It’s the mantra of excellence for process engineering and supply chains everywhere: right product, right place, at the right time. How could it not fix all that ails any organization, be they financial problems, customer service problems, quality problems, or any other type of problem? If there were only a broad consensus on the definition of “right,” things would be easier. In instances where “right” is not perfectly clear to all involved, there is an opportunity for a conversation (or negotiation). The adversarial nature of such interactions can cause them to consume more resources than necessary or can mean the conversations never even happen. It is easy to see how these “battles” arise.
Are you picking your battles?
By definition, those working in supply chain are “caught in the middle” between two nodes in the chain. When this idea of “right” becomes a struggle between, for example, consistency and timeliness (e.g. I don’t need it right, I need it on Tuesday), you can make a judgment call as to which of those positions is more “negotiable.” “The boss said Tuesday,” is an understandable piece of evidence to introduce to the consistency camp. But is “Tuesday” reasonable? Is the consequence of missing the deadline worth the consequence of breaking with consistency? That is a conversation that may be difficult to broach, especially if “The Boss” has little time or attention to expend. Engaging rather than accommodating may bring about a more informed decision and direction. A solid base of relationship capital—with all parties—can help move this to a collaborative conversation rather than a battle of “The boss said” vs. “That is crazy!”
Are battles picked for you?
In a competitive environment, whether trying to win business in the marketplace or win resources internally, it is easy to fall into the mindset of a win-lose approach that creates adversaries rather than collaborators. It is worth asking oneself, “Am I the one who is making this adversarial? Can I see it a different way?” It is equally beneficial to ask, “Have we been pitted against each other?” Well-intentioned people may have created a reward system (formal or informal) that sets up the interaction as a zero-sum game. (e.g. on time or on budget?) If you have different measures of success, it is another instance of right vs. right. Is there a common “right” that makes sense to both of you (e.g. customer satisfaction)? If so, you are now allies in engaging to have better measures in place for next time.
So…
The “right” actions and initiatives can come from many places, but those originating from a supply chain function may carry the risk of being seen as a hindrance and not a help. It takes a deft appreciation of the overriding narrative to understand which actions will be most effective and what conversations (up, down and across) will enable implementation with the least amount of resistance.
One big advantage of supply chain is the end-to-end view that this discipline affords. In his novel The Ground Beneath Her Feet, Salman Rushdie recounts, “The only people that see the whole picture are those who step out of the frame.” We are all in a frame, but I think that those in supply chain have one of the wider ones going. This can help them see the more wide-reaching “right” way to do things. Sensitivity and skills in collaborating will help.
THIS ORIGINALLY APPEARED IN THE NEWSLETTER FOR THE CANADIAN SUPPLY CHAIN SECTOR COUNCIL – Oct. 2011.
This week in the Globe and Mail, Rita Trichur shared details from an in-class exercise conducted by Prof. Ariff Kachra at Ivey Business School (University of Western Ontario). In short, as I understand it, the students were given an opportunity to pay “tips” in order to access additional value from the professor in the form of extra class work and recommendations for jobs. The not-so-shocking denouement is that he was using this as an exercise to prove a point in class.
The more shocking fact,to me, was that apparently several students actually paid money. I love the exercise in that it forces students to make a decision, which should be the activity that MBA education helps. What the description of the article misses (although this may have been part of the class debrief) is the ethics involved in that decision. Value distribution could be one point of this exercise, but what does it say about the students who were prepared to pay money for additional help with the course material or for a positive job recommendation.
Additional support for course work can take many forms from hiring a tutor to buying last year’s tests. I am not sure where the ethical line is exactly, but I will suggest that paying a professor cash in order to attend an extra tutorial is on the wrong side of that line. I will say the same for cash for recommendations (but the recommending function of linkedin could be a real accelerant for that line of business!).
I would hope that in addition to Prof. Kachra’s intended lessons, the students who paid him the money carried around a sinking feeling in their respective stomachs. I would hope that feeling came before the “reveal,” but reading this story makes me wonder two things (1) can you actually teach ethics? and (2) did the students realize that, in real life, the “reveal” could be whole lot messier?
