I drew a big pyramid on the board, with him at the top, below him 8 VPs, and at the bottom 10,000 employees. I asked – how can you guarantee they'll efficiently produce quality products, if they aren’t engaged or invested in company goals?
Dividing the product to its two parts, which traditionally would have been one whole (the frame and the temples), and the possibility to create different and varied pairings, created something different. Unlike the usual product. This was a case of very interesting innovation. It enabled the company, for instance, to offer clients a vast number of choices for a relatively low cost. At the same time, this new method gave clients a feeling of independence and customization. Creating "a personal look".
The subtraction used by Itamar isn’t only of a key or other accessory whose role in opening the door is eliminated. The essence is simple and smart management of the right to open the lock and enter a home, club, center, pool, etc. Instead of the subtracted key, the system utilizes an accessory most of us already have: a smartphone. I believe anyone managing a community center or using one often appreciates Nemlock's use.
Nestle is a world leader in constant improvement and striving for excellence. And the Sderot site, with approximately 650 employees, is without a doubt one of their leading sites in all aspects. Nestlé's motto, which you'll find displayed at each one of their sites and to which everybody strives, is "0 waste, 1 team, 100% employee involvement".
Facit is a famous example, but there were others. A recent example from Israel comes from the world of cellular parking services. I heard it from Ro'ee Elbaz, Pango's CEO ever since it was a small startup of four employees. In 2007 a tender for cellular paying services for parking was published by the center for local government.
A few weeks ago I met with Rona, a brilliant entrepreneur, and we discussed setting up her business. Towards the end of our meeting I suggested that, alongside starting her business, she could also take over her accounts management. "Why?" she asked amazed. "That way you'll have better control of your expenses", I answered and added, "It's very simple, and will save you money too. When you have a small business it's important. "
The local market is growing more competitive and diminishing, customs defenses are disappearing and imports make sales harder. Both Gad and Shim'on have turned to exports. They don't only compete with each other, but with the global market.
As kids we played the game Telephone. We sat in a line, the first kid whispered something in the ear of the second, who whispered what they heard in the ear of the third, and so on until the last in line. Of course there was a considerable difference between what was originally whispered and what the last kid heard. That's how it is. There's a gap between what we thought and what we said, and an even greater one between what we said and what was heard and understood.
American companies reward participants based on how much money was saved for the company as a result of their proposal. The rewards average 458 USD. Comparatively, Japanese rewards average 3.88 USD (less than a hundredth of American rewards).
I used to manage an organization with several hundred employees, under a collective agreement. The premium paid to employees who exceeded production goal was set in the collective agreement, old an anachronistic. It wasn’t a real encouragement and it didn’t contribute to motivation, and didn’t change employees' way of doing their work.
Israel added that Tomer was unwilling to teach other employees to operate "his" machine. It was clear that Israel postponed meeting Tomer as much as he could that morning, and once we finally got to him they communicated poorly. I couldn't understand what Tomer was saying and I'm not sure Israel clearly understood him either.
Our event focused on changing the production department and increasing efficiency. The team led a radical change in the department, including opening a wall which separated the two parts of the production space. On the third day, Osnat, one of the team members, burst into tears and couldn’t continue. She went home and returned to work only after a week of sick-leave.
I write a lot about getting employees invested, about efficiency, improved service, measuring indicators, and precision work with employees and clients. But if, at the same time, you have to lower prices in order to preserve clients in a competitive market, and to supply custom products to every client – you might find yourselves running fast in order to stand still. There's a danger that increased profit as a result of improvements in production will disappear compared to competition in the market, and at best you'll maintain low profit margins.
In it they could see how, at the end of the work day on Thursday, at three in the afternoon, the door to one of the departments was left open. Actually, it wasn’t a door, but a wide gate, made of two metal doors. Its width is about three meters, its height about four meters.
The CEO is in charge as far the law, the share-holders or the board of directors are concerned (meaning he's the one accountable). So he must ensure the company reaches its goals and targets, first and foremost profit and resiliency. Of course the CEO's instinct is, then, to be involved in everything, and try and personally lead all processes in the company.
About a year ago I started working with a medium-sized company, about 200 employees, and a shift-supervisor listed as CEO a consultant who would come to the site once a week. I asked what job the actual CEO did, and he said he had no idea.
Recommended frequency for discussion of indicators: I recommend all indicators' results be discussed by management once a month. At least once a week, they should be discussed in dedicated improvement teams with the relevant manager (operations, sales, finance, marketing, etc.) or their representative. Some indicators should be shortly analyzed daily, as needed.
Often excitement is so overwhelming that companied start developing a new business without first examining risks and chance of success. Sometimes, we look at a business close to ours, competitors are profiting in it, and we decided to enter it and join the big players. We jump into the water, and discover too late we jumped into a red ocean.
Around the end of every year I get questions about creating a work-plan for the upcoming year. First, I'd like to point out that the very end of the year is too late to start working on a yearly-plan for the next year. Additionally, it is better to base yearly plans on a larger, multi-year plan.
Dead inventory is accumulated by many companies. Most often it will consist of mistakenly-ordered raw materials, or excess materials which "were on sale", or that have become redundant due to product changes. Doesn’t It Make More Sense to Get Rid of Dead Stock?
When Nestle delved into daily performance in Osem (at the time I managed a large profit center), they showed us, for the first time, the need to measure how many unites were counted in inventory checks in the field, compared to data in the company's digital records.
This is the last chapter from my new book: Manage! Best Value Practices for Effective Management. the full book is can be purchesed on Amazon. The purpose of this book is to provide a fresh look on how you can improve business results by making your company matter to your employees.
We often used the term motivation, but do we always mean the same thing? Last week I gave a talk in two classes in the School of Economics & Business Administration at the Ruppin Academic Center, as part of Dr. Adi Loria ("Select Issues in Management MBA"). The topic was "The Relationship between Management Methods and Employee Motivation".
What did it feel like, the last time you were complimented? For a nice outfit, doing well in school or on a successfully completed project? How did you feel posting about your kid's or grandkid's high grades on Facebook, or WhatsApp, and got dozens of likes?
I am sometimes asked if I provide organizational consultation regarding management conflicts, and I answer that usually the source of the problem lies in the missing parameters in the allocation of authority, within management, and from there, the situation spreads to the entire organization.
Ron works in a senior position at a major company and was in charge of arranging a very important tour with the Minister of Commerce at one of the projects managed by the company. The visit was important to the company, but to Ron it was even more significant. He viewed the success of the visit as a personal test and an opportunity to position himself better in the eyes of the company CEO.
In a course I gave to a certain company, some employees mentioned the "lean production" the company was implementing at one of its divisions. Nathan, who works at that division, stated that "actually, all this lean stuff has one hidden agenda. It's directed towards moving maintenance over to the operators, loading them with more tasks than they are already loaded with".
In the past, when I managed a company that manufactured and supplied office furniture to institutions, I began my term by visiting the delivery area to find out how deliveries are handled. To my surprise, I discovered that there was no follow up on packing lists and that the drivers didn't always turn them in.
Just keep one spare tube in the drawer. When the current one is finished, take out the new one, take it out of its box, but don't throw the box away. Place the empty box in the same place as your shopping list, as a reminder of what you need to buy. By the time you use up the present tube of toothpaste, you will have bought a new tube on a routine shopping trip at the drug store or supermarket.
One employee interviewed said that she loved working there. People were nice and she enjoyed working with them. I showed this same employee a photo of the sign over the door and asked her if she recognized it.