Monthly Archives: June 2011

Goldilocks and the Three Bears: A Metaphor for Collaboration?

After reading a recent post over on the HBR blogs on “getting collaboration right”, I can’t help but think that the author was thinking of the children’s story about Goldliocks and the Three Bears when trying to define the proper way to approach collaboration. In the story, Goldilocks was walking in the forest when she came upon a house with no one home. She walks in and finds three bowls of porridge on the table. She was hungry, so she tasted the first bowl and found the porridge too hot. So she tasted from the second bowl, but found the porridge too cold. So she tasted from the third bowl, found the porridge just right, and ate it all up.

Then she was tired so she entered the living room and found three chairs. She sat in the first chair, but found it too big. So she sat in the second chair but found it too big as well. So she sat in the third chair and while it was just the right size, it broke into pieces when she sat down. Now very tired, she wanders up the stairs to find a bed for nap. She lay down in the first bed, but it was too hard. So she lay in the second bed, but it was too soft. Finally she lays in the third bed, and it is just right, so she falls asleep.

Then the owners, three bears, who went out for a walk to let their porridge cool, return. They find that someone has been eating their porridge and sitting in their chairs. So they look around and go to the bedroom, where they find that someone has been sleeping in their beds and still is. Just then, Goldilocks wakes up, sees three bears, screams “Help!” and runs from the room, down the stairs, through the door, and into the forest, never to return.

Which is how most collaboration efforts go. First the participants, wary of each other and the proclaimed benefits of collaboration, under-collaborate (because the porridge is cold). Then, when a C-Suite executive puts his or her weight behind it, and everyone gets on board, they over-collaborate (because the porridge is hot). Neither produces results, and eventually collaboration is accepted as something that needs to be done regularly, but not all the time, and the participants start to balance between too little and too much (and the porridge is just right).

However, since the participants are not very good at collaboration, they get weary, so they decide they need to find a framework to manage the process. Everyone pitches in and they start by selecting something that is so overarching and overdefined that they never get beyond the process itself (because the chair is too big) and get nowhere for a while. They eventually agree that the process (which fills binders) is too much and ‘streamline’ it to key steps and tasks, but the process still takes up most of their time and collaboration results are few and far between (because the chair is still too big). Eventually, the team decides to lean the process, and strip out everything but a few key steps, but since the process was built by stripping down an ill-conceived process, it turns out to be too brittle and breaks (because the chair is now too small to support the weight).

Even wearier, the team finally realizes that it’s not the process that is important, but the desired results, and start to define goals for the process and accountability. Thinking they finally have it right, they get ambitious with goals, but since the team is still new at results-driven collaboration, they get overwhelmed (because the bed is too hard) and don’t meet their goals. So they tone down their initial expectations, and deliver results, but don’t get the kudos they were expecting (because the bed is now too soft) and work their way towards a delicate balance between over-collaborating and under-collaborating and setting goals that are too ambitious and goals that are not. Finally, they realize the importance of accountability and insure that, in the case of no agreement (in a timely fashion), someone has the authority to make a decision, settle into a groove and get comfortable (because the bed is just right).

But then they get some unexpected negative feedback, because an executive complains about the lack of quick results or a key design element that would have doubled the potential market size was overlooked because everyone was new at the process, get spooked, and run away screaming (because they woke up and saw that they may still have to confront bears), never to return to collaboration again.

Which is a shame because, if they could get collaboration right and maintain it over time, they’d see significant results.

Five Long Years

Well I know you
Like your RSS feed
And you’re readin’ these posts each day
And they have grown on you

Well don’t worry
I don’t intend to make things strange
And there’s a reason that things change
There’s nothin’ you can do

And it’s been five long years
Since you’ve seen with weary eyes
Your mind has grown
And sees right through the market lies
the doctor still loves you
you know that’ll never change
Yes it’s been five long years
and now SI must feed the flame

When you read this
do you remember the days when
the wire was void of useful content;
the blog was new, time was on your side
you learned
from the knowledge
and you adhered to the lessons within
a light on the truth
when the space was dark, yeah

And it’s been five long years
Since you’ve seen with weary eyes
Your mind has grown
And sees right through the market lies
the doctor still loves you
you know that’ll never change
Yes it’s been five long years
and now SI must feed the flame

Oh, yeah
Five long years
Five long years

Five long years
Since you’ve seen with weary eyes
Your mind has grown
And sees right through the market lies

  and sees right through the market lies

the doctor still loves you
you know that’ll never change
Yes it’s been five long years
and now SI must feed the flame
Yes it’s been five long years
and now SI must feed the flame
Yes it’s been five long years
but now he must feed the flame

Oh yeah
Five long years
Five long years

The Impact of Culture on Transnational Interactions

The newly relaunched Negotiator Magazine has a great article by Charles Craver on “the impact of culture on transnational interactions” that is a great read for anyone looking to improve their CQ (Cultural Quotient). It’s a great companion article to SI’s 2009 series on Overcoming Cultural Differences in International Trade and SI’s 2010 series on Cultural Intelligence (which were both edited by SI’s resident expert on Global Trade, Dick Locke).

In SI’s classic series on overcoming cultural differences, we introduced you to Dick Locke’s eight key factors that govern the differences between your culture and that of your potential business partner (supplier, service provider, customer, etc.), which were:

    • power distance
    • uncertainty avoidance
    • individualism
    • polychronic vs monochronic time
    • personal/impersonal
    • buyer/seller rank
    • importance of harmony
    • importance of face

Charles reviews the common cultural differences of time (and punctuality), personal/impersonal (including the exchange of gifts), the importance of face and harmony, and individualism (and the difference between the approaches taken to negotiations by individualistic cultures and group cultures) as well as the importance of distance (as some cultures will need at least two feet, while others will want to be in your face), respect (including the exchange of business cards in some cultures), social events and cultural exchange (and the need for some cultures to build a rapport through bonding activitis before beginning negotiations), and wealth (and the need for the wealthier party to bring quick benefits to the poorer party) and provides some unique insights that not all Global Sourcing professionals are aware of.

