Reflection: In corporations, many people are fed up with the typical bureaucratic reasons people use to dodge responsibility (i.e. making it "not my problem"). If you look at these same excuses (people/attitudes) outside of the corporate situation, they somehow seem more obviously unacceptable.
« August 2009 | Main | October 2009 »
September 29, 2009
September 24, 2009
Many people call a doctor when all they want is an audience: the game of consultants
Point to Ponder:
Good consultants tell you (in other words, help you see) what you think you know, in a way that you understand (to take action and gain value).
Because if you really knew what you think you knew, then (hopefully) you would have done something about it.
Story Line:
There are many games that are played inside the courtyards of corporations, but there is one exclusive game played only very high up in organizations - because it is an expensive game that requires big pockets (authorization levels) and requires the engagement of very skillful players to win.
This game is called The Game of Consultants.
Now like lawyer jokes, there are lots of consultant jokes. But just like many business situations, one party has a need and the other can offer value. Having dealt with many consultants (internal and external) for the past 20 years, here are some observations which may help you judge the effectiveness and value of this game:
1. “What a pity that you pay a man for telling you what you told him in the first place?” - That is what I said in 1989 (and how many feel) after the first encounter with an army of people from a consulting firm. But my curiosity prevailed and I got further engaged in a project to learn the value of consultants. Organizations lose control over infrastructure due to various reasons: silos, turf wars, rapid growth, lack of expertise in certain areas (and other causes I prefer not to mention until I retire). In such cases, it is very difficult to execute new ideas without an experienced, external, unbiased and non-threatening party.
2. A consultant plays roles equivalent to that of a therapist, doctor or a surgeon - depending on your need. A client (patient) spends most of the time talking about his problems, many times he seems to know the solutions as well. The consultant spends most of the time listening, and then like a therapist or a doctor prescribes specific medicines for a problem (tools from his bag of tricks). If you have multiple problems, you need to go back for separate consultation for each and get more prescriptions. If problems are major (declining market share, large inefficiencies) then consultants, like surgeons, recommend major overhaul of the system (BPR, TQM, Six Sigma, LEAN etc).
3. The corporate world is a stage, and good consultants are excellent choreographers. They organize information, people and other resources and present the overall picture in a way that is easy to understand and act upon (of course from their tool box).
4. In some situations, a consultant offers a third (out of the box) way to look at things. Imagine a dispute between two internal organizations. One says: "The glass is half full". The other says: "The glass is half empty". A motivational consultant would say: there is an opportunity to quench thirst. An efficiency consultant says: there is twice as much glass as necessary for the water. You can cut cost and save space by buying smaller glasses.
5. A good consultant can help organizations to get out of "Latch Up" mode. Even successful organizations fall into the trap of “this is how we have always done it”, and people become articulate in making excuses for the ways of the past. Those consultants who have dealt with many industries and companies can share best known methods and help break the latch-up.
6. Smart and long-lasting consultants never let his client feel foolish, even though he may ask or say something foolish. They know that the reason clients hired them in the first place is because they need help.
Reflection:
The most valuable learning from the game of consultants:
7. Does your organization continue to have learning disabilities, or can it create a self sustaining culture? Thirty years ago, I read a story about an executive and a consultant. The final scene was like this:
The consultant, after many months of research into the cause of problems in the organization, meets with the executive to share his final report. The report has seven recommendations. After listening to the first six, the executive gets impatient and tells the consultant, “so far I have not heard anything new. I will wait for the seventh and final recommendation to judge if you are worth the pot of gold that I must pay you.”
So the consultant gives his final recommendation: “You are saying that you already knew what was wrong and what needed to be done. Most likely, your people told you those six things many times. So my final recommendation is that if you still don’t do all those things you already knew about, and don't create a sustainable culture of continuous improvement, then you will forever play this game of consultants.”
The executive smiled and said, “Thanks, you have earned the pot of gold I promised you”, and handed him the check.
September 22, 2009
One way to make millions
Who is at fault here?
September 17, 2009
"Adios Amigo" - It's not how long you live, it is how well you live
“No matter what opinion Hollywood has of you, the fans never
forget you if you never forget them.” - Patrick Swayze in Entertainment Weekly Interview.
Story Line: “Adios Amigo” It is not how long you live, it is how well you live.
A short clip of the interview in 2007 gives an excellent
view of his values:
Reflection:
Certain lives stand out from the crowd. Patrick Swayze’s was one such journey; full of passion and love for his audience, his family and his work. Not a day went by where he did not give in his best in pursuit of his passion. He left the world stage at a young age of 57. But to take a line out of JK Rowling’s famous speech “It is not how long you live, it is how well you live.”
