When you find a snake in your yard, kill it


When you find a snake in your yard, kill it.

He’s just a numbers guy.


In the business of managing business there is one skill that should be prized as much as an M.B.A. or any other certification. That is the ability to appropriately plot data. Here is a link to a blog discussing the underutilized orbit chart.

Orbit charts, and why you should use them.

But to appropriately measure and plot the data one needs to be a bit of a numbers guy. One of the slurs received as a management consultant is “he’s a numbers guy.” It’s true. I am a numbers guy. What is missed in the epithet many times is the speaker’s concession, “I’m afraid of what the numbers reveal.”

Numbers are data points and reflect aggregated decisions/non-decisions. When plotted appropriately, the data points may tell a story. That story may be directly correlated to the quality of the decisions/non-decisions by the decision makers. For example in the Orbit Chart blog is a chart showing the cyclical tradeoff between productivity and quality.

Recently I had the opportunity to work with a manufacturer who overcame a bottleneck a few years ago by investing in the highest output machine of its kind. To no surprise, the bottleneck shifted as sales ballooned. But because everyone was so enamored with the new toy, no one was watching for the shift. Result, on time delivery dropped below 50%, late delivery penalties of 5% per day increased, shipping costs soared to expedite late deliveries, and customers grew unhappy with the experience. The operating profit before the hits was 4%. The company was near extinction, which meant all jobs there were at risk.

So here I come on the scene with a project charter to source and implement corrective actions on the fountainhead of undesirable effects (UDE’s). Using intuition, interviews, and frameworks designed to uncover the UDE’s, my sights became set on a workgroup. This began the quest for data to validate or invalidate the initial hypothesis. In this case the initial hypothesis was validated.

This particular workgroup had for years been neglected/ignored by senior management and mostly middle management. All of a sudden the workgroup finds itself in a fishbowl. They are then being measured in some critical areas. Middle management is now focusing on the pace of this workgroup to set the pace for the front end of the business and learning how to increase the output of the troubled workgroup.

Senior management was concerned with feedback that ‘he’s just a numbers guy.” Would the efforts fail with such resistance? The fact we were having this conversation told me that senior management had a problem with using data to make better decisions. And I had better get them on-board or the whole project would be doomed. My conversation with them went along the lines of

1) the story of your performance is not good

2) not good as measured by the numbers you determined were critical

3) that is the current story

4) want to tell a different story?

5) we’ll have to achieve different results

6) results as measured by the same or more relevant data

7) so let’s use the numbers as milestones to reflect the quality of decisions along the journey and not be afraid

Ensuring senior management was on-board was critical to success. So far the results are promising. Output is increasing from the workgroup, on time deliveries increased dramatically, expedited shipping costs have declined, and no one has left who was not invited by senior management to leave.

 

Market Risk 10.22.12


This is a model for measuring Market Risk in the overall equities markets. There are the short term indicators of which a simple average is calculated and a simple average of long term indicators. The short term are plotted on the horizontal axis and the long term indicators are plotted on the vertical axis. The goal is to identify the levels of risk within the market at a point in time.

Risk management is not a straightforward proposition in the markets. This will only give the reader an idea of the current level. It is important to note the 2008 beating in the markets came while this was in the middle box, albeit while trending from higher levels of risk the year before.

I welcome any feedback or suggestions.

Please consult your financial advisor before taking any action. This is not intended to be a substitute for financial planning, wealth management, or any other financial advice.

 

 

Relationships and Shifting Contexts


One of the benefits of my work is the opportunity to work with some outstanding people throughout the country. And as diverse as any population segment in America is, there are some common, not universal, traits. One of those is small and medium sized enterprise operators (SME’s) tend to make decisions based on more social reasons than business reasons.

A client is currently unraveling some decisions made over the years and as we are working through these, a distinct pattern began to emerge. The client had business and social relationships who were shifting the context of the interactions and the client was not quickly “putting on the business hat” to make better decisions.

