Decision-Based Agendas

Has this happened to you?

You're participating in a group meeting. You come upon an important topic on the very full meeting agenda labeled "Widget Sales Program." The meeting leader initiates the conversation with an somewhat impressive introduction and overview. He or she then asks for input.

As the input comes from all directions from all the participants--the course of the meeting shifts left--then right, then backwards, then totally off topic--then back to the middle.

Many excellent ideas come out. Some are even written down on the flip chart. After 35 minutes of discussion, sharing of ideas, and even bold proposals for "change," the meeting organizer realizes she'd only allowed 30 minutes for the discussion and time is running out, and so she's going to have to move on.

She sums up what she thinks she heard and then moves on to the next topic.

So what was wrong with this? Perhaps nothing--if the group and leader arrived at an important decision or action point based on the discussion.

But more often than not--a meeting agenda prompts a lot of great discussion where many great ideas are shared--but no "goal" was set for the agenda item in the first place. It felt good to the meeting organizer and participants to have the agenda item on the list--but they leave the topic not really feeling as if they did something substantial about it.

How do we make this process better? The answer is through decision-based agendas. The trouble can be--is that these don't come naturally to us. A decision-based agenda item looks odd on the page, and even if we don't phrase it properly, the meeting leader must exhibit the discipline to remember to crystallize the goal for the topic in everyone’s mind so that a decision is reached.

One way to enable this process--is to just rewrite the agenda topic. Instead of "Widget Sales Program," the meeting leader might have listed it as "Widget Sales Program: What Are The #1 and #2 Enhancements Needed to Achieve Our Goals?"

This tells everyone at the outset that their mission for the discussion--is to identify just two components to improve the Widget Sales Program. It's easy for the meeting leader to come back around in the middle of the discussion and remind the group of the goal. And more importantly, it sets the right tone at the very beginning for the participants, so that they know what is expected during this section.

Other agenda topic examples:

Before: "Customer Service"
After: "Customer Service: Determine Priority and Responsibility List Based on Last Month's Survey"

Before: "Warranty"
After: "Establish New Warranty Labor Provision: 1 Year or 2 Years"

Before: "Widget Inventory"
After: "Decide What Stock Items Can Be Reduced to Achieve 10% Inventory Reduction"

Obviously, not every topic on an agenda can be expressed as a question. Often, there are important updates and sharing of information that just need to be expressed as such--without any question attached.

But using a Decision-Based Agenda strategy will help ensure more of our meeting topics produce something useful to take away from the discussion, rather than that empty feeling when we're 30 minutes behind schedule and we just have to "move on because we're out of time."

Execute...or be Ex-e-cu-ted

There is no doubt that one of the top five lessons I have learned in business is that of execution. And in fact at times it might be number one.

Having worked for a company in the first half of this decade that was fairly good at execution—I have learned how to spot execution when it exists, and more importantly—when it doesn’t. The CEO of our parent company felt execution was so paramount to successful business that he developed The Execution Award for managers who demonstrated effective focus, clarity of management, and clear speed in getting things done. Unfortunately, he would tell you that he could count on one hand the number of times he gave the award away across the various business that were part of the organization. My company was able to secure the award once. And we thought we were good at it.

Yes, execution is elusive.

When it exists, people explain things simply to one another, they reach clear agreements, and they hold one another accountable for results. You can observe it in those who are successful in gaining clear commitments from others, those who write down steps and dates and ensure everyone knows what they are, and then follows up to see to it what was promised truly gets done.

You can also see when execution is lacking—such as in these examples:

A president asks his team at a meeting when something will be completed, and the answer from one of the vice-presidents is “a couple of weeks.” The president then says, “Good—as long as it’s not going to be six weeks.” No one writes anything down and the conversation moves on.

(The problem here is that the president accepted a vague answer, did not write down a precise commitment date, and let the conversation move on without coming to a clear agreement on who, what, and when)

Or two, a manager sends an email to three recipients and addresses remarks to no one in particular—saying she needs some certain result by sometime next week.

