This month I was working with groups at the PMAC in-residence week. This event pulls together a large group of individuals with mixed backgrounds, geographies, industries and issues. The task was to fill a half day in developing useful skills and awareness about communicating, collaborating and negotiating better solutions. The challenge from my perspective is getting beyond very general concepts (e.g., consider the other parties’ interests), while maintaining relevance to the group: the common denominator of “manufacturing” is long gone from purchasing and supply chain.
Is There an 80-per-cent Rule?
My economics professor from an undergrad class at McGill told us students an anecdote, from which I will share the first 80 per cent:
After a shipwreck in the North Atlantic, three survivors wash up on a rocky island. They are a chemist, a physicist and an economist. From their vessel, they recover a crate filled with canned tuna. This appears to be the only food they will have until they are rescued. Anticipating hunger, all three set about to address the challenge of extricating tuna from the cans.
The chemist immediately starts tasting the water to gauge the salinity, and then begins calculations to determine how long the cans would have to soak before corrosion weakened the can to the point it could be opened with bare hands.
The physicist begins to look for the highest point on the shore, and starts gathering loose rocks of different sizes. This will determine the optimum “height of drop” and “weight of rock” necessary to open the can without spilling its contents.
The economist begins arranging rocks to resemble three chairs and an eating surface. The others shout, “Hey, we need to open the cans first, friend,” to which the economist replies: “Oh yes, but my assumptions are (1) negligible inflation and (2) that we have a can opener.”
My professor went on, in the next 20 per cent of this discussion, to lecture on the necessity of assumptions in simplifying issues. His conclusion: including all the complexities from the real world will limit valuable economic analysis.
I have used the first 80 per cent of the above anecdote as an illustration for many clients. My conclusions vary based on the situation. Sometimes I stress the importance of teamwork, the value of shared objectives, or the danger of assumptions. (I enjoy the irony of the latter given my professor’s original version.)
Many of the approaches that come from business research and experience (in soft skills, as well as in process improvement and strategy) take clients 80 per cent of the way. That could be only 80 per cent or a full 80 per cent, depending on your individual lens. There is a balance between the desire to reinvent the wheel (e.g., to tailor-make solutions) and to apply an “off-the-rack” approach. The responsibility for finding this balance is shared.
Shared Responsibility
People like me, who consult to industry, have to be ready to bring the tools of “good thinking” the rest of the way for clients. Eighty per cent won’t cut it. I will admit that this is difficult in large groups, but it is an area of continual focus in my client work.
The supply chain is a perfect example of where those actually wrestling with complex problems can absorb the value from successes in other areas and functions.
- A services supply chain is different from a hard-goods supply chain, but there will be some relevance from one to the other.
- There are similarities between the not-for-profit and for-profit worlds.
- The Maritimes and the GTA are not completely different.
In the collision of business ideas and human beings, enabled through multiple communication touchpoints, there is a lot that can be termed “common sense” and “generic.” As a friend of mine likes to say, “until common sense becomes common practice there will be a lot of work for consultants.” I would like to add, “as long as they deliver on that 20 per cent!”This originally appeared in the May 2009 newsletter for the Canadian Supply Chain Sector Council (supplychaincanada.org)
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