Troubled Waters Require Capable Leaders at the Helm

Canada's lean leaders need to look beyond the horizon and chart the future

In stormy times, true leadership skills emerge, says Larry Coté, the President of Lean Advisors Inc. (www.leanadvisors.com)

The rumbles on our economic outlook are troubling. The dollar is still up, foreign investment, profits and sales are down. Low cost Asian competition is eroding our market share. Financial scandals and corporate governance issues keep flaring into the headlines. Disasters such as terrorism, possible pandemics, and war continually reshape the world in which we work and live. There are so many "big" global issues, so much apparent chaos, that our minds are often distracted from the day-to-day jobs we do leading our businesses.

The world as we know it has changed - both economically and socially. What hasn't changed however, is the customers' insatiable appetite for more value, faster delivery and better service.

Most business leaders are eager to return to their pre-recession profits and growth. But even when the economy is robust again, we may find the bounce back to previous profit levels is not a "slam dunk" in spite of a revived and thriving economy. During the past couple of years, while business executives have been making short-term decisions to survive, customers and markets have continued to change at a rate never seen before.

If we turn our worries and blame for new shortfalls to the currency fluctuations and Asian competition, it starts to sound like the same old "blame game" with different players. It's easy to fly high on adrenaline when you look at these global issues and threats. But, for a moment, let's step back and look at our business challenges from a lower altitude and a more local focus.

In doing this, we need to disregard the factors affecting our businesses that we can't influence and begin to look at those we can. The ones we have little or no influence over are things like the recession, currency fluctuations and major disasters. The area we can influence and affect is our own long and short-term strategies for transforming our companies, making them more competitive and customer focused.

The bottom line is let's stick to our "knitting," do our jobs and focus more on our roles as organizational leaders.

In North America we've proven that we can provide products and services competitively through innovation, inspired product development and comprehensive efforts to eliminate waste. But it does require a prolonged and concentrated effort. Leaders aren't hired to cry wolf when chaos threatens. The terms of employment are to use our leadership talents and drive improvements that will be seen and sustained on the bottom line.

We need to readjust how we use these talents and not be distracted by global factors, which are out of our control for the most part. We must accept the role we were hired for and focus on the business operations where we can have a real impact.

We are leaders, so let's lead. Most activities, whatever the company, can be classified as waste of one kind or another once you start to see it. As leaders, it is our responsibility to set the direction and motivate our staff to understand how to remove this waste properly rather than making incremental or point improvements.

This requires seeing and analyzing the process from end to end, not just at points or segments of the process. That becomes your road map to success.

Beneficial change happens in a very structured, sequential and organized fashion. Your teams aren't caught running around chasing low hanging fruit while creating what we call "exciting chaos." When everyone rushes reactively to improve their individual areas they feel virtuous, after all they are helping the company, aren't they? In fact, they are only improving their areas or departments, often at the detriment of the entire process. It's your leadership and your measured future state plan that will bring order to chaos. Reactive flurry kills profits faster than any big external threat!

Striving to improve our own competitiveness by providing customers faster and better products or services will accomplish more than worrying about the next global crisis looming just around the corner. The only futures game we need to be in is the one that cuts waste so the customer sees more value.

Science tells us that nature likes order - it's human agents that generate the chaos. There are things that we can control - so let's get busy and do it!

Larry Coté is president of Lean Advisors Inc. You can reach him by email at: lcote@leanadvisors.com. Larry is also a key organizer of the Lean Conference Canada event being held Sept, 15-16, 2004, at the Ottawa Congress Centre. For event details visit: (www.leanconferencecanada.ca)

For information: www.leanadvisors.com or Contact: info@leanadvisors.comPhone: 613-821-4545

About The Author

Larry Coté is well known for his penetrating analysis and creative energy. He was employed by the Lean Enterprise Institute in Boston for almost two years as C.O.O./E.V.P. He was the Founder and President of the Lean Enterprise Institute Canada.

