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)
I was out with a friend this month who is embarking on a new phase of working life. (To be fair, he is embarking on a lot of new stuff: just moved, recently married, starting a new family… he even has a new haircut.) I was recounting some of my experiences moving back to Canada after working in Japan for several years. In such situations, through sheer necessity, one gets good at answering the question “What do you do?” This is a very portable skill and directly applies to working in cross-functional teams.
So, what do you do?
Sometimes roles can be clear in cross-functional groups. I was working with a client recently to organize a program evaluation meeting that was to include national-level, provincial and local representatives within the organization, as well as bringing in experts from education and training, volunteer management and technology support tools. Members are tasked with bringing insight from their unique perspectives. The hope is that a comprehensive review will bring about sustainable changes; this provides the answer to “Why are we here?”
“Why are you in this group/on this team?” is a question that is likely considered more than it is articulated. Proactively expressing your “expertise” can enable a group to function well together. Imagine if a project team started off with a series of self-proclamations like:
- “I am here because of my product expertise.” (from Product Development)
- “I am not here to provide input; I am here so that we know where the decisions came from.” (from Marketing)
- “I am here to say ‘No’ so that we out forward solid proposals to senior management.” (from Finance)
- “I am here to reinforce the point that forecasting is impossible.” (from Sales)
- “I am here because I have not been involved before and I have the courage to ask stupid questions.” (from the Intern)
Clarity on roles (with oneself, as well as with others) increases the chance that any conflict can remain productive and task oriented. In the real world, some people’s “roles” may seem more like:
- “I am here to get attention.”
- “I am here because I already have the answer.”
- “I am here so that I can say ‘I told you so’ in about 3 months.”
Fine lines
It can all sound very much like a wanna-be self-help meeting: “Hello, my name is Chris, and I am here to defend the client interests.” Without being corny about it, I will suggest that clarity on “our job” and “my job” can help a cross-functional team to fully function. I have found it useful to tell clients to simply state, “I wouldn’t be doing my job if I didn’t ask [for example, ‘is that really the best way to provide value to our clients?’ or some other potentially challenging question.]”
Many of the lines between “helpful and hurtful” or between “team-oriented and affected” come down to relationship equity and benefit of the doubt, which needs to be fostered. Assertiveness over your or the group’s role can help to keep you on this side of that line.
“This column is here to provide insight on issues that can create distracting interpersonal noise.”
THIS ORIGINALLY APPEARED IN THE NEWSLETTER FOR THE CANADIAN SUPPLY CHAIN SECTOR COUNCIL (www.supplychaincanada.org).
One of my children got an invitation to a birthday party this week. On the invitation was a handwritten addition indicating that my child was invited to sleep-over after that party. We later confirmed that this “after party” was a bit more “exclusive” than that described on the invitation.
You could tell me to lighten up, but I have a fundamental issue with this approach. I envision the conversation (because I have first-hand experience) between the parent and the child.
- Child: “I want to have sleep over for my birthday.”
- Parent: “Great. How many kids are you planning on inviting?”
- Child: “Let me see…. (verbal list of names each prompting a finger to extend). Twelve.”
- Parent: “You can’t have that many kids to sleep over.”
I can understand the motivation to sidestep a conflict/tempter tantrum. Such forks in the road exist. You can invite twelve people, OR you can have a sleepover. You can’t do both.
But hold on a second. In the spirit of Negotiating… What if we invite a large group of kids to the party, and then keep a select few back to sleepover. Is that not a good compromise? Out of the box, eh?
Not to make too much of a big deal out of this, but I think it is unhealthy to fail to select (or fail to make the child select) “one of the other” from the above options. If pushed to further explain, which I was, my argument extends to the quality of the first party. How much fun can it be if the “sleep-over group” has to keep suppress the “wink-wink-nudge-nudge” temptation of the after party? Isn’t there an inherent risk that the “go-home group” will learn about the after party and feel (rightfully so) like a second-tier friend?
This specific trade-off approaches an ethical question. Select between the two party streams OR do both and be deceitful to at least half of your “friends.” (This is all happening in the context on an ongoing conversation with some fellow Schulich faculty on ethics and decision making among business school students. E.G. Is it wrong to gain competitive advantage through exploiting a legal loophole?)
