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Archive for the ‘Human Resources Management’ Category


Michael Eugene Porter is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School. Michael Porter coined the term ‘Value Chain’ was first used in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (1985). The value chain is a process of translating organisational activities and its performances to gain a competitive position in the market place.
In any process, we find Core activities and Support activities that collectively deliver performance outcomes in the form of margins. Here margin refers to the profits earned for a product or service through sales revenue which is more than the sum of the cost of all activities in the value chain. Porter’s basic model as shown below identifies direct and indirect activities in any organisation which drives margins.

Porter’s value chain emphasizes on the process of how inputs change the outputs purchased by consumers which delivers competitive advantage and targeted margins of the organisation.

Core Activities (Primary Activities)
The core activities relate directly to the manufacturing, service, sale, maintenance and support of a product or service. And they consist
o Inbound logistics
o Operations
o Outbound logistics
o Marketing and Sales
o Service

Support Activities
These activities support the core functions identified above. In the above diagram. For example, procurement supports operations with certain activities, but it also supports marketing and sales with other activities.

• Procurement (purchasing)
• Human resource management
• Technology
• Infrastructure

My Perspective

In my opinion, the fundamental difference between supply chain and value chain is the element of “margin” part of Porter’s value chain. Supply Chin never deals with margins, it deals with SMART Goals, KPIs, deliverables – Quantitative and qualitative. The supply chain cannot assure margins which largely depends upon sales and sales is outside the purview of supply chain and whereas Porter’s value chain the core activities include Marketing and sales which could drive improved margins with other elements such as inbound logistics, Operations and Service supporting the improved margins.

My concept of the value chain bit different from Porter’s version. I firmly believe that People, Process and Technology is the support functions and the core functions are Supply Chain, Operations, Marketing and Sales and I firmly believe that customer service is part of Marketing and sales. If we integrate these functions and work towards organisational goal effectively we can achieve targeted margins. I am not critical about Porter’s view, but I am presenting my views as a Supply Chain professional.
Today’s world is collaborative in nature. No function is superior and no function can attain organisational goals independently. It’s a team approach. In my theory, people, process and technology enable supply chain, operations and marketing and sales to achieve competitive advantage in the market place. One more point is that the communication channel between support functions and core functions is two-way. Listen, Respond and React is the communication strategy for achieving targeted goals.

“Synergy – the bonus that is achieved when things work together harmoniously.” – Mark Twain

My value chain model:

I appreciate your views and comments.

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Leader vs. Leadership

A leader’s job is not to work for others, it’s to help others figure out how to do it themselves and successful, to succeed beyond what they thought possible. A leader is at his best when people barely know he exists when the work is done, and the objective is fulfilled, they will say: “we did it”. When “I” is replaced with “we”, the leader’s presence is sensed.

“Leaders become great, not because of their power, but because of their ability to empower others”

Leadership is something you earn, something you’re chosen for. Leadership is all about doing the right things, millions saw the apple fall, but Newton was the one who asked why. Ultimately, leadership is not about glorious crowning acts. It’s about keeping the team focused on a goal and motivated and achieve it, especially in dynamic and challenging conditions. It is about laying the groundwork for others’ success, and then standing back and letting them shine.

The difference is that leaders embody leadership mindsets and actions. It’s who you are as a person that makes you a leader. Managing leadership actions or merely holding a leadership position does not make you an individual a leader.

To develop a vision for the organisation is leadership. To be visionary is to be a leader.
To drive people towards organisational goals is leadership. To be influential is to be a leader.
To coach others, the right things are the leadership. To model how to determine the right things is to be a leader.
To recognize opportunities is to be leadership. To solve problems is leadership.
To be wise decision-making is to be leadership. To make decisions is the leader’s job.

Some interesting quotes on leadership.