This is a simple box graph illustrating the Relationships and the context of the interactions. Business relationships with business oriented interactions as well as the social/social interactions are straightforward. Where I have seen missteps is where a social relationship begins to shift the interaction to a business context and before the SME realizes it, they are making a decision based on the social relationship and not necessarily the best business decision.

I have been using this with those clients simply to illustrate to them the segments and provide “tools” for them to use when they find themselves in a shift.

Intermediate Objectives Map


Reblogging Bob Sproull’s take on Intermediate Objectives Map

 

A Link to NOVACES

Posted: 01 Sep 2012 03:01 AM PDT

Today I want to give you a link to my company’s (NOVACES) blog postings where I also contribute.  The link below is a link to a posting I wrote about a different way to use the Intermediate Objectives Map.  I use this when I don’t have time to do a full Thinking Process analysis.

http://novaces.com/blog/constraints-management/intermediate-objectives-map-%e2%80%93-a-great-planning-and-execution-tool

Bob Sproull

Geeks to face Geniuses


On Tuesday there was a need to acquire a flash drive at work. I asked where the nearest store was carrying these items. Best Buy. So I quickly drove there.

I was greeted by someone who was standing at a station facing into the store. He said something like welcome to Best Buy can I help you? This was awkward because he was not facing us as we were walking in to the store. After selecting a drive, I wanted to hurry to the checkout. I saw a desk where there were cash registers and employees. So I stood there. And I stood there. The reason, there were three other customers who were engaged in conversation with those employees. It began to become clear to me, this was more than a scan swipe scurry scenario.

Looking closer, I see Geek Squad logos. Ah, I must be at the customer service area where they do returns or fix the product or warranty stuff. Then slightly behind me I notice about 5 checkout lines with idle checkout employees.

Having thought nothing more of it, I read this WSJ article this morning. http://online.wsj.com/article/SB10001424052702303684004577507033027128596.html?mod=WSJ_article_MoreIn_Business. Aha. Now it all makes sense.

Best Buy is now going to offer service and support. The article suggests they are going to emulate the Apple experience at it’s Genius Bar. According to data from ACSI, the more complex features a user utilizes on a smartphone, the less satisfied they are. http://www.acsimatters.com/. And Best Buy is in a competitive market position to take advantage of increasing customer experience.

Additional considerations for Best Buy on improving the customer experience.

1. It is considered polite to be facing customers when they arrive. Apple stores don’t have stations in the front of the stores. There are usually an employee or two standing at the front door to ask if they can help.

2. If I were on my own looking at say iPads, an Apple employee would approach me and  offer answer any questions I may have on that product.

3. In the event I need someone to help me with a product, or I need a repair, I can go online to the Apple Store and book an appointment with the Genius Bar.

4. Advertise, Promote and Distinguish. Make every customer and potential customer know there is help with that product or device at the store.

Best Buy reported 1103 stores in the U.S. in their latest financial report. Apple has 257 listed in the U.S. on their web page. Best Buy has the advantage in number of stores and the potential to offer the broadest scope increasing customer satisfaction. And where customer satisfaction is increased, profits follow.

 

 


Consulting With Results:

Where can Avatars replace us humans? Tellers, agents, drive-throughs, box offices, medical receptionists, cashiers, end of the aisle kiosks, restaurants, commoditized services such as car insurance.

Originally posted on Pomp Logic:

The future is coming. Whether we like it or not, humans are being replaced by technology. The Port Authority of New York City will be implementing these in the near future at select airports:

This makes sense in the areas of lower operating costs (not paying employees), ensured professionalism, and less stress on employers (they don’t have to listen to everyday employee issues). The possibilities for advertising are endless as well. Pretty exciting stuff.

Here is a “holographic avatar” in action:

Now it gets interesting. These psudeo-people sounded good in theory but can this really work? In a 45 second clip I felt like I was merely seeing the person who usually annoys me on the phone while I sit through automated telephone trees. What happens when the avatar deals with a disgruntled customer? She said “to the left” but is that her left or mine?

You can see where…

View original 59 more words

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