Has your supervisor ever asked you to compile information on an upcoming project? I’m 100% positive that everyone would answer “yes” to this question.

The big variable is the time element. You may be told that the information is needed by tomorrow morning, and yet you have multiple projects you’re working on that are all equally important. And these projects most likely have “now” or “tomorrow” deadlines.

Thus, the question arises, “What do you choose to do?”
Well like everyone else, I have my moments where I feel forced to give a “yes” or “no” answer. Most of the time, it’s a “yes.” Whether it is a friend in need or an employee who has way too many things on his or her desk to accomplish, we usually feel compelled to help.

While searching for an answer to the question, I found this post from the popular leadership blog Getting Things Done: Three Questions To Ask Yourself When Faced With Saying Yes Or No. This post is especially helpful because it emphasizes those times that you should shift priorities to help someone, and other times when you simply should say no.

Below are three questions from the post to help you make a decision on which direction to take:

• Do you have the capacity to say yes?
• If you say no, do you know how to articulate why effectively?
• Are you the right person for the job?

I would add a fourth question to this:

• Is there such thing as a “maybe” answer? In my opinion, there should never be a “maybe I can help you” moment, because this only confuses the other party and lacks good communication. To be effective, we must give a yes or no answer, knowing that we can accomplish the task, or that either we’re not the right person for the request, or too overwhelmed with other projects at the moment.

There you have it, folks: To help eliminate stress in your personal and work life, it is important to have the courage to tell someone that you can or cannot accomplish the goal they desire – whether it be your supervisor, employee, family member or friend.

Explaining why you can’t give 100% to what they are asking and offering different solutions will always be of help. In return, you’ll be respected for your honesty and forthrightness.   

Go!Go!Go!

Jim

More Resources 

Bold Leadership for Organizational Acceleration (now in eBook format!)

Organizational Excellence: Optimizing Speed and Productivity for Increased Shareholder Value

Putting out fires. Mending fences. Treading water.

We have a lot of ways to refer to “those types” of days at work. You know the ones –when we are so focused on a rapid-fire series of tasks that the day is over before we knew it had begun.

I often read articles about leadership that recommend you take a step back from your work and management activities to see the bigger picture. By doing this, you are able to look at the tasks you do each day and decide if you are still doing them in the right way, if some are still important to even do, and if you are still leading your team to do the best possible work they can do.

No doubt, it can be difficult to find the time to re-examine the context of your work.

There are many techniques that have been documented on how to accomplish this, especially because it is difficult to take time to do it consistently. I read about one technique recently in the Harvard Business Review that I thought was a particularly appropriate metaphor for this re-examination of context and smart leadership.

The author compares finding this time to creating “white space” in your schedule to contemplate and get perspective on management and overall strategy.  Click here to read the post, which also explains the benefits of scheduling white space.

What was especially interesting to me about this concept is that in order to capture white space, a leader needs to take some time to be alone instead of with his or her team.

Do you think you could consistently schedule and keep white space time? And if you are already following this practice, how do you make it unique to your situation or work?

Go!Go!Go!

More Resources

Bold Leadership for Organizational Acceleration

Photo Credit: meddygarnet

What the world needs is another acronym, right? Normally, I would say no way, but this one – "SIOP" – is a good one because it helps organizations of all types evolve to solve problems quicker and with more foresight.

"Sales, Inventory & Operations Planning" used to be called "S&OP" for "Sales & Operations Planning." But more and more, I am seeing forward-thinking businesses couch their strategies in a broader context that involves world-class inventory management.

Simply defined, SIOP is an integrated business management process through which the executive/leadership teams continually achieve focus, alignment and synchronization among all functions of the organization. We’re learning these days that the smartest companies cross organizational boundaries to solve problems in strategy, planning, managing inventory, sales and manufacturing.

In its most basic form, SIOP was developed to address these types of situations; however, it is impractical to do so at the SKU or transaction level. Accordingly, SIOP provides a structured business process that facilitates addressing problems at the product family or group level ahead of time whenever possible.

To gain greater insight, the Tompkins Supply Chain Consortium recently performed an analysis of the level of communication that takes place between functions to address SIOP issues. Data collected from a recent Consortium survey indicates that more than 80% of participating companies have a formal SIOP process in place, and there is virtually no difference in the use of an SIOP process at retailers or manufacturers.

