Finally a Cure for Silos..

Last week I was on the highway, driving to a workshop on Collaboration, when I passed a wide-load carrying - a silo. It was eerie..

So, it got me thinking...do large companies that manufacture agricultural silos suffer from - functional silos? I was seconds away from calling the kind folks at Bulk Process Equipment, Inc. to ask them, until I came across their FAQ's. Yes, they have the answer to the question 99% of all companies are struggling with:

Why doesn't bulk material flow from a hopper when it's supposed to?

Talk about coming at a problem from a new direction. Why did it take so long to actually ask people who specialize in silos for the answer?

If you're looking for a great read, a great book that just arrived on my desk is The Fiefdom Syndrome. It gives a new word, and new solutions to driving functional silos from organizations.

Cross-over

I often tell clients in manufacturing industries that one of my favourite things to do is to tour factories. Yup, I'm a great big 2 year old. I'm always amazed at machinery, supply chains, and different work flows.

Many times I find myself talking to a group of managers in a given factory, and ask them the last time they, or a team of their employees, toured another facitlity. Every time (except one - only one!!!) I'm faced with blank stares. I let them know, over and over, that I can arrange tours with other non-competing facilities so each facility can learn some 'tricks' from the other. Guess how many times I've been taken up on the offer... My loss? Hardly!

I guess I felt I needed to post about this when I came across the cover article for Business Week's International Edition. The company profiled? Samsung. Samsung has transformed itself from a me-too manufacturer of consumer electronics to a true global leader. Their secret? Learning from other industries. Every year designers are sent around the world to work side by side with masters of fashion, furniture design, and many other industries. Is it working? Well, on a recent trip to Mexico, the television in the lobby of the airport - Samsung. In the Netherlands the television in the hotel - Samsung. #5 (and highest ranking consumer electronic company) on Brand Keys' Customer Loyalty Leader Annual Ranking - you guessed it.. Samsung.

My point? Get out of your building. There is a big wide world out there. Visit, tour, and learn.

Want to set up a tour for your organization? Send an email to yes@thebeacongroup.ca

I'm on the List...

Yes, 2004 is drawing to a close, and with it comes the inevitable signs of the season. In particular, I'm talking about awards shows, and 'best of' lists.

One of the early lists that I just happened upon (while reading Brand Autopsy) is Brand Keys' Top Customer Loyalty Leaders. Just curious.. is your company on the list? Was it last year? Will it be next year?

Yesterday, I was giving a presentation for a client, when a participant asked if organizations were still looking for Loyalty from their employees (I guess customer loyalty goes without saying)? My response was that they are looking for a different kind of loyalty, one that resulted in the employee to 'investing' in the company, not just adding to the headcount.

When I saw the list this morning, one of the things I noticed was the correlation between customer loyalty and companies' with strong employee cultures. Companies like Google, Samsung, and Amazon.com. Employees in these companies truly live their brands. With respect to Mr. Moore of Brand Autopsy (ex-marketing at Starbucks) it was also telling to see how the mighty Starbucks fell from 6th to 29th. My guess the reason behind the drop is the fact that Barista's these days more likely to be 'kids looking for McJobs', as opposed to true coffee connoisseurs. If your employees don't love your organization, eventually it will start to show...

The point? Invest in your employee loyalty. Create an environment that attracts top talent. Their pride in the organization will translate into breakthrough Products and Services.

If you don't believe me.. believe AVIS. I'm willing to bet that they actually DO try harder - and it shows. They were #1 last year and #2 this year.

Heck.. you might as well try it..next year, you might be on the list too...

Gone Fishin'

Wow, it's always nice to have a post actually bare fruit. No, this is not insider trading worthy, how was I to know that Kmart was going to buy Sears..?

The sad thing is.. these two retail 'icons' merged and only became the 3rd largest retailer in the US... behind Wal*Mart and Home Depot.

Either way... the trend continues...Read the Press Release

Big Fish Eat Big Fish Too...

Last night, on the way home from the office I started reading Confronting Reality, the newest book from Ram Charan and Larry Bossidy. Upon arriving home, I was elated to discover that the December edition of Fast Company had arrived.

Great, Kyle is a nerd.. No, there is an interesting point. According to Confronting Reality and Fortune Magazine, the 10 biggest megachains in the US account for 80% of the average manufacturer's business, which is up from 30% a decade ago. One can only imagine that this type of 'consolidation' is affecting the buying habits of consumers as well.

Coincidentally, in Fast Company, there is an article highlighting the struggle that Toys "R" Us is facing (note: according to Fast Company, Toys "R" Us created the term "Category Killer") in their competition with Powerhouse Wal*Mart. I wonder if there is a term for a Category-Killer-KILLER? At this point, perhaps in the same way you 'google' people, you can say that a company was Wal*Mart-ed.

The point is, Mega Chains, are not only killing off many local and mid-size companies, they are now starting to turn on each other. Is resistance futile? Will everything be assimilated? Probably not. There will be a few major players..

I hate to sound like a futurist.. but what is next? Will companies like Amazon.com win out over Wal*Mart - as they have no limitation on size of inventory? Will box stores get even bigger? Entire Bass Pro Shops and Linens 'n Things in the respective sports and homefurnishing sections in a Wal*Martopolis? Who knows, just know one thing.. size is not a strategy. Great products, great services, great experiences are your only hope. Everything else is just kid stuff..

