What Bad Economy?

Went to Ryan's at Ward Center last night. Apparently they are not affected by the current economy, because they sure acted like they didn't need my business.

In contrast, I was at Kona Brewing today, and they were just the opposite. Attentive service, friendly staff, a very pleasant visit. And, of course, the beer was good.

Which one do you think I'll avoid, and which one do you think I'll return to?

There's a lesson here for your business.

Late Late Supply Chain Show

I haven't watched this whole video yet, but the part about the origin of the term kanban is great. It starts about 3 minutes in. I think I'm going to have to "borrow" the demonstration the next time I give a presentation on Lean.

Take a look.

Doing Business in a Down Economy

Why are these ladies smiling? The economy is tough, people are curtailing their spending, and businesses are cutting costs to survive. Yet Kerry Hewitt, owner of The Crown Pub in Southampton (that's in England, southwest of London, according to my google map), is doing quite well, thank you. Other pubs are struggling, as are businesses all over the world, but The Crown Pub is thriving. How do they do it, and what can you learn from them?

Bars and pubs are businesses just like any other, and have to be run well to survive and thrive. So how do you survive and thrive in these tough economic times?

The real question is, should you run your business differently during tough times? One of the keys to The Crown Pubs success is retaining customers. Do you only want to be aggressive at retaining customers during the tough periods? Of course not! If you want your business to thrive and grow in the best of times, as well as the bad times, you have to keep your customers loyal to you. And you do that by providing your customers with the best products and services, at a reasonable price. Meet and exceed your customer's expectations.

Ensure your products are produced in the most efficient and cost effective manner possible. Make sure they meet specifications. The same for services you provide. The process for providing your services must be efficient and effective.

These are basics of business whether the times are tough or the economy is growing and people are spending freely. Too many businesses allow waste to creep in when they think they can afford to waste a little. It's hard to drive that waste back out, so it's better to not let it in in the first place.

Effective and efficient business operations, which includes superior customer service, will not only get you through the lean times, it will allow you to thrive while others are falling by the wayside.

So head on down to the nearest pub and contemplate your operations over a pint of finely crafted ale. Better yet, head on over to The Crown Pub and see how business should be run.

How to run a business, part XXL

This is the kind of headline that just screams out to be read; “Craft brewers becoming more business savvy.” Apparently, craft brewers, the “official” name for small, high quality beer brewers, like your local brew pubs and microbreweries, have no business sense and they suddenly just realized that. These craft brews are the fastest growing segment of the beer market, but it seems it’s just been dumb luck and pretty labels that attract ig’nernt customers. Of course, this article also describes Budweiser, Coors Lite, and Miller as premium beers. Premium has a different definition where I come from. But I digress…

It’s safe to bet that the successful craft brewers have a fair amount of business savvy. While craft brews have become popular because of their quality and variety, you don’t stay in business more than a couple of years without knowing a bit about running a business. That being said, it seems that the craft brewing industry as a whole has begun to realize what a lot of small business fail to realize (and some big ones) – it takes more than a quality product to succeed in today’s marketplace.

The article (from the Associated Press, printed in the Honolulu Star Bulletin) states that many craft brewers are starting to bring in business talent, to compliment their technical and brewing talent. Even with the market for craft brews growing, due in large part to more quality driven and adventurous consumers (drinkers?), there’s a lot of competition out there and you have to compete on more than quality. The beer industry is just like every other industry, in that quality doesn’t win business; it just lets you in the game. Once you’re in the game, you’ve got to back up your promises. Marketing and sales play an important role, but it’s Operations that pays the bills and allows you to grow and succeed.

Operations delivers. Operations delivers on the promises that are made by marketing. Producing a consistent product that meets specifications and expectations, delivering when and where the customer wants it, and doing it at a cost that earns a profit is what Operations does.

Brining in business expertise, in the marketing and sales, and finance and accounting areas, as well as in operations, is a wise move by any organization. Effective processes that allow for consistent quality and exceptional service is what operations is all about, and what every organization should strive for. Make promises, then deliver on them, and you’ll be on your way to success, and profits.

Beer and Business

It's Beer and Business tonight. What a great concept, especially since the beer's free, thanks to some sponsors who I'm not sure who they are right now. Mahalo (that's Thanks in Hawaiian) to Lorenz Sell at Blue Lava Technologies for coming up with this idea and organizing it. Woo hoo!

I do a lot of networking, usually lunches with various organizations. But Beer and Business sounds like a winner. More relaxed, after work, might bring out a different crowd. Do try this at home (or in your town).

Do you know where your beer comes from?

Kona Brewing makes good beer, I can attest to that. I especially like their Castaway IPA and their "seasonal" Barlywine (it seems to be in season more often than not). You can only get these styles at their brew pubs, however, so sorry to all you folks who aren't on Oahu or the Big Island (in Kona - Duh!). You can get several Kona Brewing beers around the country however, and I recommend you check them out. Just don't expect those bottled beers to be made with pure Hawaiian spring water though.

Kona Brewing, along with many small craft breweries, outsource a portion of their brewing. This is no different than any company that outsources production, and shouldn't come as a surprise. Outsourcing is a valid, and widely used, business operations strategy. It might come as a surprise to some beer drinkers, but it's a common practice. An article in the latest issue of Hawaii Business magazine notes that Kona Brewing has contracted with Widmer Brothers in Oregon and Red Hook in New Hampshire to brew and bottle its beer. Even the bottled beer in Kona's home state of Hawaii is brewed and bottled on the mainland.

Kona Brewing has developed strong partnerships with their contract brewers, something that many companies can learn when working with their contract manufacturers. Kona Brewing controls the raw materials and is highly involved in the manufacturing process, not just inspecting the finished product (see my post last post on China recalls).

Good beer and a good lesson in excellence in operations. What more could you ask for? This is making me thirsty....