Setting the Stage

When the curtain opens it's time for the performers to perform. All the preparation that is done prior to the curtain opening is the time for the leaders to perform.

The leaders set the stage so that the performers can perform at their best. If the stage is not set properly, the performance will not be the best. Whether it's Rugby or Business, the leaders set the stage.

Jeremy Guscott has a question and answer column on the BBC's Rugby website where he answers reader's questions about professional rugby, particularly the home nations (England, Scotland, Wales, & Ireland) and international test rugby. Recently a reader asked about the erratic performance by Wales and whether it was a reflection of the coaching or of the player's mental state. In one short paragraph (5 sentences), Mr. Guscott gets to the heart of the issue of both rugby and business. Since I can't say it any better, here's what he says:

"Coaches put in place an environment for players to perform. Preparation is meticulously
considered and calculated, strategies worked out and training geared for the match ahead. The players have everything they need and then they have to perform. If players don't or can't step up they have to be dropped, and others who can brought in. I feel coaches can only be blamed for poor selection or not creating the best possible working environment."

I've heard this message before. At a business presentation by former college football coach Dick Tomey, Mr. Tomey made the following statement: "To achieve Excellence you have to create the right environment."

Lest you think this thought only comes from the world of sports, I've heard the same theme expressed numerous times in the interviews I've been conducting for my forthcoming book, "Deliver on Your Promises". The leaders set the stage. The set the tone of the organization, they create the environment, set the standards, and hire and put in place the guidelines for hiring the right people. They give everyone the tools they need to meet the expectations they are given.

Then they get out of the way and let the performers perform.

If you're not creating the right environment, what can you do to create it?
If you're not hiring the right people, how can you hire them?
If you're not setting goals and expectations, how can you develop a system to do that?

It's up to you as the leader to put in place the environment so that your performers can perform.

Just keep getting better

I just keep getting better. I've moved up from the boring wooden plaque to this lovely crystal sculpture award. Though they still can't get the PPR right.

Go me!

Be The Best

I've been interviewing people/organizations to include in my upcoming book (to be released this Fall). I'm speaking with organizations that are doing things well in terms of their Business Operations (since that's the topic of the book). One of the questions I get regarding these interviews is what is the theme or common thread I see among the organizations I speak with.

The answer is - The best organizations plan, and they monitor their progress towards their planning goals. I'm constantly harping on planning and measuring performance, so it's nice to have confirmation for my near obsession.

I call it the Goal Attainment System, and it consists of three parts:

1) Goal Definition
2) Action Plan
3) Performance Measurement System

Define the goals of the organization as a whole. Develop a plan of action to reach those goals. Develop a system to monitor the progress towards those goals. Simple.

So why don't more organizations do it?

Supermarket Operations

I occasionally check my stats to see how people arrive at this blog, what search leads them here or what website. By far the most popular searches that lead here are for things like “Hawaii rugby” and variations on that. What’s a little odd, though, is the second most popular search that leads people here – “Supermarket Operations”.

Apparently, quite a few people are looking for information on business operations for supermarkets. Sadly, though, it’s probably not the people at my usual grocery stop. I’ve posted a couple of rants about the poor performance of my neighborhood Safeway, and they’re not really getting any better. Ergo, they’re probably not reading up on improving operations.

Since I’ve only posted a couple of these rants, I wondered why so many people (so many being a relative term) ended up at my site. So I Googled “Supermarket Operations”. And there I am, sixth down on the list. Behind a company named Supermarket Operations, the Food Marketing Institute an organization dedicated to the food wholesale and retail industry, a book titled Modern Supermarket Operations, and an article about how big supermarket chains in Britain are driving out the small shops (seems that happens everywhere).

I poked around in these other sites a little, just to see what kind of information about supermarket operations is out there. And it’s not much. The best stuff I found was in that book, Modern Supermarket Operations, and that was printed in 1963.