If you’d like more information on the survey and SIOP, you can download the Executive Briefing, Sales, Inventory & Operations Planning: Crossing Organizational Boundaries.

Is your company doing SIOP, and if so, what have you learned?

More Resources

From the Tompkins Supply Chain Consortium: Inventory Management Tops 'Critical List' for Companies in 2010

 

Lessons from the Benchmarking and Best Practices Leaders, from the The Global Supply Chain Podcast (listen here or see the text transcript)

Photo credit: Tim Brauhn

I just came across this blog post from the Supply Chain Management Review website on the distinction between leadership and management.

It really got me to wondering, what is the true difference between leadership and management? The reason this is an important question is because being a good leader means understanding these differences. Sometimes we use the term "management" when the jargon that we should really be using is "leadership" and vice-versa.

I thought the SCMR blog post made some interesting points on the subject, and it brought to mind what I have written on this subject in one of my latest books, Bold Leadership for Organizational Acceleration.

I think that the most significant difference between leaders and managers is that leaders create change. Leaders challenge the status quo constantly, and they guide and teach others to create, embrace and nurture change. Management represents adhering to a system and the certainty it represents, which does serve an essential function for any organization. But by their nature, leaders question the managerial preference for certainty. This is true for great supply chain leadership as well. 

To lead a revolution that creates change throughout your company or your industry requires giving up complacency and facing uncertain future outcomes, but change helps leaders build momentum for the future.

There are other differences between leading and managing that are important to understand:

Leaders seek growth. Managers seek control.

 

Leaders innovate. Managers administrate.

 

Leaders rely on people and trust. Management relies on systems and control.

 

Leaders ask: What? Why? While managers ask: How? When?

How have you reached out for positive growth and embraced change lately? Are you leading or managing?

More Resources:

Book: Bold Leadership for Organizational Acceleration

 

Related Blog Posts: 

Gauging Your Leadership Style: It Never Goes Out of Style

You Want Innovation in Your Organization? Then Don't Tug on Superman's Cape!

Five Reasons Why Now is the Most Exciting Time to be in Business

Photo credit: Redvers

One’s first reaction to the question, "What to do with 2009?" may understandably be, "Forget about it." Say goodbye, gone and good riddance! Certainly I agree, but wait a minute. I do not think we can legitimately do this without further review, because, whether we like it or not, the 2009 data is a portion of our history, and we are forced to deal with it.

Dealing with it by just forgetting about it does not result in our closing out 2009, but rather it prolongs the agony we all felt in 2009.

Before I continue with this thought, let me pick up on a parallel track that helps me make this point even stronger.

Remember the survey showing that 75% of all men thought they were in the top 10% of all male athletes? Now, some of the women reading this will say yes, and the other 25% of the men will think they are in the top half. But, most men know this is because men interpret the question as being asked about men of their own age in the sport in which they perform best – not all male athletes in all sports.

Of course, some women may be rolling their eyes, and with good reason. Now let me go on to a related, but unfortunately, never-conducted survey that I also believe would ring true. I believe 75% of all the CEOs in the world (male and female CEOs) believe their organizations will be in the top 10% in growth in the coming years.

What do these two thoughts about 2009 data and 75% of CEOs seeing their organizations in the top 10% have to do with each other?

They both have to do with the base of data that we use going forward to conduct planning, budgeting, forecasting and target setting. Let me be even clearer by asking these 8 big questions:

1) Do you want to include 2009 (and possibly 2008 as well) data in your planning exercises going forward?

2) Do you want to include 2009 (2008) data when doing forecasting going forward?

3) How do you want to handle 2009 (2008) actuals when developing budgets going forward?

4) How do you want to handle 2009 (2008) performance when developing future targets for KPIs?

5) When planning the future, how do you want to handle the CEO's view of growth?

6) When forecasting future business levels, how do you want to handle the CEO's view of growth?

7) When establishing budgets, how do you want to handle the CEO's view of growth?

8) When establishing KPIs for the future, how do you want to handle the CEO's view of growth?

The answer to all these questions is the same, and it is not "Forget about it." 

The best possible answer to all of the above inquiries is: "with realism and thoughtfulness." Let me explain.