So, yes, you can “have your cake and sleepover, too.” You may find that this type of “compromise” ends up compromising the integrity of those involved. The risk-return will be an individual call, but I can certainly tell you I will take on a conflict with my child to avoid treading into ethically murky waters.
We are all familiar with the adage: “Don’t bring me problems, bring me solutions.” If this is your mantra, please accept my apologies. I am actively working to change that mindset—in a supply chain function—one evening at a time. I am recently involved in delivering training for the Supply Chain Awareness Program for Employment (SCAPE), whereby people with international training and experience can receive courses toward designations recognized in Canada.
In the overview material and cases, much of the focus is on tools and frameworks to identify problems… not just our problems, but within and beyond the organization (e.g. from supplier’s supplier to customer’s customer). The level of complexity and the breadth of the analysis pretty much ensure a grab bag of problems. In my experience working in various industries and countries, a different perspective (e.g. international) provides an increased ability to see “new” problems. Stopping every time to ponder solutions would be paralysing.
I am not at all suggesting that solutions be ignored. The better solutions to these complex problems demand participation from other stakeholders, who may require some help understanding the importance of the problem. Credibility and flexibility are necessary ingredients in this communication. The SCAPE training at Micro Skills will provide part of the credibility, as will Canadian work experience as it accumulates. Flexibility is addressed through the material in “translating” problems to different audiences. We tend to practice the following languages:
- Profit impact on dollars tied up in, for example, inventory (business language);
- Customer service impact of slowdowns and delays (sales language);
- Risk impact of uncertain forecasting (finance language); etc.
The plan is to involve all the necessary people to contribute to a better sustainable solution that almost always involves complex trade-offs. One perspective will not deliver the insight required.
Rather than bring solutions with problems (or not bring problems because we can’t find the solutions on our own), the line should be “Bring me problems and a lists of potential collaborators!” I think that those with other language skills and experiences could be part of this shift.
THIS ORIGINALLY APPEARED IN THE MARCH NEWSLETTER FOR THE CANADIAN SUPPLY CHAIN SECTOR COUNCIL. www.supplychaincanada.org
This CAW/Chrysler/Fiat item is a great study of clashing negotiating strategies, and Ken Lewenza and C0. are very likely looking back instead of looking forward (which seems to be common with U.S. automakers). I confess that my perspective is shaped by this article in today’s Financial Post, a conservative (anti-union?) publication. For full disclosure, my education is heavily in business, and I teach in the MBA program at Schulich Business School.
If everyone has it in for the CAW, as Lewenza claims (”[the Canadian Government is] interfering in our negotiations [with Chrysler), then he needs to fight back with some pretty powerful evidence. The fundamental premise of the “other side’s” argument is that CAW workers are paid much more than Toyota and Honda workers, so the wages need to come down to competitive levels.
Lewenza challenges that argument directly (although it is at the very end of the article; damn right-wing editors!). He says that “Canadian executives at Toyota and Honda have described many times their strategy of essentially matching wages, pensions and core benefits to those paid in CAW-represented facilities.” So, I guess, it is just a shell game, and CAW workers and workers at Toyota and Honda are ALREADY paid the same wages, right? If that is the case, then there must be another reason that Chrysler is so unable to compete. Such as, no one buys the cars. This is not good news for CAW workers in Chrysler facilities.
This situation is a clear example of an entity (CAW) or at least a person (Ken Lewenza) so heavy with history that they cannot shed a combative/competitive mindset that has no place in competitive industries where stakeholdes (including government) need to work together to beat the real competition. I feel sorry for the people who are being mislead so badly by Mr. Lewenza. This will be a powerful lesson for organized labour.
You won’t need a link to find references to Ken Lewenza’s response to Fiat’s “take-it-or-leave-it” offer (on April 16, 2009). This story is moving quickly, so my thoughts may quickly be irrelevant. Mr. Lewenza cried foul that Fiat CEO Sergio Marchionne was not taking the time to “build the relationship” with Chrysler and its employees before embarking on this joint venture.
