are competitive. In some parts of the country the real estate is less expensive and local governments are interested in attracting industry by offering tax breaks. Automation can be used to increase quality and increase efficiency further. The Reshoring Institute has developed a Total Cost of Ownership (TCO) estimator that is free to use.
  • Assign a value to time. Manufacturing close to a development team accelerates time to market. Learning quickly through rapid prototyping and iterating designs based on real manufacturing input will shorten your time to volume manufacturing and that in turn gives you an edge over the competition. If your product goes to market 1-2 months faster, what is that worth?
  • Value Superior products. New technology needs an effective ecosystem in which technology accumulates. This happens between functional areas and between inventors and makers. We are missing an element of the creative process if we don’t include manufacturing in the cycle. It can be done with Asian partners but it often isn’t. Designers often don’t even see their product being built. They don’t interact with the builders of the product and they learn only through second-hand feedback.
  • Consider the cost of quality.  Ideally when there is a failure early in a product launch, it is quickly understood and either the product or the process changes to avoid that failure the next time. Tight feedback between design and build is the key to this rapid improvement process. Proximity matters. It doesn’t guarantee the close interaction between design and build but it takes down an obvious barrier.
  • Lower inventory levels.  Do this by moving manufacturing closer to the demand. This has been called “next-shoring” or “right-shoring”.  Companies can respond to changing demand because there is less inventory on its way. The need to commit to next season’s fashion a year ahead of time goes away. Colors, fabric, quantity, sizes can change as demand is better understood.  Inventory is expensive to store, ship, scrap and obsolete. The money saved by placing build close to demand can be taken to the bottom line. Companies like Nike, GE and Brooks Brothers are working on “next-shoring”.
  • Train. One of the biggest gaps we have is the readiness of our workforce for this strengthening in US manufacturing. As business leaders we should be readying our workforce to take on manufacturing jobs through apprenticeship programs, on-the-job training, internships, partnerships with local colleges and universities and funding for skills training.

Increasing our manufacturing base in the USA will trickle up jobs and prosperity. The jobs are good ones and they are multiplicative. Job creation matters. We have an financial obligation in business to sustain the society and infrastructure on which we depend. It isn’t altruistic. It is a long term fiduciary obligation. Our children will be better off. What kind of world will this be if we only have highly paid professionals designing products and the rest are unemployed or serving those who are highly paid? We need to take action to bring manufacturing jobs back to the US. It is the right thing to do.

Be courageous. I have seen many depressions in business. Always, America has emerged from these stronger and more prosperous. Be brave as your fathers before you. Have faith! Go forward. Thomas Edison

Deciding Which Way…

In Rotwo-roads-diverged1bert Frost’s poem, The Road Not Taken, a choice is laid out in the form of two diverging roads. While many interpret this poem as an encouragement to take a less traveled road, the poem doesn’t say this. Frost presents us with two paths that really look about the same. While he would like to have tried both ways, he had to decide and then “way leads on to way”. He won’t return to try the other path. A choice is made and then Frost tells us how he will describe this decision in the future.  He admits that he will likely point to this decision as one that made a difference. “Telling this with a sigh”, how can we make good decisions and then how do we live with decisions we have made?

