by Elizabeth Hines | Sep 11, 2014 | Blog, Strategy, Supply Chain
Strategy is not execution
Strategy and execution are fundamentally different. Strategy is about making choices. Execution is about getting down and dirty so that the choices made can produce results. Here’s how you can get from excellent strategy to strong execution.
Strategy is the pursuit of excellence. It is more than white boards, spreadsheets, taglines, slogans, and vanity metrics. Strategy is about making choices on where to play, how to play, and how to maximize value — for your company and for your customers.
Execution is about doing the work needed to produce results within the context of the aforementioned strategy.
Here is how to move from strategy to execution.
Keep it simple.
When it comes to strategy simplicity is key. Develop a few simple but big ideas or themes that will drive your organization. Live or die by these ideas. If you develop too many or they are too complicated, you will lose focus and internal buy-in. When you lose focus and internal buy-in, execution is doomed to failure.
Involve your team.
When you pick your few big ideas (see above), make sure you involve your “front line” team. These are the people who turn action into daily routines. Their insight and knowledge are invaluable.
Be obsessed with your strategy.
If you cannot articulate the “why” of your strategy in everything your organization does, it is probably the wrong strategy. Being obsessed with your strategy means that your strategy can be demonstrated in every action, every day.
Focus on the customer.
If it is not about the customer, it is not strategic. Everything you do needs to link back to the people who are paying you… your customers. If it does not help them, it does not help you and therefore cannot be strategic.
By staying focused on these business execution strategies, you’ll be able to successfully move your supply chains from idea to reality.
by Elizabeth Hines | Aug 28, 2014 | Blog, Leadership, Strategy, Talent
Most teams are able to fairly easily decipher what needs to be done. However, when it comes to the how, new or weak teams fall flat. Here is how you can optimize your team for success.
Define roles
Clearly define roles and make sure every team member understands not only their role, but the roles of others on the team. When roles are defined and understood the team can avoid overlap and can avoid the trap of “I thought someone else was doing that.” In short, by defining roles your team can be more efficient and more effective.
Establish a communication protocol
Take the time to establish a communication protocol. This protocol should not be a rulebook, but rather it should outline a set of decisions about how the team will message each other and stakeholders on the progress and needs of the team. If you leave this to chance you are, well — taking a chance. If you establish a communication protocol up front you will achieve better communication and it will be less likely the ball will be dropped.
Develop performance metrics
Develop performance metrics up front. If you don’t take the time to do this, how will you know if you are making progress? How will you know what to do if you are not making progress? How will you know when goals are achieved? How will you be able to reward team members? Take the time to develop performance metrics up front — and get everyone on the same page.
Provide your team with necessary tools
Provide your team with the tools that they need to succeed, or you will set them up for failure. For example, give them the go-ahead to make certain decisions without needing to go through 11 bureaucratic steps. Similarly, give the team access to the people and information that they need to get the job done.
By focusing on the best path forward, rather than the end goal, good teams can get even better.
A version of this post previously appeared on EBN.
by Elizabeth Hines | Aug 27, 2014 | Blog, Leadership, Strategy, Talent
Look across business, sports, entertainment, and the military, and identify the top performers. Next, take a step back at look at the characteristics of these individuals. What you will find is that there are at least three elements that they all have.
They know how to maximize through self-knowledge. Top performers have intimate self-knowledge. They know themselves — their strengths, weaknesses, challenges, and vices. They know how to use this knowledge to stretch and apply themselves. Furthermore, they know how to sustain themselves.
They know how to work with the environment. Top performers know and understand their environment. This enables leaders to work with and within the environment effectively, shape it, and be in tune with it.
They know (and use) the ingredients for a top performance. Top performers know what makes a top performance. They know that it requires planning, preparation, delivery, and evaluation. And they execute — each time.
They understand emotion. Top performers understand when and how to remove emotion from the equation. On the flip side, they know when not to table their emotions.
By focusing on these characteristics, you can be a top performer and encourage your team to do the same. In the end, maximizing the performance of each individual will maximize the performance of the team and, eventually, your company.