The monthly mailer from APICS brought my attention to a panel hosted by SAP at the end of September that touched on how supply-chain related activities can lead to business sustainability and, more importantly, can reduce risk. One of the comments on the website of the original article suggests that this is not “new news,” and goes on to share the commentator’s own presentation from 8 years prior conveying a similar risk-reduction message.
I concur that stating “It’s not about going green, it’s about making money and minimizing risk” smacks of motherhood, but the clarification this from a strategy level will quickly become a negotiation about trade-offs involved. For simplicity sake, let’s look at an industry that makes no pretense in the “doing good” department: contraband cigarettes.
Tom Blackwell’s recent series in the National Post exposes a picture of a complex supply chain and the risks taken on by some of the parties. Beyond the tobacco farmers as suppliers of raw materials, the industry needs paper and filters. Suppliers would be smart to engage their buyers in a discussion in order to fully understand the risk and return trade-offs. The discussion should address the risks involved with supplying illegal factories, apparently located on First Nation reserves. The balance of risks (of being associated with a contraband industry) with return (of additional sales) can become a business decision beyond its ethical implications.
You can see how this becomes an internal negotiation, as well, and provides an opportunity to clarify what is acceptable by multiple measures (e.g. what do we mean by sustainable, ethical or other measures?). Avoiding these negotiations leaves a larger degree of risk than necessary. If/when a crisis breaks regarding untoward supplier relationships, the communications and public affairs department may be stuck with: “We never bothered to ask” as a defense. This may not be acceptable to stakeholders on grounds ranging from ethics to stock price.
Gaps between “doing” and “saying” create risks that need to be acknowledged, and then managed and reduced. Treating these situations as a collaborative negotiation (internally and externally) can assist in this process. Not every industry operates in such proximity to ethical and legal risks. Nonetheless, the approach is similar. Sustainable business can offer some common ground from which to build a conversation/negotiation about shared value. A first step is to identify the different aspects of sustainability and how they are prioritized. It will be worth the effort.
Summer can give you pause to reflect on actions and decisions of the past…and question choices you made. One important decision in addressing some of the tension of collaborative environments is whether or not to involve (or use) others in conversations. Replay a situation as if the decision depended on a coin toss: Heads, enlist an agent; Tails, go it alone.
The Case for Heads: Buffer for Cultural Differences
In stakeholder discussions with my classes and my clients, we often delve into cross-cultural dimensions that can reflect in different values and motivations. Doing my undergrad in business in the early 90s, cross-cultural management pretty much meant dealing with Japan. Now, in this country – and specifically in supply chain – you likely encounter people from different cultural upbringings several times a day.
To deal with cross-cultural issues, I always ask those with firsthand experiences to share their insight. It is safer to address some prickly stereotypes from the “inside.” This particular dimension of in-group/out-group dynamics creates an opportunity to buffer cultural disconnects (including clashing corporate cultures) by involving someone who can see both sides, and, perhaps more importantly, is seen to be able to see both sides.
Call them “agents” or buffers, due to experience of circumstance, using people in this way can go a long way to smoothing some natural tensions, as well as offering translations, including when “maybe” really means “no,” as can be the case with the Japanese culture.
The Case for Tails: Fight Your Own Fight
One of the case studies that I used this summer in my negotiation class involved a classic showdown between a beleaguered airline and its union. In a recent discussion, a student, who was sitting with me to “negotiate” a portion of the final grade, reiterated his position that management should have used a third-party mediator. The rationale being: no emotions, just facts. It really is simple, or at least was in the student’s mind.
If you have ever been “buffered” in this way, it can actually set off an entire new range of emotions that reflect frustration in not being able to make a case directly and suspicion that the “mediator” (or agent) will not accurately reflect your interests. I wonder, in retrospect, how this student would have reacted if I had appointed a third party to hear his case for an improved grade.
Many times you have to “fight your own fights,” if not for control of the situation then to establish yourself for this and future interactions. Relationships matter.
So what?
The interpersonal side of collaboration can be exceedingly complex. That said, there are some instances where the decisions are clear (e.g., work through someone or address a situation directly). Context can give you an idea, but rarely do we get certainty. Experimenting and taking chances (coin tossing?) can create situations that you can reflect upon and learn from.
Happy reflecting!