(Here again, the lack of specifics cause each of the three recipients to think “Hmmm, certainly one of the other two will respond to this—since it wasn’t directed at me personally” and so it goes. Each of three recipients all go on thinking ‘someone else’ will handle it—and almost certainly no one will)

Or three, the supervisor of a work group needs to know that a brand new process has been used in 100% of the week’s production schedule to meet a quality guarantee. The ideal question would be something like “Was this new process used from the start of Shift ‘A’ this week—and continuously in every shift since right up through today?” Instead, the supervisor who isn’t practicing a solid discipline of execution attempts to ask the question—but expresses it instead as a statement: “And, the new process has been used from the start of Shift ‘A’ this week? His trailing tone leaves it hanging there as a confusing combination between a weak question and an even weaker statement. Its easy for the employees to silently nod their head, but the real answer is never flushed out.

Execution simply means getting things done. And as you can see, it has a very clear connection with a person’s ability to communicate clearly and with intention. You must use direct language. You must look people in the eye when you ask them questions—and get clear agreement. Assumptions cannot be made. Dates and promises are to be written down. Follow-up is to be consistent. And rewards afforded to those who execute—and withheld with those that do not.

Once you begin understanding and recognizing when good execution is present—and when it is not—you will be more purposeful in your dealings with people, with your communication, with your follow up, and with your attention to results.

It is, after all, what separates those who do—from those who do not.

Privileges and Responsibilities of Leadership

If you ever want to be reminded of the significance, responsibility, and opportunity possessed by those of you in leadership roles—consider for a moment the lives lead by our Founding Fathers—in their formerly “normal” positions and then being thrust toward the path of creating true greatness—for those around them, their towns and cities, and later for the country. My wife and I recently took an East Coast vacation including four days in Washington D.C. and a trip to Jamestown, VA--the birthplace of America. I have to tell you--the monuments, examples, and "living history" exhibits we observed were an awesome reminder to me of the responsibility each of us has to uphold, protect, build upon, and carry forward the beliefs and principles of our Founding Fathers. Specifically, how starting with the leadership of a few good men (and women)—amazing events can occur.

When standing in front of the likenesses of Abraham Lincoln, Thomas Jefferson, and Benjamin Franklin and reviewing some of their founding beliefs expressed through their many writings captured forever in granite--one feels humbled by the enormity of their thinking and foresight. It's at a time like this when one’s appreciation and understanding of the great risks and sacrifice these men made for the rest of us is brought clearly into focus.

It also shines a bright light on the responsibility that we now have.

All Americans have the opportunity, and yes--the responsibility, to continue to live and perpetuate these phenomenal beliefs. But perhaps it rests more squarely on the shoulders of those of us who are community and business leaders to help reaffirm these incredible ideas and principles and ensure they find their way into the daily aspects of living for all around us.

This is the greatest country on Earth. Our Founding Fathers envisioned and created a constitution and government that outlived them and will outlive us all. We can help ensure that the freedoms, rights, and privileges outlined by our predecessors are enjoyed and put to benefit in our communities for many years to come. And as leaders, it begins with acknowledging and sharing with others the greatness of America, leading by example, and using our voices to be the inspiration for those in our community.

How will you lead today?

Take A Chance...What Do You Have To Lose?

I recently shared some thoughts with Shelter Magazine that were published in a March article about the tactics I believe a wholesale building products' distributor could take to solidify the value they provide to their customers, to their suppliers, and to the market in general. Editor Samantha Carpenter focuses in on the variations from "the norm" that can become a focused set of initiatives within a distributor's operating plan.

Response to the ideas I shared has been positive, for the most part--with only one former retailer expressing that the ideas are too far stretched and that they may collide with current retailer initiatives.