One thing I did find interesting in the book (the first page of each chapter is available online) was that studies found that fully stocked shelves led to increases in store sales by up to 25%. Which tells me that people want what they came in for, not a substitute item. I know that’s how I am. And that’s why I’m constantly ranting about my supermarket being out of what I want.

I think I need to look into this a bit more and see what I can do to help supermarkets improve.

Modern Supermarket Operations (book, 1963)

http://www.questia.com/PM.qst?a=o&d=6179602

Hawaii Superferry Operations

The Hawaii Superferry has been quite controversial, and quite interesting to follow in the news. It is a textbook case of how not to do something like that, but that’s not what I’m going to talk about. We finally rode the ferry over to Maui this past weekend, for a very mini-vacation.

I have to say that my expectations were low. Having ridden some ferries in Scotland and really, really enjoying them (I want to go back and take a ferry to Ireland next), I couldn’t possibly expect Hawaii to match up. The efficiency of the Scottish ferries can’t be matched, nor the friendliness of the staff (or everyone in Scotland for that matter), and then there’s the pub’s. But, I have to say I was pleasantly surprised and enjoyed the Superferry experience.

They do have some operational issues to address, and it’s definitely not for anyone who’s prone to motion sickness, but it is worth a ride. The onboard facilities are very nice. And if you’re feeling like a splurge, you can pay extra for the “first class” lounge. We looked in through the window, but didn’t feel the need to pay extra for it. Maybe on another trip, just to check it out.

There’s only one deck for passengers, but it’s big with an open floor plan. It’s well lit, with large windows all around. The “first class” lounge is at the front of the ship, then there’s the main cabin, and the rear (aft) cabin. The main and the rear cabins aren’t really separate, but the gift shop, restrooms, arcade, and deli counter in the center of the boat act to delineate them. The aisles are wide and the seats are plenty big. There is a variety of seating available. There are some rows of seats, just two across, that recline. There are some bench seats and some lounge style seats with tables. Then there are table seats, some with two seats per table and some with four seats per table. If it’s not crowded you can score a four-seater table to really stretch out, and not feel guilty. The four-seaters were popular with groups playing cards. At the rear cabin there are outside decks, though they’re very small and get pretty crowded at times.

The food was fine, and at regular prices too, which was a surprise. And you can get beer or wine. What I really liked, though, was that they had both the local papers. That’s important when you have to arrive before 6:00 am. You can’t get the paper at the airport at 6:00 am. I’ve tried.

Since I’m not an advertisement for the ferry, I have to mention they do have some operational issues that need to be addressed. The check-in procedures are… , let’s say, inefficient. We made reservations and paid online and we had a confirmation number. Check in should consist of showing our ID and giving us a receipt. It doesn’t work like that. And how many times do you really need to show your boarding pass once you’ve passed the passed the, whatever – security/gate keeper? The answer is none. Once you’re in, you’re in. How many people climb over the fence that surrounds the compound to get on the ferry? If people are doing that, skip the first check station and just have one when you get on. Hello, if people are climbing over the fence hire a security guard or something. Don’t make people show their boarding pass to get into the “secure” area, then make them show it again to someone else before you get on the boat – still in the same “secure” area. It’s not like there’s more than one boat and you might be trying to get on the wrong one.

Ho, and they should warn you about all the stairs. I’m in semi-reasonable shape and I was huffing and puffing after that climb. Everything’s fine once you’re onboard, until you get to Maui and have to get off. I guess Maui is still trying to punish them (if you don’t know the whole controversy, I can’t go into it here). In a perfect world, or in Scotland, the cars coming off the ferry would take precedence, for a short while, until all the vehicles are off. Hold the traffic on the road until all the vehicles have exited. It’s not that long, they come off pretty quick. Don’t keep the traffic lights at their normal times. The offloading traffic gets backed up and nobody moves. And that brings me to the next issue. If you don’t have a vehicle (we didn’t), you can’t walk from the ship to the terminal. You have to take a shuttle bus. And they don’t have enough shuttles for all the passengers, so they have to load up, drive to the terminal and unload, then circle back to load up again. That leaves people standing there waiting. Bad. And you’d think the shuttles would have a dedicated lane to make their circuit, but they don’t, which backs things up even more.