I started off a letter to the editor (for the May 31 National Post story, Winner would lose at Ottawa soccer league) with the following: “I think there is a fundamental belief in some that better rules make better situations.”
(See full published letter here, or in the print edition of Wed. June 2.)
Those running this kids’ soccer league saw the downside of a blowout game and constructed a rule to penalize a team (with a loss) if their margin of victory was greater than 5 goals. The belief, presumably, is that winning by more than 5 goals is unsporstmanlike. I think I understand the motivation, but I question the “rules-based” approach to this. If the league had a culture of sportsmanlike conduct, the rule is redundant. If the league lacks sportsmanship, rules won’t change that (e.g. if humiliating the opposition is a motivation, there are ways to do it outside of running up the score).
In my consulting work, I get to see a lot of attempts to introduce rules that make for better working situations by, for example, instilling such values as “respect” or “teamwork.” How such values play out goes straight to the corporate culture. Does “respect” mean “don’t waste each others time,” or does it mean “don’t create any tension here”? Does “teamwork” mean “willingly involve others in what you are going” or does it mean “attend the summer company BBQ”?
Part of my consulting work is helping clients realize the culture they have, and envision the culture they want. Sometimes, we find the two are surprisingly close together. Other times, there is a considerable amount of revelation about the current state, and some clear decisions for leadership in forming the desired state (e.g. what do we mean by “respect”?).
Policies can play a part of the migration to a “better situation,” but they can also be extremely counterproductive:
“I know that meeting was a waste of time, but we agreed that one of our rules was ‘no interrupting in meeting,’ right?”
Policy has a clear place. I fundamentally question its use as the primary means of shaping cultural dimensions. You can’t regulate respect in the office, or sportsmanship on the field. If either are there, everyone knows it. If these are lacking, it is important to be clear about what you have, and be smart about how you make the shift.
Let’s grant Francois Houle (Univ of Ottawa) his presumed wish to go back in time to before he hit send on the e-mail warning to Ann Coulter this week. We will weigh the decision based on some negotiation theory.
First up are M. Houle’s interests, including the overriding objective of the school. (e.g. promote constructive educational dialogue). Determining the latter will be a conversation given the published University “mission” statement, which is not clear enough to be workable.
Taking the overall goal into account with other interests (e.g. increase Ottawa U’s global reputation: mission accomplished on that one!) M. Houle would ask himself if bringing Ann Coulter to the university serves his purposes without compromising the overall goal. (There are some serious assumptions made before ticking “yes” to this, but let’s make them.)
M. Houle them selects between different negotiation strategies based on (1 or X-axis) the importance of demonstrable outcomes, and (2 or y-axis) the importance of the ongoing relationship with the other party. This becomes a 2×2 grid, across the axes of “low” to “high” for each dimension; the strategies are AVOID (low and low), ACCOMMODATE (relationship trumps outcome), COMPETE (outcome trumps relationship) and COLLABORATE (high and high). To oversimplify, we will call the single demonstrable outcome “a safe campus event” and the relationship is, obviously, with Ann Coulter and by association.
By sending his warning letter to Ann Coulter, M. Houle was executing on a COMPETITIVE strategy, which marks a strategic error. If you can’t have a safe event with her there, don’t invite her (AVOID). If you want to try to work with her to ensure the discourse remains constructive and educational, give her a phone call: dialogue is conducive–and necessary–to collaboration. Competitive tactics (e.g. strongly worded and public letters) invite retribution. Find her response on her blog, in public, for all to see.
Oh, the difference made by little things. Had M. Houle engaged Ms. Coulter in private dialogue and raised his concerns and hopes for, for example, a safe event, this would play out differently and much more positively for the University. Had she not been interested in this kind of discussion and responded in a competitive/combative manner, he could move to “AVOID” and be done with it.
We will never know how receptive Ms. Coulter would have been to such a phone call prior to the event. I wonder if such conversations took place in Calgary. We can’t know, because such discussions are kept necessarily informal and non-public, which is where such collaboration sometimes has it’s best chance.
Cynicism can be a very destructive force, and can be particularly damaging to the trust/goodwill/benefit-of-the-doubt that seems to help collaboration unfold. I might suggest that perceived hypocrisy is the very best fertilizer for those cynical weeds in the collaborative lawn of an intra- on inter-corporate culture.