In addition to explaining some key cultural differences that newly minted global supply management professionals may not be aware of, such as:

  • how it is unusual for people in Latin American or Middle Eastern countries to show up on time (as delays of thirty or forty minutes are acceptable)
  • how people from Middle Eastern countries want to be less than one foot away from you when they talk
  • how people from cultures that place great importance on saving face find displays of power to be crude and inappropriate and will hesitiate to initiate law suits or break off negotiations

the article makes a point of noting that a negotiator who speaks the language isn’t enough. The organization needs someone who also understands the culture and the nuances of the language. For example, when the Japanese say that “it would be difficult”, they are really saying they can’t do it. Since they can’t say no and save face, which is important in their culture, they have to convince you that what you are asking is difficult and hope that you will ask for something else instead.

The article also makes a great point of emphasizing the Preliminary Stage where the participants first work to establish a rapport with each other. In this stage, the participants should engage in non-controversial small talk to get to know each other and take advantage of any opportunities presented by the host to explore the city, history, and culture of the country they are visiting. This helps to dispel negative preconceptions and stereotypes on both sides of the table and increases the chances of a mutually beneficial relationship.

Don’t Overlook the Soft Cost Savings from SOW Management

A recent article in the SIG Newsletter on the “best practices for managing and analyzing statement of work spend” that described the rapidly maturing market for centralized SOW (Statement of Work) management programs and the usefulness of a modern VMS (Vendor Management System) also described the one-time and continous benefits of managed SOW programs (under the guidance of a PMO – Program Management Office) and the hard and soft cost savings that resulted. While many organizations move to managed SOW programs, often through a MSP (Managed Services Provider), in pursuit of the hard dollar cost savings, that are often in the 10% to 15% range when done properly, the long term soft cost savings will often be more valuable.

In particular, the following benefits are invaluable to an average organization:

  • single point of contact for contingent labor needs
    no need to contact, and manage, multiple providers to fill different labor needs
  • reduced cycle times
    one call and the PMO or MSP uses a process already in place to locate and onboard your contingent labor
  • standardized criteria
    every department uses the same definition, and the company pays one rate for one type of resource
  • increased visibility
    one report shows the total spend on contingent / managed labour by type, department, provider, etc.
  • compliance firewall for classification, tax, and labor law issues
    which significantly decreases the risk of a massive fine when the same contingent workers are repeatedly rehired (and the government decides they are now employees and you owe more taxes and benefits)
  • standardized performance metrics
    and managed suppliers who know what is expected of them
  • better labor needs forecasting
    from complete and accurate contingent workforce data
  • payment management
    no interest from late payments, no overpayments, and, most importantly, no double payments

All of these benefits reduce complexity, increase reliability, and reduce risk — which keeps costs down in the long run as complexity, risk, and uncertainty only serve to drive up cost.

Is Your CPO the Next CEO Candidate?

Supply and Demand Chain Executive recently ran an interesting article on “forging a dynamic, enduring and energetic supply chain: developing supply chain-rooted CEOs” that outlined 5 attributes of great CEOs, 10 questions to ask about the organization, 10 reasons to invest in internal leadership talent, and 10 areas to develop great leadership skills.

According to the authors, the following 10 areas are key developmental areas for leadership and, thus, critical for the CPO to master if she is to become the company’s next CEO.

  1. Business Acumen
    The CPO must understand the fundamentals of how money is made within the company and industry, the needs and wants of cusotmers and stakeholders, and the competitive and market dynamics that drive change and opportunity.
  2. Work Ethic
    The CPO must put the time in to prepare herself for the next step and stand out.
  3. Networking Skills
    The CPO must build a network of supporters and influencers, give more than she gets, stay connected, and build internal and external advocacy.
  4. Results Oriented
    The CPO must earn her stripes by consistently delivering results that drive the respect and recognition of others.
  5. Permeability
    The CPO must have the ability to collect and synthesize multi-directional data across critical domains and be willing to constantly share knowledge.
  6. People Skills
    The CPO must be able to get the most out of people.
  7. Decision Making
    The CPO must be cool under fire and be able to make critical and controversial decisions when required.
  8. Lateral Development
    The CPO must be open to lateral moves which are stepping stones on the path to the CEO spot, such as CFO or COO.
  9. Continuous Learning
    The CPO must be willing to learn continuously and demonstrate such willingness.
  10. Legacy Building
    The CPO must have built a Supply Management organization that is capable of standing on its own and shining if the CPO moves on.

SI has to agree. A CPO will need to have all of these skills and qualities to take on the CEO role. But is it enough to get her the job? As Bob continually points out, a CPO must speak the language of the CFO. It’s more than just business acumen, it’s talking like you belong in the role. And while work ethic is highly regarded, it’s results that count. If the CPO is constantly putting in 80 hour weeks but not meeting her goals, she will look ill-fit, or slow. And while Networking and People skills are well regarded, the decision ultimately comes down to a small board of directors — if they do not think she’s the right candidate, it doesn’t matter how much internal support she has. And while permeability is admired, it’s seen as tactical as the organization can always hire an analyst to synthesize the data. It’s the ability to make good decisions based on the data and information available that is admired most. And it’s not always the legacy the CPO has built, but the legacy the board thinks the CPO could build as a CEO that ultimately influences the final decisions.

It’s a tough call to say which skill set is the right skill set and what is required to get the CPO into the top spot. Are there any other viewpoints out there that could shed some more light on the subject?