Simple metrics drive results. Whether a food and beverage manufacturer or an aerospace distributor, measuring the “right” metrics will focus attention on key issues and drive results. From OTIF (on-time-in-full) to projected past due to reasons for operational inefficiencies, metrics will rally the team on the appropriate topics and highlight the bottleneck issues to ensure success.

Manufacturing & Distribution Metrics

Proactive manufacturers and distributors monitor a core set of metrics. Most clients track revenue month-to-date (MTD) and year-to-date (YTD). Some clients track total backlog while others track booked orders. Many track past due and a customer satisfaction metric such as on-time-delivery (OTD), on-time-in-full (OTIF), or fill rate. Differences start at this point with some clients tracking inventory levels, purchase price variances (PPV), operational efficiencies, waste/ scrap, inventory accuracy levels, a measurement of production output, quality metrics such as parts per million (ppm), holds, warehousing efficiencies, picked, packed and shipped units, freight costs, customer complaints, quotes, and many others. For example, read our article on Walmart and OTIF metrics.

How to Choose Metrics

With so many choices, the question becomes how to choose which metrics to track. If you track too many metrics, your metrics lose meaning and waste precious time and resources. If you track too few metrics, your team might focus on the wrong activities to drive results. If you track the appropriate number of metrics but focus on the wrong metrics, your team will not focus on the “right” activities. So, how do you know how many metrics to measure and which are the “right” ones for your business/ department?

After consulting with manufacturers and distributors for almost twenty years, it has become apparent that common sense will provide the answer. Start with your company objectives. Every client has a sales (revenue) goal. Thus, measuring progress to that goal makes sense to focus attention on potential issues that could negatively impact achieving that goal. Similarly, what other objectives are important to your company? Your metrics must drive the correct behaviors to focus attention on what the executives want to achieve.

If you are in a cash crunch, you should highlight inventory. If you are experiencing negative consequences due to supply chain risk, develop a metric around % of products and /or suppliers within your control or # of products reshored, nearshored, or with backup suppliers. Use uncommon common sense to drive the results desired. Do not overcomplicate it with metrics that might be helpful but will distract from the mission. No clients have excess resources to track metrics that will not add significant value.

Client Examples

In a building products manufacturer, the focus was on pounds produced and sku-level efficiencies. Because every executive from the CEO to the VP of Manufacturing focused on these metrics, the sites found ways to increase the pounds produced regardless of impacts to customer service and other areas of the business. For example, if Operations could run certain products where they gained pounds more quickly, they emphasized those items and deprioritized the ones that required more effort to gain pounds. Unfortunately, the outcome was that the metrics did not focus attention on the appropriate actions to drive results. We refocused attention on schedule adherence, past due/ projected past due, and capacity availability. Executives gained visibility to see how to fit in additional orders to increase revenue without increasing capacity, and they were able to plan ahead to keep service levels high while optimizing manufacturing efficiencies.

In an aerospace manufacturer, the focus was on profitability at each site as the General Managers were incentivized by profitability and revenue. This led to a focus on profit, not inventory levels. Fast-forward a year later, and executives wanted to reduce debt and increase cash flow; however, the site metrics did not encourage sharing of inventory if one site leader would lose and the other won in terms of profitability. The executive team assigned an executive to focus on inventory, provided the teams with resources including our support as inventory and supply chain management consultants, and added an inventory levels metric to the site’s performance and tied it to potential bonuses. In the next several months, we reduced inventory in the core product lines by 30-40% while maintaining / improving service levels, and the inventory team achieved a collective “win”.

The Bottom Line

Metrics will drive performance. Every company has limited resources, and so they need to focus only on what will drive results. Use uncommon common sense, and you will know which metrics to track and how many to track to achieve bottom line business results.

If you are interested in reading more on this topic:
SIOP Metrics: 5 Key Baseline Measurements

The post How Simple Metrics Will Drive Results appeared first on LMA-Consulting Group, a supply chain consulting firm.

With sustainability increasing in popularity and the carbon footprints of end-to-end supply chains evaluated, innovation and manufacturing will skyrocket.