If, for example, your business performed in 2008 and 2009 in accordance with a long-term trends and your CEO has a good history of presenting achievable goals and your industry is not undergoing significant change, well then, stop reading this blog post, and go back to the bliss within which you live.

Now for the other 999 of us out of 1000, this blog post is for you and has in mind your goals of organizational excellence. You must proactively address "What to do with 2009?"

I strongly believe that in answering these 8 big questions, you must:

1) Adjust historical data to what would have been without the economic turmoil of the last 17 months prior to doing future planning.

2) Adjust historical data to what would have been without the economic turmoil of the last 17 months when doing forecasting going forward.

3) Adjust actual financial results to what would have been without the economic turmoil of the last 17 months when developing budgets going forward.

4) Adjust KPIs to what would have been without the economic turmoil of the last 17 months when developing future KPI targets.

5) Reflect upon the CEO's optimism when planning the future and filter this optimism with considerable sensitivity analysis so that you do the best job of planning for reality.

6) Reflect upon the CEO's optimism when forecasting the future and filter this optimism with considerable sensitivity analysis so that you do the best job of forecasting reality.

7) Reflect upon the CEO's optimism when establishing budgets and filter this optimism with considerable sensitivity analysis so that you do the best job of budgeting for reality.

8) Reflect upon the CEO's optimism when establishing KPIs for the future, and filter this optimism with considerable sensitivity analysis so that you do the best job of establishing realistic KPIs.

I am sure that you are noticing a pattern here.

So, "Forget About It" does not work to put 2009 behind you. In fact, if you do not proactively address the impacts of the Great Recession and make the appropriate adjustments, the evil of the economic meltdown of the last 17 months will continue to play havoc with your ability to perform.

Only after these adjustments are all made do I then believe the best thing you can do with 2009 is to just "Forget about it."

Go!Go!Go!

Jim

Other Resources

Great Comeback Executive Briefing: http://www.tompkinsinc.com/news/PR_2009/pr_102309.asp

Organizational Excellence: http://www.tompkinsinc.com/operations/organizational_excellence.asp

Bold Leadership Book: http://www.tompkinsinc.com/boldleadership/default.asp

Photo credit: lautsu

I recently joined Frank Quinn at Supply Chain Management Review (SCMR) for the webcast "Getting Supply Chain on the CEO’s Agenda."

I am glad Frank selected this topic, as we’ve been more and more engaged on this very subject. Although "supply chain" is certainly not a new subject, it is new to some CEOs. So it’s the responsibility of the supply chain professional to help CEOs understand how they can use supply chain technology and strategy as a competitive weapon.

Supply chain leaders need to know how to speak the language of the CEO and how to prepare a successful business case. To do this, they need to be able to convey the importance of the supply chain, understand the CEO’s interests, and ensure the supply chain is meeting the interests of the CEO.

So, first, it is essential to communicate to the CEO the importance of the supply chain:

1. The objective of the supply chain is to increase the top line, reduce the cost of performance, and therefore, maximize profits.

2. Increasing the top line comes from the supply chain focus on responding to the customer.

3. Reducing the cost of performance comes from the supply chain focus on total delivered cost.

4. The supply chain focus on responding to the customer involves synchronizing supply with demand while minimizing the impact of variability.

5. The supply chain focus on total delivered cost involves the synergistic reduction of costs of the supply chain (procurement, manufacturing, inventory management, warehousing, transportation, etc.).

We also need to get to the heart of the CEO’s interests:

CEOs are very interested in profitability and happy customers.

 

CEOs are very interested in mitigating risk, forward-looking strategy, and working with, supporting, and encouraging professionals who can help their organizations become more successful.

 

CEOs are very interested in using their time wisely.

And most importantly, answering the following five questions about your supply chain will help determine your CEO’s interest in supply chain:

1. Does the supply chain have a positive impact on profitability and customer satisfaction?

2. Does the supply chain help mitigate risk?

3. Does the supply chain contribute to the forward-looking strategy of the company?

4. Does the supply chain make the organization more successful?

5. Is the time invested in the supply chain by the CEO time well spent?

As companies are pulling out of the recession, CEOs are dealing with the short-term issue: budget. At the same time, they also have a long-term issue on their minds: preparing for the coming boom.