1. A leader is best when people barely know he exists when his work is done, his aim fulfilled, they will say: we did it ourselves. —Lao Tzu

2. Where there is no vision, the people perish. —Proverbs 29:18

3. I must follow the people. Am I not their leader? —Benjamin Disraeli

4. You manage things; you lead people. —Rear Admiral Grace Murray Hopper

5. The first responsibility of a leader is to define reality. The last is to say thank you. In between, the leader is a servant. —Max DePree

6. Leadership is the capacity to translate vision into reality. —Warren Bennis

7. Lead me, follow me, or get out of my way. — General George Patton

8. Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others. —Jack Welch

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We hear this phrase “Change Management” as frequently as “Excuse me”, one has to be really excused because change management has become a fad, far from reality. Change Management is a process and a journey towards desired future state from current ineffective state. This could involve mostly people, but other elements that go through a change and they could include Business Processes, Technology, Business Activities etc.

When leaders or managers are planning to manage change, there are five key principles that need to be kept in mind:
Principle1- Different People React Differently To Change
Principle2- Everyone Has Fundamental Needs That Have To Be Met
Principle3- Change Often Involves A Loss, And People Go Through The “Loss Curve“
Principle4- Expectations Need To Be Managed Realistically
Principle5- Fears Have To Be Dealt With

Miracles do not happen, we the people and transformational leaders make it happen. Change management should be as simple as changing your attire. However, it is complicated because it deals with human behaviour and the change draws people out of their comfort zone and creates anxiety stemming out of fear of failure.

In my opinion, change management is not a business process but mindset management process. As soon as people feel comfortable with what is called as change will embrace it without any mental blocks.

It is not as simple as said and done. What it takes it to make it simple and easy to achieve? Few interesting dynamics pop-ups in my mind and they are emotional intelligence, listening skills, communication skills, ability to walk the talk. One could question that listening is part of communication skills. Technically no, practically yes. The technical definition of communication is “the imparting or exchanging of information by speaking, writing, or using some other medium”. As you can notice, listening is not part of communication. When you are unable to listen to other’s perspective, how can you exchange information effectively? Listen and Silent are spelt with same letters. Think about it. Practically, listening is part of communication because when the exchange of information is considered as an interactive process, one cannot exchange information effectively unless one understands other party’s thought process. See what happened to the patient (below graphic) on the operation table.

“We have two ears and one mouth, so we should listen more than we say.” Zeno of Citium

The idiom emotional intelligence is becoming more popular recently. But what is it? “the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically.” If we dissect the definition, the critical words are aware, control, express and handle are the keywords of emotional intelligence. Be aware of the other person’s emotional state, control your emotions, express without hurting other’s emotions, and handle emotional conflict effectively. And finally, show empathy and focus on the issue and not the person.

“As more and more artificial intelligence is entering into the world, more and more emotional intelligence must enter into leadership.” – Amit Ray

In the change management mode, the leaders and the change managers talk a lot to convince people about the change and that is ‘talk the talk’. However, to make the change successful, it is absolutely necessary to ‘Walk the talk’. This means actions speak louder than words. Words are critical as all the people involved in the change process may not have very good comprehending abilities. Hence, it is absolutely necessary to convey the change in as many ways as possible. It could be a good idea to display posters about the change with motivational quotes such as, “Be the change that you wish to see in the world.”; “Everyone thinks of changing the world, but no one thinks of changing himself.”; “The world as we have created it is a process of our thinking. It cannot be changed without changing our thinking.”; “Yesterday I was clever, so I wanted to change the world. Today I am wise, so I am changing myself.”; “He who rejects change is the architect of decay”; “We can do it together”; “We can do it!”.

In this article, I have put the cart in front of the horse. I should have discussed the barriers to the change management before addressing those challenges. I have worked for a CEO who wanted the solution first and the problem next. I have followed his philosophy in articulating about the change management. Now let us look at the barriers.

“The only walls that exist are those you have placed in your mind. And whatever obstacles you conceive, exist only because you have forgotten what you have already achieved.” Suzy Kassem

In my opinion, there are no barriers to change, they are virtual barriers, let us examine them. The first one is “Resistance to Change”. The resistance could be political or mind block arising out of fear of failure. And the direct resistance could be due to fear of unknown and indirect due to political reasons.