A version of this post previously appeared on EBN.
by Elizabeth Hines | Aug 20, 2014 | Blog, Leadership, Strategy, Supply Chain, Talent
Losing an employee is costly — very costly. Yet, many organizations don’t know how to ensure that its human resource assets don’t just walk away.
The US Department of Labor Bureau of Labor Statistics reports that more than 2 million people voluntarily leave their jobs each month. The Society of Human Resources Management has found that the cost of replacing an employee ranges from 50 percent of the employee’s annual salary to 400 percent of their annual salary. What do these numbers mean? They mean that the cost of replacing an employee with an annual salary of $45,000 could be between $16,000 and $160,000. And the cost of replacing your employee with an annual salary of $150,000 could range from $60,000 to $600,000. Not inexpensive.
In July 2013, Tompkins Supply Chain Consortium released its Supply Chain Talent Report. According to the report, the supply chain industry is expected to experience an increase in turnover within the next 18 months. Most impacted will be positions in planning, procurement, and manufacturing. Reasons include plant closures, outsourcing, and the need for specialized skillsets. There are other reasons as well. Accenture conducted a study (across industries) and found the top four reasons why employees quit their jobs are: a lack of recognition (43 percent), internal politics (35 percent), a lack of empowerment (31 percent), and because they don’t like their boss (31 percent).
For managers, several lessons are there to be learned. Let’s start with the simple lessons. These lessons involve flipping the negatives (the reasons for leaving) to the positive (creating reasons for staying). That is: recognize employees, empower employees, and take steps to remove from the work environment as much bureaucracy and internal politics as possible. By taking these steps the employee who is considering a move may change their tune. If not, it is reasonable to talk with an employee and determine what the issue is. If the issue is something that cannot be addressed and if it is impacting productivity and team morale, explore transferring the employee within the company.
Other keys to employee retention include buy-in and success. Specifically, it is important to gain buy-in from your employees. If an employee is going to be motivated to not just do their job, but to excel at their job — they need to buy-in. They also need to, regularly, succeed and realize progress. A great resource on achieving buy-in and enabling success is The Heart of Change by John P. Kotter and Dan S. Cohen.
While the time and expense of retaining an employee may seem daunting, the cost of losing an employee is much greater.
Want to learn more about improving employee retention and hiring top talent? At Fronetics we work with clients to understand and execute on talent acquisition, performance management, learning and development, and succession management. Additionally, we offer management and leadership solutions to organizations within the supply chain and logistics industries during times of transition.
A version of this post previously appeared on EBN.
by Elizabeth Hines | Jul 31, 2014 | Blog, Data/Analytics, Strategy, Supply Chain
Want to have a better-run business? Define clear metrics and use them as a launch pad to move your organization forward.
Metrics enable you to operate more effectively and efficiently because they provide you with valuable information on how you can drive improvement and how you can apply resources (people, time, money) to the activities and programs that will get you to where you need to go.
Critical metrics for effective business are ones that focus on the strategic goals of your organization. Here are five metrics every business can benefit from using:
Financial metrics
Make sure you have, at the very least, a quarterly plan in place. A yearly plan is ideal, but a quarterly plan is a good starting point. Track against your plan. Looking at financials in aggregate is not a helpful exercise. Rather, look at your financials on a granular level.
Business metrics
Determine what makes your customers happy and what enables your organization. Track these. Soon, you will know what you should do more of and what should be cut back.
Customer metrics
Determine the who, what, when, and why of your customers. Knowing what matters to them will help you understand how to serve them better.
Vendor metrics
Determine the who, what, when, and why of your vendors. Relationship management and partnering can only be built on a strong foundation.
Quality metrics
When it comes to quality it is important to look at anything and everything. That is, the quality of your products, the quality of your relationships with your clients, the quality of work your employees produce… Start tracking all of this.
Track the data
Develop tracking methods for each of these five metrics. Archive the data. Learn by studying the results on a regular basis. You’ll start understanding how to drive the direction of your organization. You’ll develop a focus for your organization and your performance. You’ll be able to make better decisions and drive performance.
Although most (if not all) of the material will be used internally, you should make sure that it is “external facing ready.” What you are creating is a database that you can query when you need it. In the end, you’ll have, at your fingertips, a decision database to run a better business.