I am all about the “relationship” side of the business. There is a place for relationships in the Fiat/Chrysler landscape, and I think that Mr. Marchionne is familiar with the value of relationships, as well. I suspect, he has simply opted to put results first. If my guess is right, this is a strategic direction given that his company is operating in a fiercely competitive environment and cannot afford to make any concessions that are disproportionate to added value. I think that his shareholders (and business partners) would applaud that.
Relationships are absolutely necessary, but in some instances, it will have to be compromised. I think this is one of those situations. Maybe it is a dose of “tough love” to an entity who no longer has a competitive wage structure.
What happens when you get a deal that is too good? I think that we are trained to be suspicious of the “too good to be true”, but here are a couple of recent instances where there may be some excess sweetness: 1 – city workers in Toronto and 2 – Chrysler Canada’s employees. Both of these deals were conceivably negotiated in good faith, so a deal is a deal, right?
Would you really give back what you won?
Topping the list of “don’t even go there” would be the danger of setting a precedent: “they” will take more or give less in the future. I might, however, suggest that mutual interests over the long-term could prevail if these “winners” concede to the “losers” so that there is a bigger “win” (or smaller loss) for both parties.
In both instances there is a sustainability argument to be made. Many people in very different positions have a stake in both the City of Toronto and Chrysler (and other automotive entities) surviving, succeeding and flourishing. The competition in the auto sector better illustrates how the “take what you can” attitude is misplaced.
When the going is good you don’t notice (can handle?) an extra load, so a company/organization can carry more than its share. When competition ramps up to the extent where “placing near the top” is no longer good enough, everybody has a responsibility to work together to “win.” If winning the marathon really matters, non ones cares that you finished in the top ten while carrying your kids on your back.
Chrysler and company (including unionized workers) should be focussed on proving that the current problems are not due to producing cars no one wants. They will need to be unburdened to prove that point. Once proven, let them carry as much as they can. If they can’t live the balance of provide fair wages and remain competitive, they should not be in business. Workers need to look at “fair” in the context of the bigger picture.
And I would not be too concerned about the precedents. One of the few certainties today appears to be that we are living in “unprecedented times.” Desperate times may call for collaborative measures.
In keeping with its mandate to “bring together partners,” the Canadian Supply Chain Sector Council together with the Association for Canadian Community Colleges, spearheaded a gathering of self-identified stakeholders in training and certification related to supply chain. Like most “stakeholder” gatherings, the room included representatives from competing organizations. In this case, that meant representatives from “rival” colleges and institutions, as well as from bodies offering “competing” certifications. The potential value of such gatherings comes in identifying shared interests and in enabling better solutions.
My exposure to this sector is largely through such stakeholder gatherings. Cross-functional (or cross-associational) gatherings in “supply chain” often generate discussion around “what is supply chain, anyway?” The opportunity to clarify the function and value of the sector has the potential to unite the many stakeholders. All of a sudden, there is a pan-sector identity (e.g., in-group) whose job it is to convey that value proposition to non-sector (e.g., out-group) stakeholders, who include employers, job-seekers, students, their parents, other functional areas of the business, etc., etc. We all win when these “others” realize the strategic importance and potential of supply chain… and they win, too!
Interaction between competing forces also helps everyone, by fostering good-old differentiation. For colleges, associations and “others”, this is positive – and necessary – because competitive markets don’t tolerate a “six-of-one” and “half-dozen-of-the-other” split for long. Contact and dialogue help to define core competencies and clear the way for collaboration that helps the sector overall.
As a related example, I worked in media sales where we had one main competitor. At an ad-agency function, I recall turning a corner and coming face-to-face with my “rival account manager” who was talking to our mutual client. Once our poor client realized that she could not avoid acknowledging us to each other, she betrayed the look of someone forced between former spouses from an acrimonious marriage. Shortly after I left that company, the “six” and “half-dozen” merged into one company. Strange how competition forces new ways of working.