Over the years, Larry has worked with 100's of companies at various stages of their Lean journey in many different business sectors. He is particularly skilled at working with senior executives in the boardroom to plan, problem solve and create Lean corporate strategies.

His research and development work along with his past 'hands-on' experience has led to new ways to teach and communicate Lean across North America. These methods used in the past by Lean Advisors Inc. have proven to be very successful in promoting 'sustainability' within the organizations where they have been applied.

Larry has specialized expertise in Toyota Production System concepts, diagnostics and assessment of Lean readiness. He works with the corporate leaders to develop effective plans for transforming entire organizations using Lean and adapting it to their particular culture.

lcote@leanadvisors.com

---

Secrets Of Effective Brainstorming

Have you been in a "brainstorming" session where each person... Read More

Invalid Excuses for Poor Business Results - The Economy

Note to Rite Aid and CVS: It's not about the... Read More

Elite Positioning Brings Higher Profits

Imagine spending the same amount of money on marketing and... Read More

Dotcom Business Plans Archive Project

One of the most important initiatives in the domain of... Read More

Ten Steps To A Great Strategic Plan

Ask a small business owner about their strategic plan and... Read More

Why Create an Annual Plan?

Can you imagine going on a road trip without knowing... Read More

Why Do a Business Plan?

To Grow (Catapult) Your Business That's Why.When it's in your... Read More

Seasonality: Whats the Big Deal?

Do you work in or own a business that's affected... Read More

Have You Identified the Enemy?

One of the most powerful driving forces in human nature... Read More

Buying Used Detailing Equipment and Rainy Day Services

Mobile auto detailing equipment becomes very inexpensive around March each... Read More

10 Critical Facts to Put On the Cover of Your Business Plan...

In most business plans, no matter how striking the idea,... Read More

Hunters and Gatherers - Are You Serving Both Their Needs?

The University of Exeter in the United Kingdom recently published... Read More

Troubled Waters Require Capable Leaders at the Helm

Canada's lean leaders need to look beyond the horizon and... Read More

Business Plan Financial Projections: Stop Worrying About Being Right...

Business plan financial projections seem daunting because they are so... Read More

6 Changes You Can Make to Increase Business Profits

I read once that something like 30 percent of all... Read More

Sony?s PSI Project

In 1989, Sony founded its Institute of Wisdom at the... Read More

A Rough Cut on Feasibility

A piano tuner recently moved to Buffalo, NY, and would... Read More

Titanic Precautions

Many movies have been made about the tragic story of... Read More

Communication Strategy During A Time Of Strategic Planning

"Rubbish!" shouted the large, aggressive man in the red-striped shirt... Read More

Mobile Franchise Business Expansion Strategy

If you own a mobile franchise business and wish to... Read More

What is a Shared Vision?

So what makes a vision successful? Everyday companies try to... Read More

Microsoft Great Plains Implementation: Placement/Recruiting Agency example ? overview for consultant

Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More

Business Plan 101 How to Write a Table of Contents

No matter what business you plan to start in your... Read More

TQM Total Quality Management, the book

Every decade we seem to come up with a buzz-word... Read More

More Uses for Your Business Plan

You have invested a lot of time and energy on... Read More

19 Questions to Supercharge Your Business Plan

Whether you are seeking capital for your company or are... Read More

Business Strategy Planning Made Easy

Ask Yourself three simple questions that affect your strategy planning...... Read More

Abstract Thought; Business Strategies and Biological Systems

To stop a computer virus you must understand how it... Read More

The Power of Planning

I am surprised how few sales professionals, independent consultants, and... Read More

Memo: Sustaining Growth in Your Business

What gets measured gets done.How do you keep your business... Read More

Microsoft Great Plains in Advertising & Publishing ? implementation highlights

Microsoft Great Plains, former Great Plains Dynamics is excellent fit... Read More

Nine Succession Planning Mistakes Small Businesses Should Avoid

1. Attempt Succession Planning Without Other Strategic Plans. Succession plans... Read More

Breaking the Growth Barriers in the Information Technology and Software Sector

There's nothing automatic about corporate growth, particularly in the information... Read More