  • Gather the facts: It is best to start out in an analytical mode. Understand the financial implications of a decision. Learn about the players already involved. Get information on the product if this is a career decision. Put information about an offer in writing and solicit input from experts on what is fair and appropriate. If you are deciding about a more personal matter the same concepts apply. What is the personal cost of proceeding? What will change in your life and does it matter? Size up the pluses and minuses. Write them down if that helps you get organized.
  • Consider the “way leading on to way”: Many choices we make will lead us down a path. Usually we can tell if the path is a good one. A degree in education will likely lead to a teaching job at lower pay but at great personal reward if this is your calling. A degree in engineering will open up many doors but will likely lead you to a desk job with less freedom to take blocks of time off or to work at home. Deciding to join a more established company could lead you to a number of job possibilities within the company but you will be a small fish in a large pond. Picking a smaller company will give you more chance to lead but you will not learn as much from others as you will likely be the only expert in your area. As you consider how the way will lead to another step, think about whether that path is where you want to be.
  • Heart check: While an analytical approach is a good backdrop for any decision and should shape how you feel, the tie-breaker is almost always the heart. More often than not there are two paths that both look pretty good. Perhaps like Frost one of the paths looks a bit more worn than the other but it is hard to see very far down the path and really there are few paths that haven’t been trod. What alternative feels right to you? Where is your passion. What do you wake up thinking about? Even if the direction you are leaning is the least understood, it might be the best for you if your heart is there.
  • Be brave: When you have weighed facts and honestly reviewed your heart’s desire, it is important to be brave with the decision. Have confidence in your abilities to do a job or make a move or change a career or launch a project. There is little that can’t be figured out with the right attitude and some passion. If we are not brave in our decisions they get made for us. Sometimes the options go away. Sometimes time and resources force our hand. So, when there is a decision to be made, make it and move.
  • Move forward knowing that you will spin the tale: This truth is a bit of a relief. We pick a path and it makes us who we are. When we look back we usually tell the story that our wise decisions got us to where we are. And honestly, we are right in part. If we make our decisions with the facts coupled with the heart and we bravely move forward we are likely to lead a life of adventure and learning. We are likely to be satisfied with what we have become. We are likely to be happy with our choices.

We all have choices to make. Be thoughtful, heart-full and brave and then pick your road. And God bless you on your journey!

The Road Not Taken by Robert Frost

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I—

I took the one less traveled by,
And that has made all the difference.

Start a Business Face First

Previews - Winter Olympics Day -2

Ride face first down a slippery track at uncomfortably high speeds. If you make it down successfully, do it again. Fast. Scary. No, not the skeleton luge. I’m talking about starting a company.

OK, perhaps this comparison is a bit far-fetched.  The sport’s first organized competition took place in the late 1800’s in Switzerland. People have been starting enterprises since civilization began. Back in Switzerland riders raced down the frozen road and the winner received a bottle of champagne. If you win with a company you can afford champagne for life. When you race down the chute in your skeleton sled, the path is cleared for you. You get to practice out of the public eye. You are protected with a helmet and a cool, slick suit. When you start a company, obstacles are thrown in your path by the competition. Everyone is watching. Cool, slick suits are frowned upon. It is, however, a good idea to wear a helmet.

I am not an expert at starting companies. But I have a story to tell. I am working in a start-up company now called Grabit, Inc. and have been on a steep learning curve. And I’ve lived in Silicon Valley for most of my adult life. Here, one can easily observe that starting a company takes guts, perseverance and a willingness to plunge without all of the information. Oh, and it is good to have a brilliant idea.

Summing up some advice based on my early experiences and observations:

  1. Learn fast. There isn’t time to study all of the options. Thank goodness for the internet. Learn from others. Gather information quickly. Make decisions fast based on what you can learn fast. Recently, I’ve had to make a call on a Product Life cycle Management (PDM) system for my new company. This decision could have taken months and could have been complicated. Instead, we relied on recommendations, best practices and low entry cost. If the decision is not a good one it can be undone and we can go on quickly. If it is the right decision we will be well on our way.
  2. Pick the right team. Synergy is your goal. The group that is put together should be greater than the sum of the parts. The skills are important but the ability to work together is more important. At Grabit we have formed a team that works together well. Egos are in check and everyone pitches in.
  3. Consider culture and pace. In the first few months of a company the culture and pace is established. Will the office be casual or formal? Will meetings start on time? What is acceptable dress code? Will people work on the weekends? Is work done in the evenings or on weekends? How does the group celebrate together? The imprint made at the beginning is hard to change. Purposefully driving values and norms will give you what you want in the longer term. We are “pot-lucking” monthly before our lunchtime staff meeting. This breaking of bread brings people together to share something personal. It is building community.
  4. Don’t spend too much money. Don’t overdo the stuff. Grabit’s used furniture isn’t elegant but it is perfectly functional. Shop for deals. Pay as you go for services to keep the risk down. Set an example as leaders in a new company. Fly coach and keep the frill factor low. It is all about cash. Start with careful investment, grow the value and options will open for later stages.
  5. Spend enough money. There is a time when it does makes sense to spend money and that is when it will accelerate your time to volume (TTV) or greatly lower your risk.  The decision can be made by calculating net present value (NPV) but the calculation is an estimate so can be jiggered to give you the answer you are looking for. Use you gut to balance cheap with reasonable. At Grabit we are trying multiple materials paths simultaneously in order to optimize the product while minimizing the time.
  6. Don’t confuse a brilliant idea with a product to sell. Designing something isn’t equivalent to building something and building one isn’t the same is as manufacturing in volume. Launching a product involves creating a controlled, documented design, picking parts and suppliers, developing a process, controlling costs and then marketing to, selling to and satisfying customers. Back to point #2, the team dynamic is critical. It takes a cross-functional team to ship a product. The CEO of Grabit understands this need and has brought in a cross-functional team to drive functional threads simultaneously. I am working on the supply chain design now so that we will ramp efficiently later.
  7. Eschew obfuscation. Or in other words, keep it simple. The most successful companies focus on a few things and knock them out of the park. Grabit’s technology can be used in multiple ways. We are focusing on a narrow set of applications in order to thoroughly solve those problems before moving to a broader set. It is tempting to answer all inquiries but deciding what NOT to do is as important as deciding what we WILL do.
  8. Enjoy the ride. Given that you will work hard to start a business it should be enjoyed. Find the joy in creating something that wasn’t there before. Make your mark. Stick your face out front and sail down the track.

Lizzy Yarnold of Great Britain won the gold medal during the women’s skeleton at the 2014 Sochi Winter Olympics.  She trained hard and competed well. Like Lizzy, if you are fortunate enough to be part of a start-up team, face into the challenge and enjoy the ride.

Leap and the net will appear         Zen Saying

Transformation

yosemite-valley_1304_100x75There is a bucolic meadow over the next hill. It is filled with just the right amount of sun and shade. Crystal clear water flows over a little waterfall into a pond. A sumptuous picnic is set out for you. The temperature is a balmy 74 and there is a hammock with your name on it. Ahhh, but to get there you have to climb up the hill in front of you. You have to make this climb while tieing complicated knots. And…it is raining on this side of the hill. This hike could take hours… Would you go for it or would you hunker down under an overhanging rock to tie your knots?  You might chat with your fellow hikers and suggest:

  • What if there is just another hill after this one?
  • What if the picnic isn’t that good after all?
  • What if there are bears over there?

How do you motivate humans to climb a hill in search of a better state? In business-speak, how do you get your employees to embrace difficult change even when there is a promised bright outcome? This is a problem faced regularly in the fast paced world in which we live. It is no longer ok to slowly evolve. Companies, functions, teams and individuals need to adapt more quickly or they will lose to another.

I have been steeped in the art and science of transformation recently as I’ve tackled challenging change projects with my corporate clients. It is a fascinating subject and one that I long to master. Given the rate of change I’ve just discussed, I don’t think it is possible to master anything completely. As soon as you “get it” more information is available.  But I am going to climb the difficult hill to get to a better place of understanding.

