Author: Lisa Anderson

Volatility is the New Norm – Are You Ready to Thrive with Change?

Written by Lisa Anderson on April 24, 2013. Posted in Articles. 4 Comments on Volatility is the New Norm – Are You Ready to Thrive with Change?

Volatility is the new norm in today’s business environment. How often does your supplier decide to close up shop? Or, does your 20 year customer decide to go through a rigorous selection process? Or, does natural disaster cause a disruption in your supply chain? How about political strife? Are you planning a new ERP system implementation or upgrade? Undoubtedly, if you want to succeed in the new normal, you will learn to thrive amidst change!

Although change has always been around, it seems to be one of the most challenging roadblocks my clients face. How do you give your employees, customers and suppliers confidence to successfully navigate these ever-changing times? You must find out; otherwise, you’ll likely spend the next 20 years hoping to survive. Who wants that sort of existence? Thus, a few strategies for success should come in handy: 1) Leadership. 2) Exemplars. 3) Modeling. 3) Trials. & risk.

Leadership – Success in change begins and ends with leadership! There is no way around it. If you do not have solid leadership, it’s best not to focus on change. Of course, it is nearly impossible to avoid change in the new normal; however, you can at least minimize change. You better as you won’t succeed without exceptional leadership!
For example, I’ve seen clients with minimal resources navigate complex change and succeed with solid leadership, yet I’ve also seen robust clients fail miserably with simple change efforts with mediocre leadership. Solid leadership starts by giving folks the confidence to follow the leader through the change process. I’ve found that employees are not resistant to change. Instead, they are resistant to change if they don’t understand the destination and are concerned about getting lost along the way. Leadership resolves those issues.
Exemplars – One of the best approaches to succeeding with a change management initiative is to find respected exemplars and get them on board with the change. People will follow those they trust and respect. It can be as simple as that.
For example, in one client project, we had to dramatically increase the production output from the gating work center area in order to increase customer service levels. It was a constant battle until we found an exemplar to trial new approaches. Once folks saw that the exemplar was willing to try new methods to increase production rates, others followed. Suddenly, we reduced the past due in half as momentum took hold.
Modeling – Modeling the change can be very helpful. Sometimes, employees are not resistant to change but do not understand the change or how their jobs will be affected by the change. Thus, if the leaders find a way to model or illustrate the change, it gives folks an opportunity to learn through observation. It is significantly less scary to try something new if you’ve seen it modeled successfully – you know you can try to repeat what you saw “work”.
For example, in an organizational realignment project, the project leader modeled the new behavior expected of department leaders. Instead of viewing goals which would negatively affect her department but that would positively affect the company as a whole as negative, she modeled a new behavior of support for the company objectives.

She talked about the value to the organization and how her department was key to the outcome as it was expected that they’d perform slightly worse in order to increase new sales (in support of company objectives). Instead of agreeing to the goal but not modeling true support which might result in giving free reign to perform poorly, she developed new metrics and aligned them with stretch goals assuming the negative effects took place. Everyone got on board with the change – and succeeded.
Trials & Risk – Last but not least, it’s essential to create an environment where employees and leaders can trial a new idea, approach or organizational style. It is one of the reasons why leadership is essential – if leaders do not create the right type of environment, employees will never try new approaches which might cause them to fail and/or get in trouble.
For example, in one client, in order to bring up service levels, we had to forecast demand and build inventory to forecast. This approach was previously taboo – no one even thought about increasing inventory! Thus, in order to make this change, we not only had to talk about why it was important but we had to create an environment conducive to the change. We had to celebrate employees’ taking a risk with the forecast (assuming it was a reasonable risk) even if the forecast didn’t come true. This is really challenging as it’s likely to negatively impact quarterly results initially; however if we beat employees up for changing as we’ve requested, we’ve guaranteed no change!

Since the only thing that is constant is change, we must become adept at managing change – even excelling at change. Those who are flexible and can readily adapt to change will thrive in the new normal. Will you be left in the dust?

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Lost in the Culture Change Maze? 4 Strategies to Succeed!

Written by Lisa Anderson on March 13, 2013. Posted in Articles. 2 Comments on Lost in the Culture Change Maze? 4 Strategies to Succeed!

Anderson FeatureArticle Mar13 In my 20+ years of experience as an operations executive, a global supply chain consultant and a non-profit trade association leader, I’ve found navigating culture change is a requirement for success – no matter the initiative. If your company isn’t merging cultures, embarking on a major change initiative such as an ERP implementation or dramatically changing the business to ensure top notch customer service in today’s volatile new normal environment, you’ll probably be left in the dust. Thus, those who thrive in this chaotic business world learn to be proficient at culture change.