Reward, Recognition or Revenge ?

My advice? Choose your poison carefully.

It has occurred to me lately that way too many organization's everywhere are somehow managing to miss the point when it comes to R + R - and just to be clear, that means Reward and Recognition. It is as though they are caught in some sort of Darth Vader time warp, back in an old fashioned era and a far simpler time where "fair" somehow meant "equal". Guess what?

It doesn't any more.

It never did.

We just thought it did.

Today, the "fair" thing to do is to be "unequal". It means you make a very conscious choice to discriminate. To sharply delineate between those who perform and those that don't. Those that do, should get a much different share of the pie than those that don't. Not the same share.

Yes, I understand that a one size fits all R + R policy is easier to administer but I am not worried about making life easier for the bureaucrats and book keepers. I am more concerned about how it just serves to perpetuate a level playing field and a "lowest common denominator" standard.

In fact, when you choose fair means equal, all you are doing is penalizing the very people who are performing in an above average manner. That doesn't seem to me like much of an incentive to excel.

Think again. Which one do you want? The comfort of the status quo and equality or the benefits of fairness and hyper-performance.

Am I dreaming??

NO. How easy was that.. hmm.. maybe I should just end the post there...

Ok, I'll go on. Here's a nifty trend I'm noticing. Businesses are getting serious.

No, not in the hum drum, no silly hats in the office, SOP environment sense...

Companies are starting (finally) to get it. Get what? The fact that business is real. That there is real competition. That there are REAL expectations. That there really is a DELL, a WAL*MART or a Home Depot waiting in the wings - IN EVERY INDUSTRY!!!

I guess I got on this jag because of some recent book titles that have caught my eye..all dealing with the concept 'real'. Confronting Reality, Who Really Matters, What Really Works?

Gone are the days of experiential learning and cutesy feel good offsites. Companies will no longer embrace Fish! eating CHEESE?! while falling out of trees. This is business, not high school.

The bottom line as far as I can see it is the trend towards REAL business focused approaches to organizations. Companies want:

REAL focus - on the goal,
REAL discipline - around tactics, and
REAL execution - on time, every time.

This is not the end of passion and excitement in business, it's only the beginning - for REAL

Oh no.. a post mentioning my mother..

My mother always said... "Companies always advertise their weakness." (what will come as a shock to you the reader, my mother is not - yet - a world renowned Business Theorist)

My reponse? I HATE WHEN COMPANIES DO THAT!! Don't you?

- Quality is job 1
- When you're here, you're family
- Kinkos 'Co-workers'

Yes, there is context. I have yet to speak to my friend Todd at the Restaurant. So, wouldn't you know it I'm doing more and more research.. on Todd's company. Let's have a peek at what I found on their site:

"We want to welcome you, make you comfortable and provide a warm, friendly atmosphere with attentive service and lots of fun." - I love it when my 2 year old has to listen to cussing from the kitchen while we eat our meal.

"Although (The Restaurant)'s climate is carefree, our Chefs take cooking very seriously." - Apparently that's all they take seriously..

"People can expect the unexpected at (The Restaurant)'s. Our team of B.A.s (Business Associates), help create both the décor and the atmosphere. "Our servers are also entertainers," says (The Restaurant)'s founder, John (Name Changed). "They are out-going and full of energy. Their smiles and antics are the most decorative touch in the place." - Who knew that Andrew Dice Clay was flipping burgers these days...

Anyway, I hope this isn't the case in your organization. In my travels today, I came across a series of posts on Tom Peters' blog refering to a similar situation.

Bottom line: Do what you say, let everyone in the organization know, and keep checking up.

Your customers are..

Well Done..Todd

This morning, after exploding my links, I read a post on Seth Godin's blog referencing poor service he received.. buying lobsters.. (WAIT!! don't leave, believe it or not, this is a serious post!!). The point of the post was in reference to how people's behaviours change when they believe someone is, or isn't watching.

It struck a chord with me for a couple of reasons. Yes, still plugging away on that Scorecard from last week, and one of the metrics is a score based on 'Secret Shopper' visits. Secondly, I am about to make a phone call to a district manager (Todd) from a local restaurant chain (no, don't worry it's not Boston Pizza.. ;P ...) regarding an unfortunate situation my family experienced while having dinner last Saturday night.

So what's my point? Simple.. why do companies employ people who are not on their game every second of every day? Disney does it, ferociously. Geek reference #1 - this is the Experience Economy, we (consumers) are looking for Purple Cows. Why do you (owners, managers, executives) tolerate anything but extraordinary, remarkable service?

Seth thinks consumers should carry cameras, I (for the foreseeable future) believe in Secret Shoppers. Why do you (owners, managers, executives) let this happen? WE DON'T TRUST YOU. We trust Home Depot, Wal*Mart, and The SONY Store. What are you (every other company) going to do to change that?

Geek reference #2: In his newest book, Hardball, George Stalk Jr. talks of ways companies can get ahead by looking for simple things consumers take as part of a particular industry. By eliminating that 'thing' (in this case bad, yes - BAD customer service) you can rapidly gain customers from your competitors.

It's pretty simple and cheap, last time I checked, smiles are still free.