Now is the perfect time to get supply chain on your CEO’s agenda and prepare your competitive weapon for 2010. How do you talk to your CEO about supply chain, and does it yield results? I’d like to hear your thoughts.

Go!Go!Go!

Jim

Photo credit: lrargerich

After further reflection on "innovation" and what it means to be "innovative," I think we have a real problem when it comes to the recent thinking on this topic.

I just read a thought-provoking article on "the discovery skills that separate the true innovators from the rest of us." This article included the things we could learn about innovation from understanding Michael Dell, Steven Jobs, Jeff Bezos, etc.

Well guess what? Interesting read, but we could also probably learn some things from studying Superman, Batman and Spiderman. However, I seriously doubt that any of these six real or fictional men have much to teach us about the reality of business innovation as practiced today. Sure, if you are like Dell, Jobs or Bezos go for it, but for normal companies trying to move forward into 2010, a whole different mindset is needed.

Let me be clear:

1. It’s not about the breakthrough. Rarely is business innovation about a big breakthrough. Most of the time, business innovation is a refinement of an existing product, service or process that has huge value to the marketplace or to our business. Leadership is responsible to capitalize on this value.

2. It’s often in hiding. The greatest enemy of business innovation is not the failure to create innovation, but rather that no one notices the innovation and the resistance to change kills the innovation before it sees the light of day. Leadership must actively seek out and pursue the innovations that are in front of us but are hidden from the view of those too busy to notice.

3. It doesn’t take a superhero. Lastly, most people think innovation comes from "Innovation Centers," think tanks or R&D. Not true. The facts are most business innovation comes from the normal people within your company who have open minds, who listen well and who understand your business and your customers. Leadership must grab innovation and accelerate the value creation brought about from it.

So, clearly, innovation is leadership's job; not to create the innovations, but to stimulate, recognize and obtain value from innovations. My favorite question I hear from CEOs is: " How can I make my organization more innovative?" My answer is always, "Be innovative in how you attack innovation."

What does this mean? Do things differently. Shake some things up. Change reporting relationships, change responsibilities, change internal communications, and so on; do things differently. This is particularly true in today's business climate with the supply chain – a huge hot bed of opportunity for innovation today. It is very clear that only by doing things differently can we achieve innovation.

My top three thoughts on how you can "innovate with innovation" are:

1. Clearly communicate the message that: You expect every person in your organization to be engaged in some aspect of innovation. Interact across the business and across the supply chain. Better understand the needs and challenges of your supplier relationship management and your relationship management with customers. Look for opportunities to improve products, services and processes. Do not be afraid to collaborate outside of your organization or to use outside resources that have value to contribute.

2. Ask good questions. For example:

A. Ask questions about maximizing profits. Can you increase profits by reducing revenue? How can you grow profits?

 

B. Ask questions about elimination. Amazon eliminated the bookstore; Dell the computer store; Sony eliminated speakers. What can you eliminate?

 

C. Ask questions about additions to your products and/or services. Like adding wheels to suitcases, adding a camera to a telephone, adding value-added information to your customers. What can you add?

 

D. Ask questions about the customer experience. How can you alter your product or service to enhance customer value? What are your customers using your product or service for that is outside of your original intent?

3. Ensure that your organization has breadth of experiences and assign people of diverse background to work together. Innovations often occur when cross-functional knowledge of customer needs and industry trends are integrated to understand opportunities for improvement. Consider collaboration with suppliers, customers and outside resources. Engage business and social networking to listen to the marketplace. Understand the competition. Create a culture of identifying, prioritizing, allocating time and resources and recognizing and rewarding innovation. Encourage risk taking and understand the importance of learning from innovations that are not productive.

So, just as the thought-provoking article I referred to at the top of this article says, "Innovation is the secret sauce of business success," this secret sauce needs to be applied by today's leadership. Trying to be Dell, Superman, Jobs or others in that category is not the assignment; being yourself but innovating on innovation is what it is all about today.

Go!Go!Go!

Photo credit: Tostie14

I am one of those people who can’t stop thinking about work while on vacation. This is bad in one sense, because I sometimes have trouble fully relaxing, but good in another sense because I learned on my recent vacation cruise how much that my observations about Egypt and our current Tompkins Associates initiatives have in common.

