The heart of the matter really becomes apparent with the consultant conducting non-manager employee interviews. The focus here needs to be with the field sales representatives, & Customer service people, as well as representatives from Operations & Finance. The emphasis is on what helps & hinders them getting their job done.
In a motivated workforce, much will come out here. It is not simply a gripe session, but neither should the feedback be discouraged. The more passionately they respond, the more they want their challenges understood, the more likely they will be able to ultimately see how their counterparts in other areas of the organization are frustrated. Guided in a positive way, which is done best by a neutral & fair third party, empathy is created, as is the importance of being a team.
The consultant next gathers the data, and "scrubs" it only to create anonymity. Otherwise it should not be touched, and allow for the importance and passion to come through.
These findings are then presented to the President and his/her management team that were first assembled. This is the time for real understanding and acceptance of the situation, even if it's fraught with negativity. There should be discussion, debate, and final consensus. Led by the President, the managers need to accept the challenge of bringing the organization together.
Then, facilitated by & with the consultant at first, & later by the managers, individuals are brought together to listen, and hear, what their counterparts have felt and said. From this frank exchange will come a list of "To Do's" for each of the 2 person teams. It might be spending a half-day with the other to witness what each person's job is like. it might be reviewing together certain past jobs that were particularly troublesome, and coming to a joint conclusion as to what could have been done differently.
Finally, each 2 person team will eventually report back to the President & Management team with its findings and recommendation for changes. The solutions become real, personal, and meaningful in this manner.
As time goes by, and with a competent consultant, you should find that your folks will do more and more of this on their own, and without the consultant and management. They will create via the process, the culture you've been looking for.
Wednesday, June 16, 2010
Tuesday, June 15, 2010
Finding Answers to the Operations/Sales Question
Previously, we examined the often-created levels of frustration between Sales & Operations/Finance caused by an imbalance between the two in acceptance and processing of jobs.
It's good to start out with everyone being thankful that we have the problem, because w/out customers and orders, we wouldn't have challenges.
Having previously contended that the answers lie within, let;s continue on that premise. First a process of communication and understanding must be undertaken. This is best done by a third party who is knowledgeable about the issues, but impartial in his/her approach.
If you doubt the need for a third party, I will emphatically state that you're making a huge mistake. Why? In a nutshell, your employees have incredible pressure, pride, and job satisfaction. If that isn't enough, consider that your customers will be affected profoundly & negatively.
It all starts at the top. A reputable consultant will first gather the managers involved, within a positive and listening environment, most ideally with the President/CEO present. They will be taken through a realization exercise that will help all understand that what they're experiencing is not only common, but typical in the print manufacturing business.
Next, the issues will be uncovered (without blame) and agreement should be reached on what the issues are, and how they inhibit employees jobs and/or adversely affect the customer and/or the company. Solutions are not discussed here, but rather a simple understanding of every one's problems.
Typical issues from the Sales standpoint are:
1) We can't get the pricing or delivery commitment we need to get the order.
2) If we tell the customer we can't fill one of their requests, they'll not
do business with us again.
3) If we aren't totally accepting of the changes the customer needs, we will
not be given further business.
4) Why aren't we more customer oriented, instead of company oriented?
5) Our prices are too high, we can't compete.
6) An order is an order, shouldn't we be happy to get it?
7) Etc, etc.
Typically, the issues from Operations/Finance might be:
1) Sales has too much freedom, they commit to pricing or delivery we simply
cannot do.
2) Our production people try their best to maintain delivery commitments, and
along comes a bunch of changes from the customer. Why do we tell them we
can do it?
3) Why isn't the company more planned and process driven? After all, we have
to make money.
4) The more focused we can be the better it will be for customers and us. Why
can't we sell what we plan for?
5) Why does Sales over promise?
6) Why can't Sales forecast accurately?
7) Etc, etc.
The intent here is to begin positively. and with support from the top. The conclusion follows next.
It's good to start out with everyone being thankful that we have the problem, because w/out customers and orders, we wouldn't have challenges.
Having previously contended that the answers lie within, let;s continue on that premise. First a process of communication and understanding must be undertaken. This is best done by a third party who is knowledgeable about the issues, but impartial in his/her approach.
If you doubt the need for a third party, I will emphatically state that you're making a huge mistake. Why? In a nutshell, your employees have incredible pressure, pride, and job satisfaction. If that isn't enough, consider that your customers will be affected profoundly & negatively.
