Archiv der Kategorie: Change management

Here you find all about change management.

After is before

Distance is a term that feels more like the distance between Earth and Sagittarius A (26,5000 light years) than the distance between Beijing and Duisburg. Via communication networks we are connected to every point on earth in almost real time. Since 1970, the number of passengers on global flights has increased more than tenfold to over 4 million per year. Today, people commute an hour to work on short-haul flights or by ICE or local transport. In other words, we are far-reaching connected across borders that once felt as inaccessible as the moon today. In such a world, political borders seem anachronistic. Viruses spread around the globe in a short period of time across frontiers. Neither vigorous slogans nor border closures prevent the common fate. And when one wave is over, another one comes. Because after is before.

A look at possible risks should blow the horn of dystopia and make us feel insecure, but rather remind us that in the future we will have to deal with such effects differently, as we can no longer afford further shutdowns.

  • Natural risks
    Global risks are rarely expected in nature and are considered to be locally manageable – in principle. The current virus crisis shows us that these critical situations do not respect borders or are limited to certain cultures. The present responses from experts and politicians are focused on short-term goals. Decisions are not based on possible collateral damage, nor do they consider their long-term effects – above all not the human lives that will be harmed additionally due to the measures.
    And what happens if next one of the mega volcanoes erupts and the global climate topples in a very short time? Or if a tsunami floods one of the world’s economic centers and the economy collapses in the aftermath? And anyone, who believes that we can protect ourselves against all eventualities should first of all be aware of the required efforts.
  • Political risks
    One of the effects of natural disasters will be political dangers. The societal systems will become unstable due to the dissatisfaction of the population. When panic already breaks out due to toilet paper the question arises, what we do, when things get really serious, when there is nothing left to eat and drink because the logistics channels that have been put in place no longer work and local suppliers can no longer compete with other countries. In an economy of scarcity, the black market emerges first and foremost, in which only the wealthy can afford the prices. In an effort to maintain control, the state will also use the current technical possibilities that we already know from China. And the political forces that want the revolution will feel strengthened by the shift to a surveillance state, which will lead to more and more terrorist attacks from left and right. However, the same applies as always: Be aware what you wish for. Over the past ten years, politicians and the electorate have prepared the ground for what is coming.
  • Technological risks
    A very sharp sword of Damocles is our information and communication infrastructure. No one has yet found the one switch to stop the worldwide web. However, there is an increasing number of malwares that attack all levels of IT. In addition, natural disasters could have corresponding effects – e.g. a solar storm or meteorite impact. The consequences of a collapse are unimaginable. Emergency generators do not help in these cases. There is nothing today that does not depend on the Internet: Waterworks, energy grids, hospitals, mobility, logistics of any kind, production of goods and food, communications, or the public authorities. A collapse of the Internet will take us back to Middle Ages. Without this nervous system, all cars, trains, pumps, elevators and so on will come to a standstill within a very short period of time. There is no way to communicate anymore – except for the runners, who walk from one place to another.
  • Economic risks
    In contrast to the above risks, the economic are easier to cope with – except for those who benefit from a flourishing economy – bankers, economic officials, investors. In the regions that have nothing to gain from the current economy not much will change the precarious existence in Africa, South America and large parts of Asia. Their supply is even more secure than in the world’s agglomerations, which can no longer be supplied. In the remaining regions, the price increases will lead to a change in consumer behavior. Currency fluctuations can be compensated by national or regional consumption. The cutbacks will regulate driving behavior and energy consumption. There are many examples from the past for dealing with shopping lines and empty shelves. Work, working hours, management styles and anybody else who wants to get rid of the bureaucratic ballast today will become naturally agile. In the end, the economy is part of the problem rather than its systemic solution – austerity measures in all areas of life, outsourcing to places with the cheapest labor and, in the absence of short-term profits, the de-economization of entire regions.

Bottom line: A virus is currently rampant, which threatens the elderly in particular. In the interest of their lives, the economy is being stopped by politicians. Everyone is looking at the stock indices and is now looking forward to rising share prices again, as if this were of benefit for employees and the self-employed. Nobody reports the damages, even to human lives, that are created by the shutdowns. The functioning part of the health care system is not the result of foresighted policy, but only possible through personal commitment and some difficult decisions of many, truly systemically important service providers in the hospitals and in everyday supply. The aftershock prepared by this control madness is unimaginable. And what has not yet been addressed at all is the question of what comes next. What do we learn from the current crisis management?