Claiming hypocrisy appears to be a safe place from which to launch a critical attack. Much of the criticisms of the recent Copenhagen climate summit point to a disconnect between curbing greenhouse emissions and jetting off to global conferences, then taking limousines to the hotel.
Al Gore received the same treatment for living in a mansion.
David Suzuki got it for using a tour bus to move his small entourage around Canada.
On a smaller scale, in the set-up to some client work I did on effective meeting behaviours, the senior manager showed up a few minutes late and then began chastising the lack of respect for people’s time that hampered effectiveness.
In my role as a trainer/instructor, I have an opportunity to instill the importance of “walking the talk” when engaging hostile stakeholder groups, or even members of a cross-functional team. Most of the time clients, students and attendees can’t tell if I actually walk my talk. (Recall the cynical adage: If you can’t do, teach.)
Note: A colleague of mine, who also teaches negotiations found a neat way around the issue: “It’s not how good a negotiator I am; it’s how good are you after I have taught you.”
There are two situations where those watching, I think, have an opportunity to really assess my walk-to-talk ratio.
1 – Training presentation skills: Similar to writing a book on writing skills, leading a training session on “presenting” always makes me feel naked. During one such session, I found the projector frozen (having spent a December night in the trunk of a car). I am certain the audience was quietly thinking, “Wow! What is he going to do now?” and expecting me to have the right answer, (which is get on with the content; you will find the projector works fine once it is warmed up!)
2 – Negotiating grades for a Negotiation class: Students have an option to analyze and strategize their negotiation with me for a final mark in my MBA course. I don’t feel as naked in these situations because of the obvious power imbalance.
Either of these situations provides clear opportunities to spot the “do as I say, not as I do” moments. I can’t say that I have been called out much at all. One gentleman approached me after a training session with a hypocrisy sighting: “You told us you tend to ‘beg forgiveness over ask permission,’ but then you kept asking us if it was OK to move on.”
Hmmm. Needless to say, no “participation” marks were on the line this time.
When under scrutiny, I think that credibility can become very solid very quickly if the talk and walk line up. Authenticity is a strong asset in managing and leading change from any level of an organization. I firmly believe that those under the most scrutiny (from strong out-group camps), have a fighting chance to gain/regain credibility when they “walk their talk” as much as possible. This means that if I am not flawless, I can’t hold you to a flawless standard… that would be hypocritical, which would make you cynical, which limits our ability to collaborate.
No one is bullet proof. It is far too difficult to fake it. Lead with your strengths, and find others to cover your weaknesses.
Late in the semester takes on a degree of urgency for those involved in education on either side of the chalk. Similar to the wind down of a sports season, things count more and time runs short. Not surprisingly, the final project for my negotiations class entails analyzing a real situation to assess strategy and implementation of the parties involved. There is a timeliness and relevance that comes with looking at situations that are currently unfolding, and my classes have been blessed over the last bit:
- Fall 2008 – York University unionized workers strike.
Note: Neither Schulich (business) or Osgoode (law) were affected directly. All appreciated the irony of crossing a picket line to teach a class on Negotiating.
- Winter 2009 – Auto sector woes, which were welcome in the fall, continue.
Note: There is also a nice little transit strike in Ottawa.
- Summer 2009 – Toronto City outdoor and daycare workers strike
Note: Toronto City Counsellor Karen Stintz guest shared perspectives on this in class this semester.
- Fall 2009 – Cable companies and TV broadcasters
Note: Just in time for Fall 2009, CRTC Chair Konrad Von Finckenstein chastised the disputing cable and broadcasting companies with:
“You need each other; I don’t understand why you can’t negotiate.”
A final report gift, just in time for Christmas.
- Winter 2010 – Community College Teachers vs. Management
Note: As an instructor at Humber I was able to vote in this one. Who on Earth thinks that teaching is a profession in which to get rich?!
The thread through all of these situations appears to be “reacting to a business model that’s under strain.” Whether its wage dissatisfaction or margin envy, those involved, who really do need each other, would do well to hear Von Finckenstein’s words.