So using words from his movie ‘Point Break’: Adios
Amigo.
September 15, 2009
September 10, 2009
Cost is more important than quality, but quality is the best way to reduce cost.
Points to Ponder:
1. “Cost is more important than quality
but quality is the best way to reduce cost.” - Genichi Taguchi
2. "There is only rule of business, and that
is: make the best quality at the lowest cost possible." - Henry Ford
3. Quality, like beauty, is in the eyes of the beholder (the customer)
Story Line:
Genichi Taguchi, an electrical engineer from Japan, is world-renowned for his innovation in design of experiments and the Quality Loss Function. He emphasized the need for an understanding of the relationship between cost and quality in all aspects of the business and society.
The Quality Loss Function allows one to understand the costs associated with not meeting customer expectations (poor design resulting in: scrap, returns, rework, brand image) or the costs associated with over designing product (elegance) with features that are beyond what customers need or are willing to pay.
Simply put, “The quality loss function allows financial decisions to be made at the design stage regarding the cost of achieving the target performance.” (Quote attributed to Lyndsay Swinton)
The application of this concept in achieving quality through robust design of products is widespread. What I found fascinating about Taguchi Methods is their application beyond product; into Organizational Designs or Enterprise Design. The financial value generated in organizational area by robust design methodology can be enormous, especially for a large enterprise, and translates directly into product costs.
His three step design process (Systems Design, Parameter Design and Tolerance Design) focuses on identifying criticafactors in product performance, setting appropriate tolerance limits and then reducing variations to eliminate waste and thus to reduce overall cost.
So how do the Quality Loss Function and robust design play in the organizational area? (Bigger the organization, bigger the opportunity...)
1.Systems Design: Having a clear vision, knowing the primary purpose of the organization and constancy of purpose. This reduces huge variations and waste in resource consumption by reducing confusion, eliminating start up and maintenance costs related to "Program of the Year" and spending time clarifying misalignments.
2.Parameter Design: Being clear on what are the primary factors that affect the organizational performance. What are key stakeholders (customers, investors) measure of success? i.e. bottom line indicators (performance of products and services a.k.a. quality, price, profit, growth) for your organization?
3.Tolerance Design: What matters most should not be put at the mercy of what matters least. Maintaining tight tolerance and focus on critical parameters vs nice to have parameters.
The next step is simulation of the organizational design and reducing or eliminating waste contributors -- e.g. more than critical mass in the projects and meetings, often changing directions, not focusing on a few critical indicators.
Reflection: There is lot more depth to this subject, but I encourage readers to draw analogies between product and organization areas: you may discover huge opportunities to reduce overall cost as I have done since the time I met and learnt from Genichi Taguchi in those three days in early 90s.
September 08, 2009
Better than Yesterday
Reflection: True nobility/comparison is not in how much better you are than other person, but in how much better you are than you used to be.
September 03, 2009
Coming to think of it, who is the most important salesperson of it all?
Points to Ponder: “If you change the way you look at things, things you look at change.” Dr. Wayne Dryer
Story Line:
Coming to think of it, who is the most important salesperson of it all? (This FR was originally published on June 23rd 2005. Good to refresh the basics once in a while)
One of the best salespersons I have known once told me, “In sales, getting inside the customer’s door is half the job.” Businesses spend sizable amount of money (hundreds of millions for large corporations) on marketing, advertising, promotion, events and travel to get inside the customer’s door. Only after that can they talk about the merits of their products or services, make a sale, and deliver performance that can eventually establish their brand image. (Good Will)
Now think about the situation where many (hundreds on some days) potential customers are knocking on and walking through your door every day, without you having to spend the money. For a business, this sounds like a field of dreams. (“Wait, He is on to something.”)
That is exactly what happens when suppliers, job applicants and many other visitors come to your company’s doors. Even though they come knocking on your door for an opportunity to get our business or get a job, you in turn have a golden opportunity to make the lasting impression about your brand. Negotiate hard, interview tough but how you treat them as people, how you carry yourself as the representative of your brand (company’s and personal) makes all the difference in winning the hearts and minds of hundreds of potential customers every day.
Now a sales person would say, “This is what the dreams are made of. Is this heaven?”
In a nut shell:
Cup of Coffee and Doughnuts $2.00
Common Courtesy A Smile and a warm hand shake
Good Will Priceless
For Everything else?? (Nope, I am not talking about the master card)
See the next Line
You and Your Company’s Brand Image.