My clients who cover diverse industries (from aerospace to consumer products to healthcare products) unanimously find culture change to be one of the most challenging obstacles to overcome. Successful culture change is not dictated. It isn’t a one-time event. And there’s no formula for success. Thus, a few strategies for success should come in handy: 1) Strategic clarity. 2) Give it a boost with enthusiasm. 3) You get what you measure. 3) Make it visible.

State the vision – Before going any further, it is essential to state the vision. Why are you undergoing culture change? How does it relate to where the company is headed? Why is it important to the executives? To each employee? Give your employees, customers and suppliers an opportunity to understand the vision – and to find out whether the new culture will be the type of place they’d enjoy working and collaborating. If so, they can become a champion. If not, it’s better if they get out early!
For example, one of my clients wanted to change the culture from a focus on purely revenue to one focused on customer service. They started by communicating the new vision and culture. It gave folks an opportunity to ask questions and debate upfront. In another client, we had to transform the culture from a robust, process-driven culture to a more innovative one that kept the essentials of the processes without the baggage. We communicated upfront about the expectations for the future so that folks could determine whether they fit in this new culture.
Give it a boost with enthusiasm – Even the most exciting culture change will sound hum-drum if presented in a monotone and without enthusiasm. Assuming you wouldn’t be embarking on the challenging process of culture change if it wasn’t essential, don’t put obstacles in your way. Be enthusiastic! Find the positive. Show folks why they should be interested and excited for the new culture change.
For example, my customer service culture change client communicated the vision for a customer-centric culture with gusto. What could be more important than ensuring customers get what they need when they need it? And for the innovative culture, we emphasized how we could build upon the solid foundation they had built with a bit of innovation and talked about how they could have a larger effect on the future by combining the best of both approaches.
You get what you measure – It matters little what you say if you hold folks accountable to a different set of metrics. Who wants to listen yet fail?! It’s easy to overlook this strategy yet it is vital to success. Find simple yet meaningful metrics that will measure what you’d like to occur with your culture change.
For example, in the customer service culture change client, we changed the metrics from revenue, revenue, revenue to a focus on on-time delivery with the caveat that older was worse in terms of the metric. Thus, if you shipped an order 1 day late, you received a higher score than if you shipped the order 30 days late. It spurred interest in the customer! And for the innovative culture, we didn’t track process efficiencies solely as it didn’t encourage risk-taking. Instead, we tracked new ideas for resolving issues and trials.
Make it visible – Last but not least, it’s essential to make the change visible. Give people an example of what the new culture change looks like. Find role models and make sure they are on board with the culture change. People will follow those they know, like and respect.
For example, in the customer service culture client, a respected executive made sure he was not only available to discuss the culture change but also was visible and easily accessible. He sat in the midst of everyone involved in the culture change. There was no open door policy as no door was required! And in the innovative culture example, we congratulated team members who tried new ideas to move the company forward – whether they failed or succeeded. The idea was to encourage innovation which doesn’t occur without failure.

Few executives and companies achieve culture change smoothly and successfully. In the rare occasion of rapid success, each of these strategies was utilized. Follow these simple yet powerful strategies and success will follow.

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What’s the Secret Ingredient to Project Success?

Written by Lisa Anderson on February 6, 2013. Posted in Articles. 4 Comments on What’s the Secret Ingredient to Project Success?

Volatility is the new norm. Results must be an assumption as companies struggle for high growth rates, fight to find and retain top talent and find that execution alone is no longer enough to succeed in the new normal business environment. In order to stand out in the crowd and succeed, we must think differently.

Instead of looking at the latest and greatest fads and expensive programs, why not turn your thinking upside down and consider a simple yet effective approach to success? The power of focus! What could focus do for your projects?

In my experience, regardless of company type, size, industry, and reach (local, national, global), the 80/20 of client project success – improved bottom line results – relates directly to focus. Undoubtedly, when we start the client project, it seems much more complex; however, I’ve yet to find an example where a key driver to success doesn’t substantially fall into the category of focus. So, why does focus matter? The main reasons include:

Strategic clarity. First, a baseline tenet – the most successful companies understand where they are going. Thus, it is vital to consider the top priorities to ensure progress towards that vision. The best companies not only understand where they are going but they also achieve a strategic clarity throughout the organization by aligning focus with the direction.
Ideally, the Executives have a solid handle on the key aspects of the long-term roadmap to achieve the vision. Although that used to be a 3-5 year plan, long-term has become 12-24 months in the new normal business environment. Then, on a yearly or every 6 month basis, the top priorities should emerge. I’ve noticed that this topic can become a circular conversation, as strategic clarity leads to the top priorities – and focus on the top priorities leads to strategic clarity throughout the organization. However, the key point is that the organization will excel through the power of focus which typically manifests itself in clearly communicated key priorities.