Since my last post, my wife and I have added the Luxor Temple, the Valley of the Kings, the Hatshepsut Temple and the Colossi of Memnon to our vacation highlights. Earlier this week, as you may recall, I blogged about the Nile River and gained a newfound respect for water and its role in sustainability.

Today, my mind is tuned in to leadership and how it has timeless significance. I am also focused on planning for The Great Comeback, which you can read more about here and view a video (organizations should be planning for economic recovery instead of holding back and doing nothing to promote growth during the recession. I also recorded a podcast on the subject of economic downturn supply chain strategies).

Leadership is important and always will be – It has been so since the beginning of time and I promise you, it will not change. I thought of this as I observed the quality of life of many of the people of Egypt. Although I did not visit Egypt 5,000 years ago (I am not nearly that old!) I did view with interest the paintings on the walls of the Tombs depicting life in Egypt back then.

I have a great deal of respect for Egypt as one of the world’s oldest civilizations and wondered about the leadership of its kings and pharaohs, along with the leaders in everyday Egyptian life.

Of course there was a lot of farming, fishing and handcrafts. Progress was powered by donkeys, horses, camels and men. Egyptians lived in tents and stone houses without modern conveniences, just as in other areas of that time.

But what came as somewhat of a surprise to me is that this appears to be exactly the same standard of living I witnessed for many in Egypt today. And I am speaking about just the parts of the country that I was able to visit.

I make this observation not in a critical way, but rather, because it is directly tied into another item on my "To Do" list – an updated speech on The Great Comeback. Of course my speech topic is about the recovery from The Great Recession. But here in Egypt, it seems to me that what is needed is a Great Comeback of a different character.

Ramses II was born around 1300 BC, and when he ruled, Egypt was the wealthiest country in the world. Today, however, much of that wealth is gone, and many Egyptian people live with the same standard of living as their ancestors of over 3,000 years ago. I realize that there has been a huge amount of water under the bridge between Ramses and the 21st Century, but wow, talk about the need for a recovery strategy and then a comeback strategy.

It looks like the need for recovery and comeback planning is equally important for the G-20 countries who got hit by the recession as it is for the developing countries that have never had a robust global economy. There is a huge need for a Great Comeback with a true global impact, and it’s something that our leaders would do well to remember as we climb the steep hill to economic recovery.

I would like to know your insight on leadership and global economic recovery. Now back to work, vacation/work is over.

Go!Go!Go!

Jim

I’ve had a lot of things on my mind since returning from an enlightening trip to Egypt. Traveling to ancient worlds tends to focus and refocus your thoughts and leads you to hone in on certain ideas about life and strategies.

For the last 34 years, I’ve been very fortunate in that I have had an opportunity to work in supply chain consulting for many of the most successful companies in the world – to interact with their executives and to learn.

As I reflect on what I’ve learned, two words come to mind to describe the secret of success. These two words are "High Intensity." This is clearly a work-in-progress, but let me share with you my current thinking on the Top 7 High Intensity Principles:

1. High intensity flows from being strategic, focused and purposeful.

 

2. It is always accompanied by a passionate pursuit of meaningful goals.

 

3. It demands speed, responsiveness, flexibility and agility.

 

4. It requires the fulfillment of expectations throughout the organization and the supply chain.

 

5. It will spread throughout an organization or supply chain when there is alignment around a shared consistent vision.

 

6. It nets substantial growth.

 

7. High intensity begets success, low intensity does not.

This is certainly a time to tap into the principles of high intensity; the world needs great energy and concentration as we continue to recover from the Great Recession. Living off the past and continuing with low intensity strategies will never result in successful economies, supply chains, or individuals.

I’ll delve deeper in high intensity in my next two blog posts, as well as expand a little on what I learned in Egypt. In the meantime, let me know your thoughts on this concept and how it applies to your life and your organization.

Go!Go!Go!

Jim

Photo credit: quatro.sinko

Carpe Diem. Seize the Day. Great motivating phrases, but would you recognize an opportunity if someone dangled it right in front of your face? Most of us would like to think so.

Well, let’s test this theory. An opportunity has been forming right under your nose, but you may have missed it because you were focused on doom, doom, and more doom.

Although for the past several months we’ve been hanging out in this dreary, dark economic hole that we fell into, there is a light at the end of the tunnel. For now, you just need to make sure that you reach the end of the tunnel by seizing the right opportunities.

