"Open Source" as a Way Fix Toyota's Problems
10 February 2010
An article was published today
suggesting that Toyota should use the Open Source model to fix their software problems.
Here's my reply.
Open Source is all too often seen as the silver bullet to fix a software problem. In some cases, as with Apache, the
Open Source model has worked quite well. And in Apple's OSX, the BSD kernel has proven to be stable and bug free.
However, I don't believe that Open Source is the right solution for this problem.
More ...
Silent Brainstorming
05 February 2010
Silent Brainstorming is a great technique to get teams to start thinking creatively and break out of the box to solve problems and generate a plethora of new ideas. I first learned this system while on a project at SRI, and have since used it with great success at several companies. The system not only get's people thinking and documenting their thoughts and ideas, it's independent of time. When you're dealing with a large group of people, developing a matching Venn diagram of everyone's available time is about as successful as predicting the outcome of the Super Bowl.
Unlike audible brainstorming, everyone can think and act at the same time. So, the sessions can be done quickly, say 15 minutes or less. More ...
Warning Signs of a Troubled Company
26 January 2010
Came across this article on the http://strategiccfo.com/ website and was reminded of warning signs from past clients. The article is a good read, both for analyzing a client's current condition in a turnaround effort and for managing an ongoing concern where you want to stay ahead of any problems. Here are a few noteworthy items with my comments from their checklist of early warning signs:
- Cash shortfall: This is an obvious warning sign. However many companies evolving out of a start up believe this to be status quo. They successfully conquered the cash problems while building their business, so they should be able to do it again. Analysis of comparable industries & sizes can help clarify this issue. Ibbotson to the rescue!
- Physical deterioration of equipment or facilities: Maintenance of equipment is often ignored and goes unnoticed because it doesn't show up on the income statement until it is way too late. The simple fact is that a dollar invested in R&M pays back ten fold over the useful life of the equipment or facility. One of our clients instituted a very stringent maintenance program on his fleet of route vehicles that effectively extended the life of each $150K+ truck by several years. Conversely, managers who ignore this high yielding, albeit internal investment are usually making poor investment decisions in other areas of their business as well.
- Poor Accounting Systems: The management adage of "you can manage only what you can measure" applies to operational metrics and accounting systems. We have helped many clients evolve their existing systems into productive management tools by restructuring their general ledger accounts and reporting processes.
Strategic Planning Mnemonic
10 January 2010
Great concepts boiled down to their simplest form.
Every so often something learned in b-school should either be tattooed on the back of your hand or put into the more permanent regions of one's gray matter. I'm referring to the strategic mnemonic of:
STP
CCC
PPPP
I'm continually awed when a client comes to me with a great new business concept or product idea. Their initial reaction is to focus on the stuff on the "P" line. Of course, it's the stuff that is the most tangible. Product - "hey, it looks like this, has these killer features, plus we can undercut the competition by 10 bucks!" The good news is that there is some outward looking perspective in the excitement. But what about the foundational elements that make sure that the product or service has a chance to succeed in the real world?
The bottom line is that every business plan needs to start at the top of the mnemonic and work its way down to the "P" line. More ...
Leadership & Direction
08 January 2010
Buying a company: 100 Day Plan - 1 year goals & beyond
So, I'm talking to a guy about the company he is getting ready to buy. I asked him if he had prepared for the first week at work. He said, "sure". He was going to meet with as many people that work at the company as possible. First he would meet with the managers and then the staff. I said, "Great! What are you going to tell them?" But, he didn't really know the answer. He said he just wanted to meet them. He explained that he didn't really want to change anything about the company. He wasn't going to walk in with a bunch of changes. He wanted them to know that they all had jobs. I asked if he had created plans and set goals. But, he reiterated that he wasn't making changes. The staff was going to keep doing what they were doing.
Hmmm, he left me thinking. In all the due diligence that he did prior to buying the company, didn't he know the strengths and weaknesses of the company? Did he know need to be focusing on. More ...