  • Solving a single problem without considering unwanted side effects threatens all. A holistic assessment of the situation is mandatory.
  • Federalist societies have reacted clumsily. Closing the borders of Germany or Europe oversees the fact that certain crises cannot be stopped by this. Not to mention European cohesion, which I hope will not be destroyed with this nationalism.
  • Politicians refer to experts in order to decide. Shouldn’t a task force of experts temporarily be given overall control?
  • The population obviously needs a strong hand to rule with prohibitions and closures, otherwise the individuals will continue unteachable as before. It remains to be seen how these extended powers will be brought back to normality.
  • In any case, a crisis leads to bad consequences and needs an evaluation and prioritization of all damages. The media and politicians should put their business model back for the moment and not creating even more insecurity in the population.

Not every country can afford the luxury of closing the shop. And we won’t be able to afford it again any time soon either. Hence: after is before.

SSS – Supplier Satisfaction Survey

Henry Ford emphasized on mastering the entire value chain. He ran a rubber plantation to ensure the raw material for the tires. In northern Michigan he operated mines and shipped the iron with his own freighters in order to produce the required steel in his own smelting plant. This gave him 100% vertical integration. Today’s car manufacturers have reduced down to twenty percent. These companies have evolved into integrators, initially assembling their products on platforms and now out of modules. OEMs (Original Equipment Manufacturer) are still in the driving seat, but with suppliers of increasing size and influence, which are gaining more and more room to act. This will foreseeably turn the balance of power upside down and the OEMs will depend on the goodwill of their suppliers. By then, at the latest, SSSs will have evolved that will find out, what the suppliers value most, in order to continue delivering to the OEM.

This reversal of the relationship between manufacturer and supplier requires a new, or at least a different interpretation of the satisfaction criteria.

  • Adequate performance
    Ever since López de Arriortúa contaminated GM’s and later VW’s cooperation with suppliers, his legacy has continued to impact in the form of one-sided advantages of the OEMs. At the latest, when supplier satisfaction in terms of the ratio between expenses and earnings regains importance, the purchasing departments will return to old values – cooperation based on partnership, win-win, and mutual support.
  • Future prospects
    The upfront services that are tailored for the customer, need good prospects for the vendor, otherwise the investment will be at the expense of the suppliers. The orientation of the deliverer towards the most promising companies ultimately forces the non-cooperative customers to take care of the external services themselves. The winners are the companies that perform their role as integrators to the satisfaction of both sides – e.g. by sharing and jointly developing long-term forecasts.
  • Smoothness
    An important factor is easy cooperation. This is disturbed by exaggerated administration in the form of complex processes and lack of provision of required data. Every manufacturer has its own requirements, a huge army of contacts and compliance rules that prevent trusting cooperation. Frictionless and simple procedures would help both sides.
  • Relationship quality
    It has been a long time since the Extended Company was proclaimed. Today, we are talking about platforms. The boundaries of the company no longer determine the relationships, but the respective task. For this reason, the employees must find ways to work in the steps of the process in harmony, trustingly and openly together with the partners – respectfully, promptly, and bindingly.
  • Image
    In the past, it was important to be a purveyor to the court. This created a reputation that influenced all other businesses. The former “courts”, today’s corporations, have lost this reputation, because they squeeze out their suppliers to the last drop in favor of their own balance sheets. In order to survive in the future with module-based approaches, it is important to regain the former image so that it is something special to work together again.

Bottom line: SSS will place the cooperation between manufacturers and suppliers on new pillars. In the long term it must be worthwhile for suppliers to work again for certain companies. The avoidance of any kind of waste through formalisms will make the difference. In the end, cooperation does not take place between companies, but between people. And there the quality of the relationship must be moved again into the foreground, without pulling the Compliance card in each step. If the suppliers get some more of the manufacturer’s image, SSS will probably be so favorable that the future is secured for everyone.

P.S.: Those who cannot or do not want to think in this direction will sooner or later have to rebuild their modules themselves.