In the words of one of the best financial leaders I’ve worked with throughout the years when asked her opinion of the key to success of the CEO who not only turned around the company while valuing people but also completed a successful sale of the company, she said, “he refused to veer off the strategy and kept the organization focused”.
Practical application. No company can be successful when it divides its resources (people, capital/ cash, etc.) among too many initiatives. Focusing on the right critical issues – no more than 3 to 5 in most cases – is vital to achieving success.
How many times has it felt as though you have 100 priorities (and directions) to achieve at the same time? In today’s business environment, 100 priorities could be a good day! As tempting as it is to try to achieve what all seem like important priorities, stop. Instead, take a step back and go through a rigorous prioritization process.

Which of the priorities are most important and will have the greatest impact on achieving the strategy during the next year? Consider breaking it into quarters. A steadfast focus on a select few priorities will move the organization forward at a much quicker pace than working twice as hard on a hundred priorities.
Motivation. Help your organization translate the top priorities into succinct goals. Do not get sidetracked with those which you know how to achieve, those which are easy to achieve or those which are more interesting to achieve at the expense of those which will accelerate progress towards the strategy. In a word, “focus”.
Make sure everyone understands the value to the organization of achieving their goals. Make sure the goals are achievable yet require a stretch for the employee. Accelerate the pace of progress with an unrelenting focus. There is nothing that motivates an employee more than clear goals, which are not only valued by the leaders but will also contribute to the company’s strategy and success. A leader’s focus and appreciation translate into happy employees and bottom line results.

I’ve seen projects ranging from a 50% reduction in inventory levels to a launch of a new product line achieve the intended results largely through focus. In today’s too much cash with the concern of what tomorrow might bring, finding a recipe for success that doesn’t require a capital or cash investment is undoubtedly worth pursuing. Which projects can you successfully achieve through focus alone?

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Speed is King: How Do We Leverage for Projects?

Written by Lisa Anderson on January 16, 2013. Posted in Articles. 3 Comments on Speed is King: How Do We Leverage for Projects?

FeatureArticle Jan16 Anderson In today’s new normal business environment, customers want products and services delivered quicker. Investors want month-end numbers faster. Customers expect new products yesterday. Executives are expected to sift through an immense amount of information and make rapid decisions. Boil it down – speed is a differentiator.

In my experience as an operations strategist and global business consultant and with hundreds of projects of all shapes and sizes behind me, I find that there can be hundreds or thousands of moving parts in any project or program. In these situations, it’s hard enough to keep track of all the pieces and tasks, let alone find ways to leverage speed. So, what should we do?

First, be clear on speed’s priority: Although speed is in the top 3 conversation pieces of every executive I’ve talked with in the last year, it doesn’t mean speed is a priority in every situation. I’d be surprised if every executive didn’t say “accelerating progress” was important; thus, just confirming this desire is not enough. Instead, you must probe further to better understand speed’s priority vs. other priorities.
Just having a conversation is a great place to start. In many of my clients, assumptions are made as to what the executives prefer, yet no one wants to ask/confirm. After all, who wants to take a risk and look dumb? You must! Be willing to ask clarifying questions.

For example, in one of my client projects, I’m partnering with my client to implement a sales and operations planning process. It is a corporate priority and can have a significant effect on whether the facility will meet its budget goals, and so it’s obvious that accelerating progress is critical. However, how does it compare with quarter-end results in terms of importance? Or with safety and quality goals? How about overtime pay? Have a discussion with the project sponsors and executives. Make sure they understand their choices and tradeoffs. Gain clarity in advance.
Start with the right mindset: Once the project leader has clarity on the priorities, it is important to take the time to frame the mindset with the project team. It might sound like the opposite of what you should do on a project where speed is vital; however, taking an extra few minutes, days or weeks upfront will accelerate progress in the long run.

For example, I’m working with a client on better leveraging their ERP system. The right mindset can take weeks to obtain yet it is one of the most important ingredients to gaining speed. What is the right mindset?
In this case, the project team could think we need to replace the old processes with an improved process upfront since we spent a considerable amount on the new system. Or, the team could think that because we didn’t have solid processes in place that we should implement “best practices” and go 100% with whatever the new system requires – should we do that regardless of our employees’ preparation? Or, on the other hand, the team might think they want to get back to their normal jobs (which align with their performance reviews), and so they just want to get the system done rapidly, even if they sacrifice a little in terms of quality.

