Poison in the Well

During a college summer I worked for a manufacturing company as a machine operator.  It was boring work.  During the first night, I figured out a more efficient way to configure the work space.  The second night, after some rearranging, I more than doubled the output.  When entering the plant on the third night, the supervisor clapped me on the back and congratulated me.  Barely two minutes later, the union steward told me that if I did it again, I risked bodily harm in the parking lot.

I was designing a sales incentive plan working closely with the vice president of sales for a well-known consumer manufacturer.  During a plan review meeting, a financial person persisted in questioning a provision in the plan.  After a short while the sales VP suggested that maybe the finance person didn’t want his job.

As a senior vice president of a national broadband company, I heard of a small group of cable installers in rural Massachusetts who wanted a union.  I traveled most of a day to get there and sat with the group.  It took a while for them to open up, but when they did, I heard their ideas to better schedule time off.  Unfortunately, their manager didn’t want to listen to them.  It wasn’t about pay, or benefits, or safety – it was about flexibility.

There are many reasons why organizations don’t get the best thinking from their people – it almost never has to do with the ability or motivation of the front line crew.

Pink Slime in Your Organization

“Pink slime,” was in the news last week.  Whether you call it “lean finely textured beef” or “salvage” as one scientist called it, you won’t want to eat it, especially if you read about it in Wikipedia.  What everyone agrees on is that it’s added to ground beef as filler.  Organizations have their own pink slime – filler that’s of questionable value.  I’m thinking of the many reports, meetings, policies, procedures, rules, and processes that add no value, but sap resources and attention away from a focus on serving customers better, encouraging employees to be their best, and generating improved cash flow.

There’s tremendous value in putting all those forms of waste on trial for their lives, as Peter Drucker noted, and get rid of the ‘pink slime’ in your organization.  It’s healthier.

Innovation during recession?

Hewlett Packard was launched (from the famous garage) in the middle of the Great Depression.  So was Sentry Safes.  It’s when Birds Eye took frozen food to market for the first time, and Fortune Magazine began.  Television, nylon, fiberglass, and synthetic rubber were all introduced then.

After World War II, and during a severe economic crisis in Japan, Toyota figured out how to fund car manufacturing by minimizing the cash tied-up in inventory.  The Toyota Production System led to the quality movement and lean manufacturing.

During the 1990-1991 recession, Michael Dell perfected his demand-pull production system, Intel launched their “Intel Inside” campaign, and Kodak was at work on the first digital camera for consumers.  It’s also when we first saw dial-up internet access, the first internet browser, and DVDs.

In 2001, Apple launched the first iPod.  Steve Jobs said they increased their investment in innovation at that time, and they’re doing the same in this recession.

What’s your excuse for holding back on innovation today?

Return on People

The theme of this new blog is “return on people”.  Every management needs to increase the value of people faster than the rising costs of employment.  People today drive nearly all the value in organizations.  Whether it’s customer service, product development, patents, trademarks, or just plain executing a solid business plan.  Getting the most out of your organization, your people and yourself is key to success in today’s competitive environment.  And those companies who do it well perform far better than others in their industry (more about this as we go along.)

Return on people entails a challenge and an opportunity.  The challenge is to overcome the many ways organizations get in the way of energetic, knowledgeable people who want to be productive, but have a continual barrage of unnecessary complexity preventing them from being at their best.  Examples are:

  • Unclear corporate strategies (What are we trying to accomplish?  Where are we headed?)
  • Confusing organizational structures and reporting relationships (Who’s calling the shots on this?)
  • Barriers to speed from layers of approval, endless deliberations, chain-of-command inanity, mind-bending rules and processes, etc.
  • Managers who are insecure, egotistical, close-minded and/or control-oriented
  • Pay systems that reward individuals when team effort is required
  • Barriers to collaboration, cooperation, and information flows
  • And lots, lots more

There are a lot of great companies out there, and they come in all sizes.  Most companies do very well, but they all have their own ideosyncratic ways of turning off bright people.

This blog will address thoughts and examples of how to improve the work environment.  The business outcomes are significant and include:

  • Greater profits per employee
  • Faster strategy implementation
  • A much more attractive environment to attract and retain exactly the right kinds of people
  • A work place that is stimulating, challenging, and rewarding

I welcome your comments and your examples, both good and bad.  They are all instructive.

For more information about me and my company, see www.leggecompany.com.

Bob