Top manufacturers are prioritizing common-sense sustainability solutions to drive triple-bottom-line results. In fact, there is a significant opportunity for U.S. manufacturers to expand capacity and gain business with a significant advantage in sustainability over China and other manufacturing options. As sustainability continues to increase in popularity and end-to-end supply chain carbon footprints are evaluated, U.S. manufacturing will skyrocket. Technological advances and innovation drive sustainable manufacturing, and, according to the WIPO Index, the United States is one of the top countries in innovation.

Manufacturers are making significant strides in sustainability. There is a focus on sustainability in materials, manufacturing, product life cycle, and logistics. There are countless ideas for improving performance. For example, manufacturers are building sustainability into product design and partnering with suppliers to reduce materials, minimize waste, design for low-impact materials, and transport with a sustainable supply chain. In manufacturing, they can optimize processes to consume less materials and conserve energy and natural resources. There are a host of logistics programs rolling out across the board as well. For example, as regional manufacturing occurs, the distances travelled will be reduced, and as cleaner, energy-efficient modes and options are pursued, sustainability improves.

Pertinent Examples

According to GE, it launched the CFM RISE (Revolutionary Innovation for Sustainable Engines) Program as a part of its commitment to achieve aggressive goals for a sustainable future, including reducing fuel consumption and CO2 emissions by more than 20%. P&G is focused on water usage. Its goal is to increase water efficiency by 35% per unit of production and to recycle five billion liters in its facilities worldwide. Tesla is continually focused on sustainable manufacturing. For example, Tesla recently announced its goal to reduce the use of silicon carbide by 75%, significantly reducing its use of rare earth metals. Instead, the use of a permanent magnet motor will allow the company to scale production more efficiently.

Similarly, a healthcare products manufacturer put together a program to partner with suppliers to redesign materials to decrease usage without impacting product quality and manufacturability. Additionally, the manufacturer brought in the equipment supplier and raw-material supplier to assess how to best utilize its machine to minimize usage and waste, and installed visual inspection equipment to minimize waste due to quality defects. And finally, the manufacturer also brought its customers into the process to assess packaging to minimize plastic and packaging materials while ensuring that the product met the customer requirements, which positively impacted the sustainability of transportation as well.

Regional Manufacturing and Logistics Examples

For a multitude of reasons stemming from the pandemic, including supply chain risk and political risk, the transition to regional manufacturing clusters and reshoring/nearshoring of manufacturing is rapidly increasing in the United States and Europe. China is far less sustainable. For example, China is using the least efficient energy source that emits twice the amount of greenhouse gas than natural gas. According to NPR, China permitted two coal plants a week in the last year, which is six times more than the rest of the world combined. On the other hand, the United States uses mainly natural gas and has advanced manufacturing practices, frequently producing with the lowest emissions in the world.

The logistics arena has also made vast improvements. For example, according to PMSA, the San Pedro Bay Ports together saw steep and dramatic emissions reductions in 2022. The combined numbers reveal drops of 90% for diesel particulate matter (DPM), 97% for sulfur oxides (SOx), 63% for nitrogen oxides (NOx), and equally remarkable declines for other emission categories, compared to the baseline year of 2005. Cleaner, smarter transportation is also a high priority with a multitude of sustainability initiatives being pursued across all modes of transportation including rail, truck, pipeline, and air.

Innovative organizations are partnering with their end-to-end supply chain to create sustainable supply chains. The best-in-class companies are driving the triple bottom line with benefits to people, profit, and the planet. As sustainability gains momentum and end-to-end supply chain visibility is achieved, a manufacturing resurgence will follow.

If you are interested in reading more on this topic:
Sustainability Gains but the Technology Isn’t Always Ready

Originally published in Adhesives & Sealants Industry, November 2023

The post Sustainability Driving Triple Bottom Line in Manufacturing and Logistics appeared first on LMA-Consulting Group, a supply chain consulting firm.

Originally published in Brushware, July-August 2023

Manufacturing is in a state of flux. After seven straight months of contraction in manufacturing, it is not surprising manufacturers are thinking about cutting back. On the other hand, in many industries, manufacturers continue to have a robust backlog and are growing faster than their capacity. Simultaneously, there is significant transition and movement around the globe including dual source suppliers, reshoring, nearshoring, consolidation, and other changes. In this volatile environment, opportunities will abound for those manufacturers focused on creating predictable revenue and resilient operations.