All in all, I enjoyed the trip, but they definitely need to fix the operational issues if they want to be successful in the long run. It’s worth giving a try though, if just for fun.

Serving on non-profit Boards of Directors

I attended the Board of Directors meeting of APICS – The Association for Operations Management, a non-profit international professional/membership organization last weekend as a member of the Audit Committee. Then, just a couple of days ago, I was speaking with someone about an organization that offers training to non-profit board members. This got me thinking.

I’ve served on the Board of non-profit organizations, including a dance company as well as different professional organizations. I also worked with a small non-profit as a consultant, working on Board development, organizational development, and meeting management. Non-profit service, including on the Board of Directors, is very rewarding, and I encourage everyone to donate their time when they can. But you should know what you’re doing and what you’re getting into.

Serving on the board of a non-profit offers a variety of benefits. The most important, of course, is helping the organization that you’re serving, but there are other benefits. There are the personal benefits of a feeling of accomplishment and of helping others, and there are professional benefits. Professional benefits include the experience and training of serving on a Board of Directors. Even if you’re already at the top level at the organization you’re working for, serving on a board is a different experience. Networking with other Board members is one of most valuable benefits of service.

Boards differ depending on the size, complexity, and maturity of the organization. Many smaller non-profit organizations are completely volunteer run. The Board consists of volunteers, and volunteers perform all the work of the organization. This Board probably looks a lot different than one at a large non-profit with a full, professional, paid staff. The makeup of the Board at the smaller organization is most likely people who are passionate about the organization, have worked as a volunteer, and who want to do more. They often do not have any formal business training, and may have been recruited to the Board simply because they’ve been around for a while. This does not mean that they can’t or won’t be a high quality member of the Board, it just means that they’ll look at things differently and they’ll probably take more time to get comfortable in the position. This Board is usually small; 5 to 10 people.

Larger, more complex, and more mature organizations are more likely to have Boards that are populated with trained business executives and experienced Board members. The Board members may have never been involved with the organization as a volunteer. They have probably served on the board of other non-profit organizations, and likely are very knowledgeable about the role and responsibilities of the Board. The Boards of these organizations may also be structured differently.

Many large non-profit organizations have boards with 30, 40, 50, or even 100 members, but the size may be a little deceptive. A board that size simply cannot operate effectively to get anything accomplished or make decisions. And in actuality, the board is probably comprised of two distinct groups. The larger group serves on the Board in name only. They have little management responsibility. It’s likely that they’re on the board to give weight and credibility to the organization, and they are expected to donate a certain amount of money. They are also well-connected within the business and high net-worth individual communities, and are expected to leverage those connections for fundraising. The real work of the Board in regards to management and oversight is done by a small group of individuals who make up the Executive Committee.

The structure of the Board will also vary depending on the type of organization. Many professional type organizations, such as membership organizations and trade groups, will have a board of 10 to 20 people who are all involved with the work of the board and the decision making. Work will be performed (or can be) very effectively through committees made up of different Board members. There will usually be an Executive Committee with responsibility for specific items, but the majority of decision making is done by the entire Board.

Well that’s a lot about the structure of the Board, but what does the Board actually do and what are they there for. The answer is vitally important to everyone who serves on the Board of a non-profit, but not all Board members really know what their responsibilities are. So here goes. The Board has two main responsibilities; setting the direction for the organization, and oversight of the organization. Within that, the Board has legal and fiduciary responsibilities to the organization. They must act in the best interests of the organization and make decisions that are in the best interests of the organization. They cannot act for personal gain. Fiduciary responsibility means that you are entrusted with the well-being of the organization, and is generally regarded to mean the assets, or money, of the organization. It’s a big responsibility, and not one to be taken lightly.