This is a great time to be in business because the doom is starting to lift, and we are on the uphill. Don’t believe it? Here are the top five reasons why now is the most exciting time to be in business.

1) There is no new normal.
What I mean is that the pace of change is so rapid, there is no time for complacency. This is very exciting if you are one of the movers and shakers. However, if you are a wall flower, you may want to get out of the way, because the wall is about to fall and you don’t want to be underneath. Know your direction and take action. Don’t stand there waiting for someone to ask you to dance. Get at the head of the conga line and make everyone else follow you.

 

Make sure your supply chain has substantial flexibility and modularity to succeed and thrive, along with supply chain visibility, and the possibilities will be endless.

 

2) Your weaknesses are staring you in the eye.
How great is it to be aware of your weaknesses? From my perspective, it’s really great. I like to know my weaknesses, before it’s too late. This gives me time to be proactive and prepare for the future.

 

Like with the Bernie Madoff situation, the economic downturn revealed numerous vulnerabilities that led to even greater problems. Repairing a crack in the Hoover Dam would be a lot easier than rebuilding it. Take the time to patch up the areas that need the most work now so that you are not fighting against the current as the recession ends.

 

3) You can put your best foot forward – OK, right foot, now, left foot.
As we climb out of the recession, it’s an uphill struggle. As you huff and puff to make it to the top, it may be easy to forget that your competition is struggling too. However, now is the most opportune time to get ahead of your competition. The best way to do this is by knowing what you are up against and understanding what it is that will put you ahead in the race. Evaluate your competition and stay at least one step ahead.

 

4) You control your destiny.
You can sit on your hands and wait to see what happens, or you can get out there and create your own destiny. Keep up to date on what’s going on in the economy as a whole and know what’s going on in your industry. For example, the supply chain challenges food and beverage industry executives due to many issues like new FDA regulations, not to mention the changes in consumer habits due to tighter food budgets as a result of economic pressures. Usher in smart strategies and processes for your industry and your business. You can check out the Executive Briefing that I recently wrote on "The Great Comeback," which will help you create a plan and be more prepared, no matter what your industry.

 

5) Did you think any of the above metaphors were a little too cheesy? Well, here’s one for you: America’s Got Talent. And I mean lots of it.
What’s been happening to all of the folks who make up the high percentage of unemployment? They’re waiting to hear from you. As the economy rode the down slopes, we tried to encourage companies to keep their talent, but many continued with layoffs for various reasons. Now, here we are on the lift, and you can pick up some really talented passengers.

 

Stay positive as you create your Comeback Plan. Keep these five exciting reasons in mind and be open to new opportunities. In the end, you’ll be on top, leading others out of the recession.

Go!Go!Go!

Jim

Photo credit: conanil

The 2009 Supply Chain Leadership Forum in Chicago was jam-packed with some great sessions and even greater opportunities to better understand the challenges facing executives today. I was really looking forward to the evening reception (great food and wine) and the dinner keynote, Charles Fishman.

Charles is a senior writer at Fast Company magazine and author of the national bestseller, The Wal-Mart Effect.

Even with a Target executive in the audience (and he sat the closest to the podium), Charles didn’t fail to entertain and educate the crowd. Whether you love or hate Wal-Mart or are somewhere in between, this is one man who knows his stuff on the mega-retailer. Having devoted years of his life to figuring out what makes this successful and controversial company tick, he can tell you the good, the bad, and the ugly.

While most of the country is aware of Wal-Mart’s influence on the retail world, it still amazes me to hear facts such as:

More than half of all Americans live within 5 miles of a Wal-Mart store

93% of American households shop at Wal-Mart at least once a year

While Wal-Mart may always be looking over their shoulder, they continue to raise the bar and set standards that the rest of the retail world has to live up to in order to compete. As most everyone has already heard, sustainability is their latest mandate.

Top-tier suppliers have until October 1 to complete a 15-question survey that will be used to evaluate the manufacturer’s sustainability efforts (the survey is public knowledge on Wal-Mart’s site)

This plan involves more than 100,000 suppliers globally

The goal is a labeling system that will provide a breakdown of the sustainability of each product

Charles closed with a challenge to all of us "supply chain superheroes" in the crowd. He challenged us to take a good hard look inside the day-to-day supply chain functions now and really assess where we’re headed. How can we step up and raise the bar?