How to create predictable revenue?

Smart manufacturers are getting ahead of customer demand instead of waiting to respond to changing conditions. A few of the best practices in addition to reviewing historical trends and growth patterns include getting on top of sales quotes, getting in sync with key customers, bringing market and industry conditions into the mix, and asking your customer facing team members for input.  proactively and aggressively managing inventory. These factors roll up into the demand planning and sales forecasting process within your SIOP (Sales Inventory Operations Planning), also known as S&OP process. Once you establish a sales forecast, you cannot rest. Depending on your situation, you must review exceptions and changes on a monthly if not weekly cadence.

For example, in working with an aerospace and defense manufacturer, the team was unsure if the demand was predictable enough to order materials and hire resources. Thus, we analyzed data, collaborated with sales and marketing, reviewed customer portals, and evaluated historical trends with contracts. Although the team was uncomfortable, we didn’t enable analysis paralysis. Instead, we took the plunge and piloted forecasts with 70% confidence. The team’s success seemed in direct opposition to their discomfort as their forecast accuracy was one of the highest in almost 20 years of consulting. Most importantly, by creating predictable revenue, Operations had time to prepare. Customer service rates (OTD, on-time-in-full) shot up and costs went down. Margins improved by 5%.  

How to create resilient operations?

Although having a directionally correct demand plan will provide an automatic boost in operational performance with solid leadership, it is no longer enough. To navigate volatility and prepare to take advantage of opportunities, manufacturers must be ready to scale on a dime or pull back without losing momentum. Creating resilient operations is key to success. SIOP remains integral to evaluating alternate strategies to fulfill demand such as make vs buy, dual source suppliers, reallocating production among sites, etc. Adding flexibility into operations is also important by cross-training, utilizing temporary employees, evaluating contract resources, outsourcing support functions such as maintenance, evaluating shift configurations and overtime strategies, and much more. Utilizing technology with automation, robotics, 3D printing/ additive manufacturing, and other strategies can provide quick scalability while maintaining profitability.  

For example, a food and beverage manufacturer invested heavily in cross-training and advanced skills development so that critical resources could respond quickly, and they developed strong relationships with temporary resource partners to be prepared to fill in rapidly when needed or scale back without losing meaningful critical talent. They also focused attention on automation, technology, and labor scheduling to ensure efficiency and scalability, and they were able to take advantage of opportunities to substantially grow the business.

The bottom line

Smart manufacturers will prioritize key customers’ needs and monitor quotes, sales orders, changing market conditions, and forecast closely. From an operations perspective, they will create flexibility, resilience, scalability, and utilize technology to not only save money and create a superior customer experience but also to ensure rapid scalability and flexibility. Leverage SIOP, best practice demand planning processes and uncommon common sense operational programs to ensure manufacturing success.

The post Predictable Revenue & Resilient Operations for Manufacturing Success appeared first on LMA-Consulting Group, a supply chain consulting firm.

Business Decision Tradeoffs Run Amok

Optimizing business decisions will make or break success. Executives get paid the big bucks to make these decisions. Unfortunately, one poor decision can outweigh thousands of good ones rapidly. SIOP (Sales Inventory Operations Planning), also known as S&OP, is a tool that will optimize these tradeoffs for effective decision making. You could simply call it “uncommon common sense decision making” where you look across the full spectrum for business impacts and determine the best path forward.

Several companies such as Anheuser-Busch and Target have lost significant business value recently after making decisions that cooled revenue. On the other hand, artificial intelligence (AI) has sparked vast growth in other companies such as Nvidia. This topic popped to mind as I see more and more clients struggling with key decisions in such an uncertain environment. For example:

• Should they invest in additional facilities to support projected future growth or find a way to staff up third shift with an uninterested workforce? If they choose the shorter term outlook, will they miss the wave of economic boom? On the other hand, if they take “too long” to make and execute decisions will they miss the opportunity?
• If they choose to reallocate orders among production plants to deliver on time, will the cost be overwhelming? However, if they delay shipment to mitigate substantial freight costs, will their customer go somewhere else with the next order?
• Should organizations transition away from China due to the elevated risk levels on multiple fronts? If so, should they move manufacturing closer to customers or to a lower labor cost country that is in a friendly region? Or should they simply diversify suppliers?