The Board sets the direction, the long term goals, of the organization. They have the vision of what the organization will look like into the future, and set the motion to get there. They then guide the organization towards the goals and monitor progress. Monitoring progress includes monitoring activities and actions of the paid staff and volunteers who do the day-to-day work of getting the organization to accomplish its mission. The Board ensures that all laws, policies, and rules are followed and that everyone acts both legally and morally. The Board does not meddle in the details.

What’s all this got to do with Operations? Or rugby, for that matter? Operations professionals should serve on non-profit organization’s Board of Directors for several reasons. Besides the personal and professional benefits mentioned above, Operations professionals bring a unique view and skill set to the table. Operations isn’t about flash and glamour, Operations is about getting things done. Operations delivers on promises. This mindset will bring focus, a sense of direction, and the view of working towards defined goals to the Board. This is often lacking, even with an experienced Board. Too often the focus is on fundraising, marketing, and looking good, when the focus should be on accomplishing the mission of the organization, providing the services that the organization was founded to do, and moving the organization forward. Operations professionals always have their eye on the target, and will work towards getting there.

As for rugby, most rugby teams and clubs are organized and registered as non-profits. Some clubs are quite large and have a relatively large Board. Anyone serving on the Board of their rugby club should understand the role of the Board and their responsibilities.

eKno

eKno - everythingKnow - everything you need to Know in today's modern age. A new series from Squealing Piglet Press.

You're not an Idiot, you're not a Dummy, but you don't know everything. Yet.

The new series - eKno - from Squealing Piglet Press will give you everything you need to Know on a variety of subjects. Easily understandable, but written for you, the person who is smarter than they think.

Look for eKno guides on your favorite subjects, available in a variety of formats. Coming soon from Squealing Piglet Press.




Squealing Piglet Press - Promoting Learning in All Ages and Stages of Life

Squealing Piglet Press is a new venture of mine. If you're interested in writing an eKno guide, please contact me. Look for some forthcoming titles from Squealing Piglet Press.


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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.

Building your brand

Following up on my previous post here, where at the end I mentioned developing your brand image.

Branding, or developing your brand, is generally regarded as a marketing activity. But I’m an Operations guy, so what am I doing talking about developing your brand. Well, I’ll tell you. Marketing plays an important role in developing your brand, but their role is primarily in advertising the brand. The real work in branding is done by operations. Your brand image is a promise; meaning, this is what you’re going to get and what you should expect. Operations delivers on that promise. Operations does the work that gives you what you want and what you expect. Operations does the planning, gathers the resources, manages and utilizes those resources, and delivers the product or service. You won’t have a brand if you can’t deliver. You can advertise and tell people about your products and services all you want, but if your customers can’t get what they want, when they want it, at a price that’s acceptable, you don’t have a brand, you just have a name.

A strong brand commands a premium price. Think Starbucks. You can get a cup of coffee many places, but people are willing to pay a premium for the Starbucks brand. In my previous post I was talking about membership in organizations. An organization with a strong brand means people want to belong. The price of membership can be set at a premium price, not at a lower price where you’re competing with other organizations based on price. And more people will want to become members just to be associated with that brand. But to be a strong brand, you have to deliver. Whatever it is your organization provides, you have to be the best at providing it. If you’re a service provider of some sort, like a non-profit that helps people who need help, you have to be able to provide that service better than anyone else. That means gathering resources, whether it’s money or donations, processing any paperwork, recognizing donors, putting those resources to work, and then providing the goods or services to your intended recipients. If your brand is recognized for being the best at what you do, people will want to join you, will want to take part. If you’re a networking organization, you have to be the best at providing networking opportunities to your members. Being the best builds your brand, and people will want to be a part of your organization. Being the best happens through excellence in operations.