However, the majority of the feedback has been very supportive--from distributors and retailers alike. The supply chain CAN be improved, redundancies eliminated, and a new tier of service can be created to benefit the end-user.

If you're a wholesaler, I invite you to read and decide for yourself whether adopting a greater interest in services and programs can and will be the initiative that drives you forward--onto new and better results.

The article can be found at:

http://www.usglassmag.com/Shelter/Backissues/2008/March08/survivaltips.html

Forget Commodities. I’m a “Specialty Supplier” Right?

When it comes to margins and serving customers who remain loyal to us due to the high-end products we provide—everyone knows the value of being a specialty products’ provider, right? And in addition, its our least loyal, price-shopping customers that make us often consider cutting out commodity products altogether.

So what would be wrong with increasing our focus on specialty products—and backing away from commodities? Well, not so fast. There is that issue of having a “full shopping cart” from which to sell—and if you compare this to a grocer—you’ve got to have both milk, eggs, and butter on the shelf—and your own bakery, fresh fish, and maybe even organic produce.

But perhaps a more convincing reason to think carefully before giving up the “everyday stuff” and focusing on the high-end only is the threat the competitive low cost commodity provider poses of moving up the chain and competing with us nose-to-nose for the most profitable business too.

Consider the examples from the steel industry described in Clayton Christiansen and Michael Raynor’s book The Innovator’s Solution. They describe a steel industry in the 1960’s that was dominated by the big “integrated” mills who watched as smaller “minimills” started up and, due to their low manufacturing capabilities, could only produce rebar—a low grade form of steel.

When the minimills entered with rebar—which accounts for only 4% of total steel use—and offered it at drastically lower prices—the large mills were almost happy to stop offering it as it only produced margins of 7%. They then began to focus their resources on higher margin products and customers.

When the minimills improved manufacturing and began to offer angle iron and other components—once again, the large mills were almost relieved to walk away from this low profit business—as the margins had always been low in this category as well. Once again they aligned resources and product offerings on more discrete customers segments—allowing the minimills to capture the low margin commodity business.

This happened again with structural beams, which the minimills perfected after great effort. Once more, they exerted heavy competitive pressure on the large mills and, once more—they took away more share.

Finally, the minimills perfected the ability to produce sheet steel—and the end of the story is, that today the minimills have grown larger than the former traditional mills—such as Bethlehem Steel—and the industry now is forever changed.

There is a point at which a company needs to assess, “Do I walk away from low margin commodity business and just focus on the profitable high-end? Or, do I invest in a broad spectrum of product and services offerings, compete on the lowest margin business, and keep my share of market?”

This will be a different decision for every company, in every market, and against every different form of competitor.

However, before you retreat “upstream” to Specialty-Land too quickly—you may wish to consider what door you leave open—for your competitor to enter.

Death by (Slow) Improvement

Beware "incrementalism.” Wikipedia describes the concept as “a method of working by adding to a project using many small (often unplanned) changes instead of a few (extensively planned) large jumps.” A similar example would be making subtle improvements to a service, program, or company—while the world goes on changing around us—or by us.

In Good To Great, the first chapter of Jim Collins’ unequaled business book is titled “Good Is The Enemy of Great.” Why fiddle with it if it’s not broke—right?

Wrong! “Incrementalism” can be the death of innovation, and at the very least—slow down innovation to the point of insignificance. And when businesses take a string of very small, for the most part insignificant steps unto themselves—and slowly marches along—the business itself can be left vulnerable to a competitor, supplier, or and entire industry “leap-frogging” over the top of them and leaving them behind.

For instance, in the building products wholesale distribution industry, I often suggest that "rule changing" behavior is needed that leaps ahead in huge bounds. Instead of an exclusive focus on slight improvements—such as order fill rates, accuracy, and customer services—distributors should be evaluating “reinventing” what they offer and what it is they do.

They might instead consider offering private labeling, job site delivery, job site installation and repair, and special warranty considerations that guarantee replacement value no matter what.