And, from a macro point-of-view, will growth be hindered by the rise in interest rates and potential recessions or will what looks like unrelenting economic growth continue?

How SIOP Will Optimize Business Decisions

SIOP (Sales Inventory Operations Planning) is a business process that organically brings tradeoffs to the forefront to align demand and supply (Sales and Operations) and enhance business decision making. To learn more about how the process works and keys to implementing it successfully, read our book, SIOP: Creating Predictable Revenue and EBITDA Growth.

From a decision making point-of-view, SIOP surfaces critical tradeoffs through the process. For example, although an industrial equipment manufacturer had plenty of capacity to meet their overall demand plan, they did not have enough manufacturing capacity to meet customer backlog for their large size products. Once they rolled out a SIOP process, they put together a consensus demand plan and translated that plan into a manufacturing and logistics capacity plan.

The manufacturing plan showed that there was not enough welders with the appropriate specialized skills for this product, and the logistics plan showed that there was not enough space to store these larger products in the building with the higher bay to keep up with the demand plan. Thus, the operations leaders evaluated the potential to offload / outsource. Because they had a unique differentiator on this product, it would slash their margin to unacceptable levels. Thus, they evaluated order policy tradeoffs of pricing and lead time to best support profitable growth while they evaluated long-term strategies to address this product line. SIOP brought the issue to light and provided a process to evaluate demand, capacity, and customer and product profitability to optimize their business decision making process.

As business tradeoffs build up, ensure you have a SIOP process to support your growth and success. There will be more opportunities to surpass the competition and shoot up to the market leader position in the next several years than there has been since the Great Depression. Be prepared to navigate these waters with effective decision making to set your company up for success for decades to come.

Please contact us with your tradeoff and decision-making stories, issues, and opportunities and what you’re doing to succeed. And, please keep us in the loop of your situation and how we can help your organization get in a position to thrive for years to come. Learn more about these topics in our blog and download your complimentary copy of our recently released special report: The Road Ahead: Business, Supply Chain & The World Order

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Posted in Adhesives & Sealants Industry, November  2022

With the increase in interest in sustainable materials and manufacturing, there will be a significant opportunity for U.S. manufacturers that use common sense, good manufacturing practices. In fact, because manufacturers have realized that it is far less environmentally friendly and energy efficient to produce in Asia, India, and the like, as sustainability increases in popularity and end-to-end supply chain carbon footprints are evaluated, U.S. manufacturing will soar. Technological advances and innovation drive successful sustainability in manufacturing, and, according to the World Economic Forum, the United States is one of the top countries in innovation.

Are you focusing on sustainable manufacturing? Successful companies are stepping up their efforts in sustainability. There are countless ways to improve sustainability while following common sense manufacturing practices. For example, manufacturers have rolled out lean initiatives, maintenance improvements, and machinery and equipment upgrades that have reduced the waste of materials. There has also been significant focus on rolling out improvements to reduce energy, material, and water waste. Additionally, companies have started using cleaner energy such as natural gas and renewable sources.

Pertinent Examples

According to Siemens, Coca-Cola HBC Australia has a priority to be as environmentally friendly and carbon efficient as possible in manufacturing. It has invested in a high-speed line that is not only one of the fastest in the world, but also energy efficient and water efficient. Additionally, 100% of the electricity comes from renewable sources, and Coca-Cola HBC Australia has put metrics and reporting in place to measure energy and water consumption.

Similarly, an absorbent products manufacturer focused on how to reduce materials, packaging, waste, and transportation costs to achieve the win-win of margin improvement and carbon-footprint reduction. Since pulp is one of the most water-intensive manufacturing processes, the manufacturer focused attention on updating and maintaining equipment, waste reduction and recycling, and auditing water usage. In the converting process, there was an intense focus on reducing waste and scrap by working with equipment suppliers, engineering, and operations resources, and by partnering with suppliers on material development. The company partnered with several suppliers to adjust material compositions and to jointly develop materials to run more efficiently on the lines with 20%+ less scrap and to reduce material composition without impacting product quality.