Let’s stop right there: if you skipped step 1, you must go back as you won’t know which of these many options to choose – and communicate! Then, no matter which option is chosen, I’ve found it is dramatically more successful to have the mindset of “if we’re 80% ready, GO”.

On any project especially one of this level of effort and importance, people will see it as their “ticket to success” and lean towards moving only when 100% ready. Or, they’ll go when 60% ready because they want to get back to a regular routine or they have no idea they are at 60%. Thus, you will have to continually remind people, mentor people and reward people for moving when 80% ready.
Plan the work & work the plan! I know this advice sounds simple yet it is one of the most critical elements to accelerating progress on any project. Again, when speed is a priority, you’ll have to fight to take the time to develop a solid plan; however, I’ve found repeatedly that without a plan, your project will be guaranteed to take longer than you’d ever expect. Take the time to define the key tasks. Which are on the critical path? What are the key elements?
For example, in one client project to improve operational performance, the team truly believed they produced more with the “flexible/ no plan” approach they had in place. There was significant resistance to creating a plan, even a short-term plan. After all, speed was important. No one wanted to waste time. If you run across this roadblock, suggest a trial. A trial or test can be performed on a limited scope (perhaps 1 task) with limited resources yet it gives you the opportunity to prove out the need for a plan. Again, go back to step #2 – when 80% ready, GO. Thus, do not create the perfect test or trial as it will fail.

Once you’ve developed the plan, the 80/20 boils down to execution. Focus. Remove obstacles. Focus. Celebrate progress. Focus. And focus again.

Is your project focused on speed? If not, you’ll be left in the dust. So, why not strategize with your project team on how to incorporate speed? – You’ll achieve not only quicker results but also, most likely, higher-quality results.

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Top Project Priorities to Leverage for 2013

Written by Lisa Anderson on December 12, 2012. Posted in Articles. 4 Comments on Top Project Priorities to Leverage for 2013

Anderson FeatureArticle Dec12 In today’s new normal business environment, it is imperative to stay ahead of the pack. Only those companies that innovate will outperform their competition. Thus, it is even more critical to pay attention to the top project priorities and how to leverage them to deliver bottom line business results.

In my experience as a global business consultant and with hundreds of projects of all shapes and sizes behind me, I find that it is critical to pay close attention to which priorities are not only popular but also typically deliver key results that contribute to company success. In today’s new normal business environment, it is even trickier to stand out in the crowd as everyone is doing whatever they can to gain an edge to grow the business. There are a few project priority trends worth noting – why not leverage these for 2013 success?

Revenue growth through collaboration: Of course, in the new normal business environment, sales are lackluster. As baby boomers are beginning to retire, they are also decreasing their spending. And, since they are the largest population group in history, they will have an impact on the economy – after all, 70% of our GDP is based on spending. Thus, businesses which are focused on revenue growth by collaborating with customers and suppliers seem to be gaining an edge.
Customer service is the name of the game: Since people are leery from the recession (and the lack of robust growth), they are typically more concerned with what they spend their money on. In essence, everyone wants more for less – and NOW! Thus, those companies who can stand out from the crowd in terms of service will be noticed.
Speed matters! Although speed can be considered a component of customer service in many respects, it deserves a mention of its own. Those companies that can deliver faster – who can customize on the fly – will win business. Those executives with quick yet valuable information at their fingertips will be ahead of the crowd. Think of all the ways in which speed can make a difference…..
Leveraging business systems: Undoubtedly, businesses are realizing that they must leverage their business systems to the fullest potential possible in order to optimize business performance. Those who can better utilize their system will outperform with less effort – what a combination. Executives also seem to have a bent for evaluating and implementing new systems. Do you have a top notch team in place to fully leverage your system?
Supply chain optimization: Supply chain has started to emerge as a critical function. More often, it’s reporting directly to a C level position. There is a vast opportunity to improve service, increase cash flow, lower costs and increase revenues through supply chain innovation and optimization. Those companies valuing these opportunities will thrive.
Lean: The lean philosophy is long from dead; however, it is no longer innovative. Instead, it must be an assumption in order to remain competitive in today’s new normal business environment. Are you eliminating waste? Focused on providing value to the customer? Many lean concepts are fundamentals to success in my opinion yet they are not always common sense.

Is your company focusing on these project priorities? If not, take a step back and think about whether you could take a leap forward by focusing attention to what will give you an edge in 2013.

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