It all starts at the top. A reputable consultant will first gather the managers involved, within a positive and listening environment, most ideally with the President/CEO present. They will be taken through a realization exercise that will help all understand that what they're experiencing is not only common, but typical in the print manufacturing business.
Next, the issues will be uncovered (without blame) and agreement should be reached on what the issues are, and how they inhibit employees jobs and/or adversely affect the customer and/or the company. Solutions are not discussed here, but rather a simple understanding of every one's problems.
Typical issues from the Sales standpoint are:
1) We can't get the pricing or delivery commitment we need to get the order.
2) If we tell the customer we can't fill one of their requests, they'll not
do business with us again.
3) If we aren't totally accepting of the changes the customer needs, we will
not be given further business.
4) Why aren't we more customer oriented, instead of company oriented?
5) Our prices are too high, we can't compete.
6) An order is an order, shouldn't we be happy to get it?
7) Etc, etc.
Typically, the issues from Operations/Finance might be:
1) Sales has too much freedom, they commit to pricing or delivery we simply
cannot do.
2) Our production people try their best to maintain delivery commitments, and
along comes a bunch of changes from the customer. Why do we tell them we
can do it?
3) Why isn't the company more planned and process driven? After all, we have
to make money.
4) The more focused we can be the better it will be for customers and us. Why
can't we sell what we plan for?
5) Why does Sales over promise?
6) Why can't Sales forecast accurately?
7) Etc, etc.
The intent here is to begin positively. and with support from the top. The conclusion follows next.
Managing the Differences Between Operations & Sales
After 30+ years in the Print business, there are certain recurring themes/problems/opportunities that constantly arise. One of the most prominent is what often is a battle between Sales & Operations regarding how incoming business should be handled.
Should we simply be grateful for anything we’re able to sell, or should we be rather conservative in what we accept? In a nutshell, are we Operations or Sales driven? And, by the way, what about the customer?
Let’s first look at some of the issues:
1) Pricing and profitability
2) Requested turnaround time/delivery
3) Production capabilities
a) Expertise b) Equipment
4) Capacity
5) Major customer needs, dynamics, & influences on how we do business
6) Last minute changes from customer
a) Specifications such as substrates or special effects
b) Content c) Artwork
d) Quantity, up or down e) Bindery
f) Shipping instructions g) Expedited delivery
When any one of these (let alone multiple occurrences) take place, depending on current workload, staffing, financial condition, etc., stress is created between Operations, Sales, and often Finance. How should this be resolved is the question.
I have seen it all, from Sales dominating, pushing anything and everything in, to Operations and/or Finance being so restrictive that significant volume is lost. One blames the other, and a lack of accountability results. High levels of stress occur, and nobody wins, including the customer.
Let’s examine the problems created before we look for solutions.
When Sales is undisciplined, soliciting or even accepting jobs not suitable or profitable for the company, a sacred thing called throughput is damaged. So is profitability. Operations is asked to produce a job without the best tools to do so. Often times delivery is compromised due to the extra effort Operations puts into production.
When Operations and/or Finance, with their procedures and detail orientation, are inflexible in what is accepted, volume and opportunities for growth are lost. Sales feels demotivated and inadequate when they’re unable to meet their goals.
How should these issues be resolved? As usual, my contention is that the answer lies within.
Should we simply be grateful for anything we’re able to sell, or should we be rather conservative in what we accept? In a nutshell, are we Operations or Sales driven? And, by the way, what about the customer?
Let’s first look at some of the issues:
1) Pricing and profitability
2) Requested turnaround time/delivery
3) Production capabilities
a) Expertise b) Equipment
4) Capacity
5) Major customer needs, dynamics, & influences on how we do business
6) Last minute changes from customer
a) Specifications such as substrates or special effects
b) Content c) Artwork
d) Quantity, up or down e) Bindery
f) Shipping instructions g) Expedited delivery
When any one of these (let alone multiple occurrences) take place, depending on current workload, staffing, financial condition, etc., stress is created between Operations, Sales, and often Finance. How should this be resolved is the question.
I have seen it all, from Sales dominating, pushing anything and everything in, to Operations and/or Finance being so restrictive that significant volume is lost. One blames the other, and a lack of accountability results. High levels of stress occur, and nobody wins, including the customer.
Let’s examine the problems created before we look for solutions.
When Sales is undisciplined, soliciting or even accepting jobs not suitable or profitable for the company, a sacred thing called throughput is damaged. So is profitability. Operations is asked to produce a job without the best tools to do so. Often times delivery is compromised due to the extra effort Operations puts into production.
