Thursday, February 5, 2009

Dont Just Walk the Talk - Learn to Live the Talk

Author's note: The following discussion may not be complete and may include some inconsistencies. It will be reviewed, expanded on and "flushed out' over the next several days. 5 Feb 2009 -- 15:06

Reference: slide package - may be downloaded & viewed separately

I continue to be amassed at the number of management "how to" books, videos, DVDs, etc. that are sold; but, the theory published in the content seems to be still inside after the new owner has placed it down.

Why is it, that people - good and smart people - don't appear to be learning more about this theory and all the historical results that have been around for years?
Some people now say that we must "Walk the Talk"; but, my observation is that the talk... is only talk... and nothing appears to be improving.

I believe that the world's leaders, managers and individual workers have to start first with themselves. They need to internalize all this theory and make a commitment to personally perform an honest days work for a reasonable days pay. Eliminate the greed that is killing us.

In so doing, day by day, they will begin to Learn to Live the Talk and through their interactions with others both up and down the chain of command they will make a difference. Its kind of like a recipe for making cookies - there is a personal recipe for success.

To succeed in today's world, what we do must be both Green (environmental friendly) and cost improving to our business.
Purchasing however, must resist their buying habits of accepting and desiring initial lowest bid cost. Rather, we need to think a little longer term and make our buying decisions based on a more Total Cost of Ownership basis.
The theoretical costs are the summation of the various tasks that need to e accomplished, times the time it takes to perform these tasks, time the cost per unit of time to pay for the effort.
But, I suggest that this is NOT the true Total Cost of Ownership.
The Total Cost of Ownership must include the more hidden costs associated with the following three categories:
1. REWORK COSTS - If there were not good techniques and procedures used in the effort and/or if the workers were not properly trained, then you will have the opportunity to rework and do some or all of the work over again at a later date.
2. WASTED TASKS - If the required materials, supplies and labor were not at the correct place on time, then all sorts of additional costs may be incurred. Good planning is one of the most important aspects of keeping total costs low.
3. CHANGES in MIND - If expectations for the end result of the effort were not clearly and measurably communicated to all parties associated with performing the work, then there is a high potential that the completed work will not meet the expectations of the requester. Good clear communication techniques and easy to understand, measurable expectations are also most important in successful low cost results.
Some studies have found that these three types of hidden costs may account for 25% or more of the Total Cost of Ownership over the life of the effort.

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