Here are the truths I know to be the foundation of transformation:

  1. Pick a grand vision with some heart. Continuous improvement is another subject. It is a good thing but not the same thing. And if you plan to involve more than a few people, you need to tug at heartstrings.
  2. Get on the same page. The leadership team needs to have a shared view of the future state. How to get there can be up for debate but the vision needs to be clear.
  3. Debate and even disagree. Transparent concerns are much better than passive aggressive resistance. Get it all said out loud and then pick  a path and move forward.
  4. Stay nimble. There will be redirects. Adapt to them but keep the direction constant. Success isn’t a straight line but it should be measurable and should track in the right direction.
  5. Make room. Carve out the bandwidth to do the work. Stop doing some things to take on this new work. Come on. People were already busy.  If you really believe in the future state then you can justify either a redirect or an investment of resources.
  6. Anoint the right leaders. Pick change leaders who are both good managers and good leaders. Execution, details, driving for results are hallmarks of good management. Picking the right path, inspiring others and breaking through inevitable obstacles are outcomes of good leadership.
  7. Build a change engine. The skill to transform organizations is becoming a key differentiator. There are very few companies that can avoid this need and those that can are probably small and stagnant. If a company is growing, shrinking or evolving these skills are critical. Train, develop, practice, reward, repeat.

The truth is, we are good at changing. Think of where you were 20 years ago. Now, harness that energy and knowledge of how far you have come  to fuel your own change engine.

Transforming Organizations: Hit the Heart

When I was ten we moved across town. I spent the first lunch hour locked in the bathroom of my house. I hated my teacher, Mrs. Hansen. She gave me detention for looking out of the window. I had no friends. I was in a new neighborhood, new house, new room and now new school. I had made the change but I had not transformed. I hated this new life and simply was not going back to school.

We are all faced with change. Companies change regularly and leaders are judged by their ability to visualize change, outline the steps to get there and then execute. The measure of success is numeric: cost reduction, headcount reduction, revenue increase, deadlines met. But how do you measure whether the change is embedded? Will the organization resist the new processes and thus limit the benefits?

Changing requires both doing something different and thinking differently about things. A good leader must bring the heart around.

  • Listen to the organization – Create working teams, feedback sessions, training opportunities and design sessions to make sure that the organization is on-board and has skin in the game.
  • Incorporate input – The listening is not just for show. If you want to get to the best solution for change you need to take input onboard. The best ideas come from a diverse organization. The best performing organizations are diverse.
  • Communicate progress – Do this in more than one way. Write newsletters. Send emails. Have coffee or tea meetings and open it up to questions. Show up in person wherever possible and let people vent, contribute and question.
  • Celebrate success – Often when moving fast it is easy to forget to recognizing the good stuff along the way. It is tempting to wait until the end even if you do remember. Not wise. The heart needs to be moved along with the process and organization changes. You will actually accelerate change by stopping to recognize the good stuff.

My first day of 5th grade was not a disaster after all. I did stay after school but in doing so met my best friend. Mrs. Hansen was very strict but ended up being my favorite elementary teacher. My friends and I bike-hiked to her house the following summer to meet her new baby daughter. Mrs. Hansen became a mentor.  I was not a fan of the move across town but ended up loving our house, neighborhood and school after going through my change of heart. What changed my heart was relationships and experience over time. Putting that language into work terms this looks like engaging people in the change with honest interest in what they contribute to the process.

Things do not change, We do
~ Henry David Thoreau

Product Actualization: Bento Box or Potluck?

During the many trips to Japan I’ve made over the years a bento box for lunch is common sup. Everything is neatly presented and fits into its section. There are many flavors but they don’t run together. Stuff stays where it is put because the box is compartmentalized. Sometimes there are familiar looking little finger sandwiches made out of white bread and what could be tunafish or chicken salad. Sometimes there are creatures of unknown origin. Always there is a neat lid that can be used to tidy up at the end.

It would be lovely if launching and ramping a product was like a bento box. If only we could keep things from blending together. If only the bad things could be ignored in their little compartment and eventually sent away with the lid on top. In the world of new product development, supply chains, manufacturing and logistics, stuff runs together.

As an operations executive I see the organization’s bias to keep things organized, separated, clean. Let the development team work their problems. Don’t slow them down. Let the marketing team think about product roadmaps and forecasts. Don’t second guess. Customer service can deal with quality issues in the field. There is no time to get to root cause with an angry customer on the phone. Just ship them a new one. But alas, without the messy cross-functional conversation and real-time data exchange the results are non-optimal. Sometimes the results are disastrous.