From a transportation standpoint, the R&D engineers and the packaging engineers redesigned the products, packaging, and manufacturing process to compress the product as much as possible without impacting quality. They also reduced the packaging materials and designed the product to maximize the pallets that would fit on a truck. Additionally, the logistics professionals implemented a transportation management system (TMS) to analyze transportation routes, carriers, and how to maximize the number of boxes on a truck. The system put together multiple-stop truckloads for shipping lanes to minimize transportation expenses as well as the carbon footprint. The bottom line equated to a 20-40% advantage.

A building products manufacturer focused attention on electricity costs and usage. It pursued several improvements to become more energy efficient. In addition to partnering with the local electric company and hiring an energy expert, the company conducted an energy audit and put together energy plans. It incented its people to work in non-peak hours to strategically schedule downtime during peak hours. The company also retrofitted and upgraded equipment, optimized air compressors, and improved its industrial furnace energy efficiency.

Resilient and successful organizations are partnering with suppliers on material formulation and adjustments, partnering with equipment manufacturers to optimize the use of the equipment to minimize waste and maximize efficiency, and are innovating within their organization to find ways to reduce energy, water, and material usage. Sustainability will not occur without internal and external focus. The most successful companies are focusing on win-win-win strategies to impact people, profit, and the planet. As sustainability gains momentum and end-to-end supply chain visibility is achieved, there is an opportunity for a U.S. manufacturing renaissance to follow.

The post Common Sense Manufacturing Practices Driving Sustainability Improvements appeared first on LMA-Consulting Group, a supply chain consulting firm.

Our most successful clients are constantly thinking about how to thrive in ever-changing, volatile conditions.  They cannot afford to wait to see what is working for their competitors and then go “all in”. Instead, only those who are resilient, innovative, and thinking five steps ahead will thrive in the next decade. 

Thus, they are constantly evaluating the marketplace, their industry, impacts related to the geographies they serve, and changes impacting their supply chain partners. They are looking for what trends might impact their business and if there are opportunities they should pursue. In addition, they are scanning the environment for potential bottlenecks and risks that could negatively impact their plans and assessing strategies to mitigate any serious risks. 

We see our role as staying ahead of the curve so that we can help manufacturers and value-add distributors proactively navigate these volatile times while growing the business, increasing EBITDA, and accelerating cash flow.  Thus, we’ve developed a proprietary process to incorporate the following:

• Industry Best practices:  incorporating the best strategies that drive proven results from industries as diverse as aerospace and defense, building and construction products, food & beverage, and life sciences will allow you to use proven techniques for the 80% while focusing extra attention to shine on the 20% that is your unique differentiator
• The Advantage of Size:  whether incorporating the nimble, entrepreneurial spirit of a small or medium size company, the results focus of a private equity backed company to the rigorous process orientation and cross-training advantage of a large, complex, global organization, your organization will gain.
• Global Trusted Advisor: including viewpoints from expert advisors from diverse disciplines (financial, legal, business), global communities, and trade and professional associations, you’ll gain valued insights instantaneously. 
• Practical Results: And, most importantly, we’ve bounced these against “what works”, is immediately pragmatic and has delivered rapid results.

5P Accelerator(SM) is our proprietary process that fast-tracks growth and profits.

Our 5P Accelerator(SM) focuses on the core factors of success:

• People:  Success begins and ends with people.  Clients that consider people their #1 asset far surpass the results – and more importantly, the engagement of their people than those who see them as costs. 
• Processes: Systems, processes, and technologies enable the standardization and automation of best practices while also accounting for the ability to tailor the process on the fly to support changing customer requirements and market conditions. 
• Plan: There is the “right” mix of planning the work; working the plan. Analysis paralysis and getting lost in plan details will lead to quick failure; however, on the other hand, jumping into action before ensuring you have a directionally correct plan will cause you to sprint on a hamster’s wheel getting nowhere. 
• Priorities: No two products, customers, or tasks are created equal, and if everything is a priority, nothing will be a priority. Since focus drives 80% of success, prioritization becomes essential. Think through benefit, impact, urgency, the rate the issue is improving or worsening, and sequencing when evaluating priorities. Choose no more than 3 critical priorities to focus on simultaneously.
• Profit drivers:  To ensure bottom line results, you’ll need to identify profit drivers. Search for those levers you can pull that will increase pricing power, reduce key cost components, apply technology and automation to increase margins, and that will differentiate you from the competition and accelerate growth. 

