Why do organizations continue to use high priced consultants and consulting firms instead of their own talented employees? Before I answer this, I must confess that I am an experienced consultant having worked for both small and large consulting firms.
Dr. Tom DePaoli recently released Avoiding a Supply Chain Apocalypse. It is a collection of the best advice he has to give on topics ranging from relationships to negotiation to Kaizens and storytelling. Since I’ve read all of Dr. Tom’s books, I consider it something of a personal challenge to uncover the material he has added – either because the focus of the book is different or because professional priorities continue to change over time.
Like Dr. Tom’s other books, this is for professionals that don’t have the time (or desire) to lose themselves in a 300-400 page book of polished academic theory. His sections are short and to the point and draw in material from third party sites as well as his other writing. You can read one or two sections as time allows and not have any trouble picking up in a different place the next time you sit down.
The supply chain may be the best organized in the world, but if trust and transparency are not there the commercial results will not materialize.
- The Lean Supply Chain, p. xxiv
The Lean Supply Chain: Managing the Challenge at Tesco (September 3, 2015, Kogan Page) by Robert Mason and Barry Evans is fascinating – for its timing as much as the overview it provides into one of the world’s most prominent retailers. The book’s timing is impressive (and critical) given the turbulent few years Tesco has had: including the horsemeat scandal in 2013, and an accounting scandal in 2014.
While this book is not solely about the scandals and their exact aftermath, it acknowledges them right up front and includes as many details as the publication timeline would allow – and probably a few more than that. The Preface is an absolute must-read and would stand as a B-school case study in its own right.
One of the most powerful things you can do with broken windows management is to empower your employees to fix their own issues whenever possible.” (p. 35)
In his fifth business book (seventh overall) Dr. Tom DePaoli takes broken windows theory and combines it with liberal doses of lean methodology and his own no-nonsense approach to process improvement. While this is not a long book, just 70 pages long, it is a working book. This is emphasized by the pages at the back that are specifically designated for “Doodles, Notes, and Ideas.”
“The big idea behind this book is that the way a company configures its operations to deliver this brand experience to customers – while delivering viable financial performance – is an opportunity for significant competitive advantage and marketplace disruption.” (p. 2)
Business Operations Models: Becoming a Disruptive Competitor by Alan Braithwaite and Martin Christopher (Leading Procurement Strategy, Humanitarian Logistics) is a book that sort of sums it all up on its own with the ‘big idea’ quote above. Changing the configuration of an operation to get a different result is a straightforward enough idea. Why, then, do you need to read beyond page 2? The answer to that question lies in the many case studies and visuals in the book. Needing to reconfigure your operating model for competitive advantage might be an easy concept to accept, but the execution is likely to be difficult.
Kaizen Kreativity is the fifth book by Dr. Tom DePaoli, and the third one I have reviewed. Like his other books, Kaizen Kreativity combines examples from his diverse professional past with easy to comprehend definitions and background. His lack of pretension is particularly appreciated since he often relates cases about Lean and Six Sigma. For anyone without experience using these methodologies, the terminology can be off-putting at best, and in the worst case scenario may deter people from realizing their benefits altogether.
Sustain Your Gains, by Michael McCarthy, is ultimately a guide to human behavior in the face of change. Although the initial sections of the book serve as a primer to Lean and Six Sigma methodologies, hints of what is to come in later chapters pull the reader forward to see the application of Process Behavior Maintenance (PBM) in action.
We often talk about how procurement and supply management professionals need to focus less on negotiating savings and more on creating value. But the actually process we are supposed to follow to accomplish that can be unclear. The first challenge is how to go about creating value, and the second is how to make sure the value created is recognized by other departments in the organization – like finance or operations. ‘Lean TCO’, written by Tim O’Meara, presents an approach to facing both.
This week’s Wiki-Wednesday article is about the challenges of capturing savings due to cost reduction and avoidance. One of the sections addresses Total Cost of Ownership (TCO), and the difficulties of calculating and reporting on those costs.