While I don’t really consider myself a supply chain superhero, I’ll take that label any day if it means I’m making a difference in the supply chain world and get to wear a big colorful cape. But I’ll forgo the tights – some other superhero can take on that wardrobe challenge.

Go!Go!Go!

We kicked off the 2009 Supply Chain Leadership Forum in Chicago Monday night with a bang. What a great bunch of folks, and we’re having fun while tackling some tough issues! We are all strangely mesmerized by the innovative hand-dryers in the bathrooms at the InterContinental Hotel, but more on that later.

For those of you who aren’t familiar with the Leadership Forum, top supply chain executives from around the world come together to learn, network and gain solutions to issues in areas such as benchmarking, sourcing and trade management, core benchmarks, packaging, sustainability and technology. This year, more than 50 experts from 30 companies in retail, consumer products, food and beverage, pharmaceutical, high-tech and other industries are in attendance.

Monday night, I led an Executive Summit that began with the statement "Everyone needs a T-shirt that says ‘I survived the Great Recession of 2009.’" We all agreed that was true, as we dived deeper into the topic. Their feedback really supports what we have been saying all along about the economic recovery: You have to look at each sector individually and figure out when your industry has or will hit bottom.

Listening to the economic experts drone on and on about a macro recovery and how the recession will not be over until unemployment goes back up and the moon and stars align just perfectly is not going to help your organization grow and prosper. A strong Comeback Plan focuses on your company and your industry sector. Period.

Here are some of the best lessons that I have learned thus far from talking to attendees:

1) Beer is flat and soup is hot. Meaning that food in general – including soup, frozen pizzas and other inexpensive, eat-at-home cuisine – are doing well right now. Also, beer sales are holding their own. In fact, food and beverage really never tanked, although there have been channel and brand changes in response to the downturn. In addition, there has also been some "trading down" in this sector by consumers who are willing to settle for a less expensive or private label brand to save money.

 

2) Retaining talent is key regardless of budget cuts. More than ever, you need "the right strategy and the right people" to get things done.

 

3) An awesome realization – This is the first time we’ve experienced a recession under massive globalization. And what it has revealed is either a) we’ve gotten so lean that forecasting will have to get better in order to be of any value at all. We really need more base and accuracy measurements, or b) the new norm is that there is no norm, and it’s nearly impossible to make good forecasts today, or c) the truth is somewhere in the middle. We did all agree that companies need several different forecast scenarios for their individual Comeback Plans.

Here are some of the dumbest things businesses have done during the recession:

1) Stopped keeping track of their competitors and what they’re doing and started focusing inward, almost as if they are withdrawing into a fetal position. Wrong. This is the opposite of what companies should be doing.

 

2) Not "standing up on the hills." Failure to launch an effective Comeback Plan is like being in a bicycle race and forgetting that it is on the uphill that you need to stand up and really turn on the juice.

 

3) Cutting the people you will need later – not retaining talent. This was mentioned more than a few times.

Here are some of the smartest things that businesses have done during the recession:

1) Using the downturn as an opportunity to acquire other companies at a low cost in an environment in which private equity firms are uncharacteristically quiet right now.

 

2) Learning from other countries: look at what works there and see if it will work for your organization. Not everything will fit, but a lot of it promises to be very beneficial.

 

3) Stepping up benchmarking to understand where you need the most help, or the most appropriate time "to stand up on your bike."

 

4) Inventory: reducing levels can be smart or dumb – depends on how you optimize other areas in your network and how it affects customer expectations.

 

5) Implementing more frequent network design reviews.

Hand-dryer in the bathroom (I know you were waiting for this one)

There’s a really cool, new-fangled Dyson Airblade hand-dryer in the bathrooms at the InterContinental Chicago O’Hare hotel. Actually, I just learned that it has been around since 2007, but it is new to the majority of our attendees and seems to amaze our staff. Why am I mentioning this? Not sure, other than it is a really cool device, we have photos of it, and it’s just another positive element in the whole Leadership Forum experience.

Look for more later in the week on how the remainder of the forum went and the results of our on-site, real-time survey that attendees are filling out today and tomorrow.

With very dry hands!

Jim