As you roll out the 5P’s, success will start to follow; however, to accelerate results and ensure sustainability in your rollout, it will be important to also pump up your wheel by understanding the power of focus, why speed is more important than perfection, and how relationships will drive your end-to-end supply chain success, and you will fast-track growth and profits.

Contact us if you are interested in leveraging 5P Accelerator(SM) at your organization.

Updated as of April 20, 2022

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CLAREMONT, CA—The changing work environment developing as the world emerges from the COVID-19 pandemic is leading companies to revisit best practices, according to The Society for the Advancement of Consulting® (SAC). Leading organizations are focusing on better use of technology, trust in leadership, developing more empathetic leaders, renewing the focus on customer relationships, and strengthening the connection to each organization’s purpose.

Better Use of Technology Drives Best Practices

“The most successful organizations will focus on being resilient and profitable,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc and manufacturing expert known for creating supply chain resiliency. “It is no longer enough to be the low-cost producer; it is far more important to stand out with exceptional, personalized service.”

“The most proactive clients are focused on retaining, developing, and acquiring top talent,” says Anderson. “Executives need this talent to determine which internal and external best practices will drive the best results. In addition, there is one area every organization has in common: better use of technology. This creates a superior customer experience, automates the repetitive processes, and connects systems within the end-to-end supply chain.”

Trust Is Now More Important for Leaders

Leadership will pivot on trust and leaders need three things to build that trust: a plan, honesty, and empathy, according to Constance Dierickx, PhD, president of CD Consulting Group, and author of High-Stakes Leadership: Leading through crisis with courage, judgment, and fortitude. “The plan must be logical. There is no substitute for that. Leaders need to say what they know and admit what they don’t. Honesty builds trust quickly, while insincerity and PR-talk kill it.

“The post-pandemic period is an opportunity for leaders to demonstrate empathy by celebrating extraordinary creativity and courage,” notes Dierickx. “It is important to use examples of heroism, but not to overlook less obvious examples. People who have kept the trains running might have been equally innovative. But they may escape attention unless the leaders make an effort to connect, listen, and learn.”

Blended Meetings Will Be Critical

Meetings should be online-first, says Sten Vesterli, who advises business and IT leaders worldwide on how to get full value from their IT investments. “With some employees enthusiastically heading back to the office, and others continuing to work from home, it is imperative to include those who decide to continue to work remotely.

“Most organizations still don’t have the infrastructure to conduct blended meetings where the remote participants get seen and heard,” explains Vesterli. “All meetings should be online—with in-office employees participating from their laptops. This puts them on a par with remote employees. Or, the meeting should wait until the weekly in-office day for everyone.”

Best Practices Are a Stepping Stone, Not a Destination

“Best practices are a place to start—a stepping stone,” says Heidi Pozzo, founder of Pozzo Consulting and author of Leading the High-Performing Company. “They should not be considered an end point because top-performing companies keep getting better and are often performing significantly beyond established best practices.”

“Many times what are purported to be best practices are actually average practices,” Pozzo points out. “For companies that are really looking to outperform their competition, look at what will set you apart in how you deliver your products and services.”

Establish a Sense of Belonging for Everyone

“In order for people to bring their best self to work, a sense of belonging needs to be established. Having a connection to an organization and team allows you feel you can be yourself and results in greater engagement in the workplace,” says Dr. Maynard Brusman.

“Empathetic leadership is key,” he notes. “Maximize joy and connection; minimize fear. While fear can be a powerful motivator, it also encourages people to narrow their perspective—the exact opposite effect needed to create a psychologically safe workplace.”

Dr. Brusman advises his executive coaching clients, “Frame challenges through a lens of possibility. Elevate the power of collaboration, creativity, and storytelling to create greater potential for positive change.”

Look at the Nimble Practices of the Last 16 Months

“The best practices of yesterday are just that—yesterday,” says Kathleen McEntee, president of Kathleen McEntee and Associates, Ltd (KMA), a full-service marketing firm that helps companies reach their target markets with the right message, through the right media, for the greatest impact.

“As we emerge post-pandemic, we have benefited from the innovation and creativity of responding to a crisis,” claims McEntee. “Take a look back at the last 14 to 16 months. Identify what has and what has not worked for your firm. You most likely adopted and created best practices as you felt your way through the minefields. You probably are continuing to do so.