Before embarking on the change it is necessary to understand the current state (organisational cultural scan) even before thinking about the change. Some traditional organisations may not be ready for change, they are used to doing things in their own way and style. The culture, processes and systems of large organizations dwarf the complexity of a change management idea/attempt. Please remember that an architect wouldn’t renovate a building without looking at the existing blueprints. The current state of the organisation is the blueprint for the change management process.

Managing changes in any organization can be compared to repairing an aircraft when airborne. Change is always a moving target because as we travel through the change journey, expectations change, business dynamics change and outcomes also could change. Long drawn change process may have many integration points that are potential to fail.

In current globalised economy, business is dynamic and fast paced which initiates change management. External factors such as competition play a vital role. In many cases, external forces drive organizational change. Competition, external threats, technological change, market conditions and economic forces are all common drivers of change. Organizations may expedite a change in response to external threats.

Change is not compulsory and at the same time one cannot exist and grow without change. Change is inevitable.

“After all, if you do not resist the apparently inevitable, you will never know how inevitable the inevitable was.” – Terry Eagleton

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Good Better Best Dice Representing Ratings

I have come across a story, I thought it is worth sharing.  This story reminds me  John Lubbock Quotation

“What we see depends mainly on what we look for.”

I thought I should share it with all like minded people. Managing human resources is the key factor to the success of Supply Chain and Business. It is very much essential to align supply chain goals and work with clarity.  This story narrates the gap between performance and expectation.  It is necessary for the team to understand the expectation clearly and at the same time, it is necessary for the boss to explain the expectation without ambiguity in order to drive the desired results.  The gap in understanding could lead to disappointment and disaster.

This is not my story; I thank the person who wrote this wonderful story.

“A butcher watching over his shop is really surprised when he saw a dog coming inside the shop. He shoos him away. But later, the dog is back again. So, he goes over to the dog and notices he has a note in his mouth.

He takes the note and it reads “Can I have 12 sausages and a leg of lamb, please. The dog has money in his mouth, as well”. The butcher looks inside and, behold, a ten dollar note. So he takes the money and puts the sausages and lamb in a bag, placing it in the dog’s mouth. The butcher is so impressed, and since it’s about closing time, he decides to shut up shop and follow the dog. So off he goes. The dog is walking down the street when he comes to a level crossing. The dog puts down the bag, jumps up and presses the button. Then he waits patiently, bag in mouth, for the lights to turn. They do, and he walks across the road, with the butcher following him all the way. The dog then comes to a bus stop and starts looking at the timetable. The butcher is in awe at this stage. The dog checks out the times and then sits on one of the seats provided.

Along comes a bus. The dog walks around to the front, looks at the number, and goes back to his seat. Another bus comes. Again the dog goes and looks at the number, notices it’s the right bus and climbs on. The butcher, by now, open-mouthed, follows him onto the bus. The bus travels through the town and out into the suburbs, the dog looking at the scenery. Eventually, he gets up and moves to the front of the bus. He stands on 2 back paws and pushes the button to stop the bus. Then he gets off, his groceries still in his mouth. Well, dog and butcher are walking along the road, and then the dog turns into a house. He walks up the path and drops the groceries on the step. Then he walks back down the path, takes a big run, and throws himself against the door.  He goes back down the path, runs up to the door and again, it throws himself against it. There’s no answer at the house, so the dog goes back down the path, jumps up on a narrow wall, and walks along the perimeter of the garden. He gets to the window, and beats his head against it several times, walks back, jumps off, and waits at the door.

The butcher watches as a big guy opens the door, and starts abusing the dog, kicking him and punching him, and swearing at him. The butcher runs up and stops the guy. “What in heaven’s name are you doing? The dog is a genius. He could be on TV, for the life of me!” to which the guy responds:

“You call this clever? This is the second time this week that this stupid dog’s forgotten his key.”

Performance

Cartoon Source: Alamy Stock Photo

Moral of the story

You may continue to exceed onlookers’ expectations but shall always fall short of the boss’s expectations!

It’s dog’s life after all……… “


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