It is very easy to pay lip service to collaboration and looking for “win-win” solutions to today’s complex problems. Examples are rarer in reality, but I came across one recently whereby rival conference organizers found they both targeted events in Western Canada that addressed the environmental implications of supply chain. Isn’t it fitting that the two are co-branding their events to spur discussion on the opportunities for supply chain and corporate social responsibility to deliver positive impact? Check out “Supply Chains and the Environment,” to take place on May 25 and 26 in Calgary.
The lines between friends and enemies may be blurring. There is value to be had and created in stakeholder gatherings that help us look for intersecting interests. I guess it takes a sector council to foster that dialogue.
THIS ORIGINALLY APPEARED IN THE FEBRUARY NEWSLETTER FOR THE CANADIAN SUPPLY CHAIN SECTOR COUNCIL (www.supplychaincanada.org).
I have written before about my involvement with the facilitation practice of Management Advisory Services, a volunteer consulting organization. (Visit the link for more information. To my paying clients: Let’s just say, you don’t qualify for these services, OK?) Similar to my other consulting work, in this volunteer role I help groups to either distill ideas or to effectively share their ideas… and sometimes both. The question at the heart of all of it is: Where is the value? Who sees it? Who needs help seeing what is there?
Over the past couple of weeks, I worked with a client who, not surprisingly, operates in a multiple stakeholder environment, where value comes from tapping into people’s time and energy, as much as, from funding and donations. To this agency’s credit, they were able to gather an impressive cross-section of perspectives to share and discuss ideas. (Homemade food was likely part of their recipe for success!) Ideas flew back and forth, and at least one occasion each of the two evenings, one of the “tougher” stakeholders occupied the floor momentarily.
The rosy collaborative vibe took a temporary back seat, and I know that at least a few people realized the importance of the critical/challenging insight. Those who were really listening could see the road map of the challenges in dealing with that particular constituency. Nobody likes a pothole, but it is certainly nicer to be able to see them clearly! The real danger in these situations is succumbing (like any human could) to “turning off” people who have turned you off.
To once again beat the drum on the power of effective conflict, last week I had a great conversation with a colleague who has similar passions to mine, though different orientations and approaches. Despite what our fellow patrons in the adjacent booth (@ The Abbott on Yonge Street) may have thought, we were not fighting! As tempting as it is to counter and explain yourself, good stuff comes from taking in the critique of others, which I think I was able to do. From my side, I left the conversation enriched (Again, the Ploughman’s Lunch may have had something to do with that!) and better prepared to move my ideas forward.
I would also assert that strong working relationships increase the chances of producing that value; they provide a foundation that won’t get shaky as easily. And, if you ask me, those relationships are going to need at least some face-time to materialize.
You will see that I have started using Twitter (look to the right side of the top page). In the era of fighting for attention (a stubbornly scarce resource), hitting the window of opportunity with valuable insight can seem like bullseyeing that ventilation shaft on the Death Star (”use the force, Luke.”). This is where I think Twitter fits.
My plan is to restrict my twits (?) to comments on customer service with, as advertised, a wide definition of “customer.” Some interactions create an opportunity to move the relationship needle in your favour, or hold it steady against a negative pull. I plan to call out excellence and shortcomings. Follow if you like; we will both see where it goes.
Longer discussions and stories (conceivably for those prepared to invest more attention) will stay on this blog. Things like this:
I dearly hope that business models that rely on high switching costs are on the wane. (See this article summary from HBR.) I currently have insurance relationships with two different Canadian banks (car and house); the renewal rates are weeks apart. Every year, I am reminded by each of the bundling discount that I could receive by increasing the number of products, but neither makes it easy for me to do anything but renew what I have… and I never remember until after automatic renewal notice! (Talk about scarce attention!)
Good for them for deriving value from my inability to keep track of the dates! The downside, I would argue, is that my home mortgage is currently with a third major back (in the current climate, this may not or may not be desireable business for a bank!). My experiences with small-ticket insurance items is such that I won’t entertain moving my business to either of the other two when the mortgage comes up for renewal (and that date is in my calendar!).
Perhaps the impossibility of maintaining customer equity when you have diversified products and an old-school model will drive more customer-centric approaches… but maybe not. Hey, they may not even miss me.
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