Complex situations? Requiring new approaches? This will ring familiar to those working in supply chain. Collaboration is easy to talk about and, theoretically, we can see the opportunity for creating/protecting value. The work comes in effectively executing on that mindset to address real challenges.
The competitive reaction appears to be automatic, especially if we are taking away things that people have “always had” (e.g. banked sick days) or have come to expect (3 – 5% year-on-year wage increase). The rightful target for competitive behaviour is often outside this relationship.
This means that even though it makes perfect sense to implement your cost-saving initiative, if someone is losing something, expect some push back. Positioning energy toward understanding the problem (hopefully a shared problem) is the most effective interaction. No situation is too small for a strategic look, which could start conversations toward some fixes.
En route to a meeting this morning, I found myself listening to CBC Radio One’s The Current and a discussion of flu preventation/pandemic preparedness. Today’s discussion explored mandating flu vaccines for health care workers. One expert, Dr. Alison McGeer, the Director of Infection Control at Mount Sinai hospital in Toronto, makes the very general comment, “Nobody likes to be told what to do.” As it turns out, this may be the biggest issue in play for this particular discussion.
Complementing Dr. McGeer’s insight, was New York State Health Commissioner, Dr. Richard Daines, whose state has adopted mandatory flu vaccinations for those in the system who come in regular contact with patients. The scientific evidence appears to be compelling, and demonstrates the correlation between vaccinated health care workers and reduced impact of flu on society. Neither doctor relied solely on the scientific evidence because both, I assume, realize they are up against a less rational “you can’t make me” reaction to the word “mandatory” (or “forced,” if you want stronger reactions).
Their counter arguments were excellent, and I am curious whether or not this came through media training, or simply understanding how to diffuse a particular line of questioning. Here are two examples of note (paraphrased):
Dr. McGeer, in response to concerns about limiting freedom of choice: “If you are a pilot with a heart condition, you are not given the choice to continue to fly.” (Score more points for the analogy!)
Dr. Baines, in response to concerns about over applying the rules: “We have reasonable people in our institutions; they will implement this in a reasonable way.”
In contrast, I think that the support given by Linda Haslam-Stroud is the President of the Ontario Nurses Association was very weak, suggesting the idea is good, but stressing that choice is important without much support. I am not sure if this was a lack of media training/preparation, or if it is simply much more difficult to support the “you can’t make me” side of this argument.
Interestingly, in New York and other areas that adopt this practice wholeheartedly, the people can retain their right to choose, with the choices being (1) get a vaccine and keep working, or (2) don’t get a vaccine and take some unpaid time off. So, you see, “you can’t make me” is indeed correct!
Spending scandals are always good news stories; the best, of course, involve taxpayer dollars. There seem to have been a lot of them lately. One such story this week, involves the RCMP planning to spend $200K on the leadership development of three of its officers. Interestingly, perhaps, the issue this twigged with me is “what do you charge for these type of services?”
I recently had a conversation with a former professor and colleague of mine a Schulich Business School, and we agreed that one of the biggest challenges for providers of professional services (like me!) is pricing. The formula involves trading time for money: hours or days spent either with the client or in preparation. Time spent on the latter has more latitude because, as my client, you won’t know exactly how much time I have spent preparing. I will suggest that in most cases there is a reasonable range, which is usually driven by the size of the project and the available budget. The resulting agreement ensures that you, as my client, get value for money and that I, as the provider, receive compensation that allows me to stay in business with a manageable schedule (e.g. not working 90 hours a week, 51.5 weeks a year).
A recurring stat in my profession is that employers spend on average $1200 per year per employee on training and development. Some will receive a much higher investment in their skills and abilities, and those are the ones that most providers like me hope to train. I am not sure of the upper limit of the reasonable range for an individual’s training allowance, but I think it is considerably south of “$200K for three people.”
What happens when the buyer fails to enact the “reasonable range”? The current levels of scrutiny on such spending, as well as the strong trends toward forced transparency, may eliminate these situations completely. Until that happens, individual ethics will dictate how much time makes into onto the invoice. Let’s call this “micro governance.” I think that it can cover for any governance/oversight that may be lacking in the always imperfect systems. Ethics or no ethics, for the sustainability of both sides, the reasonable range is the safest place to be. I hope we can continue to find it.
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