“Best practices should be nimble and reflective of the current business environment,” she adds. “They are not meant to be rigid and inflexible. As organizations look to adopt best practices, it is important that they are practical and demonstrate a best of the best approach to delivering products and services with the customer experience in mind.”

Anticipate What Customer Needs Will Be

The systemic changes in how business will be conducted post-pandemic make it important for organizations to evolve accordingly, rather than expecting customers to act as they did in 2019, according to Linda Popky, president of Redwood Shores, CA-based strategic firm marketing firm Leverage2Market Associates, and author of the book Marketing Above the Noise: Achieve Strategic Advantage with Marketing That Matters.

“Marketing efforts should focus on how the organization can help improve conditions for customers now and in the future,” she says. “It’s critical to help customers clearly understand that as a supplier or partner, you are not just focused on meeting their current needs but anticipating what new requirements they’ll have in the future.

“To paraphrase hockey star Wayne Gretzky, look to where the business needs will be—not where they’ve been, or even where they seem to be today,” she adds.

Be Specific and Forget the Fads

“Best practices have to be far more targeted to specific markets,” says SAC Founder Alan Weiss, PhD. “The best practices for restaurants (e.g., providing more benefits to food preparers), for retail middle management (providing more agency), and for airline personnel (providing more safety from unruly customers) will be different. Generic management fads like ‘Good to Great’ will simply fade away.”

Originally posted on ExpertClick: August 1, 2021

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As companies move to “blended” BPR, which seeks both long- and short-term benefits, they realize the need to involve different people and think differently about these projects than before.

“People are always saying that IT needs to get closer to the business,” says Jerry Luftman, executive director and distinguished professor at the Stevens Institute of Technology “But business needs to get closer to IT too. For years, MBA programs and executive training programs have focused on the wrong things, such as the technical elements that turn people off. Businesspeople don’t need to know how to write software. They need to understand governance, the strategic operational point of view, how to demonstrate value, and what their role is in a major IT initiative.”

Lisa Anderson, head of LMA Consulting Group, Inc., a firm that works on supply chain and inventory projects, says the most successful reengineering projects involve progressive IT leaders who partner with business units. “You need to find people in the IT departments who have strong business acumen,” she says. “You need people who will sit down and explain, in non-technical terms, how they can leverage new technologies like business intelligence to improve inventory levels, supply chains and other processes.”

This type of business-first partnering has become more commonplace during the recession. The evolving nature of BPR has also increased the need for speed. “The time frame for most new projects now is yesterday,” jokes Ron Wince, CEO of Guidon Performance Solutions, a business process consulting firm, who adds that there’s a heightened focus on change management.

“Change management has always been an afterthought,” Wince says. “Even when companies did think of it, they didn’t really ingrain change management into the decision-making process as they do now.”

Click here to read more.

Published in Wall Street Journal on May 11, 2020

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My colleague and I led a Kaizen workshop on metrics last week with a process manufacturing client.  It is always interesting to brainstorm which metrics are the most relevant in tracking a company’s success.  They are NOT always the same.  Companies are in different industries; they are different sizes; the profit drivers of the business are different; executives’ focus is different…..and the list goes on.   However, every business should take a few minutes to strategize on metrics.  Do you know what you are doing AND whether the metrics you are tracking are relevant to your success?

One tip to implement this week: 

As we said in kicking off the metrics Kaizen, it can be a great place to start by taking stock.  What are you tracking already?  Why?  Do you make decisions based on the metrics you track?  If not, why not?  In essence, take a pulse.  Next, it can be quite valuable to gain feedback on what should be tracked.  Have you asked the people talking with customers on a daily basis?  How about those producing and shipping to your customers?  I bet they will have something to say!  Certainly, executives always have a wish list for metrics.  Do you know which metrics are on the list?  

Although you might be tempted to jump on the long list you are likely to generate in talking with all the stakeholders in the organization, don’t do it!  Make sure to understand the impact.  Which will lead to decisions that will impact customers?  Which are likely to drive profitability?  Start with a small number.  Prioritize and start using for decision-making before you move on. 

November 23, 2017

© Lisa Anderson

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