If you’re a rugby club, or other rugby organization, like USA Rugby, you have to be the best rugby organization. That doesn’t necessarily mean just winning all your games. You can have a strong brand and not be the best team in the world (or your local area). Winning games is only part of what makes up your brand image. The organization behind the team, and the people behind the organization, are the real heart of your brand. Is your club the one that people want to be part of? Are you the best run organization? If you’re not, you should be, and can be. What makes a good organization? It’s being good at everything it takes to field a team and take care of them. Start at the beginning. You have to be able to provide information for prospective club members, whether they’re players or supporters. Provide all the information they want, and keep the lines of communication open. Nothing turns people off faster than not being able to find out things they want to know. Then you have to process new members. Whether they’re players or volunteers, you need to gather and store all the information you need about them. You need to assign them the proper role in the organization. New players need to know when and where practice is held, what equipment is needed, and what is expected of them. Volunteers need to know what duties they’re assigned, where they need to be, and what is expected of them. Fans want to be pampered, not just given a seat they paid for. That means making them fell welcome and taking care of their needs (clean bathrooms?).

The players and team, being the core of a rugby club, are the core of the brand. Winning games is great, but being part of a great organization is even better. Are practices structured and controlled? Are they planned in advance, with the player’s abilities and fitness levels taken into account? Are travel plans arranged in advance? Are selections made and communicated in advance of games? Is player’s health and fitness monitored? Is everyone made to feel welcomed, even new players and not as talented players? And is everyone having fun?? A great organization will build a strong brand. Winning games will help, but the real reason people will want to join your club is the strength of the organization behind the team, and the strength of the brand that goes with it.



Don't forget to Adopt-A-Rugger and Hug-A-Rugger, the fund is growing.

Supermarket Operations

I went to my local Safeway again. I often question why I still shop there. The answer is it's close by and easy to get to. The problem is they're always out of half the things I want. I mean, it's not like I'm in there looking for some kind of exotic French cheese that is made one wheel at a time by a hermit in a cave. I'm going in there for yoghurt and peanut butter. And beer. This upsets me, when they don't have Guiness (Extra Stout) in stock. It especially upsets me when it's on sale and they're out of stock. But it really, really upsets me when the same 4 bottles in a six-pack carton are all that's in there for the second week in a row. Why can't they get things right?

If I wanted to get everything I was shopping for I'd have to find out when they stock each particular item and get there when they're stocking the shelves. Otherwise the odds are against me. If you sell that much yoghurt or peanut butter in a day, maybe you could restock more than once a day. I can hear the managers and executives now telling me why this isn't possible, but wait, I'm the customer and I have other options. One day I will be pushed over the edge and just stop shopping in your store, and I'll tell everyone I know not to shop there. Maybe one customer doesn't mean much to you, but with the competition in the supermarket business being what it is, I don't think you can afford to lose even one customer.

I might just consider myself ignorant and get over it, but in one of the most influential books on the Lean management system (Lean Thinking, by James Womack & Daniel Jones) the authors use an example of Tesco, a supermarket chain in the U.K. for how Lean works to improve operations. If they can do it, why can't Safeway? I'm sure there are lot's of things that can be done, even given whatever constraints they have, to improve their operations and keep the shelves stocked on a more consistent basis.

Welcome to Let's Talk Business!

Welcome to Let's Talk Business where the focus is on Business Operations. That covers a lot of territory. Everything from the basics of inventory management to strategic planning, from customer service to Six Sigma. Operations is the heart of your organization. It's what you do that makes you you.

We'll be discussing topics that are all over the map, and whatever happens to be on my mind. That often means ranting about customer service, but I keep hoping that if I rant about it enough people will take notice and improve their service. Service, or customer service, is fundamental to Operations. Operations are all those activities that are directly related to producing and delivering your products and services to your customers. That includes what is often referred to as customer service, and that is an area, a broad area, where far too many organizations are lacking.