The international economy fluctuations have made the job of forecasting consumer goods next to impossible. I’ve worked hard in a previous position to shorten lead times to allow for faster reaction to changes in demand. But that wasn’t good enough. The breakthrough took place with a move to design the product so that we could postpone differentiation. The work was upfront with the design and marketing teams to design for postponement. The payoff is that a few “assets” could be built into many end products to meet localized needs. The result is less inventory, more availability, better customer satisfaction, lower lead time.

Potlucks are a messy, yummy, eclectic, out of control smorgasbord. When a manufacturing organization puts on a potluck it is the best darn eating you can find. There are typically dishes from all over the world. The tastes mix together on your paper plate…with any luck.

Product actualization done well is more like a potluck. The lines blur and true concurrent work happens naturally. Customer data is vigorously collected and then it flows freely to the cross-functional team. Manufacturing partners are brought in at ideation. The development team thinks about how to design for postponement. Marketing is working alongside the other functions to anticipate the localization needed and to make the product configurable as a last step. There are blurred borders and no compartmentalization and the result is a much more successful business.

Simplicity follows complexity. Business is messy.

Transformation is a Tactical-Strategic Combo

 I joined the company at a tumultuous time. The bad economy of 2009 caused this business to literally stop incoming shipments of product because inventory was building up. Ah, but then the customers came back and getting back to full speed was a long and painful process. Our major partner had closed down lines and they were slow to hire and ramp up their material flow. In the words of my sales counterpart, “you get me anything and I can sell it.” Problem defined.

To add insult to injury our contract manufacturing partner had a performance meltdown prior to my arrival. They were unpredictable in their delivery because of shortages and quality glitches. The cause of much of this was pull-ins within long leadtimes, in some cases as long as 24 weeks. Changing that was part of the eventual fix. But it shouldn’t have been a crap shoot when we were going to get product.

The staff working on the issues was scattered and unfocused. The prior administration was focused on future strategy which wasn’t all bad but the boat was sinking while the captain was plotting a course to the Bahamas.There was no future here without some short term triage accompanied by some systemic changes.

When an organization or situation calls for a dramatic overhaul the answer is a combination of tactical and strategic work to be done simultaneously. Here are some combo pointers:

  • Fix the immediate holes in the process with attention to detail but engage with suppliers and partners at a high level to set expectations for future change.
  • Measure ferociously to track progress while determining what success looks like. Make your goals public and celebrate as they are met.
  • Focus personnel in a laser-like way. Take the unessential off the of table. Assess the team’s abilities to execute but also determine what longer term action is needed. New talent infusion? Coaching for current staff? Often there is a need to reorganize to better match the work with the available talent.
  • Identify the root causes by engaging with partners, suppliers, staff, management and peers. Ask why five times. Don’t assume that the simple answers are the right ones. Often the real root cause is more engrained in the organizational behavior. Consider what the long term vision should be for the organization and incorporate the fixes into the future state. Don’t do that alone. Use the brains of the team.
  • Celebrate the success along the way. It is worth saying again. Say thank you to people as things transform. Pull away from the daily progress to make sure that the end state is a true transformation. Don’t stop at good enough.

The end of the transformation journey described at the start ended with a contract manufacturing partner rated the highest of all in the business, full product availability (apparently the sales organization couldn’t actually sell everything that they got) and an organization filled with strong, empowered employees. Systemic changes included a new SAP planning module, a metrics dashboard with weekly reviews and a 30% reduction in leadtimes.

A good leader leads people, not transformation. Change is hard for organizations because it feels like an uncontrollable outside force. Make it an inside force by harnessing the energy of your team.

“Change is the law of life and those who look only to the past or present are certain to miss the future.”

—John F. Kennedy