One Example: Chips in Cars Car manufacturers use computer chips for many functions like navigation and safety features. But due to the pandemic and other factors, there’s a shortage of computer chips, which has caused production cuts and delays. This has hurt car sales and revenue. To deal with this, Read more…
Being mindful of who we are hiring gives the right signals to employees, investors and clients.How Successful Companies Lose Their Edge 4️⃣ Has the rapid pace of hiring led to bad hires?Especially at the manager and director levels. There is a lack of talent management and retention.High variation in managerial Read more…
𝗫𝗲𝗿𝗼𝘅Did you know they were the first to invent the PC?Unfortunately, the management thought going digital would be too expensive and they never bothered to exploit the opportunities they had. 𝗬𝗮𝗵𝗼𝗼Yahoo was one of the main players in the online advertising market. The company decided to focus more on becoming Read more…
Speak up when you see ‘being safe’ become the main strategy rather than ‘serve your customer’. How Successful companies loose their edge 2️⃣ Do we interpret “respect each other” as finding a way to agree with everyone’s opinion? This leads to difficulty in making decisions. Do we prioritise predictability with minimal Read more…
The vast majority of the elements of a system are non-constraints. Ignoring a non-constraint impacts the constraint. This results in the performance of the entire system going bad. The maxim “More is better” is correct only for the constraints. It is NOT correct for the non-constraints. For the non-constraints, “more is better” Read more…
Stockouts can be defined as the unavailability of specific items or products at the point of purchase when the customer is ready to buy. Many retailers underestimate the cost of stockout by as much as 300%. Focusing on increasing availability of your merchandise can be the single biggest leverage for a Read more…
The focus of the traditional supply chain organization is cost management. Saving money does not drive value. Improving cost also does not necessarily improve margin. Holistic organizational thinking is a marked departure from traditional functional thinking, shifting the need for new forms of analytics and reporting. For example, today, while most organizations Read more…
Many managers are reluctant to make valid demands from their team members. To avoid having to impose new requirements on subordinates, a manager may decide to take on the job himself. He reassures himself that his people are already overloaded or that they lack some qualification that he possesses.At the Read more…
Companies aiming for change concentrate on “task alignment” – reorganizing employee roles, responsibilities, and relationships to solve specific business problems. Task alignment is easiest in small units – a plant, department, or business unit- where goals and tasks are clearly defined. Thus, the chief problem with corporate change is how Read more…
In our financial statements, inventory appears on the asset column. However, too much inventory actually blocks flow and sales. So how much inventory is really required? The lowest amount of inventory that can bring in satisfied customers.The way to know if your definition of ‘the lowest amount’ is to compare Read more…