When Operations and/or Finance, with their procedures and detail orientation, are inflexible in what is accepted, volume and opportunities for growth are lost. Sales feels demotivated and inadequate when they’re unable to meet their goals.
How should these issues be resolved? As usual, my contention is that the answer lies within.
Wednesday, June 2, 2010
More on the Performance Appraisal
In a previous article, I discussed a recent book by a UCLA professor, Samuel Culbert. He advocates doing away with the performance appraisal (PA) & holding management accountable INSTEAD of the individual. Now I believe management must be accountable, but so must the individual. We are all in it together.
What I cannot tolerate, though, is his contentions that: 1) H/R's mission is power retention; they only support the performance appraisal to secure & enhance their job. 2) Managers only care about themselves & don't respect the individual.
Let's take these one at a time:
1) Here are a few quotes from Professor Culbert's book: "The H/R department is insistent upon the PA to ensure themselves a secret police-like power base." "HR individuals keep the PA to give themselves more power, but most don't have a clue what their people actually need." " H/R wants authority. This is a power grab pure & simple." I'm not making this up! Is everyone who's not a line worker evil?
OK, OK. Let's say Professor Culbert had some bad work experiences. How long ago was it? He implies through his studies that his perception is the norm, but he cannot be in touch. I have been in the workforce for over 35 years, and while there are bad examples out there, they are not the norm. So let's not throw the baby out with the bath water. Keep the PA and take responsibility for doing it right.
2) Here are further quotes regarding the PA and management: "The PA hampers straight talk." "360's are biased & not objective." "How often have you heard a manager say, 'Here is what I believe,' followed by 'Now tell me what do you think?' and actually mean it? Rarely, I would bet. Bosses seldom show that kind of respect." The first 2 quotes have some validity to them if not administered correctly, but the last one is very much out of line. Me thinks the professor has an authority problem.
As teachers of our children & grandchildren, there should be a responsibility for objectivity in their contentions, especially when emotional and negative. By labeling management as oppressive & non-caring, Professor Culbert does us and himself a disservice.
To end on a more positive note, PA's should facilitate a professional and caring exchange of values & thoughts as well as the actual level of performance. I have long been a fan of Susan Scott's book, Fierce Conversations. 360's can, if managed poorly, do more harm than good. It took a great deal of effort, but my experience with them is that they elevated the whole team to a new level.
Let's use our tools well & responsible, not throw them away. And, let's not use irresponsible examples to justify throwing away EVERYONE'S accountability.
What I cannot tolerate, though, is his contentions that: 1) H/R's mission is power retention; they only support the performance appraisal to secure & enhance their job. 2) Managers only care about themselves & don't respect the individual.
Let's take these one at a time:
1) Here are a few quotes from Professor Culbert's book: "The H/R department is insistent upon the PA to ensure themselves a secret police-like power base." "HR individuals keep the PA to give themselves more power, but most don't have a clue what their people actually need." " H/R wants authority. This is a power grab pure & simple." I'm not making this up! Is everyone who's not a line worker evil?
OK, OK. Let's say Professor Culbert had some bad work experiences. How long ago was it? He implies through his studies that his perception is the norm, but he cannot be in touch. I have been in the workforce for over 35 years, and while there are bad examples out there, they are not the norm. So let's not throw the baby out with the bath water. Keep the PA and take responsibility for doing it right.
2) Here are further quotes regarding the PA and management: "The PA hampers straight talk." "360's are biased & not objective." "How often have you heard a manager say, 'Here is what I believe,' followed by 'Now tell me what do you think?' and actually mean it? Rarely, I would bet. Bosses seldom show that kind of respect." The first 2 quotes have some validity to them if not administered correctly, but the last one is very much out of line. Me thinks the professor has an authority problem.
As teachers of our children & grandchildren, there should be a responsibility for objectivity in their contentions, especially when emotional and negative. By labeling management as oppressive & non-caring, Professor Culbert does us and himself a disservice.
To end on a more positive note, PA's should facilitate a professional and caring exchange of values & thoughts as well as the actual level of performance. I have long been a fan of Susan Scott's book, Fierce Conversations. 360's can, if managed poorly, do more harm than good. It took a great deal of effort, but my experience with them is that they elevated the whole team to a new level.
Let's use our tools well & responsible, not throw them away. And, let's not use irresponsible examples to justify throwing away EVERYONE'S accountability.
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