It is better to manage a cost crisis before it arrives. You may not have time to act and then the crisis becomes a disaster. I heard the story from the Chief Executive of a national low-cost airline about how much money they were able to drive out of their costs when faced with fierce competition. That is the ex-Chief Executive, they went bust. Why did they wait for the crisis before acting? Why not reduce costs, overhead and direct, now and put the cash to better use? We’re all used to reducing our direct costs, aren’t we? What do you budget? A 5%, 10% reduction?
Continue readingCategory Archives: Perform
Start-up Team Culture
You’ve got a great idea. You’ve got some start-up funding and you’re building a team. It’s a busy time and as easy to sow seeds of failure as it is to sow seeds of success. The culture of your business is an important factor. You and your people must live and breathe that culture. It needs to inform every decision, every action and every strategy. Enjoy the video!
Continue readingCompetition and Innovation
Any competitive enterprise is a race of some sort. You train to be better at the techniques you know. You seek out coaches who can help you achieve that new advantage. Occasionally, someone comes along with an innovation, like the Fosbury flop in 1968, that everyone rapidly copies. Just like athletes, your organization has to train and innovate, if it is going to be in the race, never mind win.
Continue readingPeople Management vs. Leadership
I’ve always thought of management and leadership as two sides of the same coin. Perhaps the roles are different, but both, without elements of the other, are useless. But what about People Management and Leadership? Surely management of things is administration? Managing people is a skill, only understood by those who have done it. Enjoy the video!
Continue readingWhat Do You Buy And Pay To Throw Away?
The cost of your purchases includes “how” you want to buy them. There is a 40x multiplier between buying potatoes from the field and after processing as crisps (chips in the US). You need to ensure “special requests” that were needed a few years ago haven’t become lodged in the purchasing specification. You may be paying a special price long after the need for the special product has been designed out of your process. Two examples follow showing the value of an overhead cost reduction review between buyer and seller.
Continue readingPlanning
Let’s look at issues around the art and science of planning. We all know the “fail to plan, plan to fail” maxim but do we all plan in enough detail? Recent research on people with heart conditions showed that seven out of eight failed to adopt a healthier eating and exercise regime despite clear communication of the likely consequences. Perhaps we have a belief that we can bluff our way through when it comes to it. Is abhorring managerial professionalism another symptom of the English disease?
Continue readingGrow your own Talent
Talent, skill shortages will return as the UK returns to work. I sense a huge pent up desire to go make a difference, make some money. Brexit is done, Covid is on the run. Time to make some money! Don’t run out of your scarcest resource – grow your own!
Continue readingDoes employee engagement lead to more reward?
Let’s boil employee engagement down to the basics. Engagement relates to the psychological contract between employer and employee. Fundamentally it moves away from the idea of “economic man (or woman)” which even economists now recognise fails to predict much of human behaviour. Instead of a “you chop a hundred logs I pay you one pound” contract, the form is that “both parties will make their best endeavours for the other”, to do their best in a business setting. Some organisations operate a hair trigger “fail and be fired” policy while others regard moving someone on to greener pastures as a catastrophic failure of organisational culture. The model we promote is “tribal”. If someone has worked successfully for years and now needs leniency for a time you give it. If the tribe’s shepherd has kept everyone supplied with mutton for years but now has a performance issue, bear with it. He or she may well bounce back more committed than ever, as they don’t want to let their tribe down.
Continue readingDistributed Intelligence
In 1999, work started on MEMS (Micro-Electromechanical Systems) at the University of California, Berkley. The aim was to produce a sensing, computing and communicating system in a one cubic millimetre size. These dust motes, dubbed Smart Dust, could be scattered or carried in the air forming a sensor web covering a wide area. The project closed in 2001 having reached a mote size of a few cubic millimetres. Certainly, there was a lot of R&D activity in the next size up – the insect size. So, the next time you take a swipe at a Bluebottle fly remember it may just be doing a TV audience survey! The distributed intelligence idea is interesting though. Henry Ford is attributed with the complaint that whenever he hired a pair of hands, he got a brain too. Of course, these days we recognise that you cannot run a successful organisation without using all the brains you employ.
Continue readingOutsourcing
Outsourcing has become a highly emotive subject, joined through the media with the effects of redundancies and the flight of jobs to lower cost countries. Off shoring is a subset of Outsourcing: the process is sub-contracted to an organisation in another country. Outsourcing is a modern fashion. Henry Ford thought it wise to own or control the raw material supplies for his automobile plant. He owned iron ore mines, glassworks, a merchant fleet, a railroad, blast furnaces and an electrical power plant to ensure he could control everything needed to produce that black Ford automobile. Not many companies have achieved that height of vertical integration. Today auto plants are assemblers of sub-contracted parts.
Continue reading