Now THOSE are the type of offerings that just might be considered leap-frogging.

And keep a company out of the pot of boiling water.

Breaching The Threshold of Change

Key Ideas:

1. Building products distribution can continue to evolve and prosper--if it will find its new role in the channel.
2. Distribution must be ready to extend itself either up or down the supply chain (offer more services to dealers and end-users, or source/manufacture products themselves).
3. Distribution need not sell around their customers, but rather provide a tier of "fee" services as a helpful function to satisfy end-user needs together with distribution's customers.
4. Distribution cannot stand still.

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Everyone seems to talk or write about the need for change in the wholesale building products distribution industry. Including me. However, too few of us ARE the change we need to see.

As a nearly 20-year veteran of this industry and former member of the board of directors for the Association of Millwork Distributors (AMD), I’ve been reminded many times of the famous Hans Christian Anderson fable The Emperor’s New Suit. You recall the one, in which the little boy, upon seeing the Emperor with nothing on at all—cried out “Why—the Emperor has on no clothes!”

Well, the problems facing the distribution industry (see Adam Fein's article at "Distribution Trends) are as clear as an elephant sitting in the middle of the room--or an Emperor wearing no clothes. But not enough people stand up to do anything about it.

As manufacturers develop their capabilities to perform the functions of distribution and dealers consolidate and become larger—and command closer relationships with the manufacturers—it leaves the “middleman” in a precarious position.

How does distribution go about expanding their role in the supply chain, without alienating customers by going around them, and at the same time strengthen the value and necessity for their services to exist?

The answer’s going to vary for different products, geographies, participants, and customer needs. But as a start, company strategic plans must include an examination of and implementation plan for:

1) Services down line (see "The Future of Distribution")—such as assembly, jobsite delivery, installation, and field service (not in place of the retailer or pro-supplier, but as a service for the retailer or pro-supplier).

2) Unique sourcing relationships or programs, such as directly importing products or entering into the manufacturing businesses themselves.

3) A high emphasis on taking costs out of the channel while improving accuracy, dependability, fill rates, inventory management programs, and overall benefit for customers and end-users.

4) An intense discussion with the distributor’s manufactures to create a mutual plan that achieves the goals for both.

5) Laser-focus on securing product purchase choices from the decision-maker (no—not the buyer behind the lumberyard desk, but the architect, contractor, or builder in the field). And then execute a plan to help the lumberyard secure the sale.

6) An unwavering focus on continuously improving the customer experience. Starbucks doesn’t sell coffee—they sell a unique personal experience (Starbucks' mission statement).

I am encouraged at the recent wisdom, strength, and conviction displayed by the AMD and several companies in our industry. Perhaps we are “getting it” and willing to tackle the next wave of opportunity before us.

It’s often unpopular to be first to do something new. However, everything of significance that ever happens does so when a few people—or even a single person—charts out the new direction and takes the first steps.

If anyone ever doubts the importance that one decision can make, look no further than the decision made in 1863 during the Battle of Gettysburg. Major General Joshua L. Chamberlain—who was leading his Union Army troops at Little Round Top—had repeatedly defended attack after attack by the Confederates during one critical battle. Exhausted and nearly out of ammunition, many other men would have given up. But Chamberlain made the determined decision to CHARGE—with a fraction of his men and with only bayonets—and to persevere. The result was that the Union Army drove back the Confederates and won the battle.

Historians recount that this is the one decisive battle victory that allowed the Union to win the war, bring the conflict to an end, and change the course of history.

One decision that any of us makes can have a tremendous outcome.

I encourage the leadership in this industry to build on the ideas and momentum that have recently sprung forth, and change the heading we were on—and forever increase the benefits and vitality to our customers, our suppliers, and ourselves. And to do so this year.

My greatest disappointment would be if these outstanding initial steps and beliefs failed to find enough voices and actions to help propel the industry in a bold new direction.

And prove the critics wrong.