leadership Archives - LMA-Consulting Group, a supply chain consulting firm https://www.lma-consultinggroup.com/tag/leadership/ Sat, 09 Mar 2024 04:15:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.5 Skills Gap Challenge for Manufacturing Success https://www.lma-consultinggroup.com/skills-gap-challenge-for-manufacturing-success/ https://www.lma-consultinggroup.com/skills-gap-challenge-for-manufacturing-success/#respond Fri, 08 Mar 2024 16:35:53 +0000 https://www.lma-consultinggroup.com/?p=23530 According to a study by Deloitte and The Manufacturing Institute, 2 million jobs could go unfilled in the sector by 2030. The cost in 2030 alone could potentially total $1 Trillion.

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According to a study by Deloitte and The Manufacturing Institute, 2 million jobs could go unfilled in the sector by 2030. The cost in 2030 alone could potentially total $1 Trillion. Worse yet, the manufacturers surveyed said it is 36% harder to find the right talent than it was in 2018, and 77% of manufacturers expect to have ongoing difficulties attracting and retaining manufacturing employees.

As technology, automation, and artificial intelligence (AI) continues to gain steam, lower skilled jobs are automated, but higher-skilled jobs become critical. The gap is significant. Additionally, as reshoring gains momentum and manufacturing expansion becomes a priority with the rise of geopolitical risk and the rollout of government funded programs such as the CHIPS act, manufacturing will increase, and the skills gap will widen. Finally, by 2030, the youngest of the largest generation in history will be older than 65, further decreasing the workforce.   

Simply hiring a recruiting firm will no longer be sufficient. There simply are not enough manufacturing resources to fulfill the needs. Proactive executives will put an increased emphasis on training and development. For example, an aerospace manufacturer needed far more machine operators than they could find, and so the company set up a training facility and hired trainers to put new hires through a comprehensive training and development program. They went from constantly struggling to creating a pipeline of qualified candidates. Another client sent employees to a technical training center in the region to gain manufacturing skills.

Relying on your planners, buyers, and analysts’ college education and prior work history is no longer sufficient. At least 80% of clients are struggling to hire resources with the appropriate education and training. For example, two power systems and electrical equipment manufacturers serving different industries went live with an upgraded ERP system. Although they brought on significant support, both struggled due to lack of production planning and inventory concept education and training for their resources. Proactive clients are arranging ERP and MRP (material requirements planning) education for their employees. For example, a significant beverage manufacturer has been coordinating with a local supply chain education partner to provide practical education.

Turn traditional thinking on its head. Supplement your employees with consultants to upgrade processes and improve efficiencies (refer to our guide for hiring consultants), hire temporary employees to fill gaps, and partner with specialist resources such as engineering firms to make quicker progress. Appreciate different pools of talent such as veterans and retired workers and reexamine your qualifications. For example, a building products manufacturer eliminated its requirement for a college degree and replaced it with practical experience and/or approved skills training. Not only did they find additional candidates, but the candidates were a better fit for the role.

Leadership and culture will be vital to closing the skills gap. People do not follow companies; people follow leaders. The best employees expect leaders to have high expectations, to address poor performers, to face reality with tough topics, and to appreciate and recognize progress. For example, an industrial equipment manufacturer was able to find and retain employees in a small town with limited resources and a key competitor because employees knew that the leader would expect high levels of performance, push for excellence, and cared.

Attracting and retaining talent will be key to success in the manufacturing industry in the next decade (refer to our article for strategies). Proactive executives are developing creative alternatives to traditional hiring, retention, training, and development strategies. The best remain committed to leadership and culture to retain top talent and attract scarce talent.  

Originally published in Brushware, March – April 2024

 

If you are interested in reading more on this topic:
Where the Talent Has Gone & Strategies for Success

 

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Where the Talent Has Gone & Strategies for Success https://www.lma-consultinggroup.com/where-the-talent-has-gone-strategies-for-success/ Fri, 12 Jan 2024 16:08:29 +0000 https://www.lma-consultinggroup.com/?page_id=23166 Talent is such a critical topic that we will keep our eyes and ears out for unique strategies and fresh ideas for success.

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Where Has the Talent Gone?

Where Has the Talent Gone?

The labor participation rate is still under the pre-pandemic rate. According to the Bureau of Labor Statistics, the rate is still running almost 1% below the pre-pandemic rate. This is no surprise to clients as they simply do not have the talent needed for key positions in Manufacturing, Planning, Purchasing, Customer Service, and more. Read more about the Skills Gap in our article.

We believe there are several key reasons for this continuing trend:

  • Baby boomer retirements: 44% of the Baby Boomer generation are at retirement age. By 2030, the youngest of the largest generation in history will be older than 65.
  • Pandemic career changes: The pandemic made people realize that they wanted to find what would fulfill them, and several have changed careers. Also, Families changed their view on how to raise children. In some situations, one parent changed and/or reduced focus on his/ her career (unless flexible) while his partner stayed focused on her career.
  • Current Leadership: The generation following Baby Boomers (Generation X) is not as large. Across clients, whoever is remaining in a leadership role (typically a Baby Boomer, Generation X or Millennial employee) is completely overwhelmed and running around like a chicken with his head cut off.
  • Newer employees: Generally, they are gaining experience, but do not have the knowledge to “figure out complex issues”.
  • The advancement of technology: Technology continues to advance as companies realize they must embrace ERP systems, automation and robotics, artificial intelligence, predictive analytics and more. This has reduced the need for low skilled resources, but it has increased the need for high-skilled resources.

Lack of training & mentoring: For many years, companies could hire talent from the competition. Although this is still possible, there are fewer and fewer resources with the practical experience, systems and data knowledge, and process expertise to fill the roles.

Client Examples

We wish it was an exception, but clients are scrambling (and frequently in chaos). This situation is no longer the exception. It has become the norm. As key people leave the organization or critical changes occur, the resources simply do not exist to successfully navigate these situations as smoothly as they did previously. Thus, clients are scrambling on a day-to-day basis.

For example, multiple clients pop to mind with a key planning, supply chain or operations resource who is completely overloaded. This team member is “juggling multiple balls in the air while doing jumping jacks”. In essence, they are running around filling gaps, resolving issues, and bringing up topics proactively. However, internally, the resource is seen as the issue because she is always racing to keep up with Sales changes, rescheduling due to production ramp up challenges, uncovering system issues, and bringing up potential problems. There was a ‘brain drain’ of expertise and this resource continues to absorb additional tasks to try to keep the balls in the air.

The process is dependent on the system, and the system is dependent on the resources (design, setup, training), the data and transaction disciplines. In our examples, there are completely different situations (challenges, leadership styles, geographies, ERP system maturity, etc.). Yet the result is the same. If the process is dependent on a person, the process will not succeed. On the other hand, the process, system and resources need to be upgraded (including training and education) in conjunction with one another. Our consulting role is to partner with the client to assess the situation, design an upgraded path forward, and partner with the client to roll out and achieve sustainable results.

What it used to take to deliver bottom line results for clients absorbs around 20-30% more effort on average than it did pre-pandemic due to this skills gap (even with our greater experience and internal process upgrades). In some cases, it requires 50-100%! If this situation was an outlier, we wouldn’t be concerned, but it is no longer an outlier. Thus, we are pivoting and will be aggressively highlighting the key issues, warning signs and plans of attack earlier in the process. It will be less comfortable for clients to absorb this news earlier (with less time to absorb the facts), but we are experienced in seeing the signs and knowing the best route to “right the ship”, and so we will force these uncomfortable corrections early on. Fasten your seat belts!

Strategies for Success

There are a few key recommendations to start to “right the ship”.

  • Leadership & Culture: There are fewer resources to bring on board to jump in, figure out a situation and “right the ship”. People follow people; not companies. Thus, you must have exceptional leaders. The only way you will have exceptional leaders is to have an excellent company culture. Of course, company culture goes back to leadership. There are no magical solutions. It take a LOT of hard work, excellent people, the willingness to take risks and invest when no one else is investing, and establish a performance management process that weeds out the poor performers and recognizes the star performers. Read more about this topic is our article How to Attract People to Your Company.
  • Training, education & mentoring: These are NOT the same topic. You can no longer rely on hiring key resources away from the competition. Instead, you must develop them. Provide training (step-by-step processes), education (the why behind what you are doing and how it fits into the big picture), and mentoring (follow me and watch my example as I’ve been there and done that).
  • Supplement resources: Clients are supplementing with consultants, contractors, interim temporary resources etc. Although we are jumping in as consultants to assist clients with critical priorities, we are jointly prioritizing bringing them up-to-speed so that they can sustain the process upgrades on their own.
  • Appreciate different pools of talent: Retired workers might be exactly what you need to help you over the hump and/or bring folks up-to-speed. There are other groups such as veterans to pursue as well.
  • Revisit your job requirements: What do your most successful employees do differently? It might be that they need fundamental skills training but not a college degree. It might be that they need certain characteristics for certain roles but not specific experience. It might be practical ERP knowledge instead of the specific ERP system experience.
  • Meaning, Flexibility & Opportunities for Advancement/ Learning: The name of the game to attract, engage and sustain employees is to ensure meaning, flexibility and opportunities for advancement and/or learning.

Talent is such a critical topic that we will keep our eyes and ears out for unique strategies and fresh ideas for success. Please keep us in the loop with your ideas and success stories as well. It will be a key differentiator in the next decade.

If you are interested in reading more on this topic:
Where is Your Supply Chain Talent?

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Integrated Hybrid Work Creates Positive Results for Employers https://www.lma-consultinggroup.com/integrated-hybrid-work-creates-positive-results-for-employers/ https://www.lma-consultinggroup.com/integrated-hybrid-work-creates-positive-results-for-employers/#respond Mon, 02 Oct 2023 00:05:23 +0000 https://www.lma-consultinggroup.com/?p=21896 Hybrid is here to stay, as it's common sense," points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc and manufacturing expert known as the Strongest Link in Your Supply Chain®.

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CLAREMONT, Calif., October 1, 2023/ExpertClick/– Evolving business and employee needs around hybrid work are driving the rapid adoption of flexible working arrangements, according to The Society for the Advancement of Consulting® (SAC). Employers who shift quickly benefit from better talent retention, happier employees, and increased productivity.

Executives and Hybrid Workers: Both Sides Need Balance

“Hybrid is here to stay, as it’s common sense,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc and manufacturing expert known as the Strongest Link in Your Supply Chain®. “Manufacturers still struggle to find talent across the board. Whether a planner, buyer, or maintenance technician, qualified candidates are sparse.

“People want to contribute to success, yet have flexibility in their daily lives,” Anderson adds. “So hybrid is a commonsense solution. It’s likely to come in many forms, depending on the situation. In manufacturing, hybrid is feasible with the use of advanced technologies. But other solutions will be required. Four-day workweeks are more attractive, so that employees can achieve work-life balance. Leaders will have to step up to figure out how to position their companies for the future instead of dictating the past.”

Talent Scarcity is Pushing Employers Toward Flexibility

“Flexible working arrangements are a fact of life these days,” says Kathleen McEntee, president of Kathleen McEntee and Associates Ltd, who provides a full range of marketing services to privately held organizations. Their messages are straightforward, targeted and cut through the clutter to distinguish their clients from the competition.

“For the most part, they can be practical for both the worker and the employer. Put aside the customer-facing jobs—like in a store and some office jobs—and many employers are realizing the benefits of remote work. Life is complex and busy. A flexible employer retains and attracts the best of the best —especially when good talent is at a premium,” McEntee notes.

“Hybrid arrangements can provide a good balance with benefits to both sides,” she explains. “Yet, managing remote workers requires a different mindset and different skills. Set expectations and guidelines. Maintain accountability. And be flexible. The idea behind hybrid is flexibility and balance. The peace and quiet of working remotely can result in higher productivity, enabling employers to meet tight timelines while having happier employees.”

A Win-Win Situation

The move to hybrid work environments is an opportunity for organizations to explore more productive work models while building employee loyalty, which in turn builds greater customer satisfaction and loyalty, says Linda Popky, president of Redwood Shores, CA-based strategic firm marketing firmLeverage2Market Associates, and author of the bookMarketing Above the Noise: Achieve Strategic Advantage with Marketing That Matters.

“We know that it’s impossible to have happy customers when you have unhappy and frustrated employees. How employees are treated is reflected in their interactions with customers. Those employees who feel an organization values them and is flexible enough to consider their needs will pass that goodwill to customers,” she says.

“There’s no one solution to every work situation. However, the pandemic exposed us to productive ways of working that weren’t even considered possible before. The world is not going back to 2019. Organizations have the ability to build a new working environment that combines the best elements of technology and human interaction. It’s a win-win for everyone,” Popky adds.

The Math Behind Hybrid: 3 Needs over 1 Label

“We need to stop thinking ‘hybrid,’ which is an arbitrary label, and simply thinking about ‘people,’ ” notes SAC Founder Alan Weiss, PhD. “Where they work will be determined by company need, personal need, and customer interactions. That shouldn’t be complicated math. If you can’t manage that, you shouldn’t be running a business.”

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Why People Matter https://www.lma-consultinggroup.com/why-people-matter/ https://www.lma-consultinggroup.com/why-people-matter/#respond Thu, 15 Dec 2022 15:19:54 +0000 https://www.lma-consultinggroup.com/?p=18222 Most clients do not have as much talent as they need (at least in key roles or sites). Similar to inventory, many clients might have talent but do not have the type of talent in the right place (or available) at the right time. Classic challenges!

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Meeting of Three Successful Buisnesspeople

I participate in a group of CEOs, a group of the top consultants throughout the world, a group of supply chain professionals, a regional economic partnership, industry groups, and with clients in the Americas, EMEA and APAC, and the only thing in common is the critical importance of people.

Most clients do not have as much talent as they need (at least in key roles or sites). Similar to inventory, many clients might have talent but do not have the type of talent in the right place (or available) at the right time. Classic challenges!

Others are concerned about employee engagement, talent retention, and development. Many are concerned about how to provide flexibility yet ensure results and how that relates to virtual vs in-person. Many are starting to think about how they can use consultants to fill a gap (supplementing their team) while developing a better path forward as it kills 3 birds with 1 stone (fills gap, builds the future, short-term so they don’t have to hire long-term support with pending recessions). Others are experiencing issues because their suppliers or customers have talent shortages. Thus, orders are delayed, meetings postponed, etc. There are countless issues, but the bottom line is talent is top of mind.

Pertinent Examples

In a building products manufacturer, although they tried many different approaches to finding manufacturing talent, they simply couldn’t find enough people to run the full schedule during peak season. This is a compelling example as the leaders were solid and it wasn’t in the middle of nowhere (as most of our clients’ facilities are located in Timbuktu), yet it was still impossible to fill the entire schedule. Thus, they prioritized customers and extended lead times to make it through peak season and decided to build ahead for the next peak season if conditions didn’t change.

In a life sciences manufacturer, growth was limited by lack of talent. In this situation, there were concerns about spending money until the specific product mix was known (thereby dictating the specific skills required). Unfortunately, it was a catch 22. By the time the product mix was known, there wasn’t enough time. In working together, we developed a demand plan and SIOP (Sales, Inventory & Operations Plan) process that enabled us to gain executive alignment to transfer, cross-train, and hire the appropriate people to address near-term concerns while ramping up a new facility so that the aggressive growth targets were fulfilled.

In a food manufacturer, they didn’t have the supply chain talent to work with customers and Sales to develop a demand plan, translate the volume into a master production schedule, get enough materials on order to supply the production schedule with extended lead times, and address changing conditions on a daily basis with the production schedule. Thus, they asked us to jump into the planning process, working in conjunction with their overloaded resources to navigate current conditions and stabilize while upgrading the process and use of systems to create a sustainable process going forward. This solution bridged the gap.

And, in an industrial equipment manufacturer, their growth was limited by engineering talent. They worked with the schools in the area to hire new grads and provide internships. They even jumped on manufacturing day with high school students to introduce them to the profession. They also looked at process and system upgrades to increase efficiencies, supplemented talent from other facilities to fill gaps, and put extensive efforts into HR and recruiting efforts. Although still challenged, they were able to meet the increased volume.

Fast Forward to the Future

Clients are starting to worry about the likely recession (while still dealing with inflation) and what that will mean to their growth plans. Of course, it makes sense to reevaluate customer conditions and reorganize, reallocate, and reshape to meet the new forecasts. On the other hand, our most successful clients are NOT jumping to layoffs. Most likely, there are temporary employees that will provide some ability to ramp up or down rapidly. Clearly, overtime can be reduced. But, be cautious about cutting back and limiting growth potential.

We see a reshaping of the future of supply chains in the horizon. Companies are reshoring, expanding capacity, finding new partners, rethinking market and growth strategies, and much more. I think there will be more opportunity for the forward-thinking, nimble companies than at any other time in history other than during the Great Depression. As family-owned businesses retire, get absorbed into larger companies, and/or decide to close up shop or not serve certain markets due to changing conditions, supply chains will change. As companies reshore, nearshore, friendly-shore and build duplicate capacity to ensure customer success, supply chains will change. As employees retire and decades of experience walk out the door, supply chains will change. As technology gains, supply chains will change. RETAIN your key talent, do not retain your problem employees dragging your best talent down (it is surprising how many companies keep these known challenges), keep your eye out for talent (as you think about needs 2 years out) as weaker companies suffer, and find opportunities to develop and utilize your talent and set your company up for success for decades to come.

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. Several of these types of topics will be included in our forthcoming book, SIOP (Sales Inventory Operations Planning): Creating Predictable Revenue and EBITDA Growth.

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SAC: Start at the Top to Retain Millennial and Gen Z Talent https://www.lma-consultinggroup.com/sac-start-at-the-top-to-retain-millennial-and-gen-z-talent/ https://www.lma-consultinggroup.com/sac-start-at-the-top-to-retain-millennial-and-gen-z-talent/#respond Thu, 01 Dec 2022 22:01:56 +0000 https://www.lma-consultinggroup.com/?p=18424 Lisa Anderson was quoted in the Society for the Advancement of Society's press release on retaining top talent and what that means for the millennial and Gen-Z generations. As Baby Boomers continue to retire, this has become a continuing hot topic.

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Lisa Anderson was quoted in the Society for the Advancement of Society’s press release on retaining top talent and what that means for the millennial and Gen-Z generations. As Baby Boomers continue to retire, this has become a continuing hot topic.

 

CLAREMONT, CA—Leaders play a critical role in attracting and retaining skilled talent, which is especially true during periods of talent shortages, according to The Society for the Advancement of Consulting® (SAC). Many managers waste time complaining about Millennial and Gen Z behaviors, instead of looking at how their own actions impact their teams, and focusing on developing a healthy company culture to keep the best young talent.

The Talent Pivot that Businesses Need to Thrive

“People leave people, not companies,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc. and manufacturing expert known as the Strongest Link in Your Supply Chain™. “Instead of recruiting, figure out how to attract your stars and the rest will follow.

“Stars expect leaders to deal with poor performers, provide interesting work and opportunities, care, and have high expectations. Companies with superior leaders retain their stars and are better at attracting key employees. In addition, younger generations expect significantly more flexibility and short text communications. Businesses will have to pivot to thrive,” she adds.

Younger Talent Responds Positively to Character and Competence

“Millennials and Gen Z are the same as any other generation. Skilled workers in every generation want the same thing—honest and forward-looking senior managers,” points out Steven Hunt, founder of Steven Hunt & Associates, and an expert advisor to top management on how to close the gap between strategy formulation and implementation in global companies.

“The big change is that younger talent doesn’t stick around if senior managers fail to deliver,” he adds. “Loyalty wavers when the company culture is toxic.

“To win over and keep talent,” Hunt says, “top managers need character more than charisma. That’s leadership with backbone, principles, and substance. Forget the charm offensives. Drop the addiction to flash-in-the-pan ideas. Companies need to prioritize having competent managers at the top, not confidence-tricksters or, worse, narcissists and damaged egos. Get the culture right and talent retention follows.” 

Listen More and Hold off on Making False Judgements

“In order to attract the best Millennial and Gen Z talent, promote your employer brand with a strong social media presence and careers page. Make sure you clearly communicate the values, purpose, and culture of your company.” says Dr. Maynard Brusman, a San Francisco Bay Area consulting psychologist and executive coach.

“Listen closely to what they say, and refrain from making judgments about their ideas, values, and behaviors,” explains Dr. Brusman, “They often do things differently, and may have different values and perspectives on their future.

“To win the hearts of younger workers, companies and employers must highlight their efforts to be good global citizens,” Dr. Brusman. “Actions speak louder than as sustainability, climate change, and diversity.”

The More Things Change, The More They Stay the Same

Generational suspicion and distrust has been with us since at least the days of Socrates, 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.

“Today’s more seasoned managers need to remember they, too, were once in the position of not fitting in with their older leaders,” Popky says. “The crucial difference today is the technology that not only offers many more ways to communicate, but provides a platform for anyone with a mobile device to tell the world exactly what they think at that moment.

“The key to success is to not focus on what’s different, but to identify where the commonalities are,” she adds. “People of all generations want to feel part of the team and appreciated for their contribution. The question is how to do that effectively with team members of diverse backgrounds and talents.

The Right Question for Today’s Talent

“You have to ask the right question first: Does the talent have to be replaced?” said SAC Founder Alan Weiss, PhD. “Don’t mindlessly replace people who were doing yesterday’s work for tomorrow’s needs.”

 

Originally posted on SAC website: December 1, 2022

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NESCON: Managing Capacity in a Complex & Volatile Long-Lead Environment https://www.lma-consultinggroup.com/nescon-managing-capacity-in-a-complex-volatile-long-lead-environment/ https://www.lma-consultinggroup.com/nescon-managing-capacity-in-a-complex-volatile-long-lead-environment/#respond Sun, 23 Oct 2022 21:42:57 +0000 https://www.lma-consultinggroup.com/?p=18405 Lisa Anderson facilitated a panel discussion at the New England Supply Chain Conference and Exposition on managing capacity in complex and volatile environments with Shari Ruelas General Manager of Commercial Products Chevron, Alejandro Bustamante Senior Advisor to CEO & Board of Directors of Poly/HP, and Dan Raatjes SVP & COO King's Hawaiian Holding Co.

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Lisa Anderson facilitated a panel discussion at the New England Supply Chain Conference and Exposition on managing capacity in complex and volatile environments with Shari Ruelas General Manager of Commercial Products Chevron, Alejandro Bustamante Senior Advisor to CEO & Board of Directors of Poly/HP, and Dan Raatjes SVP & COO King’s Hawaiian Holding Co.

To learn more about NESCON click here.

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Supply Chain Challenges, Remedies & Leadership https://www.lma-consultinggroup.com/supply-chain-challenges-remedies-leadership/ https://www.lma-consultinggroup.com/supply-chain-challenges-remedies-leadership/#respond Sun, 05 Jun 2022 19:13:14 +0000 https://www.lma-consultinggroup.com/?p=16955 In this discussion we explore some of the challenges and remedies that companies across the sectors are encountering as they face into the post-COVID future and the challenge of a never normal world with ongoing supply chain disruptions, geopolitical tensions, and climate change.

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In this episode of Interlinks, I am joined by my colleagues from the Supply Chain Special Interest Group at the Society for the Advancement of Consulting:

  • Lisa Anderson, President of LMA Consulting Group Inc. in the Los Angeles metro area in California
  • Dr. Karen Y. Wilson-Starks, President and CEO of Transleadership Inc, in Colorado Springs

In this discussion we explore some of the challenges and remedies that companies across the sectors are encountering as they face into the post-COVID future and the challenge of a never normal world with ongoing supply chain disruptions, geopolitical tensions, and climate change.

Originally published on Interlinks, June 5, 2022 .

Click here to download.

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Lost Revenue Due to Lack of Resources: How to Attract People to Your Company https://www.lma-consultinggroup.com/lost-revenue-due-to-lack-of-resources/ https://www.lma-consultinggroup.com/lost-revenue-due-to-lack-of-resources/#respond Fri, 22 Apr 2022 18:55:47 +0000 https://www.lma-consultinggroup.com/?p=16611 According to Interos, almost 90% of companies experienced a negative impact to revenue due to supply chain disruption. That is a BIG number! From our point-of-view, every client is complaining about the lack of critical resources required to support the business and has experienced negative impacts to revenue (even if only in terms of a delay to revenue recognition).

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According to Interos, almost 90% of companies experienced a negative impact to revenue due to supply chain disruption. That is a BIG number! From our point-of-view, every client is complaining about the lack of critical resources required to support the business and has experienced negative impacts to revenue (even if only in terms of a delay to revenue recognition).

For example, we have been working with a large manufacturer in the building product industry, and within a year, they have asked us to help them through four unexpected departures of key supply chain and planning resources. Without these key resources, they wouldn’t be able to plan to have the “right” products in the “right” place at the “right” time. In a life science manufacturing client, the reason they asked us to help them design and roll out a S&OP (also known as SIOP) process even though they had a key leader that had successfully implemented SIOP previously is because they were fully occupied in ramping up production to support business growth. They could NOT wait because they had to know which resources to hire, what equipment to procure, and what long-lead time materials to purchase to meet customer demand.

Which clients are attracting people (employees, supply chain partners, trusted advisors) and/or keeping people? What are they doing differently?

Lost Revenue Due to Lack of Resources

What Attracts People to Your Company?

The good news is that what attracts people to your company is clear. The bad news is that it isn’t a “no brainer” to make it happen. The bottom line is that people follow people; not companies.

Start by thinking about whether your people are engaged. In observing clients on a daily basis, it is clear what matters to employees:

  • Listen: Does leadership listen to them? NOT just when they are saying something management wants to hear but also when they bring up potential issues….
  • Request input: Does anyone ask for opinions, concerns, and feedback? Some employees will speak up regardless, but others will only respond only if asked AND if they think the requestor really wants to know and cares about the answer.
  • Communicate the vision: Employees want to understand where they are going and to be excited about where they are going.
  • Show how they fit in: Knowing where the company is going isn’t enough. It is important for each person to see how he/she will add value to that vision.
  • Show you care: Who doesn’t prefer to spend time to help people who care?
  • Have fun: Who wouldn’t prefer to work with someone who adds humor into the conversation or can make boring topics more interesting?
  • Treat others as you’d like to be treated: Sounds apparent but doesn’t always occur even with solid leaders.
  • Appreciate people: A simple thank you goes a long way. At times, it is also appropriate to recognize people with a bit more pomp and circumstance.
  • Don’t overreact: People want to follow people who are confident and calmly resolve issues and overcome obstacles. If you overreact, people remember and will not bring up ideas or issues the next time around.
  • Share credit; take the blame: It is surprising how many leaders get this backwards. People pick up on someone interested in his/her career as a #1 priority. They will not be fully engaged.

Even as a consultant, these points matter. Of course, we deliberately focus on results and “stay above the fray”; thus, we will do what’s required no matter the leadership styles. We will typically work with several leaders in a single client especially with cross-functional and cross-organizational projects such as S&OP (also known as SIOP), and so we work with people on both ends of the spectrum as well as in the middle. However, it is FAR more pleasant and engaging to work with clients who follow these guidelines than the ones who don’t. As the Great Resignation and Reshuffle has occurred, it certainly highlighted the difference.

Please keep us in the loop of your situation and how we can help your organization thrive during these times of volatility and disruption. There will be more winners created than at any other time than since emerging from the Great Depression. To gain additional ideas and insights on how to best navigate these volatile times and thrive, read our new eBook Thriving in 2022. Learning from Supply Chain Chaos. Download your complimentary copy.

Thriving in 2022

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SAC: The Hybrid World Brings New Challenges for Leaders https://www.lma-consultinggroup.com/sac-the-hybrid-world-brings-new-challenges-for-leaders/ https://www.lma-consultinggroup.com/sac-the-hybrid-world-brings-new-challenges-for-leaders/#respond Tue, 01 Feb 2022 15:11:02 +0000 https://www.lma-consultinggroup.com/?p=16738 "Our most successful clients realize that offering hybrid working environments attracts, and more importantly, retains their top talent,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc. and manufacturing expert known for creating supply chain resiliency. "Leaders will need to find ways to integrate remote employees daily and design workshops at key intervals to bring the full team together.

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CLAREMONT, CA—Today’s leaders realize they must make adjustments to remain successful in the new business environment, according to The Society for the Advancement of Consulting® (SAC). Opportunities are arising for those leaders who are flexible enough to adapt the changes necessary for a successful hybrid working environments.

These Daily Practices Have to Change

“Our most successful clients realize that offering hybrid working environments attracts, and more importantly, retains their top talent,” points out Lisa Anderson, president of Claremont, CA-based LMA Consulting Group, Inc and manufacturing expert known for creating supply chain resiliency. “Leaders will need to find ways to integrate remote employees daily and design workshops at key intervals to bring the full team together.

“There is a vast shortage of leadership talent. To successfully serve customers, grow the business, and increase profitability and working capital, successful companies will focus extra attention on developing and retaining emerging leaders. Strong leaders will have the agility, flexibility, and confidence to pivot as required and thrive post pandemic,” she adds.

Hybrid Success Rests on One Key Skill

“Remote work is nothing new,” says Steven Hunt, founder of Steven Hunt & Associates and an expert on managing change in global companies. “Take the global finance industry. Trading online from anywhere in the world has been possible for years. But traders still flocked into big hubs like New York and London. The reason is human network effects. People do business with people they know, and trust.

“The City of London knew this two decades ago,” Hunt explains. “Their research pointed to five factors for London’s magnetic attraction: career and business growth prospects, fast knowledge transfer, bold innovation hubs, status, and salary. Trust underpins all five factors.”

“Whether you work face-to-face, remote, or hybrid, the old command and control leadership styles will continue to wane. Trust-based styles are on the up,” adds Hunt. “Trustful dialogue is the skill all leaders must master in a hybrid environment.”

Great Management Counts

“Every situation is different. Every team is different,” according to Kathleen McEntee, President of Kathleen McEntee and Associates, Ltd (KMA), a full-service marketing firm known for developing strategies and tactics that distinguish its clients from competitors. “Managers must master new skills to manage hybrid work environments.”

“Keeping connected to your team collectively and individually is key,” notes McEntee. “The same old weekly staff meeting will not cut it these days. People want to know that their contributions count, understand how they fit into the organization, and desire to be connected. The good news is that this provides opportunities for managers, as well as challenges. People don’t leave a company: They leave a manager. In these days of the Great Resignation, being a great manager is more important than ever.”

Embrace the Potential

Instead of bemoaning the fact that the world is likely not going back to the way it was pre-pandemic, savvy organizations embrace the potential for growth in this new environment, 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.

“Many organizations insisted their work could not possibly be done remotely—until they found they had no choice but to find a way to adapt,” she says. “Yes, there are challenges, but there are also incredible new opportunities that now present themselves. For example, workgroups can now effectively include members from multiple geographies or time zones in almost all work-related activities—from strategy to implementation.

“The key is to have open communication with your teams as to what’s planned and ask for their input and ideas on what they’d like to see improved.”

The New Challenges are the Old Challenges

“Ironically, I don’t see new challenges,” said SAC Founder Alan Weiss, PhD. “The problem is that too many leaders aren’t conquering old challenges: a workplace that provides support and recognition; serving as an exemplar of values; fostering innovation; and maximizing the customer experience. Focusing on ‘new challenges’ just ignores the fact that too many people have taken their eye off the ball because they’ve allowed themselves to be distracted and make excuses.”

 

Originally posted on ExpertClick:  February 1, 2022

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Talent, Talent, Talent https://www.lma-consultinggroup.com/ibt-9-26-2021/ https://www.lma-consultinggroup.com/ibt-9-26-2021/#respond Mon, 04 Oct 2021 15:24:54 +0000 https://www.lma-consultinggroup.com/?p=14931 Similar to location, location, and location in the real estate business, the current business environment talks about talent, talent and talent. Here are comments from just the last few weeks from clients ranging from life science research to food and mining machinery and equipment to building and construction products to water testing laboratories: Every month [...]

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ibt-header
Similar to location, location, and location in the real estate business, the current business environment talks about talent, talent and talent. Here are comments from just the last few weeks from clients ranging from life science research to food and mining machinery and equipment to building and construction products to water testing laboratories:

  • Every month we push out the ramp up of production because we are constantly robbing Peter to pay Paul with our employees.
  • We need to hire several key supply chain positions…..yesterday!
  • We will have to go through Herculean efforts to scale up and meet our sales forecast with limited resources. Not matter what we pay, we cannot find enough people to fill our needs.
  • We lost another key resource to a better opportunity or retirement.

The executives who find a way to scale and navigate these resource-constrained times successfully will leapfrog the competition and thrive following this post pandemic rebound. Will that be you?

One Tip to Implement This Week:

Unfortunately, there are no magic bullets to solving this talent gap. On the other hand, several best practices are coming in quite handy for the clients using them. Although frustrated, they are clearly head and shoulders above the rest of our clients and colleagues.

  • Remember, people work for LEADERS, not companies: No amount of money will keep top talent in this market if not accompanied with top leaders. It is true with clients as well. Do you employees, trusted advisors, customers and suppliers want to work with you?
  • Ensuring accountability and having high expectations attract talent: The best way to lose top talent is to let team members get away with subpar performance. Who is picking up the slack? Your best talent! And, of course, they know it.
  • Are you explaining where the company is heading and why? People want to be associated with a successful team and understand the future. Explain where you are going and why.
  • Are you explaining how each person adds value? Each person adds value to the mission. Are you explaining how each person contributes and adds value for the customer? Wouldn’t you be more interested in working if contributing to a worthy and exciting objective?
  • Are you providing resources and tools to support your people? Are your employees suffering with outdated tools and limited resources? If so, frustrations will start to run high. Invest in what makes sense to support your teams’ ability to succeed.
  • Mentor & train: These two topics are VERY different. Mentoring is providing an example and a sounding board of someone who has “been there and done that”. Mentors also provide feedback to modify behaviors. Find mentors or supplement with outside resources. Clients have been asking for us to fill this role to supplement their organization lately. Providing training is much different. This is the accumulation of skills and expertise required to support your people. Many successful organizations are signing employees up for our Association of Supply Chain Management (ASCM/ APICS) training courses on manufacturing, supply chain and logistics management principles.
  • Utilize trusted advisors: Don’t try to save money looking on Indeed. Instead, figure out what you need, find the best trusted advisor to support your need and follow advice on the best strategies to attract and retain talent. You’d be surprised how many clients request advice and do not follow it!

The bottom line is to use common sense when it comes to attracting, retaining and training your talent. Please keep us in the loop of your situation and how we can help your organization successfully navigate the current volatility and emerge above and beyond. Several of these types of topics are included in our new eBook Emerging Above and Beyond: 21 Insights for 2021 from Manufacturing, Supply Chain & Technology Executives. Download your complimentary copy.

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