Compete. Dr. Jeffrey Howe CEO Fullerton Companies

Transcription

1 Leading to Compete Dr. Jeffrey Howe CEO Fullerton Companies

2 Contents 1. The NEW customer 2. Status of the Industry 3. Leadership is about PEOPLE 4. Mental Models 5. Shared Vision 6. Personal Mastery 7. Team Learning 8. Whole Systems Thinking

3 1. What is the Customer Like Today?

4 High Expectations Drive-thru Mentality Internet access to information Personalization of service Technological improvements to quality

5 2. What is the status of the Wood Products Industry?

6 Breakpoint Theory Forming Norming Storming G R O W T H Forming Norming Storming TIME Source: Breakpoint and Beyond, by George Land and Beth Jarman, 1992

7 The Industry is Mature Products are in the Mature and/or Decline Phase of the Product Life Cycle (PLC) Businesses Have Been Focusing on Lower Unit Cost for Years Support Organizations have Developed new ways to be More Efficient Organizations are Identifying Ways to Increase the Efficiency of Efficiency Systems!

8 What Does Moving to the Storming Phase Mean for Wood Products Firms?

9 3. It s s all about People! Relationships - close linkages are keys Clusters - group strengths Sharing resources - lower costs Channel management - lowest total cost Understanding the public and, most importantly, the customer

10 Implications Can t t remain isolated & succeed Individuals anywhere can do business with people anywhere A focus on cost savings alone won t t work The KEY is: What are you selling versus what is the customer buying? HUGE opportunities for design-based sales

11 So What Can My Company Do?

12 Leadership thru change about PEOPLE!! Mental Models Shared Vision Personal Mastery Team Learning Whole Systems Thinking Adapted From: The Fifth Discipline by Peter Senge, 1990

13 4. Mental Models

14 Insanity is doing the same thing, over and over again, and expecting different results! -Rudyard Kipling

15 Look For BIG Changes!! Think In Terms Of 10% Minimum, And 30% And 50% Goals Are Better!

16 Lead Times In Hours Or Days, Not Weeks Or Even Months!

17 Greater Choice And Flexibility (Customization) Not One Size Fits All

18 Defined As: More Sizes More Colors More Shapes Specialized Packaging Job Lot Shipments Customer or Manufacturing Line Direct Shipments

19 Lowest Total Cost! Not Lowest Unit Cost!

20 Basically What Would Make Your Customer s Life Better, Easier, More Profitable

21 You Offer Your Customer: The EXACT Product They Need Exactly At the Time They Need It For the Exact Price They Need To Be Successful Demonstrate This To Your Customers Both Conceptually, and Mathematically: SHOW THEM THE MATH!!

22 The Tools are Commonplace! Applying LEAN Mfg Techniques, Or At Least Doing - Time Studies Work Flow Studies Reviewing Your Inventory, And You MUST Implement Improvements Quickly And Often!!!

23 Better Can Be Defined As: Consistent Quality ISO Certified Zero Rejects Eliminate Customer s s Receiving Quality Inspections Or perhaps..

24 I m m not saying this is EZ!! Because many of your customers have the same mental models especially industrial accounts.

25 What IF your Customer Doesn t t Care???????

26 If your Customer Doesn t t Care about the value you add either you aren t really adding value or you Have the WRONG customer!!

27 How Are You Pricing Your Products?

28 Research Suggests: U.S. Companies Tend To Price Commodity Items Too High And Specialty Items Too Low!!

29 This is NOT Trivial!! Research Suggests Markets Will Often Accept A 3-500% Increase In Specialty Pricing When Accompanied By 3-7% Reduction In Commodity Pricing!!

30 Again, Do The Math! If 90% Of Your Sales Are Commodity And You Reduce Prices By 3%, And You Simply Increase Your Specialty Prices By 50%, It s s A Net INCREASE In Revenues Of Over 2%

31 5. Shared Vision

32 Visions are NOT Fluff Visions guide decisions Visions are about destinations Visions arise from choices

33 Visions are guides Who are we (wood products or furniture)? How do we act (culture)? What s s important? ($$ or %%?)

34 Visions are about destinations Where are we going? The biggest? The best?

35 Visions are about making choices How will you compete? Low-cost? Customer Service? Innovation? What is your market? What is your position in the market? Adapted From: Porter s Competitive Strategies

36 6. Personal Mastery

37 Get the Right People On the Bus! Hire the best Train, train, train Nurture creativity Welcome conflict as a source of creativity and energy (avoid the Wonder Bread syndrome ) Adapted From: Good to Great by Jim Collins

38 7. Team Learning

39 Foster and Nurture People Learning to work as a team Foster a Learning Organization Teach TEAM Develop interpersonal skills of individuals and teams Organize, incent and reward team behavior

40 8. Develop a Whole Systems Approach

41 Whole Systems: Internal Can the top 20% of your organization describe in detail your org chart?? Is there a unique individual responsible for every top priority? Do you know what Organizational Development is??

42 Whole Systems: External Channel Management VMI Lowest Total Cost What is the ideal situation (from the customer s s point of view)? Value Mapping

43 The End Result From All This?

44 To Make change, you must do something To Make dramatic different! change, you must do something dramatically different!