The
Finish Strong� monthly e-newsletter helps
business leaders examine issues important to taking
operational performance to world-class levels.
Do your Operations deliver your company's espoused
brand promise to every client on every order?
Finish Strong� is about developing an appropriate
Operations strategy, and effective execution,
dotting operational i's and crossing operational
t's as you go.
Your company cannot afford to be sloppy if you
want it to be great.
LEARNING FROM BOEING
The Dreamliner has become a nightmare.
In a significant strategic shift, Boeing decided
to design and build this new aircraft through
outsourcing much of the work traditionally done
inside to a network of companies that had in many
cases never worked together before.
Boeing is finding that weakness
in planning, coordination, communication, and
problem solving skills throughout the supply chain
has compromised anticipated gains.
What looked good on paper is ugly
in real life. No matter how fast management tries
to push the network, it can only change as fast
as it can. Skills and experience don't arise through
spontaneous combustion, regardless of project
timelines.
When engineers sit side by side
for years without knowing what the other is working
on...
when supply chain managers struggle to work effectively
with direct suppliers and don't give proper focus
to the supply chain's other direction...
when operations management struggles to get employees
within a single business thinking together...
the alleged gains of outsourcing to achieve lower
cost can easily fall into the abyss created by
the absence of requisites. Traditional Make vs
Buy analysis rarely asks the question: "are
we and our supply chain capable of effectively
managing the planning, communication, coordination,
and problem solving processes that will be required?"
People in glass houses shouldn't
throw rocks. Companies that can't internally plan,
coordinate, communicate and solve problems effectively
shouldn't rely on a business model designed to
leverage those as strengths.
If you decide that something is
not your core competency and should be outsourced,
be sure to outsource it to someone for whom it
is a core competency. And make sure you're good
at the things that effective outsourcing requires.
CUT
THE AD BUDGET!
We can't escape the doom and gloom
conversation about the American economy, and
to many it is much more than conversation: it
is real.
I am intrigued by how some companies
react to tough times. It seems for many the
response to declining sales is to cut back on
advertising and marketing. If they think that
stuff works at all, why reduce investment in
attracting sales when they need sales? Use it
wisely, of course, but that guideline shouldn't
only be pulled out in a downturn.
Similarly, it doesn't make sense
to cut back on improvement efforts when struggling
to be competitive. You may not be able to control
energy or material costs, but you can work to
use them more effectively. Rising benefits costs
may increase the cost of employees, but shouldn't
we always be working to utilize that resource
wisely? Again, these are not guidelines that
should sit on the shelf until faced with crisis.
Your company still has to get
better every day. Your competitors around the
world aren't